ATLANTA, GA -- (Marketwire) -- 11/14/12 -- Liberator, Inc. (OTCQB: LUVU), a vertically integrated manufacturer, distributor and retailer of Liberator®, a brand category of positioning devices for the emerging sexual wellness market, today reported its financial results for the fiscal first quarter ended September 30, 2012.
Summary of Fiscal Q1 2013 Financial Results:
- Record revenue from continuing operations of $3.2 million, an increase of 9% from $2.9 million in Q1 2012.
- Gross profit from continuing operations of $1.0 million compared to $.9 million in Q1 2012.
- Income from continuing operations of approximately $91,000 compared to net loss of approximately $52,000 in Q1 2012.
- Net income of approximately $6,000 compared to a net loss from continuing operations of approximately $147,000 in Q1 2012.
- Adjusted EBITDA* of $145,809 compared to an adjusted EBITDA loss of $10,519 in Q1 2012.
"We are pleased with our first quarter results that again show solid growth and continuing momentum in all business channels," said Louis Friedman, President and CEO of Liberator, Inc. "We achieved record sales for our OneUp Innovations subsidiary with sales through our wholesale channel increasing by 13% from the first quarter of last year, followed by an 8% increase in our direct to consumer revenue. As we expand our mainstream brick and mortar presence with our new vacuum compressed retail packaging, we also expect to grow our e-Commerce business by significantly reducing freight costs for the consumer."
Corporate Highlights and Recent Events:
- On November 13, 2012, Liberator announced that it has begun shipping its Wedge® and Ramp® products in new compressed retail point-of-purchase packages.
- On September 19, 2012, Liberator announced an agreement with Cupido Sensual International (HK) Limited for the distribution of Liberator products in mainland China, Hong Kong and Macau. Cupido has agreed to purchase a minimum of $7.0 million in Liberator products over the next 5 years.
- Going forward in fiscal 2013, Liberator's strategy for growth is based on leveraging the company's existing lines of branded products with an on-going focus on growing domestic sales, as well as expanding its distribution in Europe and Asia.
Mr. Friedman concluded, "We continue to make meaningful progress in improving operating efficiency as our total unit production climbed 20% during the first quarter, year over year. Our direct and wholesale channels both had a strong October, and I am confident our positive momentum will continue into the Holiday selling season."
Fiscal First Quarter 2013 Conference Call
Liberator will host its first quarter conference call on Thursday, November 15, 2012, at 12:00 pm Eastern to discuss its financial results for the fiscal first quarter ended September 30, 2012.
The conference call can be accessed by dialing 877-407-8033 when calling within the United States or 201-689-8033 when calling internationally. Please dial in 10 minutes prior to the beginning of the call. A replay of the webcast will be available until January 18, 2013. To listen to the playback dial 877-660-6853 when calling within the United States, or 201-612-7415 when calling internationally, and use conference ID number 403719.
This call is being webcast by PrecisionIR and can be accessed at Liberator's investor relations web site at www.invest-in-LUVU-Liberator.com or at www.InvestorCalendar.com.
About Liberator, Inc.
Liberator, Inc. is a dynamic vertically integrated public company capitalizing on the emerging sexual wellness revolution through the worldwide marketing of the Liberator® line of products, the luxury and lovestyle brand that celebrates intimacy by inspiring romantic imagination. 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 and positioning systems, pleasure objects, and sensual accessories. Liberator, Inc. is currently housed in a 140,000 square foot vertically integrated manufacturing facility in a suburb of Atlanta, Georgia and has over 100 employees, with products being sold directly to consumers and through hundreds of domestic resellers, on-line affiliates and international licensees. The company is known for cutting-edge advertising and product branding.
Liberator operates an online retail e-commerce website at: www.liberator.com and can be followed on Twitter at: www.twitter.com/Liberator.
For comprehensive investor relations material, including fact sheets, research reports, and video regarding Liberator, please visit the Company's investor relations web site at www.invest-in-LUVU-Liberator.com.
*Adjusted EBITDA
As used herein, Adjusted EBITDA represents net income (loss) before interest income, interest expense, income taxes, depreciation, amortization, amortization of debt issuance costs and stock-based compensation expense. We have excluded the non-operating item, amortization of debt issuance costs, because it represents a non-cash charge that is not related to the Company's operations. We have excluded the non-cash expense, stock-based compensation, as it does not reflect the cash-based operations of the Company. Adjusted EBITDA is a non-GAAP financial measure which is not required by or defined under GAAP (Generally Accepted Accounting Principles). The presentation of this financial measure is not intended to be considered in isolation or as a substitute for the financial measures prepared and presented in accordance with GAAP, including the net income (loss) of the Company or net cash used in operating activities. Management recognizes that non-GAAP financial measures have limitations in that they do not reflect all of the items associated with the Company's net income or net loss as determined in accordance with GAAP, and are not a substitute for or a measure of the Company's profitability or net earnings. Adjusted EBITDA is presented because we believe it is useful to investors as a measure of comparative operating performance and liquidity, and because it is less susceptible to variances in actual performance resulting from depreciation and amortization and non-cash charges for amortization of debt issuance costs and stock-based compensation expense.
Forward-Looking Statements
In addition to historical information, this press release may contain forward-looking statements that reflect the company's current expectations and projections about future results, performance, prospects and opportunities. These forward-looking statements are based on information currently available to us and are subject to a number of risks, uncertainties and other factors that may cause actual results, performance, prospects or opportunities to be materially different from those expressed in, or implied by, such forward looking statements. You should not place undue reliance on any forward-looking statements. Except as required by federal securities law, the company assumes no obligation to update publicly or to revise these forward-looking statements for any reason. Actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available, new events occur or circumstances change in the future.
LIBERATOR, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(unaudited)
Three Months Ended
September 30,
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2012 2011
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Net Sales $ 3,210,175 $ 2,954,140
Cost of goods sold 2,201,399 2,087,663
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Gross profit 1,008,776 866,477
Operating expenses:
Advertising and promotion 101,628 64,132
Other selling and marketing 316,489 316,632
General and administrative 455,424 475,604
Depreciation and amortization 43,808 62,467
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Total operating expenses 917,349 918,835
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Operating income (loss) from continuing
operations 91,427 (52,358)
Other income (expense):
Interest income 97 124
Interest (expense) and financing costs (85,045) (82,412)
Debt issuance costs - (12,257)
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Total other income (expense) (84,948) (94,545)
------------- -------------
Net income (loss) from continuing operations
before income taxes 6,479 (146,903)
Provision for income taxes - -
------------- -------------
Net income (loss) from continuing
operations 6,479 (146,903)
Loss from discontinued operations - (26,041)
------------- -------------
Net income (loss) $ 6,479 $ (172,944)
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Net income (loss) per share
Basic and diluted income (loss) per common
share from continuing operations $ 0.00 $ (0.00)
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Basic and diluted income (loss) per common
share from discontinued operations $ - $ (0.00)
------------- -------------
Basic and diluted income (loss) per common
share $ 0.00 $ (0.00)
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Weighted average common shares outstanding-
basic and diluted 70,702,596 91,947,047
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Company Contact:
Liberator, Inc.
Ronald Scott
Chief Financial Officer
770-246-6426
ron.scott@Liberator.com
