Photo: JRJR Networks is seeking a buyer for Longaberger’s Newark, Ohio, headquarters building.
JRJR Networks, the direct-to-consumer outfit formerly known as CVSL, on Wednesday reported financial results for 2015.
The release was delayed by a longer-than-anticipated audit of its 10 portfolio companies, whose operations span 50 countries, company officials said.
Annual revenue was $138.4 million, up 27 percent from $108.8 million in 2014. Last year, JRJR Networks approximately doubled the size of its business with the acquisitions of two United Kingdom-based brands, Kleeneze and Betterware.
Gross profit totaled $71.8 million, versus the prior year’s $53.3 million.
The company narrowed its loss to $18.8 million from $23.7 million a year ago. The results include a $1.7 million after-tax write-down on inventory at basket maker The Longaberger Company.
“Excluding inventory impairments, in 2015, we cut our operating loss by more than half,” said Chris Brooks, CFO of JRJR Networks. “We also reduced the earnings per share loss by half. We expect continued good progress on that front. We also expect to see EPS turn positive this year.”
Three years ago, JRJR Networks launched a strategy to acquire a diversified portfolio of direct-to-consumer companies, maintaining the brand and identity of each while cutting overlapping costs. In 2016, the company aims to boost the profitability of its portfolio and pursue larger acquisitions.
“As we look ahead to the latter part of this year, it’s our expectation that by Q4, before subtracting M&A expenses, JRJR Networks will be generating cash operating EBITDA of 10 to 12 percent, which is within our target range,” said John Rochon Jr., Founder and Vice-Chairman.
Management’s ongoing efforts to consolidate and streamline operations include the sale of the iconic Longaberger basket building in Newark, Ohio. Once a buyer is found, on-site office staff will relocate to the company’s Frazeysburg, Ohio, facility.