January 01, 2014
Financial News, January 2014
Nu Skin Enterprises Inc.
Executives and employees from Nu Skin Enterprises Inc. (NUS—NYSE) visited the New York Stock Exchange on Wednesday, Nov. 20, 2013, to celebrate the company’s record growth. In honor of the occasion, Truman Hunt, President and CEO of Nu Skin, rang the NYSE Opening Bell.
“Nu Skin has achieved record revenue this year, highlighted by the introduction of ageLOC TR90, our new weight management system, as well as strong growth in sales leaders and consumers and solid results in all of our regions,” said Hunt. “It’s a privilege to celebrate these achievements with managers from around the world by ringing the bell at the New York Stock Exchange.”
Nu Skin Enterprises Inc. has a comprehensive anti-aging product portfolio and operates in 53 markets worldwide with more than 900,000 active distributors and preferred customers.
Primerica Inc. (PRI—NYSE), a distributor of financial products to middle income households in North America, announced financial results for the quarter ended Sept. 30, 2013. Total revenues were $319.5 million in the third quarter of 2013 and net income was $43.2 million, or 78 cents per diluted share.
In the third quarter of 2013 operating revenues increased by 8 percent to $319.9 million compared with $295.2 million in the third quarter of 2012. Results were driven by strong Investment and Savings Products performance and growth in Term Life net premium offset by a lower invested asset base from share repurchases over the last 12 months. Net operating income per diluted share increased 9 percent year-over-year to 78 cents for the quarter ended Sept. 30, 2013 and returns were strong with net income return on stockholders’ equity of 14.8 percent (15.8 percent on a net operating income and adjusted stockholders’ equity [ROAE] basis). Net operating income was $43.5 million in the third quarter of 2013 compared with $45.1 million in the year ago period.
As of Sept. 30, 2013, investments and cash totaled $1.91 billion compared with $1.88 billion as of June 30, 2013. The company’s invested asset portfolio had a net unrealized gain of $112.9 million (net of unrealized losses of $14.0 million) at Sept. 30, 2013, consistent with June 30, 2013.
Primerica Life Insurance Company’s statutory risk-based capital (RBC) ratio was estimated to be in excess of 480 percent as of Sept. 30, 2013, well positioned to support existing operations and fund future growth. Its debt-to-capital ratio was 23.9 percent Sept. 30, 2013.
The board of directors of Primerica approved payment of a quarterly dividend of 11 cents per share for the third quarter of 2013. The dividend was payable on Dec. 10, 2013, to stockholders of record as of Nov. 22, 2013.
Nature’s Sunshine Products Inc.
Nature’s Sunshine Products Inc. (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 third quarter ended Sept. 30, 2013.
For the Third Quarter of 2013 net sales revenue increased 1.3 percent to $92.5 million, compared to $91.2 million in the third quarter of 2012. In local currencies, net sales revenue increased by 2.4 percent.
Adjusted EBITDA decreased 18.4 percent to $8.5 million, compared to $10.4 million in the third quarter of 2012. Net income was $4.9 million, or 29 cents per diluted common share, compared to $6.4 million, or 40 cents per diluted common share in the third quarter of 2012.
Cash and cash equivalents as of Sept. 30, 2013 were $76.6 million, compared to $79.2 million as of Dec. 31, 2012. Shareholders’ equity as of Sept. 30, 2013 was $104.8 million, compared to $115.6 million as of Dec. 31, 2012.
For NSP Americas, Asia Pacific and Europe net sales revenue decreased 2.4 percent to $50.6 million, compared to $51.8 million in the third quarter of 2012. In local currencies, net sales revenue decreased by 0.7 percent compared to the third quarter of 2012. For NSP Russia, Central and Eastern Europe net sales revenue increased 10.5 percent to $14.6 million, compared to $13.2 million in the third quarter of 2012.
For Synergy WorldWide net sales revenue increased 4.0 percent to $27.3 million, compared to $26.3 million in the third quarter of 2012. This marks the highest quarterly sales in the segment’s history. In local currencies, net sales revenue increased by 4.6 percent compared to the third quarter of 2012.
The company’s board of directors approved its regular quarterly cash dividend of 10 cents per share payable on Nov. 18, 2013 to shareholders of record as of the close of business on Nov. 29, 2013.
On Aug. 8, 2013, the board of directors authorized a $10 million share repurchase program to be implemented over two years. During the three months ended Sept. 30, 2013, the company repurchased 107,722 shares of its common stock under the share repurchase program for $1.9 million. At Sept. 30, 2013, the remaining balance available for repurchases under the program was $8.1 million.
Mannatech Inc. (MTEX—NASDAQ), a leader in nutritional glycobiology and innovator of naturally sourced supplements based on Real Food Technology® solutions, reported net sales for the third quarter of 2013 were $44.4 million, an increase of 3.3 percent as compared to $43.0 million in the third quarter of 2012 and a net loss of $0.8 million, or 30 cents per diluted share, for the third quarter ending Sept. 30, 2013, as compared to a net income of $2.2 million, or 83 cents per diluted share, for the third quarter of 2012.
During the third quarter of 2013, the company implemented a global loyalty program for its associates and members who purchase products using a qualified automatic order. During the third quarter of 2013, the company deferred net sales of $2.5 million due to the loyalty program.
Net sales for Asia/Pacific increased 23.6 percent to $22.0 million as compared to $17.8 million in the third quarter 2012. Net sales for North America declined 9.7 percent to $18.7 million as compared to $20.7 million in the third quarter of 2012. Net sales for Europe, the Middle East and Africa declined 17.8 percent to $3.7 million as compared to $4.5 million in the third quarter of 2012.
Youngevity International Inc.
Youngevity International Inc. (YGYI—OTC.QX), a global direct marketer of nutritional and lifestyle products and also a vertically-integrated producer of fine coffees for the commercial, retail and direct sales channels, announced financial results for the third quarter of 2013.
For the three months ended Sept. 30, 2013, Youngevity International’s revenue increased 3.0 percent to $21.2 million compared to $20.6 million for the same period in fiscal 2012. The increase in revenue is attributed primarily to revenues of $0.5 million from Heritage Makers, Inc., acquired on Aug. 14, 2013.
Youngevity International’s gross profit for the three months ended Sept. 30, 2013 increased approximately 3.2 percent to $12.9 million compared to $12.5 million recorded in the same period last year.
For the three months ended Sept. 30, 2013, net income was $516,000 as compared to $236,000 for the same period in the previous year. The increase of $280,000 was attributable to the increase in income before income taxes of $366,000, offset by an increase in income tax provision of $86,000.
As of Sept. 30, 2013, the company’s cash and cash equivalents were approximately $4.4 million and working capital was approximately $1.5 million as compared to cash and cash equivalents of $3.0 million and working capital of $1.4 million as of Dec. 31, 2012.
Tupperware Brands Corp.
Tupperware Brands Corp. (TUP—NYSE), a portfolio of global direct selling companies, selling innovative, premium products across multiple brands and categories, announced record third quarter 2013 operating results.
Third quarter 2013 net sales were $603 million. Emerging markets, accounting for 69 percent of sales, achieved a 13 percent increase in local currency, driven by large populations, penetration of unserved and underserved consumers and emerging middle classes. Established markets were down 8 percent in local currency.
GAAP net income of $49.9 million versus $47.5 million in the prior year was up 5 percent in dollars and 17 percent in local currency. Adjusted diluted EPS of $1.00 included 9 cents of negative impact versus 2012 from changes in foreign exchange rates, which was 4 cents worse than assumed in July’s guidance.
September year-to-date cash flow from operating activities net of investing activities was $92 million, $21 million ahead of the same period last year.
In the third quarter, the company returned $132 million to shareholders through a dividend payout of $32 million and the repurchase of 1.21 million shares for $100 million. Since 2007, 19 million shares have been repurchased for $1.1 billion, with $872 million left under an authorization that runs until February 2017.
In the Europe market segment, sales were down 7 percent versus last year reported and down 6 percent in local currency. In Asia Pacific sales for the segment up 4 percent reported and 13 percent in local currency, driven by the emerging markets up 17 percent in local currency. Tupperware North America sales were up 2 percent in reported and in local currency. Beauty North America sales were down 12 percent reported and 13 percent in local currency.
Fuller Mexico sales were down 11 percent in local currency. BeautiControl sales were down 20 percent, largely a result of lower sales force size. South America sales were up 27 percent reported and 38 percent in local currency, primarily as a result of continued growth in Brazil that was up 36 percent in local currency driven by a larger sales force size.
Tupperware announced that its board of directors declared the company’s regular quarterly dividend of 62 cents per share, payable on Jan. 6, 2014, to shareholders of record as of Dec. 18, 2013.
Reliv International Inc.
Reliv International Inc. (RELV—NASDAQ), a maker of nutritional supplements that promote optimal health, reported its financial results for the third quarter of 2013.
Net sales for the quarter were $16.5 million, an 8.3 percent increase from the third quarter last year. Net U.S. sales totaled $13.2 million, an increase of $1.1 million, or 9.0 percent, compared to third-quarter 2012 net sales. Net sales outside of the United States rose 5.4 percent in the third quarter of 2013 compared to the prior-year quarter, led by the European market where net sales increased by 21.3 percent.
Income from operations for the third quarter of 2013 increased to $402,000 compared to a loss of $32,000 in the same quarter of 2012 due to the increase in net sales in the United States. Net income for the third quarter of 2012 included a one-time after-tax gain of approximately $247,000 resulting from a discounted balance due on a purchase agreement entered into in a previous year. As a result, net income for the third quarter of 2012 was $287,000 or 2 cents per diluted share, compared to net income for the third quarter of 2013 of $293,000 or 2 cents per diluted share.
Growth in Europe continued with net sales of $1.7 million in the third quarter of 2013 compared to $1.4 million in the prior-year third quarter.
Reliv also announced that the board of directors has declared a dividend of 1 cent per share to all shareholders of record as of Nov. 16, 2013, to be paid on or about Nov. 26, 2013. Reliv currently pays dividends twice a year, and this represents the company’s second dividend in 2013.
CVSL Inc. (CVSL—OTC.BB), an innovative public company pursuing a strategy of gathering together multiple companies in the direct selling, or micro-enterprise, sector, announced financial results for the third quarter. CVSL recorded revenues of $23.7 million for the quarter, an increase of $3.6 million, or 18 percent over the second quarter.
A highlight of the quarterly results was a marked improvement in the financial performance of The Longaberger Co., which is the largest company owned by CVSL during the quarter. CVSL’s operating results improved by $2.1 million compared to the previous quarter. Most of the improvement is the result of increased revenues at Longaberger, combined with cost containment initiatives that were launched at Longaberger during the second quarter and which began to have a positive effect during the third quarter. Another accomplishment during the quarter was continued significant progress toward reducing debt at The Longaberger Co.
CVSL’s combined annualized revenue from Longaberger, Your Inspiration At Home, Tomboy Tools and Agel Enterprises exceeds $140 million. CVSL continues to aggressively pursue additional acquisitions.