AMS Health Sciences, Inc., (AMEX:AMM), today announced a net�loss
for the first quarter 2007 of ($410,339), or ($0.05) per common
(diluted) share, on 8.5 million shares outstanding. This compares
to a net loss of ($242,553), or $(0.03) per common (diluted) share,
on 7.8 million shares outstanding in the first quarter of 2006.
Sales totaled $2,435,342 million for the quarter�compared to sales
of $2,425,474 million for the quarter ended March 31, 2006, an
increase of $9,868 or .41%. Cost of sales in the first quarter of
2007 decreased as a percentage of net sales to 63.92%, compared to
64.53% in the first quarter of 2006. Gross profit improved by
$18,317 in the 2007 first quarter to $878,637 from $860,320 in the
same period of 2006. Gross profit as a percentage of net sales
improved to 36.08% compared to 35.47% in 2006. �This is our second
consecutive quarter of year over year sales and recruiting
increases,� said Dr. Jerry Grizzle, President and CEO. �We have
worked very hard in the last year to clean up our corporate
structure and position the Company for growth and profitability.
Our sales and recruiting numbers are moving in the right direction,
and they represent the last piece to completing our turnaround. In
the first quarter of 2007, our average opening order was $105.93,
compared to an average opening order of $72.82 in the first quarter
of 2006. That is a 45% increase in opening order volume, and is a
direct result of the launch of the new Saba division.� AMS Health
Sciences, Inc., sells more than 60 natural nutritional supplements,
weight management products, and natural skincare products through
independent distributors across the U.S. and Canada. More
information about the Company is available at
http://www.amsonline.com. This press release contains
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934 that represent the Company�s
current expectations and beliefs, including, among other things:
(i) expectations regarding the positive impact of certain strategic
initiatives to contain costs and increase sales; and (ii) the
Company�s plans regarding the rollout of its new saba product line.
The forward-looking statements and related assumptions involve
risks and uncertainties that could cause actual results and
outcomes to differ materially from any forward-looking statements
of views expressed herein. These risks and uncertainties include,
but are not limited to: (a) material decreases in active
associates, or the Company�s failure to execute its strategic
initiatives; (b) regulatory risks associated with the Company�s
nutritional supplements, which could adversely affect the Company
if regulatory scrutiny dampens enthusiasm or the ability of the
Company or its associates to effectively market its products; (c)
any failure of current or planned initiatives or products,
including, among others, the introduction of the saba line of
nutritional supplements to generate interest among associates and
customers and generate sponsoring and selling activities on a
sustained basis; (d) any inability of the Company to obtain
necessary product registrations for its nutritional and personal
care products in a timely manner; (e) adverse publicity related to
the Company�s business, products or industry; and (f) continued
competitive pressures in the Company�s markets. The Company�s
financial performance and the forward-looking statements contained
herein are further qualified by a detailed discussion of associated
risks set forth in the documents filed by the Company with the
Securities and Exchange Commission, including the Company�s Annual
Report on Form 10-KSB. The forward-looking statements set forth the
Company�s beliefs as of the date of this release, and the Company
assumes no duty to update the forward-looking statements contained
in this release to reflect any change. � AMS Health Sciences, Inc.
Consolidated Balance Sheets � March 31, December 31, ASSETS 2007�
2006� (Unaudited) CURRENT ASSETS: Cash $ 223,388� $ 269,726�
Marketable securities, available for sale, at fair value 500,000�
793,183� Receivables 16,653� 44,576� Inventory, net 853,262�
700,664� Other assets 77,368� 77,319� Current assets of
discontinued operations 56,025� 110,521� Total current assets
1,726,696� 1,995,989� RESTRICTED SECURITIES 79,628� 78,723�
RECEIVABLES 28,994� 28,374� PROPERTY AND EQUIPMENT, net 2,684,450�
2,794,393� COVENANTS NOT TO COMPETE and other intangibles, net
305,099� 324,553� OTHER ASSETS 412,957� 457,344� NONCURRENT ASSETS
OF DISCONTINUED OPERATIONS 1,207,926� 1,253,480� TOTAL $ 6,445,750�
$ 6,932,856� LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT
LIABILITIES: Accounts payable $ 724,474� $ 559,920� Accrued
commissions and bonuses 265,761� 268,717� Accrued other expenses
235,553� 400,204� Accrued sales tax liability 235,013� 200,481�
Deferred compensation 97,129� 96,378� Notes payable 507,542�
257,542� Capital lease obligations 97,393� 104,591� Current
liabilities of discontinued operations 302,336� 360,582� Total
current liabilities 2,465,201� 2,248,415� LONG-TERM LIABILITIES:
Notes payable 480,096� 625,220� Capital lease obligations 73,418�
95,527� Deferred compensation 259,012� 281,101� Lease abandonment
liability 5,158� 55,123� Liabilities of discontinued operations
1,489,712� 1,570,359� Total liabilities 4,772,597� 4,875,745�
COMMITMENT AND CONTINGENCIES STOCKHOLDERS' EQUITY Common stock -
$.0001 par value; authorized 495,000,000 shares; issued 9,107,419
and 9,107,419 shares; outstanding 8,515,824 and 8,515,824 shares,
respectively 905� 905� Paid-in capital 23,636,243� 23,609,734�
Notes receivable for exercise of options (31,000) (31,000)
Accumulated deficit (19,300,216) (18,889,749) Total capital and
accumulated deficit 4,305,932� 4,689,890� Less cost of treasury
stock (591,595 shares) (2,632,779) (2,632,779) Total stockholders'
equity 1,673,153� 2,057,111� TOTAL $ 6,445,750� $ 6,932,856� � AMS
Health Sciences, Inc. Consolidated Statements of Operations � Three
Months Ended March 31, 2007� 2006� Net sales $ 2,435,342� $
2,425,474� Cost of sales 1,556,705� 1,565,154� Gross profit
878,637� 860,320� � Marketing, distribution and administrative
expenses: Marketing 282,996� 141,144� Distribution and
administrative 897,465� 689,520� Total marketing, distribution and
administrative expenses 1,180,461� 830,664� Income (loss) from
operations (301,824) 29,656� Other income (expense): Interest and
dividends, net (143,174) 3,842� Other, net 27,005� 59,664� Total
other income (expense) (116,169) 63,506� Income (loss) from
continuing operations before taxes (417,993) 93,162� Income tax
expense (benefit) -� -� Income (loss) from continuing operations
(417,993) 93,162� Discontinued operations Income (loss) from
discontinued operations, net of tax 7,654� (335,715) Net loss $
(410,339) $ (242,553) � Net loss per share: Basic: Income (loss)
from continuing operations $ (0.05) $ 0.01� Income (loss) from
discontinued operations net of tax -� (0.04) Net loss per share $
(0.05) $ (0.03) � Diluted: Income (loss) from continuing operations
$ (0.05) $ 0.01� Income (loss) from discontinued operations net of
tax -� (0.04) Net loss per share $ (0.05) $ (0.03) � Shares used in
computing net loss per share: Basic 8,515,824� 7,766,574� Diluted
8,515,824� 7,766,574�
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