Friday April 30, 8:00 am Eastern Time
Company Press Release
SOURCE: The Quigley Corporation
The Quigley Corporation, Maker of COLD-EEZE(R), Reports Results for the
First Quarter of 1999
1999 Sales Expected to Increase Approximately 7% to 10% Over 1998
DOYLESTOWN, Pa., April 30 /PRNewswire/ -- The Quigley Corporation
(Nasdaq: QGLY - news), announced today that its flagship COLD-EEZE®
product continued to lead the zinc lozenge market during the first
quarter of 1999, notwithstanding lowered revenues for this quarter from
a shift in seasonal wholesale buying patterns to the third and fourth
quarters, and new herbal cold treatments promoted by national news media
announcements. A substantial investment of approximately $5.6 million in
sales and marketing costs in its product lines decreased profits for the
quarter.
Sales for 1999 are expected to increase 7% to 10% over 1998 sales
because of an anticipated normal cold season, extensions to Quigley's
COLD-EEZE® product line, along with the introduction of BODYMATE(TM)
Nutrition and Weight Management Program. This, in addition to expanded
marketing efforts, especially for the untapped US market for COLD-EEZE®,
all continue to be positive signs of the Company's growth potential.
For the three-month period ended March 31, 1999, Quigley reported
revenues of $6,136,902. Net loss for the first quarter was $1,855,214 or
($.15) per share. In 1998, revenues for the first quarter were
$7,271,819 and net income was $1,266,933 or $.10 basic earnings per
share and diluted earnings per share of $.08.
Guy J. Quigley, Chairman and CEO, said, ''COLD-EEZE®, along with
maintaining its status as the number one zinc lozenge, is also currently
the ninth branded cold remedy product in the entire cough / cold
category.''
''The majority of revenues from COLD-EEZE® now fall in the third and
fourth quarters, whereas the peaks for the consumer purchases and usage
extends from the end of the fourth quarter into the first quarter.
Because of this, the Company now spends approximately 50% of its annual
advertising budget in the first quarter. Since the revenue recognition
and increasing advertising expenditures that support the product sell
through are not in sync, quarter over quarter comparisons for the fiscal
year may be difficult to accomplish.''
''The results of the first quarter reflect our planned extensive
investment to build and expand the COLD-EEZE® brand name for the long
term, along with supporting our two new product launches of COLD-EEZE®
Bubble Gum and BODYMATE(TM) Nutrition and Weight Management Program.''
''Looking beyond this quarter, research shows that only 6% of the US
household population is aware of the benefits offered by our unique,
clinically proven ZIGG(TM) (zinc gluconate glycine) formulation
lozenges. Since the potential for the remaining US population is vast,
coupled with the fruition of COLD-EEZE® international applications, we
believe the worldwide market for COLD-EEZE® products to be in excess of
$1.08 billion at the retail level,'' Mr. Quigley added.
The Company also announced that it will be conducting a conference call
with the Company's management on April 30, 1999 at 2:00 p.m. to discuss
relevant information about the Company. Ten minutes prior to the
scheduled conference time, interested participants are requested to call
888-222-2994 to participate in the conference.
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 results, 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.
The Quigley Corporation, a natural health and homeopathic drug company,
is the maker of COLD-EEZE®, and COLD-EEZE homeopathic bubble gum.
COLD-EEZE® is the only zinc gluconate glycine (ZIGG®) lozenge proven in
two double blind studies to reduce the duration and severity of the
common cold symptoms. In addition to COLD-EEZE®, The Quigley Corporation
also is the maker of BODYMATE(TM) Nutrition & Weight Management
Products.
SOURCE: The Quigley Corporation
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