The Quigley Corporation Reports First Quarter Results, Cuts Loss by 90%

Apr 26, 2001, 01:00 ET from The Quigley Corporation

    DOYLESTOWN, Pa., April 26 /PRNewswire/ --
 The Quigley Corporation (Nasdaq:   QGLY) today announced revenues of
 $4.8 million for the first quarter ended March 31, 2001 compared to
 $5.4 million for the comparable period in 2000.
     The foregoing revenues for 2001 and 2000 reflect a change in Generally
 Accepted Accounting Principles (GAAP) that the Company adopted in the first
 quarter of 2001 by which certain co-operative advertising promotions are
 reported as a reduction of sales rather than as a marketing expense as in
 previous years.
     Net loss for the first quarter 2001 was $403,000, or ($0.04) per share
 compared to a net loss of $3.9 million, or ($0.38) per share for the same
 period a year ago.
     No tax benefit is provided for the first quarter losses in both 2001 and
 2000, 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.
     Guy J. Quigley, president, chairman and chief executive officer, said,
 "First quarter performance reflects what we believe will be the end of the
 down cycle in Cold-Eeze sales as we embark on a highly refined strategy for
 the balance of this year.
     "This strategy is focused on the health care community and on a much more
 aggressive company-directed integrated marketing and sales effort -- about
 which we will be announcing important news shortly.  We are also on track to
 meet our long-term objective of introducing a series of products that will
 meet consumer needs every hour of every day of the year."
     The reduced loss in the first quarter of 2001 compared to the same period
 in 2000 reflects the Company's decision to shift its emphasis to highly
 targeted in-store point-of-purchase merchandising from high cost mass
 advertising.
     Mr. Quigley also cited the announcement of two major initiatives as
 highlighted during the first quarter:
 
     -- The filing and assignment to the Company of a Patent Application for a
        new formulation for relief of diabetes-related pain -- the first of
        several products that will be submitted to the FDA for approval; and
 
     -- To accommodate such action, the Company created its Ethical
        Pharmaceutical Division under the direction of Richard A. Rosenbloom
        M.D., Ph.D., the Company's Executive Medical Director and Chairman of
        its Medical Advisory Committee.
 
     "According to the American Diabetic Association," Mr. Quigley noted,
 "there are some 16 million people or six percent of the population of the
 United States who have diabetes.  They represent a huge market with tremendous
 pent up demand for precisely these types of products that The Quigley
 Corporation is developing.  These new formulations will be marketed as both
 over-the-counter products, such as diabetic safe vitamins and minerals, and as
 prescription drugs.
     "Throughout the balance of 2001 and into next year," he concluded, "we
 will execute a strategy designed to produce sales and revenue growth across an
 increasingly diversified product line.  It is designed to return the Company
 to sustainable profitability and increased shareholder value."
 
     The Quigley Corporation is a leading marketer and developer of diversified
 natural health and homeopathic products including Cold-Eeze(R), proven in two
 double blind studies to reduce the duration and severity of common cold
 symptoms.  In addition to over-the-counter products, the Company launched its
 Ethical Pharmaceutical Division to introduce an upcoming line of
 diabetes-related products.  The Company's subsidiaries include Darius
 International Inc. and Caribbean Pacific Natural Products, Inc.  Darius is a
 new direct selling organization specializing in proprietary health and
 wellness products.  Caribbean Pacific is a major developer and partnership
 marketer of all-natural sun-care and skin-care products for luxury resorts,
 theme parks and spas.  The Quigley Corporation's customers include leading
 national wholesalers and mass merchandisers as well as independent and chain
 food, drug and discount stores.
 
     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.
 
 
                     Consolidated Statements of Operations
 
    The following represents condensed financial data (in thousands) for the
                          three-months ended March 31:
 
                                        Three-Months      Three-Months
                                            Ended            Ended
                                           3/31/01          3/31/00
                                             ($)              ($)
 
     Sales:
       Sales                                 5,199            6,615
       Co-operative advertising promotions     395            1,208
     Net Sales                               4,804            5,407
     Gross profit                            3,019            3,132
     Sales & marketing expenses              1,539            5,472
     Administrative expenses                 1,787            1,522
     Research & development                    248              236
     Interest & other income                   152              175
     Income taxes (Benefit)                      -                -
     Net income (Loss)                        (403)          (3,923)
 
     Diluted earnings (loss) per share:      ($.04)           ($.38)
     Diluted weighted average
      common shares:                    10,675,153       10,349,731
 
 
                          Consolidated Balance Sheets
 
  The following represents condensed financial data (in thousands) at March 31
                                and December 31:
 
                                            2001              2000
                                             ($)               ($)
 
     Cash & cash equivalents                 9,707           11,366
     Accounts receivable, net                2,185            4,063
     Inventory                               7,633            6,918
     Total current assets                   20,892           23,470
     Total assets                           23,815           26,056
     Total current liabilities               2,997            4,848
     Total stockholders' equity             20,581           20,971
 
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SOURCE The Quigley Corporation
    DOYLESTOWN, Pa., April 26 /PRNewswire/ --
 The Quigley Corporation (Nasdaq:   QGLY) today announced revenues of
 $4.8 million for the first quarter ended March 31, 2001 compared to
 $5.4 million for the comparable period in 2000.
     The foregoing revenues for 2001 and 2000 reflect a change in Generally
 Accepted Accounting Principles (GAAP) that the Company adopted in the first
 quarter of 2001 by which certain co-operative advertising promotions are
 reported as a reduction of sales rather than as a marketing expense as in
 previous years.
     Net loss for the first quarter 2001 was $403,000, or ($0.04) per share
 compared to a net loss of $3.9 million, or ($0.38) per share for the same
 period a year ago.
     No tax benefit is provided for the first quarter losses in both 2001 and
 2000, 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.
     Guy J. Quigley, president, chairman and chief executive officer, said,
 "First quarter performance reflects what we believe will be the end of the
 down cycle in Cold-Eeze sales as we embark on a highly refined strategy for
 the balance of this year.
     "This strategy is focused on the health care community and on a much more
 aggressive company-directed integrated marketing and sales effort -- about
 which we will be announcing important news shortly.  We are also on track to
 meet our long-term objective of introducing a series of products that will
 meet consumer needs every hour of every day of the year."
     The reduced loss in the first quarter of 2001 compared to the same period
 in 2000 reflects the Company's decision to shift its emphasis to highly
 targeted in-store point-of-purchase merchandising from high cost mass
 advertising.
     Mr. Quigley also cited the announcement of two major initiatives as
 highlighted during the first quarter:
 
     -- The filing and assignment to the Company of a Patent Application for a
        new formulation for relief of diabetes-related pain -- the first of
        several products that will be submitted to the FDA for approval; and
 
     -- To accommodate such action, the Company created its Ethical
        Pharmaceutical Division under the direction of Richard A. Rosenbloom
        M.D., Ph.D., the Company's Executive Medical Director and Chairman of
        its Medical Advisory Committee.
 
     "According to the American Diabetic Association," Mr. Quigley noted,
 "there are some 16 million people or six percent of the population of the
 United States who have diabetes.  They represent a huge market with tremendous
 pent up demand for precisely these types of products that The Quigley
 Corporation is developing.  These new formulations will be marketed as both
 over-the-counter products, such as diabetic safe vitamins and minerals, and as
 prescription drugs.
     "Throughout the balance of 2001 and into next year," he concluded, "we
 will execute a strategy designed to produce sales and revenue growth across an
 increasingly diversified product line.  It is designed to return the Company
 to sustainable profitability and increased shareholder value."
 
     The Quigley Corporation is a leading marketer and developer of diversified
 natural health and homeopathic products including Cold-Eeze(R), proven in two
 double blind studies to reduce the duration and severity of common cold
 symptoms.  In addition to over-the-counter products, the Company launched its
 Ethical Pharmaceutical Division to introduce an upcoming line of
 diabetes-related products.  The Company's subsidiaries include Darius
 International Inc. and Caribbean Pacific Natural Products, Inc.  Darius is a
 new direct selling organization specializing in proprietary health and
 wellness products.  Caribbean Pacific is a major developer and partnership
 marketer of all-natural sun-care and skin-care products for luxury resorts,
 theme parks and spas.  The Quigley Corporation's customers include leading
 national wholesalers and mass merchandisers as well as independent and chain
 food, drug and discount stores.
 
     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.
 
 
                     Consolidated Statements of Operations
 
    The following represents condensed financial data (in thousands) for the
                          three-months ended March 31:
 
                                        Three-Months      Three-Months
                                            Ended            Ended
                                           3/31/01          3/31/00
                                             ($)              ($)
 
     Sales:
       Sales                                 5,199            6,615
       Co-operative advertising promotions     395            1,208
     Net Sales                               4,804            5,407
     Gross profit                            3,019            3,132
     Sales & marketing expenses              1,539            5,472
     Administrative expenses                 1,787            1,522
     Research & development                    248              236
     Interest & other income                   152              175
     Income taxes (Benefit)                      -                -
     Net income (Loss)                        (403)          (3,923)
 
     Diluted earnings (loss) per share:      ($.04)           ($.38)
     Diluted weighted average
      common shares:                    10,675,153       10,349,731
 
 
                          Consolidated Balance Sheets
 
  The following represents condensed financial data (in thousands) at March 31
                                and December 31:
 
                                            2001              2000
                                             ($)               ($)
 
     Cash & cash equivalents                 9,707           11,366
     Accounts receivable, net                2,185            4,063
     Inventory                               7,633            6,918
     Total current assets                   20,892           23,470
     Total assets                           23,815           26,056
     Total current liabilities               2,997            4,848
     Total stockholders' equity             20,581           20,971
 
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                http://tbutton.prnewswire.com/prn/11690X54914515
 
 SOURCE  The Quigley Corporation