Nov. 13, 2017 10:36 PM ET
Youngevity International, Inc. (NASDAQ:YGYI)
Q3 2017 Results Earnings Conference Call
November 13, 2017, 04:15 PM ET
Steve Wallach - CEO
Dave Briskie - President & CFP
Sanjeev Javia - Scientific & Athletic Advisory Board Member
Welcome to the Youngevity Shareholder Call. During this call, we will be making forward-looking statements regarding Youngevity's current expectations and projections about future events. Generally the forward-looking statements can be identified by terminology such as may, should, expects, anticipates, intends, plans, believes, estimates and similar expressions.
These statements are based on current beliefs, expectations, and assumptions and are subject to a number of risks and uncertainties, including those set forth in Youngevity's filings with the SEC many of which are difficult to predict.
No forward-looking statements can be guaranteed and actual results may differ materially from such statements. The information on this call is provided only as of the date of this call, and Youngevity undertakes no obligation to update any new forward-looking statements contained on this conference call on account of new information, future events, or otherwise, except as required by law.
It is my privilege now to turn this call over to Youngevity's CEO, Mr. Steve Wallach.
Thank you, Alex. Hello, I want to welcome everyone to the Youngevity International Shareholders call. Speakers on the call today are myself and our President and CFO of Youngevity, Dave Briskie; our Science and Athletic Advisory Board Chairperson, Sanjeev Javia. Today we will cover the following topics, we will highlight Q3 performance, we will provide an update on a new product strategy that ties into our expanding scientific advisory board. We will discuss growth drivers in our coffee operations and our international operations. I'd like to now bring our President and CFO Dave Briskie onto the call.
Thank you, Steve. And I'd like to welcome all the shareholders to the call right off the rip, I want to bring up a couple of areas that we were - you know we've been working on for the last - really last several quarters and that is our international business and of course our coffee operations, we're proud to report that.
International revenue in the direct selling division is up 36%. I'll get into some details on that. That's predominantly being led by our Asia expansion and our coffee division revenue was up 29.2%. That's primarily being driven by coffee - green coffee distribution, as well as the sales of our own brand Cafe LaRica both in food service and at retail.
And so let’s get to the third quarter 2007 financial - 2017 financial results. For the three months ended September 30, 2017 our revenue increased just under 2% to $44,395,000 as compared to $43,562,000 for the three months period ended September 30 of 2016.
During the three months ended September 30, 2017, we derived approximately 85% of our revenue from our direct sales channel with the balance of the revenue coming from our coffee segment which was 15% of revenue.
Direct selling segment revenues decreased by $622,000 or 1.6% to $37,945,000 as compared to $38,576,000 for the three month period ended September 30 of last year. Commercial coffee segment revenues increased by a little over $1.4 million or 29.2% to $6,441,000 in the current quarter, as compared to $4,986,000 for the same period last year. This increase is primarily attributed to the increase in revenues from our green coffee distribution business and the growth in sales of our own Cafe LaRica
brand both at retail and in food service accounts.
For the three month period ended September 30, 2017, gross profit decreased approximately 2.3% to $25,764,000 million as compared to $26,368,000 million for the three month period ended September 30, 2016.