Monday, November 14, 2011
SALT LAKE CITY, Nov. 14, 2011 (GLOBE NEWSWIRE) -- LifeVantage
Corporation (OTCBB:LFVN), maker of Protandim®, the Nrf2 Synergizer™
patented dietary supplement, today reported financial results for
the first fiscal quarter ended September 30, 2011.
Fiscal 2012 First Quarter Results
For the first fiscal quarter ended September 30, 2011, the Company
reported record net revenue of $20.1 million compared to $6.4
million for the same period in fiscal 2011, an increase of 214%. On
a sequential basis, net revenue increased 34% from the $15.0
million reported for the fiscal 2011 fourth quarter ended June 30,
2011.
Gross profit for the first quarter of fiscal 2012 increased to
$17.1 million compared to $5.4 million for the same period last
year, delivering a gross margin of 85%, compared to 84% for the
same period last year.
Operating expenses for the first quarter of fiscal 2012 decreased
as a percent of revenue to 68% or $13.7 million, compared to 80% of
revenue or $5.1 million for the same period last year, and on a
sequential basis, decreased as a percent of revenue from 73% or
$11.0 million in the fourth quarter of fiscal 2011. The increase in
the amount of operating expenses is due primarily to increased
sales commissions which are a direct result of the Company's
increased revenue. This increase also reflects greater investment
in personnel and infrastructure to position the Company for future
growth.
Operating income improved to $3.4 million for the first quarter of
fiscal 2012 compared to $0.3 in the same period last year and $2.0
million in the prior quarter. The first quarter of fiscal 2012 is
the Company's fifth consecutive quarter of achieving operating
income. Operating income margin improved to 17% in the first fiscal
quarter, compared to 5% in the same period last year and 13% in the
fourth quarter of fiscal 2011.
Net income for the first quarter of fiscal 2012 increased to $3.7
million compared to $0.7 million in the same period last year and a
net loss of $47.2 million in the prior quarter. First quarter of
fiscal 2012 net income reflects the increase in revenue, leverage
of operating expenses and a decrease in interest expense due to the
shareholders' conversion of convertible debentures and reduced
derivative expenses.
Douglas C. Robinson, Chief Executive Officer of LifeVantage,
stated, "We are excited about our strong start to fiscal 2012. Our
record first quarter results mark our eleventh consecutive quarter
of delivering top line growth as well as our fifth consecutive
quarter of achieving operating profit. Our operating margins
improved 1,200 basis points from the prior year period, and this
underscores our ability to achieve leverage in our business while
making strategic investments in our infrastructure. Based on our
first quarter results and outlook for the remainder of the year, we
are raising our annual revenue, operating income and operating
margin guidance."
Mr. Robinson continued, "As awareness and understanding about
Protandim® and TrueScience™ Anti-Aging Cream expand in consumer
markets as well as among medical professionals, we believe that our
business is positioned for continued long-term growth. We are
seeing a growing number of distributors join our team, as we had
record attendance at our recent quarterly distributor convention.
We look forward to building upon this positive momentum and
delivering another record year for LifeVantage in fiscal
2012."
Balance Sheet & Liquidity
The Company improved its balance sheet in the first quarter of
fiscal 2012. The cash balance at September 30, 2011, was $9.4
million, an increase from $6.4 million at year end fiscal 2011, due
to strong revenue growth and operating profits. The Company
generated $3.3 million of cash flow from operations in the first
quarter of fiscal 2012 compared to $0.6 million in the first
quarter of fiscal 2011.
The Company previously announced a share repurchase program that
authorizes it to utilize up to $5 million to purchase common stock
over the course of the twelve months beginning October 1, 2011. Any
such repurchases will be made only out of free cash flow from
continuing operations, and, on a quarterly basis, will not exceed
50% of free cash flow for such quarter.
Carrie McQueen, Chief Financial Officer, commented, "We are
pleased with our continued progress in improving our balance sheet
and the overall financial position of LifeVantage. To further
improve the strength of our financial statements, we are evaluating
additional measures to implement in fiscal 2012 to eliminate the
volatility in our 'Other income/(expense)' line related to the
derivative accounting required for our outstanding warrants."
Guidance
The Company is raising its fiscal 2012 guidance. For the full
fiscal year ending June 30, 2012, the Company now expects to
achieve revenue in a range of $95 million to $105 million, compared
to the previous range of $80 million to $90 million. The Company
now expects fiscal 2012 operating income in a range of $11.4
million to $14.7 million, and an operating margin of 12% to 14%.
The previous range of operating income was $8.0 million to $9.5
million, and operating margin in the range of 10.0% to 10.5%.
Conference Call Information
The Company will hold an investor conference call today at 2:30
p.m. Mountain time (4:30 p.m. Eastern time). Investors interested
in participating in the live call can dial (877) 719-9796 from the
U.S. International callers can dial (719) 325-4878. A telephone
replay will be available approximately two hours after the call
concludes and will be available through Wednesday, November 16,
2011, by dialing (877) 870-5176 from the U.S., or (858) 384-5517
from international locations, and entering confirmation code
7867452.
There also will be a simultaneous, live webcast available on the
Investor Relations section of the Company's web site at
http://investor.lifevantage.com/events.cfm. The webcast will be
archived for 30 days.
About LifeVantage Corporation
LifeVantage, (OTCBB:LFVN), makers of Protandim®, the Nrf2
Synergizer™ patented dietary supplement, is a science-based
nutraceutical company. LifeVantage is dedicated to visionary
science that promises to transform wellness and anti-aging
internally and externally with supplements that dramatically reduce
oxidative stress at the cellular level. The Company was founded in
2003 and currently has operations in both Salt Lake City, Utah and
San Diego, California. For more information, visit
www.LifeVantage.com.
LifeVantage Corporate and Subsidiaries Condenced Consolidatied
Balance Sheets