Liberator Inc. (OTCBB: LUVU) is a dynamic high-growth and vertically integrated company capitalizing on the emerging sexual wellness revolution through the worldwide marketing of the Liberator® brand, which competes in a large and growing market with few known brands other than Church & Dwight’s (NYSE: CHD) Trojan® and Johnson & Johnson’s (NYSE: JNJ) K-Y® brands.
Recently, the company reported a combination of record revenues and newly retired shares that should unlock value for investors long-term. The higher growth rates can lead to higher valuations, while the retirement of shares increases shareholder equity.
Liberator Reports Record Revenues
Last quarter, Liberator reported revenues that increased 16% to $4.3 million, which resulted in positive net income of $40,000 compared to a loss of $361,000 in Q2 2011. Meanwhile, the company has made solid progress expanding its product lines and distribution, which has helped build a platform for growth over the coming quarters.
Moving forward, the company will focus on executing its growth strategy based on its existing product lines and domestic sales, as well as new awareness initiatives, such as its recently announced book deal with Quiver Books. Management expects these activities to expand its sales as demand for its products go mainstream, while it also works to increase awareness in 2012.
Share Retirement Unlocks Shareholder Value
On February 10th, Liberator announced that it retired approximately 25 million shares of common stocks, which equates to a 27% reduction in the number of outstanding shares. The move comes in conjunction with the sale of its former subsidiary, Web Merchants Inc., and will result in greater value for investors.
“We view this as a very positive step forward in improving the overall capital structure of our company,” said Louis Friedman, President and CEO of Liberator, Inc. “By reducing our issued and outstanding common shares, we will add value to both our new and existing shareholders, while Liberator continues to improve revenues and implement our strategic growth initiatives in 2012 and beyond.”
A Great Investment Opportunity
Liberator represents a great investment opportunity to consider for all investors. With record revenues and a swing to profitability, now is a great time for investors to get involved in this stock, as these results may not go unnoticed for much longer.