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July 01, 2010

Financial News

Financial News, July 2010


First-Quarter 2010 Results

Medifast Inc. Up 75%

Medifast Inc. (MED—NYSE) reported net revenue for the first quarter of 2010 increased 75 percent year over year to $60.6 million, compared to $34.6 million in 2009. Take Shape for Life revenue increased 94 percent year over year to $37.6 million. Active health coaches increased 78 percent to 7,100 coaches, compared to 4,000 last year, and diluted earnings per share increased 94 percent to 33 cents, compared to 17 cents last year.

“We continue to experience very strong growth in each of our multiplatform distribution channels. Increasingly, the Take Shape for Life, Direct Response and Medifast Weight Control Center channels are providing a complimentary source of support for health coaches and clients to connect and share Medifast’s clinically proven weight-loss programs,” said Medifast Chief Executive Officer Michael S. McDevitt. “We will expand our platform by strategically investing in our infrastructure and enhancing our message to reach more consumers in both new and existing markets in the future.”

Medifast is the leading easy-to-use, clinically proven, portion-controlled weight-loss program. The company sells its products and programs via four unique distribution channels: the Web and national call centers, the Take Shape for Life direct selling division, a national network of physicians, and medically supervised Medifast Weight Control Centers.

Nu Skin Enterprises Inc.

Nu Skin Enterprises Inc. (NUS—NYSE) announced first-quarter revenue of $364.1 million, a 23 percent improvement over the prior-year period. Quarterly revenue was positively impacted 8 percent by foreign currency fluctuations. Earnings per share for the quarter were 48 cents, a 153 percent improvement, or 71 percent when excluding restructuring charges of approximately 9 cents per share included in the prior-year results.

Nu Skin Enterprises Inc. is a global direct selling company operating in 48 markets throughout Asia, the Americas and Europe with a salesforce of more than 760,000. The company markets premium-quality personal-care products under the Nu Skin brand, science-based nutritional supplements under the Pharmanex brand, and technology-based products and services under the Big Planet brand.

Primerica Inc.

Primerica Inc. (PRI—NYSE) announced net income was $143.3 million and $112.6 million for the first quarters of 2010 and 2009, respectively. Total revenues for first-quarter 2010 were $606.9 million, compared with $542.8 million for first-quarter 2009. The total number of recruits was up slightly to 58,085 for first-quarter 2010 from 57,623 a year ago. The company’s life-licensed insurance salesforce experienced a modest decline of 3 percent to 97,354 as of March 31, 2010, from 100,409 as of March 31, 2009.

Primerica, based in Duluth, Ga., is a leading distributor of financial products to middle-income households in North America with approximately 100,000 licensed representatives. The company and its representatives offer clients term-life insurance, mutual funds, variable annuities and other financial products. Primerica insures 4.3 million lives, and more than 2 million clients maintain investment accounts with the company.

Herbalife Ltd.

Herbalife Ltd. (HFL—NYSE) reported first-quarter net sales increased 18.6 percent to $618.6 million and local currency net sales increased 13.3 percent compared to the same period in 2009. For the quarter-ended March 31, 2010, the company reported net income of $51.9 million, or 83 cents per diluted share, compared to $41.5 million or 67 cents per diluted share in the first quarter of  2009.
Herbalife is a global network marketing company that sells nutritional supplements and weight-management and personal-care products intended to support a healthy lifestyle. Herbalife products are sold in 73 countries through a network of more than 2.1 million independent distributors.

Avon Products Inc.

Avon Products Inc. (AVP—NYSE) reported first-quarter 2010 total revenue of $2.5 billion, 14 percent higher than first-quarter 2009 and up 8 percent on a constant-dollar basis, as foreign exchange contributed 6 percentage points to growth. Active representatives grew 6 percent, with growth in all regions except China.

Avon, the company for women, is a leading global beauty company, with more than $10 billion in annual revenue. As the world’s largest direct seller, Avon markets to women in more than 100 countries through more than 6 million independent Avon sales representatives.

Relìv International

Relìv International Inc. (RELV—NASDAQ) reported that sales and earnings in the first quarter of 2010 were below last year’s first-quarter results, but that sales outside of the United States rose during the period. Net sales were $22.7 million, a decline of 4.5 percent from the first quarter of 2009. U.S. sales declined 9 percent and international sales rose 36.1 percent, with approximately half of the increase due to currency fluctuations.
Relìv International Inc., based in Chesterfield, Mo., is a developer, manufacturer and marketer of a proprietary line of nutritional supplements. Relìv sells its products through an international network marketing system of approximately 67,940 independent distributors.

Nature’s Sunshine Products Inc.

Nature’s Sunshine Products Inc. (NATR—NASDAQ) reported an increase in net sales of 4.7 percent to $87.0 million for the first quarter of 2010, compared with $83.2 million for the same period in 2009. As of March 31, 2010, active managers totaled 29,900, compared to 28,700 at Dec. 31, 2009. Active distributors totaled 693,200, compared to 697,200 at Dec. 31,  2009.

Nature’s Sunshine Products manufactures and markets encapsulated and tableted herbal products, high-quality natural vitamins and other complementary products through direct sales. The company has operations worldwide and exclusive distribution agreements with selected companies in Argentina, Australia, Chile, New Zealand and Norway.

Mannatech Inc.

Mannatech Inc. (MTEX—NASDAQ) reported a net loss of $2.8 million, or 11 cents per diluted share, for the first quarter ending March 31, 2010, compared to a net loss of $4.8 million, or 18 cents per diluted share, for the first quarter of 2009. First-quarter net sales for 2010 were $60.7 million, a decrease of 14.2 percent, compared to $70.7 million in the first quarter of 2009. New independent associates and members totaled 20,913 in the first quarter of 2010, compared to 36,462 in the first quarter of 2009.

Mannatech Inc. is a global wellness-solutions provider of innovative, high-quality, proprietary dietary supplements, skincare products, and weight and fitness products sold through independent associates and members worldwide.

RBC Life Sciences Inc.

RBC Life Sciences Inc. (RBCL—OTC BB) reported companywide net sales of $7.0 million for the first-quarter ended March 31, 2010, compared to net sales of $6.0 million for the same period during 2009, an increase of 16 percent. The company also reported net earnings of $211,000, or a penny per share, during the first quarter of 2010, compared to a net loss of $171,000, or a penny per share, during the same quarter in 2009.

RBC Life Sciences develops, manufactures and markets high-quality nutritional supplements and personal care products to a growing population of consumers seeking wellness and a healthy lifestyle.


Dividend Report

Herbalife Ltd.

Herbalife Ltd. (HLF—NYSE) reported that its board of directors approved a quarterly cash dividend of 20 cents per share to shareholders of record effective May 10, 2010, payable on May 24, 2010.
Herbalife is a global network marketing company that sells weight-management, nutritional supplements and personal-care products intended to support a healthy lifestyle. Herbalife products are sold in 72 countries through a network of more than 2 million independent distributors.

Avon Products Inc.

Avon Products Inc. (AVP—NYSE) declared a regular quarterly dividend on its common stock of 22 cents per share, payable June 1, 2010, to shareholders of record May 20, 2010.

Avon, the company for women, is a leading global beauty company, with more than $10 billion in annual revenue. As the world’s largest direct seller, Avon markets to women in more than 100 countries through more than 6 million independent Avon sales representatives.

Tupperware Brands Corporation

Tupperware Brands Corporation (TUP—NYSE) announced that its board of directors declared the company’s regular quarterly dividend of 25 cents per share, payable on July 6, 2010, to shareholders of record as of June 18, 2010.

Tupperware Brands Corporation is a portfolio of global direct selling companies, selling premium innovative products across multiple brands and categories through an independent salesforce of 2.4 million.

Relív International Inc.

Relív International Inc. (RELV—Nasdaq) announced that the board of directors has declared a dividend of 2 cents per share to all holders of record as of May 24, 2010, to be paid on or about June 3, 2010.

Relív International Inc., based in Chesterfield, Mo., is a developer, manufacturer and marketer of a proprietary line of nutritional supplements. Relív sells its products through an international network marketing system of approximately 66,000 independent distributors.


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.