KENOSHA, WI--(Marketwired - Aug 15, 2014) - Pacific Sands, Inc. (OTCQB: PFSD) (www.pacificsandsinc.com), which manufactures environmentally friendly, non-toxic pool and spa treatment products, as well as liquid and powder cleaning and laundry products, announced today unaudited results for the company's fiscal 2014 fourth quarter and full year ended June 30, 2014.
Net sales in fiscal 2014 increased 44% to a company record $2.93 million compared with $2.03 million in fiscal 2013. Gross profit for the year was $1.15 million, up 37% compared with $838,312 in fiscal 2013. The company recorded a net loss of $334,059 or $(0.005) per diluted share in fiscal 2014 compared with a net loss of $104,482 or $(0.002) per diluted share in fiscal 2013. Adjusted EBITDA in fiscal 2014 was $(61,696) compared with $(10,695) in fiscal 2013, demonstrating the impact of the company's investments in sales and marketing initiatives had on net income.
For the quarter ended June 30, 2014, net sales were $879,243 compared with $544,727 in fiscal fourth quarter 2013. Gross profit in fiscal fourth quarter 2014 was $322,831 compared with $262,833 in fiscal fourth quarter 2013. The company reported a net loss of $189,652 or $(0.003) per diluted share in fiscal fourth quarter 2014 compared with net income of $55,205 or $0.001 per diluted share in fiscal fourth quarter 2013. Adjusted EBITDA in fiscal fourth quarter 2014 was $(85,459) compared with $108,582 in fiscal fourth quarter 2013, also reflecting the company's year-over-year SG&A increases.
"We believe record net sales this past year continue to demonstrate the positive reception our private label laundry and personal care products, and our pool and spa water treatment products have experienced across a broad range of customers, both national and international," said Michael Michie, President and CEO. "Our gross profit margin held relatively stable at 39% compared with 41.3% in fiscal 2013 as we were able to offset volume-related pricing to key customers with increased purchasing efficiencies.
"Ongoing market acceptance of our products prompted a decision in 2014 to revamp and expand our line of consumer personal care and products. We are introducing new sizes, increased convenience such as premeasured pods for our laundry products, and a re-branding for our Natural Choices line. We are excited about the opportunities as consumer demand for effective, environmentally friendly products continues to grow."
Michie explained the company has invested in personnel, advertising and marketing to support this initiative, which he noted impacted the company's potential profitability due to increased sales, general and administrative expenses in 2014. "We believe this investment in the company's future is critical to drive growth that complements a robust private label business," he added.
The company's assets were $1.08 million at June 30, 2014 compared with $906,956 at June 30, 2013. Cash and cash equivalents increased to $266,190 at June 30, 2014 compared with $90,040 a year ago, partially reflecting financing initiatives to generate necessary capital for growth. With an increased order pipeline and expanded customer base, inventories at June 30, 2014 rose to $259,423 compared with $79,048 at June 30, 2013. "Improved working capital and greater capacity have enabled us to solve challenges the company previously faced when we had difficulty keeping up with demand for our products on a timely basis," explained Michie.
In prior years, the company invested in the plant, property and equipment necessary to support growth with enhanced operating efficiency, flexible capacity, and rapid product development and turnaround. This, Michie noted, has laid the foundation for cost-effective and opportunistic expansion. An example of the company's capabilities is the company's collaboration with the University of Wisconsin-Parkside to develop a biodegradable herbicide for use by homeowners and landscape professionals. Michie explained that with the assistance of a grant from the Southeast Wisconsin Applied Chemistry Center of Excellence, part of the Wisconsin Incentive Grant Program, the company rapidly developed a product that is ready for review and potential approval by the U.S. Environmental Protection Agency (EPA). The grant also aided in funding the chemical analysis required by the EPA prior to product registration.
Michie concluded: "We look forward to the coming year and the numerous opportunities we see to capture a greater share of the market for 'green' products. Expanding the scope of our branded products represents a natural extension of our capabilities and a tremendous opportunity to leverage our strengths."
About The Company
Pacific Sands, Inc. (www.pacificsandsinc.com) is a rapidly growing company that develops, markets and sells unique non-toxic, earth, health and child-friendly products for cleaning, personal hygiene, and water maintenance applications. The company's ecoone® Spa Treatment system earned a third place finish in the "Best Green Product" category at the International Pool and Spa show held November 2012 in New Orleans.
Safe Harbor Act Disclaimer
The statements contained in this release and statements that the company may make orally in connection with this release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in the forward-looking statements, since these forward-looking statements involve risks and uncertainties that could significantly and adversely impact the company's business. Therefore, actual outcomes and results may differ materially from those made in forward-looking statements.