DENVER, May 1 /PRNewswire-FirstCall/ -- XELR8 Holdings, Inc. (Amex: BZI), a provider of liquid nutritional, functional foods, beverages and nutritional supplements, today announced its financial results for three months ended March 31, 2008.
Total revenue for the first quarter ended March 31, 2008 was $1.6 million, an 82% increase compared to total revenue of $0.9 million for the fiscal year ended March 31, 2007. Gross profit grew to $1.2 million for the three months ended March 31, 2008, up 115% from $0.6 million in the prior year period. Gross margin in the quarter was 77%, an improvement of 12%, from 65% same quarter one year ago, due to increased sales of Bazi, which carries a higher gross margin compared to the legacy products. Net loss for the three months ended March 31, 2008, decreased 43% to $0.75 million, or $(0.05) per share, compared to a loss of $1.4 million, or $(0.13) per share, in the prior year.
The Company's balance sheet continues to remain strong. As of March 31, 2008, cash and cash equivalents were approximately $2.5 million, which includes the proceeds from the $0.5 million financing completed during the quarter. Total shareholders' equity at the three months ended March 31, 2008 was $2.2 million and the Company remains debt free.
Mr. John Pougnet, Chief Executive Officer of XELR8, commented, "I am pleased to report another record revenue quarter. Bazi continues to gain traction in the marketplace and showed major improvements partially due to our successful gathering of distributors in February at our national event as well as new sales aids and incentives offered. In the first quarter sales of Bazi rose approximately 138% from same period one year ago, to $1.4 million, or an increase of $0.8 million. Bazi represented 89% of the Company's total sales in the quarter versus 68% last year as customers favor the convenience and simplicity Bazi offers them."
Mr. Pougnet continued, "The Company's main driver in the near-term is to continue to focus our efforts on growing sales of Bazi, which has shown tremendous growth in the last year, when it was first launched. As of March 31, 2008, we had 9,044 participants nationwide marketing Bazi, which was a 7.5% increase since our last tally of 8,416 participants which was as of February 29, 2008, partially due to the successful distributor convention in Las Vegas. Since then, we continue to remain in close contact with our distributors to obtain constant feedback as well as assist them in building their business as well. Recently we have offered new incentives and bonus features and conducted regional 'Go Diamond' events, in six major cities nationwide."
"Our operating plan for 2008 remains on target and is focused on the continued growth and market penetration of Bazi by increasing the number of independent distributors and customers, which will help drive revenues and improve gross profit. Our cash burn has been diminished and the visibility to produce positive cash flow is vivid and within reach in the coming quarters," concluded Mr. Pougnet.
Additionally, XELR8 and its liquid nutritional drink "Bazi" were featured on TheStreet.com's video segment entitled "Direct Selling is So Money" on Wednesday, April 30th. In the segment XELR8 distributor Emma Stith was interviewed along with Sandy Greenberg, distributor advocate and XELR8 founder. You can view the segment by cutting and pasting this url into your browser: http://www.thestreet.com/_yahoo/video/strategysession/10414473.html?cm_ven=YAH OO&cm_cat=FREE&cm_ite=NA#10414473
There will be a conference call today at 11:30 a.m. ET with the investment community, featuring John Pougnet, Chief Executive Officer of XELR8 Holdings, Inc. Interested parties may participate in the call by dialing 877-407-8293; international callers dial 201-689-8349. In addition, the replay of the conference call will be available approximately two hours after the call has ended. The replay can be accessed at: http://www.xelr8tools.com/Media/ConfCall050108.mp3 and will be archived for 30 days.
About XELR8 Holdings, Inc.
XELR8 Holdings, Inc. is a provider of nutritional foods and beverages designed to help enhance physical health and overall performance. XELR8 has developed a comprehensive line of nutritional supplements and functional foods designed in systems that are easy to take, simple to understand, and conveniently fit within a lifestyle. These include the Company's Eat/Drink/Snack System; Peak Performance System; and its newest market entry, Bazi(TM), a powerful, concentrated, antioxidant (Vitamins A, C & E) nutritional drink packed with eight different super fruits and berries, including the Chinese jujube plus 12 vitamins and 68 minerals, providing all the daily vitamins and minerals you need in a single, convenient, one-ounce shot.
XELR8's commitment to quality, science and research has earned the Company a loyal following of over 350 world-class athletes and an elite list of endorsers, such as 3-time World Series Champion Curt Schilling, five-time Cy Young Award Winner Randy Johnson; Super Bowl Champions Mike Alstott and Lawyer Milloy; professional football star Cadillac Williams; Olympians Briana Scurry and Caroline Lalive; Stanley Cup Winner Blake Sloan; and PGA Tour Professional Tom Pernice, Jr. XELR8 products are only available through independent distributors located throughout the nation. For more information about XELR8, please visit www.xelr8.com or www.drinkbazi.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including prospects for XELR8's distribution network. Actual results may differ from those discussed in such forward-looking statements. These forward-looking statements include risks and uncertainties that include the Company's ability to attract and retain distributors; changes in demand for the Company's products; changes in the level of operating expenses; changes in general economic conditions that impact consumer behavior and spending; product supply; the availability, amount, and cost of capital for the Company; and the Company's use of such capital. More information about factors that potentially could affect the Company's financial results is included in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-KSB for the year ended December 31, 2006 and all subsequent filings. Certain statements in this release regarding the Company's agreements are in accordance with the guidelines established by the Federal Trade Commission for endorsements in advertising.
SOURCE XELR8 Holdings, Inc.