LifeVantage Announces Record Second Quarter Fiscal Year 2012
Net Revenue Increases 239% Over Prior Year Period to
Operating Income Improves to a Record
Company Raises Full Year Fiscal 2012 Revenue and Operating Margin Guidance
Fiscal 2012 Second Quarter Highlights Include:
-
Net revenue increased 239% to
$25.3 million compared to same quarter last year; - Operating margin doubled to 16.9% compared to 8.2% in the same quarter last year;
-
Operating income grew 603% compared to the same quarter last year to
$4.3 million ; -
Cash and cash equivalents were
$13.5 million ; - Four new directors were elected to the Board, adding significant leadership experience;
- Received approval from warrant holders for and completed a tender offer to modify certain outstanding warrants such that the Company will no longer account for these warrants as a derivative liability, which the Company believes will enable its financials to more closely reflect operating performance.
Fiscal 2012 Second Quarter Results
For the second fiscal quarter ended
Gross profit for the quarter ended
Operating expenses for the second fiscal quarter decreased as a percent of revenue to 68.5%, or
Operating income improved to
Fiscal 2012 First Six Months Results
For the six months ended
"As awareness and understanding about Protandim and LifeVantage TrueScience® Anti-Aging Cream continues to expand in consumer markets as well as among medical professionals, we believe that our business is positioned for continued long-term growth. We are seeing a growing number of distributors join our team, as evidenced by record attendance at our recent quarterly distributor convention. We look forward to building upon this positive momentum and delivering another record year for
Balance Sheet & Liquidity
The Company improved its balance sheet in the second fiscal quarter. The Company's cash balance at
On
With the warrant modification and the expiration of certain other warrants in March and
Guidance
The Company is raising its full year guidance for fiscal 2012.
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 30 days.
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 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 potential failure or unintended negative consequences of the implementation of the Company's network marketing sales channel; the Company's ability to retain independent distributors or to attract new independent distributors on an ongoing basis; the potential for third party and governmental actions involving the Company's network marketing sales channel; 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; 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 SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (UNAUDITED) | ||
| As of, | ||
|
|
|
|
| ASSETS | ||
| Current assets | ||
| Cash and cash equivalents |
|
|
| Marketable securities, available for sale | -- | 350,000 |
| Accounts receivable, net | 759,098 | 941,802 |
| Inventory | 3,034,313 | 2,124,663 |
| Current portion of deferred income taxes | 2,188,494 | -- |
| Prepaid expenses and deposits | 1,437,694 | 487,812 |
| Total current assets | 20,880,339 | 10,275,251 |
| Long-term assets | ||
| Property and equipment, net | 1,150,080 | 227,811 |
| Intangible assets, net | 1,930,987 | 1,963,277 |
| Deferred income taxes, less current portion | 613,506 | -- |
| Deposits | 92,173 | 32,173 |
| TOTAL ASSETS |
|
|
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||
| Current liabilities | ||
| Accounts payable | 1,678,760 | 799,210 |
| Commission payable | 3,025,013 | 1,999,969 |
| Reserve for sales returns | 905,441 | 435,135 |
| Income tax payable | 136,310 | 36,000 |
| Other accrued expenses | 2,867,789 | 2,206,222 |
| Customer deposits | 200,250 | 33,893 |
| Revolving line of credit and accrued interest | 433,984 | 433,984 |
| Short-term derivative liabilities | 6,056,555 | 7,435,883 |
| Total current liabilities | 15,304,066 | 13,380,296 |
| Long-term liabilities | ||
| Deferred rent | 14,510 | 21,017 |
| Capital lease | 15,979 | -- |
| Derivative liabilities | -- | 19,905,401 |
| Total liabilities | 15,334,555 | 33,306,714 |
| Commitments and contingencies | ||
| Stockholders' equity (deficit) | ||
|
Preferred stock - par value |
-- | -- |
|
Common stock - par value |
100,289 | 98,795 |
| Additional paid-in capital | 85,821,435 | 67,606,293 |
| Accumulated deficit | (76,621,874) | (88,453,607) |
| Currency translation adjustment | 32,680 | (59,683) |
| Total stockholders' equity (deficit) | 9,332,530 | (20,808,202) |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) |
|
|
The Notes included in Form 10-Q for the period ended
| LIFEVANTAGE CORPORATION AND SUBSIDIARIES | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (UNAUDITED) | ||||
|
For the three months ended |
For the six months ended |
|||
| 2011 | 2010 | 2011 | 2010 | |
| Sales, net |
|
|
|
|
| Cost of sales | 3,679,653 | 1,191,534 | 6,636,432 | 2,211,669 |
| Gross profit | 21,604,405 | 6,268,555 | 38,730,925 | 11,691,769 |
| Operating expenses: | ||||
| Sales and marketing | 13,878,045 | 4,020,603 | 24,420,599 | 7,431,446 |
| General and administrative | 3,035,868 | 1,496,069 | 5,875,630 | 3,003,162 |
| Research and development | 311,796 | 89,717 | 546,352 | 199,510 |
| Depreciation and amortization | 96,822 | 53,184 | 176,677 | 103,900 |
| Total operating expenses | 17,322,531 | 5,659,573 | 31,019,258 | 10,738,018 |
| Operating income | 4,281,874 | 608,982 | 7,711,667 | 953,751 |
| Other income and (expense): | ||||
| Interest income (expense) | 26,052 | (544,282) | (12,740) | (2,008,905) |
| Change in fair value of derivative warrant liabilities | 3,141,654 | 5,477,924 | 3,946,420 | 7,312,971 |
| Total other income | 3,167,706 | 4,933,642 | 3,933,680 | 5,304,066 |
| Net income before income taxes | 7,449,580 | 5,542,624 | 11,645,347 | 6,257,817 |
| Income tax benefit (expense) | 1,309,059 | (95,000) | 837,459 | (95,000) |
| Net income |
|
|
|
|
| Net income per share, basic |
|
|
|
|
| Net income per share, diluted |
|
|
|
|
| Weighted average shares, basic | 99,409,267 | 71,063,750 | 99,184,281 | 67,374,094 |
| Weighted average shares, diluted | 121,231,366 | 90,969,984 | 121,002,855 | 87,837,962 |
| Currency translation adjustment | 8,247 | 6,862 | 92,363 | (7,466) |
| Other comprehensive income |
|
|
|
|
The Notes included in Form 10-Q 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
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