Wellstone Filters Achieves Revenues and Significant Reduction of Net Loss In Fiscal 2006 First Quarter
16 May 2006 - 12:17AM
PR Newswire (US)
Company Achieves First Time Revenues Upon Successful First Quarter
Launch Of Its Wellstone Branded Tobacco Products DURHAM, N.C., May
15 /PRNewswire-FirstCall/ -- Wellstone Filters, Inc. (the Company)
(OTC:WLSF) (BULLETIN BOARD: WLSF) a developer, producer and
distributor of branded tobacco products and innovative tobacco
filter technology, today announced financial results for its fiscal
2006 quarter ended March 31, 2006. In its first fiscal quarter
ended March 31, 2006, the Company realized gross margins of 17% on
total revenues of $49,000. Since its inception in February 1998,
the Company believes it has executed a business strategy providing
for (i) the combination of a patented filter technology with
premium blended tobaccos, (ii) recruitment of an effective,
industry focused management team, (iii) a cost-effective, virtual
product manufacturing strategy, (iv) establishment of a
distribution network with experienced and motivated participants,
and (v) a "go-to-market" product launch strategy which in a short
time period appears to have attracted a following for the Company's
branded tobacco products. This strategy has contributed to the
Company's ability to report revenues for the first time in its
operating history. Our net loss for the three months ended March
31, 2006 was $583,000 compared to a net loss of $5,121,000 for the
comparable prior year period, a decrease of $4,538,000 or 89%. On a
per share basis, our net loss for the three months ended March 31,
2006 was $0.00 per basic and diluted share as compared to a net
loss of $0.02 per basic and diluted share for the comparable prior
year period, a $0.02 per share improvement. Harry Poole, Vice
President of Sales of Wellstone Filters, stated, "In the first
quarter of fiscal 2006, our Wellstone branded tobacco products were
available in a limited number of states in the U.S. and appeared to
gain acceptance by consumers. In March of 2006, we launched our
branded tobacco products at the National Association of Tobacco
Outlets ("NATO") trade show in Las Vegas. NATO is commonly
recognized as one of the important shows where the tobacco product
buying season is kicked off. As a result, we now believe Wellstone
Filters products, which have been approved for distribution in 41
states, could now move from its previous limited geographic reach
to a national distribution level. Our market intelligence to date
indicates our products appear to have gained traction in key
markets such as Southern California and the Southeastern U.S.
states. We intend to continue ramping our direct sales force and
independent distributor network to meet the needs of existing
markets and to penetrate new regional markets." L. Jeremiah Hand,
President and CEO of Wellstone Filters, commented, "Our vision is
to deliver the "ultimate smoking experience" by providing an ultra
rich, smooth tasting premium cigarette sold at a value price. We
believe our patented filter technology combined with premium
tobacco blends will address the demand for "great taste" in a
discount cigarette. Our strategy of employing a virtual
manufacturing and distribution platform should enable the Company
to supply the marketplace with a premium cigarette produced and
distributed at low prices. We also believe the combination of
premium cigarette qualities with a virtual manufacturing and
distribution platform could enhance the Company's gross margins in
comparison to its competitors. We are extremely pleased at the
progress made to date and are confident in our management team's
ability to continue the execution of our strategic plan to capture
an increasing segment of a cigarette market which boasts an
estimated domestic market size of $38 billion." Additional
information on the financial condition and results of operations
can be found in the Company's Current Report on Form 10QSB for the
period ended March 31, 2006 to be filed with the Securities and
Exchange Commission no later than May 15, 2006. About Wellstone
Filters Wellstone Filters LLC was formed in 1998 and, as a result
of a reverse merger transaction in 2001, subsequently changed its
name to Wellstone Filters, Inc. The Company is engaged in the
development, marketing and distribution of a proprietary cigarette
filter technology and tobacco products distributed under the
Wellstone Filters brand. Currently, Wellstone's family of branded
cigarettes includes Wellstone Red, Wellstone Smooth Blue, and
Wellstone Menthol, all of which come in King Size and 100's.
Wellstone believes it may be the first ultra-premium cigarette
available at a value price that combines a patented filter and
premium tobacco blend providing a rich, smooth tasting cigarette.
Wellstone does not represent that its patented filter makes for a
safer cigarette and emphasizes that no cigarette is safe. This
press release or any other corporate communication by Wellstone,
its management, directors, employees, agents or representatives is
not intended to induce any person or persons to purchase Wellstone
tobacco products or any other tobacco products. Licensed direct
buying accounts can place orders for Wellstone Filters branded
products by calling 866-456-9827 or by email at . For further
details on the Company and its products please visit the Company's
website at http://www.wellstonefilters.com/. Wellstone Filters
believes that this press release contains forward-looking
statements as that term is defined in the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are
subject to risks and uncertainties. Such statements are based on
management's current expectations and are subject to facts that
could cause results to differ materially from the forward-looking
statements. For further information you are encouraged to review
Wellstone Filters' filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-KSB for the
period ended December 31, 2005, and Quarterly Report on Form 10-QSB
for the period ended March 31, 2006. The Company assumes no
obligation to update the information contained in this press
release. DATASOURCE: Wellstone Filters, Inc. CONTACT: Wellstone
Filters, Inc., +1-336-597-8300 Web site:
http://www.wellstonefilters.com/
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