Health & Fitness
Mon, March 14, 2011Sun, March 13, 2011Sat, March 12, 2011Fri, March 11, 2011Thu, March 10, 2011Wed, March 9, 2011Tue, March 8, 2011Mon, March 7, 2011Sat, March 5, 2011Fri, March 4, 2011Thu, March 3, 2011Wed, March 2, 2011Tue, March 1, 2011Mon, February 28, 2011Sun, February 27, 2011Fri, February 25, 2011Thu, February 24, 2011PacificHealth Laboratories Reports 2010 Financial Results
Published in Health and Fitness on Friday, March 4th 2011 at 7:00 GMT by Market Wire
MATAWAN, NJ--(Marketwire - March 4, 2011) - PacificHealth Laboratories, Inc. (
Year Ended December 31 Financial Results
For the year ended December 31, 2010, revenues were $7,200,960 compared to $7,995,194 for the same period in 2009. The Company recorded a net loss of $761,422, or $0.05 per share, for 2010 compared to a net loss of $1,676,124, or $0.11 per share, for 2009. Included in the net loss for 2010 is approximately $462,000 that the Company expensed and paid out in severance costs as a result of the Company streamlining its operations. In the fourth quarter of 2009, the Company made the decision to forgo marketing its FORZE GPS™ weight management product line. As a result, the Company recorded $81,050 in non-cash restructuring charges consisting of writing off property and equipment specific to the marketing efforts of FORZE GPS and also recorded a $491,172 reserve for inventory as the value of this inventory may not ever be realized. Also, in 2009, 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.
Fred Duffner, President and CEO of PacificHealth, said, "2010 was a challenging year in which we had to focus on reducing fixed overhead costs, reducing inventories, and supporting our core sports nutrition brands with minimal consumer support. The reduction in revenue is the result of an over-reliance on customer driven promotional events in 2010 to create awareness, and the $279,000 of recognized revenues in 2009 from one of our major customers. We saw a continuing reduction in promotional revenue through the third and fourth quarters. Going into 2011, we are now able to reallocate our investment into creating consumer awareness through our new advertising campaign, new product launches, and new internet and social messaging. We should begin to see the impact in our second quarter when all of these efforts break aligning with the start of the endurance season. Our goal was to set ourselves up to become profitable in 2011 and I believe we have made the changes necessary to do just that."
Three-Month Financial Results
Revenues in the fourth quarter of 2010 were $996,900 compared to $1,198,230 for the same period in 2009. The Company recorded a net loss of $541,546, or $0.03 per share, compared to a net loss of $1,109,486, or $0.07 per share, for the same period in 2009. As noted above, in the fourth quarter of 2009, the Company recorded a restructuring charge of $81,050 and recorded a $491,172 reserve for inventory.
About the Company:
PacificHealth Laboratories, Inc. (
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.
PACIFICHEALTH LABORATORIES, INC. STATEMENTS OF OPERATIONS FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2010 AND 2009 Three Months Twelve Months Ended December 31, Ended December 31, ----------------------- ----------------------- 2010 2009 2010 2009 ---------- ----------- ---------- ----------- Revenues: Net product sales $ 996,900 $ 1,198,230 $7,200,960 $ 7,995,194 Cost of goods sold: Product sales 667,951 718,759 4,037,332 4,282,777 Write-down of inventories - 491,172 - 491,172 ---------- ----------- ---------- ----------- Total cost of goods sold 667,951 1,209,931 4,037,332 4,773,949 ---------- ----------- ---------- ----------- Gross profit (loss) 328,949 (11,701) 3,163,628 3,221,245 ---------- ----------- ---------- ----------- Operating expenses: Sales and marketing 258,068 539,385 1,166,471 1,880,102 General and administrative (Includes related party consulting of $33,000 and $55,000, respectively, for the three- and twelve- month periods ended December 31, 2010) 607,265 740,206 2,753,512 3,200,680 Research and development 4,000 - 4,000 - Restructuring expense - 81,050 - 81,050 ---------- ----------- ---------- ----------- 869,333 1,360,641 3,923,983 5,161,832 ---------- ----------- ---------- ----------- Loss before other (expense) income and benefit from income taxes (540,384) (1,372,342) (760,355) (1,940,587) ---------- ----------- ---------- ----------- Other (expense) income: Other income - 248 4,000 4,248 Interest income 264 239 1,055 3,684 Interest expense (1,426) (1,562) (6,122) (5,320) ---------- ----------- ---------- ----------- (1,162) (1,075) (1,067) 2,612 ---------- ----------- ---------- ----------- Loss before benefit from income taxes (541,546) (1,373,417) (761,422) (1,937,975) Benefit from income taxes - 263,931 - 261,851 ---------- ----------- ---------- ----------- Net loss $ (541,546) $(1,109,486) $ (761,422) $(1,676,124) ========== =========== ========== =========== Basic and diluted loss per share $ (0.03) $ (0.07) $ (0.05) $ (0.11) ========== =========== ========== =========== Weighted average common shares - basic and diluted 16,485,257 15,448,819 16,146,664 14,974,931 ========== =========== ========== =========== PACIFICHEALTH LABORATORIES, INC. BALANCE SHEETS ASSETS December 31, December 31, 2010 2009 ------------ ------------ Current assets: Cash and cash equivalents $ 134,165 $ 281,159 Other short-term investments 150,000 175,000 Accounts receivable, net 416,722 763,288 Inventories 596,317 806,212 Prepaid expenses 64,780 92,702 Tax loss receivable - 303,931 ------------ ------------ Total current assets 1,361,984 2,422,292 Property and equipment, net 52,531 110,904 Deposits 10,895 10,895 ------------ ------------ Total assets $ 1,425,410 $ 2,544,091 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Line of credit $ 75,000 $ - Notes payable 20,670 12,182 Accounts payable and accrued expenses (Includes related party of $11,000 and $0, respectively) 713,184 1,042,051 Deferred revenue 60,836 306,239 ------------ ------------ Total current liabilities 869,690 1,360,472 ------------ ------------ Stockholders' equity: Common stock, $.0025 par value; authorized 50,000,000 shares; issued and outstanding: 16,485,257 and 15,624,017 shares, respectively 41,213 39,060 Additional paid-in capital 20,162,969 20,031,599 Accumulated deficit (19,648,462) (18,887,040) ------------ ------------ 555,720 1,183,619 ------------ ------------ Total liabilities and stockholders' equity $ 1,425,410 $ 2,544,091 ============ ============
