Youngevity Reports Q2 Results Up 57% To $32.7 Million
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 of 2014.
2014 Second Quarter Highlights:
- Net revenue increased 56.6% to $32.7 million compared to $20.9 million for the second quarter of 2013.
- Gross profit increased 49.2% to $18.9 million compared to $12.7 million in the same period last year.
- Operating Income was $1.2 million, an increase of 14.9% over the prior year period.
- Adjusted EBITDA increased 17.5% to $2.0 million for the three months ended June 30, 2014 compared to $1.7 million in the same period for the prior year.
“Our quarterly results demonstrate the strength of our unique business model and we are very pleased to report record revenue,” stated Steve Wallach, Chairman and CEO of Youngevity International. “In the second quarter, we capitalized on strategic opportunities for our Company and we remain well positioned for long-term growth in the United States and globally.”
Dave Briskie, CFO of Youngevity International, said “We are very pleased to deliver record revenue and our eighth straight quarter of profitability. As in the first quarter, Q2 numbers carried a significant expense load related to our aggressive growth strategy. In fact, Q2 included over $551,000 in expenses that impacted our results. These expenses were primarily related to our international expansion, the launch of MK Collaborative, and acquisition integration expenses related to Beyond Organic and our newly acquired Nicaragua coffee plantation and processing plant. We expect to continue to invest in both organic and acquisition related opportunities to grow and improve profitability in both our direct selling and coffee business segments.”
2014 Second Quarter Results
- For the three months ended June 30, 2014, the Company reported net revenue of $32.7 million, compared to $20.9 million for the same period in 2013, an increase of 56.6%. The increase in revenue is attributed primarily to the increase in our product offerings and the number of distributors selling our product and the increase in the number of customers consuming our products. Also, $3.8 million in additional revenues was derived from the acquisitions of Beyond Organic, Inc., acquired on May 1, 2014, Heritage Makers, Inc., acquired on August 14, 2013, Good Herbs, Inc., acquired on April 28, 2014, GoFoods Global, LLC, acquired on October 1, 2013 and Biometics International Inc., acquired on November 19, 2013. The increase in revenues in commercial coffee is primarily due to the addition of the green coffee business.
- Gross profit for the second quarter ended June 30, 2014 increased to $18.9 million, compared to $12.7 million for the same period last year, an increase of 49.2%.
- Net income for the three months ended June 30, 2014 decreased to $544,000 as compared to a net income of $662,000 for the same period last year.
- EBITDA (earnings before interest, taxes, depreciation and amortization) as adjusted to remove the effect of stock based compensation expense or “Adjusted EBITDA”, was $2.0 million for the three months ended June 30, 2014 compared to $1.7 million in the same period for the prior year.
About Youngevity International Inc.
Youngevity International Inc. is a fast-growing, innovative, multi-dimensional company that offers a wide range of consumer products and services, primarily through person-to-person selling relationships that comprise a network of networks. The Company also is a vertically-integrated producer of the finest coffees for the commercial, retail and direct sales channels. The Company was formed after the merger of Youngevity Essential Life Sciences and Javalution Coffee Company in the summer of 2011. The company was formerly known as AL International, Inc. and changed its name to Youngevity International Inc. in July 2013.
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