Youngevity International, Inc. (OTCQX: YGYI) (www.YGYI.com), a global direct marketer of nutritional and lifestyle products and also a vertically-integrated producer of fine coffees for the commercial, retail and direct sales channels, reported today its financial results for the second quarter of 2013.
Fiscal 2013 Second Quarter Results
For the second fiscal quarter ended June 30, 2013, Youngevity International’s revenue increased 8.9% to $20.9 million compared to $19.2 million for the same period in fiscal 2012.
The increase in revenue is attributed primarily to the increase in our product offerings and the number of distributors resulting from our acquisitions during 2012, the effect of the annual convention which was held during the quarter ended June 30, 2013, while last year’s convention was held during the first quarter and the organic growth of the CLR Roasters private label business.
Youngevity International’s gross profit for the second fiscal quarter ended June 30, 2013 increased approximately 15.5% to $12.7 million compared to $11.0 million recorded in the same period last year. The increase in gross profit as a percentage of revenues came primarily from the direct selling segment where we improved efficiencies in fulfillment costs and gained economies of scale as a result of an increase in revenues.
The Company reported second fiscal quarter 2013 net income of $662,000, compared to a net loss of ($36,000) for the quarter ended June 30, 2012. The increase of $698,000 was attributable to the increase in income before income taxes of $809,000, offset by an increase in income tax provision of $111,000.
As of June 30, 2013, the Company’s cash and cash equivalents were $3.6 million and working capital of $2.5 million as compared to cash and cash equivalents of $3.0 million and a working capital of $1.4 million as of December 31, 2012. The increase in cash and improvement in net working capital was primarily due to increased revenues and earnings.
Fiscal 2013 First Six Months Results
For the six months ended June 30, 2013, the Company reported net revenue of $41.7 million, compared to $35.2 million for the same period in fiscal 2012, an18.5% increase. Gross profit for the second quarter of fiscal year 2013 increased 25.5% to $25.1 million as compared to $20.0 million in the prior year period.
Net income for the second quarter of fiscal year 2013 was $1.7 million as compared to a net loss of $887,000 reported in the same period in fiscal 2012. The increase of $2.5 million was attributable to the increase in income before income taxes of $2.8 million offset by an increase in income tax provision of $301,000.
EBITDA (earnings before interest, taxes, depreciation and amortization) as adjusted to remove the effect of stock based compensation expense, or “Adjusted EBITDA”, was $3.9 million for the six months ended June 30, 2013 compared to $732,000 in the same period for the prior year.
Dave Briskie, Chief Financial Officer of Youngevity International, Inc. said, “Our second quarter results reflect strong year-over-year improvements in revenue and cash flow and we are encouraged with our continued improvement in net income and the strengthening of our balance sheet. Our profitability improvement strategy that we announced in Q3 2012 has delivered as anticipated and has helped better position the Company to execute its acquisition and international expansion strategy. ”
“Obviously with over a $3 million dollar improvement in adjusted EBITDA for the six months ended June 30, 2013 we are pleased with our progress through the second quarter,” said Steve Wallach, Chief Executive Officer of Youngevity International. He continued, “Our goals are to deliver fundamental shareholder value and to become industry leaders in both the direct selling and commercial coffee segments. We will work tirelessly until these objectives are met.”
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