DALLAS, May 15, 2014 /PRNewswire/ -- CVSL Inc.
[OTC QX: CVSL] today reported financial results for the first
quarter ending March 31, 2014.
For the quarter, CVSL's gross revenue was $26.7 million, compared to $4.3 million in the same quarter a year ago, more
than a six-fold increase. During the quarter, CVSL also
reduced debt and continued to integrate seven micro-enterprise
companies into CVSL.
Late in the quarter the company launched a major new technology
platform, including a new internal ERP software system to help
manage business functions such as inventory, shipping and financial
reporting within its companies, as well as a new state-of-the-art
system to help its sales forces better serve their
customers.
In the First Quarter the company paid down its existing lines of
credit from $9.8 million to $8.4
million. CVSL sold a manufacturing building in
Ohio for nearly $1.4 million and paid off its term debt
entirely.
The company noted that costs related to its ongoing integration
of its acquired companies, as well as work related to potential
future acquisitions, is a significant cost category and that it
believes both represent a crucial investment in CVSL's future
growth.
CVSL said it continued to make good progress reducing excess
inventory levels. Overall inventory balance at the end of the
First Quarter was $1.2 million less
than at the start of the quarter.
CVSL acquired its seventh micro-enterprise company during the
quarter, signing a definitive agreement to acquire Uppercase
Living on March 14. Salt Lake
City-based Uppercase Living offers an extensive line of
customizable vinyl expressions for display on walls. Its
independent sales force sells throughout the United
States.
Independent sales force members at the various CVSL companies
earned $7 million in commissions and
incentives during the quarter.
About CVSL
CVSL is a growing group of micro-enterprise companies that
connect social media networks into an ever-expanding virtual
"community" of social commerce. CVSL companies currently include
The Longaberger Company, a 40-year old maker of hand-crafted
baskets and other home decor items; Your Inspiration At
Home, an award-winning maker of hand-crafted spices and other
gourmet food items from around the world; Tomboy Tools, a
direct seller of tools designed for women as well as home security
systems; and Agel Enterprises, a global seller of
nutritional products in gel form as well as a skin care line sold
under the Ageless brand, operating in 40 countries;
Paperly, which offers a line of custom stationery and other
personalized products, My Secret Kitchen, a U.K.-based
seller of gourmet food products and Uppercase Living, which
sells customizable vinyl expressions for display on walls in the
home. In addition, CVSL and Golden Girls, a purchaser
of gold and tradable jewelry, have signed a definitive purchase
agreement, which is subject to customary closing conditions.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements that
involve risks and uncertainties. All statements other than
statements of historical fact contained in this press release are
forward-looking statements. We have attempted to identify
forward-looking statements by terminology including "anticipate,"
"believe," "can," "continue," "could," "estimate," "expect,"
"intend," "may," "plan," "potential," "predict," "project,"
"should," or "will" or the negative of these terms or other
comparable terminology. Such statements include statements
regarding our growth. Although we do not make forward-looking
statements unless we believe we have a reasonable basis for doing
so, we cannot guarantee their accuracy. These statements are only
expectations and involve known and unknown risks, uncertainties,
and other factors; such as, our ability to continue our growth, our
ability to integrate acquired companies, the contribution of
Uppercase Living to our company and the risks outlined under
"Risk Factors" in our Annual Report on Form 10-K for our fiscal
year ended December 31, 2013,
and those risks discussed in other documents we file with the
Securities and Exchange Commission, which may cause our actual
results, levels of activity, performance, or achievements expressed
or implied by these forward-looking statements to differ materially
from expectations. Except as required by law, we undertake no
obligation to update or revise publicly any of the forward-looking
statements after the date of this press release to conform our
statements to actual results or changed expectations.
Media Contact: Russell Mack
(rmack@cvsl.us.com)
Investor Relations Contact: Scott
Pumper (scottp@cvsl.us.com)
Web site: www.cvsl.us.com
SOURCE CVSL Inc.