OKLAHOMA CITY, May 11, 2007 (BUSINESS WIRE) -- AMS Health Sciences, Inc., (AMM) , today announced a net loss for the first quarter 2007 of ($410,339), or ($0.05) per common (diluted) share, on 8.5 million shares outstanding. This compares to a net loss of ($242,553), or $(0.03) per common (diluted) share, on 7.8 million shares outstanding in the first quarter of 2006. Sales totaled $2,435,342 million for the quarter compared to sales of $2,425,474 million for the quarter ended March 31, 2006, an increase of $9,868 or .41%.
Cost of sales in the first quarter of 2007 decreased as a percentage of net sales to 63.92%, compared to 64.53% in the first quarter of 2006. Gross profit improved by $18,317 in the 2007 first quarter to $878,637 from $860,320 in the same period of 2006. Gross profit as a percentage of net sales improved to 36.08% compared to 35.47% in 2006.
"This is our second consecutive quarter of year over year sales and recruiting increases," said Dr. Jerry Grizzle, President and CEO. "We have worked very hard in the last year to clean up our corporate structure and position the Company for growth and profitability. Our sales and recruiting numbers are moving in the right direction, and they represent the last piece to completing our turnaround. In the first quarter of 2007, our average opening order was $105.93, compared to an average opening order of $72.82 in the first quarter of 2006. That is a 45% increase in opening order volume, and is a direct result of the launch of the new Saba division."
AMS Health Sciences, Inc., sells more than 60 natural nutritional supplements, weight management products, and natural skincare products through independent distributors across the U.S. and Canada. More information about the Company is available at http://www.amsonline.com.
This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that represent the Company's current expectations and beliefs, including, among other things: (i) expectations regarding the positive impact of certain strategic initiatives to contain costs and increase sales; and (ii) the Company's plans regarding the rollout of its new saba product line. The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements of views expressed herein. These risks and uncertainties include, but are not limited to: (a) material decreases in active associates, or the Company's failure to execute its strategic initiatives; (b) regulatory risks associated with the Company's nutritional supplements, which could adversely affect the Company if regulatory scrutiny dampens enthusiasm or the ability of the Company or its associates to effectively market its products; (c) any failure of current or planned initiatives or products, including, among others, the introduction of the saba line of nutritional supplements to generate interest among associates and customers and generate sponsoring and selling activities on a sustained basis; (d) any inability of the Company to obtain necessary product registrations for its nutritional and personal care products in a timely manner; (e) adverse publicity related to the Company's business, products or industry; and (f) continued competitive pressures in the Company's markets. The Company's financial performance and the forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the Company with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-KSB. The forward-looking statements set forth the Company's beliefs as of the date of this release, and the Company assumes no duty to update the forward-looking statements contained in this release to reflect any change.