Nature's Sunshine Products, a leading natural health and wellness company engaged in the manufacture and direct selling of nutritional and personal care products, today reported its financial results for the third quarter ended September 30, 2016.
During the third quarter, our global growth trends continued and we made good progress with our key product and new market initiatives, commented Gregory L. Probert, Chairman and Chief Executive Officer.
We achieved our 9th consecutive quarter of growth in both NSP United States and NSP Canada and continue to focus on the expansion of our patent-pending IN.FORM program.
Synergy WorldWide once again delivered strong results, led by double-digit growth at Synergy Asia Pacific and further improvements in Synergy Europe.
The recent launch of Elite Health in Europe, to be followed by further introductions in Asia in coming quarters, positions us well for further growth across our key Synergy WorldWide markets.
Mr. Probert continued, Development of our new market opportunity in China continues as we build the infrastructure in anticipation of our direct selling license being issued. We believe our product innovations and new market investments have us well-positioned for future growth.
Third Quarter 2016 Financial Highlights
- Net sales revenue of $85.4 million increased 7.4% compared to $79.6 million in the third quarter of 2015. On a local currency basis, net sales revenue increased 6.1% compared to the third quarter of 2015. Synergy Asia Pacific delivered 19.7% growth (12.5% in local currency) as compared to the third quarter of 2015. The quarter included incremental net sales revenue of $3.7 million related to China pre-opening product sales through Hong Kong. Net sales revenue was positively impacted by $1.0 million of favorable foreign currency exchange rate fluctuations, offset by a $1.0 million decline in net sales in the NSP Americas segment from Latin America.
- Net income from continuing operations was $3.9 million, or $0.22 per diluted common share, compared to $1.6 million, or $0.08 per diluted common share, in the third quarter of 2015.
- Adjusted EBITDA was $7.1 million, compared to $5.5 million in the third quarter of 2015. Adjusted EBITDA, which is a non-GAAP financial measure, is defined here as net income from continuing operations before taxes, depreciation, amortization and other income adjusted to exclude share-based compensation expense.
First 9 Months of 2016 Financial Highlights
- Net sales revenue of $257.2 million increased 5.1%, compared to $244.7 million in the first nine months of 2015. On a local currency basis, net sales revenue increased 6.2% compared to the first nine months of 2015. Net sales revenue growth, adjusted for foreign currency fluctuations, was largely driven by an $11.2 million, or 19.9% increase in the Synergy Asia Pacific region and an incremental net sales revenue increase of $8.1 million related to China pre-opening sales through Hong Kong, when compared to the first nine months of 2015. Net sales revenue was negatively impacted by a $2.3 million decline in NSP America sales from Latin America and a $1.4 million decline in net sales in the NSP Russia, Central and Eastern Europe segment. Additionally, net sales revenue was negatively impacted by $2.7 million of unfavorable foreign currency exchange rate fluctuations
- Net income from continuing operations was $8.1 million, or $0.46 per diluted common share, compared to $8.2 million, or $0.43 per diluted common share, in the first nine months of 2015. Earnings per diluted common share for the first nine months of 2016, were impacted by several factors including: the Company's investment in China of approximately $0.22 per share.
- Adjusted EBITDA was $17.4 million compared to $18.3 million in the first nine months of 2015.