KENOSHA, WI--(Marketwired - Feb 28, 2014) - Pacific Sands, Inc. (
The company announced net sales for the three months ended December 31, 2013 of $727,732 and a gross profit of $295,911 compared with net sales of $431,153 and gross profit of $166,471 for the three months ended December 31, 2012. For the six months ended December 31, 2013, the company reported net sales of $1.27 million and gross profit of $749,030 compared with $863,995 and $481,224, respectively, for the six months ended December 31, 2103.
Pacific Sands reported a net loss of $61,574 or a net loss of $19,997 on an adjusted EBITDA basis in fiscal second quarter 2014 compared with a net loss of $96,580 or $0.00 per diluted share in fiscal second quarter 2013. For the six months of fiscal 2014, the company reported a net loss of $60,776 or $8,625 on an adjusted EBITDA basis compared with a net loss of $109,014 or $0.00 per diluted share for the six months of fiscal 2013.
"Our accelerating sales and expanding gross profit reflect the continuing acceptance of our products, increased orders from current customers, and our marketing, branding and sales initiatives that are winning new customers," said Michael Michie, President and CEO. "As in fiscal second quarter 2013, we ramped up our marketing efforts prior to the start of calendar year 2014. This was reflected in significant selling and administrative expenses, but was an important investment."
He noted the company is operating more efficiently and productively than ever before, thanks to investing in equipment and expanded, scalable manufacturing processes and volume-based pricing of raw materials.
"Our continued attention to balance sheet management and cost-effectively funding operations is one reason we are very pleased to announce the appointment of Judson Just, CFA, as Chief Financial Officer, a role I have been handling for the past three years in addition to my CEO duties," said Michie. "Judson's depth of experience as a former president of a wholesale distributor, and his many years in financial services industry, is a perfect fit to help our business identify options to finance our operations and achieve our long term goals."
Michie concluded: "As we continue to drive our top line and benefit from manufacturing and supply efficiencies, we were able to expand our gross margin to 41% in the first six months of fiscal 2014 from 39% in the comparable period of fiscal 2013. We will seek opportunities to manage financing related expenses in our drive to flow more cash to the company's bottom line."
About The Company
Pacific Sands, Inc. (www.pacificsandsinc.com) 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 earned a third place finish in the "Best Green Product" category at the International Pool and Spa show held November 2012 in New Orleans. In 2011, the company was recognized by a Milwaukee-based business publication as the fastest growing public company in Wisconsin. 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.
NON-GAAP Financial Measures: This release contains a reconciliation of adjusted EBITDA to net income (loss), the most directly comparable GAAP measure.
The Company, as is common in its industry, uses adjusted EBITDA as a measure of performance to demonstrate earnings exclusive of interest and non-cash events. The Company, in its daily management of its business affairs and analysis of its monthly, quarterly and annual performance, makes its decisions based on cash flows, not on the amortization of assets obtained through historical activities. The Company cannot affect the amortization of the intangible assets to any material degree, and therefore uses adjusted EBITDA as its primary management guide. Since an outside investor may base their evaluation of the Company's performance based on the Company's net income (loss) and not its cash flows, there is a limitation to the adjusted EBITDA measurement. Adjusted EBITDA is not, and should not be considered, an alternative to net income (loss), income (loss) from operations, or any other measure for determining operating performance of liquidity, as determined under accounting principles generally accepted in the United States (GAAP). The most directly comparable GAAP reference in the Company's case is the removal of interest, depreciation, amortization, taxes and other non-cash expense. In assessing the overall health of its business for the years ended December 31, 2013 and 2012 and the nine months ended September 30, 2013, the Company excluded items in the following general category described below:
Stock-based compensation: The Company believes that because of the variety of equity awards used by companies, varying methodologies for determining stock-based compensation and the assumptions and estimates involved in those determinations, the exclusion of non-cash stock-based compensation enhances the ability of management and investors to understand the impact of non-cash stock-based compensation on our operating results. Further, the Company believes that excluding stock-based compensation expense allows for a more transparent comparison of its financial results to the previous year.
The non-GAAP financial measure described above, and used in this press release, should not be considered in isolation from, or as a substitute for, a measure of financial performance prepared in accordance with GAAP. Further, investors are cautioned that there are inherent limitations associated with the use of the non-GAAP financial measure as an analytical tool. In particular, the non-GAAP financial measure is not based on a comprehensive set of accounting rules or principles and many of the adjustments to the GAAP financial measure reflect the exclusion of items that are recurring and will be reflected in the Company's financial results for the foreseeable future. The Company compensates for these limitations by providing specific information in the reconciliation included in this press release regarding the GAAP amounts excluded from the non-GAAP financial measure. In addition, as noted above, the Company evaluates the non-GAAP financial measure together with the most directly comparable GAAP financial information.
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.
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