CVSL Announces 2nd Quarter Report With 10% Increase In Revenue
CVSL, Inc. reports preliminary financial results for the quarter ended June 30, 2015.
We analyze the earnings along side the following peers of CVSL Inc. – PCM, Inc., QuinStreet, Inc. and Mannatech, Incorporated (PCMI-US, QNST-US and MTEX-US) that have also reported for this period.
Highlights
Summary numbers: Revenues of USD 32.74 million, Net Earnings of USD -1.69 million, and Earnings per Share (EPS) of USD -0.05.
Gross margins narrowed from 66.31% to 64.47% compared to the same quarter last year, operating (EBITDA) margins now -5.05% from -15.93%.
Year-on-year change in operating cash flow of -16.46% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
Earnings growth from operating margin improvements as well as one-time items.
CVSL-US‘s change in revenue this quarter compared to the same quarter last year of 69.08% is almost the same as its change in earnings, and is about average among the announced results thus far in its peer group, suggesting that CVSL-US is holding onto its market share. Also, for comparison purposes, revenues changed by 91.96% and earnings by 65.21% compared to the immediate last quarter.
Margins
The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from -19.35% to -7.12% and (2) one-time items. The company’s pretax margins are now -9.86% compared to -22.61% for the same period last year.
Company Profile
CVSL, Inc. operates as a multi-brand direct selling and micro-enterprise company, which employs operational, marketing, social networking and e-commerce strategies. The company was founded on April 12, 2007 and is headquartered in Plano, TX.
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