AMS Health Sciences on Profitable Track

OKLAHOMA CITY—AMS Health Sciences Inc. (AMEX:AMM) reported positive operating profits of $19,401 for its first quarter, a significant improvement over a $1.3 million operating loss logged in the same quarter last year. Net sales decreased 41.5 percent to $2.4 million, attributed to the effects of a free trial program in first quarter 2005, which increased sales but suffered cancellations at the end of customers’ free-trial period. However, cost of sales decreased to 67 percent from 88 percent posted a year ago, which was also linked to the free-trial program. The quarter also benefited from reduced marketing and administrative costs, which were more than halved.

“To say that we are proud to announce an operating profit is an understatement,” said Jerry W. Grizzle, president and chief executive officer (CEO).“We have focused on getting our expenses back in alignment with our sales levels, eliminating non-producing assets and concentrating on driving sales and new associate membership.” He added even taking into account the $335,715 allowance from the discontinued operations of Heartland Cup, AMS (www.amsonline.com) lowered its net loss per share to $0.04 from $0.19 lost a year ago.

“Our objectives have been to return the company to profitability, divest ourselves of non-core businesses, retain our American Stock Exchange listing and increase shareholder value,” said Grizzle. “I think our first quarter results indicate that we are on target to reach our objectives.”