Financial News: January 2013
LifeVantage Corp.
LifeVantage Corp. (LFVN—NASDAQ), a science-based nutraceutical company and maker of Protandim®, the Nrf2 Synergizer® patented dietary supplement, reported financial results for the first quarter ended Sept. 30, 2012.
For the first quarter, the company reported record net revenue of $52.9 million, compared to $20.1 million for the same period in fiscal 2012, an increase of 163 percent. On a sequential quarter basis, net revenue increased 19 percent from the $44.6 million reported for the company’s 2012 fourth fiscal quarter ended June 30, 2012.
Gross profit for the first fiscal quarter ended Sept. 30, 2012 increased to $45.1 million, compared to $17.1 million for the same period last year, delivering a gross margin of 85.2 percent, compared to 85.3 percent in the prior-year period.
Operating expenses for the first quarter of fiscal year 2013 increased to $38.1 million, or 72.2 percent of revenue, from $13.7 million, or 68.2 percent of revenue, for the prior-year period. On a sequential quarter basis, operating expenses as a percentage of revenue increased slightly from 69.1 percent in the fourth fiscal quarter of 2012.
Operating income improved to $6.9 million for the first fiscal quarter, compared to $3.4 million in the same period last year. On a sequential basis, operating income declined slightly from $7.3 million in the fourth quarter of fiscal year 2012. This was the company’s ninth consecutive quarter of achieving operating income.
Net income for the first quarter of fiscal year 2013 was $4.2 million, or 3 cents per diluted share, compared to net income in the first quarter of fiscal year 2012 of $3.7 million, or 2 cents per diluted share.
On Sept. 12, 2012, the company’s common stock began trading on the NASDAQ Capital Market. Previously, the company’s common stock traded on the OTC BB.
LifeVantage is a leader in Nrf2 science and sells wellness and anti-aging products to reduce oxidative stress at the cellular level. The company was founded in 2003 and is headquartered in Salt Lake City.
Mannatech Inc.
Mannatech Inc. (MTEX—NASDAQ), a developer and provider of nutritional supplements and skincare products based on Real Food Technology® solutions, reported net income of $2.2 million, or 83 cents per diluted share, for the third quarter ending Sept. 30, 2012, compared to a net loss of $3.7 million, or $1.38 per diluted share, for the third quarter of 2011.
In achieving net income of $2.2 million for the third quarter of 2012, non-cash items impacting profitability included a reduction in a previously recognized deferred tax asset valuation allowance of approximately $1.0 million, a release of reserves related to transaction taxes of $800,000 due to the expiration of statutes of limitations, and income from foreign currency exchange rate fluctuations of $500,000.
Net sales for the third quarter of 2012 were $43.0 million, a decrease of 14.8 percent, compared to $50.5 million in the third quarter of 2011. Net sales for the United States and Canada declined 16.3 percent to $20.5 million, compared to $24.5 million in the third quarter of 2011.
International net sales of $22.5 million decreased 13.5 percent, compared to $26.0 million in the third quarter of 2011.
Mannatech Inc. develops high-quality health, weight and fitness, and skincare products that are based on the solid foundation of nutritional science and development standards. Mannatech’s proprietary products are available through independent sales associates around the globe in 22 countries.
Natural Health Trends Corp.
Natural Health Trends Corp. (NHTC—OTC.BB), a direct selling company that markets premium-quality personal-care and wellness products under the NHT Global brand, announced financial results for the third quarter period ended Sept. 30, 2012.
Total revenues for the three months ended Sept. 30, 2012 were $9.3 million, compared to $10.6 million for the same period in 2011, a decrease of 11.6 percent. The decrease in revenues for the third quarter reflects the impact of a significant, nonrecurring promotional event during 2011 related to the company’s 10-year anniversary celebration in Hong Kong. This promotion resulted in revenue increases, and did not recur in 2012.
Gross profit was $6.9 million, or 74.5 percent of net sales, compared to $8.0 million, or 76.0 percent, in the same period last year. Total expenses for the three months ended Sept. 30, 2012 were $6.2 million, down 9.4 percent, compared to $6.8 million in the comparable period of 2011. The decrease in operating expenses relates to costs associated with the 10-year anniversary event in 2011, which did not recur in 2012.
Operating income for the quarter was $789,000 compared to operating income of $1.2 million in the third quarter of 2011. Net income attributable to common stockholders of Natural Health Trends was $743,000, or 7 cents per basic and diluted share, compared to net income of $1.6 million, or 15 cents per basic and diluted share, in the same period of 2011.
Cash and cash equivalents increased to $3.7 million as of Sept. 30, 2012, from $1.6 million as of Dec. 31, 2011.
Natural Health Trends Corp. is an international direct selling and e-commerce company operating through its subsidiaries throughout Asia, North America and Europe.
Nu Skin Enterprises Inc.
Nu Skin Enterprises Inc. (NUS—NYSE) announced that it has signed an agreement to acquire NOX Technologies Inc., a biotechnology and biodiagnostic company based in Malvern, Penn., for $12.5 million. The agreement includes the acquisition of technology and patents, including previously licensed technology already utilized in connection with Nu Skin’s anti-aging research efforts.
The acquisition is subject to customary closing conditions, including approval of the transaction by the stockholders of NOX Technologies Inc.
NOX Technologies provides Nu Skin scientists with a deeper understanding of the aging process and supports the company’s ability to understand important sources of aging. arNOX, an age-related protein identified by NOX Technologies, is found on the cell surface and is capable of superoxide generation, a relevant aspect of the aging process.
NOX Technologies’ discovery of specific inhibitors of arNOX that potentially ameliorate skin damage and the signs of aging led to Nu Skin’s development of specific skincare products that are useful for improving the youthful appearance of the skin.
Established in 2003, NOX Technologies Inc. is a biotechnology and biodiagnostic company focused on the identification, characterization and detection of cell surface proteins relating to aging.
Nu Skin Enterprises Inc. has a comprehensive anti-aging product portfolio, and as a global direct selling company, operates in 53 markets worldwide and has more than 900,000 active distributors and preferred customers.
Blyth Inc.
Blyth Inc. (BTH—NYSE), a direct-to-consumer company and designer and marketer of candles, accessories for the home, and health and wellness products sold through the direct selling and direct marketing channels, announced that ViSalus, its direct seller of health and wellness products, is paying a $22 million dividend to its shareholders. As majority shareholder, Blyth receives 72.7 percent of the dividend.
Founded in 2005 with headquarters in Los Angeles and Troy, Mich., ViSalus is the company behind the Body by Vi™ Challenge, a 90-day personal health and lifestyle transformation platform.
Blyth Inc., headquartered in Greenwich, Conn., is a company focused on direct selling and direct marketing channels, selling its products primarily through PartyLite and ViSalus.
Primerica Inc.
The board of directors of Primerica Inc. (PRI—NYSE), the largest independent financial services marketing company in North America, approved payment of a quarterly dividend of 9 cents per share for the third quarter of 2012. The dividend was payable on Dec. 10, 2012, to stockholders of record as of Nov. 23, 2012.
Primerica Inc., headquartered in Duluth, Ga., is a distributor of financial products to middle-income families in North America. In addition, Primerica provides an entrepreneurial full- or part-time business opportunity for individuals seeking to earn income by distributing the company’s financial products.
Relìv International Inc.
Relìv International Inc. (RELV—NASDAQ), a nutrition and direct selling company, announced that the board of directors declared a dividend of 1 cent per share to all shareholders of record as of Nov. 19, 2012, which was payable on or about Nov. 29, 2012.
Relìv currently pays dividends twice a year, and this represents the company’s second dividend in 2012.
Relìv International Inc., based in Chesterfield, Mo., produces nutritional supplements that promote optimal nutrition along with premium skincare products. The company sells its products through an international network marketing system of independent distributors in 15 countries.
Tupperware Brands Corp.
Tupperware Brands Corp. (TUP—NYSE) announced that its board of directors declared the company’s regular quarterly dividend of 36 cents per share, payable on Dec. 31, 2012, to shareholders of record as of Dec. 19, 2012.
Tupperware Brands Corp. is a portfolio of global direct selling companies, selling innovative, premium products across multiple brands and categories through an independent salesforce of 2.7 million.
Direct Selling News has accumulated this information from public sources, including press releases and SEC filings. The information is presumed accurate and reliable. However, it is not an endorsement of any investment opportunity. Proper and considerable due diligence should be completed before making any investment.
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