Lifevantage (LFVN) Tops Q2 EPS by 3c, Revenues Miss; Offers FY21 Revenue Guidance Above Consensus, FY21 EPS Mid-Point View Below Consensus

Lifevantage (NASDAQ: LFVN) reported Q2 EPS of $0.25, $0.03 better than the analyst estimate of $0.22. Revenue for the quarter came in at $59 million versus the consensus estimate of $64.07 million.

Second Quarter Fiscal 2021 Summary:

• Revenue of $59.0 million, an increase of 7.6% sequentially and a decline of 3.6% from the prior year period;
• Total active accounts increased 1.2% sequentially to 174,000, while declining 4.4% compared to the prior year period. The sequential growth included a 1.5% decline in distributors and a 2.9% increase in customers. Compared to the prior year period, distributors declined 1.5% and customers declined 6.1%;
• Earnings per diluted share were $0.26, up 52.9% sequentially, and down 13.3% over the prior year period;
• Adjusted earnings per diluted share were $0.25, consistent sequentially, and declined 19.4% compared to $0.31 in the prior year period;
• Adjusted EBITDA was consistent sequentially and increased 12.6% to $6.7 million compared to the prior year period;
• Repurchased 365,000, or $4.0 million, of common shares;
• Strong balance sheet with $19.7 million of cash and no debt; and
• Steven R. Fife appointed President & CEO; he has also joined the Board of Directors.

“We are proud to report continued earnings momentum with 31.6% adjusted operating income and 12.6% adjusted EBITDA growth while we saw modest declines in revenue of 3.6% compared to the prior year period, the highest quarterly revenue in the company’s history and 7.6% sequential revenue growth over the first quarter of fiscal 2021. We saw positive momentum from our virtual convention held in October which reached an estimated 20,000 participants in 18 countries. At the convention we launched limited time expanded Axio flavor offerings, featuring 6 new flavors and a new digital tool called ITT, aimed at standardizing the education and training of new customers and distributors. We saw strong adoption of the ITT system and a successful response to promotions launched in the quarter driving enrollments,” stated LifeVantage Chief Executive Officer and Chief Financial Officer, Steve Fife.

“As we look to the second half of fiscal 2021 we are excited for the initiatives we have in place, including the timely addition of new products to our portfolio in Q3 and Q4, innovative digital tools to aid our Distributors in customer retention, and the expansion of our virtual training platforms to develop the leadership of our Distributor base. We remain on track to meet our 2021 expectations and are confident in our business model as we continue to execute alongside the current pandemic. We are proud of the LifeVantage team and are focused on driving growth while delivering shareholder value.”

GUIDANCE:

Lifevantage sees FY2021 EPS of $0.87-$0.91, versus the consensus of $0.90. Lifevantage sees FY2021 revenue of $240-251 million, versus the consensus of $230.02 million.

The Company is reiterating its outlook for fiscal 2021 adjusted net income and adjusted EBITDA, and now anticipates fiscal 2021 revenue to be at the low end of our prior revenue guidance range of approximately $240 million to $251 million for fiscal year 2021, reflecting the timing of our product and geographic launches. The Company expects to generate adjusted EBITDA of $25 million to $27 million, with adjusted earnings per share in the range of $0.87 to $0.91, which assumes a full year tax rate of approximately 30%. The Company's guidance for adjusted non-GAAP EBITDA and adjusted non-GAAP earnings per diluted share excludes any non-operating or non-recurring expenses that may materialize during fiscal 2021. This guidance reflects the current trends in the business and the Company’s current view as to the impact of the COVID-19 pandemic on its business. However, the impact of the COVID-19 pandemic continues to evolve and actual results could be adversely affected by further deterioration to the global economic and operating environments as a result of future COVID-19 developments. The Company is not providing guidance for GAAP earnings per diluted share for fiscal 2021 due to the potential occurrence of one or more non-operating, one-time expenses, which the Company does not believe it can reliably predict.

For earnings history and earnings-related data on Lifevantage (LFVN) click here.

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