February 01, 2012
Financial News, February 2012
Blyth Inc. (BTH—NYSE), a multi-channel designer and marketer of home fragrance and home décor, as well as health and wellness products, announced that its Board of Directors approved a change in the company’s fiscal year end from Jan. 31 to Dec. 31. This change reflects the company’s focus on direct-to-consumer businesses, which have a December year end, and the strategic divestiture of most of the company’s wholesale businesses, which had a January year end. The change in fiscal year is expected to have an insignificant impact on normalized earnings per share.
Blyth Inc. also commented on its outlook for the 12 months ending Dec. 31, 2011. Normalized earnings per share for 2011 is anticipated to be in the range of $3.30 to $3.50. This guidance excludes the discontinued operations of Midwest-CBK and Boca Java, ViSalus equity incentive charges, and an expected charge for restructuring related to PartyLite’s North American operations. This guidance is the same as prior guidance, as sales and earnings growth at ViSalus are expected to offset lower results at PartyLite.
The 2011 guidance on a reported basis is $1.65 to $1.85 and compares to prior reported earnings per share guidance of $2.23 to $2.43. This guidance includes a loss from discontinued operations of $1.00, which is higher than previous guidance of 80 cents due to higher January 2011 losses from the Midwest-CBK and Boca Java businesses. The January 2011 losses now impact 2011 earnings guidance due to the change in the company’s fiscal year end. The ViSalus equity incentive charge of 50 cents is higher than previous guidance of 27 cents due to strong performance by ViSalus. This guidance also includes 15 cents per share expected for PartyLite restructuring.
Management also updated its expectations for cash flow from operations for 2011 to approximately $35 million versus prior guidance of $45 million, reflecting the settlement of various income tax audits. Capital spending is anticipated to be approximately $7 million for 2011.
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) announced their quarterly cash dividend. The Board of Directors has authorized a 12 cents per share cash dividend. The dividend is payable on Dec. 16, 2011, to shareholders of record Dec. 9, 2011.
Educational Development Corporation 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.
ForeverGreen Worldwide Corp.
ForeverGreen Worldwide Corp. (FVRG.OB—OTCBB), a provider of nutritional foods, announced that sales for the month of November were $1.43 million, up 28.9 percent compared to November 2010 revenues. Year-to-date sales are up 31 percent to $12.75 million in the current year from $9.73 million last year.
Recapping quarterly growth for the year: Sales were $3.68 million for third quarter 2011, as compared to $2.63 million for third quarter 2010, an increase of 39.5 percent; $3.48 million for second quarter 2011, compared to $2.42 million for second quarter 2010, an increase of 43.7 percent; and $2.82 million for first quarter 2011, compared to $2.54 million for first quarter 2010, an increase of 10.9 percent.
ForeverGreen Worldwide Corp. develops, manufactures and distributes an expansive line of all-natural whole foods and products to North America, Australia, Europe, Asia and South America.
LifeVantage Corp. (LFVN.OB—OTCBB), maker of Protandim®, the Nrf2 Synergizer™ patented dietary supplement, announced that the company has entered into a pre-arranged stock repurchase plan under which it may repurchase shares of its common stock as part of its previously announced authorization to repurchase up to $5 million in shares of its common stock. LifeVantage further announced that it anticipates receiving approval to amend certain warrants to remove the price-based anti-dilution provisions contained therein, reiterated fiscal 2012 revenue and operating income guidance and outlined expectations for continued operational and strategic progress into 2012.
The company’s stock repurchase plan will operate in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934. Accordingly, transactions, if any, will be effected in accordance with the terms of the stock repurchase plan, including specified price, volume and timing conditions. The shares that may be purchased under the stock repurchase plan will be applied against and subject to the conditions of the repurchase authorization previously announced by LifeVantage on Sept. 6, 2011.
During the recent first quarter fiscal 2012, the company’s revenue increased to $20.1 million, a 214 percent improvement compared to the prior year period, and its operating income improved to $3.4 million. LifeVantage also ended the first quarter fiscal 2012 with $9.4 million in cash, an increase of $3 million from year-end fiscal 2011, and no debt, demonstrating its ability to maintain strong quarterly revenue growth while increasing its operating margin and building its cash position.
LifeVantage is a science-based nutraceutical company. The company was founded in 2003 and currently has operations in both Salt Lake City and San Diego.
Mannatech Inc. (MTEX—NASDAQ) held a special meeting of its shareholders Jan. 9, 2012, and obtained shareholders’ approval for the company’s proposed reverse stock split. Shareholders of 19,347,703 shares of Mannatech stock, which represents 73.05 percent of the total outstanding shares, voted “For” the proposal. Approval of the proposal gives Mannatech’s Board of Directors the authority to amend the company’s Articles of Incorporation and effect a reverse split of the company’s common stock at a specific ratio within the range of 1-for-10 and 1-for-15.
At a subsequent Board of Directors’ meeting held after the shareholders’ meeting, the Board of Directors passed a resolution to set the ratio for the stock split at 1-for-10. The reverse stock split became effective, and an amendment to the company’s Amended and Restated Articles of Incorporation was filed, on Jan. 13, 2012.
The trading of the company’s common stock on the Nasdaq Global Select Market on a split-adjusted basis began at the opening of trading on Jan. 17, 2012.
The company’s shareholders will not receive fractional shares in connection with the reverse stock split. Instead, each shareholder entitled to a fractional share of the company’s common stock as a result of the Reverse Stock Split will receive a cash payment in lieu of any fractional shares.
Mannatech Inc. develops high-quality health, weight and fitness, and skin care products that are based on the solid foundation of nutritional science and development standards.
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.