OKLAHOMA CITY, May 05, 2005 (BUSINESS WIRE) -- AMS Health Sciences, Inc. (AMM), today announced a net loss for the first quarter 2005 of $1.3 million, or $(0.19) per common (diluted) share, on 7.0 million shares outstanding, compared to net income of $54,068, or $0.01 per common (diluted) share, on 8.0 million shares outstanding in the first quarter of 2004. Sales totaled $4.0 million for the quarter compared to sales of $4.5 million for the quarter ended March 31, 2004. Cash and Marketable Securities at March 31, 2005 totaled $2.3 million compared to $3.4 million at December 31, 2004.
The Company continues to recover and replace revenue lost from the April 2004 banning of ephedra, and expects its aggressive customer acquisition campaigns to drive growth over the remainder of fiscal 2005. Additionally, on April 20, 2005, the Company announced a cost-cutting program designed to better align expenses with revenue. AMS expects this program, along with changes in the enrollment offerings of the Company, to result in a decrease in the Company's cost of sales and operating expenses of approximately 20%. As a result, AMS expects to generate positive operational cash flow immediately, and on a monthly basis beginning in May 2005.
In addition, AMS continues to engage The Seidler Companies Incorporated ("Seidler") under an investment banking agreement whereby Seidler is actively seeking new product acquisition and licensing opportunities, as well as evaluating industry opportunities to enhance shareholder value.
About AMS Health Sciences, Inc.
AMS Health Sciences, Inc., sells more than 60 natural nutritional supplements, weight management products, and natural skincare including the world's number-one all-natural stress reliever, Prime One, through independent distributors across the U.S. and Canada. More information about the Company is available at http://www.amsonline.com.
Certain statements in this release may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology such as "anticipates," "believes," "expects," "may," "will," or "should" or other variations thereon, or by discussions of strategies that involve risks and uncertainties. The actual results of the Company or industry results may be materially different from any future results expressed or implied by such forward-looking statements.