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December 01, 2012

Financial News

Financial News, December 2012

Avon Products Inc.

(AVP—NYSE) For the third quarter 2012, total revenue was $2.6 billion, which decreased 8 percent, or increased 1 percent in constant dollars, compared with third quarter 2011. Total units grew 1 percent and price/mix was flat during the quarter.

Third quarter 2012 gross margin was 61.2 percent, 270 basis points lower than the prior-year quarter.

Operating profit was $106 million in the quarter and operating margin was 4.2 percent. Income from continuing operations in the third quarter of 2012 was $33 million, or 7 cents per diluted share.

The company also announced a reduction in its quarterly dividend from 23 cents per share to 6 cents per share. The dividend is payable Dec. 3, 2012, to shareholders of record on Nov. 15, 2012.

In regional results, Latin America had total revenue of $1.3 billion, a decrease of 6 percent compared to the previous year. In Europe, Middle East & Africa, total revenue was $620.7 million with a decrease of 11 percent. North America total revenue was down 8 percent with $443.6 million. Asia Pacific’s total revenue for the third quarter was $215.7 million, also down 8 percent.


AL International Inc.

(JCOF—OTC.BB) Third quarter 2012 sales were just over $ 20.6 million vs. just over $10.4 million in 2011 representing a 98 percent increase in revenue. The company’s gross profit for the same period was just over $12.4 million vs. just under $6.7 million, an 86 percent improvement for the 3-month period versus the year prior.

Corresponding expenses for the 3-month period were just under $11.9 million vs. just under $6.5 million, an 82 percent increase in expenses. Pre-tax net income from operations for the 3-month period ending Sept. 30, 2012 showed a $311,000 profit vs. a $119,000 profit in 2011, a 161 percent improvement in profitability. The company reported $1.03 million in EBITDA, versus negative EBITDA of $150,932 for the same quarter for 2011.


Blyth Inc.

(BTH—NYSE) Net sales for the third quarter ending Sept. 30, 2012 increased 40 percent to $268.8 million versus $191.5 million for the comparable prior year period primarily due to the 132 percent year-over-year sales growth at ViSalus, which was also responsible for the operating profit for the third quarter of $7.8 million this year versus a loss of $4.9 million last year.

Net earnings for the third quarter was $700,000 compared to a net loss of $5.6 million for the prior year. Diluted earnings per share for the third quarter were 4 cents this year compared to a loss of 34 cents last year. 

In the direct selling segment, third quarter net sales increased 49 percent to $239.4 million versus $161.2 million for the same period last year. Sales at ViSalus were $169.9 million in this year’s third quarter versus $73.2 million for the same period last year, an increase of 132 percent. Third quarter operating profit was $9.6 million versus a loss of $4.0 million in the same period last year. 

Total PartyLite third quarter sales of $69.5 million, versus $88.0 million last year, declined 21 percent. PartyLite’s European sales during the quarter declined 13 percent in local currency, or 23 percent in U.S. dollars. PartyLite’s U.S. sales declined 16 percent versus the prior year period. At PartyLite Canada, sales declined 25 percent in both local currency and in U.S. dollars during the quarter.

Third quarter operating profit for ViSalus was $26.1 million this year versus $4.3 million last year. Third quarter operating loss for PartyLite was $11.4 million versus a loss of $4.4 million in last year’s third quarter.  


Educational Development Corp.

(EDUC—NASDAQ) Net revenue for the quarter ended Aug. 31, 2012 was $5.46 million compared to $5.44 million and increased net earnings were $138,200 compared to $126,200 for the same period last year.

The Usborne Books and More (UBAM) Home Business Division reports a 10 percent decrease in net revenues for the quarter ended Aug. 31, 2012 compared to the same period last year.


Herbalife Ltd.

(HLF—NYSE) Third quarter net sales set a record of $1.0 billion, a 14 percent increase. The company reported net income of $117.8 million, or $1.04 per diluted share, compared to the third quarter 2011 net income of $108.0 million, or 87 cents per diluted share, reflecting an increase of 9 percent and 20 percent, respectively. Third quarter EPS of $1.04 increased 20 percent compared to the prior year period EPS.

For the quarter ended Sept. 30, 2012, the company generated cash flow from operations of $142.4 million, paid dividends of $32.4 million, and invested $20.0 million in capital expenditures. Also in the third quarter, the company repurchased $181.9 million in common shares outstanding, completing the $427.9 million repurchase agreement announced on May 3, 2012.

The company reported that its board of directors had approved a dividend of 30 cents per share to shareholders of record on Nov. 14, 2012, which was payable on Nov. 28, 2012.


Just Energy Group Inc.

(JE—NYSE and JE—TSX) For the second quarter of fiscal 2013, the three months ended Sept. 30, 2012, sales were $703.7 million or $4.91 per share compared to $600.0 million or $4.26 per share during the same period of the previous year. Gross margin was $117.2 million, an increase of 14 percent year over year. Adjusted EBITDA was $49.4 million, up 3 percent from $47.9 million in the prior year, resulting in a payout ratio of 90 percent versus 91 percent in the comparable quarter of fiscal 2012.

Just Energy Group Inc. also filed notice with the Toronto Stock Exchange and the New York Stock Exchange announcing a dividend of CAN$0.10333/common share (CAN$1.24 annually) that was paid on Nov. 30, 2012 to shareholders of record at the close of business on Nov. 15, 2012.


Medifast Inc.

(MED—NYSE) For the third quarter ended Sept. 30, 2012, Medifast net revenue increased 20 percent to $91.0 million from net revenue of $76.1 million in the third quarter of the prior year. 

Revenue in the direct sales channel, Take Shape for Life, increased 20 percent to $55.6 million in the third quarter of 2012 compared to $46.4 million in the same period last year.

Operating income for the third quarter of 2012 was $8.9 million compared to $6.7 million in the same period a year ago. The operating margin increased 100 basis points to 9.8 percent compared to 8.8 percent last year. Net income for the third quarter of 2012 was $7.2 million, or 52 cents per diluted share, compared to net income of $5.1 million, or 36 cents per diluted share, for the comparable period last year.


Nature’s Sunshine Products Inc.

(NATR—NASDAQ) For the third quarter ended Sept. 30, 2012, net sales were $91.2 million, compared with $91.1 million in the same quarter a year ago, an increase of 0.1 percent; however, net sales increased 2.1 percent in local currencies.

Operating income was $8.7 million, compared with an operating loss of $5.1 million and pro forma operating income from continuing operations of $9.6 million (excluding contract termination costs) in the same quarter a year ago, a decrease of 9.7 percent year over year.

Adjusted EBITDA was $10.4 million, compared with $11.5 million in the same quarter a year ago, a decrease of 9.6 percent.

Net income was $6.4 million, compared with a net loss of $2.3 million and pro forma net income of $6.8 million (excluding contract termination costs) in the same quarter a year ago, a decrease of 6.3 percent year over year.

NSP United States Segment Results for the Third Quarter: Net sales were $33.7 million, compared with $33.5 million in the same quarter a year ago, an increase of 0.5 percent. Operating income was $2.7 million, compared with $2.3 million in the same quarter a year ago, an increase of 15.0 percent.

The company’s board of directors declared a regular quarterly cash dividend of 5 cents per share, or 20 cents per share on an annual basis, payable on Nov. 26, 2012 to shareholders of record as of the close of business on Nov. 15, 2012.


Nu Skin Enterprises

(NUS—NYSE) Record third quarter 2012 revenue of $526.2 million is a 23 percent improvement over the prior-year period. Revenue was negatively impacted 3 percent from foreign currency fluctuations. Earnings per share for the quarter were 87 cents, a 21 percent year-over-year improvement.

In regional results, third quarter revenue in North Asia was $184.7 million, compared to $184.3 million for the same period in 2011. Third quarter revenue in Greater China increased 64 percent to $136.6 million, compared to $83.4 million in the prior-year period. Revenue in South Asia/Pacific was $91.1 million, a 47 percent improvement compared to the prior year. Sales in the quarter were negatively impacted 5 percent by foreign currency fluctuations.

Revenue in the Americas improved 19 percent to $70.5 million, compared to $59.4 million in the prior-year period. The United States posted a 15 percent revenue increase during the quarter. Revenue in Europe was $43.2 million, a 9 percent improvement over the prior-year. Results in the region were negatively impacted 14 percent by foreign currency fluctuations.

The company’s operating margin remained at 15.7 percent for the quarter, level with the prior year. Gross margin during the quarter was 83.5 percent, consistent with the prior year.

Nu Skin announced its board of directors has declared a quarterly dividend of 20 cents per share, which will be paid on Dec. 5, 2012, to stockholders of record on Nov. 14, 2012.

Dividend payments during the quarter were $11.9 million, and the company repurchased $66.3 million of its outstanding shares.


Primerica

(PRI—NYSE) In the third quarter ended Sept. 30, 2012, total revenues were $299.1 million and net income was $45.6 million, or 72 cents per diluted share. Operating revenues increased by 7 percent to $295.2 million, compared with $276.0 million in the third quarter of 2011. Net operating income grew by 21 percent to $45.1 million, or 72 cents per diluted share, compared with $37.3 million, or 49 cents per diluted share, in the third quarter of 2011.

The $75 million share repurchase program that commenced in the third quarter of 2012 was completed in October, when the company repurchased $60 million of Primerica common stock beneficially owned by funds affiliated with Warburg Pincus, LLC at a purchase price of $28.74 per share. Prior to this transaction, Primerica repurchased 488,214 shares of common stock for $14.3 million through open market repurchases.


Reliv International

(RELV—NASDAQ) Net sales for third quarter 2012 were $15.3 million, an 11.7 percent decrease from the third quarter last year. Net U.S. sales totaled $12.1 million, down from third quarter 2011 net sales of $14.1 million. Net sales outside of the United States rose 0.9 percent in the third quarter of 2012 compared to the prior-year quarter, buoyed by the European market where net sales increased by 39.2 percent.

Net income for the third quarter of 2012 was $287,000 or 2 cents per diluted share, compared to $49,000 or zero cents per diluted share in the 2011 third quarter. Income/loss from operations for the third quarter of 2012 was a loss of $32,000 compared to income of $168,000 in the same quarter of 2011.

Europe remained Reliv’s leading growth market with net sales increasing to $1.39 million in the third quarter of 2012 compared to $1.00 million in the prior-year third quarter.


Tupperware Brands

(TUP—NYSE) Third quarter sales were $594.4 million compared to $602.6 million during the same period of the previous year, down 1 percent in dollars and up 6 percent in local currency. 

GAAP net income for the quarter was $47.5 million, or 85 cents per diluted share, compared with 2011 third quarter GAAP net income and EPS of $10.5 million and 17 cents per share, respectively, which included a non-cash impairment charge of $36.1 million or 60 cents per share. 

Adjusted diluted earnings per share of 95 cents in the quarter was 12 cents, or 14 percent, better than 2011 in U.S. dollars, including a negative foreign currency impact of 9 cents. 

The company repurchased in the open market 469,000 shares for $25 million in the third quarter of 2012. Since 2007, the company has repurchased 14 million shares for $728 million. The company expects to repurchase $100 million worth of shares in the fourth quarter of 2012.


USANA Health Sciences

(USNA—NYSE) Net sales for the third quarter of 2012 increased by 15.1 percent to $165.2 million, compared with $143.5 million in the prior-year period. The growth in net sales was driven by increases in both the company’s Asia Pacific and North America/Europe regions.

Net earnings for the third quarter increased to $17.5 million, an increase of 41.2 percent, compared with the prior-year period. Earnings per share for the quarter increased by 45.7 percent to $1.18, compared with 81 cents in the third quarter of the prior year. Total diluted common shares outstanding as of Sept. 29, 2012 were 14,884, as compared with 15,205 as of Oct. 1, 2011.

Net sales in the Asia Pacific region increased by 21.6 percent to $102.7 million, compared with $84.5 million for the third quarter of the prior year. This improvement was due to strong sales growth in Southeast Asia/Pacific and Greater China.

During the third quarter of 2012, net sales in the North America/Europe region increased by 5.9 percent to $62.5 million, compared with $59.0 million in the prior-year period.

The company ended the quarter with approximately $77 million in cash and cash equivalents. Cash generated from operations totaled $19.7 million for the quarter. During the quarter, the company invested $8.9 million to repurchase 200,000 shares of the company’s stock.


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.