LifeVantage – Q4 Revenue Increase 15.5% To $51.1 Million

 

LifeVantage Corporation (Nasdaq:LFVN), a company dedicated to helping people achieve healthy living through a combination of a compelling business opportunity and scientifically validated products, today reported financial results for the fiscal 2013 fourth quarter and the full year ended June 30, 2013.

Fiscal 2013 Fourth Quarter Highlights:

• Net revenue increased 15.5% over the prior year period to $51.5 million;
• Gross profit increased to $44.2 million compared to $38.2 million in same period last year; and
• The number of active independent distributors increased 45% year-over-year and 6% on a sequential quarterly basis.

Fiscal 2013 Full Year Highlights:

• Net revenue increased 65% over the prior year to $208.2 million;
• Gross profit increased to $171.5 compared to $108.1 million in the prior year;
• Generated full year GAAP net income of $7.6 million;
• Ended year with improved cash balance of $26.3 million; and
• Repurchased approximately 3 million shares of common stock in fiscal 2013.

Douglas C. Robinson, President and Chief Executive Officer of LifeVantage, stated, In the fourth quarter, we focused on taking the necessary steps to position our business for future revenue growth and improved profitability. For the full year fiscal 2013, we delivered solid revenue growth of 65% over the prior year and increased our total number of active independent distributors and preferred customers as compared to the prior fiscal year.

Mr. Robinson continued, In fiscal 2013 we achieved our goal of strengthening our infrastructure and resources to support our expanding business with necessary investments. While we faced challenges in fiscal year 2013, we believe we are now well positioned to leverage our many operational investments as we enter fiscal 2014. We are confident in the long-term potential for LifeVantage and expect to generate revenue, operating margin, and net income growth in fiscal 2014.

Fiscal 2013 Fourth Quarter Results

For the fourth fiscal quarter ended June 30, 2013, the Company reported net revenue of $51.5 million, compared to $44.6 million for the same period in fiscal 2012, an increase of 15.5%. Revenue for the quarter was negatively impacted 7.3% by foreign currency fluctuation.

Gross profit for the fourth fiscal quarter ended June 30, 2013 increased to $44.2 million, compared to $38.2 million for the same period last year, delivering a gross margin of 85.8%, compared to 85.6% in the prior year period. The current quarter gross margin includes a benefit of approximately $0.6 million due to a reduction in estimated expenses associated with the product recall announced earlier this fiscal year.

Operating income for the fourth fiscal quarter of 2013 was $0.2 million, compared to $7.3 million in the same period last year. Operating income for the fourth fiscal quarter of 2013 includes a $1.7 million expense associated with the retirement of Dr. Joe McCord, the Company's former Chief Science Officer, and a $1.6 million expense associated with the launch of the Company's MyLifeVenture program. Operating margin in the fourth fiscal quarter of 2013 was 0.5%, compared to 16.5% in the prior year period. The decline in operating margin in the fourth quarter of 2013 is primarily due to lower sales growth in the quarter, the aforementioned fourth quarter expenses and higher operating expenses that included investments in internal resources throughout fiscal year 2013 in accordance with the Company's previously stated strategy.

Net loss for the fourth quarter of fiscal year 2013 was $0.2 million, or ($0.00) per diluted share. This compares to net income in the fourth quarter of fiscal year 2012 of $4.8 million, or $0.04 per diluted share.

Fiscal 2013 Full Year Results

For the full year ended June 30, 2013, the Company reported net revenue of $208.2 million, compared to $126.2 million in fiscal year 2012, a 65.0% increase. Revenue for the full year was negatively impacted 5.0% by foreign currency fluctuation.  

Operating income in fiscal year 2013 was $12.1 million, which includes the impact of $5.0 million of net product recall related costs as well as the aforementioned expenses related to the retirement of the Company's Chief Science Officer and the launch of MyLifeVenture. This compares to operating income of $21.5 million in the prior year.   

Net income for fiscal year 2013 was $7.6 million, or $0.06 per diluted share, which includes the impact of net recall related costs and the aforementioned operating expenses incurred in the fourth quarter, compared to $12.5 million, or $0.11 per diluted share in fiscal year 2012.   

Excluding product recall costs, non-GAAP gross profit, operating income, net income and diluted earnings per share for the full fiscal year ended June 30, 2013 were $176.3 million or 84.7%, $17.1 million or 8.2%, $11.0 million and $0.09, respectively.

 

Lifevantage Top Earners est. earnings are as follows:

 

 

 

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