LifeVantage Announces First Quarter Fiscal Year 2014 Results
Successfully Completes
Expands Branding Reach with
Company Reiterates Fiscal 2014 Revenue, Operating Income and EPS Guidance
Fiscal 2014 First Quarter Highlights:
-
Net revenue was
$51.3 million ; negatively impacted 7.4% by year-over-year foreign currency fluctuation; -
Cash and cash equivalents increased
$1.7 million to$28.0 million compared to year end fiscal year 2013; and - The number of active independent distributors increased to 67,000 and active preferred customers totaled 139,000.
-
In addition to our quarterly sales promotions, in
July 2013 we launched a major sales promotion program, "MyLifeVenture" for our new and existing distributors; -
In
October 2013 we announced that we entered into a sports marketing partnership with theReal Salt Lake professional soccer team, which we believe will raise domestic and international awareness of our LifeVantage brand; -
We will begin selling our products for personal consumption in
the Philippines in December, in-line with our strategy to selectively and strategically enter into new international markets; and -
We entered into a new credit facility and completed a modified Dutch auction under which we repurchased over 16 million shares of our common stock, which brings the cumulative amount of cash we have paid to shareholders for the repurchase of shares to over
$50 million in this calendar year.
"We believe that these recent initiatives will reinvigorate long-term revenue growth. The company continues to realize strong cash flow and we are committed to reducing our total shares outstanding while maintaining ample capital to invest in the future of our business. These initiatives position our company to generate positive long-term returns for our shareholders."
Fiscal 2014 First Quarter Results
For the first fiscal quarter ended
Gross profit for the first fiscal quarter ended
Operating income for the first fiscal quarter of 2014 was
Net income for the first fiscal quarter of 2014 was
Balance Sheet & Liquidity
The Company's cash and cash equivalents at
In the first fiscal quarter of 2014, the Company completed its
Subsequent to the end of the first fiscal quarter, the Company announced that it entered into a Financing Agreement on
On
Fiscal Year 2014 Guidance
The Company is reiterating its annual revenue, operating income and annual earnings per share guidance, which includes the expected impact of the loan under the recent credit facility agreement and completion of the modified Dutch auction. The Company continues to expect to generate revenue in the range of
Conference Call Information
The Company will hold an investor conference call today at
There also will be a simultaneous, live webcast available on the Investor Relations section of the Company's web site at http://investor.lifevantage.com/events.cfm. The webcast will be archived for approximately 30 days.
About
Forward Looking Statements
This document contains forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as "believe," "hopes," "intends," "estimates," "expects," "projects," "plans," "anticipates," "look forward to" and variations thereof, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. Examples of forward-looking statements include, but are not limited to, statements we make regarding our future revenue, operating income, operating margins, earnings per share, cash flow from operations and future investment and growth. Such forward-looking statements are not guarantees of performance and the Company's actual results could differ materially from those contained
in such statements. These forward-looking statements are based on the Company's current expectations and beliefs concerning future events affecting the Company and involve known and unknown risks and uncertainties that may cause the Company's actual results or outcomes to be materially different from those anticipated and discussed herein. These risks and uncertainties include, among others, those discussed in greater detail in the Company's Annual Report on Form 10-K and the Company's Quarterly Report on Form 10-Q under the caption "Risk Factors," and in other documents filed by the Company from time to time with the
| LIFEVANTAGE CORPORATION AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (Unaudited) | ||
| (In thousands, except per share data) | As of | |
| ASSETS |
|
|
| Current assets | ||
| Cash and cash equivalents | $ 27,957 | $ 26,299 |
| Accounts receivable | 923 | 1,789 |
| Income tax receivable | 298 | 2,150 |
| Inventory | 10,625 | 10,524 |
| Current deferred income tax asset | 2,885 | 2,885 |
| Prepaid expenses and deposits | 2,202 | 2,294 |
| Total current assets | 44,890 | 45,941 |
| Long-term assets | ||
| Property and equipment, net | 5,490 | 5,692 |
| Intangible assets, net | 1,765 | 1,747 |
| Long-term deferred income tax asset | 730 | 730 |
| Other long-term assets | 1,588 | 1,374 |
| TOTAL ASSETS | $ 54,463 | $ 55,484 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities | ||
| Accounts payable | $ 3,000 | $ 5,171 |
| Commissions payable | 7,648 | 7,564 |
| Reserve for sales returns | 1,041 | 648 |
| Other accrued expenses | 6,741 | 7,183 |
| Total current liabilities | 18,430 | 20,566 |
| Long-term liabilities | ||
| Other long-term liabilities | 950 | 973 |
| Total liabilities | 19,380 | 21,539 |
| Commitments and contingencies | ||
| Stockholders' equity | ||
|
Preferred stock - par value |
-- | -- |
|
Common stock - par value |
118 | 121 |
| Additional paid-in capital | 111,432 | 110,413 |
| Accumulated deficit | (76,080) | (76,476) |
| Accumulated other comprehensive loss | (387) | (113) |
| Total stockholders' equity | 35,083 | 33,945 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 54,463 | $ 55,484 |
| LIFEVANTAGE CORPORATION AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||
| (Unaudited) | ||
|
For the three months ended |
||
| 2013 | 2012 | |
| (In thousands, except per share data) | ||
| Sales, net | $ 51,328 | $ 52,859 |
| Cost of sales | 7,809 | 7,807 |
| Gross profit | 43,519 | 45,052 |
| Operating expenses: | ||
| Sales and marketing | 30,242 | 29,540 |
| General and administrative | 7,401 | 7,853 |
| Research and development | 307 | 514 |
| Depreciation and amortization | 499 | 238 |
| Total operating expenses | 38,449 | 38,145 |
| Operating income | 5,070 | 6,907 |
| Other income (expense), net: | ||
| Interest and other income (expense), net | 38 | (41) |
| Total other income (expense) | 38 | (41) |
| Net income before income taxes | 5,108 | 6,866 |
| Income tax expense | (1,852) | (2,701) |
| Net income | $ 3,256 | $ 4,165 |
| Net income per share: | ||
| Basic | $ 0.03 | $ 0.04 |
| Diluted | $ 0.03 | $ 0.03 |
| Weighted average shares outstanding: | ||
| Basic | 114,666 | 110,867 |
| Diluted | 123,542 | 125,781 |
| Other comprehensive loss, net of tax: | ||
| Foreign currency translation adjustment | (274) | (5) |
| Other comprehensive loss | $ (274) | $ (5) |
| Comprehensive income | $ 2,982 | $ 4,160 |
|
|
||||
| Sales by Region | ||||
| (Unaudited) | ||||
|
Three months ended |
||||
| 2013 | 2012 | |||
| (In thousands) | ||||
|
|
$ 34,498 | 67% | $ 32,306 | 61% |
|
|
16,830 | 33% | 20,553 | 39% |
| Total Net Sales | $ 51,328 | 100% | $ 52,859 | 100% |
|
|
||||
| Active Independent Distributors (1) | ||||
| (Unaudited) | ||||
|
|
||||
| 2013 | 2012 | |||
|
|
42,000 | 63% | 35,000 | 65% |
|
|
25,000 | 37% | 19,000 | 35% |
| Total | 67,000 | 100% | 54,000 | 100% |
|
|
||||
| Active Preferred Customers (2) | ||||
| (Unaudited) | ||||
|
|
||||
| 2013 | 2012 | |||
|
|
115,000 | 83% | 114,000 | 83% |
|
|
24,000 | 17% | 23,000 | 17% |
| 139,000 | 100% | 137,000 | 100% | |
| (1) Active Independent Distributors have purchased product in the prior three months for retail or personal consumption. | ||||
| (2) Active Preferred Customers have purchased product in the prior three months for personal consumption only. | ||||
CONTACT: Investor Relations Contact:
Cindy England (801) 432-9036
Director of Investor Relations
-or-
John Mills (310) 954-1105
Senior Managing Director, ICR, LLC
News Provided by Acquire Media