Record growth is shown with the Quarter 3 reports for Youngevity International. Read to get some the details for how this company is scaling to serve it’s international customer base.
"We are excited to report record revenue for the third quarter 2016. We continue to see improved sales and customer growth in the United States and our international markets," stated Steve Wallach, Chief Executive Officer of Youngevity International. He continued, "I was proud to see the significant improvements derived from our coffee segment as this business continues to scale."
" The third quarter typically represents a slower selling season, however, our diversified revenue model was able to deliver record quarterly revenue to our top line," said Dave Briskie, President and Chief Financial Officer of Youngevity International. He continued, "We were pleased to see our distributors evolving their sales organizations toward broader based consumption through our diversified platform of products and services."
About the company -
Youngevity International, Inc. (OTCQX: YGYI) is a global direct marketer of a diversified portfolio of wholesome products and consumer services. The company operates multiple subsidiaries throughout the world including a vertically-integrated coffee operation that serves, on a "field to cup" basis, gourmet coffees to the commercial, retail and direct sales channels. The Company was formed after the merger of Youngevity Essential Life Sciences and Javalution Coffee Company in the summer of 2011.
Here are the highlights from Quarter 3 earnings data -
Revenues increased 5.4% over the prior year period to $43.5 million.
Gross Profit increased 5.3% to $26.4 million as compared to the prior year period.
Coffee Segment records significant improvement in gross profit and operating margins.
For the three months ended September 30, 2016, total revenue increased 5.4% to $43.5 million as compared to $41.3 million for the three months ended September 30, 2015. During the three months ended September 30, 2016, the company derived approximately 89% of revenue from direct sales and approximately 11% of revenue from commercial coffee sales.
Gross profit for the third quarter increased approximately 5.3% to $26.4 million as compared to $25.0 million for the three months ended September 30, 2015. Gross profit in the commercial coffee segment improved, primarily due to increased margins in the green coffee business.
For the three months ended September 30, 2016, company operating expenses increased approximately 7.6% to $25.8 million as compared to $24.0 million for the three months ended September 30, 2015. Sales and marketing expenses for the three months ending September 30, 2016 increased 34.0% to $3.2 million from $2.4 million for the three months ended September 30, 2015, primarily due to expenses related to the distributor annual convention held in the current quarter and increases in marketing related wages and expenses and customer service labor costs.
General and administrative expense increased 7.0% to $4.5 million compared to the same period in the prior year, primarily due to increases in costs related to the company's international expansion, employee compensation and labor costs, amortization costs, computer related costs, travel costs, offset by a decrease in non-cash expense of $253,000 as compared to the same period last year. In addition, the contingent liability revaluation resulted in a benefit of $315,000 in the current quarter compared to an expense of $120,000 in the same period last year.
For the three months ended September 30, 2016, total other expense increased by $545,000 to $577,000 as compared to $32,000 for the three months ended September 30, 2015 primarily due to the change in fair value of the warrant derivative liability benefit from $1.1 million in 2015 to $369,000 for the three months ended September 30, 2016. Net interest expense decreased by $155,000 to $946,000 as compared to $1.1 million for the same period last year.
For the third quarter ended September 30, 2016, the Company reported a net income of $67,000 as compared to net income of $416,000 for the same period last year.