Actionable news
0
All posts from Actionable news
Actionable news in NUS: NUSKIN ENTERPRISES Inc,

Nu Skin: Press Release Dated October 29, 2015 FOR IMMEDIATE RELEASE CONTACTS: Investors

The following excerpt is from the company's SEC filing.

Scott Pond (801) 345-2657,

spond@nuskin.com

Media

Kara Schneck (801) 345-2116,

kschneck@nuskin.com

NU SKIN ENTERPRISES REPORTS THIRD-QUARTER 2015 RESULTS

PROVO, Utah — Oct. 29, 2015 — Nu Skin Enterprises, Inc. (NYSE: NUS) today announced third-quarter results, with revenue of $571.3 million compared to $638.8 million in the prior-year period. Revenue improved on a sequential basis and was relatively even with the prior year in constant currency, but was negatively impacted 10 percent by foreign currency fluctuations. Revenue in the prior year was positively impacted by $81 million of product launch volume, versus $47 million in the third quarter of 2015. Earnings per share of $0.28 were significantly impacted by several factors, including a $37.9 million charge, or approximately $0.43 per share, to write down inventory in China, foreign currency translation expenses of approximately $0.13 per share, and a higher-than-normal tax rate primarily related to the inventory write down.

"Our business continued to progress sequentially in each quarter of 2015, with constant-currency revenue improving in the third quarter to be even with the prior year," said Truman Hunt, president and chief executive officer. "We kicked off our current business cycle with a third-quarter introduction of our ageLOC Youth anti-aging supplement in the South Asia/Pacific region. This introduction generated local-currency sales growth of 44 percent, or 22 percent on a reported basis over the prior year, with a 36 percent sequential increase in sales leaders. We expect to see continued trend improvement in the fourth quarter with the introduction of ageLOC Youth in the Americas and our ageLOC Me customized skin care system in the North Asia region.

-more-

Page 2

"While we are excited about our upcoming product introductions and anticipate continued improvements in our global business, the Greater China region underperformed in the quarter," continued Hunt. "Results for the region were impacted by a combination of lower-than-expected sales of our cosmetic oils, and the scale back of product promotions during the quarter that were being used to reduce inventory levels. Economic conditions may have also impacted results. Looking forward, we believe the Greater China business will benefit by focusing sales leaders on the upcoming launch of our ageLOC Me skin care system rather than focusing on discounted product promotions. These factors resulted in a decision to take an inventory write-down charge."

Regional Results

The company's regional revenue results for the three-month periods ended September 30 are presented in the following table.

Change

Constant Currency

% Change

188,669

226,744

167,748

205,488

(6%)

108,857

88,915

70,775

76,737

(8%)

35,259

40,916

571,308

638,800

*Less than 1% change.

Mainland China revenue declined eight percent in local currency and 10 percent on a reported basis. Taiwan and Hong Kong declined 32 percent and 30 percent, respectively, due primarily to a large product introduction in the prior-year quarter.

Page 3

The company's regional revenue results for the nine-month periods ended September 30 are presented in the following table.

576,172

735,542

512,757

596,944

(4%)

247,697

241,762

234,115

246,557

(5%)

104,108

139,083

1,674,849

1,959,888

(7%)

The company's regional actives and sales leaders statistics are presented in the following table.

As of September 30, 2015

As of September 30, 2014

% Increase (Decrease)

Actives

Sales Leaders

211,000

25,044

238,000

24,823

374,000

18,038

398,000

17,153

(6%)

120,000

121,000

178,000

186,000

110,000

113,000

(3%)

993,000

65,089

1,056,000

61,204

"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 and gross margins were both negatively impacted by the China inventory write-down. Operating margin for the quarter was 7.4 percent, compared to 16.4 percent in the third quarter of 2014. Excluding the...


More