Breaking MLM News: Blyth Pulls FVA Ventures Inc aka ViSalus Sciences IPO Good Or Bad For Vi Distributors?

Visalus - Body By Vi - 90-Day Challenge

Last week I started to receive emails and calls about the fact Moody’s was wary of IPO plan for FVA Ventures Inc. aka ViSalus Sciences. I held off on reporting until we had heard from Blyth on this matter. Today they did hold an emergency Investor’s Conference Call to help clear up what was taking place.

For those who are interested to better understand the original filing you can review it at the SEC website by clicking here.

News Releases
Blyth, Inc. Subsidiary, ViSalus, Withdraws Initial Public Offering

GREENWICH, Conn., Sept. 26, 2012 /PRNewswire/ — ViSalus, a subsidiary of Blyth, Inc. (NYSE:BTH), today withdrew its initial public offering due to uncertain market conditions. ViSalus has achieved Net Sales growth in excess of 450% in the first half of 2012; however, management believes that current market conditions are not conducive to recognizing this level of achievement. As such, Blyth management supports fully this decision.

Commenting on the ViSalus decision, Robert B. Goergen, Chairman & CEO of Blyth noted, “we are extremely confident in the long-term growth prospects of ViSalus. Over the past year, Ryan Blair, ViSalus’ CEO, has worked with ViSalus’ other Founders to put in place a first class management team and the processes and programs necessary to bring ViSalus to the next level of achievement. We look forward to working with the ViSalus team to continue to build long-term value for Blyth’s shareholders.”

Blyth, Inc., headquartered in Greenwich, CT, USA, is a direct to consumer business focused on direct selling and direct marketing channels. We design and market home fragrance products and decorative accessories, as well as weight management products, nutritional supplements and energy drink mixes. These products are sold through Direct Selling from the home party plan method and network marketing. The Company also designs and markets household convenience items and personalized gifts through the catalog/internet channel, as well as tabletop lighting and chafing fuel for the foodservice trade. The Company manufactures most of its candles and chafing fuel and sources nearly all of its other products. Its products are sold direct to the consumer under the PartyLite®, Two Sisters Gourmet by PartyLite® and ViSalus Sciences® brands, to consumers in the catalog/Internet channel under the As We Change®, Miles Kimball®, Exposures®, Walter Drake® and Easy Comforts®, and to the Foodservice industry under the Sterno®, Ambria® and HandyFuel® brands. In Europe, Blyth’s products are also sold under the PartyLite brand.

Blyth, Inc. may be found on the Internet at www.blyth.com.

SOURCE Blyth, Inc.

Herb Greenberg of CNBC, who is a skeptic of Direct Selling talked today about both Herbalife and the ViSalus IPO. Although, I do not agree with Mr. Greenberg’s overall opinion of Direct Selling, I do believe him to provide some valuable information from time to time.

In reviewing the Blyth most current Form 10-Q we can see some exciting information on the company. Although attrition of promoters (distributors) is higher, than most would like to admit, the revenues are continuing to rise which seems to say, that ViSalus customers are staying on the products, even after the promoters leave the company.

Here are some highlights from the Form 10-Q. You can click the link above to read the full document.

Business Acquisitions

In August 2008, the Company signed a definitive agreement to purchase ViSalus, a direct seller of weight management products, nutritional supplements and energy drinks, through a series of investments.

In October 2008, the Company completed its initial investment and acquired a 43.6% equity interest in ViSalus for $13.0 million in cash and incurred acquisition costs of $1.0 million for a total cash acquisition cost of $14.0 million.

In April 2011, the Company completed the second phase of its acquisition of ViSalus for approximately $2.5 million, increasing its ownership to 57.5%.

In January 2012, the Company completed the third phase of its acquisition of ViSalus and increased its ownership to 72.7% for approximately $22.5 million in cash and the issuance of 681,324 unregistered shares of the Company’s common stock valued at $14.6 million, of which 340,662 shares may not be sold or transferred prior to January 12, 2014. Due to the restrictions on transfer, the common stock was issued at a discount to its trading price. The payments in the third closing were based upon an estimate of the 2011 EBITDA pursuant to the formula in the original purchase agreement, and were subsequently adjusted in April 2012 for the difference between the actual 2011 EBITDA and the estimate used in the third closing. The Company paid an additional $6.2 million in April 2012 after final determination of the actual 2011 EBITDA, bringing the total third phase acquisition cost to $43.3 million.

The Company intends to and may be required to purchase the remaining interest in ViSalus to increase its ownership to 100%. The fourth phase and final purchase of ViSalus is conditioned upon ViSalus meeting its original purchase agreement’s 2012 operating target. The Company has the option, but is not required, to acquire the remaining interest in ViSalus if it does not meet this operating target. However, as of June 30, 2012, the operating target for 2012 requiring the additional purchase is anticipated to be met. If ViSalus meets its current projected 2012 EBITDA forecast, the total expected redemption cost of the fourth and final phase will be approximately $271 million to be paid in 2013. The purchase price of the additional investment is equal to a multiple of ViSalus’s EBITDA, exclusive of certain unusual items. The payment, if any, may be funded in part using existing cash balances from both domestic and international sources, expected future cash flows from operations and the issuance of common stock and may require the Company to obtain additional sources of external financing.

Segment Information

Blyth designs and markets home fragrance products and decorative accessories, as well as weight management products, nutritional supplements and energy drinks. The Company’s products include an extensive array of decorative and functional household products such as candles, accessories, seasonal decorations, household convenience items and personalized gifts, meal replacement shakes, vitamins and energy mixes, as well as products for the foodservice trade. The Company’s products can be found throughout North America, Europe and Australia. Our financial results are reported in three segments: the Direct Selling segment, the Catalog & Internet segment and the Wholesale segment.

Within the Direct Selling segment, we design, manufacture or source, market and distribute an extensive line of products including scented candles, candle-related accessories and other fragranced products under the PartyLite ® brand. PartyLite also offers gourmet foods under the Two Sisters Gourmet  by PartyLite  brand name. PartyLite brand products are sold in North America, Europe and Australia. We also operate ViSalus Sciences ® , which is focused on selling meal replacement shakes, nutritional supplements, nutritional cookies and energy drinks. Products in this segment are sold through networks of independent sales Consultants and Promoters. ViSalus brand products are sold in North America. The Company has aggregated these two businesses to form the Direct Selling segment based upon similarities in distribution channels, customers, operating metrics and management oversight.

Net Sales

Net sales for the six months ended June 30, 2012 increased $235.3 million, or 63% to $607.9 million, from $372.6 million in the comparable prior year period due to strong sales growth in the direct selling segment.

Net sales for the three months ended June 30, 2012 increased $133.3 million, or 70% to $324.8 million, from $191.5 million in the comparable prior year period due to strong sales growth in the direct selling segment.

Net Sales – Direct Selling Segment

Net sales in the Direct Selling segment for the six months ended June 30, 2012 increased $243.7 million, or 90%, to $514.7 million from $271.0 million in the comparable prior year period. ViSalus’ Net sales increased $266.4 million, or 440% to $327.0 million from $60.6 million last year. This growth is a result of an increase in the number of promoters to over 114,000 as of June 30, 2012 from over 28,000 in the comparable prior year period.

PartyLite’s Net sales decreased $25.6 million, to $188.2 million from $213.8 million last year. Net sales of PartyLite Europe and Canada were negatively impacted by foreign exchange rate fluctuations, therefore, excluding the impact of foreign currency, sales in PartyLite Europe and Canada declined 8% and 12%, respectively. Net sales for PartyLite U.S., Europe and Canada declined on a U.S. dollar basis by 9%, 14% and 15%, respectively, primarily due to lower active independent consultants, as well as fewer shows, resulting in less opportunity to promote our products and recruit new consultants.

Net sales in the Direct Selling segment for the three months ended June 30, 2012 increased $137.4 million, or 98%, to $278.3 million from $140.9 million in the comparable prior year period. ViSalus’ Net sales increased $149.8 million, or 369% to $190.4 million from $40.6 million last year. As mentioned above, this growth is a result of an increase in promoters over last year, as well as increased demand for its products due to a growing customer base.

PartyLite’s Net sales decreased $13.3 million, or 13%, to $86.8 million from $100.1 million last year. Net sales of PartyLite Europe and Canada were negatively impacted by foreign exchange rate fluctuations, therefore, excluding the impact of foreign currency sales in PartyLite Europe and Canada declined 6% and 10%, respectively. Net sales for PartyLite U.S., Europe and Canada declined on a U.S. dollar basis by 11%, 16% and 14%, respectively, primarily due to lower active independent consultants, as well as fewer shows, resulting in less opportunity to promote our products and recruit new consultants.

You can read the full Form 10-Q by clicking here!

MLM Weekly News: Ocean Avenue Pre-Launch, Zeek Rewards Investigated, MLM Goes To Olympics New DSA Companies

mlm news

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.

Home Business Radio Network Economic Freedom Contest

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.

Zeek Rewards News

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.

Source: Direct Selling Association Weekly Newsletter

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)

Travel Vineyard

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.

Thanks for shopping at Jamberry Nails!
The Jamberry Sisters

TXU Energy

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.

Direct Selling Assocation

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.

MLM Leader Speaks Out: Top MLM Leader Matt Mason Apologizes To His Friends At ViSalus & Evolv Health

Matt Mason Today

Over the last few months, I have spoken with Matt Mason several times. Mason entered into network marketing in 2007 first at MonaVie, ViSalus Sciences and most recently Evolv Health. Today, Matt share with me his emotional story, and why he is now stepping back from network marketing. His goal is that everyone who listens to this interview will take a moment to reflect on what the network marketing community is all about… Relationships!

Matt Mason & Family

Matt Mason 90 Day Challenge

Matt Mason & Dallin Larsen

Matt Mason Today