CVSL Reports First Quarter Results
Revenue Increases Six-fold Over Prior Year, Debt is Reduced
PR Newswire
DALLAS, May 15, 2014
DALLAS, May 15, 2014 /PRNewswire/ -- CVSL Inc. [OTC QX: CVSL] today reported financial results for the first quarter ending March 31, 2014.
For the quarter, CVSL's gross revenue was $26.7 million, compared to $4.3 million in the same quarter a year ago, more than a six-fold increase. During the quarter, CVSL also reduced debt and continued to integrate seven micro-enterprise companies into CVSL.
Late in the quarter the company launched a major new technology platform, including a new internal ERP software system to help manage business functions such as inventory, shipping and financial reporting within its companies, as well as a new state-of-the-art system to help its sales forces better serve their customers.
In the First Quarter the company paid down its existing lines of credit from $9.8 million to $8.4 million. CVSL sold a manufacturing building in Ohio for nearly $1.4 million and paid off its term debt entirely.
The company noted that costs related to its ongoing integration of its acquired companies, as well as work related to potential future acquisitions, is a significant cost category and that it believes both represent a crucial investment in CVSL's future growth.
CVSL said it continued to make good progress reducing excess inventory levels. Overall inventory balance at the end of the First Quarter was $1.2 million less than at the start of the quarter.
CVSL acquired its seventh micro-enterprise company during the quarter, signing a definitive agreement to acquire Uppercase Living on March 14. Salt Lake City-based Uppercase Living offers an extensive line of customizable vinyl expressions for display on walls. Its independent sales force sells throughout the United States.
Independent sales force members at the various CVSL companies earned $7 million in commissions and incentives during the quarter.
