PRH Vitacube Systems Hld

Revenue and Distributor Ramp-Up Continue Teleconference and Webcast Scheduled for this Afternoon DENVER, April 3 /PRNewswire-FirstCall/ -- VitaCube Systems Holdings, Inc., d/b/a/ XELR8 Holdings, Inc. (AMEX:PRH), a provider of functional foods, beverages and nutritional supplements, today announced results for fiscal year 2005, ended December 31, 2005. (Logo: http://www.newscom.com/cgi-bin/prnh/20050926/FLM015LOGO ) Year end 2005 and Fourth Quarter 2005 Financial and Operational Highlights: - Net sales for 2005 increased 53% to $1.23 million when compared to $804,000 recorded in 2004. - Net sales for the three months ended December 31, 2005 rose 84% to $445,000, up from $242,000 in the comparable three month period in 2004; on a sequential quarter over quarter basis, net sales in the fourth quarter grew 38% compared to net sales of $323,000 reported for the third quarter reporting period, ended September 30, 2005. - 2005 net losses increased to $5 million, or $0.57 basic and diluted loss per share, up from $2.5 million, or $0.44 basic and diluted loss per share, in 2004. The rise in net losses was primarily due to increased expenses associated with the development and market launch of the Company's new Eat/Drink/Snack product line, as well as related sales and marketing expenses associated with expanding its national distributor network. - For the three months ended December 31, 2005, net losses increased to $1.5 million, a 190% increase over net losses of $533,000 recorded in the fourth quarter of 2004. The growth in losses is due to the aforementioned reasons. - As of December 31, 2005, the Company had approximately $2.9 million in cash and investments and total stockholders' equity of approximately $3.4 million. - Available working capital was $3.3 million, up from $95,000 in 2004. - The number of distributors in the Company's direct selling network reflected annual growth of 86% in 2005, increasing to 1,826 as of December 31, 2005 from 981 at the end of 2004. As of the end of February, distributors numbered 2,038. Earnest Mathis, Chairman and Chief Executive Officer of XELR8 Holdings, stated, "Fourth quarter results reflect the trend of sequential improved performance that we hope to perpetuate through 2006 and beyond. In particular, we are experiencing steady revenue growth that directly correlates to the steady expansion of our direct selling network, which just recently surpassed 2000 distributors. With a goal of tripling the size of our distributor network in the next 12-18 months, we have a great deal of hard work ahead of us. Nonetheless, we remain confident that the entire XELR8 organization will benefit from the growing enthusiasm for our Eat/Drink/Snack offerings, as well as our other product lines, and the compelling incentive programs that we've created to drive accelerated growth of our direct selling network." XELR8 will host a teleconference this afternoon beginning at 4:15 PM Eastern, and invites all interested parties to join management in a discussion regarding the Company's financial results, corporate progression and other meaningful developments. The conference call can be accessed via telephone by dialing toll free 1-800-240-2134 or via the internet at http://www.xelr8.com/. For those unable to participate at that time, a replay of the web cast will be available for 90 days on http://www.xelr8.com/. About XELR8 Holdings, Inc. VitaCube Systems Holdings, Inc., d/b/a/ XELR8 Holdings, Inc., is a provider of nutritional foods and beverages designed to help enhance physical health and overall performance. XELR8 has developed a comprehensive line of nutritional supplements and functional foods designed in systems that are easy to take, simple to understand, and conveniently fit within a lifestyle. XELR8's commitment to quality, science, and research has earned them a loyal following of over 350 world-class athletes, such as 5-Time Cy Young Award Winner Randy Johnson; Super Bowl Champions Mike Alstott and Lawyer Milloy; Olympic Medalists Briana Scurry and Caroline Lalive; Stanley Cup Winner Blake Sloan; and PGA Tour Professional Tom Pernice, Jr. XELR8 products are only available through independent distributors located throughout the nation. For more information about XELR8, please visit http://www.xelr8.com/. VITACUBE SYSTEMS HOLDINGS, INC., d/b/a XELR8 HOLDINGS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Audited) As of December 31, 2005 2004 ASSETS Current assets: Cash and cash equivalents $2,805,021 $114,794 Short term investments 110,000 Accounts receivable, net of allowance for doubtful accounts of $5,463 and $237, respectively 8,758 4,358 Inventory, net of allowance for obsolescence of $16,879 and 43,300, respectively 542,749 478,300 Prepaid expenses and other current assets 279,502 108,315 Total current assets 3,746,030 705,767 Property and equipment, net 93,423 109,275 Intangible assets, net 36,219 40,015 Deferred offering costs - 269,106 Total assets $3,875,672 $1,124,163 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $455,996 $611,398 Total liabilities 455,996 611,398 Commitments and Contingency - - SHAREHOLDERS' EQUITY: Preferred stock, authorized 5,000,000 shares, $.001 par value, none issued or outstanding - - Common stock, authorized 50,000,000 shares, $.001 par value, 9,618,900 and 6,534,043 issued and outstanding, respectively 9,619 6,534 Additional paid in capital 15,990,889 8,071,186 Accumulated (deficit) (12,580,832) (7,564,955) Total shareholders' equity 3,419,676 512,765 Total liabilities and shareholders' equity $3,875,672 $1,124,163 VITACUBE SYSTEMS HOLDINGS, INC. d/b/a XELR8 HOLDINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Audited) For the Years Ended December 31, 2005 and 2004 2005 2004 Net sales $1,227,803 $803,640 Cost of goods sold 540,916 281,341 Gross profit 686,887 522,299 Operating expenses: Selling and marketing expenses 2,856,351 1,098,550 General and administrative expenses 2,844,633 1,569,730 Research and development expenses 70,037 6,498 Depreciation and amortization 25,682 65,339 Total operating expenses 5,796,703 2,740,117 Loss from operations (5,109,816) (2,217,818) Other income (expense) Interest income 96,780 4,691 Interest (expense) (2,841) (300,872) Total other income (expense) 93,939 (296,181) Net (loss) $(5,015,877) $(2,513,999) Net (loss) per common share Basic and diluted net (loss) per share $(0.57) $(0.44) Weighted average common shares, basic and diluted 8,768,452 5,716,404 Forward-looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including prospects for XELR8's distribution network. Actual results may differ from those discussed in such forward-looking statements. These forward looking statements include risks and uncertainties that include the Company's ability to attract and retain distributors; changes in demand for the Company's products; changes in the level of operating expenses; changes in general economic conditions that impact consumer behavior and spending; product supply; the availability, amount, and cost of capital for the Company; and the Company's use of such capital. More information about factors that potentially could affect the Company's financial results is included in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-KSB for the year ended December 31, 2005 and all subsequent filings. Certain statements in this release regarding the Company's agreements are in accordance with the guidelines established by the Federal Trade Commission for endorsements in advertising. Company Contacts: VitaCube d/b/a XELR8 Holdings, Inc. Earnest Mathis, CEO (303) 316-8577, x228 Elite Financial Communications Group, LLC Dodi Handy, President and CEO 407-585-1080 http://www.newscom.com/cgi-bin/prnh/20050926/FLM015LOGO http://photoarchive.ap.org/ DATASOURCE: XELR8 Holdings, Inc. CONTACT: Earnest Mathis, CEO of VitaCube d/b/a XELR8 Holdings, Inc., +1-303-316-8577, x228, ; or Dodi Handy, President and CEO of Elite Financial Communications Group, LLC, +1-407-585-1080, Web site: http://www.xelr8.com/

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