August 01, 2012
Financial News, August 2012
AL International (JCOF—OTC.BB), a global direct marketer of lifestyle and nutritional products and services and gourmet coffee, released first quarter 2012 financial results. In post-merger comparisons, the company reported an eleven-fold increase in revenues for the quarter, recording post-merger net sales of $16.48 million, compared to pre-merger sales of $1.45 million for the same quarter in 2011. The company also provided the status on completion of an audit.
The 2010 and 2011 audit is nearing completion, as most areas of the audit are complete. The accounting fieldwork is coming to a close and the primary audit testing phase is now behind the company. Additional analysis is required to complete the acquisition accounting component of the audit. Once this step is finalized, the company can wrap up its tax provisions and publish the two-year audit and begin the review process for Q1. The review period for Q1 is a far shorter process, and once completed the company will file its Form 10K and begin the up-listing process.
AL International was formed after the merger of Youngevity Essential Life Sciences and Javalution Coffee Company in the summer of 2011.
Blyth Inc. (BTH—NYSE), a direct-to-consumer company and a designer and marketer of candles, accessories for the home, and health and wellness products, announced that its board of directors has approved a two-for-one split of the company’s common stock in the form of a stock dividend of one share for each outstanding share. The stock dividend was payable on June 15, 2012, to holders of record at the close of business on June 1, 2012. The split will increase Blyth’s total shares outstanding from approximately 8.6 million shares to 17.2 million shares.
Blyth Inc., headquartered in Greenwich, Conn., is a multi-channel company primarily focused on direct selling, offering its products directly to the consumer through PartyLite and ViSalus.
Educational Development Corp.
Educational Development Corp. (EDUC—NASDAQ) reported results for the fiscal fourth quarter and the full year ended Feb. 29, 2012, along with their quarterly cash dividend.
For the fiscal year 2012, the company reports net revenue of $26.27 million, compared to $27.24 million for the previous year, and net earnings of $1.42 million, compared to $1.17 million. Earnings per share were 36 cents, compared to 30 cents the previous year on a fully diluted basis.
For the fourth quarter 2012, the company announced net revenues of $5.88 million, compared to $5.71 million for the same period last year. The company reported 2012 fourth quarter net earnings of $269,600, compared with $12,900 for the 2011 fourth quarter, resulting in earnings per share of 7 cents per share for 2012 fourth quarter and zero cents for 2011 fourth quarter on a fully diluted basis.
The board of directors has authorized a 12 cents per share cash dividend. The dividend was payable on June 22, 2012, to shareholders of record June 15, 2012.
Educational Development Corp. sells children’s books, including Usborne Books and the Kane/Miller line of international children’s titles through a multi-level sales organization of independent consultants, through 5,000 retail stores and over the Internet.
GeneLink Inc. (GNLK.OB—OTC.BB), a consumer genomics biotech company, reports financial results for the three months ended March 31, 2012.
On Feb. 10, 2012, the company closed on the sale of its direct selling subsidiary, GeneWize Life Sciences Inc., consummating a transaction entered into in October 2011. The sale price was $500,000 plus a monthly earn-out provision over five years, which is to total between $1.50 million and $4.50 million (dependent upon GeneWize revenues). Accompanying the sale was a licensing and distribution agreement, which provided an additional $1.50 million to GeneLink in licensing and other fees.
Quarterly net sales were $771,664, including GeneWize retail revenues through Feb. 10, 2012. The net loss for the quarter was $105,673, which included a book gain of $759,054 from the sale of GeneWize. The net operating loss was $788,468. Net cash used in operating activities was $464,468.
GeneLink Biosciences is a 17-year-old biosciences company specializing in consumer genomics. GeneWize is a beauty and wellness network marketing company that uses GeneLink’s patented DNA test assessments to provide customized nutritional supplements, skin care and gene modulating weight management products through self-directed businesses.
Just Energy Group Inc.
Just Energy Group Inc. (JE—NYSE and JE—TSX), parent company of direct seller Momentis, reported fiscal 2012 annual results.
For the year ended March 31, 2012, sales were $2.79 billion, compared to $2.95 billion in 2011. Gross margin was $517.5 million, up 7 percent year over year (5 percent per share), equaling published guidance. Adjusted EBITDA was $283.1 million, up 9 percent (7 percent per share) versus $259.0 million in fiscal 2011, exceeding published guidance of 5 percent per share.
Dividends of $1.24 per share were paid in fiscal 2012, equal to the dividends/distributions paid in fiscal 2011. Dividend payout ratio on Adjusted EBITDA was 62 percent, down from 66 percent in fiscal 2011.
New marketing channels include initial steps into Internet acquisition and telemarketing. A very high growth vehicle is the network marketing unit, Momentis. From a standing start with 3,500 independent representatives at the beginning of the year, Momentis has grown to 47,800 independent representatives at year end, March 31, 2012. With the rapid ramp-up, Just Energy is only now starting to see the benefit of this unit in new customer contracts and sales of other products.
Selling and marketing expenses for the year ended March 31, 2012, were $177.3 million, a 33 percent increase from $133.6 million reported in the prior comparative year. This increase is attributable to the 9 percent increase in customer additions as well as the increased investments related to the build-out of the independent representative network by Momentis. Excluding the $37.3 million of costs associated with the building of Momentis, sales and marketing expenses increased by 5 percent to $140.0 million.
Established in 1997, Just Energy is a competitive North American retailer of natural gas, electricity and green energy with regional offices across Canada and the United States.
LifeVantage Corp. (LFVN—OTC.BB), the maker of Protandim®, the Nrf2 Synergizer™ patented dietary supplement, reported financial results for the third quarter ended March 31, 2012.
For the third fiscal quarter ended March 31, 2012, the company reported record net revenue of $36.2 million, compared to $10.0 million for the same period in fiscal 2011, an increase of 263 percent. On a sequential quarter basis, net revenue increased 43 percent from the $25.3 million reported for the company’s 2012 second fiscal quarter ended Dec. 31, 2011.
Gross profit for the fiscal quarter ended March 31, 2012, increased to $31.2 million, compared to $8.4 million for the same period last year, delivering a gross margin of 86.2 percent, compared to 84.1 percent for the same period last year.
Operating income improved to $6.4 million for the third fiscal quarter, compared to $0.8 million in the same period last year and $4.3 million in the second fiscal quarter. Operating income margin was 17.7 percent in the third fiscal quarter, compared to 7.9 percent in the same period last year and 16.9 percent in the second fiscal quarter.
LifeVantage is a science-based nutraceutical company. The company was founded in 2003 with corporate headquarters in Salt Lake City and operations in San Diego.
Lightyear Network Solutions Inc.
Lightyear Network Solutions Inc. (LYNS—OTC. BB), an established provider of data, voice and wireless telecommunication services to business and residential customers throughout North America, announced its financial results for the first quarter ended March 31, 2012.
Non-GAAP EBITDA showed an improvement of approximately $170,000 (or 210 percent) from $80,000 to $250,000, compared with Q1 2011.
Cash generated from operations was approximately $537,000, compared with cash used in operations of approximately $462,000 in the year-ago first quarter.
The downward trend of revenue occurring during 2011 appears to be turning around as evidenced by the revenue increase over the fourth quarter 2011 by approximately $366,000 (or 2 percent).
Through its wholly owned subsidiaries, Lightyear Network Solutions Inc. provides telecommunication services to large, medium and small businesses and to residential consumers throughout North America. Lightyear Network Solutions Inc. is headquartered in Louisville, Ky.
Mannatech Inc. (MTEX—NASDAQ), a developer and provider of nutritional supplements and skincare products based on Real Food Technology® solutions, reported a net loss of $1.4 million, or 53 cents per diluted share, for the first quarter ending March 31, 2012, compared to a net loss of $4.8 million, or $1.81 per diluted share, for the first quarter of 2011.
Net sales for the first quarter of 2012 were $44.5 million, a decrease of 12.6 percent compared to $50.9 million in the first quarter of 2011. Net sales for the United States and Canada declined 15.5 percent to $22.3 million, compared to $26.4 million in the first quarter of 2011. International net sales of $22.2 million decreased 9.4 percent, compared to $24.5 million in the first 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.
Medifast Inc. (MED—NYSE), a U.S. manufacturer and provider of clinically proven, portion-controlled weight-loss products and programs, reported financial results for the first quarter ended March 31, 2012.
For the first quarter ended March 31, 2012, Medifast net revenue increased 20 percent to $88.9 million from net revenue of $74.3 million in the first quarter of the prior year.
Revenue in the direct sales channel, Take Shape For Life, increased 12 percent to $53.0 million in the first quarter of 2012, compared to $47.1 million in the same period last year.
Gross profit for the first quarter of 2012 increased 18 percent to $66.8 million, compared to $56.7 million in the first quarter of the prior year. The company’s gross profit margin decreased 120 basis points to 75.1 percent in the first quarter versus 76.3 percent in the first quarter of 2011. The company’s reported gross profit margin for fiscal year 2011 was 75.3 percent.
Operating income for the first quarter of 2012 was $6.1 million, compared to $10.1 million in the same period a year ago. The operating margin decreased to 6.9 percent, compared to 13.6 percent last year.
Net income for the first quarter of 2012 was $4.0 million, or 29 cents per diluted share, compared to net income of $6.4 million, or 44 cents per diluted share, for the comparable period last year.
Medifast Inc., founded in 1980 and located in Owings Mills, Md., sells its products and programs via four unique distribution channels: the web and national call centers, the Take Shape For Life personal coaching division, medically supervised Medifast Weight Control Centers, and a national network of wholesale physicians and medical practices.
Natural Health Trends Corp.
Natural Health Trends Corp. (NHTC—OTC.BB) announced its financial results for the quarter ended March 31, 2012. The company reported sales of $9.1 million, up 75 percent over a year ago, and earnings per share of 4 cents for the quarter, compared to losses per share of 4 cents during the comparable period in 2011.
Natural Health Trends Corp. is an international direct selling and e-commerce company operating through its subsidiaries throughout Asia, North America and Europe. The company markets premium-quality personal-care products under the NHT Global brand.
Nature’s Sunshine Products Inc.
Nature’s Sunshine Products Inc. (NATR—NASDAQ), including its subsidiary Synergy Worldwide Inc., a natural health and wellness company engaged in the manufacture and direct selling of nutritional and personal-care products, reported its consolidated financial results for the first quarter ended March 31, 2012, and reinstated a quarterly cash dividend.
The company’s board of directors authorized a regular quarterly cash dividend of 5 cents per share, or 20 cents per share on an annual basis, payable on May 29, 2012, to shareholders of record as of the close of business on May 18, 2012. The company suspended its dividend to shareholders on Aug. 10, 2009, having previously paid a dividend every quarter since 1988.
Net sales were $92.9 million, compared with $92.8 million in the same quarter a year ago. Operating income was $9.2 million, compared with $7.6 million in the same quarter of 2011, an increase of 20.4 percent.
Adjusted EBITDA was $10.9 million, compared with $8.8 million in the same quarter a year ago, an increase of 24.3 percent.
Net income was $7.2 million, compared with $6.6 million in the same quarter in 2011, an increase of 9.2 percent.
Basic and diluted net income per share was 46 cents, compared to 43 cents for the same quarter a year ago.
For Synergy Worldwide, net sales were $23.3 million, compared with $20.7 million in the same quarter in 2011, an increase of 13.0 percent. In local currencies, net sales increased 15.5 percent.
Operating income was $1.7 million, compared with $1.8 million for the same quarter in the prior year, a decrease of 8.8 percent.
Nature’s Sunshine Products, a natural health and wellness company, markets and distributes nutritional and personal-care products through a global direct salesforce of over 600,000 independent distributors in more than 40 countries.
Primerica Inc. (PRI—NYSE) announced financial results for the first quarter ended March 31, 2012. Total revenues were $286.6 million in the first quarter of 2012 and net income was $41.8 million, or 61 cents per diluted share. Operating revenues increased by 6 percent to $284.5 million in the first quarter of 2012, compared with $267.3 million in the first quarter of 2011. Net operating income was $42.4 million, or 62 cents per diluted share, in the first quarter of 2012, compared with $43.4 million, or 57 cents per diluted share, in the first quarter of 2011.
Effective Jan. 1, 2012, Primerica adopted ASU 2010-26 Accounting for Costs Associated with Acquiring or Renewing Insurance Contracts and will no longer defer certain indirect acquisition costs or costs attributable to unsuccessful efforts of acquiring life insurance policies. They adopted this accounting policy change retrospectively and, accordingly, their historical results have been adjusted to reflect the adoption on a consistent basis across all periods presented.
Investments and cash totaled $2.17 billion as of March 31, 2012. Invested asset portfolio had a net unrealized gain of $170.6 million (net of unrealized losses of $5.9 million) at March 31, 2012, up from a net unrealized gain of $153.2 million (net of unrealized losses of $11.4 million) at Dec. 31, 2011. Net realized gains for the quarter were $2.1 million, which included $0.2 million of other-than-temporary impairments.
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.
RBC Life Sciences Inc.
RBC Life Sciences Inc. (RBCL—OTC.BB), a provider of proprietary nutritional supplements, and wound care and pain management products, reported consolidated net sales of $6.1 million for the quarter ended March 31, 2012, which compares to consolidated net sales of $6.5 million for the comparable quarter in 2011. For the quarter ended March 31, 2012, the company reported a net loss of $73,000, or zero cents per share, compared to net earnings of $143,000, or 1 cent per share, for the same quarter in 2011.
Through wholly owned subsidiaries, RBC Life Sciences develops, markets and distributes high-quality nutritional supplements and personal-care products under its RBC Life brand to a growing population of consumers seeking wellness and a healthy lifestyle.
Relìv International Inc.
Relìv International Inc. (RELV—NASDAQ), a maker of nutritional supplements that promote optimal health, reported its financial results for the first quarter of 2012.
Relìv reported net sales of $19.7 million for the first quarter of 2012, compared to sales of $21.7 million for the first quarter of 2011. U.S. sales declined by 14.6 percent for the quarter, compared to the same quarter in 2011. International sales for the quarter rose 23.4 percent, led by continued strong growth in Europe.
The company reported net income of $532,000, or 4 cents per diluted share, for the first quarter of 2012, compared to net income of $610,000, or 5 cents per diluted share, for the first quarter of 2011. Income from operations for the first quarter of 2012 was $914,000, compared to $1.08 million in the same quarter of 2011.
Net sales in Europe increased by 120 percent to $1.6 million in the first quarter of 2012, compared to $724,000 in the prior-year first quarter.
Sales in Asia increased by 7.3 percent in the first quarter of 2012, compared to the prior-year quarter, led by the Philippines.
In related news, Relìv announced that the board of directors declared a dividend of 2 cents per share to all holders of record as of May 18, 2012, payable on or about May 29, 2012.
The dividend represents an increase of 1 cent per share over the dividend announced in November 2011.
Relìv International Inc., based in Chesterfield, Mo., produces dietary supplements that promote optimal health. Relìv sells its products through an international network marketing system of independent distributors in 15 countries.
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