UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 


 

FORM 8-K

 

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Date of report (Date of earliest event reported):  May 15, 2014

 

CVSL Inc.

(Exact name of registrant as specified in its charter)

 

Florida

 

Commission

 

98-0534701

(State or other jurisdiction

 

File No.: 00-52818

 

(IRS Employer

of incorporation or organization)

 

 

 

Identification No.)

 

2400 North Dallas Parkway, Suite 230, Plano, Texas 75093

(Address of principal executive offices and zip code)

 

(972) 398-7120

(Registrant’s telephone number, including area code)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o                                    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o         Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o         Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o         Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 2.02                                                                   Results of Operations and Financial Condition.

 

On May 15, 2014, CVSL Inc. issued a press release that included financial information for the first fiscal quarter ended March 31, 2014. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.

 

The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”) or otherwise subject to liabilities under that section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933 or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

 

Item 9.01                                                                   Financial Statements and Exhibits.

 

(d)                                                                                                         Exhibits.

 

99.1                                                                                                Press Release of CVSL Inc. dated May 15, 2014.

 

2



 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

CVSL Inc.

 

 

 

 

 

Date: May 15, 2014

By:

/s/ John P. Rochon

 

 

John P. Rochon

 

 

Chief Executive Officer and President

 

3



 

EXHIBIT INDEX

 

Exhibit
Number

 

Description

 

 

 

99.1

 

Press release issued by CVSL Inc. on May 15, 2014.

 

4




Exhibit 99.1

 

CVSL REPORTS FIRST QUARTER RESULTS

Revenue Increases Six-fold Over Prior Year, Debt is Reduced

 

(Dallas, TX, May 15, 2014)

 

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 décor 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

 


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