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United-Guardian(UG) - 2024 Q1 - Quarterly Report
UGUnited-Guardian(UG)2024-05-13 13:00

Financial Performance - Net sales for Q1 2024 increased to 3,254,944,a26.73,254,944, a 26.7% rise from 2,570,324 in Q1 2023[13] - Net income for Q1 2024 was 925,442,up22.4925,442, up 22.4% compared to 756,081 in Q1 2023[13] - Earnings per share (basic and diluted) rose to 0.20inQ12024from0.20 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,a26.63,254,944, 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,upfrom1,876,482, up from 761,901 in Q1 2023, indicating a substantial growth in this segment[44] - Net sales for Q1 2024 increased by 684,620(approximately27684,620 (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 950,323inQ12024,adeclineofapproximately30950,323 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 12,252,713atDecember31,2023[15]−Cashandcashequivalentsdecreasedto12,252,713 at December 31, 2023[15] - Cash and cash equivalents decreased to 7,073,296 from 8,243,122attheendof2023,adeclineof14.28,243,122 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 1,534,256atDecember31,2023[17]−Thecompany’sinventoriestotaled1,534,256 at December 31, 2023[17] - The company’s inventories totaled 1,278,691 as of March 31, 2024, compared to 1,223,506asofDecember31,2023,showinganincreaseininventorylevels[54]−Workingcapitaldecreasedby1,223,506 as of December 31, 2023, showing an increase in inventory levels[54] - Working capital decreased by 150,814 to 10,567,643atMarch31,2024,withthecurrentratiodroppingto6.7to1from8.0to1[95]Expenses−Researchanddevelopmentexpensesdecreasedto10,567,643 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 126,959inQ12023,areductionof18.9126,959 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(approximately1923,977 (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 196,076forthesameperiodin2023,representinganincreaseofapproximately22.7196,076 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 1,148,468forQ12024[19]−TheCompanydeclaredacashdividendof1,148,468 for Q1 2024[19] - The Company declared a cash dividend of 0.25 per share on January 30, 2024, totaling 1,148,580,with1,148,580, 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 644,120inQ12024,upfrom644,120 in Q1 2024, up from 417,589 in Q1 2023, reflecting an increase in net income[98] - Investment income increased by 50,441(approximately10650,441 (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 1,363,044asofDecember31,2023,reflectingariseofapproximately4.31,363,044 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 72,701forthesameperiodin2023[49]−ThetotalmarketablesecuritiesasofMarch31,2024,werevaluedat72,701 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]−AsofMarch31,2024,theallowanceforcreditlossesrelatedtoaccountsreceivableamountedto43,484[50] - As of March 31, 2024, the allowance for credit losses related to accounts receivable amounted to 24,321, compared to 16,672asofDecember31,2023,reflectingasignificantincrease[33]−Thecompany’sallowanceforpossibleoutdatedmaterialreturnswas16,672 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]