LifeVantage released the financial results for its fourth fiscal quarter and full fiscal year ending June 30, 2021.
For the fourth quarter of fiscal 2021, the company reported a revenue of $54.8 million, which is a decrease of 7.7% from the same period last year but an increase of 6.2% sequentially. Total active accounts for the quarter reached 170,000. Compared to the third quarter of fiscal 2021, the number of distributors was flat while customers grew 1.9%.
Gross profit within the fourth quarter of fiscal 2021 was $45 million, or 82.1% of revenue, compared to $49.9 million (84.1% of revenue) for the same period of fiscal 2020. The company attributes this decrease in gross margin to increased shipping expenses to customers during COVID-19 and decreased fee revenues as a result of fewer in-person events.
Selling, general and administrative expense (SG&A) for the fourth fiscal quarter was $12.8 million, a slight decrease from $14.8 million for the same quarter in fiscal 2020, primarily due to decreased stock and incentive compensation expenses and the departure of executives.
Earnings per diluted share were $0.35 for the quarter, an increase of 34.6% over the prior year period and up 191.7% sequentially. Adjusted EBITDA decreased by 19.3% to $6.6 million compared to the prior period.
“Fourth quarter revenues results were in line with our expectations and earnings were slightly ahead as we continued to focus on our core strategies for driving long-term growth and operational improvement,” said Steve Fife, Chief Executive Officer and Chief Financial Officer of LifeVantage. “Adjusted earnings per share increased 11% despite an 8% decline in net sales. The sequential improvement in the number of customers was particularly encouraging and the first positive inflection in the past year. Our initiatives to drive active account growth through distributor enrollment and increased retention continue to gain traction and we expect to show further progress over the next several quarters. Consumers continue prioritizing health and wellness, which we believe creates a compelling long-term growth outlook for LifeVantage based on our proven products, strong balance sheet and deeply committed management team.”
For the fiscal year 2021, the company’s revenue decreased 5.5% to $220.2 million, but held a strong balance sheet of $23.2 million of cash with no debt. Earnings per diluted share were $0.90, compared to $0.79 in fiscal 2020, with adjusted earnings per diluted share reaching $1, compared to $0.86 in fiscal 2020. In the fiscal year, the company also repurchased 1.2 million, or $11.9 million, of common shares.
Gross profit for fiscal 2021 was $182 million, down from $195 million in fiscal 2020, due to increased shipping expenses. Operating income for fiscal 2021 was $17.6 million, an increase from $15.5 million in fiscal 2020. Cash from operations generated $16.3 million, compared to $18.3 million in fiscal 2020.
In fiscal 2022, the company expects to generate revenue in the range of $225 million to $235 million with an adjusted EBITDA of $22 million to $24 million. Adjusted earnings per share are anticipated in the range of $0.83 to $0.87, assuming a full year tax rate of approximately 26%.
