Youngevity Records $38.7 Million in Q2

 

Youngevity International, Inc., a global direct marketer of nutritional and lifestyle products and also a vertically-integrated producer of gourmet coffees for the commercial, retail and direct sales channels, today reported financial results for the second quarter and six months ended June 30, 2015.

Second Quarter 2015 Highlights:

• Revenues increased 18.4% over the prior year period to $38.7 million;
• Gross Profit increased 25.7% to $23.8 million compared to the prior year period;
• Operating Income increased 84.3% to $2.3 million compared to the prior year period;
• A non-cash expense of $2.2 million was recorded in other expense due to change in fair value of warrant derivative liability;
• Adjusted EBITDA increased 63.3% to $3.3 million compared to the prior year period and 151% over the prior quarter.

We are excited to report record revenue and record adjusted EBITDA for the second quarter as we continue to see strong sales and customer growth in the United States and our international markets, stated Steve Wallach, Chief Executive Officer of Youngevity International. 

As we begin the second half of the year, we remain focused on accelerating our revenue via anticipated targeted acquisitions, international expansion, and steady organic growth in both our direct selling and coffee business segments. Our team is enthusiastic about the potential of new opportunities ahead of us to generate growth and believe that we are well positioned to deliver a record year for Youngevity and its shareholders.

Fiscal 2015 First Six Months Results

For the six months ended June 30, 2015, revenue increased 27.8% to $75.6 million as compared to $59.1 million for the six months ended June 30, 2014. During the six months ended June 30, 2015, approximately 88% of revenues were derived from direct sales and approximately 12% from commercial coffee sales. 

The increase in direct selling revenue is attributed primarily to the increase in product offerings, the increase in the number of distributors selling product and the increase in the number of customers consuming products. Additional revenues of $4.5 million were derived from the Company's acquisitions compared to the prior period. The increase in revenues in the commercial coffee segment is primarily due to the addition of green coffee business during the second quarter of 2014.

For the first six months of fiscal 2015, gross profit increased approximately 26.8% to $44.1 million as compared to $34.8 million for the six months ended June 30, 2014. For the six months ended June 30, 2015, the Company reported a net loss of $777,000 as compared to a net income of $971,000 for the six months ended June 30, 2014. The decrease of $1.7 million was primarily attributable to the non-cash pre-tax expense of $2.3 million related to the change in fair value of warrant derivative discussed above and the lower income before income taxes in the first quarter of 2015.