• LifeVantage Announces Financial Results for the Fourth Fiscal Quarter and Full Fiscal Year 2021

    Источник: Nasdaq GlobeNewswire / 19 авг 2021 16:05:00   America/New_York

    Revenue of $220 million for Fiscal 2021

    Fourth Quarter Adjusted EPS Increased 10.7% Year over Year

    SALT LAKE CITY, Aug. 19, 2021 (GLOBE NEWSWIRE) -- LifeVantage Corporation (Nasdaq: LFVN) today reported financial results for its fourth quarter and full fiscal year ended June 30, 2021.

    Fourth Quarter Fiscal 2021 Summary*:

    • Revenue of $54.8 million, a decrease of 7.7% from the prior year period and an increase of 6.2% sequentially;
    • Total active accounts decreased 5.0% compared to the prior period while increasing 1.2% sequentially to 170,000. The year over year decline includes a decline in distributors of 13.7%, partially offset by an increase of 0.9% in customers. Compared to the third quarter of fiscal 2021, the number of distributors was flat and customers grew by 1.9%;
    • Earnings per diluted share were $0.35, up 34.6% over the prior year period and up 191.7% sequentially;
    • Adjusted earnings per diluted share were $0.31, up 10.7% compared to $0.28 in the prior year period and up 55.0% sequentially; and
    • Adjusted EBITDA decreased 19.3% to $6.6 million compared to the prior period and increased 37.9% sequentially.

    * All comparisons are on a year over year basis and compare the fourth quarter of fiscal 2021 to the fourth quarter of fiscal 2020, unless otherwise noted.

    Fiscal Year 2021 Summary**:

    • Revenue decreased 5.5% to $220.2 million;
    • Revenue in the Americas decreased 7.0% and revenue in Asia/Pacific & Europe decreased 1.6%;
    • Earnings per diluted share were $0.90, compared to $0.79 in fiscal 2020;
    • Adjusted earnings per diluted share were $1.00, compared to $0.86 in fiscal 2020;
    • Adjusted EBITDA increased 3.7% to $24.8 million;
    • Repurchased 1.2 million, or $11.9 million, of common shares; and
    • Strong balance sheet with $23.2 million of cash and no debt.

    **All growth rates compare fiscal 2021 to fiscal 2020.

    “Fourth quarter revenues results were in line with our expectations and earnings were slightly ahead as we continued to focus on our core strategies for driving long-term growth and operational improvement. Adjusted earnings per share increased 11% despite an 8% decline in net sales,“ said Steve Fife, Chief Executive Officer and Chief Financial Officer of LifeVantage. “The sequential improvement in the number of customers was particularly encouraging and the first positive inflection in the past year. Our initiatives to drive active account growth through distributor enrollment and increased retention continue to gain traction and we expect to show further progress over the next several quarters. Consumers continue prioritizing health and wellness, which we believe creates a compelling long-term growth outlook for LifeVantage based on our proven products, strong balance sheet and deeply committed management team.”

    Fourth Quarter Fiscal 2020 Results

    For the fourth fiscal quarter ended June 30, 2021, the Company reported revenue of $54.8 million, a 7.7% decrease over the fourth quarter of fiscal 2020. Revenue in the Americas for the fourth quarter of fiscal 2021 decreased 9.6% compared to the fourth quarter of fiscal 2020 and revenue in the Asia/Pacific & Europe region decreased 3.3% compared to the fourth quarter of fiscal 2020. Revenue for the fourth quarter of fiscal 2021 was positively impacted $0.8 million, or 1.3%, by foreign currency fluctuations associated with revenue generated in international markets when compared to the fourth quarter of fiscal 2020.

    Gross profit for the fourth quarter of fiscal 2021 was $45.0 million, or 82.1% of revenue, compared to $49.9 million, or 84.1% 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 expenses to customers 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 fourth quarter of fiscal 2021 was $25.6 million, or 46.7% of revenue, compared to $28.9 million, or 48.7% of revenue, for the same period in fiscal 2020. The decrease in commissions and incentives expense as a percentage of revenue is due mainly to the timing and magnitude of promotional and incentive activities as compared to the prior year quarter.

    Selling, general and administrative expense (SG&A) for the fourth quarter of fiscal 2021 was $12.8 million, or 23.4% of revenue, compared to $14.8 million, or 25.0% 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 expense for the fourth quarter of fiscal 2021 was $13.6 million, or 24.8% of revenue, compared to adjusted non-GAAP SG&A expense for the fourth quarter of fiscal 2020 of $14.3 million, or 24.1% of revenue. The year over year decrease in non-GAAP SG&A expense was primarily due to decreased stock and incentive compensation expenses due to performance against current year bonus targets as well as the departure of executives during the current year period.

    Operating income for the fourth quarter of fiscal 2021 was $6.6 million, or 12.0% of revenue, compared to $6.2 million, or 10.5% of revenue, for the fourth quarter of fiscal 2020. Accounting for the non-GAAP adjustments noted previously, adjusted non-GAAP operating income for the fourth quarter of fiscal 2021 was $5.8 million, or 10.6% of revenue, compared to $6.7 million, or 11.3% of revenue, for the fourth quarter of fiscal 2020.

    Net income for the fourth quarter of fiscal 2021 was $4.9 million, or $0.35 per diluted share. This compares to net income for the fourth quarter of fiscal 2020 of $3.8 million, or $0.26 per diluted share. Accounting for the non-GAAP adjustments noted previously, net of tax, adjusted non-GAAP net income for the fourth quarter of fiscal 2021 increased 4.6% to $4.3 million, or $0.31 per diluted share. Accounting for the non-GAAP adjustments noted previously, net of tax, adjusted non-GAAP net income for the fourth quarter of fiscal 2020 was $4.1 million, or $0.28 per diluted share. The Company’s effective tax rate decreased to 24.3% in the fourth quarter of fiscal 2021 compared to 37.2% in the prior year period. The decrease in the tax rate in the current year period positively impacted adjusted earnings per share by approximately $0.05.

    Adjusted EBITDA decreased 19.3% to $6.6 million for the fourth quarter of fiscal 2021, compared to $8.2 million for the comparable period in fiscal 2020.

    Fiscal 2021 Full Year Results

    For the fiscal year ended June 30, 2021, the Company reported net revenue of $220.2 million, a decrease of 5.5% compared to $232.9 million for fiscal 2020. In fiscal 2021, revenue in the Americas decreased 7.0% and revenue in Asia/Pacific & Europe decreased 1.6%. Revenue for fiscal 2020 was positively impacted $2.6 million, or 1.1%, by foreign currency fluctuations associated with revenue generated in international markets when compared to fiscal year 2020.

    Gross profit during fiscal 2021 was $182.0 million, or 82.7% of revenue, compared to $195.0 million, or 83.7% of revenue, for fiscal 2020. The decrease in gross margin as a percentage of revenue is primarily due to increased shipping expenses as global demand for shipping increased significantly due to the COVID-19 pandemic.

    Commissions and incentives expense for fiscal 2021 was $103.5 million, or 47.0% of revenue, compared to $111.6 million, or 47.9% of revenue, for fiscal 2020. Commissions and incentives expense as a percentage of revenue decreased as a result of the cancellation of incentive events during the year due to the COVID 19 pandemic and associated travel and meeting restrictions as well as the continued refinement and the timing and magnitude of our various promotional and incentive programs during the year.

    SG&A expense for fiscal 2021 was $60.8 million, or 27.6% of revenue, compared to $67.9 million, or 29.2% of revenue, for 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 expense for fiscal 2021 was $59.2 million, or 26.9% of revenue, compared to adjusted non-GAAP SG&A expense for fiscal 2020 of $66.7 million, or 28.6% of revenue. The year over year decrease in non-GAAP SG&A expense 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 expense due to performance against current year bonus targets as well as the departure of executives during the current year.

    Operating income for fiscal 2021 was $17.6 million, or 8.0% of revenue, compared to $15.5 million, or 6.6% of revenue, for fiscal 2020. Accounting for non-GAAP adjustments noted previously, adjusted non-GAAP operating income for fiscal 2021 was $19.2 million, or 8.7% of revenue, compared to $16.7 million, or 7.2% of revenue, for fiscal 2020.

    Net income for fiscal 2021 was $12.9 million, or $0.90 per diluted share, compared to $11.5 million, or $0.79 per diluted share for fiscal 2020. Accounting for the non-GAAP adjustments noted previously, net of tax, adjusted non-GAAP net income for fiscal 2021 increased 14.4% to $14.3 million, or $1.00 per diluted share. This compares to adjusted non-GAAP net income for fiscal 2020 of $12.5 million, or $0.86 per diluted share. On a non-GAAP basis, the Company’s effective tax rate increased to 24.1% in fiscal 2021 compared to an effective tax rate of 21.6% in the prior year. The increase in the current year tax rate negatively impacted adjusted earnings per share by approximately $0.03.

    Adjusted EBITDA increased 3.7% to $24.8 million for fiscal 2021, compared to $24.0 million for fiscal 2020.

    Balance Sheet & Liquidity

    The Company generated $16.3 million of cash from operations during fiscal 2021 compared to $18.3 million during fiscal 2020. The Company's cash and cash equivalents at June 30, 2021 were $23.2 million, compared to $22.1 million at June 30, 2020. The Company had no debt outstanding at June 30, 2021 and 2020, respectively. During the fourth quarter of fiscal 2021, the Company repurchased approximately 0.5 million common shares for $3.9 million under its share repurchase program.

    Fiscal Year 2022 Guidance

    The Company expects to generate revenue in the range of $225 million to $235 million in fiscal year 2022 and adjusted EBITDA of $22 million to $24 million, with adjusted earnings per share in the range of $0.83 to $0.87, which assumes a full year tax rate of approximately 26%. 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'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 2022. The Company is not providing guidance for GAAP earnings per diluted share for fiscal 2022 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, August 26, 2021, by dialing (844) 512-2921 from the U.S. and entering confirmation code 13721246, or (412) 317-6671 from international locations, and entering confirmation code 13721246.

    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=145578.The webcast will be archived for approximately 30 days.

    About LifeVantage Corporation

    LifeVantage Corporation (Nasdaq: LFVN) is a pioneer in nutrigenomics, the study of how nutrition and naturally occurring compounds affect human genes to support good health. The Company engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, skin and hair care, bath & body, and targeted relief products. The Company’s line of scientifically-validated dietary supplements includes its flagship Protandim® family of products, LifeVantage® Omega+, ProBio, and Daily Wellness dietary supplements, TrueScience® is the Company's line of skin, hair, bath & body, and targeted relief products. The Company also markets and sells Petandim®, its companion pet supplement formulated to combat oxidative stress in dogs, Axio® its nootropic energy drink mixes, and PhysIQ™, its smart 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 Contact:

    Reed Anderson, ICR
    (646) 277-1260
    reed.anderson@icrinc.com

    LIFEVANTAGE CORPORATION AND SUBSIDIARIES
    CONSOLIDATED BALANCE SHEETS
     
     As of
    (In thousands, except per share data)June 30, 2021 June 30, 2020
    ASSETS   
    Current assets   
    Cash and cash equivalents$23,174  $22,138 
    Accounts receivable2,925  2,610 
    Income tax receivable1,038  — 
    Inventory, net16,145  13,888 
    Prepaid expenses and other4,772  5,232 
    Total current assets48,054  43,868 
        
    Property and equipment, net11,123  7,170 
    Right-of-use assets13,700  956 
    Intangible assets, net719  851 
    Deferred income tax asset1,208  2,164 
    Equity securities2,205  2,205 
    Other long-term assets1,723  1,663 
    TOTAL ASSETS$78,732  $58,877 
        
    LIABILITIES AND STOCKHOLDERS' EQUITY   
    Current liabilities   
    Accounts payable$6,744  $3,521 
    Commissions payable8,138  9,219 
    Income tax payable830  784 
    Lease liabilities2,151  1,184 
    Other accrued expenses7,336  10,311 
    Current portion of long-term debt, net—  — 
    Total current liabilities25,199  25,019 
        
    Long-term lease liabilities16,032  — 
    Other long-term liabilities694  604 
    Total liabilities41,925  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 13,609 and 14,113 issued and outstanding as of June 30, 2021 and 2020, respectively1  1 
    Additional paid-in capital129,048  126,416 
    Accumulated deficit(92,346) (93,307)
    Accumulated other comprehensive income104  144 
    Total stockholders’ equity36,807  33,254 
    TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$78,732  $58,877 
            


    LIFEVANTAGE CORPORATION AND SUBSIDIARIES
    CONSOLIDATED STATEMENTS OF OPERATIONS
            
     For the Three Months Ended
    June 30,
    (unaudited)    		 Fiscal Year Ended June 30,
    (In thousands, except per share data)2021 2020 2021 2020
    Revenue, net$54,777  $59,368  $220,181  $232,915 
    Cost of sales9,782  9,449  38,187  37,964 
    Gross profit44,995  49,919  181,994  194,951 
    Operating expenses:       
    Commissions and incentives25,603  28,894  103,541  111,571 
    Selling, general and administrative12,811  14,816  60,838  67,914 
    Total operating expenses38,414  43,710  164,379  179,485 
    Operating income6,581  6,209  17,615  15,466 
    Other expense:       
    Interest expense—  (1) (17) (120)
    Other expense, net(103) (120) (366) (685)
    Total other expense(103) (121) (383) (805)
    Income before income taxes6,478  6,088  17,232  14,661 
    Income tax expense(1,571) (2,264) (4,338) (3,112)
    Net income$4,907  $3,824  $12,894  $11,549 
    Net income per share:       
    Basic$0.36  $0.27  $0.92  $0.82 
    Diluted$0.35  $0.26  $0.90  $0.79 
    Weighted-average shares outstanding:       
    Basic13,754  14,258  14,070  14,105 
    Diluted13,879  14,703  14,268  14,599 


    LIFEVANTAGE CORPORATION AND SUBSIDIARIES
                    
     Revenue by Region        
        
     Three Months Ended June 30,
    (unaudited)    		 Fiscal Year Ended June 30,
    (In thousands)2021 2020 2021 2020
    Americas$37,677  69% $41,690  70% $154,655  70 % $166,336  71%
    Asia/Pacific & Europe17,100  31% 17,678  30% 65,526  30 % 66,579  29%
    Total$54,777  100% $59,368  100% $220,181  100 % $232,915  100%
                    
                    
     Active Accounts
    (unaudited)    		        
                    
     As of June 30,        
     2021 2020 Change
    from Prior
    Year    		 Percent
    Change    		    
    Active Independent Distributors(1)               
    Americas41,000  65% 49,000  67% (8,000) (16.3)%    
    Asia/Pacific & Europe22,000  35% 24,000  33% (2,000) (8.3)%    
    Total Active Independent Distributors63,000  100% 73,000  100% (10,000) (13.7)%    
                    
    Active Customers(2)               
    Americas78,000  73% 83,000  78% (5,000) (6.0)%    
    Asia/Pacific & Europe29,000  27% 23,000  22% 6,000  26.1 %    
    Total Active Customers107,000  100% 106,000  100% 1,000  0.9 %    
                    
    Active Accounts(3)               
    Americas119,000  70% 132,000  74% (13,000) (9.8)%    
    Asia/Pacific & Europe51,000  30% 47,000  26% 4,000  8.5 %    
    Total Active Accounts170,000  100% 179,000  100% (9,000) (5.0)%    
                    
    (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 Distributors and Active Customers.


    LIFEVANTAGE CORPORATION AND SUBSIDIARIES
    Reconciliation of GAAP Net Income to Non-GAAP EBITDA and Non-GAAP Adjusted EBITDA:
    (Unaudited)
        
     Three Months Ended June 30, Fiscal Year Ended June 30,
    (In thousands)2021 2020 2021 2020
    GAAP Net income$4,907  $3,824  $12,894  $11,549 
    Interest expense—  1  17  120 
    Provision for income taxes1,571  2,264  4,338  3,112 
    Depreciation and amortization(1)817  824  3,460  2,777 
    Non-GAAP EBITDA:7,295  6,913  20,709  17,558 
    Adjustments:       
    Stock compensation expense(79) 838  2,036  4,919 
    Other expense, net103  120  366  685 
    Other adjustments(2)(700) 334  1,736  806 
    Total adjustments(676) 1,292  4,138  6,410 
    Non-GAAP Adjusted EBITDA$6,619  $8,205  $24,847  $23,968 
            
    (1) Includes $101,000 of accelerated depreciation related to a change in lease term and $335,000 leasehold depreciation for the fiscal year ended June 30, 2021. Includes $152,000 and $456,000 of accelerated depreciation related to a change in lease term for the three months and fiscal year ended June 30, 2020.
            
    (2) Other adjustments breakout:       
    Lease abandonment$—  $—  $495  $— 
    Class-action lawsuit expenses, net of recoveries$(1,002) $334  $(144) $703 
    Executive team severance expenses, net160  —  851  — 
    Executive team recruiting and transition expenses142  —  534  — 
    Other nonrecurring legal and accounting expenses—  —  —  103 
    Insurance reimbursement—  —  —  — 
    Change in estimate of accrued import liabilities—  —  —  — 
    Total adjustments$(700) $334  $1,736  $806 


    LIFEVANTAGE CORPORATION AND SUBSIDIARIES
    Reconciliation of GAAP Net Income to Non-GAAP Net Income and Non-GAAP Adjusted EPS:
    (Unaudited)
        
     Three Months Ended June 30, Fiscal Year Ended June 30,
    (In thousands)2021 2020 2021 2020
    GAAP Net income$4,907  $3,824  $12,894  $11,549 
    Adjustments:       
    Executive team severance expenses, net(1)83  —  269  — 
    Executive team recruiting and transition expenses142  —  534  — 
    Lease abandonment(2)—  —  830  — 
    Class-action lawsuit expenses, net of recoveries(1,002) 334  (144) 703 
    Other nonrecurring legal and accounting expenses—  —  —  103 
    Accelerated depreciation related to change in lease term—  152  101  456 
    Tax impact of adjustments188  (181) (192) (323)
    Total adjustments, net of tax(589) 305  1,398  939 
    Non-GAAP Net Income$4,318  $4,129  $14,292  $12,488 
            
            
     Three Months Ended June 30, Fiscal Year Ended June 30,
     2021 2020 2021 2020
    Diluted earnings per share, as reported$0.35  $0.26  $0.90  $0.79 
    Total adjustments, net of tax(0.04) 0.02  0.10  0.06 
    Diluted earnings per share, as adjusted(3)$0.31  $0.28  $1.00  $0.86 
            
    (1) Net of $77,000 and $582,000 of compensation expense benefit related to unvested stock award reversals for the three months and fiscal year ended June 30, 2021
    (2) Includes remaining lease rent expense of $495,000 and leasehold depreciation of $335,000 for the fiscal year ended June 30, 2021.
    (3) May not add due to rounding.

     


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