Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 ______________________________
 FORM 8-K
 ______________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): August 15, 2018
 ______________________________
 
 
 
 
 
 
LIFEVANTAGE CORPORATION
(Exact name of registrant as specified in its charter)
______________________________
 
 
 
 
 
 
Delaware
 
001-35647
 
90-0224471
(State or other Jurisdiction of Incorporation)
 
(Commission File Number)
 
(IRS Employer Identification No.)
 
 
9785 S. Monroe Street, Suite 400, Sandy, UT 84070
(Address of Principal Executive Offices and Zip Code)
 
 
 
 
 
Registrant’s telephone number, including area code: (801) 432-9000
_____________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter). Emerging growth company o

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o





Item 2.02.    Results of Operations and Financial Condition.
On August 15, 2018, LifeVantage Corporation (the “Company”) issued a press release announcing its financial results for the fourth quarter and full fiscal year ended June 30, 2018. A copy of the Company’s press release is attached as Exhibit 99.1 to this report and incorporated by reference.
The information furnished in this Item 2.02 and the exhibit hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.
Item 9.01.    Financial Statements and Exhibits.
(d)    Exhibits
Exhibit No.
 
Description

99.1
 
 


SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
 
 
 
 
Date:
August 15, 2018
LIFEVANTAGE CORPORATION
 
 
 
 
By:
/s/ Steven R. Fife
 
Name:
Steven R. Fife
 
Title:
Chief Financial Officer



Exhibit
http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12414438&doc=3

LifeVantage Announces Financial Results for the
Fourth Fiscal Quarter and Full Fiscal Year 2018
Fourth Quarter Revenue Growth Accelerates to 6.7% Year over Year and 6.9% Sequentially
Exceeds High End of 2018 Adjusted EPS Guidance
Salt Lake City, UT, August 15, 2018, LifeVantage Corporation (Nasdaq: LFVN) today reported financial results for its fourth quarter and full fiscal year ended June 30, 2018.
Fourth Quarter Fiscal 2018 Highlights:
Revenue increased 6.7% to $54.0 million year over year and 6.9% sequentially;
Revenue in the Americas increased 4.7% year over year and 6.6% sequentially. Revenue in Asia/Pacific & Europe increased 13.3% year over year and 7.8% sequentially;
Active independent distributors were consistent with the third quarter of 2018 and active customers increased 5.5% sequentially;
Adjusted EBITDA increased 58.8% year over year to $5.2 million;
Earnings per diluted share were $0.21, up from $0.01 in the prior year period; and
Adjusted earnings per diluted share were $0.20, up from $0.04 in the prior year period.
* All year over year growth rates compare the fourth quarter of fiscal 2018 to the fourth quarter of fiscal 2017. All sequential growth rates compare the fourth quarter of fiscal 2018 to the third quarter of fiscal 2018.
Fiscal Year 2018 Highlights:
Revenue increased 1.9% to $203.2 million;
Revenue in the Americas increased 0.5% and revenue in Asia/Pacific & Europe increased 6.1%;
Active independent distributors decreased 1.6% and active customers increased 3.6%;
Adjusted EBITDA increased 13.9% to $14.9 million;
Earnings per diluted share were $0.41, compared to $0.11 in fiscal 2017; and
Adjusted earnings per diluted share were $0.51, compared to $0.27 in fiscal 2017.
*All growth rates compare fiscal 2018 to fiscal 2017.
”We are very pleased to finish fiscal 2018 on a strong note, exceeding our adjusted earnings per share guidance and reporting accelerated revenue growth both on a year over year and a sequential basis,” stated LifeVantage President and Chief Executive Officer Darren Jensen. “The initiatives implemented over the last year have driven improved growth and retention of our active members (total active distributors and customers), higher average order sizes, broadened our product portfolio and geographical footprint and put us at the forefront of the technologically-driven evolution of network marketing.”
Jensen continued, “As we look toward fiscal 2019, we plan to double-down on the key drivers of our improved growth and continue to enhance the key operating metrics that have contributed to improved revenue and earnings. We look to drive sustainable improvement to our growing global business and shareholder value. I am excited for what lies ahead for LifeVantage."
Fourth Quarter Fiscal 2018 Results
For the fourth fiscal quarter ended June 30, 2018, the Company reported revenue of $54.0 million, an increase of 6.7% as compared to $50.6 million in the fourth quarter of fiscal 2017. Revenue in the Americas for the fourth


http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12414438&doc=3

quarter increased 4.7% compared to the fourth quarter of fiscal 2017 and revenue in the Asia/Pacific & Europe region increased 13.3% compared to the fourth quarter of fiscal 2017. Revenue for the fourth quarter of fiscal 2018 was positively impacted $0.3 million, or 0.6%, by foreign currency fluctuations associated with revenue generated in several international markets when compared to the fourth quarter of fiscal 2017.
Gross profit for the fourth quarter of fiscal 2018 was $46.0 million, or 85.1% of revenue, compared to $41.8 million, or 82.4% of revenue, for the same period in fiscal 2017. Fourth quarter GAAP gross profit benefited by $0.9 million due to a change in accrued import estimates. Adjusted non-GAAP gross profit for the fourth quarter of fiscal 2018 was $45.1 million, or 83.5%. No non-GAAP adjustments were noted for the comparable prior year period.
Commissions and incentives expense for the fourth quarter of fiscal 2018 was $27.1 million, or 50.1% of revenue, compared to $24.0 million, or 47.4% of revenue, for the same period in fiscal 2017.
Selling, general and administrative expense (SG&A) for the fourth quarter of fiscal 2018 was $14.6 million, or 27.0% of revenue, compared to $16.2 million, or 32.0% of revenue, for the same period in fiscal 2017. Adjusted for class-action lawsuit expenses of $0.3 million, executive severance, recruiting and transition expenses of $0.3 million, and benefits from insurance reimbursements received of $0.4 million, adjusted non-GAAP SG&A expenses for the fourth quarter of fiscal 2018 were $14.4 million or 26.6% of revenue. Adjusted for recruiting and transition expenses of $0.2 million, class-action lawsuit expense of $0.1 million, and other nonrecurring legal expenses of $0.2 million, adjusted non-GAAP SG&A expenses for the fourth quarter of fiscal 2017 were $15.8 million or 31.2% of revenue.
Operating income for the fourth quarter of fiscal 2018 was $4.3 million, compared to $1.5 million for the fourth quarter of fiscal 2017. Accounting for the non-GAAP adjustments noted previously, adjusted non-GAAP operating income for the fourth quarter of fiscal 2018 was $3.7 million compared to $2.0 million for the fourth quarter of fiscal 2017. Adjusted EBITDA was $5.2 million for the fourth quarter of fiscal 2018, compared to $3.3 million for the comparable period in fiscal 2017.
Net income for the fourth quarter of fiscal 2018 was $3.0 million, or $0.21 per diluted share. This compares to net income for the fourth quarter of fiscal 2017 of $0.1 million, or $0.01 per diluted share. Accounting for the non-GAAP adjustments noted previously, net of tax impacts of these adjustments of $0.2 million, as well as tax expense of $0.3 million associated with the revaluation of deferred tax assets associated with the recently enacted tax reform, adjusted non-GAAP net income for the fourth quarter of fiscal 2018 was $2.8 million, or $0.20 per diluted share, compared to adjusted non-GAAP net income of $0.5 million, or $0.04 per diluted share, for the comparable period of fiscal 2017. Non-GAAP adjustments to net income during the fourth quarter of fiscal 2017 included the SG&A expenses noted previously and a write-off of intangible assets of $0.4 million, all net of $0.4 million of income tax expense associated with the adjustments.
Fiscal 2018 Full Year Results
For the fiscal year ended June 30, 2018, the Company reported net revenue of $203.2 million, an increase of 1.9% compared to $199.5 million for fiscal 2017. In fiscal 2018, revenue in the Americas increased 0.5% and revenue in Asia/Pacific & Europe increased 6.1%. Revenue for fiscal 2018 was positively impacted $0.2 million, or 0.1%, by foreign currency fluctuations associated with revenue generated in several international markets.
Gross profit during fiscal 2018 was $168.4 million, or 82.9% of revenue, compared to $166.0 million, or 83.2% of revenue, in fiscal 2017. Fiscal 2018 GAAP gross profit benefited by $0.9 million due to a change in accrued import estimates. Adjusted non-GAAP gross profit for fiscal year 2018 was $167.5 million, or 82.4%. No non-GAAP adjustments were noted for the comparable prior year period.
Commissions and incentives expense in fiscal 2018 was $98.2 million, or 48.3% of revenue, compared to $96.7 million, or 48.5% of revenue, in fiscal 2017.
SG&A during fiscal 2018 was $59.8 million, or 29.4% of revenue, compared to $64.9 million, or 32.5% of revenue, in fiscal 2017. Adjusted for class-action lawsuit expenses of $0.7 million, $0.6 million associated with net executive severance, recruiting and transition expenses, $0.1 million for other nonrecurring legal expenses and benefits from insurance reimbursements received of $0.4 million, adjusted non-GAAP SG&A expenses for fiscal 2018 were


http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12414438&doc=3

$59.0 million or 29.0% of revenue. Adjusted for expenses associated with the audit committee review of $2.7 million, $1.3 million of costs for net executive severance, recruiting and transition expenses, $0.2 million of class-action lawsuit expense and $0.2 million of other nonrecurring legal expenses, adjusted non-GAAP SG&A expenses for fiscal 2017 were $61.1 million or 30.6% of revenue.
Operating income during fiscal 2018 was $10.3 million, compared to $4.4 million in fiscal 2017. Accounting for the non-GAAP adjustments noted previously, adjusted non-GAAP operating income for fiscal 2018 was $10.3 million compared to $8.3 million for fiscal 2017. Adjusted EBITDA was $14.9 million during fiscal 2018, compared to $13.1 million for fiscal 2017.
Net income during fiscal 2018 was $5.8 million, or $0.41 per diluted share, compared to $1.6 million, or $0.11 per diluted share in fiscal 2017. Accounting for the non-GAAP adjustments noted previously, net of tax impacts of these adjustments of $42,000, as well as tax expense of $1.5 million associated with the revaluation of deferred tax assets associated with the recently enacted tax reform, adjusted non-GAAP net income for fiscal 2018 was $7.2 million, or $0.51 per diluted share, compared to adjusted non-GAAP net income of $3.9 million, or $0.27 per diluted share, for the comparable period of fiscal 2017. Non-GAAP adjustments to net income during fiscal 2017 included the SG&A expenses noted previously and a write-off of intangible assets of $0.4 million, all net of $1.9 million of income tax expense related to the adjustments.
Balance Sheet & Liquidity
The Company generated $13.3 million of cash from operations during fiscal 2018 compared to $6.6 million in fiscal 2017. The year-over-year increase in cash provided by operations during fiscal 2018 primarily relates to increases in net income and favorable changes in net working capital, including a $3.0 million reduction of inventory. The Company's cash and cash equivalents at June 30, 2018 were $16.7 million, an increase of $5.2 million when compared to $11.5 million at June 30, 2017. Total debt at June 30, 2018 was $5.4 million, a reduction of $2.0 million when compared to $7.4 million at June 30, 2017.
Fiscal Year 2019 Guidance
The Company expects to generate revenue in the range of $210 million to $220 million in fiscal year 2019 and anticipates its non-GAAP adjusted earnings per share in the range of $0.54 to $0.58. The Company's adjusted non-GAAP earnings per diluted share guidance excludes any non-operating or non-recurring expenses that may materialize during fiscal 2019. The Company is not providing GAAP earnings per diluted share guidance for fiscal 2019 due to the potential occurrence of one or more non-operating, one-time expenses, which the Company does not believe it can reliably predict.
Conference Call Information
The Company will hold an investor conference call today at 2:30 p.m. MDT (4:30 p.m. EDT). Investors interested in participating in the live call can dial (888) 394-8218 from the U.S. International callers can dial (323) 701-0225. A telephone replay will be available approximately two hours after the call concludes and will be available through Wednesday, August 22, 2018, by dialing (844) 512-2921 from the U.S. and entering confirmation code 7186992, or (412) 317-6671 from international locations, and entering confirmation code 7186992.
There will also be a simultaneous, live webcast available on the Investor Relations section of the Company's web site at https://lifevantage.gcs-web.com/events-and-presentations. The webcast will be archived for approximately 30 days.
About LifeVantage Corporation
LifeVantage Corporation (Nasdaq:LFVN) is a pioneer in Nutrigenomics - a new science dedicated to biohacking the human aging code. The company is engaged in the identification, research, development and distribution of advanced nutraceutical dietary supplements and skin care products, including Protandim®, a line of scientifically-validated dietary supplements; TrueScience®, a line of Nrf2 infused skin care products; Petandim™ for Dogs, a companion pet supplement formulated to combat oxidative stress in dogs; Axio® Smart Energy Drink mixes;


http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12414438&doc=3

PhysIQ™, a Smart Weight Management System; and Omega+, a 3-in-1 fish oil supplement. LifeVantage was founded in 2003 and is headquartered in Salt Lake City, Utah. For more information, visit www.lifevantage.com.
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", "goal", “may be”, 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 the benefits of our key initiatives, future growth and expected financial performance. 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 Securities and Exchange Commission. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this document. All forward-looking statements are based on information currently available to the Company on the date hereof, and the Company undertakes no obligation to revise or update these forward-looking statements to reflect events or circumstances after the date of this document, except as required by law.
About Non-GAAP Financial Measures
We define Non-GAAP EBITDA as earnings before interest expense, income taxes, depreciation and amortization and Non-GAAP Adjusted EBITDA as earnings before interest expense, income taxes, depreciation and amortization, stock compensation expense, other income, net, and certain other adjustments. Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies. We define Non-GAAP Net Income as GAAP net income less certain tax adjusted non-recurring one-time expenses incurred during the period and Non-GAAP Earnings per Share as Non-GAAP Net Income divided by weighted-average shares outstanding.
We are presenting Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings Per Share because management believes that they provide additional ways to view our operations when considered with both our GAAP results and the reconciliation to net income, which we believe provides a more complete understanding of our business than could be obtained absent this disclosure. Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings Per Share are presented solely as supplemental disclosure because: (i) we believe these measures are a useful tool for investors to assess the operating performance of the business without the effect of these items; (ii) we believe that investors will find this data useful in assessing shareholder value; and (iii) we use Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings Per Share internally as benchmarks to evaluate our operating performance or compare our performance to that of our competitors. The use of Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings per Share has limitations and you should not consider these measures in isolation from or as an alternative to the relevant GAAP measure of net income prepared in accordance with GAAP, or as a measure of profitability or liquidity.
The tables set forth below present Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings per Share which are non-GAAP financial measures to Net Income and Earnings per Share, our most directly comparable financial measures presented in accordance with GAAP.
Investor Relations Contact:
Scott Van Winkle, ICR
(617) 956-6736, scott.vanwinkle@icrinc.com


http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12414438&doc=3

LIFEVANTAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
 
As of
(In thousands, except per share data)
June 30, 2018
 
June 30, 2017
ASSETS
 
 
 
Current assets
 
 
 
Cash and cash equivalents
$
16,652

 
$
11,458

Accounts receivable
2,067

 
1,334

Income tax receivable
451

 
913

Inventory, net
13,627

 
16,575

Prepaid expenses and deposits
6,141

 
5,266

     Total current assets
38,938

 
35,546

 
 
 
 
Property and equipment, net
6,587

 
3,127

Intangible assets, net
1,115

 
1,247

Long-term deferred income tax asset
3,255

 
4,087

Other long-term assets
1,247

 
1,242

TOTAL ASSETS
$
51,142

 
$
45,249

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities
 
 
 
Accounts payable
$
3,813

 
$
4,850

Commissions payable
7,546

 
6,837

Income tax payable
39

 
215

Other accrued expenses
10,407

 
9,453

Current portion of long-term debt
2,000

 
2,000

Total current liabilities
23,805

 
23,355

 
 
 
 
Long-term debt
 
 
 
Principal amount
3,500

 
5,500

Less: unamortized discount and deferred offering costs
(88
)
 
(60
)
Long-term debt, net of unamortized discount and deferred offering costs
3,412

 
5,440

Other long-term liabilities
1,978

 
1,927

     Total liabilities
29,195

 
30,722

Commitments and contingencies
 
 
 
Stockholders' equity
 
 
 
Preferred stock — par value $0.0001 and $0.001 per share, 5,000 and 50,000 shares authorized, no shares issued or outstanding

 

Common stock — par value $0.0001 and $0.001 per share, 40,000 and 250,000 shares authorized and 14,073 and 14,232 issued and outstanding as of June 30, 2018 and 2017, respectively
1

 
14

Additional paid-in capital
124,663

 
121,599

Accumulated deficit
(102,731
)
 
(106,992
)
Accumulated other comprehensive income (loss)
14

 
(94
)
     Total stockholders’ equity
21,947

 
14,527

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
51,142

 
$
45,249



http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12414438&doc=3

LIFEVANTAGE CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
 
 
 
 
 
For the Three Months Ended June 30,
(unaudited)
 
Fiscal Year Ended June 30,
(In thousands, except per share data)
2018
 
2017
 
2018
 
2017
Revenue, net
$
54,033

 
$
50,641

 
$
203,204

 
$
199,489

Cost of sales
8,071

 
8,891

 
34,848

 
33,456

Gross profit
45,962

 
41,750

 
168,356

 
166,033

Operating expenses:
 
 
 
 
 
 
 
Commissions and incentives
27,069

 
23,984

 
98,193

 
96,662

Selling, general and administrative
14,594

 
16,226

 
59,840

 
64,922

Total operating expenses
41,663

 
40,210

 
158,033

 
161,584

Operating income
4,299

 
1,540

 
10,323

 
4,449

Other expense:
 
 
 
 
 
 
 
Interest expense
(99
)
 
(164
)
 
(456
)
 
(570
)
Other expense, net
(199
)
 
(616
)
 
(319
)
 
(969
)
Total other expense
(298
)
 
(780
)
 
(775
)
 
(1,539
)
Income before income taxes
4,001

 
760

 
9,548

 
2,910

Income tax expense
(1,009
)
 
(676
)
 
(3,787
)
 
(1,302
)
Net income
$
2,992

 
$
84

 
$
5,761

 
$
1,608

Net income per share:
 
 
 
 
 
 
 
Basic
$
0.21

 
$
0.01

 
$
0.41

 
$
0.12

Diluted
$
0.21

 
$
0.01

 
$
0.41

 
$
0.11

Weighted-average shares outstanding:
 
 
 
 
 
 
 
Basic
14,046

 
13,952

 
13,992

 
13,881

Diluted
14,147

 
14,085

 
14,136

 
14,118




http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12414438&doc=3

LIFEVANTAGE CORPORATION AND SUBSIDIARIES
Revenue by Region
 
 
 
 
 
 
Three Months Ended June 30,
(unaudited)
 
Fiscal Year Ended June 30,
(In thousands)
2018
 
2017
 
2018
 
2017
Americas
$
40,517

 
75
%
 
$
38,714

 
76
%
 
$
151,609

 
75
%
 
$
150,841

 
76
%
Asia/Pacific & Europe
13,516

 
25
%
 
11,927

 
24
%
 
51,595

 
25
%
 
48,648

 
24
%
Total
$
54,033

 
100
%
 
$
50,641

 
100
%
 
$
203,204

 
100
%
 
$
199,489

 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Active Independent Distributors (1)
 
 
 
 
 
 
 
 
 
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30,
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
 
 
 
 
Americas
45,000

 
71
%
 
47,000

 
73
%
 
 
 
 
 
 
 
 
Asia/Pacific & Europe
18,000

 
29
%
 
17,000

 
27
%
 
 
 
 
 
 
 
 
Total
63,000

 
100
%
 
64,000

 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Active Customers (2)
 
 
 
 
 
 
 
 
 
(unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of June 30,
 
 
 
 
 
 
 
 
 
2018
 
2017
 
 
 
 
 
 
 
 
Americas
94,000

 
81
%
 
90,000

 
80
%
 
 
 
 
 
 
 
 
Asia/Pacific & Europe
22,000

 
19
%
 
22,000

 
20
%
 
 
 
 
 
 
 
 
Total
116,000

 
100
%
 
112,000

 
100
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Active Independent Distributors have purchased product in the prior three months for retail or personal consumption.
(2) Active Customers have purchased product in the prior three months for personal consumption only.
 



http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12414438&doc=3

LIFEVANTAGE CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP Net Income to Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA:
(Unaudited)
 
 
 
 
 
Three Months Ended June 30,
 
Fiscal Year Ended June 30,
(In thousands)
2018
 
2017
 
2018
 
2017
GAAP Net income
$
2,992

 
$
84

 
$
5,761

 
$
1,608

Interest expense
99

 
164

 
456

 
570

Provision for income taxes
1,009

 
676

 
3,787

 
1,302

Depreciation and amortization
383

 
417

 
1,325

 
1,643

Non-GAAP EBITDA:
4,483

 
1,341

 
11,329

 
5,123

Adjustments:
 
 
 
 
 
 
 
Stock compensation expense
1,087

 
855

 
3,196

 
2,647

Other income, net
199

 
616

 
319

 
969

Other adjustments(1)
(594
)
 
447

 
66

 
4,348

Total adjustments
692

 
1,918

 
3,581

 
7,964

Non-GAAP Adjusted EBITDA
$
5,175

 
$
3,259

 
$
14,910

 
$
13,087

 
 
 
 
 
 
 
 
(1) Other adjustments breakout:
 
 
 
 
 
 
 
Audit committee review expenses
$

 
$

 
$

 
$
2,742

Class-action lawsuit expenses
317

 
84

 
659

 
170

Executive team severance expenses, net
377

 

 
437

 
532

Executive team recruiting and transition expenses

 
203

 
207

 
744

Other nonrecurring legal expenses

 
160

 
51

 
160

Insurance reimbursement
(425
)
 

 
(425
)
 

Change in estimate of accrued import liabilities
(863
)
 

 
(863
)
 

Total adjustments
$
(594
)
 
$
447

 
$
66

 
$
4,348




http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12414438&doc=3

LIFEVANTAGE CORPORATION AND SUBSIDIARIES
Reconciliation of GAAP Net Income to Non-GAAP Net Income and Non-GAAP Adjusted EPS:
(Unaudited)
 
 
 
 
 
Three Months Ended June 30,
 
Fiscal Year Ended June 30,
(In thousands)
2018
 
2017
 
2018
 
2017
GAAP Net income
$
2,992

 
$
84

 
$
5,761

 
$
1,608

Adjustments:
 
 
 
 
 
 
 
Executive team severance expenses, net (1)
314

 

 
374

 
39

Executive team recruiting and transition expenses

 
203

 
207

 
744

Audit committee independent review expenses

 

 

 
2,742

Class-action lawsuit expenses
317

 
84

 
659

 
170

Other nonrecurring legal expenses

 
160

 
51

 
160

Write-off of intangible assets

 
350

 

 
350

Insurance reimbursement
(425
)
 

 
(425
)
 

Change in estimate of accrued import liabilities
(863
)
 

 
(863
)
 

Tax impact of adjustments (2)
166

 
(356
)
 
(42
)
 
(1,881
)
Tax expense impact of revaluation of deferred tax assets (3)
306

 

 
1,472

 

Total adjustments, net of tax
(185
)
 
441

 
1,433

 
2,324

Non-GAAP Net Income
$
2,807

 
$
525

 
$
7,194

 
$
3,932

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30,
 
Fiscal Year Ended June 30,
 
2018
 
2017
 
2018
 
2017
Diluted earnings per share, as reported
$
0.21

 
$
0.01

 
$
0.41

 
$
0.11

Total adjustments, net of tax
(0.01
)
 
0.03

 
0.10

 
0.16

Diluted earnings per share, as adjusted
$
0.20

 
$
0.04

 
$
0.51

 
$
0.27

 
 
 
 
 
 
 
 
(1) Net of $63,000 of compensation expense benefit related to unvested stock award reversals for the fiscal year ended June 30, 2018. Net of $493,000 of compensation expense benefit related to unvested stock award reversals for the fiscal year ended June 30, 2017.
 
 
 
 
 
 
 
 
(2) Tax impact of adjustments excludes the effect of the one-time deferred tax asset adjustment.
 
 
 
 
 
 
 
 
(3) Tax impact of the remeasurement of our deferred tax assets, pursuant to the 2017 tax reform legislation. Deferred tax assets were reduced as the reversal of the underlying transactions will be deductible at the lower corporate tax rates included in the 2017 legislation