AMS Health Sciences, Inc. Announces First Quarter 2006 Financial Results
May 15 2006 - 9:23AM
Business Wire
AMS Health Sciences, Inc. (AMEX:AMM) announces a profit from
continuing operations of $19,401 for the three months ended March
31, 2006 compared to a loss of $1,314,605 for the same period in
2005. Results for the three months ended March 31, 2006, including
discontinued operations, was a net loss of $316,314. President and
CEO Dr. Jerry W. Grizzle said, "To say that we are proud to
announce an operating profit is an understatement. We have focused
on getting our expenses back in alignment with our sales levels,
eliminating non-producing assets and concentrating on driving sales
and new associate membership." "Even taking into account the
$335,715 allowance from the discontinued operations of Heartland
Cup, we lowered the net loss per share to ($0.04) from ($0.19) in
the first quarter of 2005," said Grizzle. Net Sales for the period
ended March 31, 2006 were $2,351,713. This represents a decrease of
$1,699,045 or 41.5% reduction from the same period in 2005. The
decrease is directly attributable to a free trial program being
offered in 2005. The free trial program created an increase in
sales however customers dropped their associate membership after
receiving the initial free product. Cost of sales decreased by
$1,979,979 from $3,542,133 to $1,565,154 when compared to the same
period in 2005. Cost of sales returned to it historical level as a
percentage of sales of 66.6%. During the first quarter of 2005, the
free trial program mentioned above increased cost of sales to
88.1%, as a percentage of sales. Total marketing and administrative
expenses decreased by $990,965 to $830,664, or 35.3% of net sales,
during the first quarter of 2006. During the same period in 2005
total marketing and administrative expense were $1,821,629 or 45.3%
of net sales. "Our objectives have been to return the Company to
profitability, divest ourselves of non-core businesses, retain our
American Stock Exchange listing and increase shareholder value. I
think our first quarter results indicate that we are on target to
reach our objectives," said Grizzle. AMS Health Sciences, Inc.,
sells more than 60 natural nutritional supplements, weight
management products, and natural skincare products through
independent distributors across the United States and Canada. More
information about the Company is available at
http://www.amsonline.com.
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