Nature's Sunshine Reports Fourth Quarter and Full Year 2024 Financial Results
Nature's Sunshine (NATR) reported Q4 2024 financial results with net sales up 8.5% to $118.2 million (10% in constant currency). The quarter saw a GAAP net loss of $0.3 million ($(0.02) per share), compared to net income of $9.0 million ($0.46 per share) in Q4 2023. Adjusted EBITDA increased 6% to $10.3 million.
For full-year 2024, net sales grew 2.0% to $454.4 million, with GAAP net income of $7.7 million ($0.40 per share), down from $15.1 million ($0.77 per share) in 2023. Key highlights include:
- 21% growth in Asia Pacific region
- 17% increase in North America digital sales
- Gross margin improved to 72.0% in Q4
- Company repurchased 540,000 shares at $16.42 per share
For 2025, the company projects net sales between $445-470 million and adjusted EBITDA of $38-44 million.
Nature's Sunshine (NATR) ha riportato i risultati finanziari del quarto trimestre 2024, con vendite nette in aumento dell'8,5% a 118,2 milioni di dollari (10% in valuta costante). Nel trimestre si è registrata una perdita netta GAAP di 0,3 milioni di dollari ($(0,02) per azione), rispetto a un utile netto di 9,0 milioni di dollari ($0,46 per azione) nel quarto trimestre 2023. L'EBITDA rettificato è aumentato del 6% a 10,3 milioni di dollari.
Per l'intero anno 2024, le vendite nette sono cresciute del 2,0% a 454,4 milioni di dollari, con un utile netto GAAP di 7,7 milioni di dollari ($0,40 per azione), in calo rispetto ai 15,1 milioni di dollari ($0,77 per azione) del 2023. I punti salienti includono:
- Crescita del 21% nella regione Asia-Pacifico
- Aumento del 17% delle vendite digitali in Nord America
- Il margine lordo è migliorato al 72,0% nel quarto trimestre
- L'azienda ha riacquistato 540.000 azioni a 16,42 dollari per azione
Per il 2025, l'azienda prevede vendite nette tra 445 e 470 milioni di dollari e un EBITDA rettificato di 38-44 milioni di dollari.
Nature's Sunshine (NATR) reportó los resultados financieros del cuarto trimestre de 2024, con ventas netas que aumentaron un 8.5% a 118.2 millones de dólares (10% en moneda constante). En el trimestre se registró una pérdida neta GAAP de 0.3 millones de dólares ($(0.02) por acción), en comparación con una ganancia neta de 9.0 millones de dólares ($0.46 por acción) en el cuarto trimestre de 2023. El EBITDA ajustado aumentó un 6% a 10.3 millones de dólares.
Para el año completo de 2024, las ventas netas crecieron un 2.0% a 454.4 millones de dólares, con una ganancia neta GAAP de 7.7 millones de dólares ($0.40 por acción), una disminución respecto a los 15.1 millones de dólares ($0.77 por acción) en 2023. Los aspectos más destacados incluyen:
- Crecimiento del 21% en la región de Asia-Pacífico
- Aumento del 17% en las ventas digitales en América del Norte
- El margen bruto mejoró al 72.0% en el cuarto trimestre
- La empresa recompró 540,000 acciones a 16.42 dólares por acción
Para 2025, la empresa proyecta ventas netas entre 445 y 470 millones de dólares y un EBITDA ajustado de 38-44 millones de dólares.
Nature's Sunshine (NATR)는 2024년 4분기 재무 결과를 발표했으며, 순매출이 8.5% 증가하여 1억 1820만 달러(상수 통화 기준 10%)에 달했습니다. 이번 분기에는 GAAP 기준으로 30만 달러(주당 $(0.02))의 순손실이 발생했으며, 이는 2023년 4분기 900만 달러(주당 $0.46)의 순이익과 비교됩니다. 조정된 EBITDA는 6% 증가하여 1030만 달러에 이르렀습니다.
2024년 전체 연도에 대해 순매출은 2.0% 증가하여 4억 5440만 달러에 도달했으며, GAAP 기준 순이익은 770만 달러(주당 $0.40)로, 2023년의 1510만 달러(주당 $0.77)에서 감소했습니다. 주요 하이라이트는 다음과 같습니다:
- 아시아 태평양 지역에서 21% 성장
- 북미 디지털 판매 17% 증가
- 4분기 총 마진이 72.0%로 개선됨
- 회사가 주당 16.42달러에 54만 주를 재매입함
2025년에는 회사가 4억 4500만에서 4억 7000만 달러 사이의 순매출과 3800만에서 4400만 달러 사이의 조정된 EBITDA를 예상하고 있습니다.
Nature's Sunshine (NATR) a annoncé les résultats financiers du quatrième trimestre 2024, avec des ventes nettes en hausse de 8,5 % à 118,2 millions de dollars (10 % en monnaie constante). Le trimestre a enregistré une perte nette GAAP de 0,3 million de dollars ($(0,02) par action), contre un bénéfice net de 9,0 millions de dollars ($0,46 par action) au quatrième trimestre 2023. L'EBITDA ajusté a augmenté de 6 % pour atteindre 10,3 millions de dollars.
Pour l'année entière 2024, les ventes nettes ont augmenté de 2,0 % pour atteindre 454,4 millions de dollars, avec un bénéfice net GAAP de 7,7 millions de dollars ($0,40 par action), en baisse par rapport à 15,1 millions de dollars ($0,77 par action) en 2023. Les faits saillants comprennent :
- Croissance de 21 % dans la région Asie-Pacifique
- Augmentation de 17 % des ventes numériques en Amérique du Nord
- La marge brute s'est améliorée à 72,0 % au quatrième trimestre
- L'entreprise a racheté 540 000 actions à 16,42 dollars par action
Pour 2025, l'entreprise prévoit des ventes nettes entre 445 et 470 millions de dollars et un EBITDA ajusté de 38 à 44 millions de dollars.
Nature's Sunshine (NATR) hat die finanziellen Ergebnisse für das vierte Quartal 2024 veröffentlicht, mit einem Anstieg der Nettoumsätze um 8,5% auf 118,2 Millionen Dollar (10% in konstanten Währungen). Im Quartal gab es einen GAAP-Nettoverlust von 0,3 Millionen Dollar ($(0,02) pro Aktie), verglichen mit einem Nettogewinn von 9,0 Millionen Dollar ($0,46 pro Aktie) im vierten Quartal 2023. Das bereinigte EBITDA stieg um 6% auf 10,3 Millionen Dollar.
Für das Gesamtjahr 2024 wuchsen die Nettoumsätze um 2,0% auf 454,4 Millionen Dollar, mit einem GAAP-Nettoergebnis von 7,7 Millionen Dollar ($0,40 pro Aktie), ein Rückgang von 15,1 Millionen Dollar ($0,77 pro Aktie) im Jahr 2023. Zu den wichtigsten Punkten gehören:
- 21% Wachstum in der Region Asien-Pazifik
- 17% Anstieg der digitalen Verkäufe in Nordamerika
- Bruttomarge verbesserte sich im vierten Quartal auf 72,0%
- Das Unternehmen hat 540.000 Aktien zu je 16,42 Dollar zurückgekauft
Für 2025 prognostiziert das Unternehmen Nettoumsätze zwischen 445 und 470 Millionen Dollar sowie ein bereinigtes EBITDA von 38 bis 44 Millionen Dollar.
- Q4 revenue growth of 8.5% to $118.2 million
- 21% growth in Asia Pacific region
- 17% increase in North America digital sales
- Q4 gross margin improvement to 72.0%
- Strong cash position of $84.7 million with no debt
- Active share repurchase program with 540,000 shares bought
- Q4 GAAP net loss of $0.3 million vs $9.0 million profit year-ago
- Full-year net income declined to $7.7 million from $15.1 million in 2023
- Operating income margin decreased to 3.8% in Q4 from 5.2% year-ago
- Higher tax provision of $10.5 million vs $3.8 million in 2023
- Foreign exchange losses impacting financial results
- NSP China income decreased to $1.0 million from $6.7 million year-ago
Insights
Nature's Sunshine's Q4 2024 results present a mixed financial picture with operational growth counterbalanced by bottom-line challenges. The 8.5% revenue increase to
However, the bottom-line shows concerning deterioration. The company swung to a Q4 net loss of
The conservative 2025 guidance (
Nature's Sunshine's strategic execution shows regional variance that reveals both strengths and weaknesses in their global approach. The 21% Asia Pacific growth demonstrates effective market penetration in a high-potential region where wellness products are seeing accelerating demand. Similarly, the 17% increase in North American digital sales indicates successful digital transformation initiatives that are essential in today's omnichannel retail environment.
However, the meaningful gap between revenue growth and profitability metrics reveals potential strategic misalignments. Despite implementing cost-saving initiatives that improved gross margin slightly to
The increased volume incentives (
LEHI, Utah, March 11, 2025 (GLOBE NEWSWIRE) -- Nature’s Sunshine Products, Inc. (Nasdaq: NATR) (“Nature’s Sunshine” and/or the “Company”), a leading manufacturer of high-quality herbal and nutritional supplements, reported financial results for the fourth quarter and full year ended December 31, 2024.
Fourth Quarter 2024 Financial Summary vs. Same Year-Ago Quarter
- Net sales were up
8.5% to$118.2 million compared to$108.9 million (up10.0% in constant currency). - GAAP net loss attributable to common shareholders of
$0.3 million , or$(0.02) per diluted share, compared to net income of$9.0 million , or$0.46 per diluted share. - Adjusted EBITDA up
6% to$10.3 million compared to$9.7 million .
Full Year 2024 Financial Summary vs. 2023
- Net sales were up
2.0% to$454.4 million compared to$445.3 million (up3.8% in constant currency). - GAAP net income attributable to common shareholders of
$7.7 million , or$0.40 per diluted share, compared to$15.1 million , or$0.77 per diluted share. - Adjusted EBITDA up
0.3% to$40.5 million compared to$40.4 million .
Management Commentary
“The fourth quarter was one of our strongest quarters ever, with revenue of
“As we move into 2025, we reiterate our commitment to delivering the highest quality, innovative products to our customers and to empowering our distributor base to drive continued growth and profitability. Combining that with our cost-savings initiatives and operational efficiencies, which are already making a positive impact, will enable us to continue making strong progress against our strategic initiatives while delivering long-term, sustainable shareholder value in the face of increased macroeconomic uncertainty.”
Fourth Quarter 2024 Financial Results
Net Sales by Operating Segment (Amounts in Thousands) | |||||||||||||||
Three Months Ended December 31, 2024 | Three Months Ended December 31, 2023 | Percent Change | Impact of Currency Exchange | Percent Change Excluding Impact of Currency | |||||||||||
Asia | $ | 56,297 | $ | 47,813 | 17.7 | % | $ | (1,469 | ) | 20.8 | % | ||||
Europe | 21,324 | 19,691 | 8.3 | 107 | 7.7 | ||||||||||
North America | 35,130 | 35,706 | (1.6 | ) | (75 | ) | (1.4 | ) | |||||||
Latin America and Other | 5,454 | 5,726 | (4.8 | ) | (210 | ) | (1.1 | ) | |||||||
$ | 118,205 | $ | 108,936 | 8.5 | % | $ | (1,647 | ) | 10.0 | % |
Net sales in the fourth quarter of 2024 increased
Gross margin in the fourth quarter increased to
Volume incentives as a percentage of net sales increased to
Selling, general and administrative expenses (“SG&A”) in the fourth quarter were
Operating income in the fourth quarter was
Other income (loss), net, in the fourth quarter of 2024 was
GAAP net income (loss) attributable to common shareholders was
Non-GAAP net income attributable to common shareholders was
Adjusted EBITDA in the fourth quarter increased to
Full Year 2024 Financial Results
Net Sales by Operating Segment (Amounts in Thousands) | |||||||||||||||
Year Ended December 31, 2024 | Year Ended December 31, 2023 | Percent Change | Impact of Currency Exchange | Percent Change Excluding Impact of Currency | |||||||||||
Asia | $ | 207,794 | $ | 201,251 | 3.3 | % | $ | (8,548 | ) | 7.5 | % | ||||
Europe | 84,837 | 81,101 | 4.6 | 1,085 | 3.3 | ||||||||||
North America | 138,849 | 139,804 | (0.7 | ) | (162 | ) | (0.6 | ) | |||||||
Latin America and Other | 22,884 | 23,164 | (1.2 | ) | (70 | ) | (0.9 | ) | |||||||
$ | 454,364 | $ | 445,320 | 2.0 | % | $ | (7,695 | ) | 3.8 | % |
Net sales in 2024 increased
Gross margin in 2024 decreased to
Volume incentives as a percentage of net sales in 2024 were
SG&A in 2024 were
Operating income in 2024 was
Other income (loss), net, in 2024 was
GAAP net income attributable to common shareholders was
Non-GAAP net income attributable to common shareholders in 2024 was
Adjusted EBITDA in 2024 increased to
Balance Sheet and Cash Flow
Net cash provided by operating activities was
Outlook
The Company expects full year 2025 net sales to range between
Conference Call
The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its fourth quarter and full year 2024 results.
Date: Tuesday, March 11th, 2025
Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)
Toll-free dial-in number: 1-800-717-1738
International dial-in number: 1-646-307-1865
Conference ID: 73865
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.
The conference call will be broadcast live and available for replay here and via the Events section of the Nature’s Sunshine website here.
A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through Tuesday, March 25, 2025.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 1173865
About Nature’s Sunshine Products
Nature’s Sunshine Products (Nasdaq: NATR), a leading natural health and wellness company, markets and distributes nutritional and personal care products in more than 40 countries. Nature’s Sunshine manufactures most of its products through its own state-of-the-art facilities to ensure its products continue to set the standard for the highest quality, safety, and efficacy on the market today. Additional information about the Company can be obtained at its website, www.naturessunshine.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements regarding the Company’s future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to the Company’s objectives, plans, strategies and financial results, including outlook for 2025 net sales and adjusted EBITDA. All statements (other than statements of historical fact) that address activities, events or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are often characterized by terminology such as “believe,” “hope,” “may,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy” and similar expressions, and are based on assumptions and assessments made by management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, including the following:
- failure to comply with laws and regulations relating to trade restrictions and export controls;
- laws and regulations regarding direct selling that may prohibit or restrict our ability to sell our products in some markets or require us to make changes to our business model in some markets;
- current and potential future extensive government regulations to which the Company’s products, business practices and manufacturing activities are subject;
- registration of products for sale in foreign markets, or difficulty or increased cost of importing products into foreign markets;
- legal challenges to the Company’s direct selling program or to the classification of its independent consultants;
- failure of the Company’s independent consultants to comply with advertising laws;
- product liability claims;
- impact of anti-bribery laws, including the U.S. Foreign Corrupt Practices Act;
- the Company’s ability to attract and retain independent consultants;
- the loss of one or more key independent consultants who have a significant sales network;
- potential for increased liability and compliance costs relating to the Company’s joint venture for operations in China with Fosun Industrial Co., Ltd.;
- the effect of fluctuating foreign exchange rates;
- liabilities and obligations arising from improper activity by the Company’s independent consultants;
- changes to the Company’s independent consultant compensation plans;
- geopolitical issues, conflicts or other global events;
- negative consequences resulting from difficult economic conditions, including the availability of liquidity or the willingness of the Company’s customers to purchase products;
- risks associated with the manufacturing of the Company’s products;
- supply chain disruptions, manufacturing interruptions or delays or the failure to accurately forecast customer demand;
- failure to timely and effectively obtain shipments of products from our suppliers and deliver products to our independent consultants and customers;
- uncertainties relating to the application of transfer pricing, duties, value-added taxes and other tax regulations, and changes thereto;
- failure to maintain an effective system of internal controls over financial reporting;
- cybersecurity threats and exposure to data loss;
- the storage, processing and use of data, some of which contain personal information, are subject to complex and evolving privacy and data protection laws and regulations;
- reliance on information technology infrastructure; and
- the sufficiency of trademarks and other intellectual property rights.
These and other risks and uncertainties that could cause actual results to differ from predicted results are more fully detailed under the caption “Risk Factors” in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports filed on Form 10-Q.
All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in or incorporated by reference into this press release. Except as is required by law, the Company expressly disclaims any obligation to publicly release any revisions to forward-looking statements to reflect events after the date of this press release.
Non-GAAP Financial Measures
We have included information which has not been prepared in accordance with generally accepted accounting principles (GAAP), such as information concerning non-GAAP net income, adjusted EBITDA and net sales excluding the impact of foreign currency exchange fluctuations.
We utilize the non-GAAP measures of non-GAAP net income and adjusted EBITDA in the evaluation of our operations and believe that these measures are useful indicators of our ability to fund our business. These non-GAAP financial measures should not be considered as an alternative to, or more meaningful than, U.S. GAAP net income (loss) as an indicator of our operating performance.
Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of Nature’s Sunshine Products’ performance in relation to other companies. We have included a reconciliation of net income to adjusted EBITDA, the most comparable GAAP measure. We have also included a reconciliation of GAAP net income to non-GAAP net income and non-GAAP adjusted EPS, in the attached financial tables.
Net sales in local currency removes, from net sales in U.S. dollars, the impact of changes in exchange rates between the U.S. dollar and the functional currencies of our foreign subsidiaries. This is accomplished by translating the current period net sales into U.S. dollars using the same foreign currency exchange rates that were used to translate the net sales for the previous comparable period.
We believe presenting the impact of foreign currency fluctuations is useful to investors because it allows a more meaningful comparison of net sales of our foreign operations from period to period. Net sales excluding the impact of foreign currency fluctuations should not be considered in isolation or as an alternative to net sales in U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.
With respect to our Adjusted EBITDA outlook for the full year 2024, a quantitative reconciliation to the corresponding GAAP information cannot be provided without unreasonable effort because of the inherent difficulty of accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliation that have not yet occurred, are out of our control, or cannot be reasonably predicted, including but not limited to warrant liabilities and stock based compensation. For the same reasons, we are unable to assess the probable significance of the unavailable information, which could have a material impact on our future GAAP financial results.
Investor Relations:
Gateway Group
Cody Slach
1-949-574-3860
NATR@gateway-grp.com
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts in thousands, except per share information) (Unaudited) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net sales | $ | 118,205 | $ | 108,936 | $ | 454,364 | $ | 445,320 | |||||||
Cost of sales | (33,141 | ) | (30,613 | ) | (129,676 | ) | (124,193 | ) | |||||||
Gross profit | 85,064 | 78,323 | 324,688 | 321,127 | |||||||||||
Operating expenses: | |||||||||||||||
Volume incentives | 36,805 | 32,760 | 140,589 | 135,320 | |||||||||||
Selling, general and administrative | 43,709 | 39,855 | 164,004 | 167,058 | |||||||||||
Operating income | 4,550 | 5,708 | 20,095 | 18,749 | |||||||||||
Other income (loss), net | (3,101 | ) | 1,953 | (1,669 | ) | 1,453 | |||||||||
Income before provision (benefit) for income taxes | 1,449 | 7,661 | 18,426 | 20,202 | |||||||||||
Provision (benefit) for income taxes | 2,181 | (1,683 | ) | 10,534 | 3,786 | ||||||||||
Net income (loss) | (732 | ) | 9,344 | 7,892 | 16,416 | ||||||||||
Net income (loss) attributable to noncontrolling interests | (411 | ) | 382 | 196 | 1,340 | ||||||||||
Net income (loss) attributable to common shareholders | $ | (321 | ) | $ | 8,962 | $ | 7,696 | $ | 15,076 | ||||||
Basic and diluted net income (loss) per common share: | |||||||||||||||
Basic earnings (loss) per share attributable to common shareholders | $ | (0.02 | ) | $ | 0.47 | $ | 0.41 | $ | 0.79 | ||||||
Diluted earnings (loss) per share attributable to common shareholders | $ | (0.02 | ) | $ | 0.46 | $ | 0.40 | $ | 0.77 | ||||||
Weighted-average basic common shares outstanding | 18,479 | 18,988 | 18,616 | 19,066 | |||||||||||
Weighted-average diluted common shares outstanding | 18,479 | 19,395 | 19,089 | 19,466 |
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) (Unaudited) | |||||||
As of December 31, | 2024 | 2023 | |||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 84,700 | $ | 82,373 | |||
Accounts receivable, net of allowance for doubtful accounts of | 9,477 | 8,827 | |||||
Inventories | 59,443 | 66,895 | |||||
Prepaid expenses and other | 6,959 | 7,722 | |||||
Total current assets | 160,579 | 165,817 | |||||
Property, plant and equipment, net | 39,585 | 45,000 | |||||
Operating lease right-of-use assets | 12,799 | 13,361 | |||||
Restricted investment securities - trading | 915 | 747 | |||||
Deferred income tax assets | 17,644 | 15,064 | |||||
Other assets | 9,333 | 9,784 | |||||
$ | 240,855 | $ | 249,773 | ||||
Liabilities and Shareholders’ Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 8,912 | $ | 7,910 | |||
Accrued volume incentives and service fees | 20,563 | 22,922 | |||||
Accrued liabilities | 25,399 | 33,162 | |||||
Deferred revenue | 2,774 | 1,794 | |||||
Income taxes payable | 4,117 | 6,418 | |||||
Current portion of operating lease liabilities | 3,927 | 4,547 | |||||
Total current liabilities | 65,692 | 76,753 | |||||
Liability related to unrecognized tax benefits | 628 | 312 | |||||
Long-term portion of operating lease liabilities | 10,277 | 10,376 | |||||
Deferred compensation payable | 915 | 747 | |||||
Long-term deferred income tax liabilities | 1,007 | 1,401 | |||||
Other liabilities | 1,345 | 644 | |||||
Total liabilities | 79,864 | 90,233 | |||||
Shareholders’ equity: | |||||||
Common stock, no par value; 50,000 shares authorized, 18,483 and 18,875 shares issued and outstanding as of December 31, 2024, and 2023, respectively | 114,577 | 119,694 | |||||
Retained earnings | 57,407 | 49,711 | |||||
Noncontrolling interests | 5,678 | 5,482 | |||||
Accumulated other comprehensive loss | (16,671 | ) | (15,347 | ) | |||
Total shareholders’ equity | 160,991 | 159,540 | |||||
$ | 240,855 | $ | 249,773 |
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited) | |||||||
Year Ended December 31, | 2024 | 2023 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 7,892 | $ | 16,416 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Provision for doubtful accounts | — | 45 | |||||
Depreciation and amortization | 14,219 | 11,816 | |||||
Noncash lease expense | 5,420 | 4,417 | |||||
Share-based compensation expense | 4,788 | 4,893 | |||||
Loss on disposal or sale of property and equipment | 1,570 | — | |||||
Deferred income taxes | (1,662 | ) | (8,525 | ) | |||
Purchase of trading investment securities | (141 | ) | — | ||||
Proceeds from sale of trading investment securities | 97 | 97 | |||||
Realized and unrealized gains on investments | (124 | ) | (140 | ) | |||
Foreign exchange (gains) losses | 1,700 | (970 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (1,121 | ) | 4,921 | ||||
Inventories | 5,562 | 995 | |||||
Prepaid expenses and other | 528 | (683 | ) | ||||
Other assets | (560 | ) | 679 | ||||
Accounts payable | 1,085 | 1,422 | |||||
Accrued volume incentives and service fees | (1,565 | ) | 1,242 | ||||
Accrued liabilities | (5,512 | ) | 6,991 | ||||
Deferred revenue | 1,041 | (456 | ) | ||||
Lease liabilities | (5,568 | ) | (4,707 | ) | |||
Income taxes payable | (2,938 | ) | 2,627 | ||||
Liability related to unrecognized tax positions | 419 | 103 | |||||
Deferred compensation payable | 168 | 43 | |||||
Net cash provided by operating activities | 25,298 | 41,226 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchases of property, plant and equipment | (10,971 | ) | (10,478 | ) | |||
Net cash used in investing activities | (10,971 | ) | (10,478 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from revolving credit facility | 40,991 | 16,294 | |||||
Principal payments of revolving credit facility | (40,991 | ) | (16,294 | ) | |||
Principal payments of long-term debt | — | (1,174 | ) | ||||
Payments related to tax withholding for net-share settled equity awards | (1,046 | ) | (385 | ) | |||
Repurchase of common stock | (8,859 | ) | (6,397 | ) | |||
Net cash used in financing activities | (9,905 | ) | (7,956 | ) | |||
Effect of exchange rates on cash and cash equivalents | (2,095 | ) | (451 | ) | |||
Net increase in cash and cash equivalents | 2,327 | 22,341 | |||||
Cash and cash equivalents at beginning of the year | 82,373 | 60,032 | |||||
Cash and cash equivalents at end of the year | $ | 84,700 | $ | 82,373 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Cash paid for income taxes, net of refunds | $ | 14,788 | $ | 9,264 | |||
Cash paid for interest | 119 | 539 |
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA (Amounts in thousands) (Unaudited) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net income (loss) | $ | (732 | ) | $ | 9,344 | $ | 7,892 | $ | 16,416 | ||||||
Adjustments: | |||||||||||||||
Depreciation and amortization | 4,024 | 3,053 | 14,219 | 11,816 | |||||||||||
Share-based compensation expense | 1,208 | 1,103 | 4,788 | 4,893 | |||||||||||
Other (income) loss, net* | 3,101 | (1,953 | ) | 1,669 | (1,453 | ) | |||||||||
Provision (benefit) for income taxes | 2,181 | (1,683 | ) | 10,534 | 3,786 | ||||||||||
Other adjustments (1) | 485 | (135 | ) | 1,442 | 4,963 | ||||||||||
Adjusted EBITDA | $ | 10,267 | $ | 9,729 | $ | 40,544 | $ | 40,421 | |||||||
(1) Other adjustments | |||||||||||||||
Loss on disposal of property and equipment | $ | — | $ | — | $ | 1,330 | $ | — | |||||||
Restructuring and other related expenses | 485 | — | 1,104 | — | |||||||||||
Charge (recovery) related to Japan loss | — | (135 | ) | — | 5,712 | ||||||||||
VAT refund | — | — | (992 | ) | (749 | ) | |||||||||
Total adjustments | $ | 485 | $ | (135 | ) | $ | 1,442 | $ | 4,963 |
* Other (income) loss, net is primarily comprised of foreign exchange (gains) losses, interest income, and interest expense.
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME (LOSS) TO NON-GAAP NET INCOME (LOSS) and NON-GAAP ADJUSTED EPS (Amounts in thousands) (Unaudited) | |||||||||||||||
Three Months Ended December 31, | Year Ended December 31, | ||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||
Net income (loss) | $ | (732 | ) | $ | 9,344 | $ | 7,892 | $ | 16,416 | ||||||
Adjustments: | |||||||||||||||
Loss on disposal of property and equipment | — | — | 1,330 | — | |||||||||||
Restructuring and other related expenses | 485 | — | 1,104 | — | |||||||||||
Charge (recovery) related to Japan loss | — | (135 | ) | — | 5,712 | ||||||||||
VAT refund | — | — | (992 | ) | (749 | ) | |||||||||
Tax impact of adjustments | (121 | ) | 34 | (276 | ) | (1,428 | ) | ||||||||
Total adjustments | 364 | (101 | ) | 1,166 | 3,535 | ||||||||||
Non-GAAP net income (loss) | $ | (368 | ) | $ | 9,243 | $ | 9,058 | $ | 19,951 | ||||||
Reported net income (loss) attributable to common shareholders | $ | (321 | ) | $ | 8,962 | $ | 7,696 | $ | 15,076 | ||||||
Total adjustments | 364 | (101 | ) | 1,166 | 3,535 | ||||||||||
Non-GAAP net income attributable to common shareholders | $ | 43 | $ | 8,861 | $ | 8,862 | $ | 18,611 | |||||||
Basic income (loss) per share, as reported | $ | (0.02 | ) | $ | 0.47 | $ | 0.41 | $ | 0.79 | ||||||
Total adjustments, net of tax | 0.02 | (0.01 | ) | 0.06 | 0.19 | ||||||||||
Basic income per share, as adjusted | $ | — | $ | 0.46 | $ | 0.47 | $ | 0.98 | |||||||
Diluted income (loss) per share, as reported | $ | (0.02 | ) | $ | 0.46 | $ | 0.40 | $ | 0.77 | ||||||
Total adjustments, net of tax | 0.02 | (0.01 | ) | 0.06 | 0.18 | ||||||||||
Diluted income per share, as adjusted | $ | — | $ | 0.45 | $ | 0.46 | $ | 0.95 |
