« Previous | Next » | All Messages |  PFSD Message Board Home | recommend post |  Ignore Poster

PFSD News Pacific Sands Releases Annual Report: Company Shows First-Ever Profit in 4th Quarter on 97% Increase in Annual Sales

RACINE, Wis.--(BUSINESS WIRE)--Pacific Sands, Inc (NASDAQ OTCBB: PFSD) is pleased to announce that the company achieved it's first profitable quarter in the company's history in 4^th quarter of fiscal 2006 and demonstrated its 7^th consecutive period of quarter over same quarter sales growth.

NOTE: This press release represents only the highlights of our recently filed 10K-SB Management Discussion section. Investors are encouraged to read the entire contents of the filing in detail including discussions of risks available publicly at: www.pacificsands.biz/html/investor_relations.html

Highlights:

Pacific Sands develops, manufactures, markets and sells a range of non-toxic, environment friendly cleaning and water-treatment products based on proprietary blended botanical and nontoxic chemical technologies. The Company's products have applications ranging from water maintenance to cleaning and pet care.

Through the combination of increasing sales and gross profits surpassing the measured increases in selling and administrative expenses, the Company realized its first quarterly net profit in the 4th quarter of fiscal 2006.

In the fourth quarter of the fiscal year ending June 30, 2006 the Company reached quarterly profitability for the first time in its history with net sales of $166,531, gross profit of $101,956 and net earnings of $38,463 or approximately .001 per share. This compares to net sales of $126,067, gross profit of $70,260 and a net loss of $51,586 for the same period the previous fiscal year. Increases in direct internet retail sales, sales to retail outlets, distribution outlets and OEM manufacturers all contributed to the overall increase in sales. In addition, a long disputed invoice that was written off in the 4th quarter of the fiscal year ending June 30, 2006 for $39,915 contributed to net earnings.

For the fiscal year ending June 30, 2006, net sales were $433,918, an increase of 97% over $219,573 in sales booked for fiscal year 2005. The increase in sales is attributable to a number of factors including a significantly higher number of retail outlets carrying the ecoONE® spa treatment products, increased direct Internet retail sales, and the early stages of an OEM deal with a major U.S. spa manufacturer.

Gross profit for the fiscal year ending June 30, 2006 was $250,737 compared to $117,525 for the previous fiscal year, an increase of more than 113%.

For the fiscal year ending June 30, 2006, selling and general administrative expenses were $582,123, up 35% from $431,024 for the fiscal year ending June 30, 2005.

Approximately 10% of our total expenses for the year reflect a one-time write-off of what management now believes to be a non-collectible debt from an invoice generated by previous management. For the fiscal year ending June 30, 2006 the company wrote off the final $59,551 of this invoice.

The Company experienced a loss from operations of $331,386 up 5.7% compared to $313,499 for fiscal year 2005. The company's net loss for fiscal year 2006 was $310,211 compared to $300,430 for fiscal 2005.

At the end of fiscal year ended June 30, 2006, the Company had $201,845 of current assets and $458,474 of current liabilities compared to $107,715 in current assets and $276,748 in current liabilities for fiscal year 2005.

Current liabilities include $120,124 in deferred salary owed to current management which has deferred significant portions of their salary since the management transition in June of 2004. CEO Wynhoff continues to defer the majority of his salary. Current liabilities also includes $113,160 owed to previous management, payment of which has been renegotiated to reduce the debt's impact on the company's cash flow. Total current liabilities to non-related parties is $157,515.

Liquidity and Capital Resources

In the fourth quarter of fiscal 2006, the company's gross profits exceeded its cost of operations; and, for that quarter, operations were funded entirely through the sale of its products.

Cash and cash equivalents totaled $4,977 on June 30, 2006 versus $541 on June 30, 2005.

Net cash used in operations was $96,403 for the fiscal year ending June 30, 2006, down approximately 57% from the $227,135 used the previous fiscal year. The decrease in net cash used in operations is primarily attributable to a continued increase in sales. Additionally, CEO Michael Wynhoff and CFO Michael Michie deferred a total of approximately $98,739 of their salaries for the year, significantly reducing the company's need to raise capital to fund operations.

Net cash provided by financing activities was $102,268 for the fiscal year ending June 30, 2006, down approximately 54% from the $221,260 for the previous fiscal year. The company has required substantially less financing to fund operations primarily because of continuing increased revenues and management's deferral of portions of their salaries.

In fiscal year 2006, Pacific Sands issued a total of 1,500,462 of its restricted common shares for cash and services and received a value of $164,278, (.11 per share) for those shares.

Please Visit:
www.pacificsands.biz/html/investor_relations.html
for the full content of the annual report.

The information contained in this press release includes forward-looking statements. Forward-looking statements usually contain the words "estimate," "anticipate," "believe," "expect" or similar expressions that involve risks and uncertainties. These risks and uncertainties include the company's status as a startup company with uncertain profitability, need for capital, uncertainty concerning market acceptance of its products, competition, and protection of its intellectual property. The company's actual results could differ materially from those discussed herein. Factors that could cause or contribute to such differences are discussed more fully in the "Risk Factors," "Management Discussion" and other sections of the company's Form 10-KSB and other publicly available information regarding the company on file with the Securities and Exchange Commission. The company will provide you with copies of this information upon request.