AMS First-Quarter 2000 Revenues Increase 59.5 Percent.Business Editors & Health/Medical Writers OKLAHOMA CITY--(BW HealthWire)--May 10, 2000 Advantage Marketing Systems, Inc. ("AMS AMS - Andrew Message System ") (AMEX AMEX See: American Stock Exchange :AMM AMM Autorisation de Mise sur le Marche (French) AMM Autorisation de Mise sur le Marché (French: Commission of Marketing Authorization) AMM ASEAN Ministerial Meeting AMM American Metal Market ) announced net income for the quarter of $306,716, or seven cents a share, compared to $230,431, or six cents a share, in the same period in the prior year. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight increased 59.5 percent to $7,003,936 in the current quarter, compared to $4,391,930 in the same period in the prior year. AMS Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. John W. Hail pointed out that the Company's dramatic increase in net sales was primarily the result of expansion of the Company's network of independent distributors from 43,300 at March 31, 1999, to 71,700 at March 31, 2000. Commenting on the outstanding results, Mr. Hail said: "At this rate we are firmly on track to meet our goal of $100 million in sales by 2002. It is no wonder that our stock has received two buy recommendations this year." Mr. Hail commented on the Company's balance sheet as "remaining very strong." He reported that the Company had cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has of $4,176,429 at March 31, 2000, and working capital of $2,313,650. Its ratio of current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. to current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. stood at 2.8 to one. Shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. amounted to $9,975,861, or 87.4 percent of total assets. Long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. in the form of capital lease obligations totaled just $173,384. AMS markets more than 100 natural nutritional supplements Nutritional Supplements Definition Nutritional supplements include vitamins, minerals, herbs, meal supplements, sports nutrition products, natural food supplements, and other related products used to boost the nutritional content of the diet. , weight management products, skin and hair care products and cosmetics based on herbal-based proprietary product formulations. The Company's products are distributed by more than 71,700 independent distributors. For more information, visit the Company's web site at www.amsonline.com. Certain statements in this release may constitute "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. Certain, but not necessarily all, of such forward-looking statements can be identified by the use of forward-looking terminology such as "anticipates," "believes," "expects," "may," "will," or "should" or other variations thereon, or by discussions of strategies that involve risks and uncertainties. The actual results of the Company or industry results may be materially different from any future results expressed or implied by such forward-looking statements.
ADVANTAGE MARKETING SYSTEMS, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE PERIODS ENDED MARCH 31, 2000, AND 1999
(UNAUDITED)
Three Months Ended
March 31,
2000 1999
Net sales $7,003,936 $4,391,930
Cost of sales 4,692,002 3,013,167
Gross profit 2,311,934 1,378,763
Marketing, distribution and
administrative expenses 1,920,769 1,078,285
Income from operations 391,165 300,478
Other income:
Interest, net 89,401 70,946
Other income 14,137 --
Total other income 103,538 70,946
INCOME BEFORE TAXES 494,703 371,424
TAX EXPENSE 187,987 140,993
NET INCOME $ 306,716 $ 230,431
Net income per common share $ .07 $ .06
Net income per common share --
assuming dilution $ .05 $ .05
Weighted average common shares
outstanding 4,191,772 4,141,014
Weighted average common shares
outstanding -- assuming dilution 6,163,697 4,488,787
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