PacificHealth Laboratories, Inc. (OTCQB: PHLI) (OTCBB: PHLI), a
leading sports nutrition company, today reported its financial
results for the quarter and six months ended June 30, 2012.
Second Quarter & First Half 2012 vs. 2011
Financial Results Revenues were $2,229,234 for the second
quarter and $3,980,173 for the first six months of 2012 compared to
$2,245,226 and $3,976,837, respectively, for the same periods in
2011. Included in revenues for the six months of 2011 is
approximately $25,000 of weight regulation sales that have been
discontinued in 2012. Net loss for the second quarter was
($69,677), or $0.00 per share, and ($109,526), or ($0.01) per
share, for the first six months of 2012 compared to net income of
$91,769, or $0.00 per diluted share and $118,999, or $0.01 per
diluted share, for the same periods in 2011. Included in expenses
in 2012 is approximately $102,000 for the quarter and $158,000 for
the first six months as part of the Company's investment in
internet and social marketing campaigns.
At June 30, 2012, the Company had cash, cash equivalents, and
other short-term investments of $521,369 compared to $820,904 at
December 31, 2011. Current assets exceeded current liabilities by
approximately $1,005,000 at June 30, 2012.
Fred Duffner, President and CEO of PacificHealth Laboratories,
said, "Second quarter and year to date sales were impacted by the
continued reduction in inventory purchases by our nutritional
channel which was down approximately $156,000 in second quarter and
approximately $189,000 year to date. In addition, we invested
$41,000 in markdown monies with key retailers to help accelerate
the transition to our new packaging and formulation that impacted
net sales. Ecommerce is up 9% year to date but below our
expectations. We continue to make modifications to the site,
shopping basket experience, and promotional offers to focus on
increasing this channel as a percentage of overall sales.
Mr. Duffner added, "We continued to make progress on our key
marketing initiatives during the second quarter:
- We completed the transition of all our core brands: ACCEL GEL®,
ACCELERADE™, and ENDUROX R4®, to all-natural formulations. This
included the updating of packaging to one cohesive brand look.
- Our internet marketing efforts to drive awareness resulted in
over 16 million impressions year to date. Twitter followers are at
almost 8,000 and are now over five times what they were in November
2011; Facebook followers year to date are now over 6,300, up 73%
vs. November 2011; and YouTube views are now approximately 18,000
versus approximately 800 at the end of 2011. This will expand
further in the third quarter with the launch of four new videos
featuring Leanda Cave, who was on the podium at the 2011 Kona World
Championship and recently won 'Escape from Alcatraz,' along with a
new PHLI branding video.
- We entered into an agreement with Body Glove International to
private label a product similar to 2ND SURGE® under the Body Glove
label which launches in the third quarter in test market in
Southern California and allows PHLI to break into action sports and
convenience stores for the first time.
- We launched a new nutrition tool, The Portman Calculator, to
help athletes create their specific nutritional plan for over 75
different activities at www.portmancalculator.com."
Mr. Duffner concluded, "Although sales have not yet responded,
we stay committed to our need to expand our consumer audience. The
changes we have made in packaging, messaging, and the new
partnership with Body Glove we believe sets us up to do just
that."
About PacificHealth Laboratories. Inc.
PacificHealth Laboratories, Inc. (OTCQB: PHLI) (OTCBB: PHLI), 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 principal areas of focus
include sports performance and weight loss. To learn more, visit
www.pacifichealthlabs.com.
Notice: 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 AND SIX MONTHS ENDED JUNE 30, 2012 AND 2011
(UNAUDITED)
Three Months Six Months
Ended June 30, Ended June 30,
2012 2011 2012 2011
----------- ----------- ----------- -----------
Revenues:
Net product sales $ 2,229,234 $ 2,245,226 $ 3,980,173 $ 3,976,837
Cost of goods sold 1,363,129 1,250,510 2,369,898 2,211,502
----------- ----------- ----------- -----------
Gross profit 866,105 994,716 1,610,275 1,765,335
----------- ----------- ----------- -----------
Operating expenses:
Sales and marketing 307,012 378,612 503,425 569,043
General and
administrative
(Includes related
party consulting of
$49,475, $48,000,
$98,620 and $91,000,
respectively) 606,254 511,490 1,172,497 1,048,474
Research and
development 18,439 9,978 35,487 24,795
----------- ----------- ----------- -----------
931,705 900,080 1,711,409 1,642,312
----------- ----------- ----------- -----------
(Loss) income before
other (expense) income
and provision for
income taxes (65,600) 94,636 (101,134) 123,023
----------- ----------- ----------- -----------
Other (expense) income:
Other income - - - 2,100
Interest income 121 127 234 279
Interest expense (4,198) (2,994) (8,626) (6,403)
----------- ----------- ----------- -----------
(4,077) (2,867) (8,392) (4,024)
----------- ----------- ----------- -----------
(Loss) income before
provision for income
taxes (69,677) 91,769 (109,526) 118,999
Provision for income
taxes - - - -
----------- ----------- ----------- -----------
Net (loss) income $ (69,677) $ 91,769 $ (109,526) $ 118,999
=========== =========== =========== ===========
Basic (loss) income per
share $ 0.00 $ 0.00 $ (0.01) $ 0.01
=========== =========== =========== ===========
Diluted (loss) income
per share $ 0.00 $ 0.00 $ (0.01) $ 0.01
=========== =========== =========== ===========
Weighted average common
shares - basic 20,871,772 19,723,499 20,871,772 18,202,826
=========== =========== =========== ===========
Weighted average common
shares - diluted 20,871,772 19,929,921 20,871,772 18,390,201
=========== =========== =========== ===========
PACIFICHEALTH LABORATORIES, INC.
BALANCE SHEETS
(UNAUDITED)
ASSETS
June 30, December 31,
2012 2011
------------- -------------
Current assets:
Cash and cash equivalents $ 446,369 $ 745,904
Other short-term investments 75,000 75,000
Accounts receivable, net 834,331 369,376
Inventories, net 982,547 571,403
Prepaid expenses 116,858 91,479
------------- -------------
Total current assets 2,455,105 1,853,162
Property and equipment, net 141,072 26,729
Deposits 10,895 10,895
------------- -------------
Total assets $ 2,607,072 $ 1,890,786
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $ 37,500 $ 37,500
Notes payable 43,912 19,679
Accounts payable and accrued expenses
(Includes related party of $16,275 and
$32,000, respectively) 1,315,267 546,712
Deferred revenue 53,312 56,170
------------- -------------
Total current liabilities 1,449,991 660,061
------------- -------------
Commitments
Stockholders' equity:
Common stock, $.0025 par value; authorized
50,000,000 shares; issued and outstanding:
20,871,772 shares 52,179 52,179
Additional paid-in capital 21,349,201 21,313,319
Accumulated deficit (20,244,299) (20,134,773)
------------- -------------
1,157,081 1,230,725
------------- -------------
Total liabilities and stockholders'
equity $ 2,607,072 $ 1,890,786
============= =============
Contact: Stephen Kuchen CFO 732-739-2900, x603 Email Contact
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