DENVER, May 1 XELR8 Holdings, Inc. (Amex: BZI),a provider of liquid nutritional, functional foods, beverages and nutritionalsupplements, today announced its financial results for three months endedMarch 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 yearended March 31, 2007. Gross profit grew to $1.2 million for the three monthsended 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% samequarter one year ago, due to increased sales of Bazi, which carries a highergross margin compared to the legacy products. Net loss for the three monthsended 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, whichincludes the proceeds from the $0.5 million financing completed during thequarter. Total shareholders' equity at the three months ended March 31, 2008was $2.2 million and the Company remains debt free.
Mr. John Pougnet, Chief Executive Officer of XELR8, commented, "I ampleased to report another record revenue quarter. Bazi continues to gaintraction in the marketplace and showed major improvements partially due to oursuccessful gathering of distributors in February at our national event as wellas new sales aids and incentives offered. In the first quarter sales of Bazirose approximately 138% from same period one year ago, to $1.4 million, or anincrease of $0.8 million. Bazi represented 89% of the Company's total sales inthe quarter versus 68% last year as customers favor the convenience andsimplicity Bazi offers them."
Mr. Pougnet continued, "The Company's main driver in the near-term is tocontinue to focus our efforts on growing sales of Bazi, which has showntremendous growth in the last year, when it was first launched. As of March31, 2008, we had 9,044 participants nationwide marketing Bazi, which was a7.5% increase since our last tally of 8,416 participants which was as ofFebruary 29, 2008, partially due to the successful distributor convention inLas Vegas. Since then, we continue to remain in close contact with ourdistributors to obtain constant feedback as well as assist them in buildingtheir business as well. Recently we have offered new incentives and bonusfeatures and conducted regional 'Go Diamond' events, in six major citiesnationwide."
"Our operating plan for 2008 remains on target and is focused on thecontinued growth and market penetration of Bazi by increasing the number ofindependent distributors and customers, which will help drive revenues andimprove gross profit. Our cash burn has been diminished and the visibility toproduce positive cash flow is vivid and within reach in the coming quarters,"concluded Mr. Pougnet.
Additionally, XELR8 and its liquid nutritional drink "Bazi" were featuredon TheStreet.com's video segment entitled "Direct Selling is So Money" onWednesday, April 30th. In the segment XELR8 distributor Emma Stith wasinterviewed along with Sandy Greenberg, distributor advocate and XELR8founder. You can view the segment by cutting and pasting this url into yourbrowser:http://www.thestreet.com/_yahoo/video/strategysession/10414473.html?cm_ven=YAHOO&cm_cat=FREE&cm_ite=NA#10414473
There will be a conference call today at 11:30 a.m. ET with the investmentcommunity, 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 theconference call will be available approximately two hours after the call hasended. The replay can be a