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.
Without a doubt Direct Selling worldwide is coming on strong. Having weathered the economic recession of 2008, we are now seeing the rise in sales as well as distributors. And 2013 has started off on a strong note for both the public and private network marketing companies as we can see with this most current MLM News Report.
Success University 2013
Mary Kay Implements Latest Mobile Technologies to Support Worthy Cause
Domestic violence remains the number one cause of injury for women ages 15 to 44 and each year, in the U.S. alone, victims of domestic violence lose nearly 8 million days of paid work. In efforts to promote prevention and raise awareness, Mary Kay has launched innovative strategies to put a stop to violence and educate others about how to identify abuse.
In 1996, Mary Kay Ash first launched the Mary Kay Foundation with a commitment to help bring an end to cancers affecting women. Just five years later, those efforts were expanded to include working toward an end to domestic violence, a cause that has remained one of the foundation’s primary focuses ever since. Today, as part of its efforts, the company takes a uniquely innovative approach to furthering the cause through the use of mobile technology to provide support and assistance to those impacted by domestic violence who may feel they have no place to turn. (Read The Whole Article Click Here)
This week Washington, D.C., was the site of conferences hosted by the National Association of Attorneys General (NAAG), the Republican Attorneys General Association (RAGA) and the Democratic Attorneys General Association (DAGA). DSA’s involvement with these organizations has long been recognized by the DSA Government Relations Committee as an integral tactic of the Association’s government relations and political outreach strategy. DSA attorneys Valerie Hayes and John Webb participated in these events and spoke with numerous State Attorneys General about issues important to the direct selling industry. Specifically, they discussed the recent enforcement action filed against Fortune Hi-Tech Marketing by the Kentucky, North Carolina and Illinois Attorneys General in conjunction with the Federal Trade Commission. DSA staff discussed the Association’s membership review process and members’ compliance with DSA’s stringent Code of Ethics. In addition, DSA staff discussed legislation introduced in various states that would impact direct selling companies and distributors, as well as other issues.
Vice President Joe Biden and U.S. Attorney General Eric Holder gave keynote addresses at the NAAG meeting, focusing on the Administration’s gun control initiative. Thomas Curry, Comptroller of the Currency, and Richard Cordray, Director of the Consumer Financial Protection Bureau, discussed how the federal government is working with states to enforce consumer protection laws.
As prescribed by the DSA Government Relations Committee, DSA will continue to meet with State Attorneys General to foster these relationships and advocate the interests of the direct selling industry.
Network Marketing Companies In The News
Amway recently opened a new facility at Citi Field, home of the New York Mets baseball team. The Amway Business Center will be used for classes and serve as a resource for distributors. The company has also announced a sponsorship package with the team that includes a sign on the right-center field scoreboard, hospitality opportunities, season tickets and other ways to put its sponsorship into action.
Natura Cosmeticos was ranked No. 2 on the 2013 Global 100 List of the Most Sustainable Corporations in the World. The list is created by Corporate Knights Inc. using data on corporate sustainability from the top 100 large-cap companies in the world. The rankings are announced each year at the World Economic Forum.
Origami Owl has partnered with the country music band Rascal Flatts to promote its TAGGED™ collection. For a limited time customers will receive a digital download of Rascal Flatts’ latest single, Changed, with the purchase of Origami Owl’s Changed Tag.
Stella & Dot has established its European headquarters in London and is now looking to expand to Scotland with the recruitment of up to 450 new sales representatives there.
USANA announced that its China subsidiary, BabyCare Ltd., received official government approval from the Ministry of Commerce People’s Republic of China to expand direct selling activities in three additional provinces/municipalities: Jiangsu, Shanxi and Tianjin. These licenses are in addition to a license in Beijing.
In additional company news, the USANA True Health Foundation donated $10,000 NZ to KidsCan, a nonprofit organization in New Zealand, in response to Mike Allsop completing the 777 Project. The challenge included running seven marathons in seven days on seven continents.
Vemma has won five graphic design awards in two competitions sponsored by GDUSA magazine. The company took home three awards in the American Graphic Design Awards competition and two from the American Package Design Awards.
Although Herbalife has been the company in the news, it is the issues raised that we all must face. The Direct Selling Association as well as Herbalife has done a great job at providing the facts for those who are truly interested, and are not just on some witch hunt to prove their opinion or raise the balance in their investment funds.
After being the target of a vicious attack in December by short seller and hedge fund manager Bill Ackman, who alleged the company and the business model were fundamentally flawed, Herbalife presented detailed information today exposing the misrepresentations and inaccuracies presented as fact three weeks earlier. “We’ve been working hard to make a good company into a great company,” said Herbalife Chairman and CEO Michael Johnson in his opening remarks. The company then identified and directly addressed more than a dozen misrepresentations brought forth in Mr. Ackman’s presentation. “Gone are the days when ‘don’t repeat the negative’ is standard operating procedure for public relations,” said DSA Chief Marketing Officer Amy Robinson. “In an age when negative comments live forever online you can’t simply wait for the next news cycle. DSA applauds Herbalife’s direct approach in sharing information about the company and the business model.” (Click here to read the full report article)
The Cooling-Off Rule provides that it is unfair and deceptive for sellers engaged in “door-to-door” sales valued at more than $25 to fail to provide consumers with disclosures regarding their right to cancel the sales contract within three business days of the transaction. Within the context of the Rule, “door-to-door” sales can be defined as any sale that includes a personal presentation that is made at a place other than the place of business of the seller, generally covering most—if not all—sales made by direct sellers. (Click here to read the full report)
Direct Selling Fact Sheets All Network Marketers Should Read!
As part of Mary Kay’s “Don’t Look Away” campaign to prevent and end domestic violence, Olympic gold medalist and reigning national women’s gymnastics champion Jordyn Wieber will visit a high school in Los Angeles next week to talk with students about teen dating violence and the fundamentals of healthy dating relationships.
SimplyFun recently launched its annual “Play it Forward” campaign as a way to give back to communities at the local level. When hosts have a qualifying party they may select a charitable organization to receive a donated pack of SimplyFun games, “playing it forward” from their party to kids and families in need. Last year, SimplyFun touched more than 60 organizations including the Boys and Girls Club of the Northland (Minn.), MOPS Monrovia, Pasadena United Reformed Church, Ronald McDonald House and My Stuff Bags Foundation.
USANA recently announced it won more than 85 awards in 2012. Some notable accolades include Outside Magazine Awards, MarCom Awards, Stevie Awards and Utah Business Magazine Awards, among others. The company nearly doubled the number of awards it received in 2011.
USANA also announced that Women’s Tennis Association (WTA) athlete Sloane Stephens is its newest brand ambassador. USANA has been providing its nutritional products to more than 160 WTA players since 2006.
XANGO, having reached its 10th year of business, has donated 5 million supplemental meals to severely malnourished children and adults around the world. Under the company’s Meal Pack Program, nutrient-rich and water-soluble porridge is delivered to impoverished communities around the world. XANGO partnered with the organization AmeriCares in this endeavor, which, through partnerships with accredited non-governmental organizations established in strife-ridden parts of the world, personally delivers Meal Packs to critical populations and provides on-site product training to ensure best results. Meal Packs are donated by independent XANGO distributors, many of whom contribute every month.
Vemma Posts 46% U.S. Gains as Sales Close 2012 at $117 Million
Three major markets all post double-digit gains and the company pays over $1 million per week in bonuses!
Vemma Nutrition Company released its worldwide wholesale sales for 2012, posting an overall 30% increase at $117 million. The largest sales growth occurred in the U.S. market with a 46% increase over last year, followed by Canada with 34% sales growth and Europe with a 22% increase; the U.S. market also saw an incredible 85% growth in recruiting. Vemma also paid out over $1 million per week in Brand Partner bonuses in 2012. (Click Here to read the full Press Release)
In this weeks Network Marketing News, we are going to look at some Direct Selling companies who are helping to get the MLM community some great main stream press. Plus some Direct Selling News…
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Adapting to a New Era in Marketing: Why Social Media Managers Are Changing the Way Direct Selling Companies Operate
According to a recent report from Marketing Pilgrim, social media accounts for only 16 percent of customer engagement today. However, this number is expected to rise to 57 percent in just five years, making social media the second-most used channel for businesses and their customers, behind face-to-face interaction.
Recognizing that both customer engagement and field development are largely impacted by a company’s social media presence, many direct selling companies have established social media manager titles and similar positions tasked with monitoring, posting and measuring the effectiveness of outreach via platforms such as Facebook, Twitter and Instagram. Although these platforms were once considered personal-use-only, the rise in social media management titles reflects a shift in the understanding of how social networking sites serve as key resources for companies both big and small. (Read The Full Report)
Network Marketing Companies In The News
MountainWest Capital Network recently released its 2012 List of Utah’s 100 Fastest Growing Companies. Nu Skin and USANA were ranked in the Top 15 at Nos. 3 and 9 respectively, while LifeVantage and Supplier member Integracore appeared in the unranked Top 100. Listed on the unranked Utah Emerging Elite list is non-member Miche Bag. MountainWest Capital Network is a business networking organization dedicated to supporting entrepreneurial success in Utah.
AdvoCare will be receiving the Director’s Outstanding Business Award from Northwestern State University’s School of Business. The company’s founder, the late Charles Ragus, will be honored as a School of Business Distinction Recipient.
Amway recently sponsored a fall harvest party for 500 elementary school students in Grand Rapids, Mich. Fifty employees volunteered at the event where kids were able to do crafts, get their faces painted, go on a hayride and more.
In other company news, Amway Canada celebrated its 50th anniversary earlier this month.
CieAura has concluded negotiations with Digital Media Group (DMG) whereby DMG has acquired certain operating assets of the direct selling company. Ken Rasner, Founder and CEO of CieAura, will assume the title of Chairman Emeritus and Paul Rogers, formerly COO of CieAura, will become the CEO of DMG.
The Fuller Brush Company’s consumer business has been purchased by Victory Park Capital (VPC). David Sabin has been named the new CEO of the company. VPC has been Fuller Brush’s lender since 2010, has a strong track record of successfully restructuring businesses and is deeply familiar with the company. David noted that he intends to introduce new products to re-establish Fuller and Stanley Home Products as premier brands in their markets. Founded in 1906, Fuller Brush filed for bankruptcy in February 2012.
The Herbalife Family Foundation, through its Casa Herbalife program, provided a $50,000 grant to foster youth at Koinonia Homes for Teens in Loomis, Calif. The donation will provide the teens with an upgraded kitchen, healthier meals and better therapy for eating disorders.
Medifast, parent company of Take Shape for Life, was recognized by Forbes Magazine as No. 10 out of 100 on its annual list of “Best Small Companies in America.” This is the third consecutive year Medifast was included in the ranking, previously ranked No. 12 in 2011 and No. 1 in 2010.
Scentsy recently donated more than $781,500 to the American Heart Association. The money was raised from sales of its “Heartfelt” charitable cause warmer and was the company’s largest cash donation to date. To celebrate, Scentsy hosted a fun run/walk for its consultants and employees at Kleiner Memorial Park in Meridian, Idaho.
Stanley Home Products recently celebrated its 81st anniversary.
Tupperware recently reported third-quarter 2012 sales and profit, with sales down 1 percent in dollars and up 6 percent in local currency. GAAP net income for the quarter was $47.5 million compared with 2011 third-quarter GAAP net income of $10.5 million, which included a non-cash impairment charge of $36.1 million. The company repurchased in the open market 469,000 shares for $25 million in the third quarter of 2012. Since 2007, the company has repurchased 14 million shares for $728 million and can repurchase additional shares worth up to $472 million under its current authorization that runs until Feb. 1, 2015. The company expects to repurchase $100 million worth of shares in the fourth quarter of 2012. View the full press release online.
USANA announced its financial performance for the third quarter of 2012. Net sales for the quarter increased by 15.1 percent to $165.2 million, compared with $143.5 million in the prior-year period. The growth in net sales was driven by increases in both the company’s Asia Pacific and North America/Europe regions. Changes in currency exchange rates reduced net sales by nearly $1 million. Net earnings for the third quarter increased to $17.5 million, an increase of 41.2 percent, compared with the prior-year period. Net sales in the Asia Pacific region increased by 21.6 percent to $102.7 million, compared with $84.5 million for the third quarter of the prior year. This improvement was due to strong sales growth in Southeast Asia/Pacific and Greater China. During the third quarter of 2012, net sales in the North America/Europe region increased by 5.9 percent to $62.5 million, compared with $59 million in the prior-year period. The number of active associates in North America/Europe declined modestly, compared with the third quarter of 2011. View the full press release online.
Oct 22,2012 Santa Monica, California
Shopping Sherlock announced that the 3 month growth in Alexa page views of 170% is the highest growth rate in the Direct Sales space as reported by Ted Nuyten’s leading MLM blog Businessforhome.org.
The rise in web traffic correlates with the increase in new distributors and Company revenues. New distributorships are up over 300% in that period and overall revenues are up over 50%.
Michael Wiedder, CEO of Shopping Sherlock stated that the growth is a direct correlation to the launch of new products and tools. “We released our Daily Deals platform in 12 countries and just recently launched Taiwan as well. With our platform you have access to the top Daily Deal Company’s worldwide and our distributors make affiliate income as people buy and use the same Daily Deals that they are currently buying.
In addition to seeing and buying the Daily Deals from our site, as people are searching for products and services on Google, Yahoo or Bing, our technology lets them know if there is a Daily Deal, or a coupon available for what they are searching for, right from the search engines. As our distributor’s share the Daily Deals or coupons via facebook or other social media , it tracks the sales right back to the distributor’s account, and they make money.”
Wiedder also shared that they are launching their new mobile application on November 1st. The mobile app will allow people to find Daily Deals and Coupons, wherever they are worldwide. It uses your smart phones geo-location feature to show you the Daily Deals and coupons that are available where you are and pays for using those deals and sharing the app with other’s.
In addition, Shopping Sherlock is launching a Social Media platform for their reps this week. Wiedder stated, “ The Social Media platform will give Shopping Sherlock reps, their own blogs that will integrate with all their social media accounts. This combined with the marketing system the distributors receive, gives them turnkey tools to help share and build their businesses.”
Wiedder’s goal is for Shopping Sherlock to be the place to go to find the best deals on products and services both on the Internet and on mobile devices. He believes that as people continue to give the product away for free and benefit as people save money, the Company will continue to duplicate the growth they have achieved in the last 90 days in customers, revenues and new distributors.
Direct Selling clearly on the rise in Poland
The direct sales market in Poland increased by 1.3% year on year in 2011 to €585.4m. Cosmetics and personal care products accounted for 69% of the revenues of companies affiliated in the Direct Selling Association of Poland (PSSB). The year before this category held 70% while a European Union average in 2010 stood at 38%. The second largest value share in the Polish direct sales market had household appliances, which generated 13.4% of the overall direct retail sales in the country, marking a 3.4% increase year on year. OTC medicines and dietary supplements accounting for 11.6% of direct sales in Poland in 2011 and growing at 3.1% on a yearly basis. Approximately 870,000 individuals were involved in direct sales in Poland last year, of which 88% are women.
Companies operating on the market employed about 1,497 people, and 96% of the revenues came from person to person sales. Companies on the direct sales market include Amway, Avon Cosmetics, Forever Living Products, Herbalife, Mary Kay Cosmetics and Oriflame. Poland is the fifth largest direct sales market in Europe after France (€3.7bn), Germany (€2.7bn), Italy (€2.4bn), and Great Britain (€1.4bn).
The 2012 International Business Awards, a.k.a. the Stevie Awards, were announced this week. Winners will be celebrated and presented with their awards at a banquet in South Korea this October. DSA congratulates the following direct selling companies for their achievements:
Subscriber member ARIIX: Bronze Stevie Award –
Company of the Year – Health Products & Services and Pharmaceuticals Morinda Bioactives: Bronze Stevie Award – Best New Product or Service of the Year – Consumer Products Nu Skin U.S.: Bronze Stevie Award – Management Team of the Year
Nu Skin Korea/North Asia:
Gold Stevie Award – Company of the Year – Health Products & Services and Pharmaceuticals
Gold Stevie Award – Fastest-Growing Company of the Year in Asia (China, Japan and Korea)
Silver Stevie Award – Executive of the Year – Health Products & Services: Luke Yoo, CEO
Non-member The Learning Annex: Gold Stevie Award – Executive of the Year – Internet/New Media: David Galvan, CEO USANA:
Bronze Stevie Award – Management Team of the Year
Bronze Stevie Award – Customer Service Department of the Year – All Other Industries
AdvoCare recently held a Success School Conference in Fort Worth, Texas, during which independent distributors collected more than 1,400 backpacks and raised more than $27,000, all of which will benefit Operation Homefront, an organization that provides emergency financial and other assistance to families of service members and wounded warriors. This is the third year AdvoCare has stepped forward to help Operation Homefront. The company is on target to surpass its Platinum-level commitment of $250,000.
Pending member AnyArt recently launched the Canvas for a Cause program, whereby each independent distributor, in cooperation with their home party hostess, can select from a list of charities the one they would like a percentage of their parties’ sales to benefit. Guests are made of aware of such charitable donations through the invitations and reminders for the party.
Avon has announced that Paula Abdul will be a spokeswoman for their accessories collection, “Forever” selected by Paula Abdul.
Natural Health Trends, parent company of NHT Global, announced its financial earnings through June 30, 2012. The company reported first-half sales of $20.1 million, up 62 percent over the $12.4 million of a year ago. In the second quarter, sales, at $11 million, were up 52 percent over a year ago. View the full press release online.
Oriflame of Sweden has reported its financial earnings for the second quarter of 2012. For the three months ended on June 30, 2012, local currency sales increased by 1 percent and Euro sales were up by 2 percent to €373.6 million. Average size of the salesforce decreased by 5 percent to 3.6 million. Oriflame consultants and closing salesforce was down by 6 percent. For the past six months that ended on June 30, 2012, local currency sales increased by 2 percent and Euro sales were up by 1 percent to €769.3 million. View the full press release online.
This has been an active week in the network marketing community. From TXU Energy, ArtNEXT, Jamberry Nail and The Traveling Vineyard submitting applications for membership to the DSA, to Ocean Avenue hitting pre-launch, to Zeek Rewards being investigated to the powerful news MLM is well represented in the 2012 London Olympics.
This week I covered the pre-launch of Ocean Avenue. The founders of this company will be unveiled this next week in a live interview right hear at MLM Help Desk.
The North Carolina DOJ made it public this week they were investigating Rex Venture Group, LLC, the parent company of Zeek Rewards. I feel this could be the best thing to happen to the affiliates of Zeek Rewards so once and for all they can get some of the questions answered, and if there are any changes that need to be made, the company can change them ASAP.
Going for the Gold: Direct Selling Companies Make an Impact at the 2012 Olympic Games
As nearly 4 billion people across the globe have tuned in to watch their favorite athletes shine on the biggest stage in sports, the direct selling industry has yet again illustrated how the sales channel continues to empower men and women everywhere to achieve their dreams.
While Avon is recognized around the world for its firm commitment to women’s empowerment, few are aware of the company’s direct role in the incorporation of a key event at the Games—the women’s Olympic marathon.
In addition to Avon’s contributions to the Olympic Games, nutritional and science-based direct selling companies like USANA have made their mark on the global stage by maintaining partnerships with a number of elite athletes. This year alone, more than 60 Team USANA athletes traveled to London to compete in the Summer Games.
“The athletes who compete in the Olympics represent the best of the best,” said Ashley Collins, Executive Director of Marketing, Public Relations and Social Media for USANA. “Their health and wellness are vital to their success, so they have to choose their supplements very carefully.
“There are currently more than 600 product-sponsored Olympic and professional athletes that make up Team USANA,” she continued. “The fact that they are product-sponsored is significant—it means these are not fiscal sponsorships. We provide them only with supplements and health products and our athletes understand the value in that. Improving their health and performance is ultimately what the partnership is about.” (Read the whole article here)
Cheers! My name is Rick Libby and I am the founder, Chief Grape Stomper and Head Cheerleader for The Traveling Vineyard.
In 2001, we created The Traveling Vineyard as a unique in-home Wine Tasting concept similar to a Tupperware party or Pampered Chef show.
The difference? Well… tasting wine is a lot more fun and everybody likes to have a home wine tasting!
We recognized that it ís hard to know if you like a wine unless you try it first. So we bring the wines into your home where you, your friends and family can discover new varietals in a relaxed, pressure-free environment.
We held our first in-home tasting in Tampa, Florida in November of 2001 and have been on a roll ever since. Our wine tastings are conducted by our Independent Wine Consultants who love wine, love to educate and inform and love the fun, friendships, flexibility, financial reward and fulfillment that they derive from their role as Independent Traveling Vineyard Consultants.
Jamberry Nails started with three sisters.
We created Jamberry Nails to provide a simple way to brighten your day. We constantly get letters and feedback from customers letting us know how much they love the product and how many compliments they get day after day. We know you’ll love the product too and feel great wearing your Nail Shields.
You’ll also love Jamberry Nails because of how easily they can be applied and how many different looks you can achieve by mixing and matching. Our Nail Shields will give you that high-end salon look in the convenience of your own home.
We are passionate about making a great product and keeping up with the latest trends in our designs. If you have any feedback for our company we would love to hear it.
TXU Energy powers the lives of more Texans than any other electricity provider, making us the #1 choice for electricity in Texas.
We offer competitive market benefits by providing a variety of Texas power plans, low prices and innovative products and services to support your everyday needs.
With TXU Energy you’ll find:
Power with straightforward pricing that you can depend on.
A broad selection of plans to fit your Texas home and business needs.
Features like cash back loyalty rewards, price protection, recurring payment and more.
Renewable energy options that support Texas wind farms.
Energy-saving products to help you manage and reduce your bills.
Innovative budgeting and account management tools.
Bill payment assistance programs to help those in need.
24/7 dependable customer service.
Avon was listed as number 37 on Interbrand and Deloitte’s 2012 list of Best Global Green Brands. The 50 brands were evaluated based on their performance and the public’s perception of their green credentials.
Berkshire Hathaway, parent company to The Kirby Company, The Pampered Chef and World Book, recently released its earnings report for the second quarter of 2012. Berkshire said it generated $3.1 billion net income, down from last year’s second-quarter net income of $3.4 billion. Berkshire’s revenue grew slightly to $38.5 billion from $38.3 billion. The company reported a 37 percent increase in its operating profit, reporting $3.7 billion in operating earnings, up from $2.7 billion last year. Berkshire recorded a $693 million loss on its derivative contracts in this year’s second quarter. (Read Full Press Release)
Blyth, parent company to PartyLite Gifts and non-member ViSalus, recently reported its second-quarter financial earnings for 2012. Net sales for the three months ended June 30, 2012, increased 70 percent to $324.8 million, versus $191.5 million for the comparable prior-year period, primarily due to significant year-over-year sales growth at ViSalus. International sales for Blyth represented 20 percent of second-quarter sales this year, compared to 39 percent last year, driven by ViSalus’ strong domestic sales growth. In the direct selling segment, second-quarter net sales increased 98 percent to $278.3 million versus $140.9 million for the same period last year due to significant sales growth at ViSalus. (Read Full Press Release)
Flavon Max, with offices in several European countries, is now operating in the U.S.
ForeverGreen is expanding its operations to the Russian market.
Mannatech reported its second-quarter 2012 financial earnings with a net loss of $2.4 million for the second quarter ending June 30, 2012, compared to a net loss of $5.2 million for the second quarter of 2011. Net sales for the second quarter of 2012 were $43.6 million, a decrease of 15.1 percent, compared to $51.3 million in the second quarter of 2011. Read the Full Report Here
Mary Kay recently celebrated the 43rd anniversary of its pink Cadillac recognition program.
RBC Life Sciences recently released its financial earnings for the second quarter of 2012. The company reported consolidated net sales of $6.5 million for the quarter ended June 30, 2012, compared to $7.5 million for the second quarter of 2011. For the quarter, the company reported net earnings of $23,120 compared to net earnings of $17,030 for the same quarter in 2011. Read the Full Report Here
Thirty-One Gifts announced it is looking to hire up to 60 new full-time employees to work in its Springfield, Ohio, facility.
USANA was named one of the “Best Places to Work” by Outside magazine for its fourth consecutive year. The company was ranked number 23 out of 100 companies across the U.S. Outside’s “Best Places to Work” project celebrates the innovative companies setting a new standard for a healthy work-life balance.
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.