Contact Information: Contact: Investor Relations Andrew Barwicki 516-662-9461
PFSD Reports Record Fourth Quarter and Annual 2007 Results -- Pacific Sands, Inc.
Company Shows Profitable 4th Quarter for Second Consecutive Year on 12th Consecutive Quarter of Same-Quarter Sales Growth
| Source: Pacific Sands, Inc.
RACINE, WI--(Marketwire - October 12, 2007) - Pacific Sands, Inc. (OTCBB : PFSD ), a leading
provider of environmentally friendly pool and spa care products, is pleased
to report the company's 12th quarter of same-quarter sales growth, a
profitable fourth quarter and record annual sales.
Net sales for the year ended June 30, 2007 increased 37.5% to $596,774
compared to $433,918 for the previous fiscal year. Gross profit for the
fiscal year ending June 30, 2007 was $366,050 up 46% as compared to
$250,737 for the previous fiscal year. Gross profit percentage in fiscal
2007 increased to 61.3% compared to 57.8% in fiscal 2006.
Net sales for the three months ended June 30, 2007 increased 31.6% to
$219,162, as compared to $166,531 for the same period last year. Net
earnings for the quarter were $25,011 as compared to $38,463 for the same
period last year.
The company's net loss for fiscal year 2007 was $551,097 (all of which was
reported in the first three fiscal quarters), or $0.017 per share compared
to $310,211, or $0.010 per share, for fiscal 2006. The increase in losses
was primarily due to non-cash expenses, most notably the stock based
compensation in the form of options issued to employees and directors of
the Company. While options in OTC stocks have no actual cash market value,
the adoption of SFAS 123(R) during fiscal 2006 requires the Company to
measure the options using a fair market value methodology. The Company used
the Black-Sholes method which utilizes, among other variables, stock price
volatility to arrive at the underlying fair value of the option at the date
of grant. The Black-Sholes calculation resulted in approximately $134,000
of stock based compensation expenses for the year. In addition, a portion
of net loss increases was also attributable to higher accounting and legal
fees incurred during the current fiscal year.
Mick Wynhoff, Pacific Sands CEO, stated, "Our strong fourth quarter capped
another successful year for Pacific Sands. We increased momentum and
generated consistent growth in revenues throughout fiscal year 2007, which
we believe positions us well for the remainder of this actual year and
beyond. I continue to be bullish on the prospects of the pool, spa and
environment-friendly products industries, and the strength of our products
in meeting the needs of consumers.
"As we continue to partner with leading manufacturers of pools and spas, we
believe our market penetration will increase and we can expect to gain
brand recognition within a very fragmented industry. We continue to improve
our manufacturing process and streamline costs. The positive results from
our initiatives confirm the validity of our strategic decisions and we
expect to continue to improve on our future operating results," concluded
Mr. Wynhoff.
For the complete 10-KSB filing please visit www.sec.gov or send an email
request to michael.michie@pacificsandsinc.com to receive a printed copy.
About Pacific Sands
Pacific Sands, Inc., promoting earth, health, pet and kid-friendly
chemistry solutions, is publicly traded on the NASDAQ OTCBB. The company's
core ecoONE® chlorine free pool, spa and nontoxic household cleaning
product lines deliver earth, health and kid-safe alternatives. More
information: www.pacificsands.biz.
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.