LifeVantage Announces Record Fourth Quarter and Full Fiscal Year 2012 Results
Company Receives Approval to List on The
Fourth Quarter Net Revenue Increases 197% Over Prior Year Period to
Fourth Quarter Operating Income Improves to a Record
Company Issues Full Year Fiscal 2013 Revenue, Operating Margin, and Earning Per Share Guidance
Fiscal 2012 Fourth Quarter Highlights Compared to Same Period Last Year Include:
-
Net revenue increased 197% to
$44.6 million ; - Operating margin increased to 16.5% compared to 13.0%; and
-
Operating income grew 275% to
$7.3 million .
Fiscal 2012 Full Year Highlights Compared to Fiscal 2011 Full Year Include:
-
Net revenue increased 224% to
$126.2 million ; - Operating margin increased to17.0% compared to 9.5%;
-
Operating income grew 480% to
$21.5 million ; and -
Cash and cash equivalents grew to
$24.6 million as ofJune 30, 2012 from$6.4 million as of the prior year-end.
"Our financial and operating improvements in fiscal 2012 have also enabled us to achieve a listing on The
Nasdaq Capital Market Listing
The Company announced today that its common stock has been approved for listing on The
Fiscal 2012 Fourth Quarter Results
For the fourth fiscal quarter ended
The year-over-year sales increase was driven by increases in active independent distributors and active preferred customers. The Company defines an active independent distributor as someone who has, in the prior three months, purchased a business pack containing product and sales aids and who intends to sell product to, and actively enroll, other independent distributors and/or preferred customers. The number of active independent distributors increased to approximately 46,000 as of
Gross profit for the fourth fiscal quarter ended
Operating expenses for the fiscal year 2012 fourth quarter increased to
Operating income improved to
Net Income for the fourth quarter of fiscal year 2012 was
Fiscal 2012 Full Year Results
For the full year ended
Balance Sheet & Liquidity
The Company's cash balance at
Fiscal Year 2013 Guidance
The Company anticipates continued strong growth in fiscal 2013. LifeVantage expects to generate revenue for fiscal 2013 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 one year.
About
The
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 anticipated listing on Nasdaq, revenue, operating profitability, 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, the Company's inability to successfully expand our operations in existing and other markets and thereafter manage our growth; the Company's ability to retain independent distributors or to attract new independent distributors on an ongoing basis; the Company's ability to expand its product offerings; violations of law or our procedures by the Company's independent distributors; the potential for third-party and governmental actions involving the Company's network marketing efforts; the potential for product
liability claims against the Company; the risk that government regulators and regulations could adversely affect the Company's business; future laws or regulations may hinder or prohibit the production or sale of the Company's existing product and any future products; unfavorable publicity could materially hurt the Company's business; the Company's ability to access raw materials for its Products as it grows; and the Company's ability to protect its intellectual property rights and the value of its product. These and other risk factors are discussed in greater detail in the Company's Annual Report on Form 10-K and its 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 SUBSIDIARY | |||
| CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) | |||
| As of, | |||
| ASSETS |
|
|
|
| Current assets | |||
| Cash and cash equivalents | $ 24,647,585 | $ 6,370,974 | |
| Marketable securities, available for sale | -- | 350,000 | |
| Accounts receivable, net | 333,295 | 941,802 | |
| Inventory | 11,352,789 | 2,124,663 | |
| Current portion deferred income tax asset | 1,244,142 | -- | |
| Prepaid expenses and deposits | 1,250,156 | 487,812 | |
| Total current assets | 38,827,967 | 10,275,251 | |
| Long-term assets | |||
| Property and equipment, net | 1,996,849 | 227,811 | |
| Intangible assets, net | 1,881,642 | 1,963,277 | |
| Long-term deferred income tax asset | 1,479,273 | -- | |
| Deposits | 342,105 | 32,173 | |
| TOTAL ASSETS | $ 44,527,836 | $ 12,498,512 | |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | |||
| Current liabilities | |||
| Accounts payable | $ 3,615,967 | $ 799,210 | |
| Commissions payable | 5,630,976 | 1,999,969 | |
| Reserve for sales returns | 862,602 | 435,135 | |
| Accrued bonuses | 2,287,208 | 782,852 | |
| Income tax payable | 545,672 | 36,000 | |
| Other accrued expenses | 2,932,070 | 1,423,370 | |
| Customer deposits | 153,557 | 33,893 | |
| Revolving line of credit and accrued interest | -- | 433,984 | |
| Short-term derivative liabilities | -- | 7,435,883 | |
| Total current liabilities | 16,027,782 | 13,380,296 | |
| Long-term liabilities | |||
| Deferred rent | 216,885 | 21,017 | |
| Long-term derivative liabilities | -- | 19,905,401 | |
| Total liabilities | 16,244,667 | 33,306,714 | |
| Commitments and contingencies | |||
| Stockholders' equity (deficit) | |||
|
Preferred stock - par value |
-- | -- | |
|
Common stock - par value |
110,853 | 98,795 | |
| Additional paid-in capital | 105,154,116 | 67,606,293 | |
| Accumulated deficit | (76,960,603) | (88,453,607) | |
| Currency translation adjustment | (21,197) | (59,683) | |
| Total stockholders' equity (deficit) | 28,283,169 | (20,808,202) | |
| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT | $ 44,527,836 | $ 12,498,512 | |
The Notes included in Form 10-K for the period ended
| LIFEVANTAGE CORPORATION AND SUBSIDIARY | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
|
For the three months ended |
For the year ended |
|||
| (unaudited) | ||||
| 2012 | 2011 | 2012 | 2011 | |
| Sales, net | $ 44,603,876 | $ 15,040,561 | $ 126,182,848 | $ 38,919,223 |
| Cost of sales | 6,427,171 | 2,123,859 | 18,052,151 | 5,917,394 |
| Gross profit | 38,176,705 | 12,916,702 | 108,130,697 | 33,001,829 |
| Operating expenses: | ||||
| Sales and marketing | 24,300,511 | 8,278,379 | 68,397,356 | 21,060,213 |
| General and administrative | 5,904,836 | 2,431,836 | 16,396,631 | 7,516,106 |
| Research and development | 434,605 | 193,578 | 1,359,055 | 508,603 |
| Depreciation and amortization | 198,531 | 56,719 | 521,271 | 214,703 |
| Total operating expenses | 30,838,483 | 10,960,512 | 86,674,313 | 29,299,625 |
| Operating income | 7,338,222 | 1,956,190 | 21,456,384 | 3,702,204 |
| Other expense: | ||||
| Interest expense | (52,804) | (3,469,878) | (44,234) | (5,947,683) |
| Change in fair value of derivative warrant liabilities | -- | (45,676,318) | (6,740,525) | (48,454,271) |
| Total other expense | (52,804) | (49,146,196) | (6,784,759) | (54,401,954) |
| Net income (loss) before income taxes | 7,285,418 | (47,190,006) | 14,671,625 | (50,699,750) |
| Income tax benefit (expense) | (2,453,354) | 3,000 | (2,202,548) | (92,000) |
| Net income (loss) | $ 4,832,064 | $ (47,187,006) | $ 12,469,077 | $ (50,791,750) |
| Net income (loss) per share, basic | $ 0.04 | $ (0.56) | $ 0.12 | $ (0.69) |
| Net income (loss) per share, diluted | $ 0.04 | $ (0.56) | $ 0.11 | $ (0.69) |
| Weighted average shares, basic | 109,480,407 | 84,891,839 | 102,695,919 | 73,173,498 |
| Weighted average shares, diluted | 126,730,692 | 84,891,839 | 118,330,898 | 73,173,498 |
| Other comprehensive income (loss), net of tax: | ||||
| Foreign currency translation adjustment | 26,401 | (3,081) | 38,486 | (27,906) |
| Other comprehensive income (loss) | $ 26,401 | $ (3,081) | $ 38,486 | $ (27,906) |
| Comprehensive income (loss) | $ 4,858,465 | $ (47,190,087) | $ 12,507,563 | $ (50,819,656) |
The Notes included in Form 10-K for the period ended
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