PHLI PacificHealth Laboratories Inc (CE)

PacificHealth Laboratories, Inc. (OTCBB: PHLI), a leading nutrition company, today reported its financial results for the quarter ended March 31, 2010.

First Quarter 2010 vs. First Quarter 2009 Financial Results

Revenue was $1,650,265 compared to $1,695,618 for the same period in 2009. Net loss for the first quarter decreased 34% to $269,230, or $0.02 per share, compared to a net loss of $405,465, or $0.03 per share, for the same period in 2009. Included in the net losses above are severance costs relating to CEO Separation Agreements of $62,040 and $73,749, respectively, for the quarters ended March 31, 2010 and 2009. Sales and marketing expenses decreased $81,023 in the quarter ended March 31, 2010 compared to the same period in 2009 primarily due to the Company initiating a public relations and marketing campaign associated with the launch of Forze GPS™ and also introducing a new national sales representative organization designed to increase penetration in the sports specialty retail market in the first quarter of 2009. General and administrative expenses decreased $58,332 in the quarter ended March 31, 2010 compared to the same period in 2009.

Fred Duffner, President of PacificHealth Laboratories said, “We are very pleased with the progress we have made in the first quarter. We reduced our loss for the quarter by lowering spending while maintaining revenues, which has stabilized our cash position. The slight decrease in revenues was the result of season opening orders in the sports specialty channel moving into the second quarter due to tighter management of inventory in the channel this year. In 2009 we also launched our rep group program into sports specialty that resulted in pipeline inventory orders into approximately 100 new dealers during the first quarter of last year. We have also adjusted our inventory investment into the top selling items to insure we are ready for what we feel will be a successful season starting in the second quarter.”

About PacificHealth Laboratories. Inc.

PacificHealth Laboratories, Inc. (OTCBB: PHLI) is a leading sports nutrition company that focuses on marketing, developing and selling premium nutrition tools for exercisers and athletes seeking to improve their health and performance. We are highly active in the endurance sports arena. Our brands and patents are typically protein-based and extend to cover areas such as appetite regulation. PHLI’s principle areas of focus are sports performance and recovery, including optimal weight management. To learn more, visit www.pacifichealthlabs.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.

SELECTED FINANCIAL DATA:

  PACIFICHEALTH LABORATORIES, INC. STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2010 AND 2009 (UNAUDITED)     Three Months Ended March 31,

2010

 

2009

Revenue: Net product sales $ 1,650,265 $ 1,695,618   Cost of goods sold   909,379     953,997     Gross profit   740,886     741,621     Operating expenses: Sales and marketing 235,085 316,108 General and administrative   774,150     832,482     1,009,235     1,148,590    

Loss before other (expense) income and provision for income taxes

  (268,349 )   (406,969 )   Other (expense) income: Interest income 228 2,291 Interest expense   (1,109 )   (787 )   (881 )   1,504     Loss before provision for income taxes (269,230 ) (405,465 )   Provision for income taxes   -     -     Net loss $ (269,230 ) $ (405,465 )   Net loss per common share - basic and diluted $ (0.02 ) $ (0.03 )   Weighted average shares outstanding - basic and diluted   15,684,010     14,459,492       PACIFICHEALTH LABORATORIES, INC. BALANCE SHEETS   ASSETS     March 31, December 31, 2010 2009 (Unaudited)   Current assets: Cash and cash equivalents $ 251,030 $ 281,159 Other short-term investments 175,000 175,000 Accounts receivable, net 965,424 763,288 Inventories, net 650,646 806,212 Prepaid expenses 80,487 92,702 Tax loss receivable   -     303,931   Total current assets 2,122,587 2,422,292   Property and equipment, net 91,163 110,904   Deposits   10,895     10,895     Total assets $ 2,224,645   $ 2,544,091     LIABILITIES AND STOCKHOLDERS' EQUITY   Current liabilities: Line of credit $ 87,500 $ - Notes payable - 12,182 Accounts payable and accrued expenses 965,069 1,042,051 Deferred revenue   207,152     306,239   Total current liabilities   1,259,721     1,360,472     Commitments   Stockholders' equity: Common stock, $.0025 par value; authorized 50,000,000 shares; issued and outstanding: 16,035,988 and 15,624,017 shares, respectively 40,090 39,060 Additional paid-in capital 20,081,104 20,031,599 Accumulated deficit   (19,156,270 )   (18,887,040 )   964,924     1,183,619     Total liabilities and stockholders' equity $ 2,224,645   $ 2,544,091