LifeVantage Reports Full-Year Earnings Dip

LifeVantage Corp. (LFVN—NASDAQ) closed out its fiscal year with revenue down 10 percent to $190.3 million, the health and wellness company said Tuesday.

In the fourth quarter, ended June 30, revenue dropped 20 percent from a year ago to $45.3 million, beating analysts’ estimates of $45.1 million. Adjusted earnings were $3.1 million, down 50 percent year-over-year, but comparable to the company’s third quarter results.

“Our fourth quarter results reflected stability in our revenue and operating results,” President and CEO Darren Jensen, who joined LifeVantage in April, said in a statement. “We strategically implemented $4 million of annualized cost savings in the fourth quarter of fiscal 2015 to better align our cost structure with current sales trends, and position us for stronger EBITDA and net income in fiscal 2016.”

For the full year, LifeVantage generated adjusted earnings of $17.4 million, down 30 percent from 2014. On the back of a 28.2 percent revenue decrease in the Asia/Pacific region, net income fell 40 percent to $7.0 million.

The company also reported that its board of directors has unanimously put forth a reverse stock split proposal. If approved by shareholders, the reverse split would aim at driving up the stock’s minimum price and securing LifeVantage’s Nasdaq listing. The company’s 98 million outstanding shares are currently trading below the $1 minimum required by Nasdaq.

source: http://directsellingnews.com/index.php/view/lifevantage_reports_full_year_earnings_dip_proposes_reverse_stock_split

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