PacificHealth Laboratories Reports 15% Revenue Growth and Records Net Income for Second Quarter 2009 - Yahoo! Finance
PacificHealth Laboratories Reports 15% Revenue Growth and Records Net Income for Second Quarter 2009
MATAWAN, N.J.--(BUSINESS WIRE)--PacificHealth Laboratories, Inc. (OTCBB: PHLI - News), a leading sports
nutrition company, today reported its financial results for the quarter
and six months ended June 30, 2009.
Revenues increased 15% to $2,725,055 compared to $2,370,429 for the same
period in 2008. Net income for the second quarter of 2009 was $12,922,
or $0.00 per diluted share, compared to a net loss of $146,608, or $0.01
per diluted share, for the same period in 2008. As a result of a change
in estimate relating to revenue recognition in connection with sales to
a major customer, the Company recognized revenues of approximately
$279,000 and reduced inventory by approximately $129,000 that was
previously recorded as deferred revenue and inventory, respectively.
Sales and marketing expenses increased $209,436, or 85%, in the quarter
ended June 30, 2009 compared to the same period in 2008. This increase
was primarily due to increased spend for a public relations and
marketing campaign associated with the launch of ForzeGPS™, the
Company’s new weight management tool. General and administrative
expenses decreased $70,446 in the quarter ended June 30, 2009 compared
to the same period in 2008, primarily due to the organizational
restructuring initiated in the third quarter of 2008.
At June 30, 2009, the Company had cash, cash equivalents, and other
short-term investments of $857,000 as compared to $811,000 at March 31,
2009 and $1.2 million at December 31, 2008.
“I am pleased with the condition of our business in light of a continued
challenging retail and consumer spend environment,” said Jason Ash,
President and Chief Executive Officer of PacificHealth Laboratories. “We
reported growth in revenue and profit in Q2 and we are confident we can
build from this going forward. Both our core endurance and weight
control business sectors grew in Q2, and this improved performance was
driven by our new commercial strategy, focused marketing campaigns, and
implementation of a new national sales team. PHLI continues to meet its
goals in terms of innovation, market expansion and operational
efficiency.
“We recently introduced our highly innovative new weight management tool
ForzeGPS. The continued exposure we are receiving as the 'Official Bar'
of the 2009 and 2010 Rock 'n' Roll marathon series has resulted in more
and more people requesting product from their local retailers. This
exposure has positively impacted our base business as was demonstrated
by our recent announcement that GNC is now selling ACCELERADE™ HYDRO™
for the first time. The next event in the series, the Rock 'n' Roll Half
Marathon in Chicago on August 2, is expected to continue to build both
distribution and consumer momentum. Operationally, we are beginning to
realize the benefits of our cost reduction efforts that we initiated in
late 2008 and we expect to see further improvement in the second half of
2009.”
First Half 2009 Financial results vs.
First Half 2008 Financial Results
Revenue increased 8% to $4,420,673 compared to $4,089,804 for the same
period in 2008. Net loss for the first half of 2009 was $392,543, or
$0.03 per diluted share, compared to a net loss of $418,013, or $0.03
per diluted share, for the same period in 2008. Sales and marketing
expenses increased $381,310, or 98%, for the six months ended June 30,
2009 compared to the same period in 2008. General and administrative
expenses decreased $138,270 for the six months ended June 30, 2009
compared to the same period in 2008, primarily due to the organizational
restructuring initiated in the third quarter of 2008.
Mr. Ash concluded, “The combination of a new sales strategy, the launch
of ForzeGPS, and a focus on increasing gross margin and containing G&A
expenses, resulted in a solid start to our third quarter. We are
encouraged by this positive business momentum and the market acceptance
of our new product launches and we look forward to the second half of
the year with confidence.”
Conference Call/Webcast Information
As previously announced, we have scheduled an earnings release
conference call for 4:00 p.m. Eastern Daylight Time today, Wednesday,
July 29, 2009. The dial-in numbers for this conference call are as
follows:
Domestic Dial-in Number:
(877) 407-9210
International Dial-in Number:
(201) 689-8049
A simultaneous webcast will be available via the Company’s website at www.pacifichealthlabs.com.
The call will be archived on the Company's website for at least 90 days.
A recording of the live-call will be available approximately 2 hours
after the event through August 12, 2009. The replay will be accessible
by dialing (877) 660-6853 or (201) 612-7415 and using account #286 and
conference ID # 328729.
About the Company:
PacificHealth Laboratories, Inc. is an innovative and leading sports
nutrition company that focuses on marketing, developing, and selling
premium nutrition products to active consumers seeking to improve their
health and performance. Our brands and nutrition tools consist of three
discreet platforms: rehydration/energy, recovery, and optimal racing
weight and include ForzeGPS, the first scientifically proven appetite
management tool created specifically for athletes. To learn more, visit www.pacifichealthlabs.com.
This press release and oral statements made from time to time by Company
representatives concerning the same subject matter may contain so-called
"forward-looking statements". These statements can be identified by
introductory words such as "expects," "plans," "will," "estimates,"
"forecasts," "projects" or words of similar meaning and by the fact they
do not relate strictly to historical or current facts. Forward-looking
statements frequently are used in discussing new products and their
potential. Many factors may cause actual results to differ from
forward-looking statements, including inaccurate assumptions and a broad
variety of risks and uncertainties, some of which are known, such
general economic conditions, consumer product acceptance and competitive
products, and others of which are not. No forward-looking statements are
a guarantee of future results or events, and one should avoid placing
undue reliance on such statements.
SELECTED FINANCIAL DATA:
PACIFICHEALTH LABORATORIES, INC.
STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008
(UNAUDITED)
Three Months
Six Months
Ended June 30,
Ended June 30,
2009
2008
2009
2008
Revenues:
Net product sales
$
2,725,055
$
2,370,429
$
4,420,673
$
4,089,804
Cost of goods sold
1,439,471
1,315,887
2,393,468
2,248,682
Gross profit
1,285,584
1,054,542
2,027,205
1,841,122
Operating expenses:
Sales and marketing
454,904
245,468
771,012
389,702
General and administrative
819,019
889,465
1,651,501
1,789,771
Research and development
-
77,597
-
109,508
1,273,923
1,212,530
2,422,513
2,288,981
Income (loss) before other income (expense) and provision for
income taxes
11,661
(157,988
)
(395,308
)
(447,859
)
Other income (expense):
Other income
4,000
163
4,000
1,296
Interest income
811
11,683
3,102
29,147
Interest expense
(1,470
)
(466
)
(2,257
)
(597
)
3,341
11,380
4,845
29,846
Income (loss) before income taxes
15,002
(146,608
)
(390,463
)
(418,013
)
Provision for income taxes
2,080
-
2,080
-
Net income (loss)
$
12,922
$
(146,608
)
$
(392,543
)
$
(418,013
)
Basic and diluted income (loss) per share
$
0.00
$
(0.01
)
$
(0.03
)
$
(0.03
)
Weighted average common shares - basic
14,680,710
13,501,426
14,570,712
13,501,426
Weighted average common shares - diluted
14,858,810
13,501,426
14,570,712
13,501,426
PACIFICHEALTH LABORATORIES, INC.
BALANCE SHEETS
ASSETS
June 30,
December 31,
2009
2008
(Unaudited)
Current assets:
Cash and cash equivalents
$
581,696
$
888,993
Other short-term investments
275,000
300,000
Accounts receivable, net
1,395,800
455,851
Inventories
984,767
1,308,316
Prepaid expenses
209,671
159,200
Total current assets
3,446,934
3,112,360
Property and equipment, net
220,368
236,721
Deposits
10,895
22,895
Total assets
$
3,678,197
$
3,371,976
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable
$
65,321
$
58,810
Accounts payable and accrued expenses
1,031,444
555,354
Deferred revenue
275,313
347,945
Total current liabilities
1,372,078
962,109
Stockholders' equity:
Common stock, $.0025 par value; authorized 50,000,000 shares;
issued and outstanding:
15,268,182 shares at June 30, 2009 and 14,194,613 shares at
December 31, 2008
