AMS Health Sciences Announces Third Quarter 2004 Financial Results

OKLAHOMA CITY, Oct 27, 2004 (BUSINESS WIRE) -- AMS Health Sciences, Inc., (AMM), today announced a net loss for the third quarter 2004 of $1,021,657, or $(0.15) per common (diluted) share, on 6.9 million shares outstanding, compared to a net loss of $189,309, or $(0.04) per common (diluted) share, on 4.5 million shares outstanding in the third quarter of 2003. Sales totaled $4.5 million for the quarter compared to sales of $4.9 million for the quarter ended Sept. 30, 2003.

Cash and Marketable Securities at Sept. 30, 2004 totaled $4.4 million compared to $4.2 million at Dec. 31, 2003. The quick ratio of assets to liabilities was approximately 4.2:1, compared to 3:1 at Dec. 31, 2003, while shareholders' equity at Sept. 30, 2004 was $10.8 million compared to shareholders' equity of $8.3 million at Dec. 31, 2003. In January 2004, AMS completed the redemption of all its 1997-A warrants, Redeemable Common Stock Purchase Warrants and Underwriter's Warrants. Substantially all the holders of AMS warrants exercised their warrants prior to completion of the redemption. A portion of the proceeds from the exercise of AMS warrants was used to repay all current and long-term debt, making AMS a debt-free company.

Sales for the first nine months of the current fiscal year totaled $13.3 million compared to $14.2 million for the same period in 2003. Net loss for the first nine months of FY 2004 was $1,909,963, or ($0.28) per common (diluted) share, on 6.7 million shares outstanding, compared to a net loss of $634,412, or ($0.14) per common (diluted) share, on 4.4 million shares outstanding, in the year 2003.

"The banning of ephedra in April 2004, and the resulting cancellations of over 15,000 bottles of AM-300 per month, contributed to a decline of over $1.5 million in Q3 revenue which was partially replaced by $1.1 million in new revenue from our aggressive customer acquisition program," said AMS President David D'Arcangelo. "The announcement of a 7.6% net revenue increase after returns in September from $1.48 million to $1.60 million is positive news going forward, supported by the continued acceleration of our customer acquisition campaigns. October-to-date revenue growth should top 10%, with new associates and preferred customers up over 17 % from the September number of 10,227. Going forward, our focus will be to drive consistent month-to-month revenue growth followed by profitability in 2005."

AMS Health Sciences, Inc., sells more than 60 natural nutritional supplements, weight management products, and natural skincare including the world's number-one all-natural stress reliever, Prime One, through independent distributors across the U.S. and Canada. More information about the Company is available at

Certain statements in this release may constitute ``forward-looking statements'' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology such as "anticipates," "believes," "expects," "may," "will," or "should" or other variations thereon, or by discussions of strategies that involve risks and uncertainties. The actual results of the Company or industry results may be materially different from any future results expressed or implied by such forward-looking statements.

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