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April 30, 2014

Financial News

Financial News, May 2014

Blyth Inc.

Blyth Inc. (BTH—NYSE), a direct to consumer company and designer and marketer of candles and accessories for the home, as well as health and wellness products sold through the direct selling and catalog marketing channels, reported sales and earnings for full year 2013.

Net Sales for the year ended Dec. 31, 2013, declined 25 percent to $885.5 million versus $1,179.5 million for the prior year. Operating profit for the 12 months was $19.7 million this year versus $84.6 million last year, a decline of 76.7 percent. Last year’s results included the following pre-tax items:

  • A ViSalus EIP charge of $11.3 million,
  • Fees of $4.7 million related to the ViSalus withdrawn stock offering,
  • PartyLite restructuring charges of $3.2 million, and
  • An intangible impairment charge of $0.8 million at Silver Star Brands.

Excluding the impact of these charges, this year’s operating profit of $19.7 million compares to an operating profit of $104.6 million last year, a decline of 81.1 percent.

Net Earnings Attributable to Blyth Inc. was $2.4 million for 2013 compared to net earnings of $44.0 million in the prior year, a decline of 94.5 percent. Diluted earnings per share attributable to Blyth Inc. was 15 cents for 2013 compared to diluted earnings per share of $2.55 in the prior year. Last year’s diluted earnings per share include:

  • ViSalus EIP charge of 32 cents,
  • Fees related to the ViSalus withdrawn stock offering of 12 cents,
  • PartyLite restructuring charges of 12 cents,
  • Silver Star Brands intangible impairment charge of 3 cents,
  • Impairment of Midwest-CBK note receivable charge of 6 cents, and
  • Income from discontinued operations of 45 cents.

Normalized earnings per share of 15 cents for the full year 2013 compared to $2.75 per share last year, before the aforementioned charges and discontinued operations, a decline of 94.5 percent.

Net loss attributable to Blyth Inc. common stockholders was $3.0 million for 2013 compared to net earnings attributable to Blyth Inc. common stockholders of $10.0 million last year. Diluted earnings per share attributable to Blyth Inc. common stockholders were a loss of 19 cents for the full year 2013 compared to earnings per share of 58 cents in the prior year.


Crius Energy Trust

Crius Energy Trust (KWH-UN.TO—TORONTO), announced fourth quarter and year-end financial results for the three- and 12-month periods ended Dec. 31, 2013. The trust commenced operations on Nov. 13, 2012, with the acquisition of a 26.8 percent ownership interest in Crius Energy, LLC by the trust’s wholly owned subsidiary.

Fourth Quarter 2013 Results

Total revenue for the fourth quarter of 2013 was $128.6 million. Gross margin was $24.9 million, representing 19.4 percent of revenue.

Adjusted EBITDA was $6.1 million, representing 4.7 percent of revenue. Adjusted EBITDA was impacted by a non-cash adjustment at year-end of $2.6 million relating to a change in estimate of the uncollectibility of customer accounts receivable balances in markets where the company is subject to credit risk. Normalizing for this impact, adjusted EBITDA was $8.7 million in the quarter.

Annual 2013 Results

Total revenue for 2013 was $507.1 million, driven by strong customer growth and higher average retail prices paid by customers. Revenue growth was highlighted by the strong contribution by the network marketing channel, Viridian Energy, which generated $266.9 million of revenue in 2013.

Gross margin was $103.4 million, or 20.4 percent of total revenues, which is at the low end of the company’s pro-forma historical range of approximately 20 percent to 30 percent of revenue. Adjusted EBITDA for 2013 was $32.2 million, or 6.3 percent of revenue.

The company has cash and availability of $27.5 million as of Dec. 31, 2013, which consisted of $15.3 million in cash, no long-term debt and availability of $12.2 million under the company’s working capital facility with Macquarie Energy. On a pro-forma basis, adjusting for the expanded working capital facility, total cash and cash availability would have more than doubled from $27.5 million to $63.6 million.


Mannatech Inc.

Mannatech Inc. (MTEX—NASDAQ), a developer and provider of nutritional supplements and skincare products based on Real Food Technology® solutions, announced financial results for its fourth quarter and year end 2013.

Fourth Quarter 2013 Results

Fourth quarter net sales for 2013 were $46.5 million, an increase of 9.9 percent as compared to $42.3 million in the fourth quarter of 2012. Net sales increased 13.5 percent in constant dollars, which is a non-GAAP financial measure that excludes the impact of fluctuations in foreign currency exchange rates.

Net sales for Asia/Pacific increased 16.4 percent to $20.6 million, as compared to $17.7 million in the fourth quarter 2012. Net sales for North America increased 5.9 percent to $21.7 million, as compared to $20.5 million in the fourth quarter of 2012. Net sales for Europe, the Middle East and Africa increased 2.4 percent to $4.2 million, as compared to $4.1 million in the fourth quarter of 2012.

Net income was $2.6 million, or 94 cents per diluted share, for the fourth quarter of 2013, compared to net income of $0.3 million, or 10 cents per diluted share, for the fourth quarter of 2012.

Annual 2013 Results

Annual net sales for 2013 were $177.4 million, up 2.3 percent from $173.4 million for 2012. Net sales increased 5.2 percent in constant dollars.

Net sales for Asia/Pacific increased 13.7 percent to $80.3 million, as compared to $70.6 million in 2012. Net sales for North America decreased 5.0 percent to $82.2 million, as compared to $86.5 million in 2012. Net sales for Europe, the Middle East and Africa decreased 8.6 percent to $14.9 million, as compared to $16.3 million in 2012.

Net income for 2013 was $3.2 million, compared to net loss of $1.4 million in 2012. The net income per diluted share was $1.18 in 2013, as compared to the net loss per diluted share of 52 cents in 2012.


Medifast Inc.

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 fourth quarter and fiscal year ended Dec. 31, 2013.

Fourth Quarter 2013 Results

For the fourth quarter ended Dec. 31, 2013, Medifast net revenue decreased 7 percent to $77.3 million from net revenue of $83.2 million in the fourth quarter of the prior year.

Revenue in the direct sales channel, Take Shape For Life, was comparable to the prior year at $51.7 million in the fourth quarter of 2013, compared to $51.8 million in the same period last year.

Gross profit for the fourth quarter of 2013 decreased 8 percent to $57.7 million, compared to $62.8 million in the fourth quarter of the prior year. The company’s gross profit margin decreased 80 basis points to 74.6 percent in the fourth quarter of 2013 versus 75.4 percent in the fourth quarter of 2012.

Operating income was $7.0 million, or 9.1 percent as a percent of net revenue, compared to $3.6 million, or 4.3 percent as a percent of net revenue, in the fourth quarter of 2012.

Net income was $5.3 million, or 39 cents per diluted share based on approximately 13.6 million shares outstanding, compared to net income of $1.9 million, or 13 cents per diluted share, for the comparable quarter last year based on approximately 13.8 million shares outstanding. The fourth quarter 2012 net income includes a $2.0 million net of tax sales tax accrual.

Annual 2013 Results

For the fiscal year ended Dec. 31, 2013, Medifast net revenue increased to $356.9 million from net revenue of $356.7 million in 2012.

Net income for the fiscal year 2013 increased $8.1 million to $24.0 million, or $1.73 per diluted share based on approximately 13.8 million shares outstanding, compared to net income of $15.9 million, or $1.16 per diluted share for the comparable period last year based on approximately 13.7 million shares outstanding.

Fiscal year 2012 net income includes $3.7 million from the previously disclosed FTC charge in the second quarter of 2012 and $2.0 million net of tax sales tax accrual.

The company’s balance sheet remains strong with stockholders’ equity of $98.4 million and working capital of approximately $64.9 million as of Dec. 31, 2013. Cash, cash equivalents and investment securities for the fourth quarter of 2013 increased $7.8 million to $67.8 million, compared to $60.0 million at Dec. 31, 2012.


Natural Health Trends Corp.

Natural Health Trends Corp. (NHTC—OTC.BB), a direct selling company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, announced record financial results for the quarter and full year ended Dec. 31, 2013.

Fourth Quarter 2013 Results

Total revenues for the fourth quarter were $19.1 million, up 135 percent compared to $8.1 million in the fourth quarter last year and were up 35 percent sequentially from $14.2 million for the third quarter this year. This was the fourth consecutive sequential quarterly increase in revenues.

Operating income was $1.7 million, up 298 percent compared to $416,000 last year, and up 25 percent sequentially from $1.3 million for the third quarter this year.

Net income was $1.6 million, or 14 cents per diluted share, compared to $525,000, or 5 cents per diluted share, last year and $1.3 million, or 12 cents per diluted share, for the third quarter this year.

Cash and cash equivalents increased to $14.6 million as of Dec. 31, 2013 from $4.2 million at Dec. 31, 2012 and $9.1 million at Sept. 30, 2013.

Annual 2013 Results

Total full-year revenues for 2013 increased 40 percent to $52.5 million from $37.5 million last year. Operating income was $4.2 million, up 60 percent compared to $2.6 million last year. Net income increased 55 percent to $4.1 million, or 36 cents per diluted share, compared to $2.6 million, or 23 cents per diluted share last year.

The board of directors declared its first quarterly dividend. The declared dividend included a cash dividend of 82 cents per share on outstanding Series A preferred stock and a cash dividend of one-half cent per share on common stock outstanding, payable in cash on April 8, 2014, to stockholders of record on March 28, 2014.


Nature’s Sunshine Products Inc.

Nature’s Sunshine Products Inc. (NATR—NASDAQ), a leading 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 fourth quarter and full year ended Dec. 31, 2013.

Fourth Quarter 2013 Results

Net sales revenue increased 5.7 percent to $95.5 million, compared to $90.4 million in the fourth quarter of 2012. In local currencies, net sales revenue increased by 6.8 percent. Operating income decreased 55.5 percent to $2.6 million, compared to $5.8 million in the fourth quarter of 2012.

Adjusted EBITDA decreased 41.1 percent to $4.6 million, compared to $7.8 million in the fourth quarter of 2012. Net income was $1.8 million, or 11 cents per diluted common share, compared to $4.5 million, or 28 cents per diluted common share in the fourth quarter of 2012.

Cash and cash equivalents as of Dec. 31, 2013, were $77.2 million, compared to $79.2 million as of Dec. 31, 2012, which reflects $24.0 million paid in a special one-time dividend, $6.4 million paid in regular quarterly dividends, and $2.5 million used to repurchase shares during 2013.

Shareholders’ equity as of Dec. 31, 2013, was $105.3 million, compared to $115.6 million as of Dec. 31, 2012. Excluding dividends paid in the year, shareholders’ equity increased by 17.3 percent. Shareholder’s equity as of Dec. 31, 2013 was $6.51 per share, compared to $7.31 per share as of Dec. 31, 2012. Cash dividends in the amount of $1.90 were paid in 2013, compared to 15 cents in 2012.

Annual 2013 Results

Net sales revenue increased 2.9 percent to $378.1 million, compared to $367.5 million in 2012. In local currencies, net sales revenue increased by 3.7 percent. Operating income decreased 29.3 percent to $24.1 million, compared to $34.0 million in 2012.

Adjusted EBITDA decreased 22.1 percent to $31.9 million, compared to $41.0 million in 2012. Net income was $17.6 million, or $1.07 per diluted common share, compared to $25.4 million, or $1.59 per diluted common share in 2012.

In the Americas, Asia Pacific and Europe region, net sales revenue for the fourth quarter increased 0.5 percent to $49.9 million, compared to $49.7 million in the fourth quarter of 2012. In local currencies, net sales revenue increased by 2.4 percent compared to the fourth quarter of 2012.

In the Russia, Central and Eastern Europe region, net sales revenue increased 7.5 percent to $17.1 million, compared to $15.9 million in the fourth quarter of 2012. Net sales revenue increased year-over-year for the fifth consecutive quarter.

For the Synergy WorldWide business, net sales revenue increased 14.8 percent to $28.5 million, compared to $24.8 million in the fourth quarter of 2012. This marks the second consecutive record-setting sales quarter for Synergy. In local currencies, net sales revenue increased by 15.4 percent compared to the fourth quarter of 2012.

The company’s board of directors announced it had approved a regular quarterly cash dividend of 10 cents per share payable on April 7, 2014, to shareholders of record as of the close of business on March 28, 2014.

On Aug. 8, 2013, the board of directors authorized a $10 million share repurchase program to be implemented over two years. During the three months ended Dec. 31, 2013, the company repurchased 32,609 shares of its common stock under the share repurchase program for $0.6 million. At Dec. 31, 2013, the remaining balance available for repurchases under the program was $7.5 million.


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 $25.5 million for the year ended Dec. 31, 2013, a 1 percent increase over 2012 consolidated net sales of $25.2 million. For the year ended Dec. 31, 2013, the company reported a net loss of $500,000, or 23 cents per diluted share, compared to a net loss of $361,000, or 16 cents per diluted share, during 2012.

During 2013, sales of Nutritional Products increased by $0.2 million, primarily as a result of increased sales to international licensees. And Medical Products sales increased by $0.1 million, according to RBC Life Sciences CEO Clinton H. Howard. The company also made significant progress during 2013 by reducing expenses by $0.9 million.


Relìv International Inc.

Relìv International Inc. (RELV—NASDAQ), a maker of nutritional supplements that promote optimal health, reported its financial results for the fourth quarter and full year of 2013.

Fourth Quarter 2013 Results

Relìv reported net sales of $17.4 million for the fourth quarter of 2013, compared with net sales of $16.9 million for the fourth quarter of 2012. U.S. net sales increased by 4.1 percent for the quarter compared with the same quarter in 2012. International net sales for the quarter decreased 1.5 percent compared to the prior-year quarter, but sales were buoyed by an increase in net sales of Europe of 30.3 percent.

Relìv reported net income of $503,000, or 4 cents per diluted share, for the fourth quarter of 2013, compared with net income of $437,000, or 3 cents per diluted share, for the fourth quarter of 2012. Income from operations for the fourth quarter of 2013 was $888,000, compared with $611,000 in the same quarter of 2012.

Annual 2013 Results

Relìv reported net sales of $68.2 million for 2013, compared with net sales of $68.7 million in 2012. U.S. net sales were essentially flat at $53.7 million in 2013, compared to $53.8 million in 2012. Net sales in Relìv’s foreign markets for 2013 decreased 2.4 percent compared with net sales for 2012. Europe remained Relìv’s biggest growth market, with net sales increasing by 22.7 percent.

Net income for 2013 was $777,000, compared with $1.4 million in 2012. Diluted earnings per share were 6 cents in 2013, compared with 11 cents in 2012. Net income for 2012 included a one-time after-tax gain of approximately $247,000 (2 cents diluted EPS) resulting from a discounted balance due on a purchase agreement entered into in a previous year.

“The United States reported sales gains in both the third and fourth quarters of 2013, the first year-over-year quarterly gains in the United States in more than six years at Relìv,” said Robert L. Montgomery, Chairman and CEO of Relìv. “U.S. growth led to an increase in net sales worldwide in the third and fourth quarters, up 8.3 percent and 2.8 percent respectively, over the same periods in 2012.”

Relìv had cash and cash equivalents of $6.7 million as of Dec. 31, 2013, an increase of $856,000 from the balance as of Dec. 31, 2012. Net cash generated from operating activities increased to $2.6 million in 2013 from $2.5 million in 2012.


Youngevity International Inc.

Youngevity International Inc. (YGYI—OTC.QX), a global direct marketer of nutritional and lifestyle products and also a vertically integrated producer of gourmet coffees, reported financial results for the fourth quarter and full year ended Dec. 31, 2013.

2013 Fourth Quarter Results

For the fourth quarter ended Dec. 31, 2013, the company reported net revenue of $22.7 million, compared to $19.2 million for the same period in 2012, an increase of 18.1 percent. Gross profit for the fourth quarter ended Dec. 31, 2013 increased to $13.3 million, compared to $11.3 million for the same period last year, an increase of 17.6 percent.

Net Income for the fourth quarter of year 2013 was $480,000, compared to $87,000 for the same period last year, an increase of 451.7 percent.

Adjusted EBITDA was $1.7 million for the fourth quarter ended Dec. 31, 2013, compared to $1.2 million in the same period for the prior year, an increase of 43.0 percent.

2013 Full Year Results

For the year ended Dec. 31, 2013, the company reported net revenue of $85.6 million, compared to $75.0 million in year 2012, a 14.2 percent increase.

Gross profit for the year ended Dec. 31, 2013, increased 17.1 percent to $51.3 million, as compared to $43.8 million for the year ended Dec. 31, 2012. Gross profit as a percentage of revenues increased to 59.9 percent for the year ended Dec. 31, 2013, compared to 58.4 percent in the same period last year.

For the year ended Dec. 31, 2013, net income increased 570.0 percent to $2.7 million, as compared to a loss of $564,000 for the year ended Dec. 31, 2012.

Adjusted EBITDA was $7.3 million for the year ended Dec. 31, 2013, compared to $3.2 million in the same period for the prior year, an increase of 129.6 percent.


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.