Nu Skin Enterprises Reports Fourth-Quarter And 2014 Results
The company reported full-year 2014 revenue of
"Our business performed as we expected for the quarter, and we look forward to a solid 2015," said
Regional Results The company's regional revenue results are presented in the following table. Revenue Results for the Fourth Quarters Ended December 31, 2014 and 2013 (in thousands) |
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2014 |
2013 |
%Change |
Constant Currency |
||||||
Greater China |
$ 212,981 |
$ 481,561 |
(56%) |
(55%) |
|||||
North Asia |
186,041 |
286,288 |
(35%) |
(30%) |
|||||
Americas |
82,470 |
126,149 |
(35%) |
(14%) |
|||||
South Asia/Pacific |
86,626 |
99,477 |
(13%) |
(9%) |
|||||
EMEA |
41,489 |
62,311 |
(33%) |
(32%) |
|||||
Total |
$ 609,607 |
$ 1,055,786 |
(42%) |
(38%) |
The company's regional Actives and Sales Leaders statistics are presented in the following table. |
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Actives/Sales Leaders Statistics as of December 31, 2014 and 2013 |
||||||||||||
2014 |
2013 |
% Increase (Decrease) |
||||||||||
Actives |
Sales Leaders |
Actives |
Sales Leaders |
Actives |
Sales Leaders |
|||||||
Greater China |
393,000 |
24,537 |
490,000 |
61,546 |
(19.8%) |
(60.1%) |
||||||
North Asia |
391,000 |
17,478 |
409,000 |
19,816 |
(4.4%) |
(11.8%) |
||||||
Americas |
186,000 |
7,471 |
193,000 |
8,274 |
(3.6%) |
(9.7%) |
||||||
South Asia/Pacific |
124,000 |
8,458 |
120,000 |
7,992 |
3.3% |
5.8% |
||||||
EMEA |
114,000 |
4,065 |
123,000 |
4,489 |
(7.3%) |
(9.4%) |
||||||
Total |
1,208,000 |
62,009 |
1,335,000 |
102,117 |
(9.5%) |
(39.3%) |
||||||
"Actives" are persons who purchased products directly from the company during the previous three months.
"Sales Leaders" are independent distributors, and sales employees, contractual sales promoters and independent marketers in China, who achieve certain qualification requirements. |
Operational Performance
The company's comparable financial results were significantly impacted by the large revenue and selling expenses generated from the fourth-quarter 2013 launch of TR90. Operating margin was 15.0 percent for the quarter, compared to 17.9 percent in the fourth quarter of 2013. Gross margin during the quarter was 82.5 percent, versus 84.4 percent in the prior-year period. Selling expenses were 42.1 percent of sales in the fourth quarter, compared to 48.2 percent in the prior-year period. General and administrative expenses were 25.4 percent of sales compared to 18.3 percent in the prior-year period. The company's effective income tax rate for the quarter was 38.1 percent, compared to 34.8 percent in the prior year, due primarily to a non-deductible currency charge related to
Outlook
"We believe we are on course to renew constant-currency growth in 2015," said Hunt. "We look forward to introducing new anti-aging products in both the nutrition and skin care categories during the second half of the year. On the nutrition front, we plan to introduce ageLOC Youth, our most advanced anti-aging supplement. We also plan to introduce ageLOC Me, an innovative anti-aging skin care system that enables consumers to personalize a daily regimen based on individual preferences and skin care needs. In the
"The fundamentals of the business are improving, and we continue to anticipate constant-currency growth in 2015," said
The
About
Please Note: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the company's current expectations and beliefs. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws and include, but are not limited to, statements of management's expectations regarding the company's performance, growth and new product introductions; projections regarding revenue, earnings per share, foreign currency fluctuations and other financial items; statements of belief; and statements of assumptions underlying any of the foregoing. In some cases, you can identify these statements by forward-looking words such as "believe," "expect," "project," "anticipate," "estimate," "intend," "plan," "targets," "likely," "will," "would," "could," "may," "might," the negative of these words and other similar words.
The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to, the following:
- risk that continuing media and regulatory scrutiny and investigations in
China , and any actions taken by the company or by regulators, could cause unanticipated complications or other difficulties, could make it more difficult to forecast results for future periods, and could negatively impact the company's revenue, sales force and business in this market, including the interruption of sales activities, loss of licenses, the imposition of fines, and any other adverse actions or events; - risks related to negative publicity regarding media allegations and subsequent regulatory investigations and fines;
- risk that direct selling regulations in
China may be modified, interpreted or enforced in a manner that results in negative changes to our business model or the imposition of a range of potential penalties; - any failure of current or planned initiatives or products to generate interest among our sales force and customers and generate sponsoring and selling activities on a sustained basis;
- risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support our planned initiatives or launch strategies, and increased risk of inventory write-offs if we over-forecast demand for a product or change our planned initiatives or launch strategies;
- risk of foreign currency fluctuations and the currency translation impact on the company's business associated with these fluctuations;
- unpredictable economic conditions and events globally;
- regulatory risks associated with the company's products, which could require the company to modify its claims or inhibit the company's ability to import or continue selling a product in a market if it is determined to be a medical device or if it is unable to register the product in a timely manner under applicable regulatory requirements;
- adverse publicity related to the company's business, products, industry or any legal actions or complaints by the company's sales force or others;
- any prospective or retrospective increases in duties on the company's products imported into the company's markets outside of
the United States and any adverse results of tax audits or unfavorable changes to tax laws in the company's various markets; and - continued competitive pressures in the company's markets.
The company's financial performance and the forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the company with the
NU SKIN ENTERPRISES, INC. |
|||
Consolidated Statements of Income (Unaudited) |
|||
For the Fourth Quarters Ended December 31, 2014 and 2013 |
|||
(in thousands, except per share amounts) |
|||
2014 |
2013 |
||
Revenue: |
|||
Greater China |
$ 212,981 |
$ 481,561 |
|
North Asia |
186,041 |
286,288 |
|
Americas |
82,470 |
126,149 |
|
South Asia/Pacific |
86,626 |
99,477 |
|
Europe |
41,489 |
62,311 |
|
Total revenue |
609,607 |
1,055,786 |
|
Cost of sales |
106,505 |
164,672 |
|
Gross profit |
503,102 |
891,114 |
|
Operating expenses: |
|||
Selling expenses |
256,693 |
508,846 |
|
General and administrative expenses |
155,111 |
193,673 |
|
Total operating expenses |
411,804 |
702,519 |
|
Operating income |
91,298 |
188,595 |
|
Other (expense)/income, net |
(16,127) |
3,399 |
|
Income before provision for income taxes |
75,171 |
191,994 |
|
Provision for income taxes |
28,664 |
66,723 |
|
Net income |
$ 46,507 |
$ 125,271 |
|
Net income per share: |
|||
Basic |
$ 0.79 |
$ 2.13 |
|
Diluted |
$ 0.77 |
$ 2.02 |
|
Weighted average common shares outstanding: |
|||
Basic |
59,117 |
58,791 |
|
Diluted |
60,442 |
61,881 |
|
NU SKIN ENTERPRISES, INC. |
|||
Consolidated Statements of Income (Unaudited) |
|||
For the Years Ended December 31, 2014 and 2013 |
|||
(in thousands, except per share amounts) |
|||
2014 |
2013 |
||
Revenue: |
|||
Greater China |
$ 948,523 |
$ 1,363,182 |
|
North Asia |
782,985 |
869,400 |
|
Americas |
329,027 |
370,087 |
|
South Asia/Pacific |
328,388 |
378,988 |
|
Europe |
180,572 |
195,061 |
|
Total revenue |
2,569,495 |
3,176,718 |
|
Cost of sales |
478,434 |
505,806 |
|
Gross profit |
2,091,061 |
2,670,912 |
|
Operating expenses: |
|||
Selling expenses |
1,116,572 |
1,476,772 |
|
General and administrative expenses |
622,301 |
640,028 |
|
Total operating expenses |
1,738,873 |
2,116,800 |
|
Operating income |
352,188 |
554,112 |
|
Other (expense)/income, net |
(53,681) |
2,828 |
|
Income before provision for income taxes |
298,507 |
556,940 |
|
Provision for income taxes |
109,331 |
192,052 |
|
Net income |
$ 189,176 |
$ 364,888 |
|
Net income per share: |
|||
Basic |
$ 3.20 |
$ 6.23 |
|
Diluted |
$ 3.11 |
$ 5.94 |
|
Weighted average common shares outstanding: |
|||
Basic |
59,073 |
58,606 |
|
Diluted |
60,887 |
61,448 |
|
NU SKIN ENTERPRISES, INC. |
|||
Consolidated Balance Sheets (Unaudited) |
|||
As of December 31, 2014 and 2013 |
|||
(in thousands) |
|||
2014 |
2013 |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 288,415 |
$ 525,153 |
|
Current investments |
11,793 |
21,974 |
|
Accounts receivable |
35,834 |
68,652 |
|
Inventories, net |
338,491 |
339,669 |
|
Prepaid expenses and other |
160,134 |
162,886 |
|
834,667 |
1,118,334 |
||
Property and equipment, net |
464,783 |
396,042 |
|
Goodwill |
112,446 |
112,446 |
|
Other intangible assets, net |
75,062 |
83,168 |
|
Other assets |
127,476 |
111,072 |
|
Total assets |
$ 1,614,434 |
$ 1,821,062 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable |
$ 34,712 |
$ 82,684 |
|
Accrued expenses |
300,847 |
626,284 |
|
Current portion of long-term debt |
82,770 |
67,824 |
|
418,329 |
776,792 |
||
Long-term debt |
164,567 |
113,852 |
|
Other liabilities |
89,100 |
71,799 |
|
Total liabilities |
671,996 |
962,443 |
|
Stockholders' equity: |
|||
Class A common stock |
91 |
91 |
|
Additional paid-in capital |
414,394 |
397,383 |
|
Treasury stock, at cost |
(862,608) |
(826,904) |
|
Accumulated other comprehensive loss |
(51,521) |
(46,228) |
|
Retained earnings |
1,442,082 |
1,334,277 |
|
942,438 |
858,619 |
||
Total liabilities and stockholders' equity |
$ 1,614,434 |
$ 1,821,062 |
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nu-skin-enterprises-reports-fourth-quarter-and-2014-results-300031332.html
SOURCE
Investors -- Scott Pond (801) 345-2657, spond@nuskin.com, Media -- Kara Schneck (801) 345-2116, kschneck@nuskin.com