October 02, 2011
Financial News, October 2011
Blyth Inc. (BTH—NYSE), a leading multi-channel designer and marketer of home fragrance and home decor, as well as health and wellness products, reported that in the direct selling segment, second quarter net sales increased 23 percent to $135.2 million, versus $110.2 million for the same period last year, due to significant second quarter sales and distributor growth at ViSalus.
Sales at ViSalus were $40.6 million in this year’s second quarter, versus $6.5 million for the same period last year. ViSalus is a direct seller of weight management products, nutritional supplements and energy drinks sold to consumers in the United States one-on-one by independent distributors.
Total PartyLite sales for the quarter declined 6 percent to $93.7 million. PartyLite U.S. sales declined 29 percent. In PartyLite Canada, sales declined 23 percent in U.S. dollars during the quarter, which translated into a decline of 28 percent in local currency.
Second quarter operating profit in the direct selling segment was a loss of $1.5 million, versus income of $5.3 million in the same period last year. Excluding the $6.0 million ViSalus equity incentive charge, the segment’s second quarter operating profit would have been $4.5 million this year, versus $5.3 million last year. Strong sales and profit growth at ViSalus partially offset lower sales and profits at PartyLite versus last year.
LifeVantage Corp. (LFVN—OTCBB), the maker of a patented dietary supplement, announced preliminary results for the fourth quarter and fiscal year ended June 30, 2011.
For the fourth quarter of fiscal 2011, the company reported record net revenue of $15.0 million, compared to net revenue of $4.4 million in the same period last year, an increase of 241 percent. On a sequential basis, net revenue increased 50 percent from the $10.0 million reported for the third fiscal quarter ended March 31, 2011.
Operating income for the fourth fiscal quarter of 2011 is anticipated to be approximately $2 million, compared to an operating loss of $290,000 in the same period last year. The fourth quarter of fiscal 2011 represents the fourth consecutive quarter of achieving operating income.
LifeVantage also announced its board of directors approved a share repurchase program that authorizes the company to utilize up to $5 million to purchase common stock over the course of 12 months beginning Oct. 1, 2011. Any such repurchases will be made only out of free cash flow from continuing operations and, on a quarterly basis, will not exceed 50 percent of free cash flow for such quarter. As of June 30, 2011, LifeVantage had approximately 98.8 million shares outstanding and more than $6.3 million in cash.
Lightyear Network Solutions Inc.
Lightyear Network Solutions Inc. (LYNS.OB—OTCBB), a provider of data, voice and wireless telecommunication services to business and residential customers throughout North America, announced its financial results for the quarter ended June 30, 2011. Results for the second quarter of 2011 include Lightyear’s acquisition of SouthEast Telephone, which was completed on Oct. 1, 2010.
Revenue of $17.8 million for the second quarter 2011 increased 58.3 percent from $11.3 million in the year-ago quarter. Gross profit of $6.2 million increased 74.4 percent over the second quarter 2010. Gross profit margins increased 3.2 percent for the quarter to 35.0 percent from 31.8 percent in the year-ago quarter. Loss from operations was reduced to $250,000 from $1.1 million in the year-ago quarter. EBITDA improved to a gain of $178,000 compared with an EBITDA loss of $1.3 million in the year-ago second quarter.
Loss attributable to common stockholders, including $379,000 of cumulative preferred stock dividends, was $601,000, compared with a net loss of $1.6 million, including a $329,000 cumulative preferred stock dividend in the year-ago second quarter. Net loss per common share, including the cumulative preferred stock dividends, was 3 cents for the quarter, compared with a net loss of 9 cents per share for the year-ago second quarter.
USANA Health Sciences
USANA Health Sciences Inc. (USNA—NYSE), a developer and manufacturer of high-quality nutritional, personal care and weight-management products, announced that its board of directors has authorized an additional $30 million in funding for share repurchases of its outstanding common stock.
Repurchases may be made from time to time, in the open market, through block trades or otherwise. The number of shares to be purchased and the timing of purchases will be based on market conditions, the level of cash balances, general business opportunities and other factors. The $30 million authorization will be in addition to the approximately $6 million remaining under the prior authorization as of the end of the second quarter of 2011.
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 Oct. 5, 2011, to shareholders of record as of Sept. 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 salesforce of 2.7 million.
The board of directors of Primerica Inc. (PRI—NYSE), an independent financial services marketing company, approved payment of a quarterly dividend of 3 cents. The dividend was payable on Sept. 9, 2011, to stockholders of record as of Aug. 25, 2011.
Primerica Inc., headquartered in Duluth, Ga., is a distributor of financial products to middle-income families in North America. Primerica representatives assist clients in meeting their needs for term life insurance, mutual funds, loans and other financial products.
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 was payable on Sept. 16, 2011, to shareholders of record Sept. 9, 2011.
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.
Mannatech Inc. (MTEX—NASDAQ) reported for the quarter ended June 30, 2011, net sales of $51.4 million, and a net loss of $5.2 million, or 20 cents per diluted share, compared to the 2010 loss of 14 cents per share. Quarterly sales declined $6.2 million or 10.8 percent, compared to the second quarter of 2010. The net loss increased by $1.4 million for the quarter largely due to lower results from Australasia, the reserve taken for severances due to job eliminations, and costs associated with Mexico, which launched operations in late January 2011.
Sales in the second quarter increased by $0.5 million compared to the first quarter of 2011. The overall increase compared to the first quarter of 2011 reflected higher international results, which increased 5.3 percent, while the domestic sales decline was limited to 3.0 percent compared to the first quarter. The international gain was due to sales and recruiting in the Republic of Korea along with favorable currency translations compared to the first quarter.