SOURCE: PacificHealth Laboratories, Inc.

PacificHealth Laboratories, Inc.

May 02, 2012 09:00 ET

PacificHealth Laboratories Reports First Quarter Results; Invests in Online Marketing Presence

MATAWAN, NJ--(Marketwire - May 2, 2012) - PacificHealth Laboratories, Inc. (OTCQB: PHLI) (OTCBB: PHLI), a leading sports nutrition company, today reported that revenues increased to $1,750,939 in the first quarter of 2012 from $1,731,611 for the same period in 2011. The sports performance portion of the business increased approximately 2.5% year over year. The Company reported a net loss of ($39,849), or $0.00 per share, for the quarter ended March 31, 2012 versus net income of $27,230, or $0.00 per share, for the same period in 2011. The first quarter of 2012 included approximately $55,000 in expenses as part of the Company's investment in internet and social marketing campaigns.

Fred Duffner, President and CEO of PacificHealth Laboratories, said, "We have focused our efforts in the first quarter on expanding our audience, improving branding, driving ecommerce sales, and on continued support of new products. To that end during the first quarter:

  • We launched our new web site in March. With a completely new look, video features and testimonials, and added customer friendly options, we are already seeing positive results. March traffic was the highest in history with double the visits of March 2011. Most importantly, 82% were new visitors.
  • We began our PPC (Pay Per Click) campaign in March and generated almost 2 million impressions. Twitter followers were up 136% while our Twitter Reach was recently over 240,000, up from 65,000 in 2011. Our YouTube uploads increased from 800 at the end of 2011 to over 15,000 in March.
  • We are already seeing the impact of these efforts on ecommerce sales. Although these initiatives were launched in March, YTD ecommerce sales for the first quarter are up 32% year over year.
  • We began the relaunch of ACCEL GEL®, ACCELERADE, and ENDUROX R4® with new "All Natural Formulas," and a more cohesive brand look across the entire line and contemporary graphics. The new ACCEL GEL shipped in March and we will complete the transition across all the brands in the second quarter.
  • We completed several new studies with 2ND SURGE® showing that this product is highly effective in extending muscle endurance, improving reaction time, and decreasing brain fatigue. The results of these studies are now being incorporated into our advertising and web programs."

Mr. Duffner concluded, "We also showed a modest increase in revenues in the first quarter which is traditionally one of our slower quarters prior to the start of the endurance season. We are very pleased with the key branding and consumer messaging changes we were able to implement in just 3 months. I believe these initiatives will support our future growth and success."

About PacificHealth:
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 as 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 ENDED MARCH 31, 2012 AND 2011
(UNAUDITED)
Three Months
Ended March 31,
2012 2011
Revenues:
Net product sales $ 1,750,939 $ 1,731,611
Cost of goods sold 1,006,769 960,992
Gross profit 744,170 770,619
Operating expenses:
Sales and marketing 196,413 190,431
General and administrative (Includes related party consulting of $49,145 and $43,000, respectively)
566,243

536,984
Research and development 17,048 14,817
779,704 742,232
(Loss) income before other (expense) income and provision for income taxes
(35,534
)
28,387
Other (expense) income:
Other income - 2,100
Interest income 113 152
Interest expense (4,428 ) (3,409 )
(4,315 ) (1,157 )
(Loss) income before provision for income taxes (39,849 ) 27,230
Provision for income taxes - -
Net (loss) income $ (39,849 ) $ 27,230
Basic (loss) income per share $ 0.00 $ 0.00
Diluted (loss) income per share $ 0.00 $ 0.00
Weighted average common shares - basic 20,871,772 16,665,257
Weighted average common shares - diluted 20,871,772 16,833,590
PACIFICHEALTH LABORATORIES, INC.
BALANCE SHEETS
(UNAUDITED)
ASSETS
March 31, December 31,
2012 2011
Current assets:
Cash and cash equivalents $ 752,900 $ 745,904
Other short-term investments 75,000 75,000
Accounts receivable, net 706,409 369,376
Inventories, net 701,338 571,403
Prepaid expenses 105,161 91,479
Total current assets 2,340,808 1,853,162
Property and equipment, net 107,402 26,729
Deposits 10,895 10,895
Total assets $ 2,459,105 $ 1,890,786
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Line of credit $ 37,500 $ 37,500
Notes payable 20,691 19,679
Accounts payable and accrued expenses (Includes related party of $19,586 and $32,000, respectively)
1,130,535

546,712
Deferred revenue 61,554 56,170
Total current liabilities 1,250,280 660,061
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 21,331,268 21,313,319
Accumulated deficit (20,174,622 ) (20,134,773 )
1,208,825 1,230,725
Total liabilities and stockholders' equity $ 2,459,105 $ 1,890,786

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