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Company added new leaders, distributors and customers at record pace each month during 2014.
August 14, 2014
3 Min Read
ForeverGreen Worldwide Corp. (OTCBB:FVRG), a leading provider of nutritional foods and other healthy products, 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, Utah
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:
Sales increased to $14,127,840 from $4,007,611 for Q2 2013, a 253 percent increase
Gross profit rose to $11,233,332 compared to $2,852,371 during Q2 2013, a 294 percent increase
Gross profit margins increased to 79.5 percent versus 71.1 percent during the comparable quarter during 2013
Operating income was $412,360 compared to $92,653, a 345 percent 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 percent in 2013 to 24 percent in 2014
Interest expense decreased to $70,407 or 0.05 percent of sales compared to $92,995 or 2.3 percent of sales during Q2 2013
Highlights for six months, ending June 30, 2014, included:
Sales increased to $24,664,242 versus $6,702,089, a 268 percent increase
Gross profit rose to $19,210,729 from $4,707,519, a 308 percent increase
Gross profit margins increased to 77.9 percent compared to 70.2 percent 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 Dec. 31, 2013
Total liabilities increased nominally to $6,357,005 from $6,301,037 on Dec. 31, 2013
“Total operating expenses for the quarter, excluding sales and marketing, declined from 31.9 percent in 2013 to 24.0 percent 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 percent of sales compared to $1.2 million or 28.9 percent 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 percent increase in sales over the corresponding quarter in 2013, solidly within the previously announced guidance of $13 to 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 to 18 months our operating margins will improve to 12 to 15 percent and our net margins will increase to 7 to 9 percent 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 to 50 million, anticipating net margins of 4 to 7 percent. We will continue to develop ForeverGreen into one of the largest and most diversified global companies in our industry.”
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