It has always been interesting to see how direct selling companies compare on various grounds. Where they spend their money and at the end of the day, how much money they generate for their investors absolutely rank among the most interesting ones.
In this article, we will be briefly reviewing 11 direct sellers with varying sizes of business and with different product portfolios. These are Avon, Herbalife, Mannatech, Natura, Nature’s Sunshine Products, NHT Global, Nu Skin, Oriflame, Tupperware, USANA and Youngevity. This review will be based on their 2016 first quarter figures.
This week I share about a new format I will be using in reporting the news in 2013, and some of fantastic news on the financial health of the direct selling industry and the network marketing community that makes it what it is.
Direct Selling Companies You May Not Have Heard Of!
Awbrey Smith started this company out of her home in 2011. With little to go on besides a crazy idea and “dream” of what she wanted to accomplish for women all over the country, 2CP has grown by leaps and bounds since it’s opening. According to Awbrey, the success of 2CP lies within her amazing team (listed below) and the consultants and customers who make each day an exciting one! Work is no longer what she has to do to help pay the family bills, it is now a growing change that Awbrey is helping make in women’s lives all over.
We have been helping women build businesses for over 20 years.
Cookie Lee jewelry is delivered directly to customers through shows, fundraisers and personal shopping. Our ever-growing base of independent Consultants operates throughout the United States.
A HISTORY OF SWEET SUCCESS!
DOVE CHOCOLATE DISCOVERIES™ launched in February 2007 as one of the latest ventures from Mars, Incorporated. Now, a global leader in chocolate, Mars roots goes back to the kitchen. In the 1880’S, when Frank Mars was a young boy, his mother taught him to hand-dip chocolate. With his wife, Ethel, Frank started a home candy-making business in Tacoma, Washington, that eventually grew into Mars, Inc., a world-wide industry leader in chocolate confections. Going back to its direct-selling heritage, Mars created DOVE CHOCOLATE DISCOVERIES™. Since then, the Chocolatier sales force has taken off. There are now Chocolatiers in 48 states.
With over 100 years of candy-making experience behind us, DOVE CHOCOLATE DISCOVERIES™ is dedicated to creating the ultimate chocolate experience – in the comfort of your own home, providing an opportunity to share some sweet moments with family and friends. Plus, as a Chocolatier, you’re walking in the door with respect and recognition. What could be sweeter than that!
The lia sophia Story
Jewelry has been a passion in the Kiam family for decades. In fact, lia sophiaisn’t the only jewelry company that family patriarch and entrepreneur Victor Kiam and his wife, Ellen, were a part of. They learned a great deal about the business from the Friendship Collection, which they started as a mom-and-pop enterprise in their apartment decades earlier. By the 1970s, it had grown into the United States’ largest importer of jewelry, antiques and artifacts from China. Even early on, their instincts were good. (Read On)
We had a question in early 2010- what would happen if women were able to earn some extra money selling designer jeans at a discount? Well, based on the success we have had so far, the answer is pretty clear. Vault Denim is a direct sales company that is a little different than others. Our consultants don’t have to spend money to purchase their own inventory- we provide it. Customers don’t place orders at home parties and then wait for products to be shipped- they wear their new jeans home. And because we sell the same jeans found in department stores for up to 50% less, people are lining up to host parties and become a part of this fast-growing, exciting company.
Leslie Montie never dreamed she would become the founder of a company that helps families enjoy great tasting, nutritious meals in minutes.
When Leslie discovered that her two young children had medical conditions requiring special dietary restrictions, she began her search for healthy alternatives. “It was amazing how this impacted our entire family.” recalls Leslie. â€œI needed to come up with meals that my children would not react to, yet still enjoy. And since I was a full-time working mom, they had to be easy to make.” (Read On)
At Willow House, our mantra is Simply Good Design — and it permeates everything we do.
Our in-house designers strive to create high-quality products with impeccable design and effortless style, from the sparkling luxury of our designer Jewelry by Sara Blaine to our line of exclusive home décor and American artisan pieces.
More than simply “on trend,” our exclusive home décor and jewelry collections are thoughtfully designed to be timeless. They’re pieces that you’ll enjoy wearing and decorating with season after season.
But Simply Good Design runs deeper than our look — it’s in the very soul of our company. You see, Willow House offers our family of Consultants two strong divisions to grow their own small business — Jewelry by Sara Blaine and Style for Home. We empower our Consultants with the tools needed to succeed in this ever-growing industry.
Willow House is the most compelling home-based business opportunity in America. Through e-commerce, savvy social media marketing and our on-trend blog, Plate & Pattern, we help our Consultants connect with their customers in new, exciting, and profitable ways.
Network Marketing Company News
AdvoCare will continue its partnership and primary sponsorship of Austin Dillon’s No. 3 AdvoCare Chevrolet for the 2013 NASCAR Nationwide Series season. This follows the company’s sponsorship of Dillon and the No. 3 car for 20 races in the 2012 NASCAR Nationwide Series season.
Berkshire Hathaway, parent company of Kirby,The Pampered Chef and World Book, announced its financial results for the third quarter of 2012. The conglomerate reported that its third-quarter profit rose as strength in the railroad and utility businesses, as well as investment gains, offset weaker results in its insurance units. Berkshire said its cash holdings grew to $47.78 billion, up $10 billion from the start of the year. View the full press release online.
Blyth, parent company of PartyLite and ViSalus, reported earnings for the third quarter of 2012. Net sales for the three months ended Sept. 30, 2012, increased 40 percent to $268.8 million versus $191.5 million for the comparable prior-year period, primarily due to the 132 percent year-over-year sales growth at ViSalus. International sales for Blyth represented 25 percent of third-quarter sales this year, compared to 34 percent last year, driven by ViSalus’ strong domestic sales growth. View the full press release online.
Mannatech has reported net income of $2.2 million for the third quarter ending Sept. 30, 2012, compared to a net loss of $3.7 million for the third quarter of 2011. In achieving net income of $2.2 million for the third quarter of 2012, non-cash items impacting profitability included a reduction in a previously recognized deferred tax asset valuation allowance of approximately $1 million, a release of reserves related to transaction taxes of $800,000 due to the expiration of statutes of limitations, and income from foreign currency exchange rate fluctuations of $500,000. Third-quarter operating profitability and net income adjusted for the non-cash items listed above was near even as the company moves closer to its goal of profitability.
Net sales for the third quarter of 2012 were $43 million, a decrease of 14.8 percent, compared to $50.5 million in the third quarter of 2011. Net sales for the U.S. and Canada declined 16.3 percent to $20.5 million, compared to $24.5 million in the third quarter of 2011. International net sales of $22.5 million decreased 13.5 percent, compared to $26 million in the third quarter of 2011. View the full press release online.
Medifast, parent company of Take Shape for Life, announced its financial earnings for the third quarter of 2012. Net revenue increased 20 percent to $91 million from net revenue of $76.1 million in the third quarter of the prior year. Each of the company’s three primary distribution channels, Take Shape for Life, Direct Response Marketing and Medifast Weight Control Centers and Wholesale Physicians, contributed to this year-over-year revenue increase. Revenue in the direct sales channel, Take Shape for Life, increased 20 percent to $55.6 million in the third quarter of 2012 compared to $46.4 million in the same period last year. Growth in revenue for Take Shape for Life was driven by increased customer product sales as a result of an increase in the number of active health coaches and an increase in the monthly revenue per health coach. The company ended the third quarter with approximately 10,800 active health coaches and the average revenue per health coach per month for the quarter increased 3 percent to $1,634 compared to $1,585 in the third quarter of 2011. View the full press release online.
Nature’s Sunshine Products recently reported its third-quarter financial results. Net sales were $91.2 million, compared with $91.1 million in the same quarter a year ago, an increase of 0.1 percent; however, net sales increased 2.1 percent in local currencies. As of Sept. 30, 2012, active managers worldwide were 28,700, an increase of 1.8 percent from Sept. 30, 2011, while active distributors and customers worldwide were 656,800, a decrease of 3.7 percent from the end of the quarter a year ago. Operating income was $8.7 million, compared with an operating loss of $5.1 million and pro forma operating income from continuing operations of $9.6 million (excluding contract termination costs) in the same quarter a year ago, a decrease of 9.7 percent year-over-year. For the first nine months of the year, net sales were $277.1 million, compared with $275.8 million in the same period a year ago, an increase of 0.5 percent; however, net sales increased 2 percent in local currencies.
Net income was $20.9 million, compared with net income of $10 million and pro forma net income of $19 million (excluding contract termination costs) in the same period a year ago, an increase of 9.9 percent year-over-year. In the U.S., net sales were $33.7 million, compared with $33.5 million in the same quarter a year ago, an increase of 0.5 percent. Net sales for core products increased by 1 percent, but were partially offset by the discontinuance of non-core products. Active managers within NSP U.S. totaled approximately 5,300 and 5,600 at Sept. 30, 2012 and 2011, respectively. Active distributors and customers within NSP U.S. totaled approximately 191,500 and 210,300 at Sept. 30, 2012 and 2011, respectively.
Synergy WorldWide, a wholly owned subsidiary of Nature’s Sunshine Products, Inc., reported net sales of $26.3 million, compared with $24.5 million in the same quarter a year ago, an increase of 7.1 percent. In local currencies, net sales increased 13.1 percent compared to the same quarter a year ago. Active managers within Synergy Worldwide totaled approximately 3,200 and 2,600 at Sept. 30, 2012 and 2011, respectively. Active distributors and customers within Synergy Worldwide totaled approximately 89,100 and 85,000 at Sept. 30, 2012 and 2011, respectively. View the full press release online.
Primerica announced its financial results for the third quarter of 2012. Total revenues were $299.1 million in the third quarter of 2012 and net income was $45.6 million. Operating revenues increased by 7 percent to $295.2 million in the third quarter of 2012, compared with $276 million in the third quarter of 2011. Net operating income grew by 21 percent to $45.1 million in the third quarter of 2012, compared with $37.3 million in the third quarter of 2011. The size of the company’s life-licensed insurance salesforce was 91,506 at Sept. 30, 2012, up modestly from 90,868 at June 30, 2012.
There was downward pressure on recruiting in the second and third quarters as the company placed more focus on licensing initiatives, which improved the percentage of new recruits obtaining a license in those quarters. Lower sequential recruiting levels in the second quarter and a 3 percent decline in recruiting in the third quarter from the second quarter translated into 12 percent fewer new life licenses in the third quarter than in the second quarter of 2012. On a year-over-year basis, the life-licensed salesforce was down slightly from 91,970 at Sept. 30, 2011. Coming off the unusually high post-convention recruiting surge in 2011, recruiting declined 43 percent to 47,639, and new life licenses declined 17 percent to 8,613 compared with the third quarter of 2011. View the full press release online.
Stella & Dot won the Retail Innovation award for the 16th annual Accessories Council Excellence Awards. The company was also listed as No. 11 on the “100 Fastest Growing Private Companies in the Bay Area” list, published in the San Francisco Business Times.
Stream Energy is working to assist low-income families this winter with a donation to the Fuel Fund of Maryland. The donation will help families in distress with their heating and energy needs. The company has provided electricity services to customers in Maryland since 2011.
Direct Selling on Wall Street: Despite Challenges, Companies Post Record Q3 2012 Results
As the United States continues to emerge from the effects of the global recession, direct selling companies are seeking—and, in many instances, capitalizing on—opportunities for growth and expansion in the U.S. and abroad.
Of those companies to post strong results for third quarter 2012, Herbalife, Nu Skin andUSANA were among those publicly traded direct selling companies to report record-breaking figures.
Herbalife reported record third-quarter net sales of $1 billion, a 14 percent increase year over year; and Nu Skin announced record third-quarter results with revenue of $526.2 million, a 23 percent improvement over the prior-year period. Additionally, USANA’s net sales for the third-quarter 2012 increased by 15.1 percent to $165.2 million.
Although such results are not representative of the entire industry, they are indicative of the steady growth various companies across the channel have experienced in recent months.
“We truly believe, as direct sellers, we’re at the right place at the right time,” said DSA President Joe Mariano. “We’re an industry that clearly thrives on better service, consumer education and opportunities that aren’t necessarily available to the rest of the market. We’re centered on the fact that people trust what we do and share a passion for what we do and that’s something unique.”
In many ways, this uniqueness that defines the direct sales channel proffers an advantage as companies look to enter the public market.
“As more and more direct selling companies continue to do well in the public market, that will be great for the overall industry and attract more investors,” said Rodney Clark, Managing Director and Co-Head of U.S. Consumer Investment Banking with supplier member Canaccord Genuity Inc. “The model has worked extremely well and growth is strong. As direct selling companies mature, they have to find ways to continue their growth, whether it’s through new products or distribution or expansion to new markets.”
While financial gain is most commonly viewed as the distinct advantage to going public, for many companies—particularly direct selling companies—another key benefit is an increased public awareness of the company as well as the business model itself.
“There is somewhat of an education element present in that people who don’t know much about the direct selling model might have picked up on the bad case studies that are out there and based their opinions on those instances,” Rodney said. “The direct selling industry is going to have to distance itself from those cases over time. It’s very similar to what’s happened in the nutrition industry. There was once a lot of turmoil but, in that industry, we’ve seen a lot of strategic big deals. Just like the nutrition industry, as direct selling gains traction, investors will become more astute to the fact that this is a highly productive channel.”
Even when negative coverage of the direct sales channel is not making front-page news, broad-sweeping generalizations, however inaccurate they might be, pose challenges to direct selling companies looking to break into the public market.
“The industry has had some challenges in the public’s eyes so valuations aren’t very rich right now,” Rodney said. “It’s been a little challenging for direct sellers to attract new investors because there’s been a spotlight on the industry and there hasn’t always been a positive tone in some of the coverage that’s out there. But, what companies are showing coming out of the recession is that many are getting the right products and services into distributors’ hands and are seeing strong growth. These business models are fantastic and if you’ve got the right products in the right hands and distributors who are excited and engaged, you can post positive results.”
As direct selling companies new to the public sector face a number of challenges including legal and accounting fees, Securities and Exchange Commission reporting requirements and pressure to increase earnings, it is important to recognize that the greatest challenges are often those that companies face internally.
“Abstracting from the direct selling industry and looking at the broader market, any company can face challenges in the spotlight, but that doesn’t necessarily mean that the rest of the industry isn’t doing well or shouldn’t be viewed favorably,” Rodney said. “The challenges could be company-specific, such as management issues. Overall, the industry is a strong industry and for the companies that are well-managed and on trend, they’re firing on all cylinders in the public market and even experiencing a great deal of international growth.”
This weeks MLM News covers the financial earnings for, Lightyear Network Solutions, Avon, Herbalife, Medifast, Natura Cosmeticos SA, Nature’s Sunshine, and Reliv International. Plus we take a look at the Internet Sales Tax Bill, and my good friend and home business entrepreneur John Fogarty’s customer made furniture.
Sales Tax Collection on Internet Transactions: Is Change on its Way?
While the rule of thumb has usually been that online retailers do not have to collect sales taxes on purchases from customers who live in a different state from which the merchant is located, Congress is now considering legislation that would require such retailers to collect and remit sales tax on all purchases—even when they don’t have a physical presence in that state. (Read The Whole Story Here)
LOUISVILLE, Ky., May 15, 2012 — Lightyear Network Solutions, Inc. (the “Company”) (OTC Markets: LYNS), an established provider of data, voice and wireless telecommunication services to business and residential customers throughout North America, announced today its financial results for the first quarter ended March 31, 2012.
“We believe that Lightyear is continuing to build positive momentum, and we are pleased with the progress our Company has made,” said Stephen M. Lochmueller, Lightyear’s Chief Executive Officer. “We again saw growth in our wireless sector for the first quarter, and it continues to be bright spot for Lightyear. We are focused on improving our financial results in 2012.” (Read The Whole Press Release Here)
NEW YORK, Aug. 1, 2012 /PRNewswire/ — Avon Products, Inc. (NYSE: AVP) today reported second-quarter 2012 results. “Avon’s second-quarter financial results are not good and they reflect the complex challenges that Avon faces. We are working to stabilize the top-line, improve cost structure and cash generation, and instill a more disciplined culture of accountability,” said Sheri McCoy, Avon’s Chief Executive Officer. “We will also put the consumer and Representative back at the center of our business and ensure our associates are engaged and aligned. It will take time, but I am confident that we can turn the business around and reach a point of sustainable growth.”
Total revenue of $2.6 billion decreased 9%, or down 1% in constant dollars. Total units declined by 4% and price/mix increased 3% during the quarter. Active Representatives were down 3%. (Read The Full Story Here
LOS ANGELES–(BUSINESS WIRE)– Herbalife Ltd. (NYSE: HLF) today reported second quarter record net sales of $1.0 billion, a 17 percent increase, driven by a 23 percent increase in volume points compared to the prior year period. The company reported net income of $133.4 million, or $1.10 per diluted share, compared to the second quarter 2011 net income of $111.2 million, or $0.88 per diluted share, reflecting an increase of 20 percent and 25 percent, respectively.
“The broad strength of our business success continued throughout the second quarter with strong sales performance from each of our six regions, along with record earnings and strong cash flow,” said Michael O. Johnson, the company’s chairman and CEO. “We believe the underlying drivers of our current business success, engaged distributors focused on globalizing daily consumption sales methods and products which are relevant for today’s global macro trends of obesity and an aging population, will continue to provide the catalyst for future growth.” (Read The Full Press Release Here)
“We are very pleased with our sales and earnings results in the second quarter as we continued to execute our strategy to reduce costs and drive operational efficiencies throughout Take Shape for Life, Medifast Direct, and the Medifast Weight Control Center and Wholesale Physicians sales channels,” commented Michael C. MacDonald, Medifast’s Executive Chairman and Chief Executive Officer. “These efforts enabled us to generate a profit in the Medifast Weight Control Center and Wholesale Physicians segment. Going forward, we plan to focus our weight control center growth through new and existing franchisees to reduce our corporate capital investment and create higher returns as we continue to increase profitability across each of our sales channels and maximize shareholder value long-term.” (Read The Full Story Here)
Natura Cosmeticos SA (NATU3), Latin America’s largest cosmetics company, posted second-quarter profit that beat analysts’ estimates as an upgrade of operational systems boosted sales.
Net income rose 14 percent to 215 million reais ($105.8 million) from 188 million reais a year earlier, the Cajamar, Brazil-based company said yesterday in a statement sent to the website of Brazil’s securities regulator. The result was above the 213 million reais average estimate for adjusted net income of six analysts compiled by Bloomberg. (Read The Whole Story)
LEHI, Utah, Aug. 1, 2012 (GLOBE NEWSWIRE) — Nature’s Sunshine Products, Inc. (Nasdaq:NATR), including its subsidiary Synergy Worldwide, Inc., a leading natural health and wellness company engaged in the manufacture and direct selling of nutritional and personal care products, today reported its consolidated financial results for the second quarter ended June 30, 2012, and declared a quarterly cash dividend. (Read The Full Story Here)
CHESTERFIELD, Mo., Aug. 1, 2012 /PRNewswire/ — Reliv International, Inc. (NASDAQ: RELV), a maker of nutritional supplements that promote optimal health, today reported its financial results for the second quarter of 2012.
Net sales for the quarter were $16.8 million, a 6.8 percent decrease from the second quarter last year. Net sales in the United States totaled $12.9 million, down from second-quarter 2011 net sales of $14.8 million. Net sales outside of the United States rose 21.6 percent in the second quarter of 2012 compared to the prior-year quarter, led by the European market where net sales more than doubled. (Read The Full Press Release)
This week I gathered the majority of the news from John Flemming’s team over at Direct Selling News. DSN is the #1 resource for news worldwide surrounding the Direct Selling, Network Marketing and MLM community.
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.
In this MLM News Report, Troy Dooly covers some powerful Direct Selling News, along with some exciting news from the Network Marketing Community. We also launch out new MLM Company Startup Spotlight. We also share a powerful message from DSA President Joe Mariano.
This last Tuesday was Election Day across many parts of the country, so it was fitting, I suppose, that I had a conversation that day with an industry blogger about the DSAPAC. I contacted this self-described industry observer because one of his recent video posts had so misunderstood our Association’s political action committee. It struck me that most people are probably terribly uninformed, or worse—misinformed—about political action committees in general, and DSA’s specifically. Perhaps a little bit of accurate information would help… Read On
Vemma Wins Five Awards in 2011 MARCOM Competition
Vemma Nutrition Company is pleased to announce the receipt of five awards in the prestigious MARCOM Awards competition. Vemma was honored with three Platinum awards, the competition’s highest designation, and two Gold awards recognizing the company’s outstanding creative achievements in marketing and communications. The awards were conferred for work ranging from print and packaging to video and social media.
Over 6,000 entries were submitted in this year’s international competition from corporate marketing and communication departments, advertising agencies, PR firms, design shops, production companies and freelancers.
Less than 20% of entries received a Platinum award; Vemma was awarded the following Platinum awards: Read On…
Other winners were…
Amway, Nu Skin, Reliv, USANA and pending member Vemma recently won gold and platinum awards in the 2011 MARCOM Competition. The MARCOM Awards are administered and judged by the Association of Marketing and Communication Professionals. The judges are industry professionals who look for companies and individuals whose talent exceeds a high standard of excellence and whose work serves as a benchmark for the industry. The following outlines the awards received by each company.
Design (Print)/Invitation for the Artistry 5:01 Invitation (platinum)
Design (Print)/Training Kit for the Amway Welcome Kit (platinum)
Marketing/Promotion Campaign/Product Launch for the Artistry Intensive Skincare Ultimate Demo Kit (platinum)
Design (Print)/Product Sampler for the Artistry Intensive Skincare Product Sampler (gold)
Brochure/Catalog for the Artistry True Beauty Catalog (gold) Nu Skin
Annual Report/Corporate Social Responsibility for CSR Year In Review 2010 (platinum)
Marketing/Promotion Campaign/Branding for the Nu Skin PPCO Presentation (platinum)
Marketing/Promotion Campaign/Product Launch for the Nu Skin ageLOC 2011-2012 Opportunity Launch Kit (platinum)
Annual Report/Corporation for the Nu Skin Annual Report 2010 (gold)
Microsite for www.ageloc.com (gold) Reliv
Marketing/Promotion Campaign/Product Launch for the Reliv 24K Product Launch (platinum)
Marketing/Promotion Campaign/Branding for Refreshing the Reliv Brand (gold) USANA
Web Video for The Healthy Home Did You Know video (platinum)
DVD/CD-ROM/Interactive Presentation for the Health and Freedom Solution (platinum)
Marketing/Promotion Campaign/Product Launch for The Healthy Home book (gold)
Magazine/Corporate for Influencer Magazine (gold)
Additional Network Marketing News
Amway is giving away a $10,000 scholarship through the Amway Miss America Scholarship Contest, which is being held on the Amway U.S. Facebook page. The company sponsors the Miss America Scholarship Fund and its ARTISTRY® brand is Miss America’s official skin care and cosmetics line. Read On…
Berkshire Hathaway, parent company of The Kirby Company, Pampered Chef and World Book, announced its 2011 third-quarter financial results. Profits for the company fell 24 percent as derivative bets declined in value. Read On…
The Herbalife Family Foundation provided grants to Houston’s Casa de Esperanza de los Ninos and the Smile Foundation in Mumbai to create a Casa Herbalife program in each location to improve nutrition for children in need. Read On…
Medifast, parent company of Take Shape for Life, announced its 2011 third-quarter financial results. Medifast reported net revenue increased 13 percent to $76.1 million from net revenue of $67.3 million in the third quarter of the prior year. Each of the company’s three primary distribution channels, Take Shape for Life, Direct Response Marketing and Medifast Weight Control Centers and Wholesale Physicians, contributed to this year-over-year revenue increase. Revenue in the direct sales channel, Take Shape for Life, increased 6 percent to $46.4 million in the third quarter of 2011 compared to $43.7 million in the same period last year. Growth in revenue for Take Shape for Life was driven by increased customer product sales as a result of an increase in the number of active health coaches. The company ended the quarter with approximately 10,300 active health coaches, an increase of 14 percent compared to 9,000 in the third quarter of 2010, and flat sequentially from the second quarter of 2011. Read On…
Nature’s Sunshine Products reported third-quarter financial results for 2011. Net sales were $91.1 million, compared with $86.1 million in the same quarter a year ago, an increase of 5.8 percent. Earnings for the quarter included non-recurring contract termination costs of $14.7 million related to the NutriPlus arbitration settlement. Excluding the contract termination costs, pro forma operating income and net income from continuing operations increased by 148.8 percent and 153.9 percent, respectively, compared with the third quarter of 2010. Operating losses from continuing operations were $5.1 million, compared with operating income of $3.9 million in the same quarter a year ago, a decrease of 231.7 percent. Read On…
Neways is continuing its Asian expansion with the opening of a new market in Korea in December 2011. With a new showroom and offices located in Seoul’s affluent Gangnam district, Neways Korea will be led by new market manager, Jong Suk Lee. To officially launch the Korea market, Neways will hold its annual Japan Crystal Diamond Convention in Seoul Dec. 12-14, 2011, with a ribbon-cutting ceremony and other celebratory events. Read On…
Primerica has formed a partnership with Lincoln Financial Distributors, the wholesale distribution subsidiary of Lincoln Financial Group, to enable approximately 82,000 of Primerica’s 92,000 licensed representatives to offer Lincoln’s Fixed Indexed Annuity product as part of the company’s suite of retirement planning solutions. Implementation of the alliance is scheduled to be complete early in 2012.
RBC Life announced its third-quarter 2011 results, reporting an increase in consolidated net sales of 15 percent. Net sales for the quarter ended Sept. 30, 2011, were $7.1 million compared to net sales of $6.1 million for the same quarter in 2010. For the third quarter of 2011, the company also reported a net loss of $290,000 compared to net earnings of $133,000 for the same quarter last year. Read On…
TriVita has been asked to modify or discontinue certain claims made in direct-response advertising for its cactus fruit juice-based dietary supplement, Nopalea, by the Electronic Retailing Self-Regulation Program, which monitors advertising and marketing in the direct-response industry. The group said while the science behind Nopalea was useful it was not enough to substantiate the claims of benefit for specific health conditions used to market the product. TriVita noted studies on the product are underway, adding it takes great care to truthfully and accurately advertise its products.
USANA is currently constructing, on the roof of its West Valley headquarters, the largest solar panel installation by a non-governmental organization in Utah. The company’s solar panels will generate 167 kilowatts of electricity at peak production and will eliminate more than 270 pounds of sulfur dioxide, 330 pounds of nitrogen oxide emissions and 190,000 pounds of carbon emissions annually, which would normally be generated from energy production on Utah’s electricity grid. Eliminating these pollutants is part of USANA’s commitment to promoting human health and the health of the environment.
This Weeks Network Marketing Start-Up Spotlight goes to Prepay CPA
If you have an interest in learning about this new Network Marketing Start-Up feel free to contact me for an introduction – Advocates@TheNetworkMarketingAdvocates.com
Year after year, if you plan on earning a living in this world, most people have to worry about paying tax on their income.
But for many of us, that’s only really the tip of the iceberg as far as tax goes, and things get more complicated still if we run a business.
For many, even those with seemingly simple accounting requirements, this means a trip down to the local accountant, some patience and then a phonecall letting you know everything has been taken care of.
At a cost of course.
Seeking to capitalize on the accounting industry, Prepay CPA seek to provide their members with a prepaid alternative to the traditional model of the accounting industry.
Oh, and did I mention they’ve decided to combine it with a MLM compensation plan too? Read on for a full review of the PrePayCPA business opportunity. Read The Full Review…
Updated December 30th, 2011 – David Track’s Official Response To Behind MLM Review: