Photo: LifeVantage’s Sandy, Utah, headquarters.
LifeVantage Corp. (LFVN—NASDAQ) has reported financial results for its fiscal year 2016 and the first quarter of fiscal 2017, delayed by an audit of parts of its international business.
In the 12 months ended June 30, 2016, the health and wellness company generated revenue of $206.5 million, up 9 percent from the prior year. Results were driven by higher sales in the Americas, where revenue increased 15 percent, while the Asia-Pacific and Europe segment dropped 8 percent from a year earlier.
The bottom line contracted 14 percent to $6.0 million, or 41 cents per share, compared with $7.0 million, or 49 cents per share, in fiscal 2015. Adjusted earnings increased 32 percent to 62 cents per share.
The company also saw positive trends in the first quarter of fiscal 2017, ended Sept. 30, 2016. Revenue climbed 21 percent to $54.9 million, versus $45.4 million a year earlier. Notably, Asia-Pacific and Europe saw a 39 percent increase in sales from the same period in 2016.
These new filings bring the company up-to-date with the U.S. Securities and Exchange Commission, and on track to regain compliance with Nasdaq listing rules, which determine whether LifeVantage stock will continue to trade on the Nasdaq Capital Market.
“This unanticipated delay in our financial reporting was necessary as we look to ensure that we have the appropriate internal policies and procedures in place to support our international growth,” Darren Jensen, LifeVantage President and CEO, said in the company’s release.
In an earnings call with investors, management said the company had initiated an independent audit after employees raised concerns about certain international sales policies and associated taxes and tariffs. The review then expanded to include all international markets, and identified gaps in certain policies and procedures. The company is now outsourcing international tax and tariff responsibilities to correct these issues.
For the current fiscal year, management provided revenue guidance of $207 million to $212 million, with adjusted earnings in the range of 40 cents to 47 cents per share.