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Medifast Inc. (MED—NYSE) announced that for the second quarter ended June 30, 2009, Medifast reported revenue of $40.7 million, a 48 percent increase from $27.5 million in the second quarter of 2008. The company reported net income of $3.0 million, or 20 cents per fully diluted share, compared with $1.5 million, or 11 cents per fully diluted share in the second quarter of 2008, a diluted EPS increase of 82 percent.
For the six months ended June 30, 2009, Medifast reported revenue of $74.4 million, an increase of 41 percent from $52.7 million for the six months ended June 30, 2008. The company reported net income of $5.5 million, or 37 cents per fully diluted share, versus $2.9 million, or 21 cents per fully diluted share, in 2008.
Revenues in the direct sales segment, Take Shape for Life, increased 98 percent to $24.0 million, compared with $12.1 million in the comparable quarter of 2008. The number of active health coaches during the second quarter increased to approximately 4,650, compared with 2,800 during the period a year ago, an increase of 66 percent and up from 4,000 at the end of the first quarter of 2009.
Medifast is the leading easy-to-use, clinically proven portion-controlled weight-loss program. The company sells its products and programs via four unique distribution channels: the Web and national call centers, the Take Shape for Life direct selling division, a national network of physicians, and medically supervised Medifast Weight Control Centers.
Relív International Inc. (RELV—Nasdaq) reported second-quarter net sales of $20.1 million, down from net sales of $24.0 million in the same quarter last year. Net income for the second quarter dropped to $410,000 from $569,000, and earnings per diluted share declined to 3 cents from 4 cents in the second quarter of 2008.
U.S. net sales in the quarter were $17.6 million, down 13.7 percent from the second quarter of last year. Net sales in international markets declined to $2.4 million in this year’s second quarter from $3.5 million in the same quarter last year, but approximately 40 percent of the decline was due to the stronger U.S. dollar in 2009.
For the first half of 2009, net sales totaled $43.8 million compared to $52.2 million in the first six months of 2008. Net income was $1.4 million or 10 cents per diluted share compared to $2.1 million or 13 cents per diluted share in last year’s first half.
Relív International Inc., based in Chesterfield, Mo., is a developer, manufacturer and marketer of a proprietary line of nutritional supplements. Relív sells its products through an international network marketing system of approximately 68,680 independent distributors.
USANA Health Sciences Inc. (USNA—Nasdaq) announced that net sales for the second quarter of 2009 improved to a record $112.1 million, compared with $109.2 million in the second quarter of the prior year, an increase of 2.6 percent. On a sequential quarter basis, net sales grew by 15.2 percent. Earnings per share for the second quarter of 2009 decreased by 6.6 percent to 57 cents per share, compared with 61 cents per share in the second quarter of the prior year.
For the six months ended July 4, 2009, net sales decreased 0.7 percent to $209.4 million, compared with $210.8 million for the first six months of the prior year. Earnings per share were $1.00 for the first six months of 2009, a decrease of 5.7 percent, compared with $1.06 for the first six months of the prior year.
On a sequential quarter basis, net sales increased by 12.2 percent in North America and 19.2 percent in Asia-Pacific. Additionally, nearly all markets experienced sales growth, and six markets experienced double-digit sales growth. The number of active associates also increased 8.7 percent overall, with 9.3 and 8.0 percent improvements in North America and Asia-Pacific, respectively.
USANA develops and manufactures high-quality nutritional, personal-care and weight-management products that are sold directly to preferred customers and associates worldwide.
Nu Skin Enterprises Inc. (NUS—NYSE) announced second-quarter revenue of $322.6 million, up slightly from $321.7 million reported in the prior year, but up 4 percent on a constant-currency basis. Earnings per share for the quarter were 35 cents, a 9 percent improvement over the same quarter of 2008. Earnings per share, excluding restructuring charges in the current quarter, were 36 cents, a 13 percent improvement over the prior-year period. Operating income improved 19 percent.
Nu Skin Enterprises Inc. is a global direct selling company operating in 47 markets throughout Asia, the Americas and Europe. The company markets premium-quality personal-care products under the Nu Skin® brand, science-based nutritional supplements under the Pharmanex® brand, and technology-based products and services under the Big Planet® brand.
Pre-Paid Legal Services Inc. (PPD—NYSE) announced net income for the second quarter of 2009 increased 5 percent to $15.8 million from $15.1 million for the prior year’s second quarter. Diluted earnings per share increased 15 percent to $1.44 per share from $1.25 per share for the prior year’s comparable quarter due to an increase in net income of 5 percent and a 9 percent decrease in the weighted average outstanding shares. Membership fees in the second quarter of 2009 decreased 4 percent to $105.6 million from $109.5 million for the same period last year.
Membership revenues for the first half of 2009 decreased 3 percent to $212.4 million vs. $218.5 million for the first half of 2008. Net income for the first six months of 2009 increased 6 percent to $32.9 million vs. $31.0 million for the first six months of 2008. Diluted earnings per share increased 17 percent to $2.96 vs. $2.54.
During the second quarter of 2009, new sales associates enrolled decreased 3.6 percent compared to the second quarter of 2008. Memberships produced decreased by 9.1 percent while new membership fees written decreased by 9.3 percent, and the active membership base decreased 3.9 percent compared to the comparable period of the previous year.
Pre-Paid Legal Services® Inc. offers legal service benefits plans provided through a network of more than 50 independent law firms across the United States and Canada.
Tupperware Brands Corporation (TUP—NYSE) reported second quarter 2009 sales increased in local currency by 4 percent versus 2008 before a negative impact from foreign exchange rates of 14 percent. This resulted in a GAAP sales decrease of 10 percent compared with 2008.
Diluted GAAP earnings per share of 52 cents for the second quarter of 2009, down 4 cents versus last year, included net negative 34 cents from items impacting comparability. The adjusted diluted earnings per share of 86 cents was 24 cents better than the high end of the guidance range given in April.
Tupperware Brands Corporation is a portfolio of global direct selling companies, selling premium innovative products across multiple brands and categories through an independent salesforce of 2.3 million.
Avon Products Inc. (AVP—NYSE) reported second quarter 2009 total revenue of $2.5 billion, 10 percent lower than that of 2008’s second quarter, but up 5 percent on a local-currency basis as foreign exchange pressured growth by15 percentage points. Beauty sales in the second quarter of 2009 were 10 percent lower versus the prior-year period, but increased 5 percent on a local-currency basis. Active representatives grew 11 percent. Units overall rose 2 percent versus the prior-year quarter and beauty units increased 3 percent.
Net income in second quarter 2009 was $83 million, or 19 cents per share, compared with $236 million, or 55 cents per share, in the year-ago quarter.
“Our bold strategies to counter the recession are working,” said Avon Chairman and CEO Andrea Jung. “We’ve been successful at gaining representatives and consumers during these tough economic times. This confirms our belief in the inherent advantage of our direct selling business model. As women around the globe are seeking income and smart value products, Avon is there to meet their needs.”
Avon, the company for women, is a leading global beauty company, with more than $10 billion in annual revenue. As the world’s largest direct seller, Avon markets to women in more than 100 countries through more than 5.8 million independent Avon sales representatives.
Herbalife Ltd. (HLF—NYSE) reported second quarter 2009 net sales of $571.8 million, a decrease of 10.6 percent compared to the same period of 2008, solely reflecting the unfavorable impact of currency fluctuations. Excluding the impact from currency fluctuations, local currency year-over-year net sales were flat with the second quarter 2008 results. For the quarter ended June 30, 2009, the company reported net income of $48.3 million, or 77 cents per diluted share, compared to $67.1 million, or $1.01 per diluted share in the second quarter of 2008, reflecting lower net sales and gross profit margins attributable to unfavorable currency fluctuations, coupled with a higher effective tax rate reflecting country mix, partially offset by accretion from the company’s share repurchase program. Excluding the impact from adjusting items in the second quarter, adjusted net income was $49.3 million, or 78 cents in adjusted diluted earnings per share, reflecting a decrease of 27.4 percent and 24.3 percent, respectively, compared to the same period in 2008.
During the second quarter of 2009, the company added 51,728 new sales leaders, which is 16.9 percent lower than the same period in 2008. Additionally, total sales leaders decreased 5.1 percent to 390,743 in the second quarter of 2009 compared to the same period in 2008, which reflects a slight reduction in retention, 40.3 percent as of the requalification period in 2009 versus 41.0 percent in the 2008 requalification period, coupled with fewer new sales leaders in 2009.
Herbalife is a global network marketing company that sells nutritional supplements and weight-management and personal-care products intended to support a healthy lifestyle. Herbalife products are sold in 70 countries through a network of more than 1.9 million independent distributors.
RBC Life Sciences Inc. (RBCL—OTC Bulletin Board) reported companywide net sales of $6.76 million for the quarter ended June 30, 2009, compared to net sales of $6.89 million for the same quarter last year.
The company also reported net earnings of $277,000, or 1 cent per share, during the second quarter of 2009, compared to net earnings of $276,000, or 1 cent per share, in 2008.
RBC Life Sciences develops, manufactures and markets high-quality nutritional supplements and personal-care products to a growing population of consumers seeking wellness and a healthy lifestyle.
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.
