Stock Report for LifeVantage Corp. (LFVN)
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    Stock Alert for LifeVantage Corp. (LFVN)

    LifeVantage Corp. (LFVN) is a science-based company engaged in the identification, research, development, manufacture and distribution of an advanced nutraceutical dietary supplement, Protandim, and an anti-aging skin care product, LiveVantage TrueScience, to meet important health and wellness needs. The Company is focusing its ongoing research efforts on oxidative stress solutions, particularly the activation of Nuclear factor (erythroid-derived 2)-like 2, also known as Nrf2, as it relates to cardiovascular, central nervous system, inflammatory and metabolic diseases, and other health-related disorders. LFVN sells its products in the United States, Japan, Mexico and Canada, through a network of independent distributors, preferred, retail and direct customers.

    Share Statistics (08-Feb-12) FY2010 FY2011 % Chg Q32010 Q32011 % Chg
    Symbol LFVN Revenue, $Mn 11.48 38.92 239.0% 6.44 20.08 211.8%
    Current price $1.87 Gross marg. 83.4% 84.8% 1.7% 84.2% 85.3% 1.3%
    52wk Range: $1.69-$1.92 Oper. margin 9.5% 17.1%
    Avg Vol (3m): n/a Net margin -96.3% -130.5% 35.5% 11.2% 18.5% 65.2%
    Market Cap. 185.68M
    Shares Outstanding 99.30M EPS, $ -0.19 -0.69 263.2% 0.01 0.03 200.0%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares in LifeVantage Corp. (LFVN) jumped as much as 17% Wednesday, continuing on its winning streak for the fourth straight day.  Over 1.78 million shares have traded hands during the session, versus the 30-day average volume of about over 173 K.

    LFVN shares have gained 29.9% in the last five days; 37.5% in the last month; and 175.0% year-to-date.

    LFVN shares spiked last month as investors welcomed the news of the Company’s addition of new directors to its board at a January 10 annual shareholders meeting. The Company announced that four new board members were elected and the board immediately held a meeting after the shareholders meeting was completed. Woody Spedden was appointed as chairman of the board at that meeting.

    Having held leadership positions at successful companies including Apple, VISA, Coca-Cola, Textron and Hewlett-Packard, the new directors are seen to bring a wealth of corporate experience and expertise in areas that are critically important to the LFVN’s growth and long-term success.

    Douglas C. Robinson, CEO of LFVN, commented: “Each of our new directors brings a unique and valuable perspective that will be instrumental as we grow our business through distributor growth, geographic expansion, and the strategic introduction of new and complementary products.

    LFVN’s board now consists of nine members, six of whom are independent.

    Also last month, the Company announced that it had received the expected approval from warrant holders of its tender offer to modify certain outstanding warrants.  With the warrant modification and the expiration of certain other warrants in March and April 2012, LFVN will be removing all derivative warrant liabilities from its balance sheet and eliminating the quarterly changes in fair value of these warrants from its income statement. With these changes, the Company believes that its financial statements will more closely reflect its operating performance.

    The Company is expected to release its fiscal 2012 second quarter financial results on February 14, 2012, after the closing bell.

    LFVN added $0.23, or 14.02%, to close Wednesday trade at $1.87.

    Source: http://www.lifevantage.com/company/news-center/press-releases/

    Financial Summary

    LFVN reported net revenue of $20.1 million for the first fiscal quarter ended September 30, 2011, a record increase of 214% from $6.4 million reported in comparable period of the prior year.  On a sequential basis, net revenue increased 34% from the $15.0 million reported for the fiscal 2011 fourth quarter ended June 30, 2011.

    Gross profit for the latest reported quarter rose to $17.1 million compared to $5.4 million for the same period last year, delivering a gross margin of 85%, compared to 84% for the same period last year

    Net income for the quarter came in at $3.7 million, compared to $0.7 million in the same period of the prior year and a net loss of $47.2 million in the prior quarter. According to the Company, the result reflects the increase in revenue, leverage of operating expenses and a decrease in interest expense due to the shareholders’ conversion of convertible debentures and reduced derivative expenses.

    LFVN’s cash balance at September 30, 2011, was $9.4 million, an increase from $6.4 million at year end fiscal 2011, attributable to strong revenue growth and operating profits. The Company generated $3.3 million of cash flow from operations in the first quarter of fiscal 2012 compared to $0.6 million in the first quarter of fiscal 2011.

    Looking forward to fiscal 2012, the Company expects to report revenue in a range of $95 million to $105 million, up from its previous guidance of $80 million to $90 million. Operating income is expected to be in a range of $11.4 million to $14.7 million, ahead of its previous guidance of $8.0 million to $9.5 million.

    Source: http://www.lifevantage.com/company/news-center/press-releases/lifevantage-announces-record-first-quarter-fiscal-year-2012-results/

    Financial Strength (08-Feb-2012)

    Company

    Industry

    Sector

    S&P 500

    Quick Ratio (MRQ) 0.84 1.94 1.82 0.59
    Current Ratio (MRQ) 1.04 2.49 2.32 0.92
    LT Debt to Equity (MRQ) 10.42 29.63 95.13
    Total Debt to Equity (MRQ) 16.36 39.72 134.18
    Interest Coverage (TTM) -0.43 0.07 2.53 27.70

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    LFVN is above the upper Bollinger Band, implying that it is currently extended from its recent trend. Be aware, however, that a cross outside of the Bollinger Bands can sometimes be a signal of trend strength and not, necessarily, trend reversal.

    The MACD for LFVN currently indicates a strong bullish signal for two reasons. First, the MACD is above the signal line, a 9-day moving average. Second, the MACD is above 0, which implies that the underlying moving averages are trending higher.

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Feb08-2011 symbol Share, $ $ Mn 2011 2012 2011 2012
    Inyx Inc. IYXI 0.0012 63.73K n/a n/a n/a n/a
    Prestige Brands Holdings Inc. PBH 13.46 676.38M 14.02 11.70 1.62 1.21
    Drug Related Products Median       18.61 n/a 1.05 n/a
    Lifevantage Corp. LFVN 1.87 185.68M n/a n/a n/a n/a

    Source: Thomson Financial

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