PacificHealth Laboratories, Inc. (PHLI.OB) Announces Record Net Income and 15% Revenue Growth

QualityStocks would like to highlight PacificHealth Laboratories, Inc. (OTCBB: PHLI). The company is an innovative and leading sports nutrition company that focuses on marketing, developing, and selling premium nutrition products to active consumers seeking to improve their health and performance. Their brands and nutrition tools consist of three discreet platforms: rehydration/energy, recovery, and optimal racing weight and include ForzeGPS, the first scientifically proven appetite management tool created specifically for athletes.

In the company’s news yesterday,

PacificHealth Laboratories, Inc. reported its operating results for the second quarter and six months ended June 30, 2009. Second quarter revenues for this year increased 15% to $2,725,055 compared to the $2,370,429 reported for the same period in 2008. Net income totaled $12,922, or $0.00 per diluted share, compared to a net loss of $146,608, or $0.01 per diluted share, for the same period in 2008.

Sales and marketing expenses rose $209,436, a 85% increase compared to the same period in 2008. This increase was mainly caused by increased spending for a public relations and marketing campaign associated with the launch of ForzeGPS(TM), the company’s new weight management tool. As of June 30, 2009, the company had cash, cash equivalents, and other short-term investments of $857,000 as compared to $811,000 at March 31, 2009 and $1.2 million at December 31, 2008.

“I am pleased with the condition of our business in light of a continued challenging retail and consumer spend environment,” stated Jason Ash, President and Chief Executive Officer of PacificHealth Laboratories. “We reported growth in revenue and profit in Q2 and we are confident we can build from this going forward. Both our core endurance and weight control business sectors grew in Q2, and this improved performance was driven by our new commercial strategy, focused marketing campaigns, and implementation of a new national sales team. PHLI continues to meet its goals in terms of innovation, market expansion and operational efficiency.

“We recently introduced our highly innovative new weight management tool ForzeGPS,” he added. “The continued exposure we are receiving as the ‘Official Bar’ of the 2009 and 2010 Rock ‘n’ Roll marathon series has resulted in more and more people requesting product from their local retailers. This exposure has positively impacted our base business as was demonstrated by our recent announcement that GNC is now selling ACCELERADE(TM) HYDRO(TM) for the first time. The next event in the series, the Rock ‘n’ Roll Half Marathon in Chicago on August 2, is expected to continue to build both distribution and consumer momentum. Operationally, we are beginning to realize the benefits of our cost reduction efforts that we initiated in late 2008 and we expect to see further improvement in the second half of 2009.”

Revenue for the first half of this year increased 8% to $4,420,673 compared to $4,089,804 for the same period in 2008. Net loss totaled $392,543, or $0.03 per diluted share, compared to a net loss of $418,013, or $0.03 per diluted share, for the same period in 2008. Sales and marketing expenses nearly doubled for the six months ended June 30, 2009 compared to the same period in 2008.

Mr. Ash concluded by saying, “The combination of a new sales strategy, the launch of ForzeGPS, and a focus on increasing gross margin and containing G&A expenses, resulted in a solid start to our third quarter. We are encouraged by this positive business momentum and the market acceptance of our new product launches and we look forward to the second half of the year with confidence.”

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Forward-Looking Statement:

This release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All forward-looking statements are inherently uncertain as they are based on current expectations and assumptions concerning future events or future performance of the company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. Risks and uncertainties applicable to the company and its business could cause the company's actual results to differ materially from those indicated in any forward-looking statements.