Youngevity Q2 Revenue Up 9.7% To 42.5 Million

0
Rate this News
top-5-australian-business-directories-free-listing

Youngevity Q2 Revenue Up 9.7% To 42.5 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 second quarter and six months ended June 30, 2016. 

Second Quarter 2016 Highlights:

  • Revenues increased 9.7% over the prior year period to $42.5 million;
  • Gross Profit increased 6.8% to $25.4 million compared to the prior year period;
  • Coffee Segment logs material improvement in all key metrics on record revenue

“Once again, the management team at Youngevity is excited to report record revenue for the second quarter 2016. We continue to see strong sales and customer growth in the United States and our international markets,” stated Steve Wallach, Chief Executive Officer of Youngevity International. 

He continued, “I was proud to see the significant improvements derived from our coffee sector as this business begins to scale.”

“Again, we are very pleased with our ongoing performance as we continue to grow top-line revenue,” said Dave Briskie, President and Chief Financial Officer of Youngevity International.

He continued “Our distributors continue to develop outstanding sales organizations that have a keen focus on customer acquisition, lead by a very diversified quality line of products.

While we intend to continue to expand our distributors, we also intend to remain diligent in identifying additional products, either developed internally or through acquisitions, which quarter after quarter has proven to be an increasing predictable and sustainable business model.” 

Second Quarter 2016 Financial Results:
For the three months ended June 30, 2016, the Company reported revenue of $42.5 million, compared to $38.7 million in 2015, a 9.7% increase whereby 87% of our revenue was derived from our direct selling segment and approximately 13% of our revenue from our commercial coffee segment. The increase in direct selling revenue is attributed primarily to the increase in our product offerings, the increase in the number of distributors selling our product and the increase in the number of customers consuming our products. Approximately 4.4% of the increase was derived from new acquisitions.

Gross profit for the second quarter of 2016, increased approximately 6.8% to $25.4 million as compared to $23.8 million for the three months ended June 30, 2015. Gross profit as a percentage of revenue decreased to 59.8% in the current quarter compared to 61.5% in the same period last year.

Operating expenses for the three months ended June 30, 2016, increased approximately 11.1% to $23.9 million as compared to $21.5 million for the three months ended June 30, 2015. The main contributor to the increase was derived from a significant increase in sales and marketing expense which increased 65.6% to $2.6 million in the current quarter from $1.6 million in the same period last year. This was primarily due to the Company’s annual convention held in the first quarter in 2015 as compared to the current year convention held in the second quarter of the current year.

For the second quarter of 2016, the general and administrative expense increased 6.7% to $4.5 million from $4.2 million for the three months ended June 30, 2015, primarily due to increases in employee compensation and consulting fees.

For the three months ended June 30, 2016 total other expense decreased to $1.6 million as compared to $3.3 million for the three months ended June 30, 2015. The decrease was primarily due to the change in fair value of the warrant derivative liability from $2.2 million in 2015 to $484,000 for the three months ended June 30, 2016.

For the second quarter of 2016, the Company reported a net loss of $109,000 as compared to a net loss of $408,000 for the three months ended June 30, 2015.

EBITDA (earnings before interest, taxes, depreciation and amortization) as adjusted to remove the effect of stock based compensation expense and change in fair value of warrants, or “Adjusted EBITDA,” was $2.6 million for the three months ended June 30, 2016 compared to $3.3 million in the same period for the prior year.

Fiscal 2016 First Six Months Results:

For the six months ended June 30, 2016, our revenue increased 6.8% to $80.7 million as compared to $75.5 million for the six months ended June 30, 2015. During the six months ended June 30, 2016, we derived approximately 89% of our revenue from our direct selling segment and approximately 11% of our revenue from our commercial coffee segment. The increase in direct selling revenue is attributed primarily to the increase in our product offerings, the increase in the number of distributors selling our product and the increase in the number of customers consuming our products as well as $3.7 million derived from new acquisitions.

For the first six months of fiscal 2016, gross profit increased approximately 10.7% to $48.8 million as compared to $44.1 million for the six months ended June 30, 2015.

For the first six months of fiscal 2016, total operating expenses increased approximately 11.3% to $46.1 million as compared to $41.4 million for the six months ended June 30, 2015.

Total other expense decreased to $2,027,000 for the first six months ended June 30, 2016, as compared to $4,480,000 for the six months ended June 30, 2015. This decrease was primarily due to the change in fair value of warrant derivative from an expense of $2,301,000 in the six months ended June 30, 2015 to a gain of $166,000 in the six months ended June 30, 2016.

For the six months ended June 30, 2016, the Company reported net income of $42,000 as compared to a net loss of $777,000 for the six months ended June 30, 2015. The net increase of $819,000 was primarily attributable to the change in fair value of warrant derivative discussed above, offset by an income tax benefit of $1,040,000 for the six months ended June 30, 2015 compared to an income tax expense of $618,000 for the same period in the current year.

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,” was $4.8 million for the six months ended June 30, 2016 compared to $4.5 million 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. For more information, visit www.YGYI.com or find us on Facebook follow us on Twitter @youngevity .

08/12/2016 |

Leave a Reply

Copyright © 2017, MLM Online | No.1 MLM Classified

Skip to toolbar