Pacific Sands, Inc. Fiscal 3Q Results Reflecting Sales Growth, Margin Expansion and Continuing Marketing Investment

KENOSHA, WI--(Marketwired - May 22, 2013) -   Pacific Sands, Inc. (OTCQB: PFSD) (PINKSHEETS: PFSD) (www.pacificsands.biz), which manufactures environmentally friendly, non-toxic pool and spa treatment products, and liquid and powder cleaning, laundry, and personal care products, discussed financial results for the company's fiscal third quarter ended March 31, 2013.

The Company recorded a net loss of $36,113 or $0.001 loss per share for the three months ended March 31, 2013, as compared to a net loss of $80,235 or $0.001 loss per share for the three months ended March 31, 2012. As previously announced, revenues for the three months ended March 31, 2013 increased 34% to $573,335 compared with net sales of $428,696 for the three months ended March 31, 2012. Cost of sales in fiscal third quarter 2013 was $366,067 compared with $272,695 for the same period in the previous fiscal year.

"As we maintain our focus on efficient operation and volume purchasing, revenue growth has outpaced our cost of sales," noted Michael Michie, President and CEO. "While our yearly quarter-over-quarter gross margin was consistent at 36%, our nine-month 2013 gross margin was 41% compared with 38% in the nine months of fiscal 2012. This improvement reflects in good part the increased efficiencies of our Kenosha manufacturing facility and more attractive raw material costs."

For the three months ended March 31, 2013 and 2012, selling and general administrative expenses were $234,981 and $227,300, respectively. This slight increase represents ongoing investment in sales and marketing, particularly at trade shows, to promote the company's branded products. Interest expense for the three months ended March 31, 2013 was $8,579 compared to $3,501 for the three months ended March 31, 2012, primarily reflecting increased borrowing to fund operational growth.

The company recorded a net loss of $145,127 or $0.002 loss per share for the nine months ended March 31, 2013. This compares to a net loss of $60,547 or $0.001 loss per share for the nine months ended March 31, 2012. Michie said the company's committed investment in advertising and promotion, while impacting earnings, has generated significant positive results. In the fiscal nine months of 2013 and 2012, selling and general administrative expenses were $711,714 and $581,097, respectively.

Michie explained: "With our focus on capitalizing on market opportunities and building revenue and volume, we feel this is our best and most effective use of cash. These efforts have had a direct and positive impact on sales, generating sales leads, building Pacific Sands' visibility and enhancing our reputation. In past years, we have needed to issue additional shares of common stock to support our marketing, and we are now able to fund our marketing outreach primarily with cash generated by operations.

"A key goal for the Pacific Sands has been to achieve profitability, and it's important to note that without our increased investment in marketing, we would have generated earnings in the quarter. To take our company to the next level, lay the groundwork for continued sales growth, and create greater long-term shareholder value, this commitment to marketing is imperative."

For the nine months ended March 31, 2013, net sales were $1.44 million, an increase of 20% over net sales of $1.20 million for the nine months ended March 31, 2012. This increase was due to growth in private label product sales. For the nine months ended March 31, 2013, cost of sales was $847,291 compared with $743,743 for the same period in the previous fiscal year. Interest expense for the nine months ended March 31, 2013 was $23,631 compared to $16,810 for the nine months ended March 31, 2012.

"We entered fiscal fourth quarter with a strong a backlog of unfilled sales and increased sales levels from existing customers," said Michie. "We expect to finish strong in fiscal 2013. Our products have been well-received and we have the capacity to cost-effectively grow volume and meet future demand."

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 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.

 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.