LifeVantage(US:LFVN)2024-05-02 20:05Financial Performance - Total revenue for the three months ended March 31, 2024, was $48,245,000, a decrease of 9.3% compared to $53,741,000 for the same period in 2023[16] - Gross profit for the three months ended March 31, 2024, was $38,073,000, down from $43,123,000 in the same period last year, reflecting a gross margin decrease[16] - Net income for the three months ended March 31, 2024, was $1,659,000, an increase of 62.4% compared to $1,022,000 for the same period in 2023[16] - Commissions and incentives for the three months ended March 31, 2024, were $19,714,000, down from $23,816,000 in the same period last year, a decrease of 17.6%[16] - Selling, general and administrative expenses for the three months ended March 31, 2024, were $16,425,000, slightly down from $17,708,000 in the same period last year[16] - The company reported a basic net income per share of $0.13 for the three months ended March 31, 2024, compared to $0.08 for the same period in 2023[16] - Net income for the nine months ended March 31, 2024, was $1,632,000, compared to $574,000 for the same period in 2023, representing an increase of 184%[23] - Cash provided by operating activities for the nine months ended March 31, 2024, was $9,615,000, significantly higher than $3,065,000 for the same period in 2023[23] - The Company recognized income tax expense of $7,000 for the nine months ended March 31, 2024, compared to $0.9 million for the same period in 2023[54] - Net foreign currency losses for the three months ended March 31, 2024, were $0.1 million, compared to gains of $36,000 for the same period in 2023[33] Assets and Liabilities - Total current assets decreased to $37,797,000 as of March 31, 2024, from $44,284,000 as of June 30, 2023, representing a decline of 14.6%[15] - Total liabilities increased to $34,538,000 as of March 31, 2024, compared to $31,474,000 as of June 30, 2023, indicating a rise of 9.8%[15] - The total stockholders' equity decreased to $26,769,000 as of March 31, 2024, from $34,649,000 as of June 30, 2023, a decline of 22.8%[15] - Total assets as of March 31, 2024, were $136,198,000, reflecting a growth from $133,424,000 as of March 31, 2023[20] - The Company had $13.1 million in cash accounts at one financial institution as of March 31, 2024, down from $17.0 million as of June 30, 2023[35] Stock and Dividends - The Company repurchased $4,599,000 worth of its stock during the nine months ended March 31, 2024[23] - Cash dividends paid during the nine months ended March 31, 2024, totaled $6,437,000, compared to $1,141,000 for the same period in 2023[23] - In August 2023, 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, with total cash dividends for the three and nine months ended March 31, 2024 amounting to $0.4 million and $6.4 million, respectively[77] - The Company purchased 0.3 million shares of common stock for $1.9 million under the repurchase program during the three months ended March 31, 2024[72] - The Company has $22.3 million remaining under its share repurchase program as of March 31, 2024[72] Inventory and Expenses - As of March 31, 2024, total inventory was $15.162 million, a decrease of 5.7% from $16.073 million as of June 30, 2023[37] - Finished goods accounted for 74.4% of total inventory as of March 31, 2024, compared to 75.6% as of June 30, 2023[37] - Research and development expenses for the nine months ended March 31, 2024, were $0.5 million, an increase from $0.4 million for the same period in 2023[45] - Operating lease expense for the three months ended March 31, 2024, was $0.5 million, down from $0.6 million in 2023[61] - Stock-based compensation for the nine months ended March 31, 2024, was $2,524,000, up from $2,242,000 for the same period in 2023[23] Future Outlook - The company anticipates ongoing challenges in managing existing markets and expanding into new international markets, which may impact future performance[10] - The Company assesses potential contingent liabilities and has determined there are no probable loss contingencies requiring accrual as of March 31, 2024[86] Market Operations - The company operates in multiple international markets, including the United States, Mexico, Japan, and several European countries, and has ceased its e-commerce operations in China as of March 15, 2023[27] Loan Agreements - The Company entered into a new Loan Agreement on April 12, 2024, providing for a revolving line of credit of up to $5.0 million[69] - The Loan Agreement includes covenants that restrict the Company's ability to incur additional indebtedness and requires maintenance of specified financial ratios[92] - As of the date of the report, the Company has not borrowed under the 2024 Credit Facility[94]