Basket-maker Longaberger and its parent company, JRJR Networks, are under scrutiny from various quarters over unpaid phone bills and late financial filings.
And a potential source of revenue, its iconic basket-shaped headquarters in Newark, isn’t attracting much interest from potential buyers.
The latest issue to arise faces the parent company. Dallas-based JRJR Networks owns direct-sales firms including Longaberger.
Late Thursday, the publicly traded company announced it will file its quarterly earnings report late — again. It was also late in filing its annual report and and its first quarter report, too.
Issues like this can threaten the company’s ability to trade shares on the New York Stock Exchange.
“It doesn’t lend an aura of confidence,” said Eleanor Bloxham, a corporate-governance expert based in Westerville. A late filing “does happen, but it’s not usual.”
After its tardy
Tag Archive for CVSL
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CVSL Announces Name Change, Provides 2015 Q4 Revenue Estimate
by Nicole Dunkley • • 0 Comments
Direct selling conglomerate CVSL is entering the new year with a new name, the company announced Wednesday. In a preview of its fourth quarter earnings, Texas-based CVSL said it will begin operating under the name JRJR Networks.
When the paperwork is in order, the company’s common stock will trade under the symbol JRJR on the NYSE MKT.
“We inherited the CVSL name when we acquired the company three years ago,” the junior Rochon said in a statement. “We have always intended to change our name at the appropriate time, to give us a unique identity. Now that we have grown to encompass 10 companies, doing business across the globe as a ‘network of networks,’ the time has come to assert our new identity.”
CVSL’s stable of direct-to-consumer brands includes basket and home decor seller The
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CVSL Announces Q3 Results – Revenues Up 54% To $37 Million
by Nicole Dunkley • • 0 Comments
CVSL Inc. today announced financial results for its third quarter of 2015. Revenue for the quarter was approximately $37.0 million, up from approximately $24.0 million in the third quarter last year, an increase of 54.0%. Gross profit margin increased from 54.4% to 59.8%.
“The third quarter was another successful quarter for CVSL,” said Vice Chairman John Rochon Jr. “With revenues up again, combined with positive trends for both earnings per share and the measures of EBITDA presented in our Form 10-Q, we can see that our strategy of improving and strengthening the companies in our portfolio of brands is continuing to work. Our core business is showing good improvement as our turnaround efforts are having a positive effect. We believe that we are now in the position of using CVSL’s earnings primarily to
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CVSL Acquires Betterware
by Ramya Chandrasekaran • • 0 Comments
CVSL Inc. has acquired 100% of Betterware Ltd., a United Kingdom-based direct-to-consumer company, making Betterware the tenth company to become part of CVSL and giving CVSL a commanding presence in the U.K. home shopping market.
CVSL’s Vice Chairman and Chief Financial Officer John Rochon Jr. noted that there are significant similarities between Betterware and Kleeneze, another well-known U.K. direct-to-consumer company, which CVSL acquired in March.
“These two famous brands and their sales networks will remain separate, while we expect major synergies in the operations of the two companies that we believe will yield efficiencies and improve profitability for both. The sales networks and customers of both companies should benefit.”
“With Kleeneze and Betterware side by side within CVSL, we have a powerful position in the U.K. home shopping market. With both of these two established consumer growth brands in
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CVSL Announces 2nd Quarter Report With 10% Increase In Revenue
by Tina Williams • • 0 Comments
CVSL, Inc. reports preliminary financial results for the quarter ended June 30, 2015.
We analyze the earnings along side the following peers of CVSL Inc. – PCM, Inc., QuinStreet, Inc. and Mannatech, Incorporated (PCMI-US, QNST-US and MTEX-US) that have also reported for this period.
Highlights
Summary numbers: Revenues of USD 32.74 million, Net Earnings of USD -1.69 million, and Earnings per Share (EPS) of USD -0.05.
Gross margins narrowed from 66.31% to 64.47% compared to the same quarter last year, operating (EBITDA) margins now -5.05% from -15.93%.
Year-on-year change in operating cash flow of -16.46% is about the same as the change in earnings, likely no significant movement in accruals or reserves.
Earnings growth from operating margin improvements as well as one-time items.
CVSL-US‘s change in revenue this quarter compared to the same quarter last year of 69.08% is
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CVSL Rings Closing Bell At The New York Stock Exchange
by Nicole Dunkley • • 0 Comments
CVSL made company history Wednesday at the New York Stock Exchange, where executives and salespeople participated in the ceremonial ringing of the bell to signal the end of trading.
The Dallas-based direct selling conglomerate has built a portfolio of eight independent businesses—including The Longaberger Co., Tomboy Tools, Agel Enterprises, Paperly, and others—which benefit from combined back office expertise as well as centralized business operations and services. Shares in CVSL previously traded over the counter on the OTCQX, but the company uplisted to the NYSE MKT in December 2014.
“We’re proud to be listed on the NYSE and we want everyone who is part of every CVSL company, including our independent sales force, our employees and our shareholders, to feel part of this special moment,” CVSL Vice Chairman and CFO, John Rochon Jr., said in
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CVSL Revenue Increases 45.2% To $35.7 Million In Second Quarter
by Tina Williams • • 0 Comments
CVSL Inc. [NYSE MKT: CVSL] today announced financial results for its second quarter of 2015.
Revenue for the quarter was $35.7 million, up from $24.6 million in the second quarter last year, an increase of 45.2%. Operating loss was $2.5 million, compared to a loss of $4.1 million in last year’s second quarter, an improvement of 39.0%.
“We are very pleased with our second quarter results. The quarter clearly demonstrated the effectiveness of our strategy of buying companies at favorable prices and then applying our expertise to strengthen them and increase cash flow,” said John Rochon Jr., Vice Chairman of CVSL.
“These results compare favorably to our reported and pro forma first quarter numbers, and to the same period last year. With our cost management efforts now operating on all cylinders, we feel very good about
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CVSL Reports Q2 Increased Revenue – Up 45% To $35.7 Million
by Nicole Dunkley • • 0 Comments
CVSL, the parent company of Longaberger, reported a 45 percent increase in revenue for the second quarter of the year.
The direct-selling company reported revenue of $35.7 million, up from $24.6 million in the second quarter last year.
The operating loss was $2.5 million, compared with a loss of $4.1 million in last year’s second quarter.
“We are very pleased with our second quarter results,” said John Rochon Jr., vice chairman of CVSL. “The quarter clearly demonstrated the effectiveness of our strategy of buying companies at favorable prices and then applying our expertise to strengthen them and increase cash flow.
“We believe these results show that our strategy is working. While we continue to focus on improving the profitability of the companies we own, we intend to be opportunistic about potential acquisitions.”
About The Longaberger Company
The
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Tami Longaberger Battles CVSL Over Exit
by Ramya Chandrasekaran • • 0 Comments
Tami Longaberger’s departure from the basket-making company that her father founded has turned into a heated battle between her and CVSL, parent of the Longaberger Co.
Longaberger said CVSL failed to pay sales and use taxes and drastically cut her pay, while CVSL charged Longaberger with misconduct, according to a filing with the U.S. Securities and Exchange Commission.
The two sides also can’t agree on whether Longaberger, who left the company in early May, was fired or resigned.
Longaberger says in a resignation letter dated April 28 that she was resigning due to three reasons:
CVSL reduced her salary of $850,000 per year by $600,000 during a four-month “deferral period” that was never made up.
CVSL reduced her responsibilities and put another executive in charge at the Longaberger Co.
CVSL caused the Longaberger Co. to fail to pay sales and
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DSA Reacts to Article About Decline of Direct Sales in USA
by Ramya Chandrasekaran • • 0 Comments
The Direct Selling Association (DSA) has reacted to an article in The Columbus Dispatch about CVSL company Longaberger’s recent troubles, where an analyst was quoted as saying:
“In our view, the Internet offers a more efficient and lower-cost distribution channel than catalogs……Direct selling, while a great source of part-time income for many, is a slowly dying business model…”
Joseph Mariano, President of the DSA has written the following letter to The Dispatch.
The direct-selling channel in the United States is healthy and continues to grow, contrary to the view expressed in May 17 Dispatch article “Basket maker Longaberger Co. has its critics.”
The proof is in the numbers: Direct selling generated more than $32 billion in revenue in 2013, up from $31.6 billion in 2012 and $29.8 billion the previous year. Ohio realized just over $1