Exhibit 99.1
Contact:
John G. Nesbett/David K. Waldman The Quigley Corporation
Lippert Heilshorn & Associates Shareholder Relations
(212) 838-3777 (215) 880-1111
dwaldman@lhai.com
THE QUIGLEY CORPORATION REPORTS 38.6% INCREASE
IN REVENUE FOR THE SECOND QUARTER
DOYLESTOWN, PA. - July 24, 2003 - The Quigley Corporation (Nasdaq: QGLY) today
reported revenue of $7.0 million for the quarter ended June 30, 2003, a 38.6%
increase over the $5.1 million reported for the same period in 2002. For the
first six months of 2003, revenue was $15.2 million, a 49.2% increase over the
$10.2 million in the first six months of 2002.
The increase in the 2003 revenue for the second quarter reflects a 38.2%
increase in the company's Health and Wellness segment and a 40.2% increase in
the Cold Remedy segment. The increase in the 2003 revenue for the six months
reflects a 64.8% increase in the company's Health and Wellness segment and a
23.8% 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 the benefits of continued ongoing strategic
advertising and marketing initiatives.
Guy J. Quigley, Chairman, President and Chief Executive Officer stated, "Our
results for the quarter reflect continued growth in both our Cold Remedy and
Health and Wellness segments. Furthermore, we continue to invest prudently in
the Ethical Pharmaceutical segment. During the quarter we announced results from
our Phase II proof of concept study for QR-333, our patented formula for the
topical treatment of diabetic peripheral neuropathy. In this study, subjects
using this formulation had 67% of their symptoms improve, suggesting efficacy.
According to the National Institute of Diabetes and Digestive and Kidney
Diseases (NIDDK) diabetic peripheral neuropathy afflicts approximately 60 to 70
percent of the 15.7 million people in the United States with diabetes."
Loss from continuing operations for the second quarter of 2003 was $1.1 million
or ($0.09) per share, compared to a loss from continuing operations of $1.3
million, or ($0.12) per share, for the same period last year. Net loss for the
second quarter ended June 30, 2003 was $1.1 million or ($0.09) per share,
compared to a net loss of $1.4 million, or ($0.13) per share, in 2002.
Loss from continuing operations for the first six months of 2003 was $2.0
million, or ($0.17) per share, compared to a loss from continuing operations of
$3.1 million, or ($0.28) per share, for the same period last year. Net loss for
the first six months of 2003 was $2.0 million, or ($0.17) per share, compared to
a net loss of $3.2 million or ($0.29) per share in 2002.
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Loss from continuing operations for the quarter and six months ended June 30,
2003 decreased, as compared with 2002, because consolidated revenues contributed
comparable increases in gross profits, which were partially offset by increases
in marketing, administrative, and research and development costs.
No tax benefits to reduce losses are provided for the quarter and six months
ended June 30, 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 of
Caribbean Pacific Natural Products, Inc. are reflected as discontinued
operations of the company for the periods presented. Net loss for the quarter
and six months ended June 30, 2003 includes zero and $54,000, respectively and
net loss for the quarter and six months ended June 30, 2002 includes $116,000
and $81,000, respectively associated with discontinued operations of Caribbean
Pacific Natural Products, Inc.
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 loss
from continuing operations per share and diluted net loss per share and weighted
average shares outstanding for the periods presented:
Three-Months Three-Months Six-Months Six-Months
Ended Ended Ended Ended
June 30, 2003 June 30, 2002 June 30, 2003 June 30, 2002
------------- ------------- ------------- -------------
Sales:
Sales 7,189 5,197 15,777 10,446
Co-operative advertising promotions 184 143 581 408
Net Sales 7,005 5,054 15,196 10,038
Licensing fees -- -- -- 149
Gross profit 2,766 1,628 6,460 4,066
Sales & marketing expenses 816 643 2,343 1,730
Administrative expenses 2,312 1,736 4,754 4,251
Research & development 722 621 1,369 1,231
Income taxes (Benefit) -- -- -- --
Loss from:
Continuing operations (1,055) (1,334) (1,947) (3,070)
Discontinued operations -- (116) (54) (81)
Net loss (1,055) (1,450) (2,001) (3,151)
Diluted income (loss) per share:
Continuing operations ($ 0.09) ($ 0.12) ($ 0.17) ($ 0.28)
Discontinued operations -- ($ 0.01) -- ($ 0.01)
Net loss ($ 0.09) ($ 0.13) ($ 0.17) ($ 0.29)
Diluted weighted average common shares outstanding: 11,459,950 10,964,597 11,458,284 10,823,291
Consolidated Balance Sheets (Unaudited)
- ---------------------------------------
The following represents condensed financial data (in thousands) at June 30,
2003 and December 31, 2002:
2003 2002
($) ($)
----------- ----------
Cash & cash equivalents 12,385 12,897
Accounts receivable, net 1,800 4,188
Inventory 4,546 4,527
Total current assets 19,525 22,476
Total assets 21,870 24,935
Total current liabilities 5,433 6,512
Total stockholders' equity 16,437 18,423
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