U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C 20549
FORM 1O-QSB/A
(Mark One)
_X_ Quarterly report under Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended ____March 31, 1995___
______Transition report under Section 13 or 15(d) of the Exchange Act
For the transition period from ____________ to _________________
Commission File Number ____0-7855___
_____________________UNITED-GUARDIAN INC.______________________
(Exact Name of Small Business Issuer as Specified in Its Charter)
__________Delaware_____________ ____11-1719724___
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
____________230 Marcus Boulevard, Hauppauge, New York 11788__________
(Address of Principal Executive Offices)
____________________________(516) 273-0900______________________________
(Issuer's Telephone Number, Including Area Code)
(Former Name, Former Address and Former Fiscal Year, if Changed
Since Last Report)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for
such shorter period that the registrant was required to file such reports),
and (2) has been subject to such filing requirements for the past 90 days.
Yes ___X___ No ________
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS
Check whether the registrant filed all documents and reports required
to be filed by Section 12, 13 or 15(d) of the Exchange Act after the
distribution of securities under a plan confirmed by a court.
Yes _______ No ________
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuers classes of
common equity, as of the latest practicable date
_______________________________4,762,889________________________________
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The following PART I is amended in its entirety in order to correct
alignment errors encountered during the EDGAR conversion process. No
substantive changes have been made.
PART I. - FINANCIAL INFORMATION
UNITED-GUARDIAN, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
THREE MONTHS ENDED
MARCH 31
1995 1994
__________ ___________
Revenue:
Sales $ 1,686,521 $ 1,393,970
Fees and retainers --- 25,000
__________ ___________
1,686,521 1,418,970
Costs and expenses:
Cost of sales 1,160,543 1,057,010
Operating expenses 450,143 485,984
_________ ___________
1,610,786 1,542,994
Earnings (loss) from operations 75,735 (124,024)
Other income (expense):
Interest income 2,379 1,344
Interest expense (29,260) (28,331)
_________ ___________
Earnings (loss) before income taxes 48,854 (151,011)
Provision (benefit) for income taxes 17,500 (55,000)
_________ ___________
Net earnings (loss) $ 31,354 $ (96,011)
_________ ___________
_________ ___________
Earnings (loss) per common share $ .01 $ (.02)
__________ ___________
__________ ___________
See notes to financial statements
Page 2
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UNITED-GUARDIAN, INC.
CONSOLIDATED BALANCE SHEETS
MARCH 31, DECEMBER 31,
ASSETS 1995 1994
____________ ____________
(UNAUDITED)
Current assets:
Cash and cash equivalents $ 362,007 $ 477,324
Accounts receivable
(less allowance for doubtful
accounts of $19,634 at
March 31, 1995 and
December 31, 1994) 855,834 926,694
Inventories 2,334,184 2,275,247
Prepaid expenses and other 141,815 207,408
current assets
Deferred income taxes 83,845 83,845
_________ _________
Total current assets 3,777,685 3,970,518
_________ _________
Property, plant and equipment;
Land 69,000 69,000
Factory equipment and fixtures 1,836,159 1,776,439
Building and improvements 1,665,982 1,653,643
Waste disposal plant 133,532 133,532
_________ _________
3,704,673 3,632,614
Less: Accumulated depreciation 2,232,262 2,187,653
_________ _________
1,472,411 1,444,961
Assets under capital leases, net 35,309 39,424
_________ _________
1,507,720 1,484,385
_________ _________
Other assets:
Processes and patents, net 525,330 547,258
Other 94,461 12,471
_________ _________
619,791 559,729
_________ _________
$ 5,905,196 $ 6,014,632
_________ _________
_________ _________
See notes to financial statements.
Page 3
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UNITED-GUARDIAN, INC.
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND MARCH 31, DECEMBER 31,
STOCKHOLDERS' EQUITY 1995 1994
_________ _________
(UNAUDITED)
Current liabilities:
Accounts payable $ 606,534 $ 730,544
Notes payable banks 200,000 150,00O
Accrued expense and other 113,453 146,294
Current portion of long term
debt and capital lease
obligations 122,772 126,908
_________ _________
Total current liabilities 1,042,759 1,153,746
_________ _________
Long-term debt 813,771 842,491
_________ _________
Capital lease obligations 6,302 9,385
_________ _________
Deferred income taxes 54,625 54,625
_________ _________
Stockholders' equity:
Common stock $.10 par value, 476,289 476,289
authorized 10,000,000 shares,
issued and outstanding
4,762,889 shares
Capital in excess of par value 3,089,380 3,089,380
Retained earnings 420,070 388,716
_________ _________
Total stockholders' equity 3,985,739 3,954,385
_________ _________
$ 5,905,196 $ 6,014,632
See notes to financial statements.
Page 4
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UNITED-GUARDIAN, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
THREE MONTHS END
MARCH 31
1995 1994
__________ __________
Cash flows provided by operating activities:
Net earnings (loss) $ 31,354 $ (96,011)
Adjustments to reconcile net earnings (loss)
to net cash flows used in operations:
Depreciation and amortization 70,652 64,820
(Increase) decrease in assets:
Accounts receivable 70,860 246,602
Inventories (58,937) (51,441)
Prepaid expenses and other assets (16,397) (36,447)
Increase (decrease) in liabilities:
Accounts payable (124,010) (12,718)
Accrued expenses and other (32,841) (164,510)
________ __________
Net cash (used in) operating activities (59,319) (49,705)
________ __________
Cash flows from investing activities:
Acquisition of property, plant and equipment (72,059) (91,044)
________ __________
Net cash (used in) investing activities (72,059) (91,044)
_________ __________
Cash flows from financing activities:
Increase (decrease) notes payable-bank, net 50,000 (20,000)
Principal payment on Long Term debt (28,720) (25,000)
Principal payments on capital lease
obligations (5,219) (5,598)
_________ __________
Net cash provided by (used in)
financing activities 16,061 (50,598)
_________ __________
Net (decrease) in cash and cash equivalents (115,317) (191,347)
Cash and cash equivalents at beginning
of period 477,324 736,268
_________ __________
Cash and cash equivalents at
end of period $ 362,007 $ 544,921
_________ __________
_________ __________
See Notes to Financial Statements
Page 5
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UNITED-GUARDIAN, INC.
CONSOLIDATED NOTES TO FINANCIAL STATEMENTS
1. In the opinion of the Company, the accompanying unaudited financial
statements contain all adjustments (consisting of only normal recurring
accruals) necessary to present fairly the financial position as of March 31,
1995 and December 31, 1994 and the results of operations and cash flows for
the three months ended March 31, 1995 and 1994. The accounting policies
followed by the Company are set forth in the Company's financial statements
included in the December 31, 1994 Annual Report.
2. The results of operations for the three months ended March 31,1995 and
1994 are not necessarily indicative of the results to be expected for the full
year. Certain prior year amounts have been reclassified to conform with the
current year presentation.
3. For purposes of the Statement of Cash Flows, the Company considers all
highly liquid investments purchased with a maturity of three months or less to
be cash equivalents.
Cash payments for interest were $30,639 and $27,846 for the three
months ended March 31, 1995 and March 31,1994 respectively.
Cash payments for taxes were $38,992 and $129,136 for the three
months ended March 31,1995 and March 31,1994 respectively.
Page 6
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MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
_____________________
Gross Revenue from Operations: Revenue increased $267,551 (18.9%) for
the three months ended March 31,1995 as compared to the comparable period in
1994. The Guardian division had a sales increase of $305,424 (31.8%) while
the Eastern division had a sales decrease of $12,873. Fees and retainers of
$25,000 were earned for the three months ended March 31, 1994 while no fees
and retainers were earned for the comparable period in 1995. The Guardian
sales increase was primarily due to increased sales of cosmetic products.
Cost of Sales: As a percentage of sales, cost of sales decreased from
75.8% for the three months ended March 31, 1994 to 68.8% in the comparable
period in 1995. This decrease is mainly due to the absorption of plant fixed
costs by significantly higher revenue in 1995 as compared to 1994.
Operating Exenses decreased $35,841 (7.4%) in the three months ended
March 31,1995 when compared to the comparable period in 1994. The decrease
was primarily due to decreases in payroll and payroll related costs.
Interest Expense increased $929 (3.3%) in the three months ended March
31, 1995 when compared to the comparable period in 1994. This increase was
mainly due to the increase in interest rates.
Interest Income increased $1,035 (77%) in the three months ended March
31, 1995 when compared to the comparable period in 1994. This increase is
primarily due to the increase in interest rates.
Financial Condition
___________________
Working capital decreased from $2,816,772 at December 31,1994 to
$2,734,926 at March 31,1995 primarily as a result of the acquisition of
property, plant, and equipment. The current ratio increased from 3.4 to 1 at
December 31,1994 to 3.6 to 1 at March 31,1995. The Company believes that its
working capital is and will continue to be sufficient to support its operating
requirements
Page 7
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SIGNATURES
In accordance with the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
UNITED-GUARDIAN, INC.
(Registrant)
By: Alfred R. Globus
Alfred R. Globus
Chief Executive Officer and
Chief Financial Officer
Date: May 16, 1995
