LifeVantage Corporation (Nasdaq: LFVN) today reported financial
results for its third quarter ended March 31, 2021.
Third Quarter Fiscal 2021 Summary:
- Revenue of $51.6 million, a decrease
of 8.0% from the prior year period and a decline of 12.6%
sequentially;
- Total active accounts decreased 4.0%
compared to the prior year period while declining 3.4% sequentially
to 168,000. The year over year decline included declines in
distributors of 4.5% and customers of 3.7%. Compared to the second
quarter of fiscal 2021, distributors declined by 6.0% and customers
declined by 1.9%;
- Earnings per diluted share were
$0.12, up 9.1% over the prior year period and down 53.8%
sequentially;
- Adjusted earnings per diluted share
were $0.20, up 53.8% compared to $0.13 in the prior year period and
down 20.0% sequentially;
- Adjusted EBITDA decreased 5.7% to
$4.8 million compared to the prior year period and decreased 28.4%
sequentially;
- Repurchased 213,000, or
$2.0 million, of common shares; and
- Strong balance sheet with
$19.0 million of cash and no debt.
“While third quarter results did not meet our expectations, the
strategies we’ve been implementing to drive improved operating
performance are starting to have an impact, which we believe will
drive favorable results over the next couple quarters,” said Steve
Fife, Chief Executive Officer and Chief Financial Officer of
LifeVantage. “Supply chain challenges related to COVID-19 were a
factor in the third quarter, causing delays in new product launches
due to raw material shortages. Despite a more challenging
environment in the third quarter that resulted in an 8% decline in
revenue, we still grew adjusted earnings per share by 54% to $0.20
per share compared to the prior year period. We’re very encouraged
by our ongoing efforts to drive engagement and alignment across our
field organization. Trends improved as the quarter progressed and
recent activity by our top producers demonstrates their strong
commitment to growth through a combined focus on both core
competencies and new product offerings. We remain confident in our
business model and strategic direction and are well positioned to
drive long-term shareholder value.”
Third Quarter Fiscal 2021 Results
For the third fiscal quarter ended March 31, 2021, the
Company reported revenue of $51.6 million, an 8.0% decrease
compared to the third quarter of fiscal 2020. Revenue in the
Americas for the third quarter of fiscal 2021 decreased 9.4%
compared to the third quarter of fiscal 2020 and revenue in the
Asia/Pacific & Europe region decreased 4.7% compared to the
third quarter of fiscal 2020. Revenue for the third quarter of
fiscal 2021 was positively impacted $0.9 million, or 1.6%, by
foreign currency fluctuations associated with revenue generated in
international markets when compared to the third quarter of fiscal
2020.
Gross profit for the third quarter of fiscal 2021 was $42.8
million, or 82.9% of revenue, compared to $47.0 million, or 83.8%
of revenue, for the same period in fiscal 2020. The decrease in
gross margin as a percentage of revenue is primarily due to
increased shipping to customer expenses due to COVID-19, decreased
fee revenues as a result of fewer in-person distributor events
being held during the current year period due to the COVID-19
pandemic, and shifts in geographic and product sales mix.
Commissions and incentives expense for the third quarter of
fiscal 2021 was $25.2 million, or 48.8% of revenue, compared to
$26.7 million, or 47.6% of revenue, for the same period in fiscal
2020. The increase in commissions and incentives expense as a
percentage of revenue is due mainly to increased costs and accruals
associated with distributor recognition events and incentive trip
promotions.
Selling, general and administrative (SG&A) expense for the
third quarter of fiscal 2021 was $15.5 million, or 30.1% of
revenue, compared to $17.3 million, or 30.8% of revenue, for the
same period in fiscal 2020. Adjusted for nonrecurring expenses,
which are detailed in the GAAP to non-GAAP reconciliation tables
included at the end of this press release, adjusted non-GAAP
SG&A expenses for the third quarter of fiscal 2021 were $14.4
million, or 27.9% of revenue, compared to adjusted non-GAAP
SG&A expenses for the third quarter of fiscal 2020 of $16.9
million, or 30.2% of revenue. The year over year decrease in
non-GAAP SG&A expenses was primarily due to decreased event and
travel expenses as well as decreased stock and incentive
compensation expenses partially due to the departure of
executives.
Operating income for the third quarter of fiscal 2021 was $2.1
million, or 4.0% of revenue, compared to $3.0 million, or 5.4% of
revenue, for the third quarter of fiscal 2020. Accounting for
non-GAAP adjustments noted previously, adjusted non-GAAP operating
income for the third quarter of fiscal 2021 was $3.2 million, or
6.2% of revenue, compared to $3.4 million, or 6.0% of revenue, for
the third quarter of fiscal 2020.
Net income for the third quarter of fiscal 2021 was $1.7
million, or $0.12 per diluted share. This compares to net income
for the third quarter of fiscal 2020 of $1.7 million, or $0.11 per
diluted share. Accounting for the non-GAAP adjustments noted
previously, net of tax, adjusted non-GAAP net income for the third
quarter of fiscal 2021 increased 48.8% year over year, to $2.8
million, or $0.20 per diluted share. Accounting for the non-GAAP
adjustments noted previously, net of tax, adjusted non-GAAP net
income for the third quarter of fiscal 2020 was $1.9 million, or
$0.13 per diluted share. The Company’s effective tax rate decreased
to 5.8% in the third quarter of fiscal 2021 compared to 37.7% in
the prior year period. The decrease in the current year tax rate
positively impacted adjusted earnings per share by approximately
$0.07.
Adjusted EBITDA decreased 5.7% to $4.8 million for the third
quarter of fiscal 2021, compared to $5.1 million for the comparable
period in fiscal 2020.
Fiscal 2021 First Nine Month Results
For the first nine months of fiscal 2021, the Company reported
revenue of $165.4 million, a decrease of 4.7% as compared to $173.5
million for the first nine months of fiscal 2020. In the first nine
months of fiscal 2021, revenue in the Americas decreased 6.2% and
revenue in Asia/Pacific & Europe decreased 1.0%. Revenue for
the first nine months of fiscal 2021 was positively impacted $1.8
million, or 1.0%, by foreign currency fluctuations associated with
revenue generated in international markets when compared to the
first nine months of fiscal 2020.
Gross profit for the first nine months of fiscal 2021 was $137.0
million, or 82.8% of revenue, compared to $145.0 million, or 83.6%
of revenue, for the first nine months of fiscal 2020. The decrease
in gross margin as a percentage of revenue is primarily due to
increased shipping expenses, decreased fee revenues as a result of
fewer distributor meetings in conjunction with the COVID-19
pandemic, as well as shifts in geographic and product sales
mix.
Commissions and incentives expense for the first nine months of
fiscal 2021 was $77.9 million, or 47.1% of revenue, compared to
$82.7 million, or 47.6% of revenue, for the same period in fiscal
2020. Commissions and incentives expense as a percentage of revenue
decreased during the comparable periods due to the timing and
magnitude of investments in our promotional and incentive programs
and our red carpet program.
SG&A expense for the first nine months of fiscal 2021 was
$48.0 million, or 29.0% of revenue, compared to $53.1 million, or
30.6% of revenue, for the same period in fiscal 2020. Adjusted for
nonrecurring expenses and recoveries, which are detailed in the
GAAP to non-GAAP reconciliation tables included at the end of this
press release, adjusted non-GAAP SG&A expenses for the first
nine months of fiscal 2021 were $45.7 million, or 27.6% of revenue,
compared to adjusted non-GAAP SG&A expenses for the first nine
months of fiscal 2020 of $52.3 million, or 30.1% of revenue. The
year over year decrease in non-GAAP SG&A expenses was primarily
due to the cancellation of in-person events and decreased travel
expenses related to the restrictions associated with the COVID-19
pandemic, as well as lower stock and incentive compensation
expenses due in part to the departure of executives.
Operating income for the first nine months of fiscal 2021 was
$11.0 million, or 6.7% of revenue, compared to $9.3 million, or
5.3% of revenue, for the first nine months of fiscal 2020.
Accounting for non-GAAP adjustments noted previously, adjusted
non-GAAP operating income for the first nine months of fiscal 2021
was $13.4 million, or 8.1% of revenue, compared to $10.0 million,
or 5.8% of revenue, for the same period in fiscal 2020.
Net income for the first nine months of fiscal 2021 was $8.0
million, or $0.55 per diluted share compared to $7.7 million, or
$0.53 per diluted share for the first nine months ended 2020.
Accounting for the non-GAAP adjustments noted previously, net of
tax, adjusted non-GAAP net income for the first nine months of
fiscal 2021 increased 19.3% to $10.0 million, or $0.69 per diluted
share. This compares to adjusted non-GAAP net income for the first
nine months of fiscal 2020 of $8.4 million, or $0.57 per diluted
share. On a non-GAAP basis, the Company’s effective tax rate
increased to 24.0% in the first nine months of fiscal 2021 compared
to an effective tax rate of 10.6% in the prior year period.
The increase in the current year tax rate negatively impacted
adjusted earnings per share by approximately $0.12.
Adjusted EBITDA increased 15.6% to $18.2 million for the first
nine months of fiscal 2021, compared to $15.8 million for the
comparable period in fiscal 2020.
Balance Sheet & Liquidity
The Company generated $7.9 million of cash from operations
during the first nine months of fiscal 2021 compared to $9.0
million in the same period in fiscal 2020. The Company's cash and
cash equivalents at March 31, 2021 were $19.0 million,
compared to $22.1 million at June 30, 2020. The Company had no debt
outstanding at March 31, 2021 and June 30, 2020,
respectively. During the third quarter of fiscal 2021, the Company
repurchased approximately 213,000 common shares for
$2.0 million under its share repurchase program.
Fiscal Year 2021 Guidance
The Company is updating its outlook for fiscal 2021 adjusted net
income and adjusted EBITDA, and now anticipates fiscal 2021 revenue
to be between $220 million to $223 million, reflecting the impact
we’ve experienced due to COVID-19 on our consumer base and delays
in the timing of our product and geographic launches. The Company
expects to generate adjusted EBITDA of $24 million to $25 million,
with adjusted earnings per share in the range of $0.90 to $0.93,
which assumes a full year tax rate of approximately 26%. The
Company's guidance for adjusted non-GAAP EBITDA and adjusted
non-GAAP earnings per diluted share excludes any non-operating or
non-recurring expenses that may materialize during fiscal 2021.
This guidance reflects the current trends in the business and the
Company’s current view as to the impact of the COVID-19 pandemic on
its business. The Company is not providing guidance for GAAP
earnings per diluted share for fiscal 2021 due to the potential
occurrence of one or more non-operating, one-time expenses, which
the Company does not believe it can reliably predict.
Conference Call Information
The 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 (877) 705-6003 from the U.S. International
callers can dial (201) 493-6725. A telephone replay will be
available approximately two hours after the call concludes and will
be available through Thursday, May 6, 2021, by dialing (844)
512-2921 from the U.S. and entering confirmation code 13718784, or
(412) 317-6671 from international locations, and entering
confirmation code 13718784.
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-and-presentations or
directly at http://public.viavid.com/index.php?id=144402.The
webcast will be archived for approximately 30 days.
About LifeVantage Corporation
LifeVantage Corporation (Nasdaq: LFVN) is a pioneer in
Nutrigenomics, a new science dedicated to biohacking the human
aging code. The Company engages in the identification, research,
development and distribution of advanced nutraceutical dietary
supplements and skin and hair care products, including its
Protandim® product line, LifeVantage® Omega+, ProBio and Daily
Wellness dietary supplements, the TrueScience® line of Nrf2 infused
skin care and hair care products, Petandim® for Dogs, Axio® smart
energy drink mixes, and the PhysIQ™ weight management system.
LifeVantage was founded in 2003 and is headquartered in Lehi, Utah.
For more information, visit www.lifevantage.com.
Forward Looking Statements
This 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," "will," "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 executing
against and the benefits of our key initiatives, future growth,
including geographic and product expansion, 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, further deterioration to
the global economic and operating environments as a result of
future COVID-19 developments, as well as 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
as GAAP net income less certain tax adjusted non-recurring one-time
expenses incurred during the period and Non-GAAP Earnings per Share
as Non-GAAP Net Income divided by weighted-average shares
outstanding.
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 reconciliations of 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.
Investor Relations Contacts:
Reed Anderson, ICR (646) 277-1260reed.anderson@icrinc.com
LIFEVANTAGE CORPORATION AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(unaudited) |
(In thousands, except per
share data) |
March 31, 2021 |
|
June 30, 2020 |
ASSETS |
|
|
|
Current assets |
|
|
|
Cash and cash equivalents |
$ |
18,955 |
|
|
$ |
22,138 |
|
Accounts receivable |
3,307 |
|
|
2,610 |
|
Income tax receivable |
764 |
|
|
— |
|
Inventory, net |
14,820 |
|
|
13,888 |
|
Prepaid expenses and other |
5,774 |
|
|
5,232 |
|
Total current assets |
43,620 |
|
|
43,868 |
|
|
|
|
|
Property and equipment, net |
11,428 |
|
|
7,170 |
|
Right-of-use assets |
13,579 |
|
|
956 |
|
Intangible assets, net |
752 |
|
|
851 |
|
Deferred income tax asset |
1,823 |
|
|
2,164 |
|
Equity securities |
2,205 |
|
|
2,205 |
|
Other long-term assets |
1,712 |
|
|
1,663 |
|
TOTAL ASSETS |
$ |
75,119 |
|
|
$ |
58,877 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
Current liabilities |
|
|
|
Accounts payable |
$ |
5,161 |
|
|
$ |
3,521 |
|
Commissions payable |
7,929 |
|
|
9,219 |
|
Income tax payable |
358 |
|
|
784 |
|
Lease liabilities |
1,639 |
|
|
1,184 |
|
Other accrued expenses |
7,190 |
|
|
10,311 |
|
Total current liabilities |
22,277 |
|
|
25,019 |
|
|
|
|
|
Long-term lease
liabilities |
16,195 |
|
|
— |
|
Other long-term
liabilities |
1,019 |
|
|
604 |
|
Total liabilities |
39,491 |
|
|
25,623 |
|
Commitments and
contingencies |
|
|
|
Stockholders' equity |
|
|
|
Preferred stock — par value $0.0001 per share, 5,000 shares
authorized, no shares issued or outstanding |
— |
|
|
— |
|
Common stock — par value $0.0001 per share, 40,000 shares
authorized and 13,989 and 14,313 issued and outstanding as of March
31, 2021 and June 30, 2020, respectively |
1 |
|
|
1 |
|
Additional paid-in capital |
128,842 |
|
|
126,416 |
|
Accumulated deficit |
(93,320 |
) |
|
(93,307 |
) |
Accumulated other comprehensive income |
105 |
|
|
144 |
|
Total stockholders’ equity |
35,628 |
|
|
33,254 |
|
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY |
$ |
75,119 |
|
|
$ |
58,877 |
|
LIFEVANTAGE CORPORATION AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF OPERATIONS |
(unaudited) |
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Nine Months Ended March 31, |
(In thousands, except per
share data) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Revenue, net |
$ |
51,570 |
|
|
$ |
56,077 |
|
|
$ |
165,405 |
|
|
$ |
173,547 |
|
Cost of sales |
8,818 |
|
|
9,095 |
|
|
28,404 |
|
|
28,515 |
|
Gross profit |
42,752 |
|
|
46,982 |
|
|
137,001 |
|
|
145,032 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Commissions and incentives |
25,154 |
|
|
26,668 |
|
|
77,939 |
|
|
82,677 |
|
Selling, general and administrative |
15,510 |
|
|
17,281 |
|
|
48,027 |
|
|
53,098 |
|
Total operating expenses |
40,664 |
|
|
43,949 |
|
|
125,966 |
|
|
135,775 |
|
Operating income |
2,088 |
|
|
3,033 |
|
|
11,035 |
|
|
9,257 |
|
|
|
|
|
|
|
|
|
Other expense: |
|
|
|
|
|
|
|
Interest expense, net |
(2 |
) |
|
(30 |
) |
|
(17 |
) |
|
(119 |
) |
Other expense, net |
(255 |
) |
|
(337 |
) |
|
(263 |
) |
|
(565 |
) |
Total other expense |
(257 |
) |
|
(367 |
) |
|
(280 |
) |
|
(684 |
) |
Income before income
taxes |
1,831 |
|
|
2,666 |
|
|
10,755 |
|
|
8,573 |
|
Income tax expense |
(107 |
) |
|
(1,005 |
) |
|
(2,768 |
) |
|
(848 |
) |
Net income |
$ |
1,724 |
|
|
$ |
1,661 |
|
|
$ |
7,987 |
|
|
$ |
7,725 |
|
Net income per share: |
|
|
|
|
|
|
|
Basic |
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.56 |
|
|
$ |
0.55 |
|
Diluted |
$ |
0.12 |
|
|
$ |
0.11 |
|
|
$ |
0.55 |
|
|
$ |
0.53 |
|
Weighted-average shares
outstanding: |
|
|
|
|
|
|
|
Basic |
14,071 |
|
|
14,252 |
|
|
14,175 |
|
|
14,054 |
|
Diluted |
14,212 |
|
|
14,689 |
|
|
14,420 |
|
|
14,592 |
|
LIFEVANTAGE CORPORATION AND SUBSIDIARIES |
|
|
Revenue by Region |
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Nine Months Ended March 31, |
(In thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
Americas |
$ |
36,421 |
|
|
71 |
% |
|
$ |
40,181 |
|
|
72 |
% |
|
$ |
116,980 |
|
|
71 |
% |
|
$ |
124,646 |
|
|
72 |
% |
Asia/Pacific & Europe |
15,149 |
|
|
29 |
% |
|
15,896 |
|
|
28 |
% |
|
48,425 |
|
|
29 |
% |
|
48,901 |
|
|
28 |
% |
Total |
$ |
51,570 |
|
|
100 |
% |
|
$ |
56,077 |
|
|
100 |
% |
|
$ |
165,405 |
|
|
100 |
% |
|
$ |
173,547 |
|
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Accounts |
|
|
|
|
|
|
|
|
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of March 31, |
|
|
|
|
|
|
|
|
|
2021 |
|
2020 |
|
Change fromPrior Year |
|
PercentChange |
|
|
|
|
Active Independent
Distributors (1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
42,000 |
|
|
67 |
% |
|
44,000 |
|
|
67 |
% |
|
(2,000 |
) |
|
(4.5 |
)% |
|
|
|
|
Asia/Pacific & Europe |
21,000 |
|
|
33 |
% |
|
22,000 |
|
|
33 |
% |
|
(1,000 |
) |
|
(4.5 |
)% |
|
|
|
|
Total Active Independent Distributors |
63,000 |
|
|
100 |
% |
|
66,000 |
|
|
100 |
% |
|
(3,000 |
) |
|
(4.5 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Customers (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
79,000 |
|
|
75 |
% |
|
85,000 |
|
|
78 |
% |
|
(6,000 |
) |
|
(7.1 |
)% |
|
|
|
|
Asia/Pacific & Europe |
26,000 |
|
|
25 |
% |
|
24,000 |
|
|
22 |
% |
|
2,000 |
|
|
8.3 |
% |
|
|
|
|
Total Active Customers |
105,000 |
|
|
100 |
% |
|
109,000 |
|
|
100 |
% |
|
(4,000 |
) |
|
(3.7 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active Accounts (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas |
121,000 |
|
|
72 |
% |
|
129,000 |
|
|
74 |
% |
|
(8,000 |
) |
|
(6.2 |
)% |
|
|
|
|
Asia/Pacific & Europe |
47,000 |
|
|
28 |
% |
|
46,000 |
|
|
26 |
% |
|
1,000 |
|
|
2.2 |
% |
|
|
|
|
Total Active Accounts |
168,000 |
|
|
100 |
% |
|
175,000 |
|
|
100 |
% |
|
(7,000 |
) |
|
(4.0 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Active
Independent Distributors have purchased product in the prior three
months for retail or personal consumption. |
(2) Active
Customers have purchased product in the prior three months for
personal consumption only. |
(3) Total Active
Accounts is the sum of Active Independent Distributor accounts and
Active Customer accounts. |
LIFEVANTAGE CORPORATION AND SUBSIDIARIES |
Reconciliation of GAAP Net Income to Non-GAAP EBITDA and
Non-GAAP Adjusted EBITDA |
(Unaudited) |
|
|
|
|
|
Three Months Ended March 31, |
|
Nine Months Ended March 31, |
(In thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
GAAP Net income |
$ |
1,724 |
|
|
$ |
1,661 |
|
|
$ |
7,987 |
|
|
$ |
7,725 |
|
Interest Expense |
2 |
|
|
30 |
|
|
17 |
|
|
119 |
|
Provision for income
taxes |
107 |
|
|
1,005 |
|
|
2,768 |
|
|
848 |
|
Depreciation and
amortization(1) |
860 |
|
|
708 |
|
|
2,643 |
|
|
1,953 |
|
Non-GAAP EBITDA: |
2,693 |
|
|
3,404 |
|
|
13,415 |
|
|
10,645 |
|
Adjustments: |
|
|
|
|
|
|
|
Stock compensation
expense |
668 |
|
|
1,163 |
|
|
2,115 |
|
|
4,081 |
|
Other expense, net |
255 |
|
|
337 |
|
|
263 |
|
|
565 |
|
Other adjustments(2) |
1,184 |
|
|
186 |
|
|
2,436 |
|
|
472 |
|
Total adjustments |
2,107 |
|
|
1,686 |
|
|
4,814 |
|
|
5,118 |
|
Non-GAAP Adjusted EBITDA |
$ |
4,800 |
|
|
$ |
5,090 |
|
|
$ |
18,229 |
|
|
$ |
15,763 |
|
|
|
|
|
|
|
|
|
(1) Includes
$101,000 of accelerated depreciation related to a change in lease
term and $335,000 leasehold depreciation for the nine months ended
March 31, 2021. Includes $152,000 of accelerated depreciation
related to a change in lease term for the nine months ended March
31, 2020. |
|
|
|
|
|
|
|
|
(2) Other adjustments
breakout: |
|
|
|
|
|
|
|
Class-action lawsuit expenses |
$ |
645 |
|
|
$ |
182 |
|
|
$ |
858 |
|
|
$ |
369 |
|
Executive team severance expenses, net |
168 |
|
|
— |
|
|
691 |
|
|
— |
|
Executive team recruiting and transition expenses |
371 |
|
|
— |
|
|
392 |
|
|
— |
|
Lease abandonment |
— |
|
|
— |
|
|
495 |
|
|
— |
|
Other nonrecurring legal and accounting expenses |
— |
|
|
4 |
|
|
— |
|
|
103 |
|
Total adjustments |
$ |
1,184 |
|
|
$ |
186 |
|
|
$ |
2,436 |
|
|
$ |
472 |
|
LIFEVANTAGE CORPORATION AND SUBSIDIARIES |
Reconciliation of GAAP Net Income to Non-GAAP Net Income
and Non-GAAP Adjusted EPS |
(Unaudited) |
|
|
|
|
|
Three Months Ended March 31, |
|
Nine Months Ended March 31, |
(In thousands) |
2021 |
|
2020 |
|
2021 |
|
2020 |
GAAP Net income |
$ |
1,724 |
|
|
$ |
1,661 |
|
|
$ |
7,987 |
|
|
$ |
7,725 |
|
Adjustments: |
|
|
|
|
|
|
|
Executive team severance expenses, net(1) |
112 |
|
|
— |
|
|
185 |
|
|
— |
|
Executive team recruiting and transition expenses |
371 |
|
|
— |
|
|
392 |
|
|
— |
|
Class-action lawsuit expenses |
645 |
|
|
182 |
|
|
858 |
|
|
369 |
|
Other nonrecurring legal and accounting expenses |
— |
|
|
4 |
|
|
— |
|
|
103 |
|
Accelerated depreciation related to change in lease term |
— |
|
|
152 |
|
|
101 |
|
|
304 |
|
Lease abandonment(2) |
— |
|
|
— |
|
|
830 |
|
|
— |
|
Tax impact of adjustments |
(66 |
) |
|
(127 |
) |
|
(380 |
) |
|
(141 |
) |
Total adjustments, net of
tax |
1,062 |
|
|
211 |
|
|
1,986 |
|
|
635 |
|
Non-GAAP Net Income: |
$ |
2,786 |
|
|
$ |
1,872 |
|
|
$ |
9,973 |
|
|
$ |
8,360 |
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, |
|
Nine Months Ended March 31, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Diluted earnings per share, as
reported |
$ |
0.12 |
|
|
$ |
0.11 |
|
|
$ |
0.55 |
|
|
$ |
0.53 |
|
Total adjustments, net of tax |
0.07 |
|
|
0.01 |
|
|
0.14 |
|
|
0.04 |
|
Non-GAAP adjusted diluted
earnings per share(3) |
$ |
0.20 |
|
|
$ |
0.13 |
|
|
$ |
0.69 |
|
|
$ |
0.57 |
|
|
|
|
|
|
|
|
|
(1) Net of $56,000 and $506,000 of compensation expense benefit
related to unvested stock award reversals for the three and nine
months ended March 31, 2021, respectively. |
(2) Includes remaining lease rent expense of $495,000 and leasehold
depreciation of $335,000 for the nine months ended March 31,
2021. |
(3) May not add due to rounding. |
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