Luvu Brands Reports Fiscal First Quarter 2021 Results

Reports Record First Quarter Net Sales of $5.4 million; Record First Quarter Net Income of $329,000

ATLANTA, GA / ACCESSWIRE / November 12, 2020 / Luvu Brands, Inc. (OTCQB:LUVU), a designer, manufacturer and marketer of a portfolio of consumer lifestyle brands and PPE, reported financial results for its fiscal first quarter ended September 30, 2020.

Fiscal First Quarter 2021 Highlights

Three months ended September 30, 2020 as compared to the three month ended September 30, 2019

  • Net sales increased 31% to $5.4 million from $4.1 million.
  • Total gross profit of $1.5 million, up $351,000 from the prior year.
  • Gross profit as a percentage of net sales unchanged at 28%.
  • Operating expenses were $1,052,000, an increase of 3%, or approximately $28,000, from the prior year.
  • Net income of $329,000, or $0.00 per share, compared to a net loss of ($45,000), or ($0.00) per share in the prior year.
  • Adjusted EBITDA was $494,000 for the quarter compared to $158,000 in the prior year quarter.

Louis Friedman, Chairman and Chief Executive Officer, commented, "We delivered strong financial results for the first quarter. Despite the COVID pandemic, demand for all of our products continues to be strong and we posted significant sales increases across all three of our major brands during the first quarter."

Fiscal First Quarter 2021 Results

Net sales increased 31% to $5.4 million, compared to $4.1 million in the same year-ago quarter. Sales of Liberator products increased 33% to $2.0 million from $1.5 million in the prior year. Jaxx product sales totaled $1.7 million, up 51% from $1.1 million in the first quarter of the prior fiscal year. Avana products increased 14% to $1.0 million from $0.8 million in the prior year. 

Gross profit for the first quarter totaled $1.5 million, compared to $1.1 million in the prior year first quarter. Despite labor and raw material cost increase, gross profit as a percentage of net sales remained constant with the prior year first quarter at 28%.

Operating expenses were approximately 20% of net sales, or approximately $1,052,000, compared to 25% of net sales, or approximately $1,024,000, for the same period in the prior year. Of the $28,000 increase, approximately $78,000 was due to higher general and administrative expenses (higher computer software expense, higher salaries and healthcare costs) and $12,000 in higher depreciation expense, offset in part by $62,000 in lower advertising and other selling and marketing expenses (lower salaries, travel and trade show costs.)

Net income for the quarter was $329,000, or $0.00 per share, compared to a net loss of ($45,000), or ($0.00) per share in the prior year first quarter.

Adjusted EBITDA for the three months ended September 30, 2020 was $494,000 compared to $158,000 in the prior year period.

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 November 12, 2020 to review the results for the first quarter. To listen and participate in the call, please register on this weblink . After the formal presentation, there will be a Q&A session. Shareholders and other interested parties may ask questions through either the weblink or by calling 877-407-0778. The replay of the call will remain available on the Company's investor relations website,, until February 12, 2021.

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, 2020 as filed with the Securities and Exchange Commission (the "SEC") on October 1, 2020 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 (loss) 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 / drug merchants and specialty retail stores worldwide. Brands include: Liberator®, a brand category of iconic products for enhancing sensuality and intimacy; Avana®, medical and personal PPE products and 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 virgin and re-purposed polyurethane foam. 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:,, plus other global e-commerce sites. For more information about Luvu Brands, please visit

Company Contact:

Luvu Brands, Inc.
Ronald Scott
Chief Financial Officer

Fiscal First Quarter Fiscal 2021 Summary Financial Tables

   Three Months Ended 
   9/30/2020    9/30/2019 
   (Unaudited)    (Unaudited) 
Net Sales  5,367    4,094 
Cost of goods sold    3,879      2,957 
Gross profit    1,488      1,137 
Operating expenses:               
Advertising and promotion    69      80 
Other selling and marketing    267      318 
General and administrative    664      586 
Depreciation    52      40 
Total operating expenses    1,052      1,024 
Operating income (loss)    436      113 
Total interest and other expense    (107)    (158)
Income (loss) from operations before income taxes    329      (45)
Provision for income taxes    -      - 
Net income (loss)  329    (45)
Net income (loss) per share:               
Basic  0.00    (0.00)
Diluted  0.00    (0.00)
Shares used in calculation of net income (loss) per share:               
Basic    73,452,596      73,452,596 
Diluted    76,034,134      73,452,596 


Condensed Consolidated Balance Sheets         
Dollars in thousands         
   9/30/2020    6/30/2020 
ASSETS  (unaudited)      
Current assets:         
Cash and cash equivalents  932    1,152 
Receivables, net    1,039      1,135 
Inventories, net    2,186      1,985 
Prepaid expenses    90      55 
Total current assets    4,247      4,327 
Equipment and leasehold improvements, net    914      938 
Finance lease assets    34      - 
Operating lease assets    85      165 
Other assets    17      17 
Total assets  5,297      5,447 
Current liabilities:               
Accounts payable  2,422    2,435 
Current debt    1,814      2,007 
Current portion of PPP loan    666      482 
Other accrued liabilities    538      623 
Operating lease liability    102      199 
Total current liabilities    5,542      5,746 
Noncurrent liabilities:               
Long-term debt    264      361 
PPP loan    430      614 
Total noncurrent liabilities    694      975 
Total liabilities    6,236      6,721 
Stockholders' deficit:               
Common stock    735      735 
Additional paid-in capital    6,153      6,147 
Accumulated deficit    (7,827)    (8,156)
Total stockholders' deficit    (939)    (1,274)
Total liabilities and stockholders' deficit  5,297    5,447 


   Three Months Ended 
   September 30, 2020    September 30, 2019 
Net income (loss) - GAAP  329    (45)
Plus interest expense    107      158 
Plus depreciation and amortization expense    52      40 
Plus stock-based compensation expense    6      5 
Adjusted EBITDA - non-GAAP  494    158 
Non-GAAP operating margin    9.2%    3.4%

SOURCE: Luvu Brands, Inc. 

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