DALLAS, Aug. 14, 2014 /PRNewswire/ -- CVSL Inc. (OTC QX:
CVSL) today released its results for the quarter ended June 30, 2014.
"During the Second Quarter, we made steady progress in the
strategy that we began with our first acquisition 15 months
earlier, which is to strengthen the companies we acquire while
laying the groundwork for future acquisitions," said CVSL Chairman
John Rochon.
During the Second Quarter, CVSL filed a registration statement
on Form S-1 with the U.S. Securities and Exchange Commission
related to the proposed public offering of its common stock and
applied to have its common stock listed on the NYSE MKT.
"We are building a large, diverse company from the ground up,"
said Mr. Rochon. "We want to bring future CVSL acquisitions onto a
solid base. Shoring up that base is where we put most of our
emphasis during the Second Quarter.
"We took important steps to reduce our overall risk. One
of our top priorities was to eliminate CVSL's bank debt. I am
delighted to say that we accomplished that crucial goal," said Mr.
Rochon, noting that CVSL had about $8.5
million in bank debt at the beginning of 2014 and that the
Company paid off its last remaining bank debt two weeks ago.
For the Second Quarter, CVSL reported a 19.5% increase in gross
revenue compared to the Second Quarter of 2013. CVSL had
gross revenue of $24.6 million and an
operating loss of $4.1 million in the
current quarter, compared to gross revenue of $20.6 million and an operating loss of
$3.3 million in the Second Quarter of
2013. Gross revenue for the first six months of 2014 was
$51.3 million, which is more than
double that of the first half of last year.
Mr. Rochon said that, in addition to paying off bank debt, CVSL
reduced inventory, monetized assets that weren't needed for the
business, and continued to invest in systems and personnel to
prepare for continued growth through acquisitions.
"Eliminating bank debt makes us a healthier company, better
equipped to operate our businesses and make more acquisitions,"
said Mr. Rochon. "It gives us more freedom and flexibility to
continue our growth," he added.
"The operating companies we acquired since March, 2013 needed
improvements in varying degrees. We have used this time to
make necessary repairs. Now we can better focus on the next
acquisition opportunities," he said.
"We also have invested in new accounting and sales force
systems. While some of these costs are capitalized, other
costs are expensed in the period incurred. These expenditures
affect short-term profitability, but we believe the benefits of
these steps will last for many years," he noted.
About CVSL
CVSL (www.cvsl.us.com) 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; Project
Home (formerly conducting business under the name Tomboy
Tools), a direct seller of tools designed for women as well as
home security systems; 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
offers an extensive line of 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. Although we do not make forward-looking
statements unless we believe we have a reasonable basis for doing
so, we cannot guarantee their accuracy. Such statements include
statements regarding our continued growth, and the benefits of the
various steps taken. These statements are only expectations
and involve known and unknown risks, uncertainties, and other
factors including our ability to continue to grow as anticipated
and the risks outlined under "Risk Factors" in our Annual Report on
Form 10-K for our fiscal year ended December
31, 2013, our Quarterly Reports on Form 10-Q, including the
Quarterly Report filed with the Securities and Exchange
Commission for the quarter ended June
30, 2014, 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.
CVSL Media Contact: Russell
Mack (rmack@cvsl.us.com)
CVSL Investor Relations Contact: Scott Pumper (scottp@cvsl.us.com)
SOURCE CVSL Inc.