LifeVantage Announces First Quarter Fiscal Year 2015 Results
First Quarter Operating Income Grew 53% to
Net Income Increased 45% to
Board Authorizes New
Company Expects to Expand Into Thailand in Late Fiscal 2015
Company Reiterates Fiscal Year 2015 Guidance
First Quarter Fiscal 2015 Highlights:
-
Revenue was
$52 million compared to$51 million in the prior year period; -
Revenue growth, excluding
Japan , increased by 7% compared to the prior year period; -
Operating income improved 53% to
$7.8 million . Included in operating income is$2 million from proceeds recovered in connection with the 2012 product recall; -
Net income grew 45% to
$4.7 million or$0.05 per diluted share compared to$3.3 million or$0.03 per diluted share in the prior year period. Included in first quarter 2015 results is$0.01 per share related to recall recovery proceeds; -
Repurchased
$2 million or 1.4 million shares; and -
Successfully launched our new energy product line,
Axio .
"We achieved revenue growth, excluding
First Quarter Fiscal 2015 Results
For the first fiscal quarter ended
Operating income for the first fiscal quarter of 2015 was
Commissions and incentives for the first fiscal quarter of 2015 were
Other income and expense in the first fiscal quarter of 2015 was
Net income for the first fiscal quarter of 2015 was
Balance Sheet & Liquidity
The Company generated
Fiscal Year 2015 Guidance
The Company is reiterating its guidance for fiscal year 2015. 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, our expansion and investment in new and existing international markets, our future results of operations in
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 and other income, net. Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.
We are presenting Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA 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 and Non-GAAP Adjusted EBITDA are presented solely as a supplemental disclosure because: (i) we believe it is 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 and Non-GAAP Adjusted EBITDA internally as a benchmark to evaluate our operating performance or compare our performance to that of our competitors. The use of Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA 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 and Non-GAAP Adjusted EBITDA which are non-GAAP financial measures to Net Income, our most directly comparable financial measure presented in accordance with GAAP.
| LIFEVANTAGE CORPORATION AND SUBSIDIARIES | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (Unaudited) | ||
| (In thousands, except per share data) | As of | |
| ASSETS |
|
|
| Current assets | ||
| Cash and cash equivalents | $ 22,135 | $ 20,387 |
| Accounts receivable | 1,657 | 1,317 |
| Income tax receivable | 2,815 | 4,681 |
| Inventory | 11,009 | 8,826 |
| Current deferred income tax asset | 158 | 158 |
| Prepaid expenses and deposits | 6,016 | 4,604 |
| Total current assets | 43,790 | 39,973 |
| Property and equipment, net | 6,540 | 6,941 |
| Intangible assets, net | 1,980 | 2,014 |
| Deferred debt offering costs, net | 1,291 | 1,353 |
| Long-term deferred income tax asset | 1,285 | 1,285 |
| Other long-term assets | 1,798 | 2,433 |
| TOTAL ASSETS | $ 56,684 | $ 53,999 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities | ||
| Accounts payable | $ 4,217 | $ 2,854 |
| Commissions payable | 7,517 | 7,594 |
| Other accrued expenses | 6,939 | 7,554 |
| Current portion of long-term debt | 4,700 | 4,700 |
| Total current liabilities | 23,373 | 22,702 |
| Long-term debt | ||
| Principal amount | 24,950 | 26,125 |
| Less: unamortized discount | (1,004) | (1,052) |
| Long-term debt, net of unamortized discount | 23,946 | 25,073 |
| Other long-term liabilities | 2,169 | 2,234 |
| Total liabilities | 49,488 | 50,009 |
| Commitments and contingencies - Note 6 | ||
| Stockholders' equity | ||
|
Preferred stock - par value |
-- | -- |
|
Common stock - par value |
101 | 102 |
| Additional paid-in capital | 115,677 | 115,244 |
| Accumulated deficit | (108,523) | (111,240) |
| Accumulated other comprehensive loss | (59) | (116) |
| Total stockholders' equity | 7,196 | 3,990 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 56,684 | $ 53,999 |
| LIFEVANTAGE CORPORATION AND SUBSIDIARIES | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||
| (Unaudited) | ||
|
For the three months ended |
||
| 2014 | 2013 | |
| (In thousands, except per share data) | ||
| Revenue, net | $ 51,633 | $ 51,328 |
| Cost of sales | 5,679 | 7,809 |
| Gross profit | 45,954 | 43,519 |
| Operating expenses: | ||
| Commission and incentives | 24,574 | 25,399 |
| Selling, general and administrative | 13,615 | 13,050 |
| Total operating expenses | 38,189 | 38,449 |
| Operating income | 7,765 | 5,070 |
| Other income (expense): | ||
| Interest expense | (808) | (3) |
| Other income, net | 203 | 41 |
| Total other income (expense) | (605) | 38 |
| Income before income taxes | 7,160 | 5,108 |
| Income tax expense | (2,444) | (1,852) |
| Net income | $ 4,716 | $ 3,256 |
| Net income per share: | ||
| Basic | $ 0.05 | $ 0.03 |
| Diluted | $ 0.05 | $ 0.03 |
| Weighted average shares outstanding: | ||
| Basic | 99,597 | 114,666 |
| Diluted | 103,860 | 123,542 |
| Other comprehensive income (loss), net of tax: | ||
| Foreign currency translation adjustment | 57 | (274) |
| Other comprehensive income (loss), net of tax: | $ 57 | $ (274) |
| Comprehensive income | $ 4,773 | $ 2,982 |
| LIFEVANTAGE CORPORATION AND SUBSIDIARIES | ||||
| Revenue by Region | ||||
| (Unaudited) | ||||
|
Three months ended |
||||
| 2014 | 2013 | |||
| (In thousands) | ||||
|
|
$ 36,456 | 71% | $ 34,498 | 67% |
|
|
15,177 | 29% | 16,830 | 33% |
| Total | $ 51,633 | 100% | $ 51,328 | 100% |
| Active Independent Distributors (1) | ||||
| (Unaudited) | ||||
|
|
||||
| 2014 | 2013 | |||
|
|
44,000 | 65% | 42,000 | 63% |
|
|
24,000 | 35% | 25,000 | 37% |
| Total | 68,000 | 100% | 67,000 | 100% |
| Active Preferred Customers(2) | ||||
| (Unaudited) | ||||
|
|
||||
| 2014 | 2013 | |||
|
|
104,000 | 83% | 115,000 | 83% |
|
|
22,000 | 17% | 24,000 | 17% |
| Total | 126,000 | 100% | 139,000 | 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. | ||||
| LIFEVANTAGE CORPORATION AND SUBSIDIARIES | ||
| Reconciliation of GAAP Net Income to Non-GAAP Adjusted EBITDA: | ||
|
For the three months ended |
||
| 2014* | 2013 | |
| (In thousands) | ||
| GAAP Net income | $ 4,716 | $ 3,256 |
| Interest Expense | 808 | 3 |
| Provision for income taxes | 2,444 | 1,852 |
| Depreciation and amortization | 585 | 499 |
| Non-GAAP EBITDA: | 8,553 | 5,610 |
| Adjustments: | ||
| Stock compensation expense | 474 | 768 |
| Other income, net | (203) | (41) |
| Total adjustments | 271 | 727 |
| Non-GAAP Adjusted EBITDA | $ 8,824 | $ 6,337 |
|
*Three months ended |
||
CONTACT: Investor Relations Contact:
Cindy England (801) 432-9036
Director of Investor Relations
-or-
John Mills (646) 277-1254
Partner, ICR INC
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