Newspaper article THE JOURNAL RECORD

Advantage Reports 159.5% Increase in Quarterly Income

Newspaper article THE JOURNAL RECORD

Advantage Reports 159.5% Increase in Quarterly Income

Article excerpt

OKLAHOMA CITY (JR) -- Advantage Marketing Systems on Thursday reported a 159.5 percent increase in net income for the first quarter.

Net income for the quarter totaled $139,218, or 3 cents per share, and exceeded the amount reported for all of 1997. Net income for the first quarter of 1997 was $53,643, or 2 cents per share.

Net sales for the quarter totaled $2.7 million, up from $2.05 million a year earlier. Sales rose sharply because the company has been very successful at increasing the number of independent distributors in its network and in increasing the number of weight management, dietary supplement and personal care products it offers, said John W. Hail, chairman and CEO. Some of the increase in sales was due to Advantage's acquisitions of Chambre International on Jan. 31 and the assets of Stay' N' Shape on April 16, he said. The two acquisitions added 113 products and 5,100 distributors to AMS. The distributors brought to the company by the acquisitions accounted for a little more than 10 percent of total sales for the quarter. As of March 31, Oklahoma City-based Advantage Marketing Systems had increased its number of active distributors to 25,300 compared with 16,200 a year earlier. A distributor is considered active if he or she made a product purchase of $50 or more within the prior 12 months. Hail credited the company's new distributor compensation plan as one primary impetus for the quarter's growth. Effective Feb. 1, the plan gives its distributors additional incentives to extend their organizations, he said. As part of that program, the company's Secured Infinity Bonus Plan, the only one of its kind in the industry, provides for greater, more stable residual income for AMS distributors, Hail said. In addition, he said, AMS had again strengthened its product lineup. "With this enhanced product grouping and our present momentum we believe the second quarter will be another excellent growth period for our distributors and company," Hail said. …

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