LifeVantage Announces Share Repurchase Program and Accelerated Debt Retirement Initiative
March 11 2014 - 9:00AM
LifeVantage Corporation (Nasdaq:LFVN), a company dedicated to
helping people achieve healthy living through a combination of a
compelling business opportunity and scientifically validated
products, today announced that its Board of Directors approved an
initial $6 million that will be used for an accelerated debt pay
down and common stock repurchase program. The Company will fund up
to $3 million in stock repurchases with the remainder being used to
accelerate the pay down of debt, through cash on hand and future
cash flow from operations.
Douglas C. Robinson, President and Chief Executive Officer of
LifeVantage stated, "We believe that utilizing our strong balance
sheet and cash flow from operations to continue repurchasing stock,
when appropriate, and simultaneously accelerating our debt payments
will enhance long-term shareholder value for our Company. We are
able to implement these accelerated debt pay down and additional
stock repurchase initiatives while maintaining ample capital to
continue investing in our previously announced strategic
initiatives of product development, geographic expansion and
strengthening marketing. We feel the combination of these
initiatives will have a positive impact on our operational
performance in the future."
As of December 31, 2013, the Company's cash and cash equivalents
were $34.5 million and total debt was $47 million. Over the
past 15 months, the Company has repurchased $50 million of its
stock.
The repurchase program permits LifeVantage to purchase shares
from time to time through a variety of methods, including in the
open market, through privately negotiated transactions or other
means as determined by the company's management, in accordance with
applicable securities laws. As part of the repurchase program, the
Company expects that it will enter into a pre-arranged stock
repurchase plan which will operate in accordance with guidelines
specified under Rule 10b5-1 of the Securities Exchange Act of 1934.
Accordingly, transactions, if any, under the pre-arranged
repurchase plan would be completed in accordance with the terms of
the stock repurchase plan, including specified price, volume and
timing conditions.
About LifeVantage Corporation
LifeVantage Corporation (Nasdaq:LFVN), a leader in Nrf2 science
and the maker of Protandim®, the Nrf2 Synergizer® patented dietary
supplement, TrueScience® Anti-Aging Cream and LifeVantage® Canine
Health, is a science based network marketing company. LifeVantage
is dedicated to visionary science that looks to transform wellness
and anti-aging internally and externally with products that
dramatically reduce oxidative stress at the cellular level.
LifeVantage was founded in 2003 and is headquartered in Salt Lake
City, Utah.
Forward Looking Statements
This document contains forward-looking statements made pursuant
to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Words and expressions reflecting optimism,
satisfaction or disappointment with current prospects, as well as
words such as "believe," "hopes," "intends," "estimates,"
"expects," "projects," "plans," "anticipates," "look forward to"
and variations thereof, identify forward-looking statements, but
their absence does not mean that a statement is not
forward-looking. Examples of forward-looking statements include,
but are not limited to, statements we make regarding our operating
income, cash flow from operations, the amount of stock we will
repurchase in this offering and future investment and growth. Such
forward-looking statements are not guarantees of performance and
the Company's actual results could differ materially from those
contained in such statements. These forward-looking statements are
based on the Company's current expectations and beliefs concerning
future events affecting the Company and involve known and unknown
risks and uncertainties that may cause the Company's actual results
or outcomes to be materially different from those anticipated and
discussed herein. These risks and uncertainties include, among
others, those discussed in greater detail in the Company's Annual
Report on Form 10-K and the Company's Quarterly Report on Form 10-Q
under the caption "Risk Factors," and in other documents filed by
the Company from time to time with the Securities and Exchange
Commission. The Company cautions investors not to place undue
reliance on the forward-looking statements contained in this
document. All forward-looking statements are based on information
currently available to the Company on the date hereof, and the
Company undertakes no obligation to revise or update these
forward-looking statements to reflect events or circumstances after
the date of this document, except as required by law.
CONTACT: Investor Relations Contact:
Cindy England (801) 432-9036
Director of Investor Relations
-or-
John Mills (310) 954-1105
Partner, ICR, LLC
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