WOODBRIDGE, N.J.--(BUSINESS WIRE)--Oct. 31, 2002--PacificHealth Laboratories, Inc. (NASDAQ: PHLI), an innovative nutrition technology company, announced revenues of $1,401,981 for the quarter ended September 30, 2002 versus revenues of $1,328,560 for the same period in 2001.
The Company reported a net loss of ($1,676,450), or ($0.27) per share, for the quarter ended September 30, 2002 after a $1,300,000 (or $0.21 per share) write down of excess SATIETROL inventory. This compares to net income of $19,714, or $0.00 per share, for the same period in 2001. For the nine-month period ended September 30, 2002, revenues were $4,377,007 compared to revenues of $5,800,252 for the same period in 2001. The Company reported a net loss of ($1,972,300), or ($0.32) per share, for the nine months ended September 30, 2002, largely due to the write down of SATIETROL inventory. This compares to net income of $1,001,234, or $0.19 per share, for the same period in 2001 as restated (See Selected Financial Data). Revenues for the nine-month period in 2001 included $1,000,000 in licensing revenues from the Company's licensing agreement with GlaxoSmithKline ("GSK") as well as significant sales of the Company's SATIETROL(R) appetite control product which had received strong one-time independent editorial exposure during these periods.
Significant accomplishments and financial highlights during the third quarter included:
- Sales of the Company's sports performance products, which
include ENDUROX(R) R4(R) Recovery Drink and ACCELERADE(R), the
Company's new sports drink, increased 16% for the third
quarter of 2002 and 40% for the nine months ended September
30, 2002 vs. these same periods in 2001.
- The Company added two leading sports-specialty chains to the
distribution base: Sports Chalet, a 26-store chain located in
California and Nevada, and Recreational Equipment, Inc. (REI),
a national 65-store chain.
- ACCELERADE was named the Official Sports Drink of the Women's'
Basketball Coaches Association (WBCA) - the premier women's
basketball coaching organization with over 5,000 coaches at
- ACCELERADE was named the Official Sports Drink of the
Northeast Conference (NEC) and the Patriot League, which
includes sponsorship of the men's and women's basketball
championships, as well as TV exposure during televised
- The Company continued to make significant progress in the
development, formulation, and packaging of the ACCELERADE
ready-to-drink product. The Company plans to test market this
product in the 1st quarter of 2003.
Dr. Robert Portman, President and CEO of PacificHealth Laboratories, Inc. said, "We continue to see strong revenue growth in our sports performance product line, especially ACCELERADE, and we continue to gain endorsements from leading sports organizations. We added two large athletic retail chains which strengthens our distribution base."
Dr. Portman added, "We chose to focus our resources on developing our sports drinks business which resulted in reduced SATIETROL sales. The Company subsequently made the determination to write down its excess SATIETROL inventory as of September 30, 2002. However, we will continue to attempt to sell this inventory through various channels. Our balance sheet remains strong with a working capital position of $2.8 million and no debt."
Dr. Portman continued, "We are having discussions with companies who are interested in partnering with PHLI for the January 2003 launch of our ACCELERADE ready-to-drink product. Furthermore, regarding SATIETROL, additional clinical work shows that we can improve the efficacy. As a result of this, we are having discussions with both major pharmaceutical and consumer products companies who have expressed an interest in licensing this technology."
Dr. Portman concluded, "We anticipated that we would have been further along in our sales growth this year, but our Company has developed great products and technological assets. I am more than confident that over the next 12 months our shareholders will see the value in these assets realized."
PHLI will hold a conference call to discuss the Company's third quarter 2002 results, tomorrow, Friday, November 1st, at 10:00 a.m. Eastern Standard Time. Participating in the call will be Robert Portman, Chairman and CEO, and Stephen Kuchen, Vice President and CFO. To participate in the conference call, dial 1-800-915-4836 approximately 10 minutes before the scheduled start time. If you are unable to participate, a digital replay of the call will be available from Friday, November 1st at 1:00 p.m. EST until 1:00 p.m. EST on Friday, November 15th by dialing 1-800-428-6051 and using confirmation code # 26673.
About the Company:
PacificHealth Laboratories, Inc., Woodbridge, NJ, was founded in 1995 to develop and commercialize functionally unique nutritional products for sports nutrition, weight loss and Type 2 diabetes. To learn more about PacificHealth Laboratories, Inc., visit: www.pacifichealthlabs.com; www.accelerade.com; www.satietrol.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 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.