ForeverGreen Worldwide Announces Q3 2014 Results

  • 2014 Q3 Revenues Grow 231%
  • Gross Profit Increases 241%
  • Company Achieves Record Sales and Gross Profit

OREM, Utah--()--ForeverGreen Worldwide Corporation (OTCBB: FVRG), a leading direct marketing company and provider of health-centered products, today announced Q3 2014 earnings. The quarter ended September 30, 2014.

Recent Company Highlights:

  • New leaders, distributors and customers added at record pace during Q3 2014
  • Company achieved sixth consecutive quarter of operating profitability and fifth consecutive quarter of net profitability
  • Sales increased each quarter for the last 6 quarters
  • Company actively shipped product in 175 countries, up from just 18 at the end of 2012
  • Company added new products, BeautyStrips and Retromé, to product portfolio
  • Company met or exceeded monthly targets necessary to remain on target for the increased company guidance of $56-60 million of revenue during 2014

Highlights for Q3 2014:

  • Sales increased to $15,880,244 from $4,793,782 for Q3 2013, a 231% increase
  • Gross profit rose to $12,499,786 compared to $3,665,285 during Q3 2013, a 241% increase
  • Gross profit margins increased to 78.7% versus 76.5% during the comparable quarter during 2013
  • Operating income was $317,263 compared to $301,619
  • Net income totaled $203,343 or $0.01 EPS versus a net income of $326,929, which included a one-time gain of $226,230
  • Excluding non-recurring costs, net income totaled $203,343 versus $100,699 during Q3 2013
  • Interest expense decreased to $113,101 or 0.7% of sales compared to $195,656 or 4.1% of sales during Q3 2013
  • Total Long Term Debt reduced to $1,499,234 from $2,046,037 on September 30, 2014

ForeverGreen Revenue/Income Progression

      Revenue       % Growth       Operating Income       Net Income
($ Millions)       (Q vs. Q)       ($ Thousands)       ($ Thousands)
1Q2013       2.7               (96)       (211)
2Q2013       4.0       48.7%       93       (5)
3Q2013       4.8       19.6%       302       327
4Q2013       6.3       30.6%       84       7
1Q2014       10.5       68.3%       267       181
2Q2014       14.1       34.3%       412       455
3Q2014       15.9       12.8%       317       203
                 

Highlights for nine months, ending September 30, 2014, included:

  • Sales increased to $40,544,486 versus $11,495,871, a 253% increase
  • Gross profit rose to $31,710,515 from $8,372,805 a 279% increase
  • Gross profit margins increased to 78.2% compared to 72.8% for the first nine months of 2013
  • Operating income increased to $996,624 versus an operating income of $298,580 during the first three quarters of 2013
  • Net income totaled $839,250 or $0.04 EPS as compared to a net income $110,090 or $0.01 EPS during the first nine months of 2013
  • Interest expense decreased to $258,359 compared to $405,030 during the comparable period in 2013
  • Total assets increased to $6,698,154 from $2,699,519 on December 31, 2013
  • Long term debt decreased to $1,499,234 from $1,909,156
  • Total liabilities increased nominally to $7,165,662 from $6,301,037 on December 31, 2013

“We continue to see our gross margins approaching 80 percent and expect to top this number in the coming quarters with economies of scale, logistical improvements and product mix. Over the last several quarters, the company has concentrated on growth and the things necessary to do this effectively. This includes higher inventories, quality management and leadership, IT improvements as well as customer and member marketing and education. As we move into 2015, our concentration will be on the growth of our scalable business model without the growth of many of the corresponding fixed costs. We anticipate significantly higher levels of profitability as many of our expenses associated with the large scale growth we have seen in 2014 will diminish as a percentage of sales,” said Jack Eldridge, CFO of ForeverGreen.

Mr. Eldridge added, “We experienced a 231% increase in year over year sales and continue to remain on track to hit our 2014 guidance of $56-60 million for the year. The company will focus on streamlining its operations as it continues to grow. We believe during the next 9-12 months our operating margins will improve to 7-9%, and our net margins will increase to 5-8% as we continue to benefit from overall efficiencies and lower COGS. Several non-recurring costs will be reduced as we move into 2015. Currently under $1.5 million, our debt levels continue to decrease, and ForeverGreen currently has enough tangible assets, $6.5 million, to cover all of its current liabilities. We have improved the company’s financial health substantially over the last year. We have achieved several of our 2014 goals already, including the introduction of new products and product sales in dozens of new countries. We are pleased that we have been able to stay profitable while remaining one of the fastest growing companies in our industry and one of the fastest growing public companies period. We will continue to develop ForeverGreen into one of the largest and most diversified global companies in our industry. Due to the international business travel of our management team, we hope to hold a call with shareholders in the next few weeks.”

For a full earnings report, please view our entire filing at www.sec.gov

ForeverGreen Worldwide Corporation develops, manufactures and distributes an expansive line of all natural whole foods and products to North America, Australia, Europe, Asia and South America, including their new global offerings, PowerStrips and SolarStrips. They also offer Azul and FrequenSea(TM) whole-food beverages with industry exclusive Marine Phytoplankton, the Versativa line of hemp-based whole-food products, immune support and weight management products, Pulse-8 powdered L-arginine formula, TRUessence(TM) Essential Oils and Apothecary, 24Karat Chocolate(R) and an entire catalog of meals, snacks, household cleaners and personal care products.

http://www.forevergreen.org

Forward-Looking Statement

This press release contains certain forward-looking statements. Investors are cautioned that certain statements in this release are "forward-looking statements" and involve both known and unknown risks, uncertainties and other factors. Such uncertainties include among others, certain risks associated with the operation of the company described above. The company's actual results could differ materially from expected results.

Contacts

ForeverGreen Worldwide Corporation
Craig Smith, 801-655-5500
craig@forevergreen.org
or
Brokers and Analysts:
Chesapeake Group
Kevin Holmes, 410-825-3930
info@chesapeakegp.com

ForeverGreen Worldwide Corporation