ForeverGreen Q3 Sales Down 50% To $8 Million
ForeverGreen Worldwide Corporation, a leading direct marketing company and provider of health-centered products, announced today financial results for the third quarter ended September 30, 2016.
During the last couple of years, the Company has focused on top line revenue growth. The Company's focus has now shifted to driving Company profitability, which in turn will drive shareholder value.
The nine month period in 2016 has seen the Company implement changes, regarding general and administrative expenses, which will reduce costs and put the Company in a much better position to deliver future positive shareholder results. While the company has seen a decline in the top-line revenue, the cost cutting initiatives have reduced the break-even point by almost 50%, commented CFO Jack Eldridge.
The Company continues to look for opportunities to improve upon or expand the restructuring and cost cutting initiatives implemented in the first, second and third quarters.
As previously mentioned, management has prompted cost cutting measures to reduce overhead and anticipates the November launch of Prodigy-5 will grow revenues.
Pre-orders for the product currently total more than 30,000 cases of product. New products have been and will continue to be introduced to bolster Member recruiting and product sales, commented CEO Ron Williams.
Third Quarter Financial Results
- Sales decreased to $8,238,081 from $16,606,907 for Q3 2015
- Gross profit decreased to $5,959,975 compared to $12,723,987 during Q3 2015
- Operating loss was $512,362 compared to operating loss of $278,462
- Net loss totaled $631,620 or $(0.02) EPS versus a net loss of $371,401 or $(0.01) EPS
- Excluding non-recurring costs, net loss totaled $631,620 versus net loss of $371,401 during Q3 2015
- Interest expense increased to $152,399 or 1.8% of sales compared to $76,633 or 0.5% of sales during Q3 2015
- Deferred revenue of $91,907 compared to $87,396 for December 31, 2015
Third Quarter Highlights
- Dr. Balamurali Ambati, Ph.D., M.D. joined ForeverGreen's scientific advisory board
- With the addition of Dr. Ambati, ForeverGreen also acquired the exclusive, proprietary technology, Nutrisorb
- Announcement of new global Xpress model product, Prodigy-5
- Rick Redford joined the team as an executive team leader to help drive global sales. Redford brings over 25 years of successful Direct Selling industry experience
- August saw the announcement of ForeverGreen's continued commitment to overall cost reductions and a path to profitability
Results for nine months, ending September 30, 2015, included:
- Sales decreased to $30,980,113 versus $49,884,864
- Gross profit decreased to $21,793,786 from $37,769,200
- Operating loss was $1,272,323 versus an operating loss of $$1,039,763 during the first three quarters of 2015
- Net loss decreased to $964,420 or $(0.04) EPS as compared to a net loss of $1,482,820 or $(0.06) EPS during the first nine months of 2015
- Interest expense totaled $384,207 compared to $215,849 during the comparable period in 2015
- Total assets increased to $9,222,912 from $7,781,738 on December 31, 2015
- Total liabilities increased to $11,432,816 from $9,188,688 on December 31, 2015
CFO Jack Eldridge concluded, Cost saving measures deemed to be effective have included a reduction in labor force, restructuring of lease agreements, revised pricing of certain products to enhance sales incentives, and a marketing plan which involves more interaction with a broad scope of customers and Members.
On October 18, 2016, as part of our expense restructuring initiative, the Company negotiated the exit from one building lease so that they could consolidate the corporate offices and warehouse all within the same space. The consolidation has been received with very positive feedback from both employees and field sales leaders.
About ForeverGreen Worldwide
ForeverGreen Worldwide Corporation develops, manufactures and distributes an expansive line of all natural whole foods and products to North America, Australia, Europe, Asia, Africa and South America, including their new global Xpress offerings, PowerStrips, SolarStrips and BeautyStrips. They also offer their new North America weight-management line Ketopia, along with Azul and FrequenSea, whole-food beverages with industry exclusive marine phytoplankton, a line of hemp-based whole-food products, immune support and weight management products, Pulse-8 powdered L-arginine formula, 24Karat Chocolate.