Second Quarter Revenue of $48.9 millionRevenue in
the First Six Months of Fiscal 2017 Increased 6.7%
year-over-yearCompany Reiterates Fiscal 2017 Guidance
LifeVantage Corporation (Nasdaq:LFVN) today reported financial
results for its second quarter ended December 31, 2016.
Second Quarter Fiscal 2017 Highlights:
- Revenue decreased 5.9% to $48.9 million, compared to $52.0
million in the second quarter of fiscal 2016;
- Revenue in the Americas decreased 6.1% and revenue in
Asia/Pacific & Europe decreased 5.1%, both when compared to the
comparable period of fiscal 2016;
- Adjusted EBITDA decreased 13.7% to $3.9 million, compared to
$4.5 million in the comparable period of fiscal 2016;
- Earnings per diluted share were $0.02, compared to $0.11 in the
second quarter of fiscal 2016; and
- Adjusted earnings per diluted share were $0.11, compared to
$0.14 in the second quarter of fiscal 2016.
“The second quarter results were consistent with
our expectations,” stated LifeVantage President and Chief Executive
Officer Darren Jensen. “Our recent implementation of new
international policies and procedures disrupted second quarter
sales as anticipated. As the implementation nears completion, we
are focused on rebuilding our sales momentum while continuing to
focus on additional international opportunities. We recently hired
a new Hong Kong based executive responsible for both Hong Kong and
Asia Market Development, focusing on expanding our business into
additional Chinese markets, including Taiwan and Mainland
China.”
Second Quarter Fiscal 2017 ResultsFor the
second fiscal quarter ended December 31, 2016, the Company reported
revenue at the top end of previously announced guidance of $48.9
million, a 5.9% decrease compared to $52.0 million for the
comparable period in fiscal 2016. Year-over-year quarterly revenue
reflects a decrease of 6.1% in the Americas and a 5.1% decrease in
the Asia/Pacific & Europe region. Revenues in the Company’s
United States and Hong Kong markets decreased for the second
quarter of fiscal 2017 as the Company began to takes steps,
following the completion of the independent review conducted by the
Audit Committee of the Board of Directors, to help ensure that the
Company’s products are not distributed or sold into countries
without complying with applicable customs, tax and other regulatory
requirements and to appropriately verify the residency of
individuals who want to become independent distributors of the
Company. Consistent with these regulatory requirements, in the
future independent distributors may be able to purchase a limited
quantity of such products for personal consumption in one or more
of these countries.
Commissions and incentives expense for the
second quarter of fiscal 2017 was $23.5 million, or 48.1% of
revenue, compared to $27.3 million, or 52.5% of revenue, for the
same period in fiscal 2016. Selling, general and administrative
expense (SG&A) for the second quarter of fiscal 2017 was $17.2
million, or 35.2% of revenue, compared to $13.8 million, or 26.6%
of revenue, in the comparable period of fiscal 2016.
Operating income for the second quarter of
fiscal 2017 was $0.7 million, compared to $3.0 million for the
second quarter of fiscal 2016. Operating income during the second
quarter of fiscal 2017 included approximately $1.7 million of costs
associated with the Audit Committee’s independent review and $0.1
million of net executive team severance, recruiting and transition
expenses. Operating income during the second quarter of fiscal 2016
included approximately $0.4 million of costs associated with
executive team recruiting and transition expenses and $0.1 million
of administrative costs associated with the reverse stock split.
Adjusted EBITDA was $3.9 million for the second quarter of fiscal
2017, compared to $4.5 million for the comparable period in fiscal
2016.
Net income for the second quarter of fiscal 2017
was $0.3 million, or $0.02 per diluted share, calculated on 14.1
million fully diluted shares. This compares to net income for
the second quarter of fiscal 2016 of $1.6 million, or $0.11 per
diluted share, calculated on 14.0 million fully diluted shares.
Adjusted for costs associated with the audit committee’s
independent review of $1.2 million and net executive severance,
recruiting and transition expenses of $0.1 million, all net of tax,
adjusted Non-GAAP net income was $1.6 million for the second
quarter of fiscal 2017, or $0.11 per diluted share; compared to
$1.9 million, or $0.14 per diluted share for the comparable period
of fiscal 2016. Non-GAAP adjustments to net income during the
second quarter of fiscal 2016 included $0.3 million of executive
team transition costs and reverse split administrative expenses,
net of tax.
Fiscal 2017 First Six Months ResultsFor the six
months ended December 31, 2016, the Company reported net revenue of
$103.8 million, an increase of 6.7% compared to $97.3 million for
the first six months of fiscal 2016. In the first half of fiscal
2017, revenue in the Americas increased 4.0%, while revenue in
Asia/Pacific & Europe increased 15.6%. Revenue for the first
half of fiscal year 2017 was positively impacted $3.4 million, or
3.5%, by foreign currency fluctuations associated with revenue
generated in several international markets.
Commissions and incentives expense for the first half of fiscal
2017 was $49.8 million, or 48.0% of revenue, compared to $49.3
million, or 50.7% of revenue, for the first half of fiscal 2016.
SG&A for the first six months of fiscal 2017 was $35.0 million,
or 33.7% of revenue, compared to $27.5 million, or 28.2% of
revenue, in the prior year period.
Operating income for the first six months of
fiscal 2017 was $2.7 million, compared to $5.7 million for the
first six months of fiscal 2016. Operating income for the six
months ended December 31, 2016 includes $2.7 million for expenses
associated with the Audit Committee independent review and $0.1
million for net executive severance, recruiting and transition
expenses. Operating income in the first six months of fiscal 2016
includes $1.3 million of net executive severance, recruiting and
transition costs as well as $0.1 million for expenses associated
with the reverse stock split completed during October 2015.
Adjusted EBITDA was $8.2 million for the first six months of fiscal
2017, compared to $8.9 million for the same period in fiscal
2016.
Net income for the first half of fiscal 2017 was
$1.5 million, or $0.10 per diluted share, compared to $2.7 million,
or $0.19 per diluted share for the first half of fiscal 2016. On a
tax adjusted basis, adjusting for previously announced expenses
associated with the audit committee independent review of $1.9
million, along with a $0.1 million of costs for net executive
severance, recruiting and transition expenses, adjusted Non-GAAP
net income for the six months ended December 31, 2016 was $3.5
million, or $0.24 per diluted share. On a tax adjusted basis,
adjusting for executive severance, recruiting and transition costs
of $0.8 million, along with the $0.1 million for expenses
associated with the reserve stock split in October 2015, adjusted
Non-GAAP net income for the first six months of fiscal year 2016
was $3.6 million or $0.26 per diluted share.
Balance Sheet & LiquidityThe Company
generated $5.1 million of cash from operations during the first six
months of fiscal year 2017 and $8.5 million in the same period last
year. The year-over-year reduction in cash provided by operations
during the first half of fiscal 2017 primarily relates to the lower
level of net income relative to the prior year period and cash used
to reduce payables. The Company's cash and cash equivalents at
December 31, 2016 were $11.7 million compared to $7.9 million at
June 30, 2016.
Fiscal Year 2017 Guidance The Company is
reiterating fiscal year 2017 annual guidance. The Company expects
to generate revenue in the range of $207 million to $212 million
during fiscal year 2017, and anticipates adjusted earnings per
diluted share in the range of $0.40 to $0.47 and GAAP earnings per
diluted share in the range of $0.26 to $0.33. The Company's
earnings per diluted share guidance excludes any non-operating or
non-recurring expenses that may materialize during fiscal 2017,
including estimated costs of $2.5 million to $3.0 million
associated with the recently completed review by the Audit
Committee of the Board of Directors.
Conference Call InformationThe
Company will hold an investor conference call today at 2:30 p.m.
MST (4:30 p.m. EST). Investors interested in participating in the
live call can dial (888) 215-7030 from the U.S. International
callers can dial (913) 312-1276. A telephone replay will be
available approximately two hours after the call concludes and will
be available through Wednesday, February 15, 2017, by dialing (844)
512-2921 from the U.S. and entering confirmation code 1969252, or
(412) 317-6671 from international locations, and entering
confirmation code 1969252.
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 direct selling 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® Nrf2 and NRF1 Synergizers, its line of
scientifically-validated dietary supplements, 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. www.lifevantage.com
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” , 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, the effectiveness of our policies and
procedures, 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 Non-GAAP 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 benchmarks 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 |
December 31, 2016 |
|
June 30, 2016 |
|
Current
assets |
|
|
|
|
Cash and
cash equivalents |
$ |
11,731 |
|
|
$ |
7,883 |
|
|
Accounts
receivable |
|
717 |
|
|
|
1,552 |
|
|
Income
tax receivable |
|
903 |
|
|
|
- |
|
|
Inventory, net |
|
21,377 |
|
|
|
25,116 |
|
|
Current
deferred income tax asset |
|
- |
|
|
|
2,776 |
|
|
Prepaid
expenses and deposits |
|
1,993 |
|
|
|
5,082 |
|
|
Total
current assets |
|
36,721 |
|
|
|
42,409 |
|
|
|
|
|
|
|
Property
and equipment, net |
|
2,885 |
|
|
|
3,456 |
|
|
Intangible assets, net |
|
1,698 |
|
|
|
1,744 |
|
|
Long-term
deferred income tax asset |
|
3,906 |
|
|
|
1,130 |
|
|
Other
long-term assets |
|
1,305 |
|
|
|
1,520 |
|
|
TOTAL ASSETS |
$ |
46,515 |
|
|
$ |
50,259 |
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
|
Current
liabilities |
|
|
|
|
Accounts
payable |
$ |
5,037 |
|
|
$ |
8,891 |
|
|
Commissions payable |
|
6,722 |
|
|
|
7,719 |
|
|
Income
tax payable |
|
- |
|
|
|
1,206 |
|
|
Other
accrued expenses |
|
9,780 |
|
|
|
8,734 |
|
|
Current
portion of long-term debt |
|
2,000 |
|
|
|
2,000 |
|
|
Total
current liabilities |
|
23,539 |
|
|
|
28,550 |
|
|
|
|
|
|
|
Long-term debt |
|
|
|
|
Principal
amount |
|
6,500 |
|
|
|
7,500 |
|
|
Less:
unamortized discount and deferred offering costs |
|
(76 |
) |
|
|
(91 |
) |
|
Long-term
debt, net of unamortized discount and deferred offering costs |
|
6,424 |
|
|
|
7,409 |
|
|
Other
long-term liabilities |
|
2,041 |
|
|
|
2,169 |
|
|
Total
liabilities |
|
32,004 |
|
|
|
38,128 |
|
|
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
14,054 and 14,028 issued and outstanding as of December 31, 2016
and June 30, 2016, respectively |
|
14 |
|
|
|
14 |
|
|
Additional paid-in capital |
|
121,165 |
|
|
|
120,150 |
|
|
Accumulated deficit |
|
(106,613 |
) |
|
|
(108,076 |
) |
|
Accumulated other comprehensive income (loss) |
|
(55 |
) |
|
|
43 |
|
|
Total
stockholders’ equity |
|
14,511 |
|
|
|
12,131 |
|
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
$ |
46,515 |
|
|
$ |
50,259 |
|
|
|
|
|
|
|
|
|
LIFEVANTAGE CORPORATION AND
SUBSIDIARIES |
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
For the Three MonthsEnded December
31, |
|
|
For the Six Months EndedDecember
31, |
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
(In thousands, except
per share data) |
|
|
|
|
|
|
|
|
|
Revenue, net |
$ |
48,947 |
|
|
$ |
51,995 |
|
|
|
$ |
103,841 |
|
|
$ |
97,347 |
|
|
Cost of sales |
|
7,500 |
|
|
|
7,842 |
|
|
|
|
16,332 |
|
|
|
14,817 |
|
|
Gross
profit |
|
41,447 |
|
|
|
44,153 |
|
|
|
|
87,509 |
|
|
|
82,530 |
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
|
|
Commissions and incentives |
|
23,540 |
|
|
|
27,297 |
|
|
|
|
49,836 |
|
|
|
49,340 |
|
|
Selling,
general and administrative |
|
17,207 |
|
|
|
13,824 |
|
|
|
|
34,987 |
|
|
|
27,487 |
|
|
Total
operating expenses |
|
40,747 |
|
|
|
41,121 |
|
|
|
|
84,823 |
|
|
|
76,827 |
|
|
Operating income |
|
700 |
|
|
|
3,032 |
|
|
|
|
2,686 |
|
|
|
5,703 |
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense): |
|
|
|
|
|
|
|
|
|
Interest
expense |
|
(138 |
) |
|
|
(619 |
) |
|
|
|
(275 |
) |
|
|
(1,368 |
) |
|
Other
income (expense), net |
|
(150 |
) |
|
|
6 |
|
|
|
|
(321 |
) |
|
|
(210 |
) |
|
Total
other income (expense) |
|
(288 |
) |
|
|
(613 |
) |
|
|
|
(596 |
) |
|
|
(1,578 |
) |
|
Income before income
taxes |
|
412 |
|
|
|
2,419 |
|
|
|
|
2,090 |
|
|
|
4,125 |
|
|
Income
tax expense |
|
(129 |
) |
|
|
(819 |
) |
|
|
|
(627 |
) |
|
|
(1,459 |
) |
|
Net income |
$ |
283 |
|
|
$ |
1,600 |
|
|
|
$ |
1,463 |
|
|
$ |
2,666 |
|
|
Net income per
share: |
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.02 |
|
|
$ |
0.12 |
|
|
|
$ |
0.11 |
|
|
$ |
0.19 |
|
|
Diluted |
$ |
0.02 |
|
|
$ |
0.11 |
|
|
|
$ |
0.10 |
|
|
$ |
0.19 |
|
|
Weighted average shares
outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
13,840 |
|
|
|
13,718 |
|
|
|
|
13,830 |
|
|
|
13,714 |
|
|
Diluted |
|
14,132 |
|
|
|
14,016 |
|
|
|
|
14,176 |
|
|
|
13,952 |
|
|
|
|
|
|
|
|
|
|
|
|
Other
comprehensive income (loss), net of tax: |
|
|
|
|
|
|
|
|
|
Foreign
currency translation adjustment |
|
(189 |
) |
|
|
9 |
|
|
|
|
(98 |
) |
|
|
26 |
|
|
Other comprehensive
income (loss), net of tax: |
|
(189 |
) |
|
|
9 |
|
|
|
|
(98 |
) |
|
|
26 |
|
|
Comprehensive
income |
$ |
94 |
|
|
$ |
1,609 |
|
|
|
$ |
1,365 |
|
|
$ |
2,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIFEVANTAGE CORPORATION AND
SUBSIDIARIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue by Region |
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended
December 31, |
|
|
For the Six Months Ended
December 31, |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
2016 |
|
|
|
2015 |
|
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
$ |
37,613 |
|
77 |
% |
|
$ |
40,055 |
|
77 |
% |
|
|
$ |
77,748 |
|
75 |
% |
|
$ |
74,781 |
|
77 |
% |
|
Asia/Pacific &
Europe |
|
|
11,334 |
|
23 |
% |
|
|
11,940 |
|
23 |
% |
|
|
|
26,093 |
|
25 |
% |
|
|
22,566 |
|
23 |
% |
|
Total |
|
$ |
48,947 |
|
100 |
% |
|
$ |
51,995 |
|
100 |
% |
|
|
$ |
103,841 |
|
100 |
% |
|
$ |
97,347 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Independent Distributors
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
46,000 |
|
73 |
% |
|
|
46,000 |
|
69 |
% |
|
|
|
|
|
|
|
|
|
|
Asia/Pacific &
Europe |
|
|
17,000 |
|
27 |
% |
|
|
21,000 |
|
31 |
% |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
63,000 |
|
100 |
% |
|
|
67,000 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Preferred
Customers(2) |
|
|
|
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, |
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
2015 |
|
|
|
|
|
|
|
|
|
|
|
Americas |
|
|
89,000 |
|
80 |
% |
|
|
96,000 |
|
82 |
% |
|
|
|
|
|
|
|
|
|
|
Asia/Pacific &
Europe |
|
|
22,000 |
|
20 |
% |
|
|
21,000 |
|
18 |
% |
|
|
|
|
|
|
|
|
|
|
Total |
|
|
111,000 |
|
100 |
% |
|
|
117,000 |
|
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
December 31, |
|
For the Six Months Ended
December 31, |
|
|
|
2016 |
|
|
2015 |
|
|
|
2016 |
|
|
2015 |
|
(In thousands) |
|
|
|
|
|
|
|
|
GAAP Net income |
$ |
283 |
|
$ |
1,600 |
|
|
$ |
1,463 |
|
$ |
2,666 |
|
Interest Expense |
|
138 |
|
|
619 |
|
|
|
275 |
|
|
1,368 |
|
Provision for income
taxes |
|
129 |
|
|
819 |
|
|
|
627 |
|
|
1,459 |
|
Depreciation and
amortization |
|
414 |
|
|
452 |
|
|
|
826 |
|
|
983 |
|
Non-GAAP EBITDA: |
|
964 |
|
|
3,490 |
|
|
|
3,191 |
|
|
6,476 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Stock compensation
expense |
|
576 |
|
|
450 |
|
|
|
1,515 |
|
|
642 |
|
Other (income) expense,
net |
|
150 |
|
|
(6 |
) |
|
|
321 |
|
|
210 |
|
Other adjustments* |
|
2,165 |
|
|
535 |
|
|
|
3,176 |
|
|
1,614 |
|
Total adjustments |
|
2,891 |
|
|
979 |
|
|
|
5,012 |
|
|
2,466 |
|
Non-GAAP Adjusted
EBITDA |
$ |
3,855 |
|
$ |
4,469 |
|
|
$ |
8,203 |
|
$ |
8,942 |
|
|
|
|
|
|
|
|
|
|
|
|
*Other adjustments for the three months ended December 31,
2016 include approximately $1.7 million for expenses associated
with the audit committee independent review and $0.5 million for
executive severance and search firm expenses. Other adjustments for
the three months ended December 31, 2015 include approximately $0.4
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 six months ended December 31, 2016
include approximately $2.7 million for expenses associated with the
audit committee independent review and $0.5 million for executive
severance and search firm expenses. Other adjustments for the six
months ended December 31, 2015 include approximately $0.7 million
for executive severance expenses, $0.8 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. |
|
|
|
|
|
|
|
|
|
|
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
December 31, |
|
For the Six Months Ended
December 31, |
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
2015* |
(In thousands) |
|
|
|
|
|
|
|
GAAP Net income |
$ |
283 |
|
$ |
1,600 |
|
$ |
1,463 |
|
$ |
2,666 |
Executive team
severance expenses, net (1) |
|
55 |
|
|
- |
|
|
55 |
|
|
314 |
Executive team
recruiting and transition expenses(2) |
|
45 |
|
|
243 |
|
|
45 |
|
|
503 |
Reverse stock split
administrative expenses(3) |
|
- |
|
|
103 |
|
|
- |
|
|
103 |
Audit committee
independent review expenses(4) |
|
1,211 |
|
|
- |
|
|
1,919 |
|
|
- |
Non-GAAP Net
Income: |
|
1,594 |
|
|
1,946 |
|
|
3,482 |
|
|
3,586 |
|
|
|
|
|
|
|
|
|
For the Three Months Ended
December 31, |
|
For the Six Months Ended
December 31, |
|
|
2016 |
|
|
2015 |
|
|
2016 |
|
2015* |
|
|
|
|
|
|
|
|
Diluted earnings per
share, as reported |
$ |
0.02 |
|
$ |
0.11 |
|
$ |
0.10 |
|
$ |
0.19 |
Executive team
severance expenses (1) |
|
- |
|
|
- |
|
|
- |
|
|
0.02 |
Executive team
recruiting and transition expenses(2) |
|
- |
|
|
0.02 |
|
|
- |
|
|
0.04 |
Reverse stock split
administrative expenses(3) |
|
- |
|
|
0.01 |
|
|
- |
|
|
0.01 |
Audit committee
independent review expenses(4) |
|
0.09 |
|
|
- |
|
|
0.14 |
|
|
- |
Diluted earnings per
share, as adjusted |
$ |
0.11 |
|
$ |
0.14 |
|
$ |
0.24 |
|
$ |
0.26 |
|
|
|
|
|
|
*Executive team severance expenses for the prior period
non-GAAP adjustments have been restated from previously reported
results to display these expenses net of unvested stock award
reversals for comparability purposes |
|
|
|
|
|
|
|
|
(1) Net of $204,000 of after-tax compensation expense benefit
related to unvested stock award reversals and net of $24,000 tax
expense for the three and six months ended December 31, 2016,
respectively, and net of $124,000 of after-tax compensation expense
benefit related to unvested stock award reversals and net of
$172,000 tax expense for the six months ended December 31,
2015 |
(2) Net of $19,000 tax expense for the three and six months
ended December 31, 2016 and net of $133,000 and $275,000 tax
expense for the three and six months ended December 31, 2015,
respectively |
(3) Net of $56,000 tax expense for the three and six months
ended December 31, 2015 |
(4) Net of $519,000 and $823,000 tax expense for the three and
six months ended December 31, 2016, respectively |
Investor Relations Contacts:
Cindy England
Director of Investor Relations
(801) 432-9036
cengland@lifevantage.com
-or-
Scott Van Winkle
Managing Director, ICR
(617) 956-6736
scott.vanwinkle@icrinc.com
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