Vital Living More Than Triples Revenue in First Quarter 2004

PHOENIX, May 18, 2004 (BUSINESS WIRE) -- Vital Living Inc. (VTLV) today reported its financial results for the three months ended March 31, 2004.

First Quarter 2004 Financial Performance Highlights When Compared To First Quarter 2003

-- Revenues rose 291% to $1,661,350 from $425,324 in the first
quarter of the prior year and established a new company record
for first quarter sales;

-- Gross profit margins on revenue were 43.7%, increasing from
34.1% in the first quarter of the prior year;

-- Although net loss from operations reflected a 161% increase,
or $2,948,838 when compared to $1,128,494 in the first quarter
of the prior year, a significant portion of the increase in
the net loss was due to depreciation and amortization which
includes $1,145,078 of amortization of intangible assets
attributable to acquisitions completed in late 2003 and
approximately $742,000 accrued to satisfy a severance
obligation associated with the resignation of the company's
former chief executive officer; and

-- The total net loss rose to $3,374,010, or $0.06 loss per basic
and diluted share, compared to $1,141,475, or $0.06 loss per
basic and diluted share. The increase in net loss is primarily
attributed to the charges referred to above.

Commenting on the company's first quarter results, Stuart Benson, CEO of Vital Living, stated, "2004 is off to a very positive start. We believe that this is the year that Vital Living will leverage its aggressive growth strategies to increase market presence within the specialty pharmaceutical/nutraceutical industry. Based on solid financial performance from our recent acquisitions -- Christopher's Original Formulas and Doctors for Nutrition, focused marketing plans committed to driving consumer demand for our newest product introduction X-Fat, the impact of margin improvement initiatives and potential benefits from our recent efforts in China, we look forward to achieving even greater improvements and measurable gains in all areas of our operations on a moving forward basis."

About Vital Living Inc.

Vital Living,, develops or licenses nutraceuticals and pharmaceuticals and markets them for distribution through physicians, medical groups, chiropractic offices and other 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 provides 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. The company's initial areas of focus are cardiovascular health, through its product Essentum(R) which is currently undergoing clinical trials and being endorsed by the Arizona Heart Institute and prescribed throughout the United States, and weight loss, through its licensed product X-Fat(R), the company's patented dietary supplement that uses Kytabsorbe, a liquid form of the natural fat absorber, Chitosan. Vital Living also owns MAF BioNutritionals, Christopher's line of over 300 products and Doctors for Nutrition.

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. 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 company's ability to continue to successfully market and provide its products and services and maintain their effectiveness, the continuation of the arrangements with the company's product development partners, the ability of the company to meet its financial projections, and general economic conditions. 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 that 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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