PacificHealth Laboratories, Inc. Announces 4th Quarter Results

MATAWAN, N.J., Mar 05, 2008 (BUSINESS WIRE) -- PacificHealth Laboratories, Inc. (PHLI ) , an innovative nutrition technology company, today reported fourth quarter and full-year 2007 results.

For the quarter ended December 31, 2007, revenues increased 26% to $1,404,338 compared to $1,113,114 in the same period in 2006. Net loss applicable to common stockholders for the quarter was ($491,462), or ($0.04) per basic and fully diluted share, compared to a net loss applicable to common stockholders of ($383,301), or ($0.03) per basic and fully diluted share, for the same period in 2006. The net loss for the quarter included $238,734 of marketing expenses for the 2007 introduction of SATIATRIM(R). Excluding these expenses, the Company would have recorded a net loss (non-GAAP measure) of ($252,728), or ($0.02) per basic and fully diluted share, for the quarter ended December 31, 2007.
Dr. Robert Portman, Chief Executive Officer of PacificHealth said, "2007 was an important transitional year for PacificHealth Laboratories and I am extremely encouraged with our results in a number of important sales channels.

Overall, our endurance sales were up 20% and our goal is to maintain or exceed this growth in 2008. Sales increases were particularly strong in our specialty sports store and Internet channels, where our retailer marketing efforts resulted in significant year-over-year sales growth. In 2008, we plan to dedicate additional resources to supporting Internet sales, which we believe will become increasingly important to our future growth. In addition, we will introduce five new endurance products in 2008 and will also be far more aggressive in introducing new products outside of the endurance category."

Jason Ash, newly appointed President and Chief Operating Officer of PacificHealth added, "The strong results produced by our Endurance line resulted from a number of new retailer initiatives we implemented in 2007. Through improved product education, redesigned packaging and display racks and sales incentives, PHLI is providing greater assets to enable our retail partners to successfully market our endurance products to their consumers. We are confident that our sharpened marketing focus, coupled with our aggressive innovation agenda, will allow us to realize the significant potential of our business. We have a tremendously exciting year ahead of us."

Dr. Portman concluded, "Clearly, we were disappointed with the results of the launch of ACCELERADE(R) RTD by Cadbury Schweppes Americas Beverages ("CSAB"), which adversely affects potential royalties to PHLI. In addition, SATIATRIM sales were much slower than anticipated and resulted in a significant inventory write down in the third quarter. Our 2008 strategy has been designed to overcome these challenges and drive strong financial results."

For the year ended December 31, 2007, revenues increased 20% to $7,427,857 compared to revenues of $6,209,846 for the year ended December 31, 2006. Net loss applicable to common stockholders was ($1,276,059), or ($0.10) per basic and fully diluted share, for the year ended December 31, 2007 compared to net income applicable to common stockholders of $2,258,577, or $0.17 per fully diluted share, for the year ended December 31, 2006. Net loss for the year ended December 31, 2007 included a $439,208 write-off of SATIATRIM inventory and $514,901 of marketing expenses for SATIATRIM, which was introduced in 2007. Excluding these expenses, the Company would have recorded a net loss (non-GAAP measure) of ($321,950), or ($0.02) per basic and fully diluted share, for the year ended December 31, 2007. The year ended December 31, 2006 would have resulted in a net loss (non-GAAP measure) of ($372,628), or ($0.03) per basic and fully diluted share, if $2,631,205 (net of income taxes of $1,278,000) from the sale of patents and technology to Mott's LLP, a division of CSAB, was excluded from net income in 2006.

About PacificHealth Laboratories, Inc.:
PacificHealth Laboratories, Inc. (PHLI.OB), a leading nutrition technology company, has been a pioneer in discovering, developing and commercializing patented, protein-based nutritional products that stimulate specific peptides involved in appetite regulation and that activate biochemical pathways involved in muscle performance and growth. PHLI's principle areas of focus include weight loss, management of Type 2 diabetes and sports performance. To learn more, visit www.pacifichealthlabs.com.

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 as 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.

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