Stock Alert for LifeVantage Corp. (LFVN)
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    Stock Report 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 (14-Mar-11) FY2010 FY2011 % Chg Q42010 Q42011 % Chg
    Symbol LFVN Revenue, $Mn 11.48 38.92 239.0% 7.46 25.28 238.9%
    Current price $2.95 Gross marg. 83.4% 84.8% 1.7% 84.0% 85.4% 1.7%
    52wk Range: $0.68-$3.98 Oper. margin 9.5% 16.9%
    Avg Vol (3m): n/a Net margin -96.3% -130.5% 35.5% 73.1% 34.7% -52.5%
    Market Cap. 299.40M
    Shares Outstanding 100.47M EPS, $ -0.19 0.69 263.2% 0.06 0.07 16.7%

    Source: Reuters.com, SEC Filings.

    Investment Highlights

    Shares in nutraceutical maker LifeVantage Corp. (LFVN) broke out to a new 52 week high of $3.98 Wednesday, only to drop 14.10% to $2.95 at the close. Over 7.60 million shares traded, topping the 30-day average of 806K.

    Shares of LFVN have risen 19.6% in the last five days; 66.0% in the last month; and 304.8% year-to-date.

    LFVN in February announced its results for the second quarter ended December 31, 2011, highlighting record increases in net revenue and operating income.

    Net revenue for the quarter was $25.3 million, up 239% from $7.5 million in the comparable quarter of the previous year.  On a sequential quarter basis, net revenue rose 26% from the $20.1 million reported for the company’s 2012 first fiscal quarter ended September 30, 2011.

    LFVN reported that its operating income improved to $4.3 million for the second fiscal quarter, compared to $0.6 million in the same period last year and $3.4 million in the first fiscal quarter, representing its sixth consecutive quarter of achieving operating income. Operating income margin came in at 16.9% in the second fiscal quarter, compared to 8.2% in the same period last year and 17.1% in the first fiscal quarter.

    Douglas Robinson, president and CEO of LFVN, made the following statements: “Our record second fiscal quarter revenue and operating income, combined with the doubling of our operating margins, underscore our ability to achieve leverage in our business while making strategic investments. We plan to continue to strengthen our infrastructure by adding headcount for all areas of our business and increasing our marketing investments as we build the necessary platform to continue our profitable organic growth.”

    The Company ended the quarter with a cash balance of $13.5 million, an increase from $6.4 million at year end fiscal 2011, attributable to strong revenue growth and operating profits. Cash flow from operations in the second quarter was $4.7 million, compared to $0.5 million in the second quarter of fiscal 2011.

    Further boosting investor confidence, LFVN upped its guidance for fiscal 2012, expecting revenue in a range of $105 million to $115 million.  The Company previously expected revenue of between $95 million to $105 million.

    LFVN also now expects to generate operating income for the fiscal year in a range of $13.7 million to $17.3 million, up from its previous guidance of $11.4 million to $14.7 million, and an operating margin of 13% to 15%, up from its previous expectation of 12% to 14%.

    Source:

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

    Financial Strength (14-Mar-12)

    Company

    Industry

    Sector

    Quick Ratio (MRQ) 1.17 1.30 1.41
    Current Ratio (MRQ) 1.36 1.58 1.74
    LT Debt to Equity (MRQ) 0.17 12.67 27.32
    Total Debt to Equity (MRQ) 4.82 18.23 36.28
    Interest Coverage (TTM) -0.11 0.27 2.34

    Source: Reuters.com, SEC Filings.

    Technical Analysis

    Source: http://stockcharts.com

    Comparative Analysis

    Company Name Ticker Price per Mrkt. Cap. P/E P/S
    Mar14-2012 symbol Share, $ $ Mn 2011 2012 2011 2012
    Prestige Brands Holdings Inc. PBH 17.25 868.34M 17.97 14.26 2.00 1.44
    Inyx Inc. IYXI 0.0010 53.11K n/a n/a n/a n/a
    Drug Related Products Median       18.99 n/a 1.24 n/a
    Lifevantage Corp. LFVN 2.95 295.38M n/a n/a n/a n/a

    Source: Thomson Financial

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