RBC Life Sciences, Inc., together with its subsidiaries, engages in the marketing and distribution of nutritional supplements and personal care products in the United States, Canada, South Korea, and Japan. It operates in two segments, Nutritional Products and Medical Products. The Nutritional Products segment offers a line of approximately 75 nutritional supplements and personal care products, including herbs, vitamins, and minerals, as well as natural skin, hair, and body care products under the RBC Life Sciences brand. It markets these products in four categories: wellness products, weight loss products, fitness products, and skin care products. This segment markets its products through a network of independent distributors, as well as through licensing arrangements with third parties. The Medical Products segment markets a line of approximately 28 wound care and oncology products under the MPM Medical brand throughout the United States. The wound care products are for the treatment and healing of wounds, such as pressure ulcers, leg ulcers, cuts, burns, and abrasions. These products include wound and skin cleansers, wound dressings, a moisture barrier cream, and hydrogel wound dressing with Lidocaine. The oncology products are designed to reduce destruction to skin and tissue caused by radiation, and to reduce pain and itching caused by radiation reactions in the skin and the internal mucosa. This segment distributes these products to hospitals, nursing homes, clinics, and pharmacies through medical/surgical supply dealers and pharmaceutical distributors.
1. Rapidly Growing Earnings - RBCL had record EPS of $0.037 in Q3, the most recent quarter. Given their backlog, 2008 likely will produce record annual earnings. 2007 earnings were a huge improvement over 2006 ($0.08 in 2007 vs. $0.02 in 2006). They have a very strong trend of improvement in earnings over a long period of time and I expect that trend to continue.
2. Huge Backlog - Backlog is $8.7M for their CCI account in the most recent quarter which is the second highest level in history. Also, the backlog only represents a portion of their sales going forward. They have GM of 47.5% so additional sales drop rapidly to the bottom line.
3. Rapidly Growing Medical Sales - Medical sales jumped 42% year-over-year and looks like it will continue. At the end of March they announced an expansion of their medical segment into Latin America. They also announce in February that they would begin selling their products in Kroger. http://investorshub.advfn.com/boards/read_msg.aspx?message_id=28065107 http://investorshub.advfn.com/boards/read_msg.aspx?message_id=26926765
4. Expanding Nutritional Sales - Nutritional sales increased 23.5% in the most recent quarter due to international expansion. The company has embarked on some new initiatives to expand their US and Canadian nutritional sales.
5. Strong Balance Sheet - RBCL has a book value of $0.44 which includes $0.23 in cash. That puts them in a strong position financially to continue growing.
6. Recession Resistant Business - Their business is recession resistant which is a strong plus in this economic environment.
Historical Financial Information
|Quarter ||Revenue ||Diluted EPS |
|Q3'09 ||$6.49M ||-$0.007 |
|Q2'09 ||$6.76M ||$0.012 |
|Q1'09 ||$6.02M ||-$0.008 |
|Q4'08 ||$7.25M || * $0.006 |
|Q3'08 || $9.93M || $0.037 |
|Q2'08 || $6.89M ||+ $0.012 |
|Q1'08 ||$6.35M ||$0.016 |
|Q4'07 || $6.63M ||x $0.008 |
|Q3'07 ||$7.86M ||$0.029 |
|Q2'07 ||$7.15M || $0.023 |
|Q1'07 ||$5.39M ||$0.015 |
|Q4'06 ||$5.28M ||$0.005 |
|Q3'06 || $5.40M ||$0.004 |
|Q2'06 || $6.20M ||$0.013 |
|Q1'06 || $4.81M || -$0.002 |
|Q4'05 ||$4.95M || $0.003 |
|Q3'05 ||$4.91M || $0.007 |
|Q2'05 || $5.36M || $0.018 |
|Q1'05 ||$4.14M ||-$0.000 |
|Q4'04 ||$5.24M ||$0.014 |
|Q3'04 ||$4.07M ||$0.001 |
|Q2'04 ||$4.72M ||$0.007 |
|Q1'04 ||$4.24M ||$0.004 |
* Q4'08 results had unusually high tax at 55.2% vs. 39.6% for the entire year. If the average tax rate had applied they would have had EPS of $0.008.
+ Q2'08 EPS was impacted by some one-time items. They incurred expenses for an event to train/motivate their sales associates and also had expenses for renovations on their headquarters' building. They
didn't quantify the costs for these one time items but certainly EPS would have been higher without them. I suspect the EPS impact was on the order of $0.008/share. Also they had some shipping delays
that impacted Q2. Without these one-time items the Q2 report would have been much better.
x Without a one-time write-off they would have made $0.023/share. See the following post for details:
Q4'08 - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=35859247
Q3'08 - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=33448261
Q2'08 - http://investorshub.advfn.com/boards/read_msg.aspx?message_id=31228787
Q1'08 - http://investorshub.advfn.com/boards/read_msg.asp?message_id=29030527
Q4'07 - http://investorshub.advfn.com/boards/read_msg.asp?message_id=27391526
Q3'07 - http://investorshub.advfn.com/boards/read_msg.asp?message_id=25632255