HAYWARD, Calif.--(BUSINESS WIRE)--Aug. 14, 2003--Allergy Research Group, Inc. (OTCBB:ALRG) announced financial results for the second quarter ending June 30, 2003.
ALRG recorded total revenue of $3,447,130 for the quarter, up 7% from 2002. The increase of $213,005 is primarily due to increased sales to distributors and increased demand at retail for current and new products. Total revenue for the first quarter 2003 was $3,448,762.
"We are very encouraged by our ability to sustain our current level of sales," said Chief Executive Officer and Chairman, Dr. Stephen A. Levine, Ph.D.
Cost of sales decreased $43,653 to $1,990,480 for the quarter ended June 30, 2003, compared to $2,034,133 for the quarter ended June 30, 2002, as a result of higher margins at retail and reduced freight costs. Gross profit margins increased approximately 5.2%, approximating 42.8% for 2003 resulting from the higher margins associated with retail sales.
During the quarter ended June 30, 2003, the Company recorded net income of $427,488, as compared to net income of $221,693 for the same period in 2002. The increase is a reflection of the increase in sales and higher profit margins. Interest expense decreased $9,936 for the quarter ended June 30, 2003, as compared to June 30, 2002 as result of the Company paying down its line of credit from $570,064 at December 31, 2001 to zero at June 30, 2003.
On August 12, 2003, Manfred (Fred) Salomon was appointed President of the Company. Mr. Salomon was hired in 2002 to fill the role of Director of Operations. He brings 40 years of executive management experience.
Complete copies of the company's financial statements, including notes to the financials, can be found on its website at www.nutricology.com.
About Allergy Research Group, Inc.
Allergy Research Group, Inc. is an innovative leader in nutraceutical research and product formulation. Since its inception in 1979, the company has been noted for quality, hypoallergenic nutritional supplements and supplies products to physicians and healthcare practitioners worldwide.
Except for historical information contained herein, this release contains, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, forward-looking statements that are based on management's beliefs and assumptions, current expectations, estimates and projections. Many of the factors that will determine the Company's financial results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. The Company disclaims any obligation to update any forward-looking statements whether as a result of new information, future events, or otherwise. Important factors and risks that may affect future results include but are not limited to: the impact of competitive products, changes in law and regulations, adequacy and availability of insurance coverage, availability of raw materials, dependence on distributors and customers, litigation, limitations on future financing, the effect of adverse publicity, uncertainties relating to acquisitions, managing and maintaining growth, customer demands, as well as other risks and uncertainties that are described from time to time in the Company's filings with the Securities and Exchange Commission, copies of which are available upon request from the Company's investor relations department.