Youngevity Reports Solid Fourth Quarter And Record Full Year 2013 Results

 

Youngevity International, Inc. ( www.YGYI.com ), 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 fourth quarter and full year ended December 31, 2013.

Steve Wallach, Chief Executive Officer of Youngevity International, stated, “We are pleased to report a strong fourth quarter and record profits for 2013. The growing domestic and global demand for our products combined with our strategic acquisitions and operating improvements enabled us to continue to execute our business plan.”

Mr. Wallach continued, “We are excited about the opportunities ahead of us in 2014 and we believe that we are well-positioned to deliver another record year for our valued shareholders. In addition to continuing our strong organic growth in the core United States market, we plan to expand our international presence and enter new markets as well.”

Dave Briskie, Chief Financial Officer of Youngevity, said, “Our fourth quarter and full year results reflect sustained and significant improvements in profitability, balance sheet strength and EBITDA. We began 2013 with our number one goal of building a profitable and scalable business model. We accomplished that goal. We now set our sights on accelerating our revenue via targeted acquisitions, global expansion, and steady organic growth in both the direct and coffee business segments.”

2013 Fourth Quarter Highlights:

• Net revenue increased 18.1% over the prior year period to $22.7 million.

• Gross profit increased 17.6% to $13.3 million compared to $11.3 million in the same period last year.

• Net Income increased 451.7% over the prior year period to $480,000.

• Adjusted EBITDA increased 43.0% to $1.7 million over the prior period.

2013 Full Year Highlights:

• Net Revenue increased 14.2% over the prior year to $85.6 million.

• Gross Profit increased 17.1% to $51.3 million compared to the prior year.

• Net Income increased 570.0% over the prior year to $2.7 million.

• Adjusted EBITDA increased 129.6% to $7.3 million compared to $3.2 million in the prior year.

2013 Fourth Quarter Results

For the fourth quarter ended December 31, 2013, the Company reported net revenue of $22.7 million, compared to $19.2 million for the same period in 2012, an increase of 18.1%.

Gross profit for the fourth quarter ended December 31, 2013 increased to $13.3 million, compared to $11.3 million for the same period last year, an increase of 17.6%.

Net Income for the fourth quarter of year 2013 was $480,000 compared to $87,000 for the same period last year, an increase of 451.7%.

EBITDA (earnings before interest, taxes, depreciation and amortization) as adjusted to remove the effect of stock based compensation expense or Adjusted EBITDA, was $1.7 million for the fourth quarter ended December 31, 2013 compared to $1.2 million in the same period for the prior year, an increase of 43.0%.

2013 Full Year Results

For the year ended December 31, 2013, the Company reported net revenue of $85.6 million, compared to $75.0 million in year 2012, a 14.2% increase. The increase in revenue is attributed primarily to the increase in our product offerings and the number of distributors and customers resulting from our acquisitions during 2013.

Gross Profit for the year ended December 31, 2013, increased 17.1% to $51.3 million as compared to $43.8 million for the year ended December 31, 2012. Gross Profit as a percentage of revenues increased to 59.9% for the year ended December 31, 2013, compared to 58.4% in the same period last year.

For the year ended December 31, 2013, net income increased 570.0% to $2.7 million as compared to a loss of $564,000 for the year ended December 31, 2012. The increase of $3.2 million was attributable to the increase in income before income taxes of $3.5 million offset by an increase in income tax provision of $256,000.

EBITDA (earnings before interest, taxes, depreciation and amortization) as adjusted to remove the effect of stock based compensation expense or Adjusted EBITDA, was $7.3 million for the year ended December 31, 2013 compared to $3.2 million in the same period for the prior year, an increase of 129.6%.