Lifevantage Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended March 31, 2013. For the fiscal quarter ended March 31, 2013, the company reported net revenue of $50.4 million, compared to $36.2 million for the same period in fiscal 2012, an increase of 39.1%. Operating income was $3.9 million, compared to $6.4 million in the same period last year. Net income before income taxes was $4.06 million against net loss before income taxes of $4.26 million a year ago. Net income was $3.4 million, or $0.03 per basic and diluted share against net loss of $4.8 million, or $0.05 per basic and diluted share a year ago, which included a $10.7 million non-cash expense associated with a change in fair value of derivative warrant liabilities. Non-GAAP adjusted operating income was $3.64 compared to $6.41 a year ago. Non-GAAP adjusted net income of $3.22 million or $0.03 per diluted share compared to non-GAAP adjusted net loss of $4.85 million or $0.05 per diluted share a year ago. The year-over-year sales increase was driven by increases in the number of both active independent distributors and active preferred customers. For the nine months ended March 31, 2013, the company reported net revenue of $156.7 million, compared to $81.6 million for the same period in fiscal year 2012, a 92.0% increase. Operating income for the first nine months of fiscal year 2013 was $11.8 million, which includes the impact of $5.6 million of net product recall related costs in the second and third quarters, compared to $14.1 million in the same period last year. Net income for the nine months ended March 31, 2013 was $7.8 million, or $0.06 per diluted share, which includes the impact of net recall related costs, compared to $7.6 million, or $0.07 per diluted share in the nine months ended March 31, 2012. Net income in the first nine months of fiscal year 2012 included an expense of $6.7 million associated with a change in fair value of derivative warrant liabilities. Net income before income taxes was $11.4 million compared to $7.4 million a year ago. Non-GAAP adjusted operating income was $17.5 compared to $14.12 a year ago. Non-GAAP adjusted net income of $11.44 million or $0.09 per diluted share compared to $7.64 million or $0.07 per diluted share a year ago. The company generated $10.1 million of cash flow from operations in the nine months ended March 31, 2013. Generated $3.7 million of cash from operations and the company increased cash balance to $27.2 million, up from $24.6 million as of June 30, 2012. The company revised earnings guidance for the fiscal year 2013. Due to events that affected revenue late in the second fiscal quarter and continuing into the third quarter, the company is revising its GAAP guidance. The company now expects to generate year over year revenue growth for fiscal year 2013 in the range of 64% to 68% or $207 to $212 million compared to the previously announced range of $250 to $260 million. The company expects a gross margin of approximately 82% for the full year and expects to generate operating income in the range of $12.5 to $14 million, which includes $5.6 million of recall related net costs. Operating margins are expected to be in the range of 6% to 7% compared to the previous guidance in the range of 11% to 12%. The company expects to generate earnings per diluted share in the range of $0.06 to $0.07, compared to the previous guidance of $0.13 to $0.15, based on an effective tax rate of 34% and estimated weighted average diluted shares outstanding of 126 million.

Lifevantage Corporation, Q3 2013 Earnings Call, May 09, 2013

Lifevantage Corporation announced that they will report Q3, 2013 results at 5:00 PM, Eastern Standard Time on May 09, 2013