puraDYN's Net Sales Up 81% for Second Quarter 2002; Sales to Existing and New Customers Both Growing
BOYNTON BEACH, Fla.--Aug. 19, 2002--puraDYN Filter Technologies Inc. (AMEX:PFT), the global by-pass oil filtration system company, today announced significantly improved second quarter and first half 2002 sales results.Highlights:
| -- | Sales to Asplundh, which started purchasing the puraDYN system for its large fleet of trucks and equipment in late 2000, went up approximately 107 percent during the second quarter of 2002 and 184 percent during the first half of the year. |
| -- | Started an aftermarket distribution program with North American Bus Industries' (NABI) parts distribution centers |
| -- | Increased sales to Aggreko plc (LSE:AGK), which is one of the top three worldwide OEM's of mid-range generators for industrial use, during this quarter. |
| -- | Increased global distribution network by 41% |
Net sales increased by 81% to approximately $722,000 for the three months ended June 30, 2002, compared with approximately $399,000 for the same period in 2001. Net sales for the six months ended June 30, 2002 were approximately $1,327,000, an increase of 74% over the comparable period in 2001. The company reported a loss of $0.05 per share for the quarter ended June 30, 2002, compared to a loss of $0.04 for the same period in 2001, and a net loss of $0.10 per share for the six months ended June 30, 2002, compared to the prior year's same-period loss of $0.12 per share.
Kevin G. Kroger, puraDYN's President and Chief Operating Officer, commented, "Results were in line with management expectations. We are very pleased with our top line growth during the first half of 2002, and despite a net loss, the trends are improving. Contributing to this growth was the quality and effectiveness of the puraDYN Filtration System for existing clients and their decision to place larger orders. New marketing efforts to additional domestic and international customers complemented this growth. We are confident that we will continue to see further sales progress and are focused on improving the financial condition of the Company during the second half of 2002."
puraDYN also announced that the company will move to a new property to double the current manufacturing capacity in order to meet the current and anticipated business demands.
About puraDYN Filter Technologies
puraDYN (AMEX:PFT) designs, manufactures and markets the puraDYN(R) By-Pass Oil Filtration System, a unit that continuously cleans lubricating oil; maintains oil viscosity; and safely and dramatically extends oil change intervals and engine life. Effective for internal combustion engines, transmissions and hydraulic applications, the patented and proprietary system is a cost-effective and energy conscious solution targeting a $7.8 billion potential market. The Company has established aftermarket programs with several of the transportation industry leaders. For more information on puraDYN Filter Technologies Inc., visit http://www.puradyn.com
Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the company's control, including but not limited to the possible inability to raise capital funds, lack of protection from intellectual property, vulnerability because of manufacturing a limited number of products, dependence on distributors, and the possibility that the products do not meet customers' needs, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the company's periodic filings with the Securities and Exchange Commission.
puraDYN Filter Technologies, Incorporated
Condensed Consolidated Statements of Operations
For the Three and Six Months Ended June 30, 2002 and 2001
(Unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2002 2001 2002 2001
----------- ----------- ----------- -----------
Net sales $ 721,986 $ 398,523 $ 1,326,630 $ 763,977
Costs and expenses:
Cost of products
sold 562,042 531,206 1,156,783 934,244
Salaries and
wages 433,705 416,460 824,854 780,949
Selling and
administrative 485,947 150,135 895,014 1,057,133
----------- ----------- ----------- -----------
1,481,694 1,097,801 2,876,651 2,772,326
----------- ----------- ----------- -----------
(759,708) (699,278) (1,550,021) (2,008,349)
Other income
(expense):
Investment income
(loss) (74,750) 87,923 (3,438) 254,991
Interest expense (3,073) (10,718) (34,935) (11,738)
----------- ----------- ----------- -----------
Total other income
(expense) (77,823) 77,205 (38,373) 243,253
Net loss $ (837,531) $ (622,073) $(1,588,394) $(1,765,096)
=========== =========== =========== ===========
Basic and diluted
loss per common
share $ (0.05) $ (0.04) $ (0.10) $ (0.12)
=========== =========== =========== ===========
Weighted average
common shares
outstanding 15,576,103 14,271,152 15,561,290 14,240,945
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