Lifevantage Corporation (LFVN) has reported 82.31 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $0.28 million, or $0.02 a share in the quarter, compared with $1.60 million, or $0.11 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $1.59 million, or $0.11 a share compared with $1.95 million or $0.14 a share, a year ago.
Revenue during the quarter dropped 5.86 percent to $48.95 million from $52 million in the previous year period. Gross margin for the quarter contracted 24 basis points over the previous year period to 84.68 percent. Total expenses were 98.57 percent of quarterly revenues, up from 94.17 percent for the same period last year. That has resulted in a contraction of 440 basis points in operating margin to 1.43 percent.
Operating income for the quarter was $0.70 million, compared with $3.03 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.86 million compared with $4.47 million in the prior year period. At the same time, adjusted EBITDA margin contracted 72 basis points in the quarter to 7.88 percent from 8.60 percent in the last year period.
"The second quarter results were consistent with our expectations,” stated LifeVantage president and chief executive officer Darren Jensen. "Our recent implementation of new international policies and procedures disrupted second quarter sales as anticipated. As the implementation nears completion, we are focused on rebuilding our sales momentum while continuing to focus on additional international opportunities. We recently hired a new Hong Kong based executive responsible for both Hong Kong and Asia Market Development, focusing on expanding our business into additional Chinese markets, including Taiwan and Mainland China."
For fiscal year 2017, Lifevantage Corporation forecasts revenue to be in the range of $207 million to $212 million. The company expects diluted earnings per share to be in the range of $0.26 to $0.33, the company expects diluted earnings per share to be in the range of $0.40 to $0.47 on adjusted basis.
Working capital increases sharplyLifevantage Corporation has recorded an increase in the working capital over the last year. It stood at $13.18 million as at Dec. 31, 2016, up 694.58 percent or $11.52 million from $1.66 million on Dec. 31, 2015. Current ratio was at 1.56 as on Dec. 31, 2016, up from 1.05 on Dec. 31, 2015. Cash conversion cycle (CCC) has increased to 90 days for the quarter from 70 days for the last year period. Days sales outstanding went down to 5 days for the quarter compared with 7 days for the same period last year.
Days inventory outstanding has increased to 131 days for the quarter compared with 112 days for the previous year period. At the same time, days payable outstanding went down to 46 days for the quarter from 49 for the same period last year.
Debt comes down significantlyLifevantage Corporation has recorded a decline in total debt over the last one year. It stood at $8.42 million as on Dec. 31, 2016, down 36.51 percent or $4.84 million from $13.27 million on Dec. 31, 2015. Total debt was 18.11 percent of total assets as on Dec. 31, 2016, compared with 29.53 percent on Dec. 31, 2015. Debt to equity ratio was at 0.58 as on Dec. 31, 2016, down from 1.89 as on Dec. 31, 2015. Interest coverage ratio improved to 5.07 for the quarter from 4.90 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
