EX-99.1 2 v185193_ex99-1.htm
EXHIBIT 99.1
Company contact: Ronald Scott
Chief Financial Officer
Tel: +1 770-246-6426
Email: ron.scott@liberator.com

WES Consulting, Inc. Announces Third Quarter 2010 Profit
 
11% Growth in Third Quarter Revenues
 
Atlanta, GA, May 14, 2010 — WES Consulting, Inc. (OTC Bulletin Board: WSCU), a leader in the manufacture and distribution of products for the sexual well-being market, today reported financial results for the third quarter and nine months ended March 31, 2010. 
 
2010 Third Quarter Consolidated Results
 
For the third quarter ended March 31, 2010, the company recorded net income of $24,369 compared to a net loss of ($162,771) in the third quarter of fiscal 2009.  Basic and diluted earnings per share were $0.00 in the three month period ended March 31, 2010 compared to basic and diluted loss per share of $(0.00) in the same period in 2009.

Total revenue for the three months ended March 31, 2010 was $3,157,863, representing an increase of 11 percent from the $2,847,657 reported for the quarter ended March 31, 2009.  Sequentially, revenues improved 4 percent from the $3,034,664 in revenues for the second quarter ended December 31, 2009.  Gross profit for the third quarter of 2010 was $1,074,691, or 34 percent of revenues, compared to $885,382, or 31 percent of revenues, for the same period in 2009.  Operating expenses for the third quarter of 2010 increased by 2 percent to $1,008,128 compared to expenses of $987,673 in the quarter ended March 31, 2009.  Third quarter 2010 operating profit was $66,563, significantly improved from an operating loss of ($102,291) in the third quarter of 2009.  Net income for the third quarter of 2010 was $24,369, or $0.00 per share, compared to a net loss of ($162,771), or $0.00 per share, for the third quarter of 2009.

2010 Nine Months Consolidated Results

Total revenue for the nine months ended March 31, 2010 was $8,227,519, representing a slight increase from the $8,198,951 reported for the nine months ended March 31, 2009.  Gross profit for the first nine months of 2010 was $2,809,499, or 34 percent of revenues, compared to $2,744,587, or 33 percent of revenues, for the same period in 2009.  Operating expenses for the first nine months of 2010 decreased by almost 4% to $3,114,706 compared to expenses of $3,242,761 in the nine months ended March 31, 2009.  The nine months operating loss was ($305,207), a 39 percent improvement from the operating loss of ($498,174) in the first nine months of fiscal 2009.  After including the expenses related to the merger with Liberator, Inc. during the first quarter of fiscal 2010 (which totaled $192,167), the net loss for the nine months ended March 31, 2010 was ($646,504) compared to a net loss of ($693,436) for the same period in 2009.
 
“We are very pleased with our third quarter financial results,” said Louis Friedman, WES Consulting’s Chief Executive Officer. “Top line revenue growth increased 11% from the same period in 2009 and we reported a profit of $24,369 versus a loss of ($162,711) during the same period last year.  As a result of on-going product development efforts and the introduction of new purchased products through our distribution channels, we expect to see continued year-over-year revenue growth.  Our exclusive distribution agreement with TENGA is expected to be a large contributor to the year-over-year revenue growth, as it was in the third quarter”.  

About WES Consulting, Inc. (formerly known as Liberator, Inc.)

WES Consulting is the creator and manufacturer of LIBERATOR®, the luxury and lovestyle brand that celebrates intimacy by inspiring romantic imagination.  Established with the conviction that sensual pleasure and fulfillment are essential to a well-lived life, LIBERATOR Bedroom Adventure Gear ® empowers exploration, fantasy and the communication of desire, for persons of all shapes, sizes and abilities.  Products include LIBERATOR shapes and positioning systems, pleasure objects, and sensual accessories.

WES Consulting, Inc. is currently housed in a 140,000 square foot vertically integrated manufacturing facility in a suburb of Atlanta, Georgia.  WES Consulting has over 100 employees, with products being sold directly to consumers and through hundreds of domestic resellers, on-line affiliates and worldwide licensees.

For more information, visit www.liberator.com  or call 1-866-542-7283.


WES Consulting, Inc. Safe Harbor Statement
Certain statements contained in this press release may be construed as “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995 (the “Act”).  The words “estimate,” “project,” “intends,” “expects,” “anticipates,” “believes” and similar expressions are intended to identify forward-looking statements.  Such forward-looking statements are made based on management’s beliefs, as well as assumptions made by, and information currently available to, management pursuant to the “safe-harbor” provisions of the Act.  These statements are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of these statements.  These risks and uncertainties include, without limitation, our history of losses and limited revenue, our ability to develop new products and evolve existing ones, the impact on our business of the recent financial crisis in the global capital markets and negative global economic trends, and our ability to attract and retain key personnel.  For a more complete description of these and other risk factors that may affect the future performance of WES Consulting, Inc., see “Risk Factors” in the Company’s Amended Current Report on Form 8-K filed on March 24, 2010 and its other filings with the Securities and Exchange Commission.  Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made.  The Company also undertakes no obligation to disclose any revision to these forward-looking statements to reflect events or circumstances after the date made or to reflect the occurrence of unanticipated events.
 

 
 -FINANCIAL TABLES FOLLOW-

WES CONSULTING, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
 

      Three Months Ended        Nine Months Ended  
      March 31,       March 31,  
     
2010
     
 2009
     
2010
     
 2009
 
     
(unaudited) 
      (unaudited)  
                                 
NET SALES
  $ 3,157,863     $ 2,847,657     $ 8,227,519     $ 8,198,951  
COST OF GOODS SOLD
    2,083,172       1,962,275       5,418,020       5,454,364  
                                 
        Gross profit
    1,074,691       885,382       2,809,499       2,744,587  
                                 
OPERATING EXPENSES:
                               
    Advertising and Promotion
    142,344       213,203       560,346       764,437  
    Other Selling and Marketing
    303,746       322,176       851,239       918,186  
    General and administrative
    499,399       376,364       1,505,803       1,332,348  
    Depreciation
    62,639       75,930       197,318       227,790  
                                 
        Total operating expenses
    1,008,128       987,673       3,114,706       3,242,761  
                                 
        Operating income    (loss)
    66,563       (102,291 )     (305,207 )     (498,174 )
                                 
OTHER INCOME (EXPENSE)
                               
    Interest income
    702       191       4,224       1,660  
    Interest expense and financing costs
    (42,896 )     (60,671 )     (153,354 )     (196,922 )
    Expenses related to merger
                (192,167 )      
         Total other expense, net
    (42,194 )     (60,480 )     (341,297 )     (195,262
 
                               
Income (loss) from continuing operations
before income taxes
    24,369       (162,771 )     (646,504 )     (693,436 )
PROVISION (BENEFIT) FOR INCOME TAXES
                       
                                 
NET INCOME (LOSS)
  $ 24,369     $ (162,771 )   $ (646,504 )   $ (693,436 )
                                 
NET INCOME (LOSS) PER SHARE:
                               
    Basic
  $ 0.00     $ (0.00 )   $ (0.01 )   $ (0.02 )
    Diluted
  $ 0.00     $ (0.00 )   $ (0.01 )   $ (0.02 )
                                 
SHARES USED IN CALCULATION OF NET LOSS PER SHARE:
                               
                                 
    Basic
    62,661,537       45,000,000       61,762,649       45,000,000  
    Diluted
    62,661,537       45,000,000       61,762,649       45,000,000  



WES CONSULTING, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
                 
   
March 31,
   
June 30,
 
   
2010
   
2009
 
   
(unaudited)
       
ASSETS
               
Current assets:
               
    Cash and cash equivalents
 
$
311,108
   
$
1,815,633
 
    Accounts receivable, net of allowance for doubtful accounts of $15,178 at
        March 31, 2010 and $5,740 at June 30, 2009
   
457,825
     
346,430
 
    Inventories
   
992,486
     
700,403
 
    Prepaid expenses
   
188,278
     
95,891
 
        Total current assets
   
1,949,697
     
2,958,357
 
             
Equipment and leasehold improvements, net
   
1,094,131
     
1,135,517
 
                 
        Total assets
 
$
3,043,828
   
$
4,093,874
 
             
                 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
               
Current liabilities:
               
    Accounts Payable
 
$
1,717,601
   
$
2,247,845
 
    Accrued compensation
   
139,286
     
154,994
 
    Accrued expenses and interest
   
29,890
     
145,793
 
    Revolving line of credit
   
201,616
     
171,433
 
    Short term notes payable
   
115,198
     
 
    Current portion of long-term debt
   
120,017
     
145,481
 
    Credit card advance
   
     
198,935
 
        Total current liabilities
   
2,323,608
     
3,064,481
 
Long-term liabilities:
               
    Note payable – equipment
   
27,764
     
72,812
 
    Leases payable
   
160,646
     
225,032
 
    Notes payable – related party
   
105,948
     
125,948
 
    Convertible notes payable – shareholder, net of discount
   
511,474
     
285,750
 
    Unsecured lines of credit
   
106,290
     
124,989
 
    Deferred rent payable
   
339,084
     
356,308
 
    Less: current portion of long-term debt
   
(120,017
)
   
(145,481
)
    Total long-term liabilities
   
1,131,189
     
1,045,358
 
        Total liabilities
   
3,454,797
     
4,109,839
 
                 
Commitments and contingencies
               
Stockholders’ Deficit:
               
    Series A Convertible Preferred stock, $.0001 par value, 10,000,000 shares
       authorized, 4,300,000 shares issued and outstanding on March 31, 2010 and
       June 30, 2009, liquidation preference of $1,000,000
   
430
     
430
 
    Common stock of $0.01 par value, shares authorized 175,000,000; 63,015,981 shares
        issued and outstanding at March 31, 2010 and 60,932,981 shares issued and
        outstanding at June 30,2009
   
630,160
     
609,330
 
    Additional paid-in capital
   
4,914,403
     
4,683,733
 
    Accumulated deficit
   
(5,955,962
)
   
(5,309,458
)
        Total stockholders’ deficit
   
(410,969
)
   
(15,965
             
        Total liabilities and stockholders’ deficit
 
$
3,043,828
   
$
4,093,874
 

© Copyright 2010 by WES Consulting, Inc.

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