LifeVantage Announces Fourth Quarter and Full Fiscal Year 2015 Results
Full Fiscal Year 2015 Revenue Was
Generated
Company Provides Fiscal 2016 Guidance; Expects to Achieve Increased Revenue, Operating Margin and EPS
Outlines Plan for Continued NASDAQ Listing
Fourth Quarter Fiscal 2015 Highlights:
- Revenue was flat at
$45.3 million when compared sequentially to$45.2 million for the third fiscal quarter of 2015; - Revenue in the
Americas increased 2.5% and revenue inAsia/Pacific decreased 5.5% on a sequential basis; - Adjusted EBITDA decreased to
$3.1 million , compared to$3.3 million in the third fiscal quarter of 2015; - Completed implementation of annual cost structure improvements of approximately
$4 million .
Full Year Fiscal 2015 Highlights:
- Revenue was
$190.3 million compared to$214.0 million for the prior fiscal year; - Revenue in the
Americas decreased 2.2% and revenue inAsia/Pacific decreased 28.2% compared to the prior fiscal year; - Adjusted EBITDA was
$17.4 million compared to$24.5 million for the prior year; - Reduced long-term debt to
$20.7 million at the end of fiscal 2015 from$29.8 million at the end of fiscal 2014; - Ended fiscal 2015 with
$13.9 million of cash and cash equivalents; - Returned
$9.9 million to shareholders by repurchasing 7.6 million shares.
"Our fourth quarter results reflected stability in our revenue and operating results," stated
Today, the company filed a preliminary proxy statement that includes a unanimous recommendation from the Board of Directors that stockholders approve a proposal to implement a reverse split of the company's stock in order to maintain the company's listing on the
Mr.
"This reverse stock split is intended to enable us to exceed the minimum bid price and maintain continued listing on Nasdaq, which is extremely important as we look to enhance and maximize long-term shareholder value. During the past 3 years we have been very open about our desire to significantly reduce our shares outstanding and therefore, we have repurchased approximately 30 million shares. In addition, we believe that having fewer shares outstanding and a higher stock price will make our company more attractive to institutional money managers. For all of these positive reasons, we believe it is important for our shareholders to vote in favor of the proposal."
Fourth Quarter Fiscal 2015 Results
For the fourth fiscal quarter ended
Commissions and incentives expense for the fourth fiscal quarter of 2015 was
Operating income for the fourth fiscal quarter of 2015 was
Adjusted EBITDA was
Net income for the fourth fiscal quarter of 2015 was
Fiscal 2015 Full Year Results
For the full year ended
Operating income for fiscal 2015 was
Net income for fiscal 2015 was
Balance Sheet & Liquidity
The Company generated
Fiscal Year 2016 Guidance
The Company expects 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", "focus", "design" 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 tactical and strategic plans, cost savings, future financial performance, our proposed reverse stock split, future growth and distributor success. 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
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 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 | ||||||||
| (In thousands, except per share data) | ||||||||
| ASSETS | 2015 | 2014 | ||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 13,905 | $ | 20,387 | ||||
| Accounts receivable | 1,031 | 1,317 | ||||||
| Income tax receivable | 2,179 | 4,681 | ||||||
| Inventory | 9,248 | 8,826 | ||||||
| Current deferred income tax asset | 1,117 | 158 | ||||||
| Prepaid expenses and deposits | 2,995 | 4,604 | ||||||
| Total current assets | 30,475 | 39,973 | ||||||
| Property and equipment, net | 5,759 | 6,941 | ||||||
| Intangible assets, net | 1,879 | 2,014 | ||||||
| Deferred debt offering costs, net | 1,098 | 1,353 | ||||||
| Long-term deferred income tax asset | 235 | 1,285 | ||||||
| Other long-term assets | 1,433 | 2,433 | ||||||
| TOTAL ASSETS | $ | 40,879 | $ | 53,999 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 2,614 | $ | 2,854 | ||||
| Commissions payable | 6,505 | 7,594 | ||||||
| Other accrued expenses | 5,600 | 7,554 | ||||||
| Current portion of long-term debt | 11,141 | 4,700 | ||||||
| Total current liabilities | 25,860 | 22,702 | ||||||
| Long-term debt | ||||||||
| Principal amount | 10,484 | 26,125 | ||||||
| Less: unamortized discount | (853 | ) | (1,052 | ) | ||||
| Long-term debt, net of unamortized discount | 9,631 | 25,073 | ||||||
| Other long-term liabilities | 2,063 | 2,234 | ||||||
| Total liabilities | 37,554 | 50,009 | ||||||
| Commitments and contingencies - Note 11 | ||||||||
| Stockholders' equity | ||||||||
| Preferred stock - par value | - | - | ||||||
| Common stock - par value | 98 | 102 | ||||||
| Additional paid-in capital | 117,573 | 115,244 | ||||||
| Accumulated deficit | (114,095 | ) | (111,240 | ) | ||||
| Accumulated other comprehensive loss | (251 | ) | (116 | ) | ||||
| Total stockholders' equity | 3,325 | 3,990 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 40,879 | $ | 53,999 | ||||
| LIFEVANTAGE CORPORATION AND SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | |||||||||||||||
| For the Three Months Ended (Unaudited) | For the Twelve Months Ended | ||||||||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| Revenue, net | $ | 45,301 | $ | 56,038 | $ | 190,336 | $ | 213,968 | |||||||
| Cost of sales | 7,293 | 8,982 | 28,010 | 33,194 | |||||||||||
| Gross profit | 38,008 | 47,056 | 162,326 | 180,774 | |||||||||||
| Operating expenses: | |||||||||||||||
| Commissions and incentives | 21,668 | 26,968 | 91,074 | 104,525 | |||||||||||
| Selling, general and administrative | 14,782 | 15,343 | 57,353 | 56,801 | |||||||||||
| Total operating expenses | 36,450 | 42,311 | 148,427 | 161,326 | |||||||||||
| Operating income | 1,558 | 4,745 | 13,899 | 19,448 | |||||||||||
| Other income (expense): | |||||||||||||||
| Interest expense | (746 | ) | (1,181 | ) | (3,087 | ) | (3,177 | ) | |||||||
| Other income (expense), net | (103 | ) | (7 | ) | (159 | ) | 384 | ||||||||
| Total other income (expense) | (849 | ) | (1,188 | ) | (3,246 | ) | (2,793 | ) | |||||||
| Income before income taxes | 709 | 3,557 | 10,653 | 16,655 | |||||||||||
| Income tax expense | (483 | ) | (1,206 | ) | (3,666 | ) | (5,272 | ) | |||||||
| Net income | $ | 226 | $ | 2,351 | $ | 6,987 | $ | 11,383 | |||||||
| Net income per share: | |||||||||||||||
| Basic | $ | 0.00 | $ | 0.02 | $ | 0.07 | $ | 0.11 | |||||||
| Diluted | $ | 0.00 | $ | 0.02 | $ | 0.07 | $ | 0.10 | |||||||
| Weighted average shares outstanding: | |||||||||||||||
| Basic | 95,808 | 100,988 | 97,293 | 105,791 | |||||||||||
| Diluted | 96,505 | 105,609 | 99,052 | 111,599 | |||||||||||
| Other comprehensive loss, net of tax: | |||||||||||||||
| Foreign currency translation adjustment | (57 | ) | 360 | (135 | ) | (3 | ) | ||||||||
| Other comprehensive loss, net of tax: | $ | (57 | ) | $ | 360 | $ | (135 | ) | $ | (3 | ) | ||||
| Comprehensive income | $ | 169 | $ | 2,711 | $ | 6,852 | $ | 11,380 | |||||||
| LIFEVANTAGE CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||
| Revenue by Region | ||||||||||||||||||||||||||||||||||
| For the Three Months Ended (Unaudited) | For the Twelve Months ended | |||||||||||||||||||||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||||||||
| $ | 33,723 | 74 | % | $ | 39,670 | 71 | % | $ | 138,118 | 73 | % | $ | 141,227 | 66 | % | |||||||||||||||||||
| 11,578 | 26 | % | 16,368 | 29 | % | 52,218 | 27 | % | 72,741 | 34 | % | |||||||||||||||||||||||
| Total | $ | 45,301 | 100 | % | $ | 56,038 | 100 | % | $ | 190,336 | 100 | % | $ | 213,968 | 100 | % | ||||||||||||||||||
| Active Independent Distributors (1) | ||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||
| 2015 | 2014 | |||||||||||||||||||||||||||||||||
| 44,000 | 68 | % | 44,000 | 65 | % | |||||||||||||||||||||||||||||
| 21,000 | 32 | % | 24,000 | 35 | % | |||||||||||||||||||||||||||||
| Total | 65,000 | 100 | % | 68,000 | 100 | % | ||||||||||||||||||||||||||||
| Active Preferred Customers(2) | ||||||||||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||||||||||
| 2015 | 2014 | |||||||||||||||||||||||||||||||||
| 94,000 | 82 | % | 107,000 | 84 | % | |||||||||||||||||||||||||||||
| 21,000 | 18 | % | 21,000 | 16 | % | |||||||||||||||||||||||||||||
| Total | 115,000 | 100 | % | 128,000 | 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 EBITDA and Non-GAAP Adjusted EBITDA: | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| (In thousands) | ||||||||||||||||
| GAAP Net income | $ | 226 | $ | 2,351 | $ | 6,987 | $ | 11,383 | ||||||||
| Interest Expense | 746 | 1,181 | 3,087 | 3,177 | ||||||||||||
| Provision for income taxes | 483 | 1,206 | 3,666 | 5,272 | ||||||||||||
| Depreciation and amortization | 547 | 591 | 2,285 | 2,118 | ||||||||||||
| Non-GAAP EBITDA: | 2,002 | 5,329 | 16,025 | 21,950 | ||||||||||||
| Adjustments: | ||||||||||||||||
| Stock compensation expense | 301 | 784 | 1,806 | 2,953 | ||||||||||||
| Other (income) expense, net | 103 | 7 | 159 | (384 | ) | |||||||||||
| Other adjustments* | 729 | - | (554 | ) | - | |||||||||||
| Total adjustments | 1,133 | 791 | 1,411 | 2,569 | ||||||||||||
| Non-GAAP Adjusted EBITDA | $ | 3,135 | $ | 6,120 | $ | 17,436 | $ | 24,519 | ||||||||
| *Other adjustments for the three months ended | ||||||||||||||||
Investor Relations Contact:Cindy England (801) 432-9036 Director of Investor Relations -or-John Mills (646) 277-1254 Partner,ICR INC
News Provided by Acquire Media