LifeVantage(US:LFVN)2023-11-09 21:05Financial Performance - For the three months ended September 30, 2023, net revenue was $51,364,000, a decrease of 0.8% compared to $51,774,000 for the same period in 2022[17] - Gross profit for the quarter was $41,184,000, down from $41,832,000 year-over-year, reflecting a gross margin of approximately 80.1%[17] - Operating income decreased to $749,000 from $1,290,000 in the prior year, indicating a decline of 42%[17] - Net income for the quarter was $629,000, slightly up from $610,000 in the same quarter last year, resulting in a net income per share of $0.05[17] - The company reported a comprehensive income of $335,000 for the quarter, compared to $100,000 in the same period last year[17] - Net income for the three months ended September 30, 2023, was $629,000, an increase from $610,000 in the same period of 2022, representing a growth of approximately 3.1%[24] Assets and Liabilities - Total current assets decreased to $41,901,000 as of September 30, 2023, down from $44,284,000 at the end of the previous quarter[15] - Total liabilities increased to $37,310,000 from $31,474,000, primarily due to an increase in accounts payable and current liabilities[15] - Cash and cash equivalents decreased to $18,405,000 from $21,605,000, indicating a cash reduction of approximately 14%[15] - The accumulated deficit increased to $104,005,000 as of September 30, 2023, from $98,305,000 at the end of the previous quarter[15] - Total inventory as of September 30, 2023, was $15,706,000, a decrease from $16,073,000 as of June 30, 2023, indicating a reduction of approximately 2.3%[38] Cash Flow and Dividends - Cash flows from operating activities provided $4,765,000 in Q3 2023, a significant improvement compared to a cash outflow of $1,345,000 in Q3 2022[24] - The company paid $5,534,000 in cash dividends during the three months ended September 30, 2023, compared to $377,000 in the same period of 2022[24] - Cash and cash equivalents at the end of the period were $18,405,000, compared to $17,619,000 at the end of the same period in 2022, showing an increase of approximately 4.5%[24] - The board of directors declared a quarterly cash dividend of $0.035 per share and a one-time cash dividend of $0.40 per share, totaling $5.5 million for the three months ended September 30, 2023[79] - Cash dividends for the same period in 2022 totaled $0.4 million, or $0.03 per share, indicating a significant increase in dividend payouts year-over-year[80] Research and Development - Research and development expenses for the three months ended September 30, 2023, were $200,000, up from $100,000 in the same period of 2022, reflecting a 100% increase[46] Stock and Shareholder Information - The Company issued 0.3 million shares of common stock under equity award plans during the three months ended September 30, 2023, compared to 48,000 shares in the same period of 2022[73] - The Company has a remaining balance of $26.1 million under its share repurchase program as of September 30, 2023, having purchased 0.1 million shares at an aggregate price of $0.8 million during the three months ended September 30, 2023[74] - Stock-based compensation for the three months ended September 30, 2023, was $1.0 million, compared to $0.6 million for the same period in 2022, reflecting a 66.67% increase[88] - Approximately 39,000 shares of common stock were issued under the Employee Stock Purchase Plan (ESPP) during the three months ended September 30, 2023, compared to 36,000 shares in the same period of 2022[87] - The company has reserved 0.4 million shares of its common stock for issuance under the ESPP, with 0.1 million shares available as of September 30, 2023[84] Market and Operational Challenges - The company anticipates ongoing challenges in managing independent consultants and expanding into new international markets, which may impact future performance[10] - The company closed its e-commerce business in China on March 15, 2023, impacting its market presence in that region[28] Other Financial Information - The effective interest rate on the Company's 2016 Credit Facility was 8.55% as of September 30, 2023, with no balance outstanding on the facility at that date[72] - The Company recognized income tax expense of $0.2 million for both the three months ended September 30, 2023, and 2022, reflecting its current estimated effective tax rate[54] - The Company has no remaining lease liability for the abandoned showrooms in Hong Kong and Singapore, which were terminated in February 2023[49] - The weighted average remaining lease term for operating leases was 7.78 years as of September 30, 2023, down from 8.27 years as of June 30, 2023[61] - The Rights Plan is set to expire on August 24, 2024, unless terminated earlier, and aims to protect the interests of the company and its stockholders[77] - As of September 30, 2023, no preferred stock has been issued, and no rights or preferences have been assigned to preferred stock by the board of directors[78] - The company assessed potential contingent liabilities and found no probable loss contingencies requiring accrual or disclosures as of September 30, 2023[89] - There were no substantial changes to market risks during the quarter ended September 30, 2023, compared to the previous disclosures[138]