DALLAS, Aug. 14, 2014 /PRNewswire/ -- CVSL Inc. (OTC QX: CVSL) today released its results for the quarter ended June 30, 2014.
"During the Second Quarter, we made steady progress in the strategy that we began with our first acquisition 15 months earlier, which is to strengthen the companies we acquire while laying the groundwork for future acquisitions," said CVSL Chairman John Rochon.
During the Second Quarter, CVSL filed a registration statement on Form S-1 with the U.S. Securities and Exchange Commission related to the proposed public offering of its common stock and applied to have its common stock listed on the NYSE MKT.
"We are building a large, diverse company from the ground up," said Mr. Rochon. "We want to bring future CVSL acquisitions onto a solid base. Shoring up that base is where we put most of our emphasis during the Second Quarter.
"We took important steps to reduce our overall risk. One of our top priorities was to eliminate CVSL's bank debt. I am delighted to say that we accomplished that crucial goal," said Mr. Rochon, noting that CVSL had about $8.5 million in bank debt at the beginning of 2014 and that the Company paid off its last remaining bank debt two weeks ago.
For the Second Quarter, CVSL reported a 19.5% increase in gross revenue compared to the Second Quarter of 2013. CVSL had gross revenue of $24.6 million and an operating loss of $4.1 million in the current quarter, compared to gross revenue of $20.6 million and an operating loss of $3.3 million in the Second Quarter of 2013. Gross revenue for the first six months of 2014 was $51.3 million, which is more than double that of the first half of last year.
Mr. Rochon said that, in addition to paying off bank debt, CVSL reduced inventory, monetized assets that weren't needed for the business, and continued to invest in systems and personnel to prepare for continued growth through acquisitions.
"Eliminating bank debt makes us a healthier company, better equipped to operate our businesses and make more acquisitions," said Mr. Rochon. "It gives us more freedom and flexibility to continue our growth," he added.
"The operating companies we acquired since March, 2013 needed improvements in varying degrees. We have used this time to make necessary repairs. Now we can better focus on the next acquisition opportunities," he said.
"We also have invested in new accounting and sales force systems. While some of these costs are capitalized, other costs are expensed in the period incurred. These expenditures affect short-term profitability, but we believe the benefits of these steps will last for many years," he noted.
CVSL (www.cvsl.us.com) is a growing group of micro-enterprise companies that connect social media networks into an ever-expanding virtual "community" of social commerce. CVSL companies currently include The Longaberger Company, a 40-year old maker of hand-crafted baskets and other home decor items; Your Inspiration At Home, an award-winning maker of hand-crafted spices and other gourmet food items from around the world; Project Home (formerly conducting business under the name Tomboy Tools), a direct seller of tools designed for women as well as home security systems; Agel Enterprises, a global seller of nutritional products in gel form as well as a skin care line sold under the Ageless brand, operating in 40 countries; Paperly, which offers a line of custom stationery and other personalized products; My Secret Kitchen, a U.K.-based seller of gourmet food products; and Uppercase Living, which offers an extensive line of customizable vinyl expressions for display on walls in the home. In addition, CVSL and Golden Girls, a purchaser of gold and tradable jewelry, have signed a definitive purchase agreement, which is subject to customary closing conditions.
Cautionary Note Regarding Forward-Looking Statements:
This press release contains forward-looking statements that involve risks and uncertainties. All statements other than statements of historical fact contained in this press release are forward-looking statements. We have attempted to identify forward-looking statements by terminology including "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," or "will" or the negative of these terms or other comparable terminology. Although we do not make forward-looking statements unless we believe we have a reasonable basis for doing so, we cannot guarantee their accuracy. Such statements include statements regarding our continued growth, and the benefits of the various steps taken. These statements are only expectations and involve known and unknown risks, uncertainties, and other factors including our ability to continue to grow as anticipated and the risks outlined under "Risk Factors" in our Annual Report on Form 10-K for our fiscal year ended December 31, 2013, our Quarterly Reports on Form 10-Q, including the Quarterly Report filed with the Securities and Exchange Commission for the quarter ended June 30, 2014, and those risks discussed in other documents we file with the Securities and Exchange Commission, which may cause our actual results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements to differ materially from expectations. Except as required by law, we undertake no obligation to update or revise publicly any of the forward-looking statements after the date of this press release to conform our statements to actual results or changed expectations.
SOURCE CVSL Inc.