News Spotlight: Youngevity International, Inc. (NASDAQ:YGYI)

Youngevity International, Inc. (NASDAQ:YGYI) stock identified change of 108.69% away from 52-week low price and recently located move of -59.32% off 52-week high price. It has market worth of $188.72M . YGYI stock has been recorded 9.97% away from 50 day moving average and 3.06% away from 200 day moving average. Moving closer, we can see that shares have been trading 9.03% off 20-day moving average.

Youngevity International, Inc. (NASDAQ: YGYI), a leading multi-channel lifestyle company, disclosed financial results for the first quarter ended March 31, 2019.

First Quarter 2019 Results

Revenues for the first quarter ended March 31, 2019 increased 30.9% to $56.3 million as compared to $43.0 million for the quarter ended March 31, 2018. We derived approximately 59% of our revenue from our direct selling segment and approximately 41% of our revenue from our commercial coffee segment. Direct selling segment revenues decreased 5.4% to $33.4 million in the current quarter as compared to $35.3 million for the quarter ended March 31, 2018. This decrease was primarily attributed to revenues from new acquisitions of $421,000, offset by a decrease of $2,333,000 in revenues from existing business. Commercial coffee segment revenues increased by 196.9% to $22,813,000 in the current quarter as compared to $7,683,000 for the quarter ended March 31, 2018. This increase was primarily attributed to increased revenues from our new green coffee contract that CLR recently signed for approximately $250 million over 5 years. The new commercial hemp segment recorded $67,000 in revenues related to the acquisition of Khrysos which closed on February 15, 2019.

Gross profit for the first quarter ended March 31, 2019 increased 7.2% to $26.8 million as compared to $25.0 million for the first quarter ended March 31, 2018. Gross profit in the direct selling segment decreased 8.0% to $22,755,000 as compared to $24,735,000 for the first quarter ended March 31, 2018. Gross Profit in the commercial coffee segment increased to $4,067,000 in the current quarter, compared to $277,000 for the first quarter ended March 31, 2018, primarily due to the increase in revenues from our new green coffee contract discussed above. Overall gross profit as a percentage of revenues decreased to 47.7% in the current quarter compared to 58.2% in the same period last year, primarily due to the increased revenues in the commercial coffee segment, which generally produces lower margins than the direct selling segment.

Operating expenses increased 55.2% to $38,790,000 as compared to $24,988,000 for the three months ended March 31, 2018. This increase included an increase of $12,892,000 in non-cash equity-based compensation expense.

Distributor compensation paid to our independent distributors in the direct selling segment decreased 4.4% to $14,890,000 for the three months ended March 31, 2019, from $15,578,000 for the same period last year. This decrease was primarily attributable to the decrease in direct selling segment revenues.

For the three months ended March 31, 2019, total sales and marketing expense increased 14.9% to $4,019,000 from $3,499,000 for the three months ended March 31, 2018. This increase included an increase of $471,000 in non-cash equity-based compensation expense. Excluding the increase in equity-based compensation expense, the increase in sales and marketing expense would have been only 1.4%.

For the three months ended March 31, 2019, total general and administrative expense increased 236.3% to $19,881,000 from $5,911,000 for the three months ended March 31, 2018. This increase included an increase of $12,421,000 in non-cash equity-based compensation expense. Excluding the increase in equity-based compensation expense, the increase in general and administration expense would have been 27.2%. In the direct selling segment, general and administrative expense increased by 223.7% to $16,459,000 in the current quarter from $5,084,000 for the same period last year. This increase included an increase of $10,995,000 in non-cash equity-based compensation expense. Excluding the increase in equity-based compensation expense, general and administrative expense would have increased by 7.7%. This increase was primarily due to an increase in accounting and legal fees. In addition, there was no contingent liability revaluation adjustment in the current quarter compared to a reduction in expense of $213,000 for the same period last year. In the commercial coffee segment, general and administrative costs increased by $2,065,000 or 249.7% to $2,892,000 in the current quarter compared to $827,000 in the same period last year. This increase included an increase of $1,425,000 in non-cash equity-based compensation expense. Excluding the increase in stock-based compensation expense, general and administration expense in the commercial coffee segment would have increased by 77.4%. This was primarily due to an increase in wages, incentives, warehouse storage costs, workers’ compensation costs and profit-sharing expense of $243,000, compared to a profit-sharing benefit of $223,000 in the same period last year. General and administrative expense was $530,000 in the commercial hemp segment, mostly related to wages, supplies and general office costs as this segment begins to scale up in anticipation of greater revenues.

Other expense for the first quarter ended March 31, 2019 decreased by $2,061,000 to $21,000, as compared to other expense of $2,082,000 for the three months ended March 31, 2018. Net interest expense decreased by $205,000 for the three months ended March 31, 2019 to $1,507,000, compared to $1,712,000 for the three months ended March 31, 2018. Change in fair value of derivative liabilities increased by 774,000 for the three months ended March 31, 2019 to $1,486,000 in other income compared to $712,000 for the three months ended March 31, 2018. For the three months ended March 31, 2018, we recorded a non-cash extinguishment loss on debt of $1,082,000 as a result of the triggering of the automatic conversion of the 2017 Notes associated with our July 2017 Private Placement to common stock.

Income tax provision for the first quarter ended March 31, 2019 was $298,000 as compared to an income tax provision of $250,000 for the first quarter ended March 31, 2018.

Net loss for the first quarter ended March 31, 2019 was $12,660,000 as compared to net loss of $2,308,000 for the three months ended March 31, 2018. The primary reason for the increase in net loss was the increase of $12,966,000 in non-cash equity-based compensation expense.

EBITDA (earnings before interest, income taxes, depreciation and amortization) as adjusted to remove the effect of equity-based compensation expense, the change in the fair value of the warrant derivatives and non-cash loss on extinguishment of debt or “Adjusted EBITDA,” increased 58.4% to $2,407,000 for the quarter ended March 31, 2019, compared to $1,520,000 in the same period last year.

Non-GAAP Financial Measure – Adjusted EBITDA

This news release includes information on Adjusted EBITDA, which is a non-GAAP financial measure as defined by SEC Regulation G. Management believes that Adjusted EBITDA, when viewed with our results under GAAP and the accompanying reconciliations, provides useful information about our period-over-period growth. Adjusted EBITDA is presented because management believes it provides additional information with respect to the performance of our fundamental business activities and is also frequently used by securities analysts, investors and other interested parties in the evaluation of comparable companies. We also rely on Adjusted EBITDA as a primary measure to review and assess the operating performance of our company and our management team.

Adjusted EBITDA is a non-GAAP financial measure. We calculate adjusted EBITDA by taking net income (loss), and adding back the expenses related to interest, income taxes, depreciation, amortization, stock-based compensation expense, change in the fair value of the warrant derivative, non-cash impairment loss and debt extinguishment gain or loss, as each of those elements are calculated in accordance with GAAP. Adjusted EBITDA should not be construed as a substitute for net income (loss) (as determined in accordance with GAAP) for the purpose of analyzing our operating performance or financial position, as Adjusted EBITDA is not defined by GAAP.

BALANCE SHEET HIGHLIGHTS:

Cash & cash equivalents were $2,540,000 at March 31, 2019 verses $2,879,000 at December 31, 2018

Total assets were $142,997,000 at March 31, 2019 verses $75,973,000 at December 31, 2018

Total liabilities were $95,379,000 at March 31, 2019 verses $52,998,000 at December 31, 2018

Total stockholders’ equity was $47,618,000 at March 31, 2019 verses $22,975,000 at December 31, 2018

 The Consumer Goods sector company, Youngevity International noticed change of 3.12% to $6.61 along volume of 68277 shares in recent session compared to an average volume of 107.49K. The stock observed return of 5.09% in 5 days trading activity. The stock was at 20.18% over one month performance. YGYI’s shares are at -14.82% for the quarter and driving a 68.62% return over the course of the past year and is now at 15.56% since this point in 2018. 

 The average volatility for the week at 5.38% and for month was at 4.55%. There are 28.55M shares outstanding and 12.47M shares are floated in market. Right now the stock beta is 0.48. 

Leave a Reply

Your email address will not be published. Required fields are marked *