LifeVantage Corporation (Nasdaq: LFVN), a leading health and
wellness company with products designed to activate optimal health
processes, today reported financial results for its first fiscal
quarter ended September 30, 2023.
First Quarter
Fiscal 2024
Summary*:
-
Revenue of $51.4 million, a decrease of 0.8% from the prior year
period. Excluding the negative impact of foreign currency
fluctuations, first quarter revenue was down approximately
0.2%;
- Revenue in the Americas increased
5.9%, including a 6.5% increase in the United States. Revenue in
Asia/Pacific & Europe decreased 16.6% and was down
approximately 14.6% excluding the negative impact of foreign
currency fluctuations;
-
Total active accounts declined 10.5% from the prior year period to
137,000, reflecting a 7.5% decline in the Americas and a 17.0%
decline in Asia/Pacific & Europe;
-
Net income per diluted share were $0.05, versus $0.05 per diluted
share a year ago;
-
Adjusted earnings per diluted share was $0.13, compared to $0.06 a
year ago; and
-
Adjusted EBITDA increased 41.4% to $4.0 million.
* All comparisons are on a year over year basis and compare the
first quarter of fiscal 2024 to the first quarter of fiscal 2023,
unless otherwise noted.
“We are very pleased with our first quarter
results, which further demonstrate the effectiveness of LV360 in
driving growth and profitability,” said Steve Fife, President and
Chief Executive Officer of Life Vantage. “Revenue in the U.S. was
up 6.5%, reflecting continued strength in key products, including a
40% year-over-year increase in sales of TrueScience® Liquid
Collagen. Adjusted EBITDA increased by 41% to $4 million and our
Adjusted EBITDA margin improved by 230 basis points versus a year
earlier. Our passionate base of independent Consultants continues
to lean into the LV360 toolset, including the Evolve compensation
plan and the Rewards Circle loyalty program, to grow their
businesses by leveraging the power of LifeVantage’s unique position
around Activating Wellness. Innovation should continue to provide a
significant tailwind to our business as we recently introduced
TrueScience® TrueRenew Daily Firming Complex and are launching
TrueScience® Liquid Collagen in Mexico, the Philippines, and Canada
in the second fiscal quarter. We remain confident in the direction
and trajectory of our business and steadfast in our commitment to
driving shareholder value.”
First Quarter Fiscal
2024 Results
For the first quarter ended September 30,
2023, the Company reported revenue of $51.4 million, a 0.8% decline
over the first quarter of fiscal 2023. Excluding the negative
impact of foreign currency fluctuations, first quarter revenue was
down 0.2%. Revenue in the Americas region for the first quarter of
fiscal 2024 increased 5.9%, including a 6.5% increase in the United
States. Revenue in the Asia/Pacific & Europe region decreased
16.6% and was negatively impacted by foreign currency fluctuations.
On a constant currency basis, revenue in Asia/Pacific & Europe
decreased approximately 14.6% for the three months ended September
30, 2023.
Gross profit for the first quarter of fiscal
2024 was $41.2 million, or 80.2% of revenue, compared to $41.8
million, or 80.8% of revenue, for the same period in fiscal 2023.
The decline in gross profit margin as a percentage of revenue was
primarily driven by a shift in product sales mix, elevated raw
material, manufacturing, shipping and warehouse fulfillment
expenses during the quarter.
Commissions and incentives expense for the first
quarter of fiscal 2024 was $22.5 million, or 43.8% of revenue,
compared to $23.8 million, or 46.0% of revenue, for the same period
in fiscal 2023. The decrease in commissions and incentives expense
as a percentage of revenue was due primarily to changes in sales
mix, as well as the timing and magnitude of promotional and
incentive programs.
Selling, general and administrative (SG&A)
expense for the first quarter of fiscal 2024 was $18.0 million, or
35.0% of revenue, compared to $16.7 million, or 32.3% of revenue,
for the same period in fiscal 2023. Adjusted for nonrecurring
expenses, which are detailed in the GAAP to non-GAAP reconciliation
tables included at the end of this press release, adjusted non-GAAP
SG&A expenses for the first quarter of fiscal 2024 were $16.6
million, or 32.4% of revenue, compared to adjusted non-GAAP
SG&A expenses for the first quarter of fiscal 2023 of $16.6
million, or 32.1% of revenue.
Operating income for the first quarter of fiscal
2024 was $0.7 million compared to $1.3 million for the first
quarter of fiscal 2023. Accounting for non-GAAP adjustments noted
previously, adjusted non-GAAP operating income for the first
quarter of fiscal 2024 was $2.1 million compared to $1.4 million
for the first quarter of fiscal 2023.
Net income for the first quarter of fiscal 2024
was $0.6 million, or $0.05 per diluted share, consistent with the
first quarter of fiscal 2023. Accounting for the non-GAAP
adjustments noted previously, net of tax, adjusted non-GAAP net
income for the first quarter of fiscal 2024 was $1.7 million, or
$0.13 per diluted share, compared to adjusted non-GAAP income of
$0.7 million, or $0.06 per diluted share for the first quarter of
fiscal 2023.
Adjusted EBITDA was $4.0 million for the first
quarter of fiscal 2024, versus $2.8 million for the comparable
period in fiscal 2023.
Balance Sheet &
Liquidity
The Company generated $4.8 million of cash from
operations during the first three months of fiscal 2024 compared to
using $1.3 million in the same period in fiscal 2023. Cash and cash
equivalents at September 30, 2023 were $18.4 million, compared
to $21.6 million at June 30, 2023, and there was no debt
outstanding.
Dividend Announcement
Today the Company announced the declaration of a
cash dividend of $0.035 per common share. The dividend will be paid
on December 15, 2023 to all stockholders of record at the close of
business on December 1, 2023.
Fiscal Year 2024 Guidance
The Company expects to generate revenue in the
range of $216 million to $226 million in fiscal year 2024 and
adjusted EBITDA of $16 million to $18 million, with adjusted
earnings per share in the range of $0.52 to $0.62. The Company
expects a full year tax rate of approximately 22% to 25%. This
guidance reflects the current trends in the business. The Company's
guidance for adjusted non-GAAP EBITDA and adjusted non-GAAP
earnings per diluted share excludes any non-operating or
non-recurring expenses that may materialize during fiscal 2024. The
Company is not providing guidance for GAAP earnings per diluted
share for fiscal 2024 due to the potential occurrence of one or
more non-operating, one-time expenses, which the Company does not
believe it can reliably predict.
Conference Call Information
The Company will hold an investor conference
call today at 2:30 p.m. MST (4:30 p.m. EST). Investors interested
in participating in the live call can dial (888) 886-7786 from the
U.S. International callers can dial (416) 764-8658. A telephone
replay will be available approximately two hours after the call
concludes and will be available through Thursday, November 16,
2023, by dialing (844) 512-2921 from the U.S. and entering
confirmation code 18370569, or (412) 317-6671 from international
locations, and entering confirmation code 18370569.
There will also be a simultaneous, live webcast
available on the Investor Relations section of the Company's web
site at http://investor.lifevantage.com/events-and-presentations or
directly at
https://viavid.webcasts.com/starthere.jsp?ei=1637803&tp_key=8c7061d526.
The webcast will be archived for approximately 30 days.
About LifeVantage Corporation
LifeVantage Corporation (Nasdaq: LFVN), the
activation company, is a pioneer in nutrigenomics, the study of how
nutrition and naturally occurring compounds affect human genes to
support good health. The Company engages in the identification,
research, development, formulation and sale of advanced
nutrigenomic activators, dietary supplements, nootropics, pre- and
pro-biotics, weight management, skin and hair care, bath &
body, and targeted relief products. The Company’s line of
scientifically-validated dietary supplements includes its flagship
Protandim® family of products, LifeVantage® Omega+, ProBio, IC
Bright®, Daily Wellness, Rise AM, Reset PM, and D3+ dietary
supplements, the TrueScience® line of skin, hair, bath & body,
and targeted relief products. The Company also markets and sells
Petandim®, its companion pet supplement formulated to combat
oxidative stress in dogs, Axio® its nootropic energy drink mixes,
and PhysIQ, its smart weight management system. LifeVantage was
founded in 2003 and is headquartered in Lehi, Utah. For more
information, visit www.lifevantage.com.
Cautionary Note Regarding Forward Looking
Statements
This document contains forward-looking
statements made pursuant to the safe harbor provisions of the
Private Securities Litigation Reform Act of 1995. Words and
expressions reflecting optimism, satisfaction or disappointment
with current prospects, as well as words such as "believe," "will,"
"hopes," "intends," "estimates," "expects," "projects," "plans,"
"anticipates," "look forward to," "goal," “may be,” and variations
thereof, identify forward-looking statements, but their absence
does not mean that a statement is not forward-looking. The
declaration and/or payment of a dividend during any quarter
provides no assurance as to future dividends, and the timing and
amount of future dividends, if any, could vary significantly in
comparison both to past dividends and to current expectations.
Examples of forward-looking statements include, but are not limited
to, statements we make regarding executing against and the benefits
of our key initiatives, future growth, including geographic and
product expansion, the impact of COVID-19 on our business, expected
financial performance, and expected dividend payments in future
quarters. Such forward-looking statements are not guarantees of
performance and the Company's actual results could differ
materially from those contained in such statements. These
forward-looking statements are based on the Company's current
expectations and beliefs concerning future events affecting the
Company and involve known and unknown risks and uncertainties that
may cause the Company's actual results or outcomes to be materially
different from those anticipated and discussed herein. These risks
and uncertainties include, among others, further deterioration to
the global economic and operating environments as a result of
future COVID-19 developments, as well as those discussed in greater
detail in the Company's Annual Report on Form 10-K and the
Company's Quarterly Report on Form 10-Q under the caption "Risk
Factors," and in other documents filed by the Company from time to
time with the Securities and Exchange Commission (the “SEC”). The
Company cautions investors not to place undue reliance on the
forward-looking statements contained in this document. All
forward-looking statements are based on information currently
available to the Company on the date hereof, and the Company
undertakes no obligation to revise or update these forward-looking
statements to reflect events or circumstances after the date of
this document, except as required by law.
About Non-GAAP Financial Measures
We define Non-GAAP EBITDA as earnings before
interest expense, income taxes, depreciation and amortization and
Non-GAAP Adjusted EBITDA as earnings before interest expense,
income taxes, depreciation and amortization, stock compensation
expense, other income, net, and certain other adjustments. Non-GAAP
EBITDA and Non-GAAP Adjusted EBITDA may not be comparable to
similarly titled measures reported by other companies. We define
Non-GAAP Net Income as GAAP net income less certain tax adjusted
non-recurring one-time expenses incurred during the period and
Non-GAAP Earnings per Share as Non-GAAP Net Income divided by
weighted-average shares outstanding.
We are presenting Non-GAAP EBITDA, Non-GAAP
Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings Per
Share because management believes that they provide additional ways
to view our operations when considered with both our GAAP results
and the reconciliation to net income, which we believe provides a
more complete understanding of our business than could be obtained
absent this disclosure. Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA,
Non-GAAP Net Income and Non-GAAP Earnings Per Share are presented
solely as supplemental disclosure because: (i) we believe these
measures are a useful tool for investors to assess the operating
performance of the business without the effect of these items; (ii)
we believe that investors will find this data useful in assessing
shareholder value; and (iii) we use Non-GAAP EBITDA, Non-GAAP
Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings Per
Share internally as benchmarks to evaluate our operating
performance or compare our performance to that of our competitors.
The use of Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net
Income and Non-GAAP Earnings per Share has limitations and you
should not consider these measures in isolation from or as an
alternative to the relevant GAAP measure of net income prepared in
accordance with GAAP, or as a measure of profitability or
liquidity.
The tables set forth below present
reconciliations of Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA,
Non-GAAP Net Income and Non-GAAP Earnings per Share, which are
non-GAAP financial measures to Net Income and Earnings per Share,
our most directly comparable financial measures presented in
accordance with GAAP.
Investor Relations
Contacts:
Reed Anderson, ICR
(646) 277-1260
reed.anderson@icrinc.com
LIFEVANTAGE CORPORATION AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
(In thousands, except per
share data) |
September 30, 2023 |
|
June 30, 2023 |
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
18,405 |
|
|
$ |
21,605 |
|
Accounts receivable |
|
2,504 |
|
|
|
1,612 |
|
Income tax receivable |
|
149 |
|
|
|
241 |
|
Inventory, net |
|
15,706 |
|
|
|
16,073 |
|
Prepaid expenses and other |
|
5,137 |
|
|
|
4,753 |
|
Total current assets |
|
41,901 |
|
|
|
44,284 |
|
|
|
|
|
Property and equipment, net |
|
9,310 |
|
|
|
9,086 |
|
Right-of-use assets |
|
9,801 |
|
|
|
8,738 |
|
Intangible assets, net |
|
422 |
|
|
|
455 |
|
Deferred income tax asset |
|
4,694 |
|
|
|
2,991 |
|
Other long-term assets |
|
476 |
|
|
|
569 |
|
TOTAL ASSETS |
$ |
66,604 |
|
|
$ |
66,123 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
6,763 |
|
|
$ |
3,505 |
|
Commissions payable |
|
6,788 |
|
|
|
6,651 |
|
Income tax payable |
|
1,522 |
|
|
|
— |
|
Lease liabilities |
|
1,660 |
|
|
|
1,521 |
|
Other accrued expenses |
|
7,966 |
|
|
|
7,932 |
|
Total current liabilities |
|
24,699 |
|
|
|
19,609 |
|
|
|
|
|
Long-term lease
liabilities |
|
12,460 |
|
|
|
11,566 |
|
Other long-term
liabilities |
|
151 |
|
|
|
299 |
|
Total liabilities |
|
37,310 |
|
|
|
31,474 |
|
Commitments and
contingencies |
|
|
|
Stockholders' equity |
|
|
|
Preferred stock — par value $0.0001 per share, 5,000 shares
authorized, no shares issued or outstanding |
|
— |
|
|
|
— |
|
Common stock — par value $0.0001 per share, 40,000 shares
authorized and 12,707 and 12,622 issued and outstanding as of
September 30, 2023 and June 30, 2023, respectively |
|
1 |
|
|
|
1 |
|
Additional paid-in capital |
|
134,953 |
|
|
|
134,314 |
|
Accumulated deficit |
|
(104,005 |
) |
|
|
(98,305 |
) |
Accumulated other comprehensive loss |
|
(1,655 |
) |
|
|
(1,361 |
) |
Total stockholders’ equity |
|
29,294 |
|
|
|
34,649 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
$ |
66,604 |
|
|
$ |
66,123 |
|
LIFEVANTAGE CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(Unaudited) |
|
|
|
|
|
Three Months Ended September 30, |
(In thousands, except per share data) |
|
2023 |
|
|
|
2022 |
|
Revenue, net |
$ |
51,364 |
|
|
$ |
51,774 |
|
Cost of sales |
|
10,180 |
|
|
|
9,942 |
|
Gross profit |
|
41,184 |
|
|
|
41,832 |
|
|
|
|
|
Operating expenses: |
|
|
|
Commissions and incentives |
|
22,473 |
|
|
|
23,813 |
|
Selling, general and administrative |
|
17,962 |
|
|
|
16,729 |
|
Total operating expenses |
|
40,435 |
|
|
|
40,542 |
|
Operating income |
|
749 |
|
|
|
1,290 |
|
|
|
|
|
Other income (expense): |
|
|
|
Interest income, net |
|
168 |
|
|
|
— |
|
Other income (expense), net |
|
(88 |
) |
|
|
(438 |
) |
Total other income
(expense) |
|
80 |
|
|
|
(438 |
) |
Income before income
taxes |
|
829 |
|
|
|
852 |
|
Income tax expense |
|
(200 |
) |
|
|
(242 |
) |
Net income |
$ |
629 |
|
|
$ |
610 |
|
Net income per share: |
|
|
|
Basic |
$ |
0.05 |
|
|
$ |
0.05 |
|
Diluted |
$ |
0.05 |
|
|
$ |
0.05 |
|
Weighted-average shares
outstanding: |
|
|
|
Basic |
|
12,537 |
|
|
|
12,457 |
|
Diluted |
|
13,109 |
|
|
|
12,495 |
|
LIFEVANTAGE CORPORATION AND SUBSIDIARIES |
|
|
|
Revenue by Region |
|
(Unaudited) |
|
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
|
(In thousands) |
|
2023 |
|
|
|
2022 |
|
|
|
|
Americas |
$ |
38,514 |
|
75 |
% |
|
$ |
36,369 |
|
70 |
% |
|
|
|
|
|
Asia/Pacific & Europe |
|
12,850 |
|
25 |
% |
|
|
15,405 |
|
30 |
% |
|
|
|
|
|
Total |
$ |
51,364 |
|
100 |
% |
|
$ |
51,774 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Accounts |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of September 30, |
|
|
|
|
|
|
|
2023 |
|
|
|
2022 |
|
|
Change from Prior Year |
|
Percent Change |
Active Independent Consultants
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
32,000 |
|
62 |
% |
|
|
37,000 |
|
59 |
% |
|
(5,000 |
) |
|
(13.5 |
)% |
Asia/Pacific & Europe |
|
20,000 |
|
38 |
% |
|
|
26,000 |
|
41 |
% |
|
(6,000 |
) |
|
(23 |
)% |
Total Active Independent Consultants |
|
52,000 |
|
100 |
% |
|
|
63,000 |
|
100 |
% |
|
(11,000 |
) |
|
(17.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Customers (2) |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
66,000 |
|
78 |
% |
|
|
69,000 |
|
77 |
% |
|
(3,000 |
) |
|
(4.3 |
)% |
Asia/Pacific & Europe |
|
19,000 |
|
22 |
% |
|
|
21,000 |
|
23 |
% |
|
(2,000 |
) |
|
(9.5 |
)% |
Total Active Customers |
|
85,000 |
|
100 |
% |
|
|
90,000 |
|
100 |
% |
|
(5,000 |
) |
|
(5.6 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Accounts (3) |
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
98,000 |
|
72 |
% |
|
|
106,000 |
|
69 |
% |
|
(8,000 |
) |
|
(7.5 |
)% |
Asia/Pacific & Europe |
|
39,000 |
|
28 |
% |
|
|
47,000 |
|
31 |
% |
|
(8,000 |
) |
|
(17.0 |
)% |
Total Active Accounts |
|
137,000 |
|
100 |
% |
|
|
153,000 |
|
100 |
% |
|
(16,000 |
) |
|
(10.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Active
Independent Consultants have purchased product in the prior three
months for retail or personal consumption. |
|
(2) Active
Customers have purchased product in the prior three months for
personal consumption only. |
|
(3) Total Active
Accounts is the sum of Active Independent Consultant accounts and
Active Customer accounts. |
|
LIFEVANTAGE CORPORATION AND SUBSIDIARIES |
Reconciliation of GAAP Net Income to Non-GAAP EBITDA and
Non-GAAP Adjusted EBITDA |
(Unaudited) |
|
|
|
Three Months Ended September 30, |
(In thousands) |
2023 |
|
2022 |
GAAP Net income |
$ |
629 |
|
|
$ |
610 |
Interest (income) expense |
|
(168 |
) |
|
|
— |
Provision for income
taxes |
|
200 |
|
|
|
242 |
Depreciation and
amortization |
|
918 |
|
|
|
841 |
Non-GAAP EBITDA: |
|
1,579 |
|
|
|
1,693 |
Adjustments: |
|
|
|
Stock compensation
expense |
|
978 |
|
|
|
602 |
Other expense, net |
|
88 |
|
|
|
438 |
Other adjustments(1) |
|
1,345 |
|
|
|
89 |
Total adjustments |
|
2,411 |
|
|
|
1,129 |
Non-GAAP Adjusted EBITDA |
$ |
3,990 |
|
|
$ |
2,822 |
|
|
|
|
(1) Other adjustments
breakout: |
|
|
|
Class-action lawsuit expenses, net of recoveries |
|
— |
|
|
|
89 |
Key management severance expenses |
|
100 |
|
|
|
— |
Other nonrecurring legal and accounting expenses |
|
1,245 |
|
|
|
— |
Total adjustments |
$ |
1,345 |
|
|
$ |
89 |
LIFEVANTAGE CORPORATION AND SUBSIDIARIES |
Reconciliation of GAAP Net Income to Non-GAAP Net Income
and Non-GAAP Adjusted EPS |
(Unaudited) |
|
|
|
Three Months Ended September 30, |
(In thousands) |
|
2023 |
|
|
|
2022 |
|
GAAP Net income |
$ |
629 |
|
|
$ |
610 |
|
Adjustments: |
|
|
|
Class-action lawsuit expenses, net of recoveries |
|
— |
|
|
|
89 |
|
Key management severance expenses |
|
100 |
|
|
|
— |
|
Other nonrecurring legal and accounting expenses |
|
1,245 |
|
|
|
— |
|
Tax impact of adjustments(1) |
|
(303 |
) |
|
|
(2 |
) |
Total adjustments, net of
tax |
|
1,042 |
|
|
|
87 |
|
Non-GAAP Net income: |
$ |
1,671 |
|
|
$ |
697 |
|
|
|
|
|
|
Three Months Ended September 30, |
|
|
2023 |
|
|
|
2022 |
|
Diluted earnings per share, as
reported |
$ |
0.05 |
|
|
$ |
0.05 |
|
Total adjustments, net of tax |
|
0.08 |
|
|
|
0.01 |
|
Non-GAAP adjusted diluted
earnings per share |
$ |
0.13 |
|
|
$ |
0.06 |
|
|
|
|
|
(1) Tax impact is
based on the estimated annual tax rate for the years ended June 30,
2024 and 2023, respectively. |
Lifevantage (NASDAQ:LFVN)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Lifevantage (NASDAQ:LFVN)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024