GlobeNewswire Inc | Aug 7, 2020 10:00AM EDT

August 07, 2020

HAUPPAUGE, N.Y., Aug. 07, 2020 (GLOBE NEWSWIRE) -- United-Guardian, Inc. (NASDAQ:UG) reported today that net income for the second quarter of 2020 grew by 10% over the same quarter last year, increasing from $1,078,810 in 2019 to $1,186,611 this year, despite sales decreasing by 10% from $3,279,399 to $2,954,644. Sales for the first six months of the year were down slightly from $6,459,716 in 2019 to $6,277,558 this year, with net income for the six-month period decreasing from $2,301,504 ($0.50 a share) in 2019 to $1,976,918 ($0.43 a share) in the first six months of 2020.

Ken Globus, President of United-Guardian, stated, With many companies continuing to struggle during these difficult times, we were pleased that we were able to maintain a strong level of sales, even with some of our major markets, particularly China, being severely impacted by the global pandemic. With some help from the recovering stock market, which increased the value of our marketable securities, as well as very strong sales in April, we were able to increase our earnings from $0.23 per share in the second quarter of 2019 to $0.26 this year, despite the lower sales. Although we anticipate that the pandemic will impact global sales of our cosmetic ingredients more significantly in the third quarter than it did in the first two quarters of the year, we expect sales of our pharmaceutical and medical products to remain strong, and we continue to be hopeful that we will see a gradual increase in sales as the year progresses and the global economies continue to recover.

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

Contact:Ken Globus(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.

RESULTS FOR THE QUARTERS ENDED JUNE 30, 2020 and JUNE 30, 2019*

STATEMENTS OF INCOME (UNAUDITED)

THREE MONTHS SIX MONTHS ENDED ENDED JUNE 30, JUNE 30, 2020 2019 2020 2019 Net sales $ 2,954,644 $ 3,279,399 $ 6,277,558 $ 6,459,716 Costs and expenses: Cost of sales 1,270,434 1,467,323 2,659,765 2,755,668 Operating expenses 511,635 502,094 1,026,910 1,049,056 Research and 108,566 93,846 216,298 192,504 development expenseTotal costs and 1,890,635 2,063,263 3,902,973 3,997,228 expensesIncome from operations 1,064,009 1,216,136 2,374,585 2,462,488 Other income: Investment income 48,319 49,941 92,386 94,108 Net gain on 387,179 86,849 30,584 344,043 marketablesecuritiesTotal other income 435,498 136,790 122,970 438,151 Income beforeprovision for income 1,499,507 1,352,926 2,497,555 2,900,639 taxes Provision for income 312,896 274,116 520,637 599,135 taxesNET INCOME $ 1,186,611 $ 1,078,810 $ 1,976,918 $ 2,301,504 Earnings per commonshare $ 0.26 $ 0.23 $ 0.43 $ 0.50 (basic and diluted) Weighted averageshares 4,594,319 4,594,319 4,594,319 4,594,319 (basic and diluted)

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