AMS Health Sciences, Inc. Announces First Quarter 2007 Financial Results

  
    
  
  
    
      AMS Health Sciences, Inc., (AMEX:AMM), 
      today announced a net loss for the first quarter 2007 of ($410,339), or 
      ($0.05) per common (diluted) share, on 8.5 million shares outstanding. 
      This compares to a net loss of ($242,553), or $(0.03) per common 
      (diluted) share, on 7.8 million shares outstanding in the first quarter 
      of 2006. Sales totaled $2,435,342 million for the quarter compared to 
      sales of $2,425,474 million for the quarter ended March 31, 2006, an 
      increase of $9,868 or .41%.
    
    
      Cost of sales in the first quarter of 2007 decreased as a percentage of 
      net sales to 63.92%, compared to 64.53% in the first quarter of 2006. 
      Gross profit improved by $18,317 in the 2007 first quarter to $878,637 
      from $860,320 in the same period of 2006. Gross profit as a percentage 
      of net sales improved to 36.08% compared to 35.47% in 2006.
    
    
      “This is our second consecutive quarter of 
      year over year sales and recruiting increases,” 
      said Dr. Jerry Grizzle, President and CEO. “We 
      have worked very hard in the last year to clean up our corporate 
      structure and position the Company for growth and profitability. Our 
      sales and recruiting numbers are moving in the right direction, and they 
      represent the last piece to completing our turnaround. In the first 
      quarter of 2007, our average opening order was $105.93, compared to an 
      average opening order of $72.82 in the first quarter of 2006. That is a 
      45% increase in opening order volume, and is a direct result of the 
      launch of the new Saba division.”
    
    
      AMS Health Sciences, Inc., sells more than 60 natural nutritional 
      supplements, weight management products, and natural skincare products 
      through independent distributors across the U.S. and Canada. More 
      information about the Company is available at http://www.amsonline.com.
    
    
      This press release contains forward-looking statements within the 
      meaning of Section 21E of the Securities Exchange Act of 1934 that 
      represent the Company’s current expectations 
      and beliefs, including, among other things: (i) expectations regarding 
      the positive impact of certain strategic initiatives to contain costs 
      and increase sales; and (ii) the Company’s 
      plans regarding the rollout of its new saba product line. The 
      forward-looking statements and related assumptions involve risks and 
      uncertainties that could cause actual results and outcomes to differ 
      materially from any forward-looking statements of views expressed 
      herein. These risks and uncertainties include, but are not limited to: 
      (a) material decreases in active associates, or the Company’s 
      failure to execute its strategic initiatives; (b) regulatory risks 
      associated with the Company’s nutritional 
      supplements, which could adversely affect the Company if regulatory 
      scrutiny dampens enthusiasm or the ability of the Company or its 
      associates to effectively market its products; (c) any failure of 
      current or planned initiatives or products, including, among others, the 
      introduction of the saba line of nutritional supplements to generate 
      interest among associates and customers and generate sponsoring and 
      selling activities on a sustained basis; (d) any inability of the 
      Company to obtain necessary product registrations for its nutritional 
      and personal care products in a timely manner; (e) adverse publicity 
      related to the Company’s business, products or 
      industry; and (f) continued competitive pressures in the Company’s 
      markets. The Company’s financial performance 
      and the forward-looking statements contained herein are further 
      qualified by a detailed discussion of associated risks set forth in the 
      documents filed by the Company with the Securities and Exchange 
      Commission, including the Company’s Annual 
      Report on Form 10-KSB. The forward-looking statements set forth the 
      Company’s beliefs as of the date of this 
      release, and the Company assumes no duty to update the forward-looking 
      statements contained in this release to reflect any change.
    
    
      
        
          
             
          
          
            AMS Health Sciences, Inc.
          
          
            Consolidated Balance Sheets
          
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          March 31,
        
        
        
        
          December 31,
        
      
      
        
          ASSETS
        
        
        
        
          2007 
        
        
        
        
          2006 
        
      
      
        
        
        
        
        
          (Unaudited)
        
        
        
        
        
      
      
        
          CURRENT ASSETS:
        
        
        
        
        
        
        
        
        
      
      
        
          Cash
        
        
        
        
          $ 223,388 
        
        
        
        
          $ 269,726 
        
      
      
        
          Marketable securities, available for sale, at fair value
        
        
        
        
          500,000 
        
        
        
        
          793,183 
        
      
      
        
          Receivables
        
        
        
        
          16,653 
        
        
        
        
          44,576 
        
      
      
        
          Inventory, net
        
        
        
        
          853,262 
        
        
        
        
          700,664 
        
      
      
        
          Other assets
        
        
        
        
          77,368 
        
        
        
        
          77,319 
        
      
      
        
          Current assets of discontinued operations
        
        
        
        
          56,025 
        
        
        
        
          110,521 
        
      
      
        
          Total current assets
        
        
        
        
          1,726,696 
        
        
        
        
          1,995,989 
        
      
      
        
          RESTRICTED SECURITIES
        
        
        
        
          79,628 
        
        
        
        
          78,723 
        
      
      
        
          RECEIVABLES
        
        
        
        
          28,994 
        
        
        
        
          28,374 
        
      
      
        
          PROPERTY AND EQUIPMENT, net
        
        
        
        
          2,684,450 
        
        
        
        
          2,794,393 
        
      
      
        
          COVENANTS NOT TO COMPETE and other intangibles, net
        
        
        
        
          305,099 
        
        
        
        
          324,553 
        
      
      
        
          OTHER ASSETS
        
        
        
        
          412,957 
        
        
        
        
          457,344 
        
      
      
        
          NONCURRENT ASSETS OF DISCONTINUED OPERATIONS
        
        
        
        
          1,207,926 
        
        
        
        
          1,253,480 
        
      
      
        
          TOTAL
        
        
        
        
          $ 6,445,750 
        
        
        
        
          $ 6,932,856 
        
      
      
        
          LIABILITIES AND STOCKHOLDERS' EQUITY
        
        
        
        
        
        
        
        
        
      
      
        
          CURRENT LIABILITIES:
        
        
        
        
        
        
        
        
        
      
      
        
          Accounts payable
        
        
        
        
          $ 724,474 
        
        
        
        
          $ 559,920 
        
      
      
        
          Accrued commissions and bonuses
        
        
        
        
          265,761 
        
        
        
        
          268,717 
        
      
      
        
          Accrued other expenses
        
        
        
        
          235,553 
        
        
        
        
          400,204 
        
      
      
        
          Accrued sales tax liability
        
        
        
        
          235,013 
        
        
        
        
          200,481 
        
      
      
        
          Deferred compensation
        
        
        
        
          97,129 
        
        
        
        
          96,378 
        
      
      
        
          Notes payable
        
        
        
        
          507,542 
        
        
        
        
          257,542 
        
      
      
        
          Capital lease obligations
        
        
        
        
          97,393 
        
        
        
        
          104,591 
        
      
      
        
          Current liabilities of discontinued operations
        
        
        
        
          302,336 
        
        
        
        
          360,582 
        
      
      
        
          Total current liabilities
        
        
        
        
          2,465,201 
        
        
        
        
          2,248,415 
        
      
      
        
          LONG-TERM LIABILITIES:
        
        
        
        
        
        
        
        
        
      
      
        
          Notes payable
        
        
        
        
          480,096 
        
        
        
        
          625,220 
        
      
      
        
          Capital lease obligations
        
        
        
        
          73,418 
        
        
        
        
          95,527 
        
      
      
        
          Deferred compensation
        
        
        
        
          259,012 
        
        
        
        
          281,101 
        
      
      
        
          Lease abandonment liability
        
        
        
        
          5,158 
        
        
        
        
          55,123 
        
      
      
        
          Liabilities of discontinued operations
        
        
        
        
          1,489,712 
        
        
        
        
          1,570,359 
        
      
      
        
          Total liabilities
        
        
        
        
          4,772,597 
        
        
        
        
          4,875,745 
        
      
      
        
          
            COMMITMENT AND CONTINGENCIES
          
        
        
        
        
        
        
        
        
        
      
      
        
          STOCKHOLDERS' EQUITY
        
        
        
        
        
        
        
        
        
      
      
        
          Common stock - $.0001 par value; authorized 495,000,000 shares; 
          issued 9,107,419 and 9,107,419 shares; outstanding 8,515,824 and 
          8,515,824 shares, respectively
        
        
        
        
          905 
        
        
        
        
          905 
        
      
      
        
          Paid-in capital
        
        
        
        
          23,636,243 
        
        
        
        
          23,609,734 
        
      
      
        
          Notes receivable for exercise of options
        
        
        
        
          (31,000)
        
        
        
        
          (31,000)
        
      
      
        
          Accumulated deficit
        
        
        
        
          (19,300,216)
        
        
        
        
          (18,889,749)
        
      
      
        
          Total capital and accumulated deficit
        
        
        
        
          4,305,932 
        
        
        
        
          4,689,890 
        
      
      
        
          Less cost of treasury stock (591,595 shares)
        
        
        
        
          (2,632,779)
        
        
        
        
          (2,632,779)
        
      
      
        
          Total stockholders' equity
        
        
        
        
          1,673,153 
        
        
        
        
          2,057,111 
        
      
      
        
          TOTAL
        
        
        
        
          $ 6,445,750 
        
        
        
        
          $ 6,932,856 
        
      
    
    
      
        
          
             
          
          
            AMS Health Sciences, Inc.
          
          
            Consolidated Statements of Operations
          
        
      
      
        
        
        
        
        
           
        
      
      
        
        
        
        
        
          Three Months Ended
        
      
      
        
        
        
        
        
          March 31,
        
      
      
        
        
        
        
        
          2007 
        
        
        
        
          2006 
        
      
      
        
          Net sales
        
        
        
        
          $ 2,435,342 
        
        
        
        
          $ 2,425,474 
        
      
      
        
          Cost of sales
        
        
        
        
          1,556,705 
        
        
        
        
          1,565,154 
        
      
      
        
          Gross profit
        
        
        
        
          878,637 
        
        
        
        
          860,320 
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Marketing, distribution and administrative expenses:
        
        
        
        
        
        
        
        
        
      
      
        
          Marketing
        
        
        
        
          282,996 
        
        
        
        
          141,144 
        
      
      
        
          Distribution and administrative
        
        
        
        
          897,465 
        
        
        
        
          689,520 
        
      
      
        
          Total marketing, distribution and administrative expenses
        
        
        
        
          1,180,461 
        
        
        
        
          830,664 
        
      
      
        
          Income (loss) from operations
        
        
        
        
          (301,824)
        
        
        
        
          29,656 
        
      
      
        
          Other income (expense):
        
        
        
        
        
        
        
        
        
      
      
        
          Interest and dividends, net
        
        
        
        
          (143,174)
        
        
        
        
          3,842 
        
      
      
        
          Other, net
        
        
        
        
          27,005 
        
        
        
        
          59,664 
        
      
      
        
          Total other income (expense)
        
        
        
        
          (116,169)
        
        
        
        
          63,506 
        
      
      
        
          Income (loss) from continuing operations before taxes
        
        
        
        
          (417,993)
        
        
        
        
          93,162 
        
      
      
        
          Income tax expense (benefit)
        
        
        
        
          - 
        
        
        
        
          - 
        
      
      
        
          Income (loss) from continuing operations
        
        
        
        
          (417,993)
        
        
        
        
          93,162 
        
      
      
        
          
            Discontinued operations
          
        
        
        
        
        
        
        
        
        
      
      
        
          Income (loss) from discontinued operations, net of tax
        
        
        
        
          7,654 
        
        
        
        
          (335,715)
        
      
      
        
          Net loss
        
        
        
        
          $ (410,339)
        
        
        
        
          $ (242,553)
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net loss per share:
        
        
        
        
        
        
        
        
        
      
      
        
          Basic:
        
        
        
        
        
        
        
        
        
      
      
        
          Income (loss) from continuing operations
        
        
        
        
          $ (0.05)
        
        
        
        
          $ 0.01 
        
      
      
        
          Income (loss) from discontinued operations net of tax
        
        
        
        
          - 
        
        
        
        
          (0.04)
        
      
      
        
          Net loss per share
        
        
        
        
          $ (0.05)
        
        
        
        
          $ (0.03)
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Diluted:
        
        
        
        
        
        
        
        
        
      
      
        
          Income (loss) from continuing operations
        
        
        
        
          $ (0.05)
        
        
        
        
          $ 0.01 
        
      
      
        
          Income (loss) from discontinued operations net of tax
        
        
        
        
          - 
        
        
        
        
          (0.04)
        
      
      
        
          Net loss per share
        
        
        
        
          $ (0.05)
        
        
        
        
          $ (0.03)
        
      
      
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Shares used in computing net loss per share:
        
        
        
        
        
        
        
        
        
      
      
        
          Basic
        
        
        
        
          8,515,824 
        
        
        
        
          7,766,574 
        
      
      
        
          Diluted
        
        
        
        
          8,515,824 
        
        
        
        
          7,766,574