GlobeNewswire Inc | Nov 10, 2020 11:00AM EST

November 10, 2020

HAUPPAUGE, N.Y., Nov. 10, 2020 (GLOBE NEWSWIRE) -- United-Guardian, Inc. (NASDAQ:UG) today reported net income of $717,532 ($0.16 per share) on net sales of $2,336,360 for the quarter ended September 30, 2020, compared with net income of $1,069,871 ($0.23 per share) on sales of $3,317,370 for last years third quarter. For the first nine months of 2020, the company reported net income of $2,694,450 ($0.59 per share) on sales of $8,613,918, compared with net income of $3,371,375 ($0.73 per share) on sales of $9,777,086 for the corresponding period in 2019.

Ken Globus, President of United-Guardian, stated, As we anticipated, sales and earnings for the third quarter were impacted by the coronavirus pandemic to a greater degree than they were in the first and second quarters, which we believe was primarily due to the overall global decrease in consumer demand for personal care products. In addition to manufacturers cutting back on production, the coronavirus also caused the temporary closing of many manufacturing facilities, all of which reduced the need for our products and resulted in many distributors holding excess inventory that has to be worked off.

On a positive note, demand for our pharmaceutical products increased by 9% and 15% for the three and nine months, respectively, continuing the trend we have seen this year. With the coronavirus pandemic not yet under control in the U.S. and abroad, we are anticipating that the reduced demand for our cosmetic ingredients, especially in China, will continue until at least the end of the year, possibly longer, depending on how long it takes for the global economies to recover. Until then, we will continue to work closely with our marketing partners to reduce the inventory overstock situation, and to increase our sales by continuing to introduce new cosmetic ingredients and aggressively promote our current products.

United-Guardian is a manufacturer of cosmetic ingredients, personal and health care products, pharmaceuticals, and specialty industrial products.

Contact: Ken Globus Investor Relations(631) 273-0900

NOTE: This press release contains both historical and "forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements about the companys expectations or beliefs concerning future events, such as financial performance, business prospects, and similar matters, are being made in reliance upon the safe harbor provisions of that Act. Such statements are subject to a variety of factors that could cause our actual results or performance to differ materially from the anticipated results or performance expressed or implied by such forward-looking statements. For further information about the risks and uncertainties that may affect the companys business please refer to the company's reports and filings with the Securities and Exchange Commission.

STATEMENTS OF INCOME*FOR THETHREE AND NINE MONTHS ENDED SEPTEMBER 30, 2020 and 2019(UNAUDITED)

THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, 2020 2019 2020 2019 Net Sales $ 2,336,360 $ 3,317,370 $ 8,613,918 $ 9,777,086 Costs and expenses: Cost of sales 974,763 1,386,948 3,634,528 4,142,616 Operating expenses 493,204 544,176 1,520,114 1,593,232 Research and 114,836 104,800 331,134 297,304 developmentTotal costs and 1,582,803 2,035,924 5,485,776 6,033,152 expensesIncome from operations 753,557 1,281,446 3,128,142 3,743,934 Other Income: Investment income 38,932 47,320 131,318 141,428 Net gain on marketable 113,248 25,499 143,832 369,542 securitiesTotal other income 152,180 72,819 275,150 510,970 Income before provision 905,737 1,354,265 3,403,292 4,254,904 for income taxes Provision for income 188,205 284,394 708,842 883,529 taxesNet Income $ 717,532 $ 1,069,871 $ 2,694,450 $ 3,371,375 Earnings per commonshare $ 0.16 $ 0.23 $ 0.59 $ 0.73 (Basic and Diluted) Weighted average shares? basic 4,594,319 4,594,319 4,594,319 4,594,319 and diluted

* Additional financial information can be found at the companys web site at www.u-g.com.