AMS Third Quarter 2000 Revenues Increase 9.4 Percent.Business Editors OKLAHOMA CITY--(BUSINESS WIRE)--Nov. 7, 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 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 9.4 percent to $6,807,883 in the third quarter compared to $6,223,895 in the same period in the prior year. Net income for the quarter was $95,972, or two cents a share, compared to $396,614, or ten cents Ten Cents has several meanings:
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 Hail, city, Saudi Arabia Hail (hä`ēl, hīl), city (1993 pop. 176,757), N central Saudi Arabia. The city grew because of its location on a pilgrimage route from Iraq to Mecca. pointed out that the Company's increase in net sales was primarily the result of expansion of the Company's network of independent distributors from 54,200 at September 30, 1999, to 77,800 at September 30, 2000. The reduction in earnings for the third quarter was the result of a combination of factors, including an increase in promotional costs of $399,000 designed to increase sales, increased payrolls of $300,000 as staff increases were made to support continuing sales growth and increases in other variable costs due to higher levels of activity. Commenting on results, Mr. Hail said: "With sales increasing at a sustained rate of 9% or greater, we anticipate achieving impressive results over the next two years. It is no wonder that our stock receives buy recommendations." 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 $3,551,920 at September 30, 2000, and working capital of $2,544,455. 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 2.9 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 $10,070,098, or 86.1 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 $265,010. AMS markets more than 100 natural supplements, 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 77,800 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 forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " 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 there·on adv. 1. On or upon this, that, or it. 2. Archaic Following that immediately; thereupon. Adv. 1. thereon - on that; "text and commentary thereon" on it, on that , 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 SEPTEMBER 30, 2000 AND 1999
(UNAUDITED)
Three Months Ended Nine Months Ended
September September
30, 30,
2000 1999 2000 1999
---- ---- ---- ----
Net sales $6,807,883 $6,223,895 $20,815,957 $16,150,491
Cost of sales 4,521,392 4,298,324 13,981,588 11,150,024
--------- --------- ---------- ----------
Gross profit 2,286,491 1,925,571 6,834,369 5,000,467
Marketing,
distribution and
administrative
expenses 2,229,419 1,362,277 6,221,664 3,725,489
--------- --------- --------- ---------
Income from
operations 57,072 563,294 612,705 1,274,978
Other income
(expense):
Interest and dividends,
net 88,915 75,993 248,098 228,765
Other income (expense) 7,326 -- (84,642) --
--------- --------- --------- ---------
Total other income
(expense) 96,241 75,993 163,456 228,765
--------- --------- --------- ---------
INCOME BEFORE TAXES 153,313 639,287 776,161 1,503,743
TAX EXPENSE 57,341 242,673 293,774 533,683
--------- --------- --------- ---------
NET INCOME $ 95,972 $ 396,614 $ 482,387 $ 970,060
========= ========= ========= =========
Net income per
common share $ .02 $ .10 $ .11 $ .23
========= ========= ========= =========
Net income per common
share -- assuming
dilution $ .02 $ .08 $ .08 $ .21
========= ========= ========= =========
Weighted average
common shares
outstanding 4,344,578 4,141,651 4,261,011 4,141,651
========= ========= ========= =========
Weighted average
common shares
outstanding --
assuming dilution 5,118,398 5,194,786 5,679,437 4,708,759
========= ========= ========= =========
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