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Vestiage Reports Second Quarter 2014 ResultsNEWPORT BEACH, Calif. --(Business Wire)-- Vestiage™, Inc. ("VEST"), the "Healthy-Aging" Company announced today that it has released record financial results for its second quarter 2014. The Company owns both the RegiMEN™ and the Monterey Bay Nutraceuticals™ natural supplement lines in addition to other intellectual property in the healthy-aging arena. Overall gross revenue for the second quarter 2014 was $251,054, up 74% over the first quarter of 2014. Gross margins increased from 49% in the first quarter of 2014 to over 69% in the second quarter of 2014. Direct response revenue increased approximately 183% from the first quarter of 2014. Data from the direct response campaign revealed high retention rates relative to the norm for the category in the direct response industry. Scott Kimball, CEO of Vestiage, Inc. said, "We are starting to see the results of the marketing, advertising, and other initiatives show up in gross revenue. I believe that the most important metrics are the 74% overall sales increase from the first quarter of 2014, our 69% gross margin this quarter, up from 49% the first quarter of the year, the strength of our direct response campaign results, and lower quarterly operating expenses when you take out non-cash items. I think that implies some very good things for the future of our Company as we continue our efforts to scale revenue." The Company experienced 74% overall Company revenue growth from the first quarter of 2014 to the second quarter of 2014, led by a very strong 183% increase in direct response channel revenue quarter-to-quarter, and gross margin expansion from 49% to 69%. Adjusting for non-cash items, the Company lost $564,403 in the second quarter of 2014 versus $784,599 in the first quarter of 2014, an improvement of 28% or $220,000. Kimball stated, "At the end of the first quarter this year, we promised three things; increasing gross revenue, increasing gross margin, and a narrower adjusted net loss when adjusted for non-cash items. We delivered on all three of these. From the first quarter of 2014 to the second quarter of 2014, our gross margin expanded by 40%, our overall sales were up 74%, direct response revenue was up 183% and we were effective at controlling operating expenses. I was particularly pleased with the strong direct response customer retention data as that drives our customer lifetime value in the direct response channel and is an indication of what may happen in retail for the RegiMEN brand. We are experiencing strong retention and loyalty from our customers. To further increase our customer lifetime value we purchased our CRM system during the quarter and have engaged our digital partner to implement it. We have instituted other initiatives and programs that are specifically designed to maintain and increase customer retention. Long term, this will be very important for each of our brands." SECOND QUARTER 2014 ACCOMPLISHMENTS During the second quarter of 2014 the Company:
Direct Response Notes Direct response sales in the second quarter of 2014 increased 183% from the first quarter of 2014. As the direct response channel entered its 5th month during the quarter, the Company experienced a confirmation of Management's initial sense that the RegiMEN brand may have very high customer loyalty. Kimball said, "We are experiencing the beginnings of an anomaly that we refer to as a "fat tail" event, where the number of people that stay with you each month drops off much slower than the norm for the industry, making a bell curve look like it has a fat tail. Fat tail events are, by their nature, rare events. They're not normal. When they occur in our industry it's something to celebrate and drive resources towards, because it translates into higher customer lifetime value. Our strong retention is significant to the value of the RegiMEN brand." Retail Sales Notes Retail expansion is a key initiative for the Company for several reasons: First, retail revenue is more stable and less dependent upon costly media spend. Secondly, valuation multiples are, in general, believed to be higher for companies and brands with broad retail exposure in comparison to direct response only companies. Third, broad retail exposure can add credibility to the brand in the mind of consumers and others. The Company's overall footprint in retail grew slightly in the quarter. The quarter was a transition quarter for the retail channel as the Company replaced its previous head of retail sales and promoted Laura Stall to VP of National Sales. Since joining the Company, Ms. Stall has closed a national speciality retail account and secured commitments with a national grocery chain, a major distributor, and a "Mass" account all of which the Company expects to see result in purchase orders in the upcoming quarters. Kimball stated, "I'm pleased to say that Laura Stall is in the process of completing the paperwork and final approvals with national retailers, distributors, and others in the retail channel whom have committed to placing RegiMEN on their shelves over the next 2-3 quarters. We came into 2014 with a few hundred doors buying RegiMEN at retail, and we expect to leave 2014 with several thousand doors with the RegiMEN brand on shelves. This initial expansion success leads us to be optimistic about retail in general and potentially adding health food and drug categories to our distribution. We can show data that proves customers that take RegiMEN are very loyal, so we see continued upside for the brand in the retail channel." Outlook The opportunities for growth in RegiMEN sales for both direct response and retail are still very large as the Company is just beginning to expand the brand in both channels. Company Management points to several key elements of future growth:
Kimball stated, "In the next two quarters, I believe investors will see several announcements that Vestiage has received purchase orders from recognized retailers for RegiMEN and that the results of our television campaigns will also be begin to be recognized in revenue. The combined anticipated increase in retail and direct response revenue should result in the delivery of continued revenue growth barring any unforeseen occurrences. Over the next quarters, excluding any non-cash, non-recurring or special charges, I expect the Company to see improvement to EBITDA as well. RegiMEN is now moving into the top speciality retailers, a major national grocery chain and at least one Mass account. The opportunity for growth for Vestiage over the next quarters is likely to be a result of the expansion of the RegiMEN brand in both retail and direct response. We expect that Monterey Bay Nutraceuticals will be well received in both direct response and retail channels in 2015 and 2016. Beyond retail and direct response expansion we believe that RegiMEN may be able to enter a new channel in 2016 or 2017. As always, we continue to look for additional brands to add to the Vestiage family."
About Vestiage™ Vestiage™ (stock symbol "VEST") is a publicly traded healthy-aging company and can be seen at www.Vestiage.com. The Vestiage™ family of brands address the top "in demand" healthy-aging concerns of men and women. The Company offers premium branded science-based nutraceuticals to a premium consumer base through multiple channels. The Company is a sales, marketing, and distribution company specializing in bringing science-based products to the healthy-aging consumer. The Company utilizes key partners to integrate production, fulfillment, customer service, advertising, sales, media, marketing, distribution, new product development and acquisitions. Vestiage™ is focused on the use of the best ingredients from the ocean and earth, including cutting edge, patented, clinically proven ingredients to produce highly potent, elegantly formulated products. Using potency that matches the clinical results, and novel ingredient combinations, Vestiage™ creates and distributes nutraceuticals such as RegiMEN™ for men (www.RegiMENLife.com), multifunctional Monterey Bay Nutraceuticals™ line for women (www.MontereyBayNutra.com). Vestiage™ research is focused on extending the active period of a human life covering both the cognitive and physical realms. To learn more, visit the Company website www.Vestiage.com. As with many small, fast growing companies, our growth is highly dependent upon adequate funding for inventory, media, general overhead, professional fee's, technology, salaries and other expenses related to the business. Should we be unable in the future to obtain appropriate funding to pay for our operating expenses and media at current levels, our growth, and our financial stability, may be severely negatively impacted. The agreement with Media Funding Group (MFG) and the spending on effective media the Company contemplates from MFG is a key component and assumption underlying the expectations of management as to the growth of the Company in the future. If for any reason MFG does not buy media as expected in the quantities necessary, the Company would likely be materially negatively impacted. This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business. These forward-looking statements can be identified by the use of terms such as "believe," "expects," "plan," "intend," "may," "will," "should," "can," or "anticipates," or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause industry trends or our actual results to be materially different from any future results expressed or implied by these statements. Important factors that may cause our results to differ from these forward-looking statements include, but are not limited to: (i) changes in or new government regulations or increased enforcement of the same, (ii) unavailability of desirable acquisitions or inability to complete them, (iii) increased costs, including from increased raw material or energy prices, (iv) changes in general worldwide economic or political conditions, (v) adverse publicity or negative consumer perception regarding nutritional supplements, anti-aging or stem cell facial care products or stem cell technology in general, (vi) issues with obtaining raw materials of adequate quality or quantity, (vii) litigation and claims, including product liability, intellectual property and other types, (viii) disruptions from or following acquisitions including the loss of customers, (ix) increased competition, (x) slow or negative growth in the anti-aging or cosmetics, beauty, or nutritional supplement industry or the healthy foods or anti-aging channel, (xi) the loss of key personnel or the inability to manage our operations efficiently, (xii) problems with information management systems, manufacturing efficiencies and operations, (xiii) insurance coverage issues, (xiv) the volatility of the stock market generally and of our stock specifically, (xv) increases in the cost of borrowings or unavailability of additional debt or equity capital, or both, or fluctuations in foreign currencies, and (xvi) interruption of business or negative impact on sales and earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil unrest and other factors outside of our control.
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