EXHIBIT 99.1
Contact:
David K. Waldman/John W. Heilshorn Carl Fonash
Lippert Heilshorn & Associates The Quigley Corporation
(212) 838-3777 (267) 880-1111 dwaldman@lhai.com
QUIGLEY REPORTS 43.8% INCREASE IN REVENUE FOR THE FOURTH QUARTER
- ACHIEVES PROFITABILITY IN 2003 WHILE INVESTING $3.4 MILLION IN R&D -
DOYLESTOWN, PA. - FEBRUARY 26, 2004 - THE QUIGLEY CORPORATION (NASDAQ: QGLY)
today reported revenue of $16.4 million for the fourth quarter of 2003, a 43.8%
increase over the $11.4 million reported for the same period in 2002. For the
year ended December 31, 2003, revenue was $41.5 million, a 41.1% increase over
the $29.4 million in 2002.
The increase in revenue for the fourth quarter of 2003 reflects a 62.8% increase
in the Company's Cold Remedy segment and a 15.9% increase in the Health and
Wellness segment. The increase in the 2003 revenue reflects a 44.2% increase in
the Cold Remedy segment and a 38.1% increase in the Company's Health and
Wellness segment. The Company's Cold Remedy revenues have increased from the
benefits of continued strategic advertising, marketing initiatives and new
products, as well as an increased incidence of colds during the fourth quarter.
The Company's Health and Wellness revenues have increased as its distribution
continues to expand domestically and internationally.
Guy J. Quigley, Chairman, President and Chief Executive Officer stated, "During
2003, we reported important developments in our Ethical Pharmaceutical segment.
Specifically, QR-435 was demonstrated to be 100 percent effective in preventing
the influenza A virus infection in ferrets. QR-435 has also demonstrated broad
anti-viral properties for SARS, Herpes Simplex 1, and the strain 3B of the Human
Immunodeficiency Virus Type 1 (HIV-1) in in vitro studies. Based on these
results, we are proceeding to the next level of development with a goal of
prescription drug approval."
Mr. Quigley continued, "During 2003, we also announced the results of our Phase
II proof of concept study for our QR-333 formula for the topical treatment of
diabetic peripheral neuropathy. The study concluded that subjects taking QR-333
had 67% of their symptoms improve, strongly suggesting efficacy. Diabetic
peripheral neuropathy afflicts 60 to 70 percent of the 15.7 million diabetics in
the United States, according to data compiled from 1995-1998 by the National
Institute of Diabetes and Digestive and Kidney Diseases. We are proceeding with
our submission to the United States Food and Drug Administration to obtain
permission for additional trials."
Mr. Quigley concluded, "In addition to the developments in our Ethical
Pharmaceutical segment, we also grew both our Cold Remedy and Health and
Wellness segments. In 2003, we increased our revenue by more than 40 percent and
improved our gross margin. Importantly, we achieved profitability in the fourth
quarter and the full-year, while concurrently funding our increased
pharmaceutical research and development."
Income from continuing operations for the fourth quarter of 2003 was $2.5
million, or $0.17 per share, compared to a loss from continuing operations of
$1.8 million, or ($0.16) per share, for the same period last year. Net income
for the fourth quarter ended December 31, 2003 was $2.5 million, or $0.17 per
share, compared to a net loss of $2.8 million, or ($0.26) per share, in 2002.
Income from continuing operations for 2003 was $729,000, or $0.05 per share,
compared to a loss from continuing operations of $5.1 million, or ($0.47) per
share, for the same period last year. Net income for 2003 was $675,000, or $0.05
per share, compared to a net loss of $6.5 million, or ($0.59) per share, in
2002.
Income from continuing operations for the quarter and year ended December 31,
2003 improved as compared with 2002, given that the increases in consolidated
revenues contributed comparable increases in gross profits, which were partially
offset by increases in marketing, administrative, and research and development
costs associated with Quigley Pharma and other clinical studies. Additionally,
results for the fourth quarter of 2002 include a non-cash charge of $2.1 million
for warrants granted in connection with consulting services.
No tax benefits to reduce losses are provided for the quarter and year ended
December 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 of
Caribbean Pacific Natural Products, Inc. are reflected as discontinued
operations of the company for the periods presented. Net loss for the quarter
and year ended December 31, 2003 includes zero and $54,000, respectively, and
net loss for the quarter and year ended December 31, 2002 includes $1.0 million
and $1.3 million, respectively, associated with discontinued operations of
Caribbean Pacific Natural Products, Inc.
The Quigley Corporation (Nasdaq: QGLY), 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 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.
The Quigley Corporation makes no representation that the U.S. Food and Drug
Administration or any other regulatory agency will grant an IND or take any
other action to allow the aforementioned products to be studied or marketed.
Furthermore, no claim is made that the potential medicine discussed here is
safe, effective, or approved by the Food and Drug Administration. Additionally,
data that demonstrates activity or effectiveness in animals or in vitro tests do
not necessarily mean that the formula test compound, referenced herein will be
effective in humans. Safety and effectiveness in humans will have to be
demonstrated by means of adequate and well controlled clinical studies before
the clinical significance of the formula test compound is known.
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)
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 periods presented:
Three-Months Three-Months Year Ended Year Ended
Ended Ended Ended Ended
December 31, 2003 December 31, 2002 December 31, 2003 December 31, 2002
------------------ ----------------- ----------------- -----------------
Net Sales 16,391 11,399 41,499 29,272
Licensing fees -- -- -- 149
Gross profit 9,064 5,035 20,011 12,212
Sales & marketing expenses 2,728 2,423 6,166 4,941
Administrative expenses 3,043 3,654 9,844 9,892
Research & development 766 766 3,366 2,663
Income taxes (Benefit) -- -- -- --
Income (loss) from
Continuing operations 2,542 (1,774) 729 (5,132)
Discontinued operations -- (1,029) (54) (1,322)
Net income (loss) 2,542 (2,803) 675 (6,454)
Diluted income (loss) per share:
Continuing operations $ 0.17 ($ 0.16) $ 0.05 ($ 0.47)
Discontinued operations -- ($ 0.10) -- ($ 0.12)
Net income (loss) $ 0.17 ($ 0.26) $ 0.05 ($ 0.59)
Diluted weighted average common shares outstanding:
- ---------------------------------------------------
15,036,895 10,964,597 14,910,246 10,893,944
Consolidated Balance Sheets (Unaudited)
The following represents condensed financial data (in thousands) at December 31:
2003 2002
($) ($)
----------- ---------
Cash & cash equivalents 11,392 12,897
Accounts receivable, net 7,862 4,188
Inventory 3,753 4,527
Total current assets 23,740 22,476
Total assets 26,270 24,935
Total current liabilities 7,156 6,512
Total stockholders' equity 19,114 18,423