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October 01, 2012

Financial News

Financial News, October 2012

Primerica Inc.

Primerica Inc. (PRI—NYSE) announced financial results for the second quarter ended June 30, 2012. Total revenues were $300.5 million in the second quarter of 2012 and net income was $46.2 million, or 72 cents per diluted share. Operating revenues increased by 8 percent to $296.2 million in the second quarter of 2012, compared with $273.1 million in the second quarter of 2011.

Net operating income grew by 18 percent to $45.5 million, or 71 cents per diluted share, in the second quarter of 2012, compared with $38.6 million, or 51 cents per diluted share, in the second quarter of 2011. Net operating income return on adjusted stockholders’ equity was 14.8 percent (13.9 percent on a net income and stockholders’ equity basis) for the quarter ended June 30, 2012, the highest since becoming a public company in 2010.

In April 2012, Primerica repurchased 5.7 million shares of common stock from equity funds managed by Warburg Pincus for a purchase price of $150 million. As of June 30, 2012, investments and cash totaled $2.02 billion, compared with $2.17 billion as of March 31, 2012. The company’s invested asset portfolio had a net unrealized gain of $166.7 million (net of unrealized losses of $6.2 million) at June 30, 2012, down from a net unrealized gain of $170.6 million (net of unrealized losses of $5.9 million) at March 31, 2012. Net realized gains for the quarter were $4.3 million, which included $100,000 of other-than-temporary impairments.

The board of directors approved payment of a quarterly dividend of 7 cents per share for the second quarter of 2012. The dividend was payable on Sept. 10, 2012, to stockholders of record as of Aug. 24, 2012.

Primerica Inc., headquartered in Duluth, Ga., is a distributor of financial products to middle-income families in North America. In addition, Primerica provides an entrepreneurial full- or part-time business opportunity for individuals seeking to earn income by distributing the company’s financial products.


Nature’s Sunshine Products Inc.

Nature’s Sunshine Products Inc. (NATR—NASDAQ), including its subsidiary Synergy Worldwide Inc., a 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 second quarter ended June 30, 2012, and declared a quarterly cash dividend.

For the second quarter of 2012 net sales were $93.0 million, compared with $91.8 million in the same quarter a year ago, an increase of 1.3 percent. Operating income was $10.3 million, compared with $8.1 million in the same quarter a year ago, an increase of 28.1 percent.

Adjusted EBITDA was $11.9 million, compared with $10.2 million in the same quarter a year ago, an increase of 17.3 percent.

Net income was $7.3 million, compared with net income of $5.6 million in the same quarter a year ago, an increase of 29.8 percent. Basic and diluted net income per share was 47 cents and 46 cents, respectively, compared with earnings per share of 36 cents and 36 cents, for the same quarter a year ago.

NSP United States Segment Results for the Second Quarter: Net sales were $35.5 million, compared with $35.9 million in the same quarter a year ago, a decrease of 1.0 percent. Operating income was $4.2 million, compared with $3.7 million in the same quarter a year ago, an increase of 13.4 percent. The increase in operating income is due primarily to a reduction of the cost of goods sold.

NSP International Segment Results for the Second Quarter: Net sales were $31.2 million, compared with $33.1 million in the same quarter a year ago, a decrease of 5.5 percent. In local currencies, net sales decreased by 4.0 percent compared to the same quarter a year ago. Operating income was $3.3 million, compared with $1.8 million in the same quarter a year ago, an increase of 77.7 percent.

Synergy Worldwide Results for the Second Quarter: Net sales were $26.2 million, compared with $22.9 million in the same quarter a year ago, an increase of 14.8 percent. In local currencies, net sales increased 20.0 percent compared to the same quarter a year ago. Operating income was $2.8 million, compared with $2.5 million for the same quarter in the prior year, an increase of 13.0 percent.

The company’s board of directors also declared a regular quarterly cash dividend of 5 cents per share, or 20 cents per share on an annual basis, payable on Aug. 23, 2012, to shareholders of record as of the close of business on Aug. 13, 2012.

Nature’s Sunshine Products, a natural health and wellness company, markets and distributes nutritional and personal-care products through a global direct salesforce of over 600,000 independent distributors in more than 40 countries.


AL International

AL International (JCOF—OTC.BB), a global direct marketer of lifestyle and nutritional products and gourmet fortified coffee, released second quarter 2012 financial results. The company reported a 121 percent increase in revenues for the quarter, recording net sales of $18.9 million, compared to $8.6 million for the same quarter in 2011.

Gross profits increased to $10.7 million in Q1 2012, compared to $5.3 million for the same period in 2011. First quarter operating expenses increased to $10.7 million versus $5.3 million for the same period in 2011. AL International recorded income from operations of $5,000 for Q2 2012, compared to $8,000 in 2011. The company reported a net loss of $261,000 with $472,000 in EBITDA in the second quarter, versus a net loss of $96,000 with $175,000 in EBITDA for the same quarter for 2011.

In other company news, Youngevity® Essential Life Sciences, a wholly owned subsidiary of AL International, announced that it has entered into a sales and marketing alliance with Livinity™ Inc., a Kansas-based direct seller of health and wellness products. The alliance will integrate Livinity’s established product line along with its 10,000 distributors and customers.

Founded in 1996, Livinity is a direct selling health and wellness company with a strong focus on pain management, stress relief and energy. As a result of the agreement, distributors and customers from both Livinity and Youngevity will have access to both of their products and services.

AL International Inc. offers a wide range of consumer products and services, primarily through person-to-person selling relationships that constitute a “network of networks.” AL International was formed after the merger of Youngevity Essential Life Sciences and Javalution Coffee Company in the summer of 2011.


Mannatech Inc.

Mannatech Inc. (MTEX—NASDAQ), a developer and provider of nutritional supplements and skincare products based on Real Food Technology® solutions, reported a net loss of $2.4 million, or 93 cents per diluted share, for the second quarter ending June 30, 2012, compared to a net loss of $5.2 million, or $1.98 per diluted share, for the second quarter of 2011.

Net sales for the second quarter of 2012 were $43.6 million, a decrease of 15.1 percent, compared to $51.3 million in the second quarter of 2011. Net sales for the United States and Canada declined 11.7 percent to $22.6 million, compared to $25.6 million in the second quarter of 2011. International net sales of $21.0 million decreased 18.6 percent, compared to $25.8 million in the second quarter of 2011.

Mannatech Inc. develops high-quality health, weight and fitness, and skincare products based on the solid foundation of nutritional science and development standards. Mannatech’s proprietary products are available through independent sales associates in 22 countries.


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 second quarter ended June 30, 2012.

For the second quarter ended June 30, 2012, Medifast net revenue increased 20 percent to $93.6 million from net revenue of $78.3 million in the second quarter of the prior year. Each of the company’s three primary distribution channels, Take Shape for Life, Direct Response Marketing, Medifast Weight Control Centers and Wholesale Physicians, contributed to this year-over-year revenue increase.

Revenue in the direct sales channel, Take Shape for Life, increased 13 percent to $55.7 million in the second quarter of 2012, compared to $49.3 million in the same period last year. Growth in revenue for Take Shape for Life was driven by an increase in the number of active health coaches, clients and client product sales.

Gross profit for the second quarter of 2012 increased 19 percent to $70.1 million, compared to $59 million in the second quarter of the prior year. The company’s gross profit margin decreased 40 basis points to 75.0 percent in the second quarter, versus 75.4 percent in the second quarter of 2011.

Operating income for the second quarter of 2012 was $4.6 million, compared to $9 million in the same period a year ago. The operating margin decreased to 4.9 percent, compared to 11.6 percent last year.

Net income for the second quarter of 2012 was $2.8 million, or 20 cents per diluted share, compared to net income of $5.9 million, or 41 cents per diluted share, for the comparable period last year.

Medifast Inc., founded in 1980 and located in Owings Mills, Md., sells its products and programs via four unique distribution channels: the web and national call centers, the Take Shape for Life personal coaching division, medically supervised Medifast Weight Control Centers, and a national network of wholesale physicians and medical practices.


Relìv International Inc.

Relìv International Inc. (RELV—NASDAQ), a maker of nutritional supplements that promote optimal health, reported its financial results for the second quarter of 2012.

Net sales for the quarter were $16.8 million, a 6.8 percent decrease from the second quarter last year. Net sales in the United States totaled $12.9 million, down from second quarter 2011 net sales of $14.8 million. Net sales outside of the United States rose 21.6 percent in the second quarter of 2012 compared to the prior-year quarter, led by the European market where net sales more than doubled.

Net income for the second quarter of 2012 was $103,000 or 1 cent per diluted share, compared to $69,000 or 1 cent per diluted share in the 2011 second quarter. Income from operations for the second quarter of 2012 was $219,000, compared to $29,000 in the same quarter of 2011.

Net sales in Europe more than doubled to $1.74 million in the second quarter of 2012, compared to $856,000 in the prior-year second quarter. Sales in Asia increased by 17.2 percent in the second quarter of 2012 compared to the same quarter in 2011, led by the Philippines.

Relìv International, Inc., based in Chesterfield, Mo., produces nutritional supplements that promote optimal nutrition along with premium skincare products. The company sells its products through an international network marketing system of independent distributors in 15 countries.


Natural Health Trends Corp.

Natural Health Trends Corp. (NHTC—OTC.BB) announced its financial results through June 30, 2012. The company reported first-half sales of $20.1 million, up 62 percent over the $12.4 million a year ago. In the second quarter, sales, at $11.0 million, were up 52 percent over a year ago. First-half earnings per share were 12 cents, compared to 2 cents in 2011. Second quarter earnings per share were 8 cents, a 33 percent increase over the comparable period in 2011.

Natural Health Trends Corp. is an international direct selling and e-commerce company operating through its subsidiaries throughout Asia, North America, and Europe. The company markets premium-quality personal-care products under the NHT Global brand.


Lightyear Network Solutions Inc.

Lightyear Network Solutions Inc. (LYNS—OTC.BB), an established provider of data, voice and wireless telecommunication services to business and residential customers throughout North America, announced its financial results for the second quarter ended June 30, 2012.

Non-GAAP EBITDA increased to approximately $418,000 in the second quarter of 2012, compared with approximately $251,000 in the first quarter of 2012, an improvement of approximately 67 percent.

Net loss from operations decreased to approximately $17,000 in the second quarter of 2012, compared with approximately $492,000 in the first quarter of 2012.

Wireless revenue increased by approximately 8 percent in Q2 2012, compared with Q1 2012.

Cash generated from operations was approximately $714,000 for the six months ended June 30, 2012, compared with cash used in operations of approximately $631,000 for the same period in 2011.

Through its wholly owned subsidiaries, Lightyear Network Solutions Inc. provides telecommunication services to large, medium and small businesses and to residential consumers throughout North America. Lightyear Network Solutions has headquarters in Louisville, Ky.


Educational Development Corp.

Educational Development Corp. (EDUC—NASDAQ) reported results for the first quarter fiscal 2013, ended May 31, 2012.

In the first full quarter of results since the announcement to discontinue sales of its products through Amazon, the largest online retailer, EDC reports a 5 percent gain in the company’s net revenue of $6.6 million for the quarter ended May 31, 2012, compared to $6.3 million. This resulted in a 17 percent increase in net earnings of $350,200, compared to $300,200 for the same period last year.

The Usborne Books & More Home Business Division reports an 11 percent increase in net revenues for the quarter ended May 31, 2012, compared to the same period last year, and now has recorded four consecutive month-on-month sales increases for the first time in five years. This division sells via independent sales consultants.

Educational Development Corp. also announced that its board of directors has authorized a 12 cents per share cash dividend. The dividend will be paid on Sept. 21, 2012, to shareholders of record Sept. 14, 2012.

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.


Blyth Inc.

Blyth Inc. (BTH—NYSE), a direct-to-consumer company and designer and marketer of candles, accessories for the home and wellness products, announced that it has declared a semiannual cash dividend of 10 cents per share on the company’s common stock for the six months ended June 30, 2012. This represents a 100 percent increase to the dividend paid in the comparable prior year period. The semiannual dividend, authorized at the Aug. 15, 2012 board of directors meeting, will be payable to shareholders of record as of Oct. 1, 2012, and will be paid on Oct. 15, 2012. Prior dividends per share reflect the company’s two-for-one stock split effective June 15, 2012.

Blyth Inc., with headquarters in Greenwich, Conn., is a multi-channel company primarily focused on direct selling, offering its products directly to the consumer through PartyLite and ViSalus.


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.