Reports Record Quarterly Revenue of $56.2
Million
LifeVantage Corporation (NASDAQ:LFVN) today reported financial
results for its third fiscal quarter ended March 31, 2016.
Third Quarter Fiscal 2016 Highlights:
- Revenue increased 24.4% to $56.2 million, compared to $45.2
million in the third fiscal quarter of 2015 and 8.0% on a
sequential basis;
- Revenue in the Americas increased 33.8% when compared to the
third fiscal quarter of 2015 and 9.9% on a sequential basis;
- Revenue in Asia/Pacific & Europe continued to improve,
rising 1.7% on a sequential basis;
- Adjusted EBITDA increased 54.6% to $5.1 million, compared to
$3.3 million in the third fiscal quarter of 2015;
- Adjusted earnings per diluted share increased 83.0% to $0.14,
compared to $0.08 in the third fiscal quarter of 2015;
- Refinanced term loan in March 2016, lowering the interest rate
and improving cash flow.
“We are excited about our record
revenue performance during the third quarter. We are seeing
positive trends in our existing business, leading up to what may be
the biggest new product launch in the company's history with the
upcoming May 17th cyber launch of NRF1,” stated LifeVantage
President and Chief Executive Officer Darren Jensen. “We are
successfully combining visionary product innovation with a highly
duplicatable business opportunity, further enabling our independent
distributors to be successful. The results are evident in our sales
growth.”
Third Quarter Fiscal 2016 Results
For the third fiscal quarter ended March 31,
2016, the Company reported revenue of $56.2 million, a 24.4%
increase compared to $45.2 million for the comparable period in
fiscal 2015; and an 8.0% increase compared sequentially to revenue
of $52.0 million for the second fiscal quarter ended December 31,
2015. Year-over-year quarterly revenue reflects an increase of
33.8% in the Americas and a decrease in the Asia/Pacific &
Europe region of 0.9%.
Commissions and incentives expense for the third
fiscal quarter of 2016 was $28.2 million, or 50.2% of revenue,
compared to $21.6 million, or 47.9% of revenue, for the same period
last year. Selling, general and administrative expense (SG&A)
for the third fiscal quarter of 2016 was $14.6 million, or 26.1% of
revenue, compared to $14.5 million, or 32.1% of revenue, in the
same period last year.
Operating income for the third fiscal quarter of
2016 was $3.6 million, compared to $1.5 million for the third
fiscal quarter of 2015. Adjusted EBITDA was $5.1 million for the
third fiscal quarter of 2016, compared to $4.5 million for the
second fiscal quarter of 2016 and $3.3 million for the prior year
period.
Net income for the third fiscal quarter of 2016
was $1.0 million, or $0.07 per diluted share, calculated on 14.1
million fully diluted shares. This compares to net income for
the third fiscal quarter of 2015 of $0.6 million, or $0.04 per
diluted share, calculated on 14.0 million fully diluted
shares. Adjusted for a write-off of deferred debt transaction
costs of $1.0 million, net of tax, associated with refinancing the
Company’s term loan and $0.1 million, net of tax, for executive
team transition expenses, adjusted Non-GAAP net income was $2.0
million for the third fiscal quarter of 2016, or $0.14 per diluted
share; compared to $1.1 million, or $0.08 per diluted share for the
comparable period last year. Non-GAAP adjustments to net income
during the third fiscal quarter of 2015 included $0.4 million of
executive severance costs and $0.1 million of executive team
transition costs, both net of tax.
Fiscal 2016 First Nine Months ResultsFor the
nine months ended March 31, 2016, the Company reported net revenue
of $153.5 million, an increase of 5.8% compared to $145.0 million
in the prior year period. Revenue in the Americas increased 13.8%,
while revenue in Asia/Pacific & Europe decreased 14.6% due
predominantly to lower sales in Japan that occurred primarily
during the first quarter of fiscal 2016. Revenue for the nine
months of fiscal 2016 was negatively impacted $2.7 million, or
1.9%, by foreign currency fluctuation.
Operating income for the first nine months of fiscal 2016 was
$9.3 million, compared to $12.3 million for the prior year period.
Operating income for the nine months ended March 31, 2016 includes
$1.7 million of the previously announced executive transition and
one-time expenses. Adjusted EBITDA was $14.1 million for the first
nine months of fiscal 2016, compared to $14.3 million for the prior
year period. Operating income and Adjusted EBITDA for the nine
months ended March 31, 2015 includes the benefit of approximately
$2.0 million from proceeds recovered and related to the Company's
December 2012 product recall, partially offset by severance and
executive team transition costs of $0.7 million.
Net income for the first nine months of fiscal
2016 was $3.7 million, or $0.26 per diluted share, compared to $6.8
million, or $0.47 per diluted share for the prior year period. On a
tax adjusted basis, adjusting for the previously mentioned
executive transition and one-time charges during the first nine
months of 2016 of $1.1 million and the $1.0 write-off of deferred
debt transactions costs for the first nine months of fiscal 2016,
adjusted Non-GAAP net income for the nine months ended March 31,
2016 was $5.7 million or $0.41 per diluted share. On a tax
adjusted basis, and adjusting for the one-time insurance benefit
for the nine months of fiscal 2015 of $1.4 million partially offset
by $0.5 million of severance and executive transition costs,
adjusted Non-GAAP net income for the nine months ended March 31,
2015 was $5.9 million or $0.41 per diluted share.
Balance Sheet & Liquidity
The Company generated $6.2 million of cash from
operations during the first nine months of fiscal 2016, compared to
$9.0 million in the same period last year. The Company's cash
and cash equivalents at March 31, 2016 were $8.5 million compared
to $13.9 million at the end of fiscal year 2015. The Company repaid
$11.6 million of debt during the first nine months of fiscal 2016.
Additionally, the Company completed the refinancing of its term
loan in March 2016.
Fiscal Year 2016 Guidance
The Company is updating its fiscal year 2016
annual guidance. The Company now expects to generate revenue in the
range of $205 million to $210 million in fiscal year 2016, compared
to the previous range of $195 million to $210 million. The Company
now expects to achieve adjusted Non-GAAP earnings per diluted share
in the range of $0.53 to $0.58, compared to the previous range of
$0.50 to $0.60. The Company now expects unadjusted GAAP earnings
per diluted share in the range of $0.38 to $0.43, taking into
account the $1.0 million after-tax write-off, or $0.07 per diluted
share, of deferred debt transaction costs associated with
refinancing its term loan, compared to the previous range of $0.42
to $0.52.
Conference Call Information
The Company will hold an investor conference
call today at 2:30 p.m. Mountain time (4:30 p.m. Eastern time).
Investors interested in participating in the live call can dial
(888) 213-3922 from the U.S. International callers can dial
(913) 981-5526. A telephone replay will be available
approximately two hours after the call concludes and will be
available through Wednesday, May 11, 2016, by dialing (877)
870-5176 from the U.S. and entering confirmation code 8518374, or
(858) 384-5517 from international locations, and entering
confirmation code 8518374.
There will also be a simultaneous, live webcast
available on the Investor Relations section of the Company's web
site at http://investor.lifevantage.com/events.cfm. The webcast
will be archived for approximately 30 days.
About LifeVantage Corporation
LifeVantage Corporation (Nasdaq:LFVN), is a science based
network marketing company dedicated to visionary science that looks
to transform health, wellness and anti-aging internally and
externally at the cellular level. The company is the maker of
Protandim®, the Nrf2 Synergizer® patented dietary supplement, the
TrueScience™ Anti-Aging Skin Care Regimen, Canine Health, the AXIO™
energy product line and the PhysIQ™ smart weight management system.
LifeVantage was founded in 2003 and is headquartered in Salt Lake
City, Utah.
Forward Looking StatementsThis 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", "goal", “may be” "ideal
fit", 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 leadership
in the global market, new product launches, future growth and
expected financial performance. 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.
About Non-GAAP Financial Measures
We define Non-GAAP EBITDA as earnings before interest expense,
income taxes, depreciation and amortization and Non-GAAP Adjusted
EBITDA as earnings before interest expense, income taxes,
depreciation and amortization, stock compensation expense, other
income, net, and certain other adjustments. Non-GAAP EBITDA and
Non-GAAP Adjusted EBITDA may not be comparable to similarly titled
measures reported by other companies. We define Non-GAAP Net
Income and Earnings Per Share as GAAP net income less certain tax
adjusted non-recurring one-time expenses incurred during the
period.
We are presenting Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA,
Non-GAAP Net Income and Non-GAAP Earnings Per Share because
management believes that they provide additional ways to view our
operations when considered with both our GAAP results and the
reconciliation to net income, which we believe provides a more
complete understanding of our business than could be obtained
absent this disclosure. Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA,
Non-GAAP Net Income and Non-GAAP Earnings Per Share are presented
solely as supplemental disclosure because: (i) we believe these
measures are a useful tool for investors to assess the operating
performance of the business without the effect of these items; (ii)
we believe that investors will find this data useful in assessing
shareholder value; and (iii) we use Non-GAAP EBITDA, Non-GAAP
Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings Per
Share internally as a benchmark to evaluate our operating
performance or compare our performance to that of our competitors.
The use of Non-GAAP EBITDA, Non-GAAP Adjusted EBITDA, Non-GAAP Net
Income and Non-GAAP Earnings Per Share has limitations and you
should not consider these measures in isolation from or as an
alternative to the relevant GAAP measure of net income prepared in
accordance with GAAP, or as a measure of profitability or
liquidity.
The tables set forth below present Non-GAAP EBITDA, Non-GAAP
Adjusted EBITDA, Non-GAAP Net Income and Non-GAAP Earnings Per
Share which are non-GAAP financial measures to Net Income and
Earnings Per Share, our most directly comparable financial measures
presented in accordance with GAAP.
LIFEVANTAGE CORPORATION AND
SUBSIDIARIES |
|
CONSOLIDATED BALANCE SHEETS |
|
(unaudited) |
|
|
|
|
|
|
|
(In
thousands, except per share data) |
As of |
|
ASSETS |
March 31, 2016 |
|
June 30, 2015 |
|
Current assets |
|
|
|
|
|
Cash and cash equivalents |
$ |
8,494 |
|
|
$ |
13,905 |
|
|
|
Accounts receivable |
|
2,042 |
|
|
|
1,031 |
|
|
|
Income tax receivable |
|
2,226 |
|
|
|
2,179 |
|
|
|
Inventory |
|
17,002 |
|
|
|
9,248 |
|
|
|
Current deferred income tax
asset |
|
1,086 |
|
|
|
1,117 |
|
|
|
Prepaid expenses and deposits |
|
4,855 |
|
|
|
2,995 |
|
|
|
Total current assets |
|
35,705 |
|
|
|
30,475 |
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
4,981 |
|
|
|
5,759 |
|
|
|
Intangible assets, net |
|
1,778 |
|
|
|
1,879 |
|
|
|
Long-term deferred income tax
asset |
|
229 |
|
|
|
235 |
|
|
|
Other long-term assets |
|
1,427 |
|
|
|
1,433 |
|
|
TOTAL
ASSETS |
$ |
44,120 |
|
|
$ |
39,781 |
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
$ |
5,938 |
|
|
$ |
2,614 |
|
|
|
Commissions payable |
|
8,291 |
|
|
|
6,505 |
|
|
|
Other accrued expenses |
|
9,067 |
|
|
|
5,600 |
|
|
|
Current portion of long-term
debt |
|
2,000 |
|
|
|
11,141 |
|
|
|
Total current
liabilities |
|
25,296 |
|
|
|
25,860 |
|
|
|
|
|
|
|
|
Long-term
debt |
|
|
|
|
|
Principal amount |
|
8,000 |
|
|
|
10,484 |
|
|
|
Less: unamortized discount and
deferred offering costs |
|
(99 |
) |
|
|
(1,951 |
) |
|
|
Long-term debt, net of unamortized
discount and deferred offering costs |
|
7,901 |
|
|
|
8,533 |
|
|
|
Other long-term
liabilities |
|
2,084 |
|
|
|
2,063 |
|
|
|
Total liabilities |
|
35,281 |
|
|
|
36,456 |
|
|
Commitments
and contingencies |
|
|
|
|
Stockholders' equity |
|
|
|
|
|
Preferred stock - par value $.001
per share, 50,000 shares authorized; no shares issued or
outstanding |
|
- |
|
|
|
- |
|
|
|
Common stock - par value $.001 per
share, 250,000 shares authorized and 14,008 and 13,958 issued and
outstanding as of March 31, 2016 and June 30, 2015,
respectively |
|
14 |
|
|
|
14 |
|
|
|
Additional paid-in capital |
|
119,374 |
|
|
|
117,657 |
|
|
|
Accumulated deficit |
|
(110,426 |
) |
|
|
(114,095 |
) |
|
|
Accumulated other comprehensive
loss |
|
(123 |
) |
|
|
(251 |
) |
|
|
Total stockholders’
equity |
|
8,839 |
|
|
|
3,325 |
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY |
$ |
44,120 |
|
|
$ |
39,781 |
|
|
|
|
|
|
|
|
LIFEVANTAGE CORPORATION AND
SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March
31, |
|
For the Nine Months Ended March
31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
(In thousands, except
per share data) |
|
|
|
|
|
|
|
|
Revenue, net |
$ |
56,160 |
|
|
$ |
45,155 |
|
|
$ |
153,507 |
|
|
$ |
145,035 |
|
|
Cost of sales |
|
9,714 |
|
|
|
7,552 |
|
|
|
24,531 |
|
|
|
20,717 |
|
|
Gross profit |
|
46,446 |
|
|
|
37,603 |
|
|
|
128,976 |
|
|
|
124,318 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Commissions and
incentives |
|
28,185 |
|
|
|
21,637 |
|
|
|
77,525 |
|
|
|
69,406 |
|
|
Selling, general
and administrative |
|
14,630 |
|
|
|
14,481 |
|
|
|
42,117 |
|
|
|
42,572 |
|
|
Total
operating expenses |
|
42,815 |
|
|
|
36,118 |
|
|
|
119,642 |
|
|
|
111,978 |
|
|
Operating
income |
|
3,631 |
|
|
|
1,485 |
|
|
|
9,334 |
|
|
|
12,340 |
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
Interest
expense |
|
(1,808 |
) |
|
|
(748 |
) |
|
|
(3,176 |
) |
|
|
(2,341 |
) |
|
Other income (expense), net |
|
(46 |
) |
|
|
(13 |
) |
|
|
(256 |
) |
|
|
(56 |
) |
|
Total
other income (expense) |
|
(1,854 |
) |
|
|
(761 |
) |
|
|
(3,432 |
) |
|
|
(2,397 |
) |
|
Income before income
taxes |
|
1,777 |
|
|
|
724 |
|
|
|
5,902 |
|
|
|
9,943 |
|
|
Income tax
expense |
|
(774 |
) |
|
|
(151 |
) |
|
|
(2,233 |
) |
|
|
(3,182 |
) |
|
Net income |
$ |
1,003 |
|
|
$ |
573 |
|
|
$ |
3,669 |
|
|
$ |
6,761 |
|
|
Net income per share: |
|
|
|
|
|
|
|
|
Basic |
$ |
0.07 |
|
|
$ |
0.04 |
|
|
$ |
0.27 |
|
|
$ |
0.48 |
|
|
Diluted |
$ |
0.07 |
|
|
$ |
0.04 |
|
|
$ |
0.26 |
|
|
$ |
0.47 |
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
13,734 |
|
|
|
13,724 |
|
|
|
13,721 |
|
|
|
13,969 |
|
|
Diluted |
|
14,128 |
|
|
|
13,961 |
|
|
|
14,072 |
|
|
|
14,256 |
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
Foreign currency
translation adjustment |
|
102 |
|
|
|
1 |
|
|
|
128 |
|
|
|
(78 |
) |
|
Other comprehensive income
(loss), net of tax: |
|
102 |
|
|
|
1 |
|
|
|
128 |
|
|
|
(78 |
) |
|
Comprehensive
income |
$ |
1,105 |
|
|
$ |
574 |
|
|
$ |
3,797 |
|
|
$ |
6,683 |
|
|
|
|
|
|
|
|
|
|
|
LIFEVANTAGE CORPORATION AND
SUBSIDIARIES |
|
Revenue by Region |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
March 31, |
|
For the Nine Months Ended
March 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
44,012 |
|
|
|
78 |
% |
|
$ |
32,901 |
|
|
|
73 |
% |
|
$ |
118,793 |
|
|
|
77 |
% |
|
$ |
104,397 |
|
|
|
72 |
% |
|
Asia/Pacific &
Europe |
|
|
12,148 |
|
|
|
22 |
% |
|
|
12,254 |
|
|
|
27 |
% |
|
|
34,714 |
|
|
|
23 |
% |
|
|
40,638 |
|
|
|
28 |
% |
|
Total |
|
$ |
56,160 |
|
|
|
100 |
% |
|
$ |
45,155 |
|
|
|
100 |
% |
|
$ |
153,507 |
|
|
|
100 |
% |
|
$ |
145,035 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Independent Distributors
(1) |
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
49,000 |
|
|
|
69 |
% |
|
|
44,000 |
|
|
|
67 |
% |
|
|
|
|
|
|
|
|
|
Asia/Pacific &
Europe |
|
|
22,000 |
|
|
|
31 |
% |
|
|
22,000 |
|
|
|
33 |
% |
|
|
|
|
|
|
|
|
|
Total |
|
|
71,000 |
|
|
|
100 |
% |
|
|
66,000 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Preferred
Customers(2) |
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
97,000 |
|
|
|
82 |
% |
|
|
93,000 |
|
|
|
82 |
% |
|
|
|
|
|
|
|
|
|
Asia/Pacific &
Europe |
|
|
21,000 |
|
|
|
18 |
% |
|
|
21,000 |
|
|
|
18 |
% |
|
|
|
|
|
|
|
|
|
Total |
|
|
118,000 |
|
|
|
100 |
% |
|
|
114,000 |
|
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Active Independent Distributors have purchased
product in the prior three months for retail or personal
consumption. |
|
|
|
(2) Active Preferred Customers have purchased product in
the prior three months for personal consumption only. |
|
LIFEVANTAGE CORPORATION AND
SUBSIDIARIES |
|
Reconciliation of GAAP Net Income to Non-GAAP
EBITDA and Non-GAAP Adjusted EBITDA: (Unaudited) |
|
|
|
|
|
|
|
|
For the Three Months Ended March
31, |
|
For the Nine Months Ended March
31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
(In thousands) |
|
|
|
|
|
|
|
|
GAAP Net income |
$ |
1,003 |
|
|
$ |
573 |
|
|
$ |
3,669 |
|
|
$ |
6,761 |
|
|
Interest Expense |
|
1,808 |
|
|
|
748 |
|
|
|
3,176 |
|
|
|
2,341 |
|
|
Provision for income
taxes |
|
774 |
|
|
|
151 |
|
|
|
2,233 |
|
|
|
3,182 |
|
|
Depreciation and
amortization |
|
441 |
|
|
|
573 |
|
|
|
1,424 |
|
|
|
1,738 |
|
|
Non-GAAP EBITDA: |
|
4,026 |
|
|
|
2,045 |
|
|
|
10,502 |
|
|
|
14,022 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Stock compensation
expense |
|
935 |
|
|
|
536 |
|
|
|
1,577 |
|
|
|
1,505 |
|
|
Other (income) expense,
net |
|
46 |
|
|
|
13 |
|
|
|
256 |
|
|
|
56 |
|
|
Other adjustments* |
|
113 |
|
|
|
717 |
|
|
|
1,727 |
|
|
|
(1,283 |
) |
|
Total adjustments |
|
1,094 |
|
|
|
1,266 |
|
|
|
3,560 |
|
|
|
278 |
|
|
Non-GAAP Adjusted
EBITDA |
$ |
5,120 |
|
|
$ |
3,311 |
|
|
$ |
14,062 |
|
|
$ |
14,300 |
|
|
|
|
|
|
|
|
*Other adjustments for the nine months ended March 31, 2016
include approximately $0.7 million for executive severance
expenses, $0.9 million for search firm and hiring expenses
associated with the search for executive officers, and $0.1 million
for expenses associated with the reverse stock split completed
during October 2015. Other adjustments for the nine months
ended March 31, 2015 include a ($2.0) million reduction for a
one-time pretax benefit from settlement proceeds, $0.6 million in
CEO severance expenses and $0.1 million in search firm
expenses. Other adjustments for the three months ended March
31, 2016 include approximately $0.1 million for search firm and
hiring expenses associated with the search for executive officers.
Other adjustments for the three months ended March 31, 2015 include
$0.6 million in CEO severance expenses and $0.1 million in search
firm expenses. |
|
|
|
|
|
|
|
|
|
|
LIFEVANTAGE CORPORATION AND
SUBSIDIARIES |
Reconciliation of GAAP Net Income to Non-GAAP
Net Income and Non-GAAP Adjusted EPS: (Unaudited) |
|
|
|
|
|
|
|
For the Three Months Ended March
31, |
|
For the Nine Months Ended March
31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
(In thousands) |
|
|
|
|
|
|
|
GAAP Net income |
$ |
1,003 |
|
|
$ |
573 |
|
|
$ |
3,669 |
|
|
$ |
6,761 |
|
Executive team
severance expenses (1) |
|
- |
|
|
|
384 |
|
|
|
421 |
|
|
|
384 |
|
Executive team
recruiting and transition expenses(2) |
|
70 |
|
|
|
103 |
|
|
|
553 |
|
|
|
103 |
|
Reverse split
administrative expenses(3) |
|
- |
|
|
|
- |
|
|
|
99 |
|
|
|
- |
|
Write-off of deferred
debt transaction costs(4) |
|
960 |
|
|
|
- |
|
|
|
960 |
|
|
|
- |
|
Insurance proceeds from
product recall(5) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(1,360 |
) |
Non-GAAP Net
Income: |
|
2,033 |
|
|
|
1,060 |
|
|
|
5,702 |
|
|
|
5,888 |
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March
31, |
|
For the Nine Months Ended March
31, |
|
|
2016 |
|
|
|
2015 |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
Diluted earnings per
share, as reported |
$ |
0.07 |
|
|
$ |
0.04 |
|
|
$ |
0.26 |
|
|
$ |
0.47 |
|
Executive team
severance expenses (1) |
|
- |
|
|
|
0.03 |
|
|
|
0.03 |
|
|
|
0.03 |
|
Executive team
recruiting and transition expenses(2) |
|
- |
|
|
|
0.01 |
|
|
|
0.04 |
|
|
|
0.01 |
|
Reverse split
administrative expenses(3) |
|
- |
|
|
|
- |
|
|
|
0.01 |
|
|
|
- |
|
Write-off of deferred
debt transaction costs(4) |
|
0.07 |
|
|
|
- |
|
|
|
0.07 |
|
|
|
- |
|
Insurance proceeds from
product recall(4) |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(0.10 |
) |
Diluted earnings per
share, as adjusted |
$ |
0.14 |
|
|
$ |
0.08 |
|
|
$ |
0.41 |
|
|
$ |
0.41 |
|
|
|
|
|
|
|
(1) Net of $256,000 in tax expense for the nine months ended
March 31, 2016, and net of $181,000 for the three and nine months
ended March 31, 2015 |
(2) Net of $43,000 and $337,000 tax expense for the three and
nine months ended March 31, 2016, respectively, and net of $48,000
in tax expense for the three and nine months ended March 31,
2015 |
(3) Net of $60,000 tax expense for the nine months ended March
31, 2016 |
(4) Net of $584,000 tax expense for the three and nine months
ended March 31, 2016 |
(5) Net of $640,000 tax expense for the nine months ended
March 31, 2015 |
|
|
|
|
|
|
|
|
Investor Relations Contact:
Cindy England (801) 432-9036
Director of Investor Relations
-or-
Scott Van Winkle (617) 956-6736
Managing Director, ICR INC
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