The definition of cognitive dissonance...
SAN DIEGO, CA--(August 10, 2017) - Youngevity International, Inc. (NASDAQ: YGYI ), a leading omni-direct lifestyle company, today reported financial results for the second quarter and six months ended June 30, 2017.
Steve Wallach, CEO and Co-Founder of Youngevity stated, “We are encouraged to see our revenue and adjusted EBITDA bounce back from the levels achieved in the last two quarters. A 7.2% revenue increase over last quarter and a nearly $2 million improvement in adjusted EBITDA over the last quarter is certainly a move in the right direction. As our plans for international growth gain traction we anticipate a return to quarter over prior quarter growth.”
Youngevity President and CFO, Dave Briskie stated, “Following the fourth quarter of 2016 and the first quarter of 2017 which we felt were lackluster our executive team has refocused and increased its commitment toward driving consolidated revenue growth, strengthening our adjusted EBITDA, accelerating our international sales, and driving top line revenue growth for our coffee segment. In the second quarter, we made solid progress in each of these key metrics and we will be measuring our performance in these areas in the coming quarters with an expectation of continued progress for the remainder of 2017 and into 2018.”
SECOND QUARTER 2017 FINANCIAL RESULTS
For the three months ended June 30, 2017, our revenue decreased 2.3% to $41,527,000 as compared to $42,500,000 for the three months ended June 30, 2016. During the three months ended June 30, 2017, we derived approximately 86% of our revenue from our direct sales and approximately 14% of our revenue from our commercial coffee sales. Direct selling segment revenues decreased by $1,481,000 or 4.0% to $35,538,000 as compared to $37,019,000 for the three months ended June 30, 2016. Commercial coffee segment revenues increased by $508,000 or 9.3% to $5,989,000 for the three months ended June 30, 2017, as compared to $5,481,000 for the three months ended June 30, 2016. This increase was primarily attributed to increased revenues in our coffee roasting and green coffee business.
For the three months ended June 30, 2017, gross profit decreased approximately 5.2% to $24,102,000 as compared to $25,431,000 for the same period in the prior year. Overall gross profit as a percentage of revenues decreased to 58.0%, compared to 59.8% in the same period last year. This decrease was primarily as a result of increased direct costs which adversely impacted the commercial coffee segment gross margins.
