Wednesday, September 28, 2011
- Record Fourth Quarter Net Revenue Increases to $15.0
Million
- Generates Record Full Year Fiscal 2011 Operating Income of $3.7
Million
- Company Strengthens Balance Sheet and Ends Fiscal 2011 with No
Convertible Debt
- Company Expects Fiscal Year 2012 Revenue and Operating Income to
Increase Over 100%
SALT LAKE CITY, Sept. 28, 2011 /PRNewswire/ --
LifeVantage Corporation (OTCBB: LFVN), makers of Protandim®, the
Nrf2 Synergizer™ patented dietary supplement, today reported
financial results for the fourth quarter and full fiscal year ended
June 30, 2011 and issued fiscal year 2012 revenue and operating
income guidance.
(Logo:
http://photos.prnewswire.com/prnh/20090930/LIFEVANTAGELOGO)
Fiscal 2011 Fourth Quarter Results
For the fourth fiscal quarter ended June 30, 2011, the Company
reported record net revenue of $15.0 million compared to $4.4
million for the same period in fiscal 2010, an increase of 241%
from the prior year period. On a sequential basis, net revenue
increased 50% from the $10.0 million reported for the third fiscal
quarter ended March 31, 2011.
Gross profit for the fourth quarter of fiscal 2011 increased to
$12.9 million compared to $3.7 million for the same period last
year, delivering an improved gross margin of approximately 86%,
compared to 83% for the same period last year.
Operating expenses for the fourth fiscal quarter of 2011 were
$11.0 million compared to $4.0 million for the same period last
year, and on a sequential basis increased 45% from $7.6 million in
the third fiscal quarter of 2011. The increase on a sequential
basis is due primarily to increased sales commissions which are a
direct result of the Company's increased revenue. The increase also
reflects greater investment in personnel and infrastructure to
position the Company for future growth.
Operating income improved to $2.0 million for the fourth fiscal
quarter of 2011 compared to a loss of $290 thousand in the same
period last year. The fourth quarter of fiscal 2011 is the
Company's fourth consecutive quarter of achieving operating income.
Operating income margin improved to 13% in the fourth quarter
compared to a negative margin in the same period last year.
Douglas C. Robinson, Chief Executive Officer of LifeVantage,
stated, "We are extremely pleased to report a record year for
LifeVantage, as our strong financial performance underscores the
expanding awareness of Protandim® and the successful execution of
our business model. On an annual basis, our revenue more than
tripled compared to last year, and we increased our operating
income in each quarter of fiscal 2011. We also made significant
improvements to our balance sheet and ended the year in a very
healthy financial position, which provides us the financial
flexibility to make the appropriate strategic investments in fiscal
2012 to support our long-term growth opportunities."
Mr. Robinson continued, "As the scientific support of Protandim®
grows and more people seek our products to improve their overall
health and wellness, it is important for us to have the appropriate
infrastructure to support the continued growth that we believe our
business is capable of delivering. Looking toward fiscal 2012, we
anticipate that our total net revenue will more than double
compared to fiscal 2011 and our operating income will also increase
by over 100%. To ensure that we are positioned to sustain rapid
growth for years to come, we are committed to making the
appropriate investments in our sales and marketing departments,
research and development efforts, and within our corporate
infrastructure. We are very focused on improving the efficiency of
our organization and continuing to increase our operating income
while we make these investments."
Fiscal 2011 Results
For the full year ended June 30, 2011, net revenue increased 238%
to $38.9 million from $11.5 million in fiscal 2010. Gross profit
improved to $33.0 million in fiscal 2011 compared to $9.6 million
in fiscal 2010. Operating income increased to $3.7 million in
fiscal 2011, compared to an operating loss of $7.3 million in
fiscal 2010. Operating income margin improved to 9.5% for the year
compared to a loss for the prior fiscal year.
Balance Sheet & Liquidity
The Company ended fiscal 2011 with a much stronger balance sheet
than when the year began. Its cash balance improved to $6.4 million
due to strong revenue growth and operating profits generated by the
business. The Company generated $4.7 million of cash flow from
operations for the full year fiscal 2011 compared to a cash use
from operations of $4.5 million in fiscal 2010. During fiscal 2011,
an aggregate face value of $5.6 million in debt was converted into
shares of the Company's common stock, eliminating all convertible
debt.
Due to the improvements made to its balance sheet in fiscal 2011
as well as the Company's outlook for strong operating cash flow in
fiscal 2012, the Company recently 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 very
pleased with the improvements we made to our balance sheet in
fiscal 2011, as we achieved our goal of eliminating all convertible
debt by year end and building our cash balances. As we enter fiscal
2012, we expect to achieve strong top line growth, doubled
operating income and improved operating margins, even as we invest
in our company for sustained long-term growth."
Guidance
The Company anticipates strong growth in fiscal 2012. For the full
fiscal year ending June 30, 2012, the Company expects to achieve
revenue in a range of $80 million to $90 million, operating income
in a range of $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 (888) 395-3241 from the
U.S. International callers can dial (719) 325-2405. A telephone
replay will be available approximately two hours after the call
concludes and will be available through Friday, September 30, 2011,
by dialing (877) 870-5176 from the U.S., or (858) 384-5517 from
international locations, and entering confirmation code
1144258.
There also will be a simultaneous, live webcast available on the
Investor Relations section of the Company's web site at
/investor-profile.aspx. 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. Life Vantage 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, CA. For more information, visit
www.LifeVantage.com.
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," "hopes," "intends," "estimates,"
"expects," "projects," "plans," "anticipates" and variations
thereof, identify forward-looking statements, but their absence
does not mean that a statement is not forward-looking. Examples of
forward-looking statements include, but are not limited to,
statements we make regarding our anticipated revenue, operating
profitability, cash flow from operations, future investment and
growth and our expectation that we will repurchase shares. 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, the potential failure or unintended negative consequences
of the implementation of the Company's network marketing sales
channel; the Company's ability to retain independent distributors
or to attract new independent distributors on an ongoing basis; the
potential for third party and governmental actions involving the
Company's network marketing sales channel; the potential for
product liability claims against the Company; the risk that
government regulators and regulations could adversely affect the
Company's business; future laws or regulations may hinder or
prohibit the production or sale of the Company's existing product
and any future products; unfavorable publicity could materially
hurt the Company's business; and the Company's ability to protect
its intellectual property rights and the value of its product.
These and other risk factors are discussed in greater detail in the
Company's Annual Report on Form 10-K and its 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 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.
Investor Relations Contact:
Cindy England (801) 432-9036
Director of Investor Relations
-or-
John Mills (310) 954-1105
Senior Managing Director, ICR, LLC