MATAWAN, NJ--(Marketwire - May 2, 2012) - PacificHealth Laboratories, Inc. (OTCQB: PHLI) (OTCBB: PHLI), a leading sports nutrition company, today reported that revenues increased to $1,750,939 in the first quarter of 2012 from $1,731,611 for the same period in 2011. The sports performance portion of the business increased approximately 2.5% year over year. The Company reported a net loss of ($39,849), or $0.00 per share, for the quarter ended March 31, 2012 versus net income of $27,230, or $0.00 per share, for the same period in 2011. The first quarter of 2012 included approximately $55,000 in expenses as part of the Company's investment in internet and social marketing campaigns.

Fred Duffner, President and CEO of PacificHealth Laboratories, said, "We have focused our efforts in the first quarter on expanding our audience, improving branding, driving ecommerce sales, and on continued support of new products. To that end during the first quarter:

  • We launched our new web site in March. With a completely new look, video features and testimonials, and added customer friendly options, we are already seeing positive results. March traffic was the highest in history with double the visits of March 2011. Most importantly, 82% were new visitors.
  • We began our PPC (Pay Per Click) campaign in March and generated almost 2 million impressions. Twitter followers were up 136% while our Twitter Reach was recently over 240,000, up from 65,000 in 2011. Our YouTube uploads increased from 800 at the end of 2011 to over 15,000 in March.
  • We are already seeing the impact of these efforts on ecommerce sales. Although these initiatives were launched in March, YTD ecommerce sales for the first quarter are up 32% year over year.
  • We began the relaunch of ACCEL GEL®, ACCELERADE™, and ENDUROX R4® with new "All Natural Formulas," and a more cohesive brand look across the entire line and contemporary graphics. The new ACCEL GEL shipped in March and we will complete the transition across all the brands in the second quarter.
  • We completed several new studies with 2ND SURGE® showing that this product is highly effective in extending muscle endurance, improving reaction time, and decreasing brain fatigue. The results of these studies are now being incorporated into our advertising and web programs."

Mr. Duffner concluded, "We also showed a modest increase in revenues in the first quarter which is traditionally one of our slower quarters prior to the start of the endurance season. We are very pleased with the key branding and consumer messaging changes we were able to implement in just 3 months. I believe these initiatives will support our future growth and success."

About PacificHealth:
PacificHealth Laboratories, Inc. (OTCQB: PHLI) (OTCBB: PHLI), a leading nutrition technology company, has been a pioneer in discovering, developing and commercializing patented, protein-based nutritional products that stimulate specific peptides involved in appetite regulation and that activate biochemical pathways involved in muscle performance and growth. PHLI's principal areas of focus include sports performance and weight loss. To learn more, visit www.pacifichealthlabs.com.

Notice: This news release and oral statements made from time to time by Company representatives concerning the same subject matter may contain so-called "forward-looking statements." These statements can be identified by introductory words such as "expects," "plans," "will," "estimates," "forecasts," "projects," or words of similar meaning and by the fact they do not relate strictly to historical or current facts. Forward-looking statements frequently are used in discussing new products and their potential. Many factors may cause actual results to differ from forward-looking statements, including inaccurate assumptions and a broad variety of risks and uncertainties, some of which are known, such as general economic conditions, consumer product acceptance and competitive products, and others of which are not. No forward-looking statements are a guarantee of future results or events, and one should avoid placing undue reliance on such statements.

SELECTED FINANCIAL DATA:

   
PACIFICHEALTH LABORATORIES, INC.  
STATEMENTS OF OPERATIONS  
FOR THE THREE MONTHS ENDED MARCH 31, 2012 AND 2011  
(UNAUDITED)  
             
    Three Months  
    Ended March 31,  
    2012     2011  
Revenues:                
  Net product sales   $ 1,750,939     $ 1,731,611  
                 
Cost of goods sold     1,006,769       960,992  
                 
Gross profit     744,170       770,619  
                 
Operating expenses:                
  Sales and marketing     196,413       190,431  
  General and administrative (Includes related party consulting of $49,145 and $43,000, respectively)    
566,243		      
536,984		  
  Research and development     17,048       14,817  
      779,704       742,232  
                 
(Loss) income before other (expense) income and provision for income taxes    
(35,534		 )    
28,387		  
                 
Other (expense) income:                
  Other income     -       2,100  
  Interest income     113       152  
  Interest expense     (4,428 )     (3,409 )
      (4,315 )     (1,157 )
                 
(Loss) income before provision for income taxes     (39,849 )     27,230  
                 
Provision for income taxes     -       -  
                 
Net (loss) income   $ (39,849 )   $ 27,230  
                 
Basic (loss) income per share   $ 0.00     $ 0.00  
                 
Diluted (loss) income per share   $ 0.00     $ 0.00  
                 
Weighted average common shares - basic     20,871,772       16,665,257  
                 
Weighted average common shares - diluted     20,871,772       16,833,590  
                 
                 
                 
PACIFICHEALTH LABORATORIES, INC.  
BALANCE SHEETS  
(UNAUDITED)  
ASSETS  
   
    March 31,     December 31,  
    2012     2011  
Current assets:                
  Cash and cash equivalents   $ 752,900     $ 745,904  
  Other short-term investments     75,000       75,000  
  Accounts receivable, net     706,409       369,376  
  Inventories, net     701,338       571,403  
  Prepaid expenses     105,161       91,479  
    Total current assets     2,340,808       1,853,162  
                 
Property and equipment, net     107,402       26,729  
                 
Deposits     10,895       10,895  
                 
      Total assets   $ 2,459,105     $ 1,890,786  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY        
                 
Current liabilities:                
Line of credit   $ 37,500     $ 37,500  
Notes payable     20,691       19,679  
Accounts payable and accrued expenses (Includes related party of $19,586 and $32,000, respectively)    
1,130,535		      
546,712		  
Deferred revenue     61,554       56,170  
    Total current liabilities     1,250,280       660,061  
                 
Stockholders' equity:                
  Common stock, $.0025 par value; authorized 50,000,000 shares; issued and outstanding: 20,871,772 shares     52,179       52,179  
  Additional paid-in capital     21,331,268       21,313,319  
  Accumulated deficit     (20,174,622 )     (20,134,773 )
                 
      1,208,825       1,230,725  
                 
      Total liabilities and stockholders' equity   $ 2,459,105     $ 1,890,786  
                 
                 
                 

Contact:
Stephen Kuchen
732-739-2900, x603
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