|By Marketwired .||
|May 14, 2014 11:15 AM EDT||
ATLANTA, GA -- (Marketwired) -- 05/14/14 -- Liberator, Inc. (OTCQB: LUVU), the manufacturer of Liberator®, a leading brand in the emerging sexual wellness category, today reported financial and operating results for its third fiscal quarter and nine months of fiscal 2014 (year ending June 30, 2014.)
Third Quarter and Nine Month Highlights:
- Adjusted EBITDA* of $490,000 for the nine months of fiscal 2014, a 34% increase from the prior year.
- Record revenue for the nine months of $11.5 million, a 6% increase from the prior year.
- Revenue of $3.9 million for the third quarter, an 11% increase from the prior year.
- A net loss of $104,000 for the third quarter compared to a net loss of $179,000 in the prior year.
Louis S. Friedman, the Company's President and Chief Executive Officer said, "During our third fiscal quarter, Liberator continued to take market share in the sexual wellbeing space. For the nine months, we achieved record revenues; 6% over the prior year despite a tougher than anticipated holiday selling season and the impact of weather on our customers' businesses. Additionally, we increased adjusted EBITDA* 34% from the prior year". Mr. Friedman added, "In our international markets, we are building relationships with wholesalers and distributors and the order volume is accelerating nicely. Smaller sized vacuum compressed packages cut our international ocean freight cost by 50% and we're now better sized for retail shelves. As we enter our last fiscal quarter, we remain focused on our core value-driven strategies. We believe the key to unlocking the value of the Company is to transform our packaging and web presentation for mainstream stores and audiences. Liberator has tremendous intrinsic value; in the lifestyle adult market there are only a handful of brands and brand categories recognized by consumers and we believe Liberator is one of them."
Revenue for the quarter ended March 31, 2014 total $3.9 million compared to $3.6 million in the same quarter last year. Revenues for the nine months ended March 31, 2014 were $11.5 million compared to $10.8 million last year. Increases were primarily due to higher sales through our direct-to-consumer channel.
In the third quarter of fiscal 2014, gross profit was $946,000 (24% of sales), compared to $999,000 (28% of sales) in the prior year's quarter. For the first nine months of fiscal 2014, gross profit was $3.1 million (27% of sales) compared to $3.2 million (30% of sales) in last year's period. The gross margin decreases were primarily the result of higher labor and raw material costs.
Selling, General and Administrative
For the third quarter of fiscal 2014, SG&A expenses were $0.9 million, or 24% of sales, compared to $1 million, or 28% of sales, in the third quarter of last year. For the current nine-month period, SG&A expenses were $2.9 million (25% of sales), compared to $2.9 million (or 27% of sales) last year.
Net loss was $104,000 in the third quarter of fiscal 2014, a decrease from $179,000 in the prior year third quarter. For the nine months ended March 31, 2014, the net loss was $36,000, a decrease from $69,000 last year.
Use of Non-GAAP Measure - Adjusted EBITDA*
Liberator management evaluates and makes operating decisions using various financial metrics. In addition to the Company's GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. While Adjusted EBITDA is not a measure of performance in accordance with GAAP, management believes that this non-GAAP measure provides useful information about the Company's operating results. The table below provides a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure.
Adjusted EBITDA is defined as net income before interest, income taxes, depreciation and amortization expenses, excluding, when applicable, stock-based compensation expense and common stock issued for services.
Reconciliation of Adjusted EBITDA* to Net Income
Computation of Adjusted EBITDA* (unaudited) Three Months Ended Nine Months Ended March 31 March 31, ---------------------- ---------------------- 2014 2013 2014 2013 ---------- ---------- ---------- ---------- Net loss $ (104,261) $ (179,265) $ (36,091) $ (69,080) Interest (net) 104,123 102,737 303,216 271,756 Income taxes -- -- -- -- Depreciation & amortization 59,792 44,561 174,762 133,524 --------- Stock based compensation 12,039 9,610 47,752 29,219 ---------- ---------- ---------- ---------- Adjusted EBITDA $ 71,663 $ 22,357 $ 489,639 $ 365,419
About Liberator, Inc.
Liberator, Inc. is a vertically integrated USA-based manufacturer, marketer and multi-channel lifestyle retailer of Liberator® branded products sold through retail stores, mass merchants, and internet retailers worldwide. Established with the conviction that sensual pleasure and fulfillment are essential to a well-lived life, Liberator Bedroom Adventure Gear® empowers exploration, fantasy and the communication of desire for persons of all shapes, sizes and abilities. Products include Liberator shapes, sex furniture, positioning systems, pleasure objects, and sensual / intimate accessories. As a by-product from the manufacturing of Liberator shapes, the Company produces Jaxx, a line of contemporary furniture, which it sells to many of the same mass-market wholesale customers that purchase Liberator Bedroom Adventure Gear. Liberator, Inc. and its operating company, OneUp Innovations, Inc., are headquartered in a 140,000 square foot facility in a suburb of Atlanta, Georgia and have over 120 employees.
For comprehensive investor relations material, including fact sheets, videos, and research reports on Liberator and emerging sexual wellbeing trends visit the Company's investor relations web site at www.invest-in-LUVU-Liberator.com.
Certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's products in the market; the Company's success in obtaining new customers; the Company's success in product development; the Company's ability to execute its business model and strategic plans; the Company's success in integrating acquired entities and assets, and all the risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission, including the financial statements and related information contained in the Company's Annual Report on Form 10-K and interim Quarterly Reports on Form 10-Q. Examples of forward-looking statements in this release include statements related to new products, anticipated revenue and profitability. The Company assumes no obligation to update the cautionary information in this release.
Chief Financial Officer
Jul. 7, 2015 01:30 PM EDT Reads: 2,710
Jul. 7, 2015 01:30 PM EDT Reads: 2,236
Jul. 7, 2015 01:30 PM EDT Reads: 2,562
Jul. 7, 2015 01:15 PM EDT Reads: 1,406
SYS-CON Events announced today that Solgenia will exhibit at SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Solgenia is the global market leader in Cloud Collaboration and Cloud Infrastructure software solutions. Designed to “Bridge the Gap” between Personal and Professional Social, Mobile and Cloud user experiences, our solutions help large and medium-sized organizations dramatically improve produc...
Jul. 7, 2015 01:00 PM EDT Reads: 2,216
DevOps tends to focus on the relationship between Dev and Ops, putting an emphasis on the ops and application infrastructure. But that’s changing with microservices architectures. In her session at DevOps Summit, Lori MacVittie, Evangelist for F5 Networks, will focus on how microservices are changing the underlying architectures needed to scale, secure and deliver applications based on highly distributed (micro) services and why that means an expansion into “the network” for DevOps.
Jul. 7, 2015 01:00 PM EDT Reads: 3,110
Live Webinar with 451 Research Analyst Peter Christy. Join us on Wednesday July 22, 2015, at 10 am PT / 1 pm ET In a world where users are on the Internet and the applications are in the cloud, how do you maintain your historic SLA with your users? Peter Christy, Research Director, Networks at 451 Research, will discuss this new network paradigm, one in which there is no LAN and no WAN, and discuss what users and network administrators gain and give up when migrating to the agile world of clo...
Jul. 7, 2015 01:00 PM EDT Reads: 1,776
Jul. 7, 2015 12:45 PM EDT Reads: 2,588
Connected things, systems and people can provide information to other things, systems and people and initiate actions for each other that result in new service possibilities. By taking a look at the impact of Internet of Things when it transitions to a highly connected services marketplace we can understand how connecting the right “things” and leveraging the right partners can provide enormous impact to your business’ growth and success. In her general session at @ThingsExpo, Esmeralda Swartz...
Jul. 7, 2015 12:45 PM EDT Reads: 1,656
"Plutora provides release and testing environment capabilities to the enterprise," explained Dalibor Siroky, Director and Co-founder of Plutora, in this SYS-CON.tv interview at @DevOpsSummit, held June 9-11, 2015, at the Javits Center in New York City.
Jul. 7, 2015 12:45 PM EDT Reads: 1,891
The 17th International Cloud Expo has announced that its Call for Papers is open. 17th International Cloud Expo, to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, brings together Cloud Computing, APM, APIs, Microservices, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding bu...
Jul. 7, 2015 12:30 PM EDT Reads: 1,932
The 5th International DevOps Summit, co-located with 17th International Cloud Expo – being held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the ...
Jul. 7, 2015 12:15 PM EDT Reads: 1,965
Jul. 7, 2015 12:15 PM EDT Reads: 2,417
The most often asked question post-DevOps introduction is: “How do I get started?” There’s plenty of information on why DevOps is valid and important, but many managers still struggle with simple basics for how to initiate a DevOps program in their business. They struggle with issues related to current organizational inertia, the lack of experience on Continuous Integration/Delivery, understanding where DevOps will affect revenue and budget, etc. In their session at DevOps Summit, JP Morgenthal...
Jul. 7, 2015 12:00 PM EDT Reads: 1,675
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading in...
Jul. 7, 2015 12:00 PM EDT Reads: 1,636