DALLAS, March 16, 2015 /PRNewswire/ -- CVSL Inc.
[NYSE MKT: CVSL] today released results for the year ended
December 31, 2014, its second year of
operation as a federation of direct-to-consumer
companies.
Revenue for 2014 increased by 28.2%, or $23.9 million, from $84.9
million the previous year to $108.8
million. CVSL's gross profit increased by 47%, from
$35.6 million to $52.4 million.
CVSL's total stockholders' equity was $8.9 million on December
31, 2014. On a pro forma basis, including the
recently-closed offering of common stock on March 4, 2015, total stockholders' equity would
exceed $26 million. Total
long-term debt has been reduced by 80%, down to $5.3 million. CVSL's bank line of credit
was approximately $9 million a year
ago and is now fully paid off.
Reported operating loss for 2014 was $20.1 million. "While our company
significantly increased its revenue and gross profit during the
year, our bottom line results were affected by a range of expenses
connected with our acquisition work, such as legal expenses, due
diligence, quality of earnings reports, as well as non-cash charges
of more than $5 million for
depreciation, asset writedowns and share-based compensation plans,"
noted John Rochon Jr., CVSL's vice
chairman and head of its investment committee.
"There also were significant one-time costs associated with our
registration statements and NYSE uplisting and all the related
costs we incurred to pave the way for the acquisitions that we
believe will drive our future," he added. "We consider all
this to be an expected part of building a company from the ground
up and executing CVSL's long-term growth strategy."
"We believe we are making very good progress for a company that
is only two years into our acquisition strategy," he said, noting
that during the year CVSL accomplished several milestones,
including uplisting to the New York Stock Exchange MKT in December
and paying off the company's bank debt.
"As we said in our January 21
shareholder information call, we are now focusing largely on
acquisitions, in order to grow our federation of direct-to-consumer
companies." On February 6, CVSL
announced a definitive agreement to acquire UK-based
Kleeneze. Mr. Rochon said he expects that transaction to
close by the end of this month.
In an organizational update, CVSL said that Mr. Rochon Jr. will
assume the additional role of chief financial officer, replacing
Kelly Kittrell. He will be
assisted by Ryan C. Mack as deputy
CFO and Matt J. Howe as chief
investment officer.
About CVSL Inc.
CVSL is a growing group of direct-to-consumer companies that
connect social networks into an ever-expanding virtual "community"
of social commerce. CVSL companies currently include The
Longaberger Company, a 42-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, a
direct seller of Tomboy Tools, a line 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. CVSL and Kleeneze
Limited, an entity which offers a variety of household
goods in the United Kingdom and
Ireland, have recently 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 within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements reflect management's current
expectations, as of the date of this press release, and involve
certain risks and uncertainties. Forward-looking statements include
statements herein with respect to the offering and the successful
execution of CVSL's business strategy, including with respect to
CVSL's acquisition of synergistic businesses and CVSL's ability to
successfully integrate any acquired business and continue to grow
its business. CVSL's actual results could differ materially from
those anticipated in these forward-looking statements as a result
of various factors including its ability to successfully integrate
acquired companies, its ability to consummate pending acquisitions
and its ability to generate revenue. Factors that could cause
future results to materially differ from the recent results or
those projected in forward-looking statements include the "Risk
Factors" described in the Company's filings with the Securities and
Exchange Commission.
CVSL Contact: Russell
Mack (rmack@cvsl.us.com)
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SOURCE CVSL Inc.