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HAUPPAUGE, N.Y., March 17, 2023 (GLOBE NEWSWIRE) -- United-Guardian, Inc. (NASDAQ:UG) reported that net income for FY 2022 decreased by 45% compared to FY 2021. Net sales for the year decreased by 9% from $13,929,629 in 2021 to $12,698,503 in 2022, generating net income of $2,569,512 ($0.56 per share) in 2022 compared to $4,658,542 ($1.01 per share) in 2021.
Beatriz Blanco, President of United-Guardian, stated, “The decrease in the Company’s net income was primarily caused by a decrease in revenue of our cosmetic ingredients combined with increased losses from our marketable securities portfolio. The main factors which negatively impacted the sales of our cosmetic ingredients were 1) overstocking by certain contract manufactures in 2021, in an effort to avoid potential supply chain issues in 2022, and 2) lower demand in Asia, especially in China, due to China’s zero-COVID mandate that was in place for much of 2022. Our pharmaceutical and medical lubricants business remained strong in 2022. We believe that there is potential to continue growing our cosmetic ingredients and medical lubricants business through new product development, new product applications, and technical collaboration with our customers and distributors. The cornerstone of United-Guardian is product innovation and we are continuing to focus our efforts on expanding our line of naturally-derived hydrogels in all markets. United-Guardian continues to have a solid foundation of high-quality innovative hydrogel technologies, as well as an outstanding and experienced team at all levels.”
United-Guardian is a manufacturer of cosmetic ingredients, medical lubricants, and pharmaceutical products. Contact: Beatriz Blanco
(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 company’s 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 the company’s 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 company’s business please refer to the company's reports and filings with the Securities and Exchange Commission.
FINANCIAL RESULTS FOR THE YEARS ENDED
DECEMBER 31, 2022, AND DECEMBER 31, 2021
STATEMENTS OF INCOME
Years ended December 31 2022 2021 Net sales$12,698,503 $13,929,629 Costs and expenses: Cost of sales 5,996,376 5,747,931 Operating expenses 2,174,127 2,035,970 Research and development 490,770 478,642 Total costs and expenses 8,661,273 8,262,543 Income from operations 4,037,230 5,667,086 Other (loss) income: Investment income 236,695 233,857 Net loss on marketable securities (1,046,245) (23,018)Total other (loss) income (809,550) 210,839 Income before provision for income taxes 3,227,680 5,877,925 Provision for income taxes 658,168 1,219,383 Net income$2,569,512 $4,658,542 Earnings per common share (basic and diluted)$0.56 $1.01 Weighted average shares (basic and diluted) 4,594,319 4,594,319
BALANCE SHEET DATA
(condensed) Years ended December 31, 2022 2021 Current assets $9,970,630 $11,583,390Deferred income taxes, net 110,544 ---Property, plant, and equipment (net of depreciation) 559,161 658,862Total assets
10,640,335 12,242,252 Current liabilities 1,373,691 2,337,761Deferred income taxes (net) --- 83,222
Total liabilities 1,373,691 2,420,983 Stockholders’ Equity 9,266,644 9,821,269Total liabilities and stockholders’ equity 10,640,335 12,242,252