), the pioneer of nutritional glycobiology, leading innovator of naturally-sourced supplements based on Real Food Technology® solutions, and creator of the M5M
(Mission 5 Million
) social entrepreneurial movement, today announced financial results for its first quarter 2014.
First quarter net sales for 2014 were $43.0 million, an increase of 3.1% as compared to $41.7 million in the first quarter of 2013. Our net sales increased 6.0% in constant dollars, which is a non-GAAP financial measure that excludes the impact of fluctuations in foreign currency exchange rates.
“The increase in net sales and improved operational efficiencies yielded a 111% increase in Income from Operations for the first quarter 2014 as compared to a year ago,” commented Dr. Robert Sinnott, CEO & Chief Science Officer. Income from Operations was $1.4 million, or 3.2% of net sales, in the first quarter 2014 as compared to $655,000, or 1.6% of net sales, in the first quarter 2013.
Net income was $0.2 million, or $0.08 per diluted share, for the first quarter 2014, as compared to net income of $0.6 million, or $0.24 per diluted share, for the first quarter 2013.
During the quarter, we suspended our operations in Ukraine and took charges to earnings of $0.5 million, consisting of $0.2 million related to operations and $0.3 million in inventory reserves due to the reduction in projected demand for Ukraine and European countries.
During the third quarter of 2013, we implemented a global loyalty program for our associates and members who purchase products using a qualified automatic order. Participating associates and members can earn loyalty points, which can be applied to future purchases. During the first quarter, associates and members applied $0.6 million to loyalty purchases and we deferred net sales of $2.8 million.