LUVU 8-K
Luvu Brands, Inc. (LUVU)
8-K
2021-09-28
For: 2021-09-28
View Original
Added on
April 06, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of
report (Date of earliest event reported): September 28,
2021
Luvu Brands, Inc.
(Exact name of registrant as specified in Charter)
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Florida
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000-53314
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59-3581576
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(State or other jurisdiction of
incorporation)
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(Commission File No.)
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(IRS Employer Identification No.)
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2745 Bankers Industrial Drive
Atlanta, GA 30360
(Address of Principal Executive Offices)
(770) 246-6400
(Registrant’s telephone number, including area
code)
Check
the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2.
below):
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☐
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR 230.425)
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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☐
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
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Item
2.02
Results of Operations and Financial Condition
On
September 28, 2021, Luvu Brands, Inc. (“Luvu” or
“the Company”) issued a press release announcing its
financial results for the fourth fiscal quarter and year ended June
30, 2021. A copy of the Company’s press release is attached
hereto as Exhibit 99.1 and incorporated herein by
reference.
The
information included in this Item 2.02, as well as Exhibits
99.1, shall not be deemed “filed” for purposes of
Section 18 of the Securities Exchange Act of 1934, nor shall
it be deemed incorporated by reference in any filing under the
Securities Act of 1933.
Item 9.01
Financial Statements and Exhibits.
(d)
Exhibits
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Exhibit No.
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Description
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Press
release, dated September 28, 2021, reporting financial results for
the fourth fiscal quarter and year ended June 30,
2021.
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SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the Registrant
has duly caused this Report to be signed on its behalf by the
undersigned hereunto duly authorized.
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Luvu Brands, Inc.
(Registrant)
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Date:
September 28, 2021
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By:
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/s/
Ronald P. Scott
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Ronald
P. Scott
Chief
Financial Officer
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Exhibit
99.1
Luvu Brands Reports Fiscal Fourth Quarter and Full Year 2021
Results
Reports Record Fourth Quarter Net Sales of $5.8 million; Record
Full Year Net Sales of $23.1 million
Atlanta, Georgia, September 28,
2021 – Luvu Brands, Inc. (OTCQB: LUVU), a designer,
manufacturer and marketer of a portfolio of consumer lifestyle
brands, today reported financial results for its fiscal fourth
quarter 2021 and full year ended June 30, 2021.
Full-Year Fiscal 2021 Highlights
Fiscal year ended June 30, 2021 as compared to the fiscal year
ended June 30, 2020
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Net
sales increased 26% to a record $23.1 million.
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Total
gross profit of $6.3 million, up 14% from $5.5 million in fiscal
2020
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Gross
profit as a percentage of net sales decreased to 27% from 30% in
the prior year.
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Operating
expenses were $4.5 million compared to $4.1 million in fiscal
2020.
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Net
income was $2.6 million, or $0.03 per share, compared to net income
of $860,000, or $0.01 per share, in 2020.
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Adjusted
EBITDA of $3,173,000 compared to $1,622,000 in the prior fiscal
year.
Fiscal Fourth Quarter 2021 Highlights
Three months ended June 30, 2021 as compared to the three months
ended June 30, 2020
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Net sales increased 7% to a fourth quarter record
of $5.8 million. Included in
the prior year three months ended June 30, 2020 results were
$780,000 in sales of PPE products. Excluding the non-recurring PPE
sales, the comparable quarter-to-quarter increase was approximately
25%.
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Total
gross profit of $1.5 million, down $301,000 from the prior year
three month period.
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Gross
profit as a percentage of net sales decreased to 26% in the current
year from 33% in the prior year three month period.
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Operating
expenses were $1,115,000, an increase of 27%, or approximately
$235,000, from the prior year three month period. The prior year
three month operating expenses were reduced by approximately
$272,000 of capitalized software costs relating to the e-commerce
website upgrade.
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Net
income of $300,000, or $0.00 per share, compared to net income of
$796,000, or $0.01 per share in the prior year three month
period.
Louis Friedman, Chairman and Chief Executive Officer, commented,
“Fiscal 2021 was a pivotal year for the Company. We reported
record net sales and net income, our balance sheet has improved, we
acquired over $1 million in additional production equipment, and
being a vertically integrated US-based manufacturer, we have been
able to successfully avoid many of the supply chain problems facing
most other manufacturers.”
Full-Year Fiscal 2021 Results
Net sales increased 26% to $23.1 million, compared to $18.4 million
in fiscal 2020. Sales of the Company’s flagship Liberator
brand increased 43% from the prior year to $9.8 million. Jaxx
product sales increased 42% during the fiscal year to $6.8 million,
and Avana sales decreased 21% to $3.7 million. Net sales of
products purchased for resale increased 20% during the year to $1.8
million and Other revenue increased 69% to $1.1
million.
Total gross profit for the year was $6.3 million, up 14% from $5.5
million in fiscal 2020. Gross profit as a percentage of net sales
decreased to 27% from 30% in the prior fiscal year, due primarily
to production cost increases consisting of raw material and labor
cost increases.
Operating expenses were $4.5 million compared to $4.1 million in
fiscal 2020. The 9% increase in operating expenses from the prior
year was primarily due to higher advertising and promotion
expenses, and higher occupancy and personnel related
costs.
Other income for fiscal 2021 included a $1.1 million gain on the
forgiveness of the PPP loan.
Net income for the year was $2,563,000, or $0.03 per share,
compared to net income of $860,000, or $0.01 per share in fiscal
2020.
Adjusted EBITDA for the year was $3,173,000, compared to $1,622,000
in the prior fiscal year.
Cash and cash equivalents on June 30, 2021 totaled $1.0 million
compared to $1.2 million at June 30, 2020.
Fiscal Fourth Quarter 2021 Results
Net sales increased 7% to $5.8 million, compared to $5.5 million in
the same year-ago quarter. Sales of Liberator products increased
45% to $2.5 million from $1.7 million in the prior year. Jaxx
product sales totaled $1.9 million, up 16% from $1.6 million in the
fourth quarter of the prior fiscal year. Avana products decreased
51% to $852,000 from $1.7 million in the prior year. The prior year
Avana sales included approximately $780,000 in PPE product sales;
excluding those prior year PPE sales, the decrease in Avana sales
would have been 12%.
Gross profit for the fourth quarter totaled $1.5 million, compared
to $1.8 in the prior year fourth quarter. Gross profit as a
percentage of net sales decreased to 26% in the current year from
33% in the prior year, primarily driven by production cost
increases from raw material and labor cost increases.
Operating expenses were $1,115,000 for the three months ended June
30, 2021, an increase of 27%, or approximately $235,000, from the
prior year fourth quarter. The prior year three month operating
expenses were reduced by approximately $272,000 of capitalized
software costs relating to the e-commerce website
upgrade.
Net income for the quarter was $300,000, or $0.00 per share,
compared to net income of $796,000, or $0.01 per share in the prior
year fourth quarter.
Conference Call
Management will host a conference call at 11:00 a.m. EDT (10:00
a.m. CDT; 8:00 a.m. PDT) on September 29, 2021. To listen and
participate in the call, please register on this weblink
https://www.webcaster4.com/Webcast/Page/2527/43038.
The replay of the call will remain available on the Company’s
investor relations website, www.luvubrands.com, until January 3,
2022.
Forward-Looking Statements
Certain matters discussed in this press release may be
forward-looking statements. Such forward-looking
statements can be identified by the use of words such as
''should,'' ''may,'' ''intends,'' ''anticipates,'' ''believes,''
''estimates,'' ''projects,'' ''forecasts,'' ''expects,'' ''plans,''
and ''proposes.'' These forward-looking statements are not
guarantees of future performance and are subject to risks,
uncertainties, and other factors, some of which are beyond our
control and difficult to predict and could cause actual results to
differ materially from those expressed or forecasted in the
forward-looking statements. You are urged to carefully review and
consider any cautionary statements and other disclosures in our
Annual Report on Form 10-K for the fiscal year ended June 30, 2021
as filed with the Securities and Exchange Commission (the "SEC") on
September 28, 2021 and our other filings with the SEC. All
forward-looking statements involve significant risks and
uncertainties that could cause actual results to differ materially
from those in the forward-looking statements, many of which are
generally outside the control of Luvu Brands, Inc. and are
difficult to predict. Luvu Brands, Inc. does not undertake any duty
to update any forward-looking statements except as may be required
by law. The information which appears on our websites and our
social media platforms is not part of this press
release.
Use of Non-GAAP Financial Measures
Luvu
Brands’ management evaluates and makes operating decisions
using various financial metrics. In addition to the Company's GAAP
results, management also considers the non-GAAP measure of Adjusted
EBITDA and Non-GAAP Operating Margin. As used herein, Adjusted
EBITDA represents net income before interest income, interest
expense, income taxes, depreciation, amortization, and stock-based
compensation expense, and Non-GAAP Operating Margin means Adjusted
EBITDA divided by net sales. Management believes that these
non-GAAP measures provide useful information about the Company's
operating results. Neither Adjusted EBITDA nor Non-GAAP
Operating Margin have been prepared in accordance with GAAP. These
non-GAAP financial measures should not be considered as
alternatives to, or more meaningful than, gross profit and net
income as indicators of the Company’s operating performance.
Further, these non-GAAP financial measures, as presented by the
Company, may not be comparable to similarly titled measures
reported by other companies. The Company has attached to this press
release a reconciliation of these non-GAAP financial measures to
their most directly comparable GAAP financial measures.
About Luvu Brands
Luvu Brands, Inc. designs, manufactures and markets a portfolio of
consumer lifestyle brands through the Company’s websites,
online mass merchants and specialty retail stores worldwide. Brands
include: Liberator®,
a brand category of iconic products for enhancing sexual
performance; Avana®,
inclined bed therapy products, assistive in relieving medical
conditions associated with acid reflux, surgery recovery and
chronic pain; and Jaxx®,
a diverse range of casual fashion daybeds, sofas and beanbags made
from polyurethane foam and repurposed polyurethane foam trim.
Headquartered in Atlanta, Georgia, the Company occupies a 140,000
square foot vertically-integrated manufacturing facility and
employs over 200 people. The Company's brand sites include:
www.liberator.com,
www.jaxxbeanbags.com,
www.avanacomfort.com plus other global
e-commerce sites. For more information about Luvu Brands, please
visit
www.luvubrands.com.
Company Contact:
Luvu Brands, Inc.
Ronald Scott
Chief Financial Officer
770-246-6426
Fiscal Fourth Quarter and Full-Year Fiscal 2021 Summary Financial
Tables
SUPPLEMENTAL
FINANCIAL INFORMATION
RECONCILIATION
OF NON-GAAP FINANCIAL MEASURES
