Core Viewpoint - United-Guardian, Inc. demonstrated resilience in Q3 2024 with strong results driven by growth in key product segments and effective cost management, positioning the company for sustained growth despite challenges in its pharmaceutical operations [1] Q3 Results - The company reported a 35.7% increase in earnings per share, reaching 19 cents compared to 14 cents in the prior-year quarter [2] - Total quarterly sales remained stable at $3.06 million, unchanged from the year-ago quarter [2] Disaggregated Sales by Products - Cosmetic Ingredients segment experienced an 8% year-over-year sales growth, driven by increased orders from the largest cosmetic distributor [3] - Medical Lubricants sales decreased by 2% year-over-year due to standard fluctuations in order patterns [3] - Pharmaceutical Products sales dropped 6% from Q3 2023, impacted by supply disruptions affecting the production of Renacidin [4] Profitability Metrics - Operating income rose by 31.5% to $0.95 million from $0.72 million in the prior-year quarter [5] - Net income increased by 38% to $0.9 million from $0.6 million in the prior-year quarter, despite flat sales [5] Cost Analysis - Total costs and expenses decreased to $2.1 million from $2.3 million in the prior-year period, with significant reductions in the cost of sales [6] - Operating expenses increased to $0.6 million from $0.5 million, indicating higher spending on operational needs [7] Management View - Management expressed optimism about future sales growth as production issues surrounding Renacidin are expected to be resolved, potentially boosting revenues from pharmaceutical products [8] Conclusion - United-Guardian's Q3 2024 results reflect stable revenues, substantial earnings growth, and improved cost management, with rising cosmetic ingredient sales and anticipated recovery in pharmaceuticals indicating steady performance [9]

Financial Performance - Net sales for the three months ended September 30, 2024, were $3,060,113, a slight increase from $3,057,518 in the same period of 2023, representing a growth of 0.05%[7] - For the nine months ended September 30, 2024, net sales reached $9,705,262, up 17.2% from $8,278,141 in 2023[7] - Income from operations for the three months ended September 30, 2024, was $949,128, compared to $721,872 in 2023, reflecting a 31.5% increase[7] - Net income for the nine months ended September 30, 2024, was $2,747,151, a significant increase of 48.9% from $1,843,931 in 2023[7] - The company reported earnings per share of $0.19 for the three months ended September 30, 2024, compared to $0.14 in the same period of 2023, marking a 35.7% increase[7] - For the nine months ended September 30, 2024, net income was $2,747,151, compared to $1,843,931 in 2023, representing an increase of approximately 48.1%[7] Assets and Liabilities - Total current assets as of September 30, 2024, were $12,484,639, slightly up from $12,252,713 at the end of 2023[8] - Total assets increased to $13,254,380 as of September 30, 2024, compared to $12,922,838 at the end of 2023, indicating a growth of 2.6%[10] - Total liabilities as of September 30, 2024, were $1,875,238, up from $1,534,256 at the end of 2023, reflecting a 22.3% increase[10] - Total current liabilities rose to $1,875,238 as of September 30, 2024, up from $1,534,256 at December 31, 2023, an increase of 22.3%[10] - Retained earnings slightly decreased to $10,919,710 as of September 30, 2024, from $10,929,150 at December 31, 2023, a decline of 0.09%[10] Cash Flow and Dividends - The company declared dividends of $0.35 per share for the three months ended September 30, 2024, compared to $0.10 per share in the same period of 2023[11] - The company paid $2,756,323 in dividends in September 2024, a significant increase from $459,387 in September 2023[14] - A cash dividend of $0.25 per share was declared on January 30, 2024, totaling $1,148,468 paid to shareholders[69] - A cash dividend of $0.35 per share was declared on July 10, 2024, with total dividends paid amounting to $1,607,855[70] - A cash dividend of $0.10 per share was declared on July 12, 2023, resulting in total dividends of $459,387 paid[71] Research and Development - Research and development expenses for the nine months ended September 30, 2024, were $325,714, slightly down from $353,829 in 2023, indicating a decrease of 7.9%[7] - Research and development expenses for the three months ended September 30, 2024, were $111,072, an increase from $98,141 in 2023[7] Market and Sales - Cosmetic ingredients sales for the three months ended September 30, 2024, were $1,289,587, up 7.7% from $1,197,178 in the same period of 2023, and for the nine months, sales increased to $4,585,443 from $2,731,966, a growth of 68.3%[33] - Sales to customers outside the United States accounted for approximately 20% of total sales in Q3 2024, down from 26% in Q3 2023, while for the nine months ended September 30, 2024, this figure was 17%, compared to 24% in the same period of 2023[35] - Sales in the United States for the three months ended September 30, 2024, were $2,462,696, an increase from $2,247,677 in Q3 2023, and for the nine months, sales rose to $8,089,868 from $6,257,453, reflecting a growth of 29.2%[36] Marketable Securities - The net gains recognized during the three months ended September 30, 2024, on marketable securities were $47,223, compared to a loss of $14,357 in the same period of 2023, while for the nine months, net gains were $79,218, up from $65,823 in 2023[42] - The total fair value of marketable securities as of September 30, 2024, was $7,054,469, up from $851,318 as of December 31, 2023[46][48] - Proceeds from the sale and redemption of marketable securities for the nine months ended September 30, 2024, amounted to $1,065,000, with no realized gains or losses, compared to $5,255,145 and realized losses of $433,769 for the same period in 2023[49] Supply Chain and Operations - The company discontinued its specialty industrial products line due to low sales volume and no growth prospects as of July 1, 2023[16] - The company is focusing on developing new products using natural and environmentally friendly raw materials, which is a priority for its cosmetic customers[16] - The company has not experienced significant delays in receiving raw materials or substantial increases in shipping costs despite global supply chain instability[18] - The company has not experienced significant supply chain disruptions but is monitoring potential impacts from global instability and severe weather events[18] Allowances and Provisions - The allowance for credit losses related to accounts receivable was $19,174 as of September 30, 2024, compared to $16,672 at December 31, 2023[24] - The Company estimates an allowance of $271,916 for possible outdated material returns as of September 30, 2024, up from $247,847 on December 31, 2023[32] - The provision for federal income taxes for the three months ended September 30, 2024, was $299,492, compared to $152,350 in the same period of 2023, while for the nine months, it increased to $771,532 from $317,128[52] Miscellaneous - The company is unable to predict the future impact of the new Medicare Part D Manufacturer Discount Program on its financial condition[30] - The Company participated in government drug rebate programs, which impact sales of its pharmaceutical product Renacidin®[29] - The Company recognizes revenue when a customer obtains control of promised goods or services, in accordance with ASC Topic 606[25]

Financial Performance - For the nine-month period ended September 30, 2024, sales increased to $9,705,262 from $8,278,141 in 2023, representing a growth of approximately 17.3% [1] - Net income for the same period rose to $2,747,151 ($0.60 per share) from $1,843,931 ($0.40 per share), marking an increase of about 48.9% [1] - In the third quarter, sales remained stable at $3,060,113 compared to $3,057,518 in 2023, while net income increased from $626,756 ($0.14 per share) to $865,484 ($0.19 per share), reflecting a growth of approximately 38.1% [1][4] Sales Breakdown - Sales of cosmetic ingredients surged by 68% in the first nine months of 2024 and increased by 8% in the third quarter, primarily driven by sales to the largest cosmetic distributor [2] - Medical lubricants saw a slight decrease of 2% in the third quarter but increased by 4% for the nine-month period compared to 2023 [2] - Pharmaceutical product sales experienced a decline of 6% in the third quarter and 11% for the nine-month period, attributed to a recovery from a supply disruption affecting Renacidin® [2] Cost and Expenses - Total costs and expenses for the nine-month period were $6,614,849, up from $6,206,375 in 2023, indicating an increase of approximately 6.6% [5] - Cost of sales for the nine months was $4,526,446 compared to $4,272,043 in 2023, reflecting an increase of about 6% [4] - Operating expenses rose to $1,762,689 from $1,580,503, showing an increase of approximately 11.5% [4]

Financial Performance - Net sales for the three months ended June 30, 2024, increased to $3,390,205, a 27.9% rise from $2,650,299 in the same period of 2023[4] - Income from operations for the six months ended June 30, 2024, was $2,141,285, up 58.7% compared to $1,349,894 for the same period in 2023[4] - Net income for the three months ended June 30, 2024, was $461,094, representing a 0.5% increase from $457,593 in the same period of 2023[4] - Net income for the six months ended June 30, 2024, was $1,881,667, compared to $1,217,175 for the same period in 2023, representing a 54.4% increase[13] - Basic earnings per share for the three months ended June 30, 2024, were $0.21, compared to $0.10 for the same period in 2023, representing a 110% increase[54] Assets and Liabilities - Total current assets as of June 30, 2024, were $13,142,508, an increase from $12,252,713 as of December 31, 2023[5] - Total assets increased to $13,834,678 as of June 30, 2024, compared to $12,922,838 as of December 31, 2023[7] - The company reported a decrease in total liabilities to $1,713,009 as of June 30, 2024, from $1,534,256 at the end of 2023[8] - Total stockholders' equity increased to $12,121,669 as of June 30, 2024, compared to $11,388,582 at the end of 2023[7] Cash Flow - Net cash provided by operating activities increased to $1,968,250 for the six months ended June 30, 2024, from $852,247 in the prior year, marking a 131.3% rise[13] - Cash and cash equivalents were $8,405,371 as of June 30, 2024, compared to $8,243,122 at the end of 2023[5] - Cash and cash equivalents at the end of the period were $8,405,371, up from $6,482,907 at the end of June 2023, reflecting a 29.6% increase[13] Dividends - The company declared dividends of $0.25 per share, totaling $1,148,468 for the six months ended June 30, 2024[10] - The company declared a cash dividend of $0.25 per share on January 30, 2024, totaling $1,148,580 for the first half of 2024, with no dividends declared in the first half of 2023[55] - A total of $1,148,580 in dividends was declared during the first half of 2024, with $1,148,468 paid[55] - On July 10, 2024, the Company declared a cash dividend of $0.35 per share, paid on July 31, 2024[56] Sales and Market Trends - Cosmetic ingredients sales for the three months ended June 30, 2024, were $1,419,374, a 83% increase compared to $772,887 in the same period of 2023[30] - Approximately 17% of total sales in Q2 2024 were to customers outside the U.S., down from 22% in Q2 2023[31] - For the six months ended June 30, 2024, approximately 84% of ASI's sales were to customers in other countries, with China accounting for about 50%[32] Research and Development - Research and development expenses for the three months ended June 30, 2024, were $128,729, compared to $214,642 in the same period of 2023, indicating a decrease of 40%[4] Supply Chain and Operational Challenges - The company is closely monitoring global supply chain instability and inflation, which could impact future gross margins and operational costs[17] - The company has not experienced significant delays in receiving raw materials or increased shipping costs, but remains cautious about potential future impacts due to global supply chain instability[17] Inventory and Allowances - Total inventories as of June 30, 2024, were $1,172,087, a decrease from $1,223,506 as of December 31, 2023[40] - The allowance for credit losses related to accounts receivable was $20,241 as of June 30, 2024, compared to $16,672 at the end of 2023, indicating a 21.0% increase[21] - The company recorded an allowance of $268,242 for possible outdated material returns as of June 30, 2024, compared to $247,847 at the end of 2023, indicating an increase of approximately 8.5%[28] Marketable Securities - The company reported unrealized losses on marketable securities of $(9,501) for the three months ended June 30, 2024, compared to unrealized gains of $441,248 in the same period of 2023[36] - Total marketable securities as of June 30, 2024, were valued at $1,453,542, with an unrealized gain of $33,983, compared to $851,318 and $1,988 as of December 31, 2023[38]

HAUPPAUGE, N.Y., Aug. 09, 2024 (GLOBE NEWSWIRE) -- United-Guardian, Inc. (NASDAQ:UG) announced today the financial results for the second quarter and first half of 2024. Sales for the six-month period ended June 30th increased from $5,220,623 in 2023 to $6,645,149 in 2024 and net income increased from $1,217,175 ($0.26 per share) to $1,881,667 ($0.41 per share) for the same period. Second quarter sales increased from $2,650,299 in 2023 to $3,390,205 in 2024, with net income increasing from $461,094 ($0.10 p ...

Donna Vigilante, President of United-Guardian, stated, "I am pleased to report that the company's Board of Directors has decided to distribute a dividend of $0.35 per share to our stockholders. This one dividend is equal to the total of the last two dividends the company paid, and represents a 40% increase over the $0.25 per share dividend the company paid earlier this year, and a 250% increase over the $0.10 dividend paid last July. While we remain committed to using a portion of our earnings to support ou ...

HAUPPAUGE, N.Y., July 12, 2024 (GLOBE NEWSWIRE) -- United-Guardian, Inc. (NASDAQ:UG) announced today that the company's Board of Directors, at its meeting on July 10, 2024, declared a cash dividend of $0.35 per share, to be paid on July 31, 2024, to all stockholders of record as of the close of business on July 23, 2024. This will be the 29th consecutive year that the company has paid a dividend. Donna Vigilante, President of United-Guardian, stated, "I am pleased to report that the company's Board of Direc ...

Zacks Investment Research has recently initiated the coverage of United-Guardian, Inc. (UG) with an "Outperform" recommendation. The report highlights several compelling factors that position UG favorably in the market, making it an attractive option for investors seeking growth and stability. United-Guardian, headquartered in Hauppauge, NY, operates through its Guardian Laboratories division. The company manufactures and markets cosmetic ingredients, pharmaceutical products, medical lubricants, and sexual ...

Financial Performance - Net sales for Q1 2024 increased to $3,254,944, a 26.7% rise from $2,570,324 in Q1 2023[13] - Net income for Q1 2024 was $925,442, up 22.4% compared to $756,081 in Q1 2023[13] - Earnings per share (basic and diluted) rose to $0.20 in Q1 2024 from $0.16 in Q1 2023, reflecting a 25% increase[13] - For the three months ended March 31, 2024, net sales reached $3,254,944, a 26.6% increase from $2,570,324 in the same period of 2023[44] - Cosmetic ingredients sales for Q1 2024 were $1,876,482, up from $761,901 in Q1 2023, indicating a substantial growth in this segment[44] - Net sales for Q1 2024 increased by $684,620 (approximately 27%) compared to Q1 2023, driven primarily by a 146% increase in cosmetic ingredients sales[85] - Net sales of pharmaceutical products decreased from $1,354,224 in Q1 2023 to $950,323 in Q1 2024, a decline of approximately 30%[86] Assets and Liabilities - Total current assets as of March 31, 2024, were $12,429,989, slightly up from $12,252,713 at December 31, 2023[15] - Cash and cash equivalents decreased to $7,073,296 from $8,243,122 at the end of 2023, a decline of 14.2%[15] - Total liabilities increased to $1,881,985 as of March 31, 2024, compared to $1,534,256 at December 31, 2023[17] - The company’s inventories totaled $1,278,691 as of March 31, 2024, compared to $1,223,506 as of December 31, 2023, showing an increase in inventory levels[54] - Working capital decreased by $150,814 to $10,567,643 at March 31, 2024, with the current ratio dropping to 6.7 to 1 from 8.0 to 1[95] Expenses - Research and development expenses decreased to $102,982 in Q1 2024 from $126,959 in Q1 2023, a reduction of 18.9%[13] - Operating expenses increased by $50,919 (approximately 10%) in Q1 2024 compared to Q1 2023, mainly due to higher Board of Directors fees and legal expenses[89] - R&D expenses decreased by $23,977 (approximately 19%) in Q1 2024 compared to Q1 2023, primarily due to lower payroll-related expenses[90] - The total provision for income taxes for the three months ended March 31, 2024, was $240,734, compared to $196,076 for the same period in 2023, representing an increase of approximately 22.7%[11] Dividends - The company declared dividends of $0.25 per share, totaling $1,148,468 for Q1 2024[19] - The Company declared a cash dividend of $0.25 per share on January 30, 2024, totaling $1,148,580, with $1,148,468 paid during the first quarter of 2024; no dividends were declared in the first quarter of 2023[67] Market and Sales - Approximately 13% of total sales in Q1 2024 were to customers outside the United States, down from 24% in Q1 2023[44] - Three pharmaceutical distributors and one cosmetic ingredient distributor accounted for 83% of gross sales and 90% of accounts receivable as of March 31, 2024, compared to 74% and 79% respectively in Q1 2023[61] - The Company had four major raw material vendors accounting for approximately 88% of raw material purchases in Q1 2024, up from 85% with three vendors in Q1 2023[62] Strategic Focus - The company is focusing on developing new products using natural and environmentally friendly raw materials[25] - The Company focuses on developing new products using natural and environmentally friendly raw materials, with its Lubrajel products certified by the COSMOS standard[75] - The Company has discontinued its line of specialty industrial products due to low sales volume and no growth prospects, effective July 1, 2023[72] Other Financial Metrics - Cash generated from operations was $644,120 in Q1 2024, up from $417,589 in Q1 2023, reflecting an increase in net income[98] - Investment income increased by $50,441 (approximately 106%) in Q1 2024, attributed to higher interest income from U.S. Treasury Bills[91] - Total accrued expenses increased to $1,422,319 as of March 31, 2024, from $1,363,044 as of December 31, 2023, reflecting a rise of approximately 4.3%[58] - The company recognized net gains on marketable securities of $41,496 for the three months ended March 31, 2024, compared to $72,701 for the same period in 2023[49] - The total marketable securities as of March 31, 2024, were valued at $1,536,336, with unrealized gains of $43,484[50] - As of March 31, 2024, the allowance for credit losses related to accounts receivable amounted to $24,321, compared to $16,672 as of December 31, 2023, reflecting a significant increase[33] - The company’s allowance for possible outdated material returns was $255,494 as of March 31, 2024, compared to $247,847 as of December 31, 2023[41]

NOTE: This press release contains both historical and "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements about the company's expectations or beliefs concerning future events, such as financial performance, business prospects, and similar matters, are being made in reliance upon the "safe harbor" provisions of that Act. Such statements are subject to a variety of factors that could cause our actual results or performance to differ materia ...