Close

Welcome back to Stockhouse
Member Sign In

Email or Username:
Password:
Close

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

Enter your email address:
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

ForeverGreen Worldwide Announces Q2 2014 Results

FVRG

ForeverGreen Worldwide Corporation (OTCBB:FVRG), a leading provider of nutritional foods and other healthy products, today announced Q2 2014 earnings. The quarter ended June 30, 2014.

Recent Company Highlights:

  • New leaders, distributors and customers added at record pace each month during 2014
  • Company achieved fifth consecutive quarter of operating profitability and second consecutive quarter of growth in operating and net income
  • Sales increased each quarter for the last 5 quarters
  • Company actively shipped product in 174 countries, up from just 150 at end of 2013
  • Company added new product, SolarStrips, to product portfolio
  • Company expanded to new corporate headquarters in Pleasant Grove, UT
  • Company met or exceeded monthly targets necessary to remain on target for the increased company guidance of $41-50 million of revenue during 2014

Highlights for Q2 2014 included:

  • Sales increased to $14,127,840 from $4,007,611 for Q2 2013, a 253% increase
  • Gross profit rose to $11,233,332 compared to $2,852,371 during Q2 2013, a 294% increase
  • Gross profit margins increased to 79.5% versus 71.1% during the comparable quarter during 2013
  • Operating income was $412,360 compared to $92,653, a 345% increase
  • Net income totaled $454,856 or $0.02 EPS versus a net loss of $5,383
  • Operating expenses excluding sales and marketing declined as a percentage of revenue from 31.9% in 2013 to 24% in 2014
  • Interest expense decreased to $70,407 or 0.05% of sales compared to $92,995 or 2.3% of sales during Q2 2013
 

ForeverGreen Revenue/Income Progression

                               
            Revenue       % Growth           Operating Income       Net Income
            ($ Millions)       (Q vs. Q)           ($ Thousands)       ($ Thousands)
                                         

1Q 2013

          2.7                   (96)       (211)

2Q 2013

          4.0       48.7%           93       (5)

3Q 2013

          4.8       19.6%           302       327

4Q 2013

          6.3       30.6%           84       7

1Q 2014

          10.5       68.3%           267       181

2Q 2014

          14.1       34.3%           412       455
 

Highlights for six months, ending June 30, 2014, included:

  • Sales increased to $24,664,242 versus $6,702,089, a 268% increase
  • Gross profit rose to $19,210,729 from $4,707,519, a 308% increase
  • Gross profit margins increased to 77.9% compared to 70.2% for 1H 2013
  • Operating income increased to $679,361 versus a net loss of $3,039
  • Net income totaled $635,907 or $0.03 EPS as compared to a net loss of $216,839 during 1H 2013
  • Interest expense decreased to $145,258 compared to $209,374 during the first six months of 2013
  • Total assets increased to $5,375,883 from $2,699,519 on December 31, 2013
  • Total liabilities increased nominally to $6,357,005 from $6,301,037 on December 31, 2013

“Total operating expenses for the quarter, excluding sales and marketing, declined from 31.9% in 2013 to 24.0% in 2014,” said Allen Davis, COO. “Primarily, this was due to an increased awareness of expense management. Cost of goods sold increased to $2.9 million or 20.5% of sales compared to $1.2 million or 28.9% of sales. This was largely a result of optimizing pricing with our key vendors and change in product mix.”

CFO Jack Eldridge added, “We experienced a 253% increase in sales over the corresponding quarter in 2013, solidly within the previously announced guidance of $13-15 million we issued for the quarter. Gross margins, operating margins and net profit margins all continue to improve. We expect our net operating margins and our net profit margins to continue to increase with logistical improvements and economies of scale. We believe during the next 12-18 months our operating margins will improve to 12-15% and our net margins will increase to 7-9% as we continue to benefit from overall efficiencies and lower COGS. Several non-recurring costs will be reduced as we move into the second half of the year. We anticipate solid cash flow each quarter. ForeverGreen currently has enough tangible assets to cover its current liabilities and has improved its financial health substantially over the last year. We have achieved several of our 2014 goals already, including the introduction of a new product, SolarStrips. We remain on track to meet or exceed our previously announced revenue guidance of $41-50 million, anticipating net margins of 4-7%. We will continue to develop ForeverGreen into one of the largest and most diversified global companies in our industry. We look forward to discussing our progress on the conference call Tuesday.”

For a full earnings report, please view our entire filing at www.sec.gov.

ForeverGreen Worldwide Corporation develops, manufactures and distributes an expansive line of all natural whole foods and products to North America, Australia, Europe, Asia and South America, including their new global offerings, PowerStrips and SolarStrips. They also offer Azul and FrequenSea™ whole-food beverages with industry exclusive Marine Phytoplankton, the Versativa line of hemp-based whole-food products, Immune Support, Weight management products, Pulse-8 powdered L-arginine formula, TRUessence™ Essential Oils and Apothecary, 24Karat Chocolate® and an entire catalog of meals, snacks, household cleaners and personal care products.
http://www.forevergreen.org

Forward-Looking Statement

This press release contains certain forward-looking statements. Investors are cautioned that certain statements in this release are "forward-looking statements" and involve both known and unknown risks, uncertainties and other factors. Such uncertainties include among others, certain risks associated with the operation of the company described above. The company's actual results could differ materially from expected results.


Rate this press release
3 stars
v
Usefulness

Clarity

Credibility
Add to favourites icon Add to favourites