Youngevity International, Inc., a global direct marketer of nutritional and lifestyle products and also a vertically-integrated producer of fine coffees for the commercial, retail and direct sales channels, today announced financial results for the third quarter of 2013.
Fiscal 2013 Third Quarter Results
For the three months ended September 30, 2013, Youngevity International's revenue increased 3.0% to $21.2 million compared to $20.6 million for the same period in fiscal 2012. The increase in revenue is attributed primarily to revenues of $0.5 million from Heritage Makers, Inc., acquired on August 14, 2013.
Youngevity International's gross profit for the three months ended September 30, 2013 increased approximately 3.2% to $12.9 million compared to $12.5 million recorded in the same period last year. The increase in gross profit as a percentage of revenues in the direct selling segment was primarily due to improved efficiencies in fulfillment costs and the economies of scale as a result of the increase in revenues.
For the three months ended September 30, 2013, net income was $516,000 as compared to $236,000 for the three months ended September 30, 2012. The increase of $280,000 was attributable to the increase in income before income taxes of $366,000, offset by an increase in income tax provision of $86,000.
As of September 30, 2013, the Company's cash and cash equivalents were approximately $4.4 million and working capital was approximately $1.5 million as compared to cash and cash equivalents of $3.0 million and working capital of $1.4 million as of December 31, 2012.
Fiscal 2013 First Nine Months Results
For the nine months ended September 30, 2013, the Company's revenue increased 12.8% to $62.9 million as compared to $55.8 million for the same period in fiscal 2012. The increase in revenue is attributed primarily to the increase in our product offerings and the number of distributors and customers resulting from our acquisitions during 2012, revenues from Heritage Makers, Inc. acquired on August 14, 2013 and the organic growth of the CLR Roasters private label business as well as the continued growth of CLR Roasters company owned Café La Rica brand.
For the nine months ended September 30, 2013, gross profit increased approximately 16.9% to $38.0 million as compared to $32.5 million for the nine months ended September 30, 2012.
For the nine months ended September 30, 2013, net income was $2.2 million as compared to a loss of $651,000 for the nine months ended September 30, 2012. The increase of $2.8 million was attributable to the increase in income before income taxes of $3.2 million offset by an increase in income tax provision of $387,000.
EBITDA (earnings before interest, taxes, depreciation and amortization) as adjusted to remove the effect of stock based compensation expense or "Adjusted EBITDA," was $5.6 million for the nine months ended September 30, 2013 compared to $2.0 million in the same period for the prior year.
Dave Briskie, Chief Financial Officer of Youngevity International, Inc., said, "Our third quarter results reflect sustained year-over-year improvements in profitability, the strength of our balance sheet and our cash flow. With a full pipeline of acquisition targets we are confident that we can continue to accelerate growth moving into 2014."
"Our overall performance was strong with over a $3.5 million improvement in adjusted EBITDA for the nine months ended September 30, 2013," said Steve Wallach, Chief Executive Officer of Youngevity International. "With our model showing sustainable growth in profitability we anticipate moving toward global expansion in 2014."