DOYLESTOWN, Pa.--(BUSINESS WIRE)--March 19, 2003--The Quigley Corporation (Nasdaq: QGLY) today reported revenue from continuing operations of $11.4 million for the fourth quarter ended December 31, 2002, a 37% increase over the $8.3 million reported for the same period in 2001.
For the year ended December 31, 2002, revenue from continuing operations was $29.4 million, a 29% increase over $22.8 million for the comparable period in 2001.
The increase in revenue from continuing operations for the fourth quarter and the year ended December 31, 2002 reflects significantly improved performance resulting from the Company's Health and Wellness business segment. The Company's cold remedy business segment are at a reduced level from the comparable periods in 2001.
Loss from continuing operations for the fourth quarter 2002 was $1.8 million, or ($0.16) per share, compared to a profit from continuing operations of $1.4 million or $0.13 per share for the same period a year ago. Loss from continuing operations for the year ended December 31, 2002 was $5.1 million, or ($0.47) per share, compared to income from continuing operations of $934,000 or $0.09 per share, for the comparable period in 2001. Net loss for the fourth quarter 2002 was $2.8 million, or ($0.26) per share, compared to a net income of $986,000 or $0.09 per share for the same period a year ago. Net loss for the year ended December 31, 2002 was $6.5 million, or ($0.59) per share, compared to net income of $216,000 or $0.02 per share, for the comparable period in 2001.
Loss from continuing operations in 2002, as compared with 2001, increased during the fourth quarter or during the year from additional advertising, research and development costs associated with Quigley Pharma and other clinical studies; non-cash charges for warrants granted in connection with consulting services; lower net licensing fees from settled litigation that occurred during 2001; and overall reduced gross profit margin. The reduced gross profit margin resulted from the significant increase in Health and Wellness revenue, which has a lower gross profit margin than Cold Remedy product revenues, combined with the decrease in Cold Remedy revenue. These additional losses were offset by profits reflected year-to-date 2002 from the Health and Wellness business segment.
No tax benefits to reduce losses are provided for the fourth quarters and the years ended December 31, 2002 and 2001, 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 and impairment loss of Caribbean Pacific Natural Products, Inc. are reflected as discontinued operations of the Company for all periods presented. Net loss for 2002 includes $1.3 million as compared with $700,000 of losses in 2001 associated with discontinued operations of Caribbean Pacific Natural Products, Inc.
Guy J. Quigley, Chairman, President and Chief Executive Officer stated, "With our divestiture of the Carribbean Pacific Natural Products, Inc., we are continuing to develop and expand those business segments that provide good diversification and multiple revenue streams. Our Health and Wellness segment and our Cold-Eeze branded products continue to produce a solid revenue base while our Quigley Pharma segment offers a wealth of potential new opportunities in the field of patented prescription drugs."
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) 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 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.