PacificHealth Laboratories, Inc. (OTCBB: PHLI stock news), a leading sports nutrition company, today reported its financial results for the quarter and six months ended June 30, 2009.
Second Quarter 2009 vs. Second Quarter 2008 Financial Results
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(TM), 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(TM) HYDRO(TM) 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
38,170 35,486
Additional paid-in capital 19,871,408 19,585,297
Accumulated deficit (17,603,459 ) (17,210,916 )
2,306,119 2,409,867
Total liabilities and stockholders' equity $ 3,678,197 $ 3,371,976
Contact: For PacificHealth Laboratories, Inc. Kevin McGrath 212-245-4577 kevin@cameronassoc.com or Stephen Kuchen, CFO 732-739-2900, x603 skuchen@pacifichealthlabs.com
Contact: U.S. Equity News Tel: (626) 961-8039 Email: info@usequitynews.com
Newstex ID: USE-1074-36827530