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UnitedGuardian Inc Reports Operating Results (10-Q)

November 12, 2010 | About:
10qk

10qk

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UnitedGuardian Inc (UG) filed Quarterly Report for the period ended 2010-09-30.

Unitedguardian Inc has a market cap of $62.7 million; its shares were traded at around $13.64 with a P/E ratio of 18.2 and P/S ratio of 4.7. The dividend yield of Unitedguardian Inc stocks is 4.4%. Unitedguardian Inc had an annual average earning growth of 7.7% over the past 10 years. GuruFocus rated Unitedguardian Inc the business predictability rank of 4.5-star.UG is in the portfolios of Mario Gabelli of GAMCO Investors.

Highlight of Business Operations:

Net sales for the nine-month period ended September 30, 2010 increased $878,434 (8.5%) as compared with the corresponding period in 2009, and net sales for the three-month period ended September 30, 2010 increased $455,254 (13.4%) as compared with the comparable period ended September 30, 2009. The changes in net sales for both the nine- and three-month periods ended September 30, 2010 were principally attributable to changes in sales of the following product lines:

In addition to the above changes in sales, for the nine- and three-month periods ended September 30, 2010, net sales allowances decreased $187,755 (69.3%) and $11,281 (13.3%), respectively, when compared with the corresponding periods in 2009. The decreases were due to decreases in allowances for distribution fees.

Operating expenses consist of selling, general and administrative expenses. Operating expenses decreased $12,855 (0.7%) for the nine-month period ended September 30, 2010 and increased $57,898 (10.7%) for the three-month period ended September 30, 2010 compared with the comparable periods in 2009. The increase for the three-month period ended September 30, 2010 was primarily due to increases in depreciation and payroll related costs.

On July 13, 2010, the Company terminated its DB Plan. The termination resulted in the Company recognizing a one-time non-cash expense of $518,296, offset by a $179,641 tax benefit associated with recognizing unamortized actuarial losses. In addition, the Company provided for a cash contribution of $337,378, offset by a $116,900 tax benefit, in order to fully fund the DB Plan. The recognition of the non-cash and cash contributions resulted in a before-tax charge of $847,744, and an after-tax charge of $559,133 ($0.12 per share) for the nine-month period ended September 30, 2010. Since the non-cash expense had previously been provided for as a charge to other comprehensive income, the net effect of the termination on stockholders equity was a decrease of $220,478.

For the nine- and three-month periods ended September 30, 2010, investment income increased $17,090 (6.2%) and decreased $22,973 (25.8%), respectively, when compared with the comparable periods in 2009. The increase for the nine-month period was attributable primarily to capital gains realized on the sale of marketable securities. The decrease for the three-month period was mainly attributable to a decline in interest rates, lower interest-earning cash balances, and lower returns on investments.

For the nine- and three-month periods ended September 30, 2010, the provision for income taxes decreased by $35,674 (2.4%) and increased by $79,800 (14.7%), respectively, when compared with the comparable periods in 2009. These changes were primarily due to changes in income before taxes.

Read the The complete Report

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10qk
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