Message #7 From:
NewsBot Date: August 2, 2006 06:00:00 AM
PHLI News PacificHealth Laboratories, Inc. Announces 2nd Quarter Results; Reduces Quarterly Net Loss By 93.6% Year-Over-Year
MATAWAN, N.J.--(BUSINESS WIRE)--Aug. 2, 2006--PacificHealth Laboratories, Inc. (OTCBB: PHLI), an innovative nutrition technology company, today announced its financial results for the second quarter and six months ended June 30, 2006.
For the second quarter ended June 30, 2006, PacificHealth reported revenues of $1,747,206 compared to revenues of $2,042,382 in the same period last year. For the second quarter, the Company reduced its net loss 93.6% to ($26,174), or ($0.00) per share, compared to a net loss of ($407,350), or ($0.04) per share, for the same period last year. Included in the 2005 revenues was a $257,957 transaction that resolved a consignment inventory issue with a major customer. Previously, this sale had been recorded as deferred revenue.
Dr. Robert Portman, President and CEO of PacificHealth said, "In the second quarter we reduced our operating losses primarily because of significantly reduced advertising, marketing and sales expenditures. This reduction was a direct result of the asset sale of Accelerade(R) to Motts LLC, a division of Cadbury Schweppes Americas Beverages (CSAB) in February. We anticipated that CSAB would initiate their marketing efforts for the brand in the second quarter. Commencing in June, CSAB instituted a new ad campaign for Accelerade, which is now running in major sports publications such as Runner's World, Bicycling and Triathlete. CSAB has also begun Accelerade grass roots efforts in major markets. Over the next two quarters we anticipate seeing the impact of these programs on the sales of Accelerade powder and gel."
Dr. Portman continued, "In the second quarter we also saw the publication of additional studies reinforcing the superiority of Accelerade over conventional sports drinks such as Gatorade(R). These studies show that Accelerade offers significant benefits in terms of recovery, endurance and reduction in muscle soreness. In the third quarter a major study will be published demonstrating the rehydration benefits of Accelerade over both Gatorade and water."
For the six months ended June 30, 2006, PacificHealth increased revenues 9% to $3,322,602, compared to revenues of $3,040,043 in the same period in 2005. For the six months ended June 30, 2006, the Company recorded net income of $2,593,119, or $0.20 per share, compared to a net loss of ($1,128,696), or ($0.11) per share, for the same period in 2005. Net income in the first six months of 2006 included approximately $2,622,000 from gain on the sale of patents and technology, net of tax effects, to Mott's LLP, a division of Cadbury Schweppes.
Dr. Portman concluded, "In the second quarter we also made strong progress in preparing Satiatrim, our new weight loss product, for market. We have now completed three quantitative market research studies involving 1,200 consumers. The results of these studies are extremely encouraging. Consumers gave Satiatrim extremely high ratings in terms of it being new and different from existing products and willingness to purchase. We plan to initiate an extensive home use test starting in August. The feedback from the home use test combined with the results of three market research studies gives us a wealth of consumer feedback on how to best position Satiatrim for optimal consumer acceptance."
About PacificHealth Laboratories, Inc.:
PacificHealth Laboratories, Inc. (PHLI.OB), a leading nutrition technology company, has been a pioneer in discovering, developing and commercializing patented, protein-based nutritional products that stimulate specific peptides involved in appetite regulation and that activate biochemical pathways involved in muscle performance and growth. PHLI's principle areas of focus include weight loss, management of Type 2 diabetes and sports performance. To learn more, visit www.pacifichealthlabs.com.
This news 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 MONTHS AND SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(UNAUDITED)
Three Months Six Months
Ended June 30, Ended June 30,
----------------------- -----------------------
2006 2005 2006 2005
------ ------ ------ ------
Revenues:
Net product sales $1,747,206 $2,042,382 $3,322,602 $3,040,043
Cost of goods sold 952,691 1,294,909 1,711,086 1,899,307
----------- ----------- ----------- -----------
Gross profit 794,515 747,473 1,611,516 1,140,736
Selling, general and
administrative
expenses 782,430 1,065,721 1,530,763 2,071,075
Research and
development
expenses 46,233 46,095 87,484 119,118
Depreciation expense 14,858 16,141 28,952 32,303
----------- ----------- ----------- -----------
843,521 1,127,957 1,647,199 2,222,496
----------- ----------- ----------- -----------
Net operating loss (49,006) (380,484) (35,683) (1,081,760)
Other income
(expense):
Gain on sale of
patents/
technology, net
of expenses of
$90,795 - - 3,909,205 -
Interest income 24,319 1,315 32,733 2,922
Interest expense (1,487) (28,181) (30,136) (47,743)
----------- ----------- ----------- -----------
22,832 (26,866) 3,911,802 (44,821)
----------- ----------- ----------- -----------
(Loss) income before
income taxes (26,174) (407,350) 3,876,119 (1,126,581)
Provision for income
taxes - - 1,278,000 2,115
----------- ----------- ----------- -----------
Net (loss) income (26,174) (407,350) 2,598,119 (1,128,696)
Less preferred
dividends - - (5,000) -
----------- ----------- ----------- -----------
Net (loss) income
applicable to common
stockholders $ (26,174) $ (407,350) $2,593,119 $(1,128,696)
=========== =========== =========== ===========
Basic (loss) income
per share $ (0.00) $ (0.04) $ 0.23 $ (0.11)
=========== =========== =========== ===========
Diluted (loss)
income per share $ (0.00) $ (0.04) $ 0.20 $ (0.11)
=========== =========== =========== ===========
Weighted average
common shares -
Basic 11,368,088 10,237,045 11,070,122 10,237,045
=========== =========== =========== ===========
Weighted average
common shares -
Diluted 11,368,088 10,237,045 13,167,853 10,237,045
=========== =========== =========== ===========
PACIFICHEALTH LABORATORIES, INC.
BALANCE SHEETS
ASSETS
June 30, December 31,
2006 2005
(Unaudited)
-------------- --------------
Current assets:
Cash and cash equivalents $ 2,743,833 $ 138,487
Accounts receivable, net 867,413 187,835
Inventories 1,146,112 1,309,779
Prepaid expenses 177,572 119,002
Deferred tax asset - 1,278,000
-------------- --------------
Total current assets 4,934,930 3,033,103
Property and equipment, net 88,552 65,357
Deposits 40,865 20,393
-------------- --------------
Total assets $ 5,064,347 $ 3,118,853
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 68,061 $ 129,944
Accounts payable and accrued expenses 506,526 1,546,958
Deferred revenue 339,233 369,068
-------------- --------------
Total current liabilities 913,820 2,045,970
-------------- --------------
Long-term liabilities:
Convertible notes payable - 500,000
-------------- --------------
Stockholders' equity:
Preferred stock:
Series A, convertible, no par value;
90,909 shares authorized; - 0 - issued
and outstanding at June 30, 2006 and
90,909 issued and outstanding at
December 31, 2005 - 966,387
Series B, convertible, no par value;
45,455 shares authorized, - 0 - shares
issued and outstanding at June 30,2006
and December 31, 2005 - -
Common stock, $.0025 par value;
authorized 50,000,000 shares; issued
and outstanding: 12,648,990 shares at
June 30, 2006 and 10,267,045 shares at
December 31, 2005 31,623 25,667
Additional paid-in capital 17,730,291 15,790,335
Accumulated deficit (13,611,387) (16,209,506)
-------------- --------------
4,150,527 572,883
-------------- --------------
Total liabilities and stockholders'
equity $ 5,064,347 $ 3,118,853
============== ==============
