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Financial News, April 2012 – Source Direct Selling News
AL International Inc. (JCOF—PK), a global direct marketer of lifestyle and nutritional products as well as gourmet coffee, released financial results for the year and fourth quarter ended Dec. 31, 2011. The company reported net sales of $40.2 million for the year. Gross profit for 2011 was $30.0 million. Year-end net income came in at $1.7 million, while EBITDA was $2.4 million.
The company also reported a tenfold increase in revenues for the quarter, recording net sales of $11.4 million compared to $1.1 million for the same quarter in 2010.
Gross profits grew to $9.2 million in Q4 2011, compared to $166,000 for the same period in 2010, a 485 percent increase. Fourth quarter 2011 net income came in at $1.8 million versus a loss of $471,000 in 2010. Fourth quarter EBITDA came in at $2.0 million, besting EBITDA for the previous quarter (third quarter 2011, which posted EBITDA of $333,000) by 600 percent.
Primerica Inc. (PRI—NYSE) announced financial results for the year ended Dec. 31, 2011.
For the full year 2011, total revenue was $1.1 billion, compared to $1.4 billion for 2010. Net income was $178.3 million for 2011, compared with $257.8 million for 2010. Net income for the first quarter of 2010 did not reflect the impact of the Citi reinsurance and reorganization transactions. Adjusted to reflect the impact of these transactions as well as other operating adjustments described below, net operating income was up 10 percent to $177.1 million for 2011, compared with $161.5 million for 2010 reflecting growth in the Term Life business and strong Investment and Savings Products results partially offset by a higher expense base.
Primerica continues to be well capitalized, holding a high-quality invested asset portfolio with minimal exposure to equities and European sovereign risk. Investments and cash totaled $2.16 billion as of Dec. 31, 2011.
The Board of Directors also approved payment of a quarterly dividend of 3 percent for the fourth quarter of 2011. The dividend will be payable on March 9, 2012, to stockholders of record as of Feb. 24, 2012.
Primerica Inc., headquartered in Duluth, Ga., is a leading distributor of financial products to middle-income families in North America.
Herbalife Ltd. (HLF—NYSE) reported that for the 12 months ended Dec. 31, 2011, the company recorded net sales of $3.5 billion, a 26 percent increase on 21 percent volume growth compared to 2010. For the same period, the company reported adjusted net income of $413.3 million, or $3.31 per diluted share, reflecting an increase of 35 percent and 37 percent respectively compared to the adjusted 2010 results of $305.6 million and $2.42 per diluted share. On a reported basis, EPS of $3.30 increased 39 percent compared to 2010.
For the year ended Dec. 31, 2011, the company generated cash flow from operations of $509.3 million, an increase of 31 percent compared to 2010, paid dividends of $85.5 million, invested $90.9 million in capital expenditures and repurchased $298.8 million in common shares outstanding related to its share repurchase program.
The company reported that its board of directors has approved a dividend of 30 cents per share to shareholders of record effective March 7, 2012, payable on March 22, 2012.
Herbalife Ltd. is a global network marketing company that sells weight-management, nutrition and personal care products intended to support a healthy lifestyle. Herbalife products are sold in 81 countries through a network of approximately 2.7 million independent distributors.
Immunotec Inc. (IMM.V—TSX VENTURE) announced financial results for its year ended Oct. 31, 2011.
During fiscal 2011, Immunotec recorded sales from Mexico of CAN$8.9 million compared to CAN$1.6 million in 2010 representing an increase of CAN$7.3 million in 12 months.
Network sales reached CAN$37.4 million in 2011 compared to CAN$34.5 million for the same period in 2010, an increase of 8.5 percent or CAN$2.9 million. Other revenues, which include revenues of products sold to licensees, freight and shipping, charge backs and educational material purchased by its network, reached CAN$5.5 million in 2011, compared to CAN$5.9 million for the same period in 2010.
Margins before expenses, as a percentage of net sales, decreased in 2011 to 29 percent compared to 31 percent for year 2010 and was primarily attributed to increases in sales incentives paid, which average a payout rate of 51.0 percent, compared to the 47.7 percent level in 2010. The increase in sales incentives is predominantly caused by strong recruitment in the Mexican territory.
For the year ended Oct. 31, 2011, adjusted EBITDA was almost the same as the year before reaching CAN$724,000 compared to CAN$774,000 for fiscal 2010.
Net loss and comprehensive loss totaled CAN$1.1 million for the year ending Oct. 31, 2011, compared to a loss of CAN$1.4 million for 2010. The total basic and fully diluted loss per share for fiscal 2011 was CAN$0.016 compared with a fully diluted loss of CAN$0.020 for the same period in fiscal 2010.
Immunotec also announced that the company will seek shareholder approval of a special resolution authorizing an amendment to the company’s articles of amalgamation on such basis as the directors of the company may determine, so as to consolidate its common shares on the basis of one post-consolidation common share for a maximum 15 pre-consolidation common shares. In addition to approval from Immunotec’s shareholders by special resolution at the meeting, the share consolidation would also be subject to the approval of the TSX Venture Exchange.
The principal reasons for considering the share consolidation include the company’s belief that, if approved and effected, the company could benefit from a raise of its share price to more attractive levels, the improvement of trading liquidity and better chances of raising further capital in the future. The change in the number of issued and outstanding common shares that would result from the share consolidation would cause no change in the capital attributable to the common shares and would not materially affect any shareholder’s percentage of ownership in the company, even though such ownership would be represented by a smaller number of common shares.
Immunotec is a business opportunity supported by unique scientifically proven products that improve wellness. Headquartered with manufacturing facilities near Montreal, Canada, the company also has distribution capacities to support its commercial activities in Canada and internationally to the United States, Europe, Mexico and The Caribbean.
Nature’s Sunshine Products Inc. (NATR—NASDAQ), including its subsidiary Synergy Worldwide, Inc., a natural health and wellness company, reported consolidated financial results for the full year ended Dec. 31, 2011.
Net sales were $367.8 million, compared with $349.9 million in 2010, an increase of 5.1 percent.
Operating income from continuing operations was $20.2 million, compared with $11.3 million in 2010, an increase of 79.0 percent. Excluding contract termination costs of $14.7 million related to its third quarter arbitration settlement with NutriPlus LLC, operating income from continuing operations was $34.9 million in 2011, compared with $11.3 million in 2010, an increase of 210.0 percent.
Adjusted EBITDA, defined here as net income before taxes, depreciation and amortization, other income adjusted to exclude share-based compensation expense and contract termination costs, was $42.8 million, compared with $16.0 million in 2010, an increase of 168.0 percent.
Net income from continuing operations was $17.6 million, compared with $8.5 million in 2010, an increase of 107.8 percent. Excluding the contract termination costs described above, net income from continuing operations was $27.6 million, compared with $8.5 million in 2010, an increase of 225.9 percent.
Basic and diluted net income per share from continuing operations was $1.13 and $1.12, respectively, compared with earnings per share of 55 cents and 54 cents, respectively, in 2010.
Nature’s Sunshine Products, a natural health and wellness company, markets and distributes nutritional and personal care products through a global direct salesforce of over 600,000 independent distributors in more than 40 countries.
USANA Health Sciences Inc. (USNA—NYSE) announced financial results for its fiscal full year ended Dec. 31, 2011.
For the year ended Dec. 31, 2011, net sales increased by 12.4 percent to $581.9 million, compared with $517.6 million in the prior year. This growth was driven by higher product sales and an increase in the average number of active associates in the Asia Pacific region. Favorable changes in currency exchange rates accounted for $15.0 million of the overall increase.
Net earnings for the year ended Dec. 31, 2011 increased by 11.2 percent to $50.8 million, or $3.26 per share, compared with $2.86 per share in the prior year. This growth in net earnings was driven by higher sales and improved gross profit margins, partially offset by higher Associate incentive expenses, higher selling, general and administrative expenses, due primarily to the inclusion of a full year of its China operations and a higher effective tax rate.
The company continued its successful track record of generating cash from operations during 2011. Cash generated from operations totaled $70.1 million for the year ended Dec. 31, 2011. The company repurchased 1.1 million shares in 2011 for a total investment of $33.5 million. The company ended the year debt free, with approximately $50.0 million in cash and cash equivalents, and a remaining repurchase authorization of approximately $28 million.
USANA develops and manufactures high-quality nutritional, personal care and weight-management products that are sold directly to Associates and Preferred Customers in 18 markets worldwide, including China, where its wholly owned subsidiary, BabyCare Ltd., operates a direct selling business.
LifeVantage Corp. (LFVN—OTCBB), maker of Protandim®, the Nrf2 Synergizer™ patented dietary supplement, reported financial results for the six months ended Dec. 31, 2011.
For this fiscal 2012 first six months, the company reported record net revenue of $45.4 million, compared to $13.9 million for the same period in fiscal 2011, a 226 percent increase. Operating income increased to $7.7 million, compared to $1.0 million in the same period last year.
The company improved its balance sheet in the second fiscal quarter. The company’s cash balance at Dec. 31, 2011 was $13.5 million, an increase from $6.4 million at year end fiscal 2011, due to strong revenue growth and operating profits.
On Dec. 29, 2011, the company received approval from warrant holders for and completed a tender offer to modify certain outstanding warrants such that the company will no longer account for these warrants as a derivative liability, which the company believes will enable its financials to more closely reflect operating performance.
LifeVantage is a science-based nutraceutical company. The company was founded in 2003 with corporate headquarters in Salt Lake City and operations in San Diego.
Just Energy Group Inc. (JE—NYSE; JE—TSX) senior executives were in New York recently to open trading on the New York Stock Exchange (NYSE) and mark an important milestone in the company’s history as it officially listed and commenced trading on the NYSE on Jan.30, 2012.
Just Energy, which commenced business in 1997, is a retailer of natural gas, electricity and green energy to end customers in North America. The company has experienced a substantial growth rate across the United States where now more than 50 percent of the company’s sales take place. Over the past five years, the compound growth in customers, sales and margin has been over 70 percent.
Just Energy Group Inc. also filed notice with the Toronto Stock Exchange and the New York Stock Exchange announcing its January dividend. A dividend of CAN$0.10333/common share (CAN$1.24 annually) will be paid on Feb. 29, 2012 to shareholders of record at the close of business on Feb. 15, 2012. This dividend is designated as an “eligible dividend” for Canadian income tax purposes.
Just Energy also reports that at Jan. 31, 2012 the conversion price for each CAN$1,000 of its outstanding 6 percent convertible unsecured subordinated debenture issued on Oct. 2, 2007 (JE.DB.A—TSX) has been adjusted in accordance with the Trust Indenture dated Oct. 2, 2007, as supplemented from time to time, to CAN$29.81 convertible into 33.55 common shares of Just Energy Group Inc.
Avon Products Inc. (AVP—NYSE) declared a regular quarterly dividend of 23 cents per common share. The first quarter dividend was payable March 1, 2012, to shareholders of record on Feb. 24, 2012.
On an annualized basis, the indicated dividend rate would be 92 cents per share, flat with the 2011 rate.
Avon, the company for women, is a leading global beauty company, with over $11 billion in annual revenue. As the world’s largest direct seller, Avon markets to women in more than 100 countries through approximately 6.4 million active independent Avon Sales Representatives.
Nu Skin Enterprises Inc. (NUS—NYSE) announced that its board of directors has declared a 25 percent increase in the quarterly cash dividend to 20 cents per share, compared to the previous dividend of 16 cents per share. This dividend will be paid on March 14, 2012 to shareholders of record on Feb. 24, 2012.
Nu Skin Enterprises Inc., a global direct selling company with a comprehensive anti-aging product portfolio, operates in 52 markets worldwide and has more than 850,000 independent distributors.
Direct Selling News has accumulated this information from public sources, including press releases and SEC filings. The information is presumed accurate and reliable. However, it is not an endorsement of any investment opportunity. Proper and considerable due diligence should be completed before making any investment.
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