Nature’s Sunshine Products 1.3% Growth in Q2 – 2012 To $93 Million

 

LEHI, Utah, Aug. 1, 2012  — Nature's Sunshine Products, Inc. (Nasdaq:NATR), including its subsidiary Synergy Worldwide, Inc., a leading natural health and wellness company engaged in the manufacture and direct selling of nutritional and personal care products, today reported its consolidated financial results for the second quarter ended June 30, 2012, and declared a quarterly cash dividend.

For the Second Quarter of 2012:

• Net sales were $93.0 million, compared with $91.8 million in the same quarter a year ago, an increase of 1.3 percent.
   
• As of June 30, 2012, active Managers worldwide were 29,100, a decrease of 1.7 percent from June 30, 2011, while active Distributors and customers worldwide were 656,500, a decrease of 2.8 percent from the end of the quarter a year ago.
   
• Operating income was $10.3 million, compared with $8.1 million in the same quarter a year ago, an increase of 28.1 percent.
   
• Adjusted EBITDA, defined here as net income before taxes, depreciation and amortization, and other income, and adjusted to exclude share-based compensation expense, was $11.9 million, compared with $10.2 million in the same quarter a year ago, an increase of 17.3 percent.
   
• Net income was $7.3 million, compared with net income of $5.6 million in the same quarter a year ago, an increase of 29.8 percent.
   
• Basic and diluted net income per share was $0.47 and $0.46, respectively, compared with earnings per share of $0.36 and $0.36, for the same quarter a year ago.
   
• As of June 30, 2012, shareholders' equity was $102.6 million, compared to $87.4 million on December 31, 2011, an increase of 17.3 percent.

For the First Six Months of 2012:

• Net sales were $185.9 million, compared with $184.7 million in the same period a year ago, an increase of 0.7 percent.
   
• Operating income was $19.5 million, compared with $15.7 million in the same period a year ago, an increase of 24.3 percent.
   
• Adjusted EBITDA, defined here as net income before taxes, depreciation and amortization, and other income, and adjusted to exclude share-based compensation expense, was $22.8 million, compared with $18.9 million in the same period a year ago, an increase of 20.5 percent.
   
• Net income was $14.5 million, compared with net income of $12.2 million in the same period a year ago, an increase of 18.6 percent.
   
• Basic and diluted net income per share was $0.93 and $0.91, respectively, compared with earnings per share of $0.79 and $0.78, for the same period a year ago, respectively.

NSP United States Segment Results for the Second Quarter:

Net sales were $35.5 million, compared with $35.9 million in the same quarter a year ago, a decrease of 1.0 percent. Active Managers within NSP United States totaled approximately 5,800 and 6,200 at June 30, 2012 and 2011, respectively. Active Distributors and customers within NSP United States totaled approximately 193,700 and 194,200 at June 30, 2012 and 2011, respectively. Managers and Distributors within NSP United States are predominantly practitioners of nutritional supplement therapies and retailers or consumers of our products.

The number of active Managers, Distributors and customers decreased due to lower retention, partially offset by a modest improvement in recruiting. Net sales for NSP United States core products (Herbal Products, Vitamin, Mineral, and Other Nutritional Supplements, and Personal Care Products) increased by 0.3%, but were offset by the discontinuance of non-core products (other products including essential oils, sales aids and other miscellaneous products).
 

Operating income was $4.2 million, compared with $3.7 million in the same quarter a year ago, an increase of 13.4 percent. The increase in operating income is due primarily to a reduction of the cost of goods sold.