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April 01, 2013

Financial News

Financial News, April 2013

Herbalife Ltd.

Herbalife Ltd. (HLF—NYSE) reported fourth quarter and full-year results for the period ended Dec. 31, 2012.

Fourth Quarter 2012 Results

Net sales was $1.1 billion, reflecting an increase of 20 percent compared to the same time period in 2011 on volume point growth of 18 percent. Net income for the quarter of $117.8 million, or $1.05 per diluted share, compares to 2011 fourth quarter net income of $105.4 million and EPS of 86 cents, respectively.

In regional results, for the fourth quarter volume points increased in all regions, and ranged from a 14 percent increase from the previous year in the EMEA to a 43 percent increase in South and Central America. The number of average active sales leaders also increased in all regions. The lowest percentage was in North America and the EMEA, both with 14 percent. The highest percentage came out of South and Central America with 28 percent.

2012 Annual Results

For the 12 months ended Dec. 31, 2012, the company reported record net sales of $4.1 billion, an 18 percent increase on 20 percent growth in volume compared to 2011. For the same period, the company reported net income of $477.2 million, or $4.05 per diluted share, reflecting an increase of 16 percent and 23 percent, respectively, compared to the 2011 results of $412.6 million and $3.30 per diluted share.

The company generated cash flow from operations of $567.8 million, an increase of 11 percent compared to 2011; paid dividends of $135.1 million; invested $122.8 million in capital expenditures; and repurchased $527.8 million in common shares outstanding under our share repurchase program.

Annual results for the regions all showed increases, which included a low of 11 percent in volume points increase in the EMEA to a high of 34 percent in China. The EMEA had the lowest percentage increase in average active sales leaders with 14 percent, and China had the highest with 33 percent.

The company reported that its board of directors has approved a dividend of 30 cents per share to shareholders of record March 5, 2013, payable on March 19, 2013. Subsequent to Dec. 31, 2012, the company has repurchased 4.0 million shares at an average cost of $40.61. There is currently $787.6 million remaining on the existing $1 billion share repurchase authorization.

Herbalife Ltd. is a global nutrition company that sells weight-management, nutrition and personal-care products intended to support a healthy lifestyle. Herbalife products are sold in over 80 countries through and to a network of independent distributors.


Medifast Inc.

Medifast Inc. (MED—NYSE), a manufacturer and provider of clinically proven, portion-controlled weight-loss products and programs, reported financial results for the fourth quarter and fiscal year ended Dec. 31, 2012.

Fourth Quarter 2012 Results

For the fourth quarter ended Dec. 31, 2012, Medifast net revenue increased 20 percent to $83.2 million from net revenue of $69.6 million in the fourth quarter of the prior year.

Revenue in the direct sales channel, Take Shape for Life, increased 20 percent to $51.8 million in the fourth quarter of 2012 compared to $43.3 million in the same period last year. Growth in revenue for Take Shape for Life was driven by increased customer product sales as a result of an increase in the number of active health coaches and an increase in the monthly revenue per health coach.

Gross profit for the fourth quarter of 2012 increased 20 percent to $62.8 million, compared to $52.3 million in the fourth quarter of the prior year. The company’s gross profit margin increased 30 basis points to 75.5 percent in the fourth quarter versus 75.2 percent in the fourth quarter of 2011.

Net income, excluding the sales tax accrual would have been $3.9 million, or 28 cents per diluted share based on approximately 13.8 million shares outstanding compared to net income of $1.2 million, or 8 cents per diluted share, for the comparable quarter last year. Reported net income in the fourth quarter of 2012 was $1.9 million, or 13 cents per diluted share.

2012 Annual Results


For the fiscal year ended Dec. 31, 2012, Medifast reported a net revenue increase of approximately 20 percent to $356.7 million from net revenue of $298.2 million in 2011. 

Net income for the fiscal year 2012 increased $3.1 million to $21.6 million, or $1.57 per diluted share, excluding two non-recurring items, including a FTC settlement recorded in the second quarter of $3.7 million, or 27 cents per diluted share, and a sales tax accrual of $2.0 million net of tax, or 14 cents per diluted share, in the fourth quarter of 2012. This compares to net income of $18.5 million, or $1.31 per share for the comparable period last year. Reported net income for fiscal year 2012 was $15.9 million, or $1.16 per diluted share.


Natural Health Trends Corp.

Natural Health Trends Corp. (NHTC—OTC.BB), a direct selling company that markets premium quality personal-care, wellness and “quality of life” products under the NHT Global brand, announced financial results for the fourth quarter and full year period ended Dec. 31, 2012.

Fourth Quarter 2012 Results

Total revenues for the three months ended Dec. 31, 2012 were $8.1 million compared to $8.2 million for the same period in 2011. Gross profit was $6.1 million, or 75.1 percent of net sales, compared to $6.1 million, or 74.1 percent, in the same period last year. Total expenses for the three months ended Dec. 31, 2012 were $5.7 million compared to $5.8 million in the comparable period of 2011.

2012 Annual Results

Total revenues for the year ended Dec. 31, 2012 were $37.5 million compared to $31.2 million for the same period in 2011, an increase of 20 percent. Hong Kong net sales increased 25 percent over the comparable period last year. Net sales outside of Hong Kong increased 11 percent.

Gross profit for the year ended Dec. 31, 2012 increased 21 percent to $27.8 million, or 74.2 percent of net sales, from $23.0 million, or 73.8 percent, in the same period last year. Total expenses for the full year ended Dec. 31, 2012 were $25.2 million compared to $21.2 million in the comparable period of 2011.

Operating income for the full year ended Dec. 31, 2012 was $2.6 million compared to operating income of $1.8 million in the comparable period in 2011. Net income attributable to common stockholders of Natural Health Trends was $2.6 million, or 24 cents per basic and 23 cents per diluted share, compared to net income of $2.3 million, or 21 cents per basic and diluted share in the same period of 2011.


Nature’s Sunshine Products Inc.

Nature’s Sunshine Products Inc. (NSP) (NATR—NASDAQ), a natural health and wellness company engaged in the manufacture and direct selling of nutritional and personal-care products, reported its consolidated financial results for the fourth quarter and fiscal year ended Dec. 31, 2012, and increased its quarterly cash dividend to 10 cents per share.

The company also announced that Michael D. Dean has resigned as CEO and as a member of the Board of Directors. Gregory L. Probert, Executive Chairman of the Board, has been appointed to serve as interim CEO until such time as the board of directors names a new CEO. Dean will enter into a one-year consulting agreement with the company, and work with Probert to ensure a smooth transition.

Fourth Quarter 2012 Results

Net sales were $90.4 million, compared with $92.1 million in the same quarter a year ago, a decrease of 1.8 percent, and net sales decreased 1.5 percent in local currencies. Operating income was $5.8 million, compared with $9.6 million in the same quarter a year ago, a decrease of 39.3 percent year over year.

2012 Annual Results

Net sales were $367.5 million, compared with $367.8 million in the same period a year ago, a decrease of 0.1 percent; however, net sales increased 1.0 percent in local currencies.

Operating income was $34.0 million, compared with $20.2 million, or an increase of 6.9 percent, compared with non-GAAP operating income of $34.9 million (excluding contract termination costs of $14.7 million) in the same period a year ago, a decrease of 2.6 percent year over year. Adjusted EBITDA was $41.0 million, compared with $42.8 million in the same period a year ago, a decrease of 4.2 percent.

Net income was $25.4 million, compared with net income of $17.6 million, or an increase of 44.2 percent, and compared with Non-GAAP net income of $27.6 million (excluding contract termination costs of $14.7 million) in the same period a year ago, a decrease of 8.0 percent year over year. Basic and diluted net income per share was $1.62 and $1.59, respectively, compared with basic and diluted net income per share of $1.13 and $1.12, respectively, for the same period a year ago.

The company’s board of directors declared a regular quarterly cash dividend of 10 cents per share payable on March 28, 2013 to shareholders of record as of the close of business on March 18, 2013. The quarterly dividend was doubled from 5 cents to 10 cents per share due to the company’s strong cash flow, its record high year-end cash balance of $79.2 million and the board’s commitment to return excess capital to shareholders.

For the fourth quarter net sales for NSP Americas, Asia Pacific and Europe were $49.7 million, compared with $51.6 million in the same quarter a year ago, a decrease of 3.7 percent. In local currencies, net sales decreased by 4.2 percent compared to the same quarter a year ago.

For NSP Russia, Central and Eastern Europe net sales were $15.9 million, compared with $14.6 million in the same quarter a year ago, an increase of 8.9 percent. For Synergy WorldWide net sales were $24.8 million, compared with $25.9 million in the same quarter a year ago, a decrease of 4.1 percent. In local currencies, net sales decreased 4.0 percent compared to the same quarter a year ago.


Reliv International Inc.

Reliv International Inc. (RELV—NASDAQ), a maker of nutritional supplements that promote optimal nutrition along with premium skincare products, reported its financial results for the fourth quarter and full year of 2012.

Fourth Quarter 2012 Results

Reliv reported net sales of $16.91 million for the fourth quarter of 2012, compared with sales of $16.89 million for the fourth quarter of 2011, an increase of 0.1 percent. U.S. sales declined by 3.2 percent for the quarter compared with the same quarter in 2011. International sales for the quarter increased 13.1 percent, led by significant growth in Europe, which reported an increase of 49.5 percent.

Reliv reported net income of $437,000, or 3 cents per diluted share, for the fourth quarter of 2012 compared with net income of $320,000, or 3 cents per diluted share, for the fourth quarter of 2011. Income from operations for the fourth quarter of 2012 was $611,000 compared with $471,000 in the same quarter of 2011.

2012 Annual Results

Reliv reported net sales of $68.71 million for 2012 compared with net sales of $73.88 million in 2011. U.S. net sales decreased from $60.88 million to $53.80 million. Net sales were particularly strong in Europe, where net sales increased by $2.73 million, or 72.7 percent.

Net income for 2012 was $1.36 million compared with $1.05 million in 2011. Diluted earnings per share were 11 cents in 2012 compared with 8 cents in 2011. Reliv had cash and cash equivalents of $5.80 million as of Dec. 31, 2012, a decrease of $1.37 million from the balance of the prior year period. Net cash generated from operating activities decreased to $2.47 million in 2012 from $2.79 million in 2011.

Reliv International Inc., based in Chesterfield, Mo., sells its products through an international network marketing system of independent distributors in 15 countries.


Blyth Inc.

Blyth Inc. (BTH—NYSE), a designer and marketer of health and wellness products, candles and accessories for the home, announced that it has declared a semi-annual dividend of 10 cents per share on the company’s common stock for the six months ended Dec. 31, 2012. The semi-annual dividend, authorized at the March 12, 2013 board of directors meeting, will be payable to shareholders of record as of April 1, 2013 and will be paid on April 15, 2013.

Blyth Inc., headquartered in Greenwich, Conn., is a direct to consumer business focused on both the direct selling and direct marketing channels. Its products are sold through PartyLite and ViSalus.


Educational Development Corp.

Educational Development Corp. (EDUC—NADSAQ) announced their quarterly cash dividend. The board of directors has authorized an 8 cents per share cash dividend. The dividend was payable on March 22, 2013 to shareholders of record March 15, 2013.

Educational Development Corp. sells children’s books, including Usborne Books and the Kane/Miller line of international children’s titles through a multi-level sales organization of independent consultants, through 5,000 retail stores and over the Internet.


Nu Skin Enterprises Inc.

Nu Skin Enterprises Inc. (NUS—NYSE) announced its board of directors has declared a quarterly dividend of 30 cents per share, which was payable on March 13, 2013 to stockholders of record on Feb. 22, 2013.

Nu Skin Enterprises Inc. demonstrates its tradition of innovation through its comprehensive anti-aging product portfolio, independent business opportunity and corporate social responsibility initiatives. A global direct selling company, Nu Skin operates in 53 markets worldwide.


Primerica Inc.

Primerica Inc. (PRI—NYSE), the largest independent financial services marketing company in North America, replaced The Shaw Group in the S&P MidCap Index after the close of trading on Tuesday, Feb. 12, 2013, according to S&P. To be included in this index, a company’s stock must have a total market capitalization that ranges from $750 million to $3 billion. Primerica currently has a market capitalization of approximately $1.9 billion.

Primerica Inc., headquartered in Duluth, Ga., is a distributor of financial products to middle-income families in North America. In addition, Primerica provides an entrepreneurial full or part-time business opportunity for individuals seeking to earn income by distributing the company’s financial products.


Direct Selling News has accumulated this information from public sources, including press releases and SEC filings. The information is presumed accurate and reliable. However, it is not an endorsement of any investment opportunity. Proper and considerable due diligence should be completed before making any investment.