Nu Skin Enterprises Reports First-Quarter 2015 Results
"Our business continues to make good progress as we prepare to introduce a number of new products in the second half of the year," said
"We are also pleased to have been approved to commence direct selling activities in two new cities in
Regional Results
The company's regional revenue results are presented in the following table.
2015 |
2014 |
% Change |
Constant Currency % Change |
|||||
Greater China |
$ 187,367 |
$ 278,929 |
(33%) |
(31%) |
||||
North Asia |
172,066 |
195,461 |
(12%) |
(5%) |
||||
Americas |
79,872 |
79,909 |
─ |
19% |
||||
South Asia/Pacific |
70,817 |
71,194 |
(1%) |
6% |
||||
EMEA |
33,210 |
45,568 |
(27%) |
(10%) |
||||
Total |
$ 543,332 |
$ 671,061 |
(19%) |
(12%) |
The company's regional Actives and Sales Leaders statistics are presented in the following table.
Actives/Sales Leaders Statistics |
|||||||||||||||
As of March 31, 2015 |
As of March 31, 2014 |
% Increase (Decrease) |
|||||||||||||
Actives |
Sales Leaders |
Actives |
Sales Leaders |
Actives |
Sales Leaders |
||||||||||
Greater China |
235,000 |
22,533 |
305,000 |
31,118 |
(23.0%) |
(27.6%) |
|||||||||
North Asia |
386,000 |
16,984 |
400,000 |
17,794 |
(3.5%) |
(4.6%) |
|||||||||
Americas |
177,000 |
7,164 |
180,000 |
7,339 |
(1.7%) |
(2.4%) |
|||||||||
South Asia/Pacific |
120,000 |
7,060 |
115,000 |
6,787 |
4.3% |
4.0% |
|||||||||
EMEA |
110,000 |
3,811 |
122,000 |
4,326 |
(9.8%) |
(11.9%) |
|||||||||
Total |
1,028,000 |
57,552 |
1,122,000 |
67,364 |
(8.4%) |
(14.6%) |
|||||||||
"Actives" are persons who purchased products directly from the company during the previous three months. |
||||
"Sales Leaders" are independent distributors, and sales employees and independent marketers in China, who achieve certain qualification requirements. |
Operational Performance
The company's operating margin for the quarter was 12.6 percent, compared to 15.1 percent in the first quarter of 2014. Gross margin during the quarter was 80.7 percent, versus 84.1 percent in the prior-year period. Selling expenses were 43.1 percent of sales in the first quarter, compared to 46.7 percent in the prior-year period. General and administrative expenses were 25.0 percent of sales compared to 22.4 percent in the prior-year period. Other income/expense reflected an expense of
Outlook
"We look forward to launching new ageLOC products in the second half of the year, and continue to believe we are on course for constant-currency revenue growth in 2015," said Hunt. "Enthusiasm is building for our upcoming product launches that include ageLOC Youth, our most advanced anti-aging supplement, as well as 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 April, we introduced a line of essential oils under our Epoch trademark in
"While foreign currency continues to negatively impact our results, our first-quarter revenue was in line with our forecast and we expect the fundamentals of the business to improve going forward," 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:
- 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;
- risk of foreign currency fluctuations and the currency translation impact on the company's business associated with these fluctuations;
- risk that direct selling laws and regulations in any of our markets, including
the United States andChina , may be modified, interpreted or enforced in a manner that results in negative changes to our business model or negatively impacts our revenue, sales force or business, including through the interruption of sales activities, loss of licenses, imposition of fines, or any other adverse actions or events; - 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;
- 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 First Quarters Ended March 31, 2015 and 2014 |
|||
(in thousands, except per share amounts) |
|||
2015 |
2014 |
||
Revenue |
$ 543,332 |
$ 671,061 |
|
Cost of sales |
105,055 |
106,644 |
|
Gross profit |
438,277 |
564,417 |
|
Operating expenses: |
|||
Selling expenses |
234,005 |
313,101 |
|
General and administrative expenses |
135,626 |
150,119 |
|
Total operating expenses |
369,631 |
463,220 |
|
Operating income |
68,646 |
101,197 |
|
Other income (expense), net |
(12,268) |
(17,508) |
|
Income before provision for income taxes |
56,378 |
83,689 |
|
Provision for income taxes |
20,096 |
28,835 |
|
Net income |
$ 36,282 |
$ 54,854 |
|
Net income per share: |
|||
Basic |
$ 0.62 |
$ 0.93 |
|
Diluted |
$ 0.60 |
$ 0.90 |
|
Weighted average common shares outstanding: |
|||
Basic |
58,991 |
58,869 |
|
Diluted |
60,261 |
61,227 |
NU SKIN ENTERPRISES, INC. |
|||
Consolidated Balance Sheets (Unaudited) |
|||
(in thousands) |
|||
March 31, 2015 |
December 31, 2014 |
||
ASSETS |
|||
Current assets: |
|||
Cash and cash equivalents |
$ 304,712 |
$ 288,415 |
|
Current investments |
11,632 |
11,793 |
|
Accounts receivable |
34,919 |
35,834 |
|
Inventories, net |
312,788 |
338,491 |
|
Prepaid expenses and other |
159,098 |
160,134 |
|
823,149 |
834,667 |
||
Property and equipment, net |
473,177 |
464,783 |
|
Goodwill |
112,446 |
112,446 |
|
Other intangible assets, net |
72,998 |
75,062 |
|
Other assets |
130,847 |
127,476 |
|
Total assets |
$ 1,612,617 |
$ 1,614,434 |
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|||
Current liabilities: |
|||
Accounts payable |
$ 33,564 |
$ 34,712 |
|
Accrued expenses |
292,299 |
300,847 |
|
Current portion of long-term debt |
83,899 |
82,770 |
|
409,762 |
418,329 |
||
Long-term debt |
181,197 |
164,567 |
|
Other liabilities |
97,809 |
89,100 |
|
Total liabilities |
688,768 |
671,996 |
|
Stockholders' equity: |
|||
Class A common stock |
91 |
91 |
|
Additional paid-in capital |
412,892 |
414,394 |
|
Treasury stock, at cost |
(884,828) |
(862,608) |
|
Accumulated other comprehensive loss |
(61,976) |
(51,521) |
|
Retained earnings |
1,457,670 |
1,442,082 |
|
923,849 |
942,438 |
||
Total liabilities and stockholders' equity |
$ 1,612,617 |
$ 1,614,434 |
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SOURCE
Investors: Scott Pond (801) 345-2657, spond@nuskin.com, Media: Kara Schneck (801) 345-2116, kschneck@nuskin.com