Vital Living, Inc. Reports Financial Results for the First Quarter of 2005

Vital Living, Inc. (VTLV) Results from Continuing Operations Reflect a 34% Increase In Revenues and a 85% Drop in Losses for Quarter Benefits of the Second Half of 2004 Corporate Restructuring Initiatives Showcased

Vital Living Inc. (VTLV) today reported its financial results for the quarter ended March 31, 2005. Revenues were $1,262,000 for the quarter ended March 31, 2005, compared with $943,000 for the quarter ended March 31, 2004, a 34% increase. The net loss was $722,000 or $.01 per basic and fully diluted share, for the 2005 quarter compared with $3,374,000 or $.06 per basic and fully diluted share, for the comparable quarter of 2004.

Commenting on the results, Gregg A. Linn, chief financial officer of the company, stated, "The dramatic improvement in Vital Living's financial performance during the first quarter demonstrates that our strategy to focus on the development and marketing of our proprietary nutritional and nutraceuticals product mix is working. By disposing of several business interests that were not part of our core competency, eliminating non-core personnel and implementing a stringent cost-containment and expense-management program, we have reduced our fixed costs which minimized our cash burn and began to pave the road toward enhanced financial performance."

For the Quarter Ended March 31, 2005, Compared with the Quarter Ended March 31, 2004:

-- Gross profit from continuing operations increased 36% to $591,000 from $435,000;

-- Gross margin percentage from continuing operations increased to 47% from 34%;

-- Net loss from continuing operations decreased 85% to $401,000 from $2,614,000;

-- Net loss before discontinued operations decreased 76% to $722,000 from $3,025,000;

"Looking ahead, we believe that our turnaround strategy will continue to have a positive financial impact. Looking at our reported operating results for the quarter ended March 31, 2005, and adding back all non-cash charges in the quarter, we were marginally cash-flow positive. After consolidating our San Diego operations into our Phoenix facilities and initiating several outsourcing arrangements, we have begun to feel the synergy of these recent initiatives," continued Linn.

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(TM) technology through its affiliation with SkyePharma PLC. The Geomatrix(TM) 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

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 and corporate restructuring initiatives. 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 success of the company's strategy to focus on the development and marketing of it proprietary products, the success of the company's cost-containment measures, the success of the company's outsourcing arrangements, the success of the company's turnaround strategy and the success of the new product initiative. Such statements are subject to a number of assumptions, risks and uncertainties. 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.

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