D'Arcangelo leaves OKC-based AMS presidency

Journal Record, The (Oklahoma City),  May 11, 2005  by David Page

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David D'Arcangelo has resigned as president of AMS Health Sciences.

John Hail, chairman and CEO, will act as interim president while the Oklahoma City-based company searches for a new president, AMS announced Tuesday.

Seidler Cos. will assist in the search for a new president. In March, AMS signed an investment banking agreement with Seidler, based in Los Angeles. Seidler will seek new products, licensing opportunities and strategic investors for AMS and will evaluate industry opportunities to enhance shareholder value.

In trading on the American Stock Exchange on Tuesday, AMS closed down 3 cents at $2. The 52-week high is $6.60 and the low is $1.85. Market capitalization on Tuesday was $14 million.

D'Arcangelo was named president in November 2002. He joined AMS after serving as chairman of Entreport, an online training company for real estate agents and franchisors. From 1994 to 1999, D'Arcangelo was president of the D'Arcangelo Cos., a business marketing and training consulting firm.

According to a 10-Q statement filed Friday by AMS, D'Arcangelo signed a one-year contract in November that included a base annual salary of $230,000. The contract included provisions for graduated severance payments of up to 12 months of base pay.

AMS reported a net loss of $1.3 million, or 19 cents per share, for the first quarter. Sales fell 10.1 percent to $4 million from $4.5 million a year earlier.

AMS sells more than 60 natural nutritional supplements, weight management products, and natural skin-care products through independent distributors.

In April, AMS announced a cost-cutting program to cut the cost of sales and operating expenses by 20 percent. The expense reductions include a staff reduction, fewer contract services and a voluntary pay cut by Hail.

According to the 10-Q filing, Hail, founder of the company, has a contract for a base annual salary of $249,600, a monthly variable salary equal to 1 percent of gross revenues and a discretionary year- end bonus determined by the board of directors.

AMS reported a net loss of $6.3 million, or 90 cents per share, for 2004. The net loss for the year included a tax valuation write- off of $3.2 million. Sales fell 1.6 percent to $18.2 million from $18.5 million in 2003.

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