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LifeVantage Announces Financial Results for the Third Quarter of Fiscal 2020

Seeking Alpha
LifeVantage Announces Financial Results for the Third Quarter of Fiscal 2020

|GlobeNewswire|About: LFVN

Third Quarter Revenue of $56 million

Third Quarter Adjusted EBITDA Increased 26% Year over Year

Reiterates Fiscal 2020 Adjusted Earnings Per Share and EBITDA Guidance

SALT LAKE CITY, May 05, 2020 (GLOBE NEWSWIRE) -- LifeVantage Corporation (LFVN) today reported financial results for its third quarter ended March 31, 2020.

Third Quarter Fiscal 2020 Summary*:

  • Revenue of $56.1 million was up slightly from the prior year period;

  • Revenue in the Americas declined 0.5% and revenue in Asia/Pacific & Europe increased 1.6%;

  • Average revenue per account increased 8.6%;

  • Total active accounts decreased 3.8% sequentially to 175,000, while declining year over year by 7.4%. The sequential decline included a 2.9% decline in distributors and a 4.4% decline in customers. On year over year basis, distributors declined 2.9% and customers declined 9.9%;

  • Earnings per diluted share were $0.11, compared to $0.12 in the prior year period;

  • Adjusted earnings per diluted share were $0.13, consistent with the prior year period;

  • Adjusted EBITDA increased 26.4% to $5.1 million;

  • Repurchased $2.0 million of common shares during the third quarter of fiscal 2020; and

  • Strong balance sheet with $13.5 million of cash and no debt.

* All comparisons are on a year over year basis and compare the third quarter of fiscal 2020 to the third quarter of fiscal 2019, unless otherwise noted.

“We continued to generate strong gains in operating income and adjusted EBITDA during the third quarter while holding revenue consistent with the prior year period. While the current global health pandemic has had a modest negative impact on our business activities, our operating model and the recurring revenue base inherent in our subscription model is demonstrating resiliency across our global footprint and our strong balance sheet and robust cash flow position our company very well,” stated LifeVantage President and Chief Executive Officer, Darren Jensen.

“We are proud and appreciative of the significant effort from our employees and global network of distributors, in managing the changing and uncertain environment. We have quickly adapted to global health guidelines, and social distancing directives and have successfully and rapidly moved our global staff to working remotely. We have also successfully secured our global supply chain and continue to work closely with our production and logistics partners to ensure seamless supply for our customers. We are fulfilling all orders and are pleased with our continued operational capabilities. Distributors have successfully migrated their sales activities to social media and video conferencing. While there has been a negative impact on new account growth, beginning initially in greater China and Japan early in the quarter, recent promotions have begun to show promising results. We will continue to adapt our activities as necessary to drive revenue and profit growth. Despite the modest negative impact on new account growth, we remain on track to meet our fiscal 2020 expectations for adjusted EPS and adjusted EBITDA, while we now anticipate falling modestly below our previous revenue guidance range based on the business conditions we see today,” continued Mr. Jensen.

Third Quarter Fiscal 2020 Results

For the third fiscal quarter ended March 31, 2020, the Company reported revenue of $56.1 million, a 0.1% increase over the third quarter of fiscal 2019. Revenue in the Americas for the third quarter declined 0.5% compared to the third quarter of fiscal 2019 and revenue in the Asia/Pacific & Europe region increased 1.6% compared to the third quarter of fiscal 2019. Revenue for the third quarter of fiscal 2020 was negatively impacted 0.1 million, or 0.2%, by foreign currency fluctuations associated with revenue generated in international markets when compared to the third quarter of fiscal 2019.

Gross profit for the third quarter of fiscal 2020 was $47.0 million, or 83.8% of revenue, compared to $46.7 million, or 83.4% of revenue, for the same period in fiscal 2019. The increase in gross margin is primarily due to pricing updates implemented in January and February 2020 as well as decreased inventory obsolescence and handling costs and changes to our geographic and product sales mix.

Commissions and incentives expense for the third quarter of fiscal 2020 was $26.7 million, or 47.6% of revenue, compared to $27.2 million, or 48.6% of revenue, for the same period in fiscal 2019. The decrease in commissions and incentives expense as a percentage of revenue is due mainly to the timing and magnitude of investments in our promotional and incentive programs and our red carpet program.

Selling, general and administrative expense (SG&A) for the third quarter of fiscal 2020 was $17.3 million, or 30.8% of revenue, compared to $17.3 million, or 30.9% of revenue, for the same period in fiscal 2019. 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 2020 were $16.9 million, or 30.2% of revenue, compared to adjusted non-GAAP SG&A expenses for the third quarter of fiscal 2019 of $17.1 million, or 30.5% of revenue. The year over year decrease in non-GAAP SG&A primarily was due to decreases in employee compensation related expenses, partially offset by increased depreciation expenses associated with our investment in new technology assets that have been placed in service and increased expenses associated with third-party software and other professional service providers.

Operating income for the third quarter of fiscal 2020 was $3.0 million, or 5.4% of revenue, compared to $2.2 million, or 4.0% of revenue, for the third quarter of fiscal 2019. Accounting for non-GAAP adjustments noted previously, adjusted non-GAAP operating income for the third quarter of fiscal 2020 was $3.4 million, or 6.0% of revenue, compared to $2.5 million, or 4.4% of revenue, for the third quarter of fiscal 2019.

Net income for the third quarter of fiscal 2020 was $1.7 million, or $0.11 per diluted share. This compares to net income for the third quarter of fiscal 2019 of $1.8 million, or $0.12 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 declined 4.9% year over year, to $1.9 million, or $0.13 per diluted share. This compares to adjusted non-GAAP net income for the third quarter of fiscal 2019 of $2.0 million, or $0.13 per diluted share.

Adjusted EBITDA increased 26.4% to $5.1 million for the third quarter of fiscal 2020, compared to $4.0 million for the comparable period in fiscal 2019.

Fiscal 2020 First Nine Month Results

For the first nine months of fiscal 2020, the Company reported revenue of $173.5 million, an increase of 2.2% as compared to $169.8 million for the first nine months of fiscal 2019. Revenue in the Americas for the first nine months of fiscal 2020 increased 0.6% compared to the first nine months of fiscal 2019 and revenue in the Asia/Pacific & Europe region increased 6.5% compared to the first nine months of fiscal 2019. Revenue for the first nine months of fiscal 2020 was positively impacted $0.5 million, or 0.3%, by foreign currency fluctuations associated with revenue generated in international markets when compared to the first nine months of fiscal 2019.

Gross profit for the first nine months of fiscal 2020 was $145.0 million, or 83.6% of revenue, compared to $141.5 million, or 83.4% of revenue, for the same period in fiscal 2019. The increase in gross margin is primarily due to pricing updates implemented in January 2020 as well as decreased inventory obsolescence and handling costs and changes to our geographic and product sales mix.

Commissions and incentives expense for the first nine months of fiscal 2020 was $82.7 million, or 47.6% of revenue, compared to $83.2 million, or 49.0% of revenue, for the same period in fiscal 2019. The decrease in commissions and incentives expense as a percentage of revenue is due mainly to the timing and magnitude of investments in our promotional and incentive programs and our red carpet program.

Selling, general and administrative expense (SG&A) for the first nine months of fiscal 2020 was $53.1 million, or 30.6% of revenue, compared to $54.2 million, or 31.9% of revenue, for the same period in fiscal 2019. 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 first nine months of fiscal 2020 were $52.3 million, or 30.1% of revenue, compared to adjusted non-GAAP SG&A expenses for the first nine months of fiscal 2019 of $53.3 million, or 31.4% of revenue. The year over year decrease in non-GAAP SG&A primarily was due to decreased event expenses resulting from a change in our event structure and timing cadence and decreases in employee compensation related expenses. These decreases were partially offset by increased depreciation expenses associated with our investment in new technology assets that have been placed in service, increased payment processing fees associated with our increased revenue and increased expenses associated with third-party software and other professional service providers.

Operating income for the first nine months of fiscal 2020 was $9.3 million, or 5.3% of revenue, compared to $4.1 million, or 2.4% of revenue, for the same period in fiscal 2019. Accounting for non-GAAP adjustments noted previously, adjusted non-GAAP operating income for the first nine months of fiscal 2020 was $10.0 million, or 5.8% of revenue, compared to $5.1 million, or 3.0% of revenue, for the same period in fiscal 2019.

Net income for the first nine months of fiscal 2020 was $7.7 million, or $0.53 per diluted share. This compares to net income for the first nine months of fiscal 2019 of $3.5 million, or $0.24 per diluted share. Accounting for the non-GAAP adjustments noted previously, net of tax, adjusted non-GAAP net income for the first nine months of fiscal 2020 increased 70.1% year over year, to $8.4 million, or $0.57 per diluted share. This compares to adjusted non-GAAP net income for the first nine months of fiscal 2019 of $4.9 million, or $0.33 per diluted share.

Adjusted EBITDA increased 49.3% to $15.8 million for the first nine months of fiscal 2020, compared to $10.6 million for the comparable period in fiscal 2019.

Balance Sheet & Liquidity

The Company generated $9.0 million of cash from operations during the first nine months of fiscal 2020 compared to generating $10.8 million in the comparable period of fiscal 2019. The Company's cash and cash equivalents at March 31, 2020 were $13.5 million, compared to $18.8 million at June 30, 2019. The Company repaid the remainder of its term loan during the third quarter of fiscal 2020 and has no debt outstanding at March 31, 2020, compared to $1.5 million of debt at June 30, 2019. During the third quarter of fiscal 2020, the Company utilized approximately $2.0 million of cash to repurchase 136,000 common shares under its share repurchase program.

Fiscal Year 2020 Guidance

The Company is reiterating its outlook for fiscal 2020 adjusted net income and adjusted EBITDA, and now anticipate fiscal 2020 revenue to be modestly below it prior revenue guidance range of approximately $235 million to $245 million in fiscal year 2020. The Company expects adjusted EBITDA of between $20 million to $22 million and adjusted earnings per share of $0.74 to $0.79. This guidance reflects the current trends in the business in light of the rapidly evolving COVID-19 environment and does not contemplate further deterioration to the global economic and operating environments as a result of future COVID-19 developments. The Company's adjusted non-GAAP EBITDA and adjusted non-GAAP earnings per diluted share guidance excludes any non-operating or non-recurring expenses that may materialize during fiscal 2020. The Company is not providing GAAP earnings per diluted share guidance for fiscal 2020 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 Tuesday, May 12, 2020, by dialing (844) 512-2921 from the U.S. and entering confirmation code 13702376, or (412) 317-6671 from international locations, and entering confirmation code 13702376.

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. The webcast will be archived for approximately 30 days.

About LifeVantage Corporation

LifeVantage Corporation 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+ and ProBio 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 Salt Lake City, 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:

Scott Van Winkle, ICR
(617) 956-6736
scott.vanwinkle@icrinc.com

 

LIFEVANTAGE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(unaudited)

(In thousands, except per share data)

March 31, 2020

 

June 30, 2019

ASSETS

 

 

 

Current assets

 

 

 

Cash and cash equivalents

$

13,464

 

 

$

18,824

 

Accounts receivable

1,164

 

 

2,066

 

Income tax receivable

2,383

 

 

1,236

 

Inventory, net

14,740

 

 

13,753

 

Prepaid expenses and other

6,084

 

 

7,309

 

Total current assets

37,835

 

 

43,188

 

 

 

 

 

Property and equipment, net

7,384

 

 

7,131

 

Right-of-use assets

1,536

 

 

 

Intangible assets, net

884

 

 

983

 

Deferred income tax asset

941

 

 

2,693

 

Equity securities

2,205

 

 

 

Other long-term assets

1,548

 

 

1,278

 

TOTAL ASSETS

$

52,333

 

 

$

55,273

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

Current liabilities

 

 

 

Accounts payable

$

4,004

 

 

$

5,180

 

Commissions payable

8,223

 

 

7,916

 

Income tax payable

 

 

592

 

Lease liabilities

1,843

 

 

 

Other accrued expenses

9,254

 

 

11,053

 

Current portion of long-term debt, net

 

 

1,454

 

Total current liabilities

23,324

 

 

26,195

 

 

 

 

 

Lease liabilities

23

 

 

 

Other long-term liabilities

388

 

 

1,879

 

Total liabilities

23,735

 

 

28,074

 

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 14,295 and 14,114 issued and outstanding as of March 31, 2020 and June 30, 2019, respectively

1

 

 

1

 

Additional paid-in capital

125,697

 

 

127,096

 

Accumulated deficit

(97,132

)

 

(99,960

)

Accumulated other comprehensive income

32

 

 

62

 

Total stockholders’ equity

28,598

 

 

27,199

 

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$

52,333

 

 

$

55,273

 

 

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)

2020

 

2019

 

2020

 

2019

Revenue, net

$

56,077

 

 

$

56,012

 

 

$

173,547

 

 

$

169,788

 

Cost of sales

9,095

 

 

9,270

 

 

28,515

 

 

28,263

 

Gross profit

46,982

 

 

46,742

 

 

145,032

 

 

141,525

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

Commissions and incentives

26,668

 

 

27,205

 

 

82,677

 

 

83,166

 

Selling, general and administrative

17,281

 

 

17,296

 

 

53,098

 

 

54,213

 

Total operating expenses

43,949

 

 

44,501

 

 

135,775

 

 

137,379

 

Operating income

3,033

 

 

2,241

 

 

9,257

 

 

4,146

 

 

 

 

 

 

 

 

 

Other expense:

 

 

 

 

 

 

 

Interest expense, net

(30

)

 

(72

)

 

(119

)

 

(282

)

Other expense, net

(337

)

 

(11

)

 

(565

)

 

(132

)

Total other expense

(367

)

 

(83

)

 

(684

)

 

(414

)

Income before income taxes

2,666

 

 

2,158

 

 

8,573

 

 

3,732

 

Income tax expense

(1,005

)

 

(376

)

 

(848

)

 

(210

)

Net income

$

1,661

 

 

$

1,782

 

 

$

7,725

 

 

$

3,522

 

Net income per share:

 

 

 

 

 

 

 

Basic

$

0.12

 

 

$

0.13

 

 

$

0.55

 

 

$

0.25

 

Diluted

$

0.11

 

 

$

0.12

 

 

$

0.53

 

 

$

0.24

 

Weighted-average shares outstanding:

 

 

 

 

 

 

 

Basic

14,252

 

 

14,165

 

 

14,054

 

 

14,027

 

Diluted

14,689

 

 

15,286

 

 

14,592

 

 

14,978

 

 

LIFEVANTAGE CORPORATION AND SUBSIDIARIES

 

 

Revenue by Region

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

Nine Months Ended March 31,

(In thousands)

2020

 

2019

 

2020

 

2019

Americas

$

40,181

 

 

72

%

 

$

40,366

 

 

72

%

 

$

124,646

 

 

72

%

 

$

123,885

 

 

73

%

Asia/Pacific & Europe

15,896

 

 

28

%

 

15,646

 

 

28

%

 

48,901

 

 

28

%

 

45,903

 

 

27

%

Total

$

56,077

 

 

100

%

 

$

56,012

 

 

100

%

 

$

173,547

 

 

100

%

 

$

169,788

 

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active Accounts

 

 

 

 

 

 

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31,

 

 

 

 

 

 

 

 

 

2020

 

2019

 

Change from Prior Year

 

Percent Change

 

 

 

 

Active Independent Distributors (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

44,000

 

 

67

%

 

45,000

 

 

66

%

 

(1,000

)

 

(2.2)

%

 

 

 

 

Asia/Pacific & Europe

22,000

 

 

33

%

 

23,000

 

 

34

%

 

(1,000

)

 

(4.3)

%

 

 

 

 

Total Active Independent Distributors

66,000

 

 

100

%

 

68,000

 

 

100

%

 

(2,000

)

 

(2.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active Customers (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

85,000

 

 

78

%

 

98,000

 

 

81

%

 

(13,000

)

 

(13.3)

%

 

 

 

 

Asia/Pacific & Europe

24,000

 

 

22

%

 

23,000

 

 

19

%

 

1,000

 

 

4.3

%

 

 

 

 

Total Active Customers

109,000

 

 

100

%

 

121,000

 

 

100

%

 

(12,000

)

 

(9.9)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Active Accounts (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Americas

129,000

 

 

74

%

 

143,000

 

 

76

%

 

(14,000

)

 

(9.8)

%

 

 

 

 

Asia/Pacific & Europe

46,000

 

 

26

%

 

46,000

 

 

24

%

 

 

 

%

 

 

 

 

Total Active Accounts

175,000

 

 

100

%

 

189,000

 

 

100

%

 

(14,000

)

 

(7.4)

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(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)

2020

 

2019

 

2020

 

2019

GAAP Net income

$

1,661

 

 

$

1,782

 

 

$

7,725

 

 

$

3,522

 

Interest Expense

30

 

 

72

 

 

119

 

 

282

 

Provision for income taxes

1,005

 

 

376

 

 

848

 

 

210

 

Depreciation and amortization(1)

708

 

 

478

 

 

1,953

 

 

1,356

 

Non-GAAP EBITDA:

3,404

 

 

2,708

 

 

10,645

 

 

5,370

 

Adjustments:

 

 

 

 

 

 

 

Stock compensation expense

1,163

 

 

1,083

 

 

4,081

 

 

4,136

 

Other expense, net

337

 

 

11

 

 

565

 

 

132

 

Other adjustments(2)

186

 

 

226

 

 

472

 

 

920

 

Total adjustments

1,686

 

 

1,320

 

 

5,118

 

 

5,188

 

Non-GAAP Adjusted EBITDA

$

5,090

 

 

$

4,028

 

 

$

15,763

 

 

$

10,558

 

 

 

 

 

 

 

 

 

(1) Includes $152,000 and $304,000 of accelerated depreciation related to a change in lease term for the three and nine months ended March 31, 2020, respectively.

 

 

 

 

 

 

 

 

(2) Other adjustments breakout:

 

 

 

 

 

 

 

Class-action lawsuit expenses

$

182

 

 

$

159

 

 

$

369

 

 

$

527

 

Executive team severance expenses, net

 

 

 

 

 

 

(79

)

Other nonrecurring legal and accounting expenses

4

 

 

67

 

 

103

 

 

472

 

Total adjustments

$

186

 

 

$

226

 

 

$

472

 

 

$

920

 

 

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)

2020

 

2019

 

2020

 

2019

GAAP Net income

$

1,661

 

 

$

1,782

 

 

$

7,725

 

 

$

3,522

 

Adjustments:

 

 

 

 

 

 

 

Executive team severance expenses, net

 

 

 

 

 

 

(79

)

Class-action lawsuit expenses

182

 

 

159

 

 

369

 

 

527

 

Other nonrecurring legal and accounting expenses

4

 

 

67

 

 

103

 

 

472

 

Accelerated depreciation related to change in lease term

152

 

 

 

 

304

 

 

 

Tax impact of adjustments

(127

)

 

(39

)

 

(141

)

 

473

 

Total adjustments, net of tax

211

 

 

187

 

 

635

 

 

1,393

 

Non-GAAP Net Income:

$

1,872

 

 

$

1,969

 

 

$

8,360

 

 

$

4,915

 

 

 

 

 

 

 

 

 

 

Three Months Ended March 31,

 

Nine Months Ended March 31,

 

2020

 

2019

 

2020

 

2019

Diluted earnings per share, as reported

$

0.11

 

 

$

0.12

 

 

$

0.53

 

 

$

0.24

 

Total adjustments, net of tax

0.01

 

 

0.01

 

 

0.04

 

 

0.09

 

Non-GAAP adjusted diluted earnings per share(1)

$

0.13

 

 

$

0.13

 

 

$

0.57

 

 

$

0.33

 

 

 

 

 

 

 

 

 

(1) May not add due to rounding.

 

 

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