October 01, 2013
Financial News, October 2013
Nu Skin Enterprises Inc.
Nu Skin Enterprises Inc. (NUS—NYSE), a global anti-aging company, announced record second quarter results with revenue of $682.9 million, a 15 percent increase over the prior-year period. Revenue for the quarter was negatively impacted 3 percent by foreign currency fluctuations. Quarterly earnings per share increased 30 percent to $1.22 from 94 cents in the prior year.
In Greater China, second quarter revenue increased 35 percent to $269.1 million, compared to $199.7 million in the prior year, which included approximately $100 million in product launch revenue. Revenue in North Asia was $196.8 million, compared to $177.7 million for the same period of 2012. South Asia/Pacific had revenue of $85.9 million, a 13 percent decline compared to the prior year. Revenue in the prior year included approximately $40 million in product launch sales. Revenue in the Americas improved 17 percent to $84.3 million, compared to $71.8 million in the prior-year period. In the EMEA region, revenue was $46.8 million, a 2 percent improvement over the prior-year period.
The company’s operating margin was 16.8 percent for the quarter, compared to 16.5 percent, while gross margin was 83.7 percent, compared to 83.9 percent in the prior year.
Nu Skin also announced that its board of directors has authorized a $400 million extension to the company’s existing stock repurchase authorization. The board last increased the stock repurchase authorization by $250 million in May 2012.
The board of directors has also declared a quarterly dividend of 30 cents per share, which was payable on Sept. 11, 2013, to stockholders of record on Aug. 23, 2013.
Mannatech Inc. (MTEX—NASDAQ), a developer and provider of nutritional supplements and skincare products based on Real Food Technology® solutions, reported a net income of $0.8 million, or 30 cents per diluted share, for the second quarter ending June 30, 2013, as compared to a net loss of $2.5 million, or 93 cents per diluted share, for the second quarter of 2012. Net sales for the second quarter of 2013 were $44.8 million, an increase of 2.7 percent as compared to $43.6 million in the second quarter of 2012.
Net sales for North America declined 6.6 percent to $21.3 million as compared to $22.8 million in the second quarter of 2012. Net sales for Asia/Pacific increased 17.1 percent to $19.9 million as compared to $17.0 million in the second quarter 2012 due to an increase in the number of active associates. Net sales for Europe, the Middle East and Africa declined 5.2 percent to $3.6 million as compared to $3.8 million in the second quarter of 2012. This decline was due to the unfavorable impact on net sales of fluctuations in foreign currency exchange rates.
Medifast Inc. (MED—NYSE), a U.S. manufacturer and provider of clinically proven, portion-controlled weight-loss products and programs, reported financial results for the second quarter ended June 30, 2013.
For the second quarter, Medifast net revenue increased 4 percent to $97.1 million from net revenue of $93.6 million in the second quarter of 2012.
Revenue in the direct sales channel, Take Shape For Life, increased 10 percent to $61.4 million in the second quarter of 2013, compared to $55.7 million in the same period last year. Growth in revenue for Take Shape For Life was driven by increased customer product sales and improvements in the company’s pricing and discounting structure.
Gross profit for the second quarter of 2013 increased 4 percent to $72.9 million, compared to $70.1 million in the second quarter of the prior year. The company’s gross profit margin increased 10 basis points to 75.1 percent in the second quarter, versus 75.0 percent in the second quarter of 2012.
Operating income was $10.6 million, or 11.0 percent of net revenue, compared to $4.6 million, or 4.9 percent of net revenue in the second quarter of 2012. Excluding the previously disclosed FTC charge in the second quarter of 2012, operating income increased $2.3 million or 210 basis points. Operating income for the second quarter of 2012 would have been $8.3 million or 8.9 percent of net revenue excluding the one-time expense.
Net income was $7.1 million, or 51 cents per diluted share, based on approximately 14.0 million shares outstanding, compared to net income last year of $2.8 million, or 20 cents per diluted share. Excluding the FTC charge, net income in the second quarter of 2012 would have been $6.5 million, or 47 cents per diluted share.
Nature’s Sunshine Products Inc.
Nature’s Sunshine Products Inc. (NSP) (NATR—NASDAQ), a natural health and wellness company, reported its consolidated financial results for the second quarter.
For the second quarter of 2013, net sales were $93.7 million, compared with $93.0 million in the same quarter a year ago, an increase of 0.7 percent, and net sales increased 1.4 percent in local currencies.
Operating income was $7.8 million, compared with $10.3 million in the same quarter a year ago, a decrease of 24.2 percent.
Adjusted EBITDA was $9.7 million, compared with $11.9 million in the same quarter a year ago, a decrease of 18.8 percent.
Net income was $6.1 million, compared with $7.3 million in the same quarter a year ago, a decrease of 16.9 percent. Basic and diluted net income per share was 38 cents, compared to 47 cents and 46 cents, respectively, for the same quarter a year ago.
Cash and cash equivalents of $87.3 million were a record high, up from $79.2 million at Dec. 31, 2012.
Net sales in NSP Americas, Asia Pacific and Europe were $53.4 million, compared with $53.5 million in the same quarter a year ago, a decrease of 0.2 percent. In local currencies, net sales increased by 0.7 percent compared to the same quarter a year ago.
Net sales in NSP Russia, Central and Eastern Europe were $15.0 million, compared with $13.2 million in the same quarter a year ago, an increase of 13.4 percent. Net sales increased year-over-year for the third consecutive quarter.
Synergy WorldWide net sales were $25.3 million, compared with $26.2 million in the same quarter a year ago, a decrease of 3.7 percent.
The company’s board of directors declared a special one-time cash dividend of $1.50 per share in addition to its recurring quarterly cash dividend of 10 cents per share, payable on Aug. 29, 2013, to shareholders of record as of the close of business on Aug. 19, 2013. The amount of the cash dividends was expected to be approximately $25.6 million. In addition, the board of directors authorized a $10 million share repurchase program to be implemented over two years.
The special one-time cash dividend and share repurchase program is due to the company’s strong cash flow and its record high quarter-end cash balance of $87.3 million.
Relìv International Inc.
Relìv International Inc. (RELV—NASDAQ), a maker of nutritional supplements that promote optimal health, reported its financial results for the second quarter of 2013.
Net sales for the quarter were $15.4 million, an 8.1 percent decrease from the second quarter last year. Net U.S. sales totaled $11.8 million, down from second quarter 2012 net sales of $12.9 million. Net sales outside of the United States declined 6.3 percent in the second quarter of 2013, compared to the prior year quarter as net sales declined by 46.5 percent in Asia, offset by sales increases of 12.6 percent in Europe and 9.2 percent in Australia/New Zealand.
The net loss for the second quarter of 2013 was ($214,000) or (2 cents) per diluted share, compared to net income of $103,000 or 1 cent per diluted share in the 2012 second quarter.
Net sales in Europe increased to $1.96 million in the second quarter of 2013, compared to $1.74 in the prior-year second quarter.
Australia/New Zealand increased net sales to $524,000 in the second quarter of 2013, compared to $480,000 in the same quarter in 2012.
ForeverGreen Worldwide Corp.
ForeverGreen Worldwide Corp. (FVRG—OTC.BB), a provider of nutritional foods and other healthy products, announced Q2 2013 earnings, for the quarter ended June 30, 2013.
Sales increased to $4.01 million from $3.12 million for Q2 2012, a 28.4 percent increase. Net loss for the quarter was $5,383 or zero cents EPS versus a net loss of $38,772 or zero cents EPS during the comparable period during 2012. Operating Income increased to $92,653 or 1 cent, compared to $21,389 or zero cents EPS during Q2 2012. Net cash provided by operating activities for Q2 2013 was $205,716. Cash increased to $224,051 from $191,187 on March 31, 2013.
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 semiannual dividend of 10 cents per share on the company’s common stock for the six months ended June 30, 2013. The semiannual dividend, authorized at the Aug. 8, 2013, board of directors meeting, will be payable to shareholders of record as of Oct. 1, 2013, and will be paid on Oct. 15, 2013.
Blyth Inc., headquartered in Greenwich, Conn., is a direct to consumer business focused on the direct selling and direct marketing channels.
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