Pacific Sands Marks Record Third Quarter Sales and Gross Profits - Fiscal 3rd Quarter Report to be Filed Today
Monday May 15, 9:15 am ET
Quarterly Sales Up 143% & 186% - Gross Profit up 207% & 217% for the 3 and 9 Months Ending March, 31, 2006 Over Same Period Previous Fiscal Year
RACINE, Wis.--(BUSINESS WIRE)--May 15, 2006--Pacific Sands, Inc. (OTCBB:PFSD - News) is pleased to announce that the company has filed its 10Q-SB for the quarter ending March 31st, 2006
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Fiscal Third Quarter Financial Highlights: (for the full report visit: www.pacificsandsinc.com)
- Net sales for the quarter of $136,805, an increase of 143% over the same period in 2005. Net sales for the 9 month period ending March 31, 2006 of 267,387, an increase of 186% over the same period in 2005.
- Gross profits for the quarter increased 207% to $79,199 vs $25,732 for the same period in 2005. Gross profits for the 9 month period ending March 31, 2006 increased 217% to $149,781 versus $47,278 for the same period in 2005.
- During the three months ending March 31, 2006, gross profits (net sales minus cost of goods sold) paid for approximately 41.5% of the company's selling and administrative expenses, up substantially from 23.5% for the same period the previous fiscal year. For the nine months ending March 31, 2006, gross profits paid for approximately 30% of the company's selling and administrative expenses, up 100% from 15% for the same period the previous fiscal year.
- For the three months ending March 31, 2006, selling and general administrative expenses were $188,229 up 58% from $109,660 for the three months ending March 31, 2005. For the nine months ending March 31, 2006, selling and general administrative expenses were $490,638 up 63% from $312,787 from the nine months ending March 31, 2005.
- While the increase in expenses is substantially less than the increase in revenues, a significant portion of expenses reflect the write-off of what management now believes to be an noncollectable debt owed to the company from an invoice generated by former management. For the three months ending March 31, 2006 the company wrote off the final $23,571 against this bad debt and, in the nine months ending March 31, 2006 the company wrote off a total of $59,551. The invoice is now fully written off and no further write downs from this invoice will reflect in future financial results.
- For the nine months ending March 31, 2006 the company spent $36,041 in advertising and promotional costs over $15,953 for the nine months ending March 31, 2005, a 126% increase.
Pacific Sands CEO Michael Wynhoff commented, "These results are very exciting, and reaffirm that our strategy of responsible reinvestment for growth is a good one for the company and its investors. Our 'winning streak' of period-over-period growth remains unbroken since our management team took over the company in 2004. We are continuing to drive the company towards profitability."
Pacific Sands CFO Michael Michie further commented, "Our ability to consistently and repeatedly deliver these improved results clearly indicates that our EcoOne(TM) product families are gaining traction and momentum in the marketplace. These results are particularly gratifying in that they do not reflect any revenue from one of our newest initiatives, the Hawkeye Manufacturing agreement."
Pacific Sands' SEC Form 10-QSB for the three months ended March 31, 2006, will be accessible via our corporate website www.pacificsandsinc.com
Three months ended Nine months ended
March 31, March 31,
2006 2005 2006 2005
NET SALES $136,805 $56,528 $267,387 $93,345
COST OF SALES 57,606 30,796 117,606 46,067
GROSS PROFIT 79,199 25,732 149,781 47,278
SELLING AND
ADMINISTRATIVE EXPENSES 188,229 109,660 490,638 312,787
LOSS FROM OPERATIONS (109,030) (83,928) (340,857) (265,509)
OTHER INCOME (EXPENSES)
Interest expense (2,434) (400) (5,138) (3,400)
Loss on disposal of
assets (2,680)
Gain from restructuring
of related party debt 15,791 15,791
Miscellaneous income 16 476 31 3,366
Total Other Income
(Expenses) (2,418) 15,867 (7,787) 15,757
LOSS BEFORE INCOME TAXES (111,448) (68,061) (348,644) (249,752)
INCOME TAXES - - - -
NET LOSS $(111,448) $(68,061) $(348,644) $(249,752)
BASIC AND DILUTED NET
LOSS PER SHARE $(0.004) $(0.002) $(0.012) $(0.008)
BASIC AND DILUTED
WEIGHTED AVERAGE
SHARES 30,537,094 30,163,975 30,018,273 31,227,328
Safe Harbor Act Disclaimer
The statements contained in this release and statements that the company may make orally in connection with this release that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected in the forward-looking statements, since these forward-looking statements involve risks and uncertainties that could significantly and adversely impact the company's business. Therefore, actual outcomes and results may differ materially from those made in forward-looking statements.
Contact:
Pacific Sands, Inc.
Investor Relations:
JT Ploch, 608-492-8123
www.pacificsandsinc.com
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Source: Pacific Sands, Inc.
