Exhibit 99.1
Contact: Lisa Lindberg
The Investor Relations Group
(212) 825-3210
The Quigley Corporation
Shareholder Relations
(267) 880-1111
THE QUIGLEY CORPORATION REPORTS FIRST QUARTER RESULTS, INCREASES REVENUES BY 60%
DOYLESTOWN, PA. April 29, 2003 -- The Quigley Corporation (Nasdaq: QGLY) today
reported revenue from continuing operations of $8.2 million for the quarter
ended March 31, 2003, a 60% increase over the $5.1 million reported for the same
period in 2002.
The increase in 2003 revenues from continuing operations reflects a 109%
increase from the Company's Health and Wellness segment and a 17% increase in
the Cold Remedy segment. The Company's Health and Wellness revenues have
increased as its distribution continues to expand and Cold Remedy revenues have
increased from benefits of strategic advertising affecting the choices made by
consumers.
Loss from continuing operations for the quarter ended March 31, 2003 was
$892,000, or ($0.08) per share, compared to a loss from continuing operations of
$1.7 million or ($0.16) per share for the same period a year ago. Net loss for
the quarter ended March 31, 2003 was $947,000, or ($0.08) per share, compared to
net loss of $1.7 million or ($0.16) per share, for the comparable period in
2002.
Loss from continuing operations in 2003 decreased, as compared with 2002,
because consolidated revenues contributed a greater dollar amount than the
increase in fixed costs and the decrease in non-cash fees associated with
consulting services that occurred in 2002 were offset by additional advertising;
research and development costs associated with the Company's ethical
pharmaceutical subsidiary; and overall reduced gross profit margins. The reduced
gross profit margin resulted from the significant increase in Health and
Wellness revenues, which has a lower gross profit margin than Cold Remedy
product revenues.
No tax benefits to reduce losses are provided for the quarter ended March 31,
2003 and 2002, since the Company is in a net operating loss carry-forward
position, which began in the fourth quarter of 1999, from the cumulative effect
of deductions attributed to options, warrants and unrestricted stock from
previous years' taxable income.
In January 2003, the Company completed the sale of its 60% equity interest in
Caribbean Pacific Natural Products, Inc. to Suncoast Naturals, Inc. by
exchanging its 60% controlling interest in Caribbean Pacific Natural Products,
Inc. for 750,000 Shares of Common Stock and 100,000 Shares of Redeemable
Preferred Stock of Suncoast Naturals, Inc. The results of operations income
(loss) of Caribbean Pacific Natural Products, Inc. are reflected as discontinued
operations of the Company for the periods presented. Net loss for the Company
includes a $55,000 loss and a $35,000 profit associated with discontinued
operations of Caribbean Pacific Natural Products, Inc. in 2003 and 2002,
respectively.
Guy J. Quigley, Chairman, President and Chief Executive Officer stated, "We are
gratified to see a rise in sales of the Cold-Eeze(R) product this quarter.
Consumers seem to be responding to many of the new branding and advertising
initiatives we introduced last year and are continuing this year. After
completing market research, we feel we have developed a highly efficient
marketing program that is right on target in reaching current and potential
Cold-Eeze customers."
No claims are being made for the potential medicine discussed in this press
release to be safe, effective, or approved by the Federal Food and Drug
Administration (FDA).
The Quigley Corporation (Nasdaq: QGLY, http://www.Quigleyco.com) is a leading
developer and marketer of diversified health products including the Cold-Eeze(R)
family of patented zinc gluconate glycine (ZIGG(TM)) lozenges, gums and sugar
free tablets. Cold- Eeze is the only (ZIGG(TM)) lozenge proven in two
double-blind studies to reduce the duration of the common cold from 7.6 to 4.4
days or by 42%. In addition to Over-The-Counter (OTC) products, the Company has
formed Quigley Pharma Inc. (http://www.QuigleyPharma.com), a wholly owned
ethical pharmaceutical subsidiary, to introduce a line of naturally-derived
patented prescription drugs. The Quigley Corporation's customers include leading
national wholesalers and distributors, as well as independent and chain food,
drug and mass merchandise stores and pharmacies.
Certain statements in this press release are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995 and involve
known and unknown risk, uncertainties and other factors that may cause the
Company's actual performance or achievements to be materially different from the
results, performance or achievements expressed or implied by the forward-looking
statement. Factors that impact such forward-looking statements include, among
others, changes in worldwide general economic conditions, changes in interest
rates, government regulations, and worldwide competition.
(Tables Follow)
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CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
The following represents condensed financial data (in thousands,
except income (loss) from continuing operations per share and diluted net income
(loss) per share and weighted average shares outstanding) for the three-months
ended March 31, 2003 and 2002:
2003 2002
($) ($)
-------- --------
Sales:
Sales 8,588 5,249
Co-operative advertising promotions 397 264
Net Sales 8,191 4,985
Licensing fees -- 149
Gross profit 3,694 2,438
Sales & marketing expenses 1,528 1,086
Administrative expenses 2,442 2,515
Research & development 647 611
Income taxes (Benefit) -- --
Income (Loss) from:
Continuing operations (892) (1,736)
Discontinued operations (55) 35
Net loss (947) (1,701)
Diluted income (loss) per share:
Continuing operations ($ 0.08) ($ 0.16)
Discontinued operations -- --
Net loss ($ 0.08) ($ 0.16)
Diluted weighted average common shares outstanding: 11,456,617 10,681,985
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
The following represents condensed financial data (in thousands) at
March 31, 2003 and December 31, 2002:
2003 2002
($) ($)
---------- ---------
Cash & cash equivalents 13,315 12,897
Accounts receivable, net 2,022 4,188
Inventory 4,409 4,527
Total current assets 20,327 22,476
Total assets 22,730 24,935
Total current liabilities 5,253 6,512
Total stockholders' equity 17,476 18,423
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