PHOENIX, May 16, 2006 (BUSINESS WIRE) -- Vital Living Inc. (VTLV) today announced its financial results for the three months ended March 31, 2006.
For the Quarter Ended March 31, 2006, Compared with the Quarter Ended March 31, 2005:
-- Revenue from operations increased 6% to $1.33 million from $1.26 million;
-- Net loss available to common stockholders was $187,000, or $0.0 basic and diluted loss per share, compared with $722,000, or $0.01 basic and diluted loss per share;
-- Net income from operations increased to a profit of $110,000 from a loss of $542,000;
-- Cash used in operations decreased to $148,000 from $226,000;
-- Adjusted earnings before interest, taxes, depreciation and amortization was $113,000 compared with $23,000.
"I am proud to report that for the first time in Vital Living's history, we had an $110,000 operating profit during the first quarter of 2006. These results reflect the hard work, commitment and dedication of our team. By focusing our limited resources on maximizing our sales and marketing around our flagship product, GreensFIRST(R), we have delivered positive operating income to our stockholders. Over the balance of 2006, we expect to expand our product offerings with new and innovative product lines," noted Gregg A. Linn, chief operating officer and chief financial officer of Vital Living.
Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization
We have calculated our Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization, or Adjusted EBITDA, which also excludes the effects of the re-pricing of the variable rate warrants. The table set forth below presents the Adjusted EBITDA, reconciled to Net loss available to common stockholders, which we believe to be the most directly comparable generally accepted accounting principle "GAAP" financial measure. We utilize Adjusted EBITDA to manage and analyze our current operations. This measure gives us a sense of our current operations which excludes all material non-cash charges.
Adjusted EBITDA is not a measure of performance recognized under GAAP. However, it is presented because we believe Adjusted EBITDA is a useful measurement and indicator in evaluating our operating performance, as it represents our combined results excluding the impact of non-cash expenses and items not directly tied to our recurring core operations. Adjusted EBITDA is not a financial measure determined by GAAP and should not be considered as an alternative to net loss from continuing operations as a measure of operating results or to cash flows provided by (used in) operations as a measure of funds available for discretionary or other liquidity purposes. The following table sets forth a reconciliation of net loss available to common stockholders to Adjusted EBITDA for the three months ended March 31, 2006 and 2005.
Net loss available to common stockholders $(187,000) $(722,000)
About Vital Living Inc.
Headquartered in Phoenix, Vital Living develops or licenses nutraceuticals and markets them for distribution through physicians, medical groups, chiropractic offices and retail outlets. Vital Living develops and tests its nutraceuticals in collaboration with leading medical experts in the nutraceuticals field, and has designed them to be incorporated by physicians into a standard physician-patient program in which patients supplement doctor-prescribed pharmaceuticals with its nutraceuticals.
Vital Living is developing unique, safe and naturally derived nutritional products, utilizing advanced drug-delivery technologies, including the Geomatrix(R) technology through its affiliation with SkyePharma PLC. The Geomatrix(R) technology has been provided exclusively for Vital Living's pharmaceutical development in China, and the development of nutraceuticals on a global basis. For more information on the company, please visit www.vitalliving.com.
Except for any historical information, the matters discussed in this press release contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements in this press release include improved net cash flow, and the success of the company's cost-cutting efforts, corporate restructuring initiative, the company's positioning for future growth, the strength of the company's products, the ability of the company's management, and the company's future performance. These forward-looking statements involve risks and uncertainties, including activities, events or developments that the company expects, believes or anticipates will or may occur in the future. A number of factors could cause actual results to differ from those indicated in the forward-looking statements, including the ability of the company to manage the development of the three pharmaceutical products, regulatory approval of the pharmaceutical products, and the ultimate success of the products. Such statements are subject to a number of assumptions, risks and uncertainties which are set forth under "risk factors" in our Form 10-KSB for the year ended Dec. 31, 2005. Readers are cautioned that such statements are not guarantees of future performance and those actual results or developments may differ materially from those set forth in the forward-looking statements. The company undertakes no obligation to publicly update or revise forward-looking statements, whether as a result of new information or otherwise.
Additionally, Vital Living has adopted a new disclosure regulation, Regulation G, which requires public companies that disclose or release non-GAAP financial measures to include in that disclosure a presentation of the most directly comparable GAAP financial measure and a reconciliation of the disclosed non-GAAP financial measure to the most directly comparable GAAP financial measure.
EBITDA or Earnings before Interest, Taxes, Depreciation and Amortization, and excluding Equity in Earnings of Affiliate (Adjusted EBITDA) is presented because management believes it is useful in evaluating Vital Living's operating performance, as this calculation eliminates the effect of financing, income taxes and the accounting effects of capital spending as well as warrant re-pricing, which items may vary for reasons unrelated to overall operating performance. Adjusted EBITDA is not a financial measure determined by generally accepted accounting principles and should not be considered as an alternative to net loss as a measure of operating results or to cash flows as a measure of funds available for discretionary or other liquidity purposes.