Youngevity Q1 Revenue Up 3% To $38.2 Million0
Youngevity Q1 Revenue Up 3% To $38.2 Million
Youngevity International, Inc. (OTCQX: YGYI) (www.YGYI.com), a global direct marketer of nutritional and lifestyle products and also a vertically-integrated producer of gourmet coffees for the commercial, retail and direct sales channels, today reported financial results for the first quarter ended March 31, 2016.
2016 First Quarter Highlights:
- Net Revenues increased 3.8% over the prior year to $38.2 million
- Gross Profit increased 15.2% to $23.4 million compared to the prior year
- Operating Income increased 211.0% to $1,163,000 compared to the prior year
- Adjusted EBITDA increased 72.8% to $2,236,000 compared to the prior year
- Gross profit as a percentage of revenues increased to 61.2% compared to 55.1% in the prior year
“The first quarter of 2016 was one of the most active and exciting quarters in the Company’s history,” stated Steve Wallach, Chief Executive Officer of Youngevity International.
He added, “We were excited to announce the appointment of three senior members to the Youngevity management team: Scott Salik as Vice President of Global Content, Scott Bell as Vice President of Analytics and Promotions, and Scott McElroy as Director of Information Technology and Project Management Operations.
These three industry leaders hit the ground running and the Company has benefitted from their strategic planning and tremendous industry experience. In addition to building out our management team, we launched a new and innovative social selling platform and are expanding the Company’s offerings into small business lending and merchant services.”
Dave Briskie, President and Chief Financial Officer of Youngevity, said,
“We are pleased to see strong improvements in profitability and continued growth. Our direct selling division was the main contributor to our continued growth logging a 10% increase in revenues over last year.
Although our gourmet coffee business did not have a strong quarter in terms of growth we believe it is well positioned for a strong second half to 2016. In January, we secured three new top tier distribution partners for Cafe La Rica and Josie’s Java Hose Brands, which extends our distribution coverage into 10 additional states. In February alone, we received orders for a total of 18.5 million pounds of Green Coffee.
And just this month, we had the pleasure of announcing that the Siles Family Plantation Group has been recertified as Fair Trade Organic for 2016 as well as Rainforest and Bird Friendly. We continue to work for a safe and sustainable environment, while supporting the social development of workers and communities in and around our plantations in Nicaragua.”
First Quarter 2016 Financial Results:
- Revenues increased 3.8% to $38,202,000 for the three months ended March 31, 2016, as compared to $36,807,000 for the three months ended March 31, 2015.
- Overall cost of revenues decreased approximately 10.2% to $14,839,000 for the three months ended March 31, 2016, as compared to $16,525,000 for the three months ended March 31, 2015.
- Gross profit increased approximately 15.2% to $23,363,000 for the three months ended March 31, 2016, as compared to $20,282,000 for the three months ended March 31, 2015.
- The Company’s operating expenses increased approximately 11.5% to $22,200,000 for the three months ended March 31, 2016 as compared to $19,908,000 for the three months ended March 31, 2015.
- Operating income increased approximately 211.0% to $1,163,000, for the three months ended March 31, 2016, as compared to $374,000 for the three months ended March 31, 2015. This was primarily due to the increase in revenues and gross margins and the lower sales and marketing costs. Operating income as a percentage of revenues increased to 3.0%, compared to 1.0% for the three months ended March 31, 2015.
- EBITDA (earnings before interest, income taxes, depreciation and amortization) as adjusted to remove the effect of stock based compensation expense and the change in the fair value of the warrant derivative or “Adjusted EBITDA,” increased 72.8% to $2,236,000 for the three months ended March 31, 2016 compared to $1,294,000 in the same period for the prior year.
About Youngevity International
Youngevity International, Inc. (OTCQX: YGYI) (www.YGYI.com) is a fast-growing, innovative, multi-dimensional company that offers a wide range of consumer products and services, primarily through person-to-person selling relationships that comprise a “network of networks.” The Company also is a vertically-integrated producer of the finest coffees for the commercial, retail and direct sales channels.
The Company was formed after the merger of Youngevity Essential Life Sciences (www.youngevity.com) and Javalution Coffee Company in the summer of 2011. The Company was formerly known as AL International, Inc. and changed its name to Youngevity International Inc. in July 2013. For more information, visit www.YGYI.com or find us on Facebook https://www.facebook.com/Youngevity or follow us on Twitter @youngevity https://twitter.com/youngevity.