SOURCE: Pacific Sands, Inc.
KENOSHA, WI--(Marketwire - Oct 31, 2012) - Pacific Sands, Inc. (OTCQB: PFSD) (www.pacificsands.biz), which manufactures environmentally friendly, non-toxic liquid and powder cleaning, laundry, and water treatment products, today announced unaudited revenue results for its fiscal first quarter 2013 ended September 30, 2012. The company reported unaudited fiscal first quarter revenue of $432,353 compared with $352,830 in fiscal first quarter 2012. Pacific Sands was named Wisconsin's fastest-growing public company by the Milwaukee Business Journal based on revenue growth in calendar year 2011 compared with calendar year 2010, and total employees.
"We believe the sales gains we continue to achieve across our line of products, combined with successful initiatives during the past two years to reduce the company's debt levels, build working capital, and increase capacity and efficiency with a new facility, position Pacific Sands for growth and profitability in fiscal 2013," said Michael Michie, President and CEO. "Last year's first quarter loss was $88,840, and we anticipate fiscal first quarter 2013 net loss will be significantly lower. Our fiscal first quarter 2013 results will reflect a further reduction of total liabilities during the quarter. In the coming year, greater efficiency, dramatically lower debt servicing expense and robust manufacturing capacity should enable us to flow more of our revenue to the bottom line."
Michie said the company has continued to focus the bulk of its sales efforts on building dealer distribution for its ecoOne® pool and spa treatment products, and on its private label cleaning products business. In addition to marketing its Natural Choices laundry and cleaning products, Pacific Sands formulates, packages and distributes a wide variety of private-label products sold by well known retailers nationwide.
"Pacific Sands has a very efficient and customer-responsive private label manufacturing and distribution business that enables us to fill orders quickly and develop new product formulations for customers from concept to delivery in as little as 30 days," explained Michie. "We manufacture for more than 30 re-label and custom formulation customers, and a number of these are manufacturers that have well-established sales channels of complementary products marketed through national hardware, building supply and consumer chains. This 'big box' sales channel presents a significant opportunity for Pacific Sands.
"While the private label business depends on volume and delivers thinner margins than our branded products, we also incur no expenses related to marketing branded products. Our investment in a new 32,000 square foot Kenosha facility in spring 2012, and in additional manufacturing equipment, has enabled us to accommodate increased demand, provide faster manufacturing turnaround, and drive reduced unit costs and a favorable trend in cost of goods sold."
In fiscal 2012, the company reported a number of positive financial accomplishments. Interest expense declined 82.7% for the year ended June 30, 2012, compared with the prior year. Although total liabilities increased $92,002 from June 30, 2011, to June 30, 2012, interest-bearing debt was reduced and new debt with lower interest rates replaced higher cost loans. In addition, enhanced trade credit facilities allowed for a $69,184 increase in accounts payable with vendors. The company's balance sheet initiatives in fiscal 2012 were reflected in shareholder equity of $123,524 compared with a deficit of $44,981 in fiscal 2011 and a deficit of approximately $1.3 million in fiscal 2010. Working capital position increased to $260,625 at the close of fiscal 2012 compared with $114,945 at the end of fiscal 2011.
For the fiscal year ended June 30, 2012, the company reported record annual revenue of $1.89 million. This sales record was accomplished even with a temporary interruption in production as the company moved to its new leased office, manufacturing, and laboratory facility in a well-located and modern building in Kenosha. The company recorded a net loss of $12,769 for the year ended June 30, 2012 compared to a net income of $113,830 for the year ended June 30, 2011. The 2012 results partially reflected expenses related to debt reduction, investment in plant, property and equipment, and accelerated investment in sales and advertising to support its ecoOne® products.
Michie concluded: "We have positioned the company to take fuller advantage of our continuing success and strong year-over-year revenue growth. Increasingly, we believe customers' buying decisions are being driven by the superior performance of our products against all competing products. Their environmentally friendly formulations are a definite plus, however, consumers don't buy products that don't work. We feel Pacific Sands' products deliver the best of both worlds -- outstanding performance and a natural option.
"The demand for quality cleaning products has been consistent even in challenging economic conditions. People recognize the value of price-competitive products that offer performance without chemicals. We believe the coming year will offer many opportunities to grow and deliver the best performance in Pacific Sands' history."
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.