Prolong International Corporation Reports First Quarter 2003 ResultsIRVINE, Calif.--May 12, 2003--Prolong International Corporation (AMEX:PRL), (http://www.prolong.com), a technology driven consumer products holding company and parent of Prolong Super Lubricants, Inc., manufacturer and marketer of patented consumer automotive, commercial/industrial and household products, announced today financial results for the first quarter ended March 31, 2003. For the first quarter of 2003, the Company reported a net loss of $242,000 or $(0.01) per diluted share, on net sales of $2.2 million, compared to a net income of $132,000, or $0.00 per diluted share, on net sales of $2.9 million in the same period a year ago. Gross profit was $1.4 million, or 65.6% of net sales, for the first quarter of 2003 compared to $1.9 million, or 65.6% of net sales, in the first quarter of 2002. Selling and marketing expenses for the first quarter of 2003 were $857,000, or 39.1% of net sales, compared to $1,025,000, or 35.5% of net sales, for the comparable period a year ago. General and administrative expenses were $741,000, or 33.9% of net sales, for the first quarter of 2003, compared to $758,000, or 26.3% of net sales, for the comparable period a year ago.
Elton Alderman, Prolong's President and CEO said, "The results of operations for the first quarter of 2003 do not reflect the results we are working to obtain for the full year." Alderman emphasized that the Company is focused on three main areas; premiering the new 'APC Fusion Series by Prolong' to its customers, rolling out a grass roots distributor program, and continuing to implement cost saving initiatives. Mr. Alderman further stated that, "These are challenging times, both in our business and in the general economy, but there is a tremendous amount of hard work being done within the Company to bring out the inherent value of the Prolong brand."
Prolong International Corporation (AMEX:PRL), a consumer products holding company headquartered in Irvine, California, through its operating subsidiaries, manufactures, markets and distributes a complete line of patented lubricant and proprietary automotive, commercial/industrial and household products. The Company's products are marketed and sold under the brand name Prolong Super Lubricants(R) and are used in consumer, automotive and industrial applications. Prolong products are sold throughout the United States at major chain stores and auto retailers and in international markets. More information about Prolong International Corporation and its products can be obtained at http://www.prolong.com.
PROLONG INTERNATIONAL CORPORATION Consolidated Condensed Statements of Operations Three Months Ended March 31, 2003 2002 (unaudited) (unaudited) Net revenues $2,188,061 $2,885,925 Cost of goods sold 751,867 992,873 Gross profit 1,436,194 1,893,052 Selling and marketing expenses 856,603 1,025,144 General and administrative expenses 741,309 758,407 Other (expenses) income, net (80,640) (45,947) (Loss) income before extraordinary item and provision for income taxes (242,358) 63,554 Extraordinary item-gain from forgiveness of debt, net of income taxes. -- 94,924 (Loss) income before provision for income taxes (242,358) 158,478 Provision for income taxes -- 26,600 Net (loss) income $(242,358) $131,878 Net (loss) income per common share: Basic ($0.01) $0.00 Diluted ($0.01) $0.00 Weighted average common shares: Basic shares outstanding 29,789,598 29,789,598 Diluted shares outstanding 29,789,598 29,789,598 Consolidated Condensed Balance Sheets March 31, December 31, 2003 2002 (unaudited) audited Assets: Cash and cash equivalents $22,646 $261,623 Accounts receivable, net 1,958,400 1,622,414 Inventories, net 587,785 512,595 Other current assets 518,665 566,984 Total current assets 3,087,496 2,963,616 Property and equipment, net 311,033 329,985 Intangible assets, net 6,466,543 6,484,836 Other assets 1,896,164 1,871,247 Total assets $11,761,236 $11,649,684 Liabilities and stockholders' equity: Accounts payable $872,793 $981,388 Accrued expenses and other current liabilities 890,967 700,740 Line of credit 1,183,712 863,592 Total current liabilities 2,947,472 2,545,720 Notes payable, noncurrent 544,639 592,481 Total stockholders' equity 8,269,125 8,511,483 Total liabilities and stockholders' equity $11,761,236 $11,649,684