Pacific Sands, Inc. Reports Expanded Marketing Investment in Fiscal 1Q 2013

Year-Over-Year Quarterly Net Loss Declines by 70% as Company Targets Profitable Year

Marketwired

KENOSHA, WI--(Marketwire - Nov 15, 2012) - Pacific Sands, Inc. (OTCQB: PFSD) (PINKSHEETS: PFSD) (www.pacificsands.biz), which manufactures environmentally friendly, non-toxic liquid and powder cleaning, laundry, and water treatment products, today announced financial results for fiscal first quarter 2013, the ninth consecutive quarter following the company's restructuring efforts that began June 1, 2010. As previously reported, sales for the first fiscal quarter ended Sept 30, 2012 increased 22.7% to $432,842 from last year's $352,830. The net loss for the quarter was $26,994, or a 70% reduction compared with a loss of $88,840 in the prior year's quarter.

"Although our first quarter net loss represented one of the company's best first quarters in its history, we remain focused on profitability in fiscal 2013," said Michael Michie, President and CEO. "We made the decision to invest an amount nearly identical to the quarterly loss in advertising and promotion leading into the upcoming pool and spa selling season. Last year, we also invested in business development that we believe played a part in our recording record sales for the product line and helped boost overall company sales by 33% in the June 30, 2012 quarter.

"Our marketing expenditures are very targeted. With the momentum we have in growing our sales and visibility, we feel strategic investments in marketing will generate significant rewards." He noted the company's promotional efforts paid off with a third place finish in the "Best Green Product" category at the International Pool and Spa show held November 6-8, 2012 in New Orleans.

The company also reported progress during the most recent quarter in the effort to strengthen the balance sheet as it reduced total corporate debt outstanding by 4.5% from June 30, 2012. During the same period, the company invested approximately $68,000 in fixed assets to increase production capacity and lower production costs.

Despite the net loss for the quarter, the operating activities of the company generated a positive net cash flow. This, plus the improved financial strength of the company, facilitated the repurchase of 297,963 shares of the company's common stock in a private transaction for $20,857. Pacific Sands re-issued 200,000 shares to retire the last $20,000 of outstanding convertible debt and the remaining 97,963 shares were retired. This marks the first time in over a decade that the company has been able to reduce both its total debt outstanding and the number of shares outstanding in the same quarter.

Michie commented: "The true significance of our debt reduction and improved working capital position is that during the past several years, Pacific Sands has generated rapidly growing revenue that has enabled the company to change its profile from a debt-laden startup to a well-established and growing company able to flow cash to the bottom line and make strategic capital investments rather than having to service debt. This is a major watershed for Pacific Sands."

For the four quarters ending Sept. 30, 2012, sales were $1,963,100, an increase of 75% over the four quarters ending June 30, 2010 when our corporate restructuring began. Over that same period, the amount of inventory and accounts receivable the company holds increased by more than $270,000.

"We were recognized last year as the fastest growing public company in Wisconsin," Michie stated, "and it is this continuing need for additional working capital to support our double digit growth rates that is the biggest challenge facing the company. We believe we can leverage our improving balance sheet to support working capital requirements without further substantial dilution in shareholder equity.

"We appreciate the loyalty and perseverance of our long-term shareholders who have expressed strong belief in the company's products and concept. We also believe that in this time of economic and market uncertainty, we have demonstrated the ability to consistently build value, even if it hasn't yet been demonstrated in the company's market valuation. We're very excited about the platform Pacific Sands has built, and will continue to focus on making this a success story for our shareholders."

About The Company
Pacific Sands, Inc. (www.pacificsands.biz) is a rapidly growing company that develops, markets and sells unique non-toxic, earth-, health- and child-friendly products for cleaning, personal hygiene, and water maintenance applications. The company's ecoone® Spa Treatment system was named a "Top 50 product for 2008" by Pool and Spa News. Wal-Mart's Innovation Network awarded one of the company's products the highest "Success Likelihood Score" ever granted in the program's 22-year history.

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:

Michael Michie
President & CEO
262-925-0123
Email Contact

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