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December 21, 2011

Financial News

Financial News, January 2012

GeneLink Inc.

GeneLink Inc. (GNLK.OB—OTCBB) reported financial results for the quarter ended Sept. 30, 2011.

Financial results for third quarter 2011 comprise mainly sales from the company’s GeneWize direct selling subsidiary, which is in the process of being sold to Capsalus Corp. (WELL.OB—OTCBB). Net sales were $1.07 million compared to $1.88 million in the prior year. Gross profit margins decreased to 59 percent, compared to 66.8 percent in the prior year. Operating losses were $880,000 compared to $823,000 in the prior year.

GeneLink is a 17-year-old biosciences company specializing in consumer genomics. GeneLink’s patented technologies include proprietary DNA assessments linked to personalized nutrition, skincare and wellness applications and products.

LifeVantage Corp.

LifeVantage Corp. (LFVN.OB—OTCBB) reported financial results for the first fiscal quarter ended Sept. 30, 2011.

For the first fiscal quarter 2012, the company reported record net revenue of $20.1 million, compared to $6.4 million for the same period in fiscal 2011. On a sequential basis, net revenue increased 34 percent 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 percent, compared to 84 percent for the same period last year.

Operating income improved to $3.4 million for the first quarter of fiscal 2012, compared to $300,000 in the same period last year and $2.0 million in the prior quarter. Operating income margin improved to 17 percent in the first fiscal quarter, compared to 5 percent in the same period last year and 13 percent in the fourth quarter of fiscal 2011.

Net income for the first quarter of fiscal 2012 increased to $3.7 million, compared to $700,000 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.

LifeVantage, a science-based nutraceutical company founded in 2003, is the maker of Protandim®, the Nrf2 Synergizer™ patented dietary supplement, with current operations in both Salt Lake City and San Diego.

ForeverGreen Worldwide Corp.

ForeverGreen Worldwide Corp. (FVRG.OB—OTCBB) announced third quarter 2011 earnings. Sales for the quarter ending Sept. 30, 2011, were $3.68 million, as compared to $2.63 million for third quarter 2010. This is an increase of 39.5 percent. Net losses for the quarter were $39,400 or 0 cents EPS, as compared to a net loss of $76,700 or 1 cent EPS during the corresponding period of 2010.

For the nine months, sales were $9.99 million vs. $7.62 million in the first nine months of 2011, an increase of 31.1 percent. Net losses for the first nine months of 2011 were $587,700 or 4 cents EPS compared to $228,700 or 1 cent EPS during the comparable period in 2010. During the first nine months of the year cash increased $106,300 to $284,400 compared to a net decrease in cash of $199,600 to $56,600 for the first nine months of last year.

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.

Tupperware Brands Corp.

Tupperware Brands Corp. (TUP—NYSE) announced that its board of directors declared the company’s regular quarterly dividend of 30 cents per share, payable on Jan. 4, 2012, to shareholders of record as of Dec. 20, 2011.

Tupperware Brands Corp. is a portfolio of global direct selling companies, selling innovative, premium products across multiple brands and categories through an independent sales force of 2.8 million. Categories include design-centric preparation, storage and serving solutions for the kitchen and home as well as beauty and personal care products.

Blyth Inc.

Blyth Inc. (BTH—NYSE) announced that its board of directors has declared a special cash dividend of $1.50 per share on the company’s common stock, for a total dividend payment of approximately $12.5 million. The special dividend is payable on Dec. 15, 2011, to shareholders of record as of Dec. 1, 2011.

The special dividend declared is in addition to regular semiannual dividends declared and paid during the fiscal year ending Jan. 31, 2012, totaling 20 cents per share on the company’s common stock. Accordingly, inclusive of the special dividend announced, the company will declare and pay dividends of $1.70 per share, or $14.2 million, in fiscal year 2012.

Blyth Inc., headquartered in Greenwich, Conn., is a multichannel company primarily focused on direct selling. The company designs and markets home fragrance products and decorative accessories, as well as weight management products, nutritional supplements and energy drink mixes through PartyLite and ViSalus Sciences. These products are sold through the home party plan method of direct selling and through network marketing, respectively

Primerica Inc.

The board of directors of Primerica Inc. (PRI—NYSE) approved payment of a quarterly dividend of 3 cents. The dividend is payable on Dec. 9, 2011, to stockholders of record as of Nov. 28, 2011.

Primerica Inc., headquartered in Duluth, Ga. and one of the largest independent financial services marketing companies in North America, is a distributor of financial products to middle-income families in North America providing term life insurance protection, investment and savings, and other financial products.

Lightyear Network Solutions Inc.

Lightyear Network Solutions Inc. (LYNS.OB—OTCBB) announced its financial results for the quarter ended Sept. 30, 2011. Results for the third quarter of 2011 include Lightyear’s acquisition of SouthEast Telephone, which was completed on Oct. 1, 2010.

Net income of $103,000 for the third quarter 2011 compared with a net loss of $222,000 in the second quarter 2011 and a net loss of $828,000 in the year-ago third quarter.

Gross profit increased 1.2 percent, or $78,000, compared with the second quarter of this year. EBITDA improved to $515,000 compared with an EBITDA of $178,000 in the second quarter of this year and a loss before interest, taxes, depreciation and amortization of $935,000 in the year-ago third quarter.

In related news, Lightyear announced that it has completed a transaction to redeem all of its outstanding shares of convertible preferred stock.

In the transaction, the company redeemed 9.5 million shares of convertible preferred stock held by LY Holdings LLC (LYH), plus the preferred stockholders surrendered their rights to accrued dividends of approximately $2.2 million, in exchange for receivables due to the company totaling approximately $12.9 million. The convertible preferred stock redemption is expected to result in a fourth quarter, one-time, non-cash deemed preferred stock dividend of approximately $10.7 million, which will be presented in the statement of operations as a deduction to arrive at the loss attributable to common stockholders.

As a result of the transaction, the company’s common stock is the only class of capital stock that is issued or outstanding. As of Sept. 30, 2011, there were 22,089,888 of common shares issued and outstanding.

Additional information regarding this transaction may be found in the company’s Form 8-K dated Nov. 7, 2011, as filed with the Securities and Exchange Commission.

Lightyear is a provider of data, voice and wireless telecommunication services to business and residential customers throughout North America.


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.