Nature's Sunshine Reports Second Quarter 2024 Results
Nature's Sunshine Products, Inc. (Nasdaq: NATR) reported its Q2 2024 financial results. Net sales decreased 5% to $110.6 million compared to $116.5 million in the same quarter last year. Gross margin decreased 125 basis points to 71.4%. GAAP net income attributable to common shareholders was $1.3 million, or $0.07 per diluted share, down from $2.4 million, or $0.12 per diluted share, in Q2 2023. Adjusted EBITDA decreased 8% to $10.4 million.
The company faced challenges including macroeconomic headwinds in China, slowing consumer spending in the U.S., and a temporary disruption to its North American business. In response, Nature's Sunshine upgraded its digital platform in North America, rebalanced its consumer proposition in Asia/Pacific, and streamlined overhead, reducing over $5 million in annualized SG&A expenses.
Nature's Sunshine Products, Inc. (Nasdaq: NATR) ha riportato i risultati finanziari del secondo trimestre 2024. Le vendite nette sono diminuite del 5%, passando a 110,6 milioni di dollari rispetto ai 116,5 milioni di dollari nello stesso trimestre dell'anno scorso. Il margine lordo è diminuito di 125 punti base, arrivando al 71,4%. L'utile netto GAAP attribuibile agli azionisti ordinari è stato di 1,3 milioni di dollari, ovvero 0,07 dollari per azione diluita, in calo rispetto ai 2,4 milioni di dollari, o 0,12 dollari per azione diluita, nel secondo trimestre 2023. L'EBITDA rettificato è diminuito dell'8%, a 10,4 milioni di dollari.
La società ha affrontato sfide, tra cui test di mercato macroeconomici in Cina, un rallentamento della spesa dei consumatori negli Stati Uniti e una temporanea interruzione della propria attività in Nord America. In risposta, Nature's Sunshine ha aggiornato la propria piattaforma digitale in Nord America, riequilibrato la propria proposta commerciale in Asia/Pacifico e razionalizzato le spese generali, riducendo oltre 5 milioni di dollari di spese SG&A annualizzate.
Nature's Sunshine Products, Inc. (Nasdaq: NATR) informó sus resultados financieros del segundo trimestre de 2024. Las ventas netas disminuyeron un 5%, alcanzando los 110.6 millones de dólares en comparación con 116.5 millones de dólares en el mismo trimestre del año pasado. El margen bruto disminuyó 125 puntos básicos, situándose en el 71.4%. El ingreso neto GAAP atribuible a los accionistas comunes fue de 1.3 millones de dólares, o 0.07 dólares por acción diluida, en comparación con 2.4 millones de dólares, o 0.12 dólares por acción diluida, en el segundo trimestre de 2023. El EBITDA ajustado disminuyó un 8%, a 10.4 millones de dólares.
La empresa enfrentó desafíos, incluidos vientos en contra macroeconómicos en China, un desaceleramiento del gasto del consumidor en EE. UU. y una interrupción temporal de su negocio en América del Norte. En respuesta, Nature's Sunshine mejoró su plataforma digital en América del Norte, reequilibró su propuesta al consumidor en Asia/Pacífico y optimizó los costos, reduciendo más de 5 millones de dólares en gastos SG&A annualizados.
Nature's Sunshine Products, Inc. (Nasdaq: NATR)가 2024년 2분기 재무 결과를 발표했습니다. 순매출은 5% 감소하여 1억 1,060만 달러로 작년 동기 1억 1,650만 달러와 비교되었습니다. 총 이익률은 125베이시스 포인트 감소하여 71.4%에 이르렀습니다. 일반 회계 원칙(GAAP) 기준으로 보통 주주에게 귀속된 순이익은 130만 달러, 즉 희석주당 0.07달러로, 2023년 2분기의 240만 달러, 즉 희석주당 0.12달러에서 감소했습니다. 조정 EBITDA는 8% 감소하여 1,040만 달러입니다.
회사는 중국의 거시경제적 역풍, 미국의 소비자 지출 둔화, 그리고 북미 사업의 일시적 중단 등 여러 도전에 직면했습니다. 이에 따라 Nature's Sunshine은 북미의 디지털 플랫폼을 업그레이드하고, 아시아/태평양의 소비자 제안을 재조정하며, 간접 비용을 효율화하여 연간 500만 달러 이상의 SG&A 비용을 줄였습니다.
Nature's Sunshine Products, Inc. (Nasdaq: NATR) a annoncé ses résultats financiers pour le deuxième trimestre 2024. Les ventes nettes ont diminué de 5 % pour atteindre 110,6 millions de dollars contre 116,5 millions de dollars au même trimestre l'année dernière. La marge brute a diminué de 125 points de base, tombant à 71,4 %. Le bénéfice net GAAP attribuable aux actionnaires ordinaires s'est élevé à 1,3 million de dollars, soit 0,07 dollar par action diluée, en baisse par rapport à 2,4 millions de dollars, soit 0,12 dollar par action diluée, au deuxième trimestre 2023. L'EBITDA ajusté a diminué de 8 % pour atteindre 10,4 millions de dollars.
L'entreprise a été confrontée à des défis, notamment des vents contraires macroéconomiques en Chine, un ralentissement des dépenses de consommation aux États-Unis et une perturbation temporaire de ses activités en Amérique du Nord. En réponse, Nature's Sunshine a mis à niveau sa plateforme numérique en Amérique du Nord, rééquilibré sa proposition commerciale en Asie/Pacifique et simplifié ses frais généraux, réduisant ainsi de plus de 5 millions de dollars les dépenses SG&A annualisées.
Nature's Sunshine Products, Inc. (Nasdaq: NATR) hat die finanziellen Ergebnisse für das zweite Quartal 2024 bekannt gegeben. Der Nettoumsatz sank um 5% auf 110,6 Millionen Dollar im Vergleich zu 116,5 Millionen Dollar im gleichen Quartal des Vorjahres. Die Bruttomarge verringerte sich um 125 Basispunkte auf 71,4%. Der nach GAAP zuzurechnende Nettogewinn der Stammaktionäre betrug 1,3 Millionen Dollar, oder 0,07 Dollar pro verwässerter Aktie, ein Rückgang von 2,4 Millionen Dollar, oder 0,12 Dollar pro verwässerter Aktie, im zweiten Quartal 2023. Das angepasste EBITDA sank um 8% auf 10,4 Millionen Dollar.
Das Unternehmen sah sich Herausforderungen gegenüber, darunter makroökonomische Gegenwinde in China, eine Verlangsamung der Verbraucherausgaben in den USA und eine vorübergehende Störung des Geschäfts in Nordamerika. In Reaktion darauf hat Nature's Sunshine seine digitale Plattform in Nordamerika aktualisiert, sein Verbraucherangebot in Asien/Pazifik neu ausbalanciert und allgemeine Verwaltungskosten optimiert, wodurch über 5 Millionen Dollar an jährlichen SG&A-Ausgaben eingespart wurden.
- Streamlined overhead expenses, reducing over $5 million in annualized SG&A costs
- Upgraded digital platform in North America to strengthen performance
- Rebalanced consumer proposition in key Asia/Pacific markets to drive customer growth
- Maintained strong gross margin of 71.4% despite economic challenges
- Ended the quarter with $68.7 million in cash and zero debt
- Net sales decreased 5% to $110.6 million compared to Q2 2023
- Gross margin decreased 125 basis points to 71.4% from 72.6% in Q2 2023
- GAAP net income attributable to common shareholders decreased to $1.3 million from $2.4 million in Q2 2023
- Adjusted EBITDA decreased 8% to $10.4 million compared to Q2 2023
- Lowered full-year 2024 guidance for net sales and adjusted EBITDA
Insights
Nature's Sunshine's Q2 2024 results reveal a challenging period for the company. The 5% decrease in net sales to
However, the company's proactive measures, including upgrading its digital platform and streamlining overhead to save
The Q2 results highlight regional disparities in Nature's Sunshine's performance. The Asia segment saw an
The company's strategy to rebalance its consumer proposition in Asia/Pacific markets by introducing consumer-friendly packs is a noteworthy adaptation to local market needs. However, the revised outlook indicates persistent challenges, particularly in Asia. Investors should closely watch how these regional strategies unfold and whether they can effectively counter the macroeconomic headwinds, especially in key markets like China where consumer spending appears to be slowing.
Nature's Sunshine's upgrade of its digital platform in North America is a crucial move in today's digital-first marketplace. This investment aims to strengthen performance and improve capabilities, which could potentially enhance customer experience and operational efficiency.
However, the temporary disruption to the North American business mentioned in the report suggests that the implementation may have caused short-term challenges. It's critical to monitor how quickly these upgrades translate into tangible benefits, such as improved sales performance or customer acquisition costs. The success of this digital transformation could be a key factor in the company's ability to adapt to changing consumer behaviors and drive future growth in a competitive market landscape.
LEHI, Utah, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Nature’s Sunshine Products, Inc. (Nasdaq: NATR) (Nature’s Sunshine), a leading natural health and wellness company of high-quality herbal and nutritional products, reported financial results for the second quarter ended June 30, 2024.
Second Quarter 2024 Financial Summary vs. Same Year-Ago Quarter
- Net sales were down
5% to$110.6 million compared to$116.5 million (down3% in constant currency). - Gross margin decreased 125 basis points to
71.4% compared to72.6% . - GAAP net income attributable to common shareholders was
$1.3 million , or$0.07 per diluted common share, compared to$2.4 million , or$0.12 per diluted common share. - Adjusted EBITDA down
8% to$10.4 million compared to$11.3 million .
Management Commentary
“In the second quarter of 2024, we continued to make progress on our global growth strategies, addressing near-term challenges, while driving change and creating new opportunities for the future,” said Terrence Moorehead, Chief Executive Officer of Nature’s Sunshine. “For the quarter, net sales were
“In the face of increasing macroeconomic headwinds, we took several strategic actions in the second quarter. First, we upgraded our digital platform in North America to strengthen performance and improve capabilities. Second, we rebalanced our consumer proposition in several key markets in Asia/Pacific, adding consumer-friendly packs to drive customer growth and support repeat purchases. And finally, we took the initiative to streamline overhead and improve productivity, by reducing over
Second Quarter 2024 Financial Results
| Net Sales by Operating Segment (Amounts in Thousands) | |||||||||||||||
| Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Percent Change | Impact of Currency Exchange | Percent Change Excluding Impact of Currency | |||||||||||
| Asia | $ | 49,984 | $ | 54,875 | (8.9 | )% | $ | (3,147 | ) | (3.2 | )% | ||||
| Europe | 21,602 | 21,236 | 1.7 | 183 | 0.9 | ||||||||||
| North America | 33,563 | 34,658 | (3.2 | ) | (50 | ) | (3.0 | ) | |||||||
| Latin America and Other | 5,402 | 5,779 | (6.5 | ) | 62 | (7.6 | ) | ||||||||
| $ | 110,551 | $ | 116,548 | (5.1 | )% | $ | (2,952 | ) | (2.6 | )% | |||||
Net sales in the second quarter decreased
Gross profit margin in the second quarter decreased 125 basis points to
Volume incentives as a percentage of net sales were
Selling, general and administrative expenses ("SG&A") in the second quarter were
Operating income in the second quarter decreased to
Other loss, net, in the second quarter of 2024 was a loss of
GAAP net income attributable to common shareholders decreased to
Adjusted EBITDA in the second quarter decreased
Balance Sheet and Cash Flow
Net cash provided by operating activities was
Outlook
Given softness in the Company's Asia segment, Nature's Sunshine now expects full year 2024 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 second quarter of 2024 results.
Date: Thursday, August 8, 2024
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: 14179
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 August 22, 2024.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 1114179
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 our objectives, plans, strategies and financial results, including expected improvements in gross profit and gross margin. All statements (other than statements of historical fact) that address activities, events or developments that we intend, expect, project, believe or anticipate 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 in light of our experience and perception of historical trends, current conditions, expected future developments and other factors we believe to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, including the following:
- 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;
- laws and regulations regarding direct selling 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;
- liabilities and obligations arising from improper activity by the Company’s independent consultants;
- 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;
- failure of the Company’s independent consultants to comply with advertising laws;
- changes to the Company’s independent consultants compensation plans;
- geopolitical issues and conflicts;
- 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 manufacturers and deliver products to our independent consultants and customers;
- world-wide slowdowns and delays related to supply chain, ingredient shortages and logistical challenges;
- uncertainties relating to the application of transfer pricing, duties, value-added taxes, and other tax regulations, and changes thereto;
- changes in tax laws, treaties or regulations, or their interpretation;
- 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's 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, Inc.
Cody Slach
1-949-574-3860
NATR@gateway-grp.com
| NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except per share information) (Unaudited) | ||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||
| Net sales | $ | 110,551 | $ | 116,548 | $ | 221,544 | $ | 225,182 | ||||||
| Cost of sales | 31,664 | 31,924 | 63,679 | 63,616 | ||||||||||
| Gross profit | 78,887 | 84,624 | 157,865 | 161,566 | ||||||||||
| Operating expenses: | ||||||||||||||
| Volume incentives | 34,693 | 35,314 | 68,263 | 68,442 | ||||||||||
| Selling, general and administrative | 38,557 | 42,273 | 79,341 | 85,915 | ||||||||||
| Operating income | 5,637 | 7,037 | 10,261 | 7,209 | ||||||||||
| Other income (loss), net | (1,214 | ) | (1,087 | ) | (1,183 | ) | 427 | |||||||
| Income before provision for income taxes | 4,423 | 5,950 | 9,078 | 7,636 | ||||||||||
| Provision for income taxes | 2,935 | 3,273 | 5,100 | 3,706 | ||||||||||
| Net income | 1,488 | 2,677 | 3,978 | 3,930 | ||||||||||
| Net income attributable to noncontrolling interests | 139 | 255 | 308 | 648 | ||||||||||
| Net income attributable to common shareholders | $ | 1,349 | $ | 2,422 | $ | 3,670 | $ | 3,282 | ||||||
| Basic and diluted net income per common share: | ||||||||||||||
| Basic earnings per share attributable to common shareholders | $ | 0.07 | $ | 0.13 | $ | 0.20 | $ | 0.17 | ||||||
| Diluted earnings per share attributable to common shareholders | $ | 0.07 | $ | 0.12 | $ | 0.19 | $ | 0.17 | ||||||
| Weighted average basic common shares outstanding | 18,647 | 19,293 | 18,737 | 19,073 | ||||||||||
| Weighted average diluted common shares outstanding | 19,119 | 19,747 | 19,184 | 19,460 | ||||||||||
| NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Amounts in thousands) (Unaudited) | |||||||
| June 30, 2024 | December 31, 2023 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 68,695 | $ | 82,373 | |||
| Accounts receivable, net of allowance for doubtful accounts of | 11,290 | 8,827 | |||||
| Inventories | 62,304 | 66,895 | |||||
| Prepaid expenses and other | 9,747 | 7,722 | |||||
| Total current assets | 152,036 | 165,817 | |||||
| Property, plant and equipment, net | 44,832 | 45,000 | |||||
| Operating lease right-of-use assets | 13,722 | 13,361 | |||||
| Investment securities - trading | 890 | 747 | |||||
| Deferred income tax assets | 14,704 | 15,064 | |||||
| Other assets | 9,647 | 9,784 | |||||
| Total assets | $ | 235,831 | $ | 249,773 | |||
| Liabilities and Shareholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 8,422 | $ | 7,910 | |||
| Accrued volume incentives and service fees | 22,144 | 22,922 | |||||
| Accrued liabilities | 22,994 | 33,162 | |||||
| Deferred revenue | 2,217 | 1,794 | |||||
| Income taxes payable | 3,911 | 6,418 | |||||
| Current portion of operating lease liabilities | 3,961 | 4,547 | |||||
| Total current liabilities | 63,649 | 76,753 | |||||
| Liability related to unrecognized tax benefits | 935 | 312 | |||||
| Long-term portion of operating lease liabilities | 11,390 | 10,376 | |||||
| Deferred compensation payable | 890 | 747 | |||||
| Deferred income tax liabilities | 1,164 | 1,401 | |||||
| Other liabilities | 1,403 | 644 | |||||
| Total liabilities | 79,431 | 90,233 | |||||
| Shareholders’ equity: | |||||||
| Common stock, no par value, 50,000 shares authorized, 18,508 and 18,875 shares issued and outstanding, respectively | 114,014 | 119,694 | |||||
| Retained earnings | 53,381 | 49,711 | |||||
| Noncontrolling interest | 5,790 | 5,482 | |||||
| Accumulated other comprehensive loss | (16,785 | ) | (15,347 | ) | |||
| Total shareholders’ equity | 156,400 | 159,540 | |||||
| Total liabilities and shareholders’ equity | $ | 235,831 | $ | 249,773 | |||
| NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Amounts in thousands) (Unaudited) | |||||||
| Six Months Ended June 30, | |||||||
| 2024 | 2023 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net income | $ | 3,978 | $ | 3,930 | |||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||
| Provision for doubtful accounts | — | 94 | |||||
| Depreciation and amortization | 6,659 | 5,638 | |||||
| Non-cash lease expense | 3,298 | 2,104 | |||||
| Share-based compensation expense | 2,630 | 2,495 | |||||
| Deferred income taxes | (14 | ) | (2,323 | ) | |||
| Purchase of trading investment securities | (110 | ) | — | ||||
| Proceeds from sale of trading investment securities | 40 | 54 | |||||
| Realized and unrealized gains on investments | (72 | ) | (92 | ) | |||
| Foreign exchange losses (gains) | 1,543 | (309 | ) | ||||
| Changes in assets and liabilities: | |||||||
| Accounts receivable | (2,960 | ) | 1,042 | ||||
| Inventories | 3,112 | 1,626 | |||||
| Prepaid expenses and other current assets | (2,162 | ) | (1,235 | ) | |||
| Other assets | (598 | ) | (87 | ) | |||
| Accounts payable | 409 | 520 | |||||
| Accrued volume incentives and service fees | (144 | ) | 2,882 | ||||
| Accrued liabilities | (7,993 | ) | 3,654 | ||||
| Deferred revenue | 477 | (811 | ) | ||||
| Lease liabilities | (3,215 | ) | (2,040 | ) | |||
| Income taxes payable | (2,251 | ) | 78 | ||||
| Liability related to unrecognized tax benefits | 726 | 6 | |||||
| Deferred compensation payable | 142 | 38 | |||||
| Net cash provided by operating activities | 3,495 | 17,264 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
| Purchases of property, plant and equipment | (7,040 | ) | (4,747 | ) | |||
| Net cash used in investing activities | (7,040 | ) | (4,747 | ) | |||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Principal payments of long-term debt | — | (637 | ) | ||||
| Proceeds from revolving credit facility | 34,216 | 13,503 | |||||
| Principal payments of revolving credit facility | (34,216 | ) | (13,503 | ) | |||
| Payments related to tax withholding for net-share settled equity awards | (586 | ) | (256 | ) | |||
| Repurchase of common stock | (7,725 | ) | (920 | ) | |||
| Net cash used in financing activities | (8,311 | ) | (1,813 | ) | |||
| Effect of exchange rates on cash and cash equivalents | (1,822 | ) | (1,766 | ) | |||
| Net increase (decrease) in cash and cash equivalents | (13,678 | ) | 8,938 | ||||
| Cash and cash equivalents at the beginning of the period | 82,373 | 60,032 | |||||
| Cash and cash equivalents at the end of the period | $ | 68,695 | $ | 68,970 | |||
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
| Cash paid for income taxes, net of refunds | $ | 8,144 | $ | 5,129 | |||
| Cash paid for interest | 115 | 114 | |||||
| NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA (Amounts in thousands) (Unaudited) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net income | $ | 1,488 | $ | 2,677 | $ | 3,978 | $ | 3,930 | ||||
| Adjustments: | ||||||||||||
| Depreciation and amortization | 3,499 | 2,833 | 6,659 | 5,638 | ||||||||
| Share-based compensation expense | 1,261 | 1,437 | 2,630 | 2,495 | ||||||||
| Other (income) loss, net* | 1,214 | 1,087 | 1,183 | (427 | ) | |||||||
| Provision for income taxes | 2,935 | 3,273 | 5,100 | 3,706 | ||||||||
| Other adjustments (1) | — | — | — | 5,098 | ||||||||
| Adjusted EBITDA | $ | 10,397 | $ | 11,307 | $ | 19,550 | $ | 20,440 | ||||
| (1) Other adjustments | ||||||||||||
| Charge related to Japan loss | $ | — | $ | — | $ | — | $ | 5,847 | ||||
| VAT refunds | — | — | — | (749 | ) | |||||||
| Total adjustments | $ | — | $ | — | $ | — | $ | 5,098 | ||||
* 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 TO NON-GAAP NET INCOME and NON-GAAP ADJUSTED EPS (Amounts in thousands) (Unaudited) | ||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||
| Net income | $ | 1,488 | $ | 2,677 | $ | 3,978 | $ | 3,930 | ||||
| Adjustments: | ||||||||||||
| Charge related to Japan loss | — | — | — | 5,847 | ||||||||
| VAT Refund | — | — | — | (749 | ) | |||||||
| Tax impact of adjustments | — | — | — | (1,462 | ) | |||||||
| Total adjustments | — | — | — | 3,636 | ||||||||
| Non-GAAP net income | $ | 1,488 | $ | 2,677 | $ | 3,978 | $ | 7,566 | ||||
| Reported income attributable to common shareholders | $ | 1,349 | $ | 2,422 | $ | 3,670 | $ | 3,282 | ||||
| Total adjustments | — | — | — | 3,636 | ||||||||
| Non-GAAP net income attributable to common shareholders | $ | 1,349 | $ | 2,422 | $ | 3,670 | $ | 6,918 | ||||
| Basic income per share, as reported | $ | 0.07 | $ | 0.13 | $ | 0.20 | $ | 0.17 | ||||
| Total adjustments, net of tax | — | — | — | 0.19 | ||||||||
| Basic income per share, as adjusted | $ | 0.07 | $ | 0.13 | $ | 0.20 | $ | 0.36 | ||||
| Diluted income per share, as reported | $ | 0.07 | $ | 0.12 | $ | 0.19 | $ | 0.17 | ||||
| Total adjustments, net of tax | — | — | — | 0.19 | ||||||||
| Diluted income per share, as adjusted | $ | 0.07 | $ | 0.12 | $ | 0.19 | $ | 0.36 | ||||
FAQ
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