LifeVantage Corporation (LFVN) has reported a 10.69 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $1.18 million, or $0.08 a share in the quarter, compared with $1.07 million, or $0.08 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1.89 million, or $0.13 a share compared with $1.74 million or $0.13 a share, a year ago.
Revenue during the quarter grew 21.04 percent to $54.89 million from $45.35 million in the previous year period. Gross margin for the quarter contracted 71 basis points over the previous year period to 83.91 percent. Total expenses were 96.38 percent of quarterly revenues, up from 94.11 percent for the same period last year. That has resulted in a contraction of 227 basis points in operating margin to 3.62 percent.
Operating income for the quarter was $1.99 million, compared with $2.67 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $4.35 million compared with $4.47 million in the prior year period. At the same time, adjusted EBITDA margin contracted 194 basis points in the quarter to 7.92 percent from 9.86 percent in the last year period.
"Today we filed our Form 10-K for fiscal 2016 and our Form 10-Q for the first fiscal quarter of 2017 and are again current with our SEC filings, which puts us back into compliance with our loan covenants and is expected to put us back into compliance with Nasdaq listing rules," stated LifeVantage president and chief executive officer Darren Jensen. "This unanticipated delay in our financial reporting was necessary as we look to ensure that we have the appropriate internal policies and procedures in place to support our international growth."
For the second-quarter 2017, LifeVantage Corporation projects revenue to be in the range of $48 million to $49 million.
Working capital increases sharply
LifeVantage Corporation has recorded an increase in the working capital over the last year. It stood at $12.86 million as at Sep. 30, 2016, up 342.67 percent or $9.96 million from $2.91 million on Sep. 30, 2015. Current ratio was at 1.48 as on Sep. 30, 2016, up from 1.10 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 75 days for the quarter from 96 days for the last year period. Days sales outstanding went down to 4 days for the quarter compared with 8 days for the same period last year.
Days inventory outstanding has decreased to 125 days for the quarter compared with 134 days for the previous year period. At the same time, days payable outstanding went up to 54 days for the quarter from 45 for the same period last year.
Debt comes down significantly
LifeVantage Corporation has recorded a decline in total debt over the last one year. It stood at $8.92 million as on Sep. 30, 2016, down 46.74 percent or $7.83 million from $16.74 million on Sep. 30, 2015. Total debt was 17.91 percent of total assets as on Sep. 30, 2016, compared with 42.28 percent on Sep. 30, 2015. Debt to equity ratio was at 0.63 as on Sep. 30, 2016, down from 3.66 as on Sep. 30, 2015. Interest coverage ratio improved to 14.50 for the quarter from 3.57 for the same period last year.
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