LARGO, FL, Jul 12, 2006 (MARKET WIRE via COMTEX) -- Dynamic Health Products, Inc. (DYHP) , a leading distributor in the sports nutrition product and performance drink industries, announced today that total revenues for fiscal year ended March 31, 2006 was a record $50.1 million, an increase of 212% over the prior year's revenues of $16.1 million. Dynamic reported net income applicable to common shareholders of $5.9 million compared to a net loss of $4.4 million in the prior year. Net income on a per share basis was $0.41 in 2006 compared to a per share net loss of $0.34 in 2005.
Mandeep Taneja, Chief Executive Officer, commented, "Our fiscal year ending March 31, 2006 was an extremely gratifying year for us. We delivered record revenue, as well as laid the foundation for sustainable organic growth by increasing our in house sales force, improving our vendor relations and expanding our distribution facilities. Furthermore, major steps were taken towards optimizing our operating efficiencies through the integration of personnel and information systems." Added Mr. Taneja, "As we move into 2007, we are extremely excited by our growth potential. Customer demand is strong and we have the infrastructure in place to support our continued growth."
Total revenues of $50.1 million for the 2006 fiscal year, up 212% from $16.1 million in 2005. The significant increase in revenues included organic growth of approximately 34%.
Gross profit was $9.1 million for the 2006 fiscal year, up 190.6% from $3.1 million in 2005. Gross margin was 18.3% of revenues for the 2006 fiscal year, compared to 19.6% for 2005. We expect to improve our gross margins as we avail ourselves of purchase volume discounts and increase our sales of products yielding higher margins.
Operating expenses for the 2006 fiscal year were $9.7 million and represented 19% of revenues compared with operating expense of $4.2 million in 2005 representing 26.4% of revenues. The improvement in operating expenses, as a percentage of revenues, was due to enhanced operating efficiencies and the overall dollar increase was due to the increase in business activity and revenues.
Net income for the 2006 fiscal year was $5.9 million compared to a net loss of $4.4 million for 2005. This included non-cash income (expenses) for 2006 of $6.9 million and $(5.1) million for 2005, related to two convertible notes and warrants with fixed conversion prices ranging from $0.90 to $1.37.
About Dynamic Health Products
DYHP is a distributor in the sports nutrition product and performance drink industries and is engaged in developing, wholesaling, and distributing a wide variety of non-prescription drugs, dietary supplements, vitamins, health foods, nutritional products, soft goods and other related products. Its wholly-owned operating subsidiaries include Bob O'Leary Health Food Distributor Co., Inc., Dynamic Marketing I, Inc. and Herbal Health Products, Inc. For more about Dynamic Health Products and its subsidiaries go to our web sites at http://www.dyhp.biz, http://www.bossonline.net and http://www.dymark.com.
Safe Harbor Statement under the U.S. Private Securities Litigation Reform Act of 1995: This release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements are presented based on current information available to management and in consideration of assumptions concerning information available to management regarding future events. Forward-looking statements are subject to risks and uncertainties that could cause future events or results to differ materially from such statements. Dynamic Health Products, Inc. disclaims any intent or obligation to update or revise any forward-looking statements and presents information herein solely for the intent of delivering general information regarding the company.