Nature’s Sunshine Products, Inc. (Nasdaq: NATR) (Nature’s
Sunshine), a leading natural health and wellness company engaged in
the manufacture and sale of nutritional and personal care products,
reported financial results for the second quarter ended June 30,
2021.
Second Quarter 2021 Financial Highlights vs. Same
Year-Ago Quarter
- Net sales increased 25% to a record $109.0 million compared to
$87.3 million.
- GAAP net income increased 11% to $6.8 million, or $0.32 per
diluted share, compared to $6.1 million, or $0.29 per diluted
share.
- Adjusted net income per diluted share was $0.32, compared
to an adjusted net income per diluted share of $0.28.
- Adjusted EBITDA increased 38% to a record $13.4 million
compared to $9.7 million.
Management Commentary“For the fourth
consecutive quarter, we achieved the largest sales in the company’s
history,” said Terrence Moorehead, CEO of Nature’s Sunshine. “These
tremendous results were driven by growth across our operating
business units as we remain committed to our business
transformation and our five global growth strategies.
“Across Asia, Europe, and Latin America we had double-digit
growth driven by product launches and strong execution of our
strategies. In the U.S., we also saw initiatives like our
‘Subscribe and Thrive’ auto-ship program and affiliate program
continue to gain traction. Our direct-to-consumer business
performed better than expected and we are working to further
accelerate this channel by building out our digital capabilities.
With the momentum we’re seeing, we are excited to be working
towards launching our Personalization Program later in the year. It
is another program we designed to improve the customer experience
and it will represent the next phase of our digital-first
transformation.
“Looking forward to the second half of 2021, we expect our
distributors and customers to continue responding positively to our
transformed business model and new branding. Our customers are
enjoying the revitalized packaging and labels as well as our new
unboxing experience, which we will now start rolling out within our
Synergy brand as well. We’re on a multi-year journey right now and
while there’s supply chain headwinds and continued challenges from
COVID-19, we remain operationally and financially sound, and we are
optimistic in our ability to continue to create value for our
shareholders.”
Second Quarter 2021 Financial Results
|
Net Sales by Operating Segment
(Amounts in Thousands) |
|
Three MonthsEndedJune 30,
2021 |
|
Three Month EndedJune 30,
2020 |
|
PercentChange |
|
Impact ofCurrencyExchange |
|
PercentChangeExcludingImpact ofCurrency |
Asia |
$ |
43,536 |
|
|
$ |
32,757 |
|
|
32.9 |
% |
|
$ |
2,271 |
|
|
26.0 |
% |
Europe |
21,455 |
|
|
15,465 |
|
|
38.7 |
|
|
753 |
|
|
33.9 |
|
North America |
37,372 |
|
|
34,471 |
|
|
8.4 |
|
|
339 |
|
|
7.4 |
|
Latin America and Other |
6,615 |
|
|
4,593 |
|
|
44.0 |
|
|
225 |
|
|
39.1 |
|
|
$ |
108,978 |
|
|
$ |
87,286 |
|
|
24.9 |
% |
|
$ |
3,588 |
|
|
20.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales in the second quarter increased 25% to a company
record of $109.0 million compared to $87.3 million in the same
year-ago quarter. The increase was due to the continued execution
of business transformation initiatives, new product development,
and the easing of COVID-19-related restrictions in certain key
markets. Excluding foreign exchange rates, net sales in the second
quarter of 2021 increased 21% compared to the year-ago quarter.
Gross margin in the second quarter improved 30 basis points to
73.9% compared to 73.6% in the year-ago quarter. The increase in
gross margin is primarily due to changes in market mix.
Volume incentives as a percentage of net sales were 32.5%
compared to 33.4% in the year-ago quarter. The decrease in volume
incentives is due to changes in market mix and growth in NSP China.
The decrease also reflects expected cost savings from the September
2020 launch of our new consultant sales and compensation plan in
North America and LATAM.
Selling, general and administrative expenses in the second
quarter were $35.6 million compared to $28.5 million in the
year‐ago quarter. The increase was primarily attributable to higher
costs associated with the implementation of business transformation
initiatives and growth in markets with higher variable costs. As a
percentage of net sales, SG&A expenses were flat at 32.7% in
the second quarter of 2021 and 2020, respectively. Excluding the
impact of the prior year refunds, SG&A expenses as a percentage
of net sales improved to 32.7% in the second quarter of 2021
compared to 32.8% in the year-ago quarter.
Operating income in the second quarter of 2021 increased 44% to
$9.5 million, or 8.7% of net sales, compared to $6.6 million, or
7.6% of net sales, in the second quarter of 2020.
Other income, net, in the second quarter of 2021 decreased to
$0.5 million compared to $1.5 million in the second quarter of
2020. Other income, net, primarily consisted of foreign exchange
gains as a result of net changes in foreign currencies primarily in
Asia, Europe and Latin America. The provision for income taxes was
$3.2 million in the second quarter of 2021 compared to $2.0 million
for the year-ago quarter.
GAAP net income attributable to common shareholders increased to
$6.5 million, or $0.32 per diluted common share, compared to $5.8
million, or $0.29 per diluted common share, in the second quarter
of 2020. Net income attributable to NSP China increased to $1.3
million, or $0.06 per diluted common share, for the second quarter
of 2021, compared to $1.9 million, or $0.10 per diluted common
share, for the second quarter of 2020.
Adjusted net income attributable to common shareholders
increased to $6.5 million, or $0.32 per diluted common share,
compared to $5.6 million, or $0.28 per diluted common share in the
prior year period. Adjusted net income, which is a non-GAAP
financial measure, is defined here as net income from continuing
operations before less-frequent items including, among other
things, large tax refunds. A reconciliation of adjusted net income
to GAAP net income is provided in the attached financial
tables.
Adjusted EBITDA increased 38% to a company record of $13.4
million in the second quarter compared to $9.7 million the second
quarter of 2020. This increase was driven primarily by the
aforementioned increase in net sales. 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/loss adjusted to exclude share-based compensation
expense and certain noted adjustments. A reconciliation of Net
Income to Adjusted EBITDA is provided in the financial tables
below.
Balance Sheet and Cash Flow
Net cash provided by operating activities decreased to $10.7
million for the six months ended June 30, 2021, compared to
$14.4 million provided in the prior year period. Capital
expenditures during the six months ended June 30, 2021 totaled
$2.9 million compared to $2.2 million in the comparable period of
2020. As of June 30, 2021, the Company had cash and cash
equivalents of $74.9 million and $3.0 million of debt.
Conference Call
The Company will hold a conference call today at 5:00 p.m.
Eastern time to discuss its second quarter 2021 results.
Date: Thursday, August 5, 2021Time: 5:00 p.m. Eastern time (3:00
p.m. Mountain time)Toll-free dial-in number:
1-800-239-9838International dial-in number:
1-323-794-2551Conference ID: 8000027
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 Investor Relations 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 19, 2021.
Toll-free replay number: 1-844-512-2921International replay
number: 1-412-317-6671Replay ID: 8000027
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. 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:
- 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;
- 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;
- liabilities and obligations arising from improper activity by
the Company’s independent consultants;
- product liability claims;
- our cannabidiol (CBD) product line is subject to varying,
rapidly changing laws, regulations, and rules;
- actions on trade relations by the U.S. and foreign
governments;
- 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;
- 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;
- we may be adversely affected by the ongoing coronavirus
pandemic;
- 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;
- 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;
- 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.
Investor Relations:
Gateway Investor RelationsCody
Slach1-949-574-3860NATR@gatewayir.com
|
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED STATEMENTS OF INCOME(Amounts in thousands, except per
share information)(Unaudited) |
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net sales |
$ |
108,978 |
|
|
$ |
87,286 |
|
|
$ |
211,399 |
|
|
$ |
183,212 |
|
Cost of sales |
28,463 |
|
|
23,017 |
|
|
55,442 |
|
|
47,698 |
|
Gross profit |
80,515 |
|
|
64,269 |
|
|
155,957 |
|
|
135,514 |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Volume incentives |
35,443 |
|
|
29,165 |
|
|
69,698 |
|
|
62,183 |
|
Selling, general and administrative |
35,586 |
|
|
28,504 |
|
|
69,138 |
|
|
59,569 |
|
Operating income |
9,486 |
|
|
6,600 |
|
|
17,121 |
|
|
13,762 |
|
Other income (loss), net |
529 |
|
|
1,509 |
|
|
(1,404 |
) |
|
(901 |
) |
Income before provision for income taxes |
10,015 |
|
|
8,109 |
|
|
15,717 |
|
|
12,861 |
|
Provision for income taxes |
3,221 |
|
|
1,976 |
|
|
4,771 |
|
|
3,722 |
|
Net income |
6,794 |
|
|
6,133 |
|
|
10,946 |
|
|
9,139 |
|
Net income attributable to
noncontrolling interests |
254 |
|
|
379 |
|
|
390 |
|
|
423 |
|
Net income attributable to
common shareholders |
$ |
6,540 |
|
|
$ |
5,754 |
|
|
$ |
10,556 |
|
|
$ |
8,716 |
|
|
|
|
|
|
|
|
|
Basic and diluted net income
per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to common shareholders |
$ |
0.33 |
|
|
$ |
0.30 |
|
|
$ |
0.53 |
|
|
$ |
0.45 |
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to common shareholders |
$ |
0.32 |
|
|
$ |
0.29 |
|
|
$ |
0.52 |
|
|
$ |
0.44 |
|
|
|
|
|
|
|
|
|
Weighted average basic common
shares outstanding |
19,999 |
|
|
19,491 |
|
|
19,897 |
|
|
19,472 |
|
Weighted average diluted
common shares outstanding |
20,503 |
|
|
19,783 |
|
|
20,340 |
|
|
19,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common
share |
$ |
— |
|
|
$ |
— |
|
|
$ |
1.00 |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED BALANCE SHEETS(Amounts in thousands)(Unaudited) |
|
|
|
|
|
June 30,2021 |
|
December 31,2020 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
74,902 |
|
|
$ |
92,069 |
|
Accounts receivable, net of allowance for doubtful accounts of $446
and $454, respectively |
9,979 |
|
|
7,375 |
|
Inventories |
50,957 |
|
|
47,683 |
|
Prepaid expenses and other |
7,851 |
|
|
6,938 |
|
Total current assets |
143,689 |
|
|
154,065 |
|
|
|
|
|
Property, plant and equipment,
net |
52,191 |
|
|
54,355 |
|
Operating lease right-of-use
assets |
18,564 |
|
|
20,210 |
|
Investment securities -
trading |
984 |
|
|
989 |
|
Deferred income tax
assets |
7,043 |
|
|
8,693 |
|
Other assets |
10,719 |
|
|
11,186 |
|
Total assets |
$ |
233,190 |
|
|
$ |
249,498 |
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
7,781 |
|
|
$ |
6,486 |
|
Accrued volume incentives and service fees |
19,797 |
|
|
19,481 |
|
Accrued liabilities |
26,303 |
|
|
31,710 |
|
Deferred revenue |
1,969 |
|
|
2,092 |
|
Related party notes payable |
921 |
|
|
1,200 |
|
Income taxes payable |
2,528 |
|
|
2,387 |
|
Current portion of operating lease liabilities |
4,467 |
|
|
4,992 |
|
Current portion of note payable |
1,226 |
|
|
1,306 |
|
Total current liabilities |
64,992 |
|
|
69,654 |
|
|
|
|
|
Liability related to
unrecognized tax benefits |
5 |
|
|
92 |
|
Long-term portion of operating
lease liabilities |
15,416 |
|
|
16,412 |
|
Long-term note payable |
1,800 |
|
|
2,418 |
|
Deferred compensation
payable |
984 |
|
|
989 |
|
Deferred income tax
liabilities |
1,604 |
|
|
1,391 |
|
Other liabilities |
1,236 |
|
|
1,308 |
|
Total liabilities |
86,037 |
|
|
92,264 |
|
|
|
|
|
Shareholders’ equity: |
|
|
|
Common stock, no par value, 50,000 shares authorized, 19,990 and
19,697 shares issued and outstanding, respectively |
138,308 |
|
|
139,311 |
|
Retained earnings |
16,728 |
|
|
26,030 |
|
Noncontrolling interest |
2,238 |
|
|
1,848 |
|
Accumulated other comprehensive loss |
(10,121 |
) |
|
(9,955 |
) |
Total shareholders’ equity |
147,153 |
|
|
157,234 |
|
Total liabilities and shareholders’ equity |
$ |
233,190 |
|
|
$ |
249,498 |
|
|
|
|
|
|
|
|
|
|
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIESCONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts in
thousands)(Unaudited) |
|
|
|
Six Months EndedJune 30, |
|
2021 |
|
2020 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
Net income |
$ |
10,946 |
|
|
$ |
9,139 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Provision for doubtful accounts |
— |
|
|
17 |
|
Depreciation and amortization |
5,541 |
|
|
5,070 |
|
Non-cash lease expense |
2,626 |
|
|
2,257 |
|
Share-based compensation expense |
2,071 |
|
|
1,130 |
|
Loss on sale of property, plant and equipment |
12 |
|
|
6 |
|
Deferred income taxes |
1,753 |
|
|
912 |
|
Purchase of trading investment securities |
(24 |
) |
|
(35 |
) |
Proceeds from sale of trading investment securities |
175 |
|
|
146 |
|
Realized and unrealized gains on investments |
(67 |
) |
|
4 |
|
Foreign exchange losses |
1,572 |
|
|
996 |
|
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
(2,755 |
) |
|
173 |
|
Inventories |
(3,777 |
) |
|
(4,114 |
) |
Prepaid expenses and other current assets |
(918 |
) |
|
(1,523 |
) |
Other assets |
(108 |
) |
|
(69 |
) |
Accounts payable |
1,079 |
|
|
(138 |
) |
Accrued volume incentives and service fees |
483 |
|
|
1,523 |
|
Accrued liabilities |
(5,473 |
) |
|
59 |
|
Deferred revenue |
(111 |
) |
|
582 |
|
Lease liabilities |
(2,487 |
) |
|
(2,072 |
) |
Income taxes payable |
261 |
|
|
607 |
|
Liability related to unrecognized tax benefits |
(87 |
) |
|
(135 |
) |
Deferred compensation payable |
— |
|
|
(115 |
) |
Net cash provided by operating activities |
10,712 |
|
|
14,420 |
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
Purchases of property, plant and equipment |
(2,898 |
) |
|
(2,210 |
) |
Net cash used in investing activities |
(2,898 |
) |
|
(2,210 |
) |
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
Payments of cash dividends |
(19,858 |
) |
|
— |
|
Principal payments of long-term debt |
(698 |
) |
|
— |
|
Proceeds from note payable |
— |
|
|
5,374 |
|
Payments related to tax withholding for net-share settled equity
awards |
(1,574 |
) |
|
— |
|
Tax benefit from exercise of stock options |
— |
|
|
(210 |
) |
Repurchase of common shares |
(1,500 |
) |
|
— |
|
Net cash provided by (used in) financing activities |
(23,630 |
) |
|
5,164 |
|
Effect of exchange rates on
cash and cash equivalents |
(1,351 |
) |
|
(748 |
) |
Net increase (decrease) in
cash and cash equivalents |
(17,167 |
) |
|
16,626 |
|
Cash and cash equivalents at
the beginning of the period |
92,069 |
|
|
53,629 |
|
Cash and cash equivalents at
the end of the period |
$ |
74,902 |
|
|
$ |
70,255 |
|
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION: |
|
|
|
Cash paid for income taxes, net of refunds |
$ |
2,582 |
|
|
$ |
2,143 |
|
Cash paid for interest |
111 |
|
|
3 |
|
|
|
|
|
|
|
|
NATURE’S SUNSHINE PRODUCTS, INC. AND
SUBSIDIARIESRECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(Amounts in thousands)(Unaudited) |
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income |
$ |
6,794 |
|
|
$ |
6,133 |
|
|
$ |
10,946 |
|
|
$ |
9,139 |
|
Adjustments: |
|
|
|
|
|
|
|
Depreciation and amortization |
2,805 |
|
|
2,468 |
|
|
5,541 |
|
|
5,070 |
|
Share-based compensation expense |
1,066 |
|
|
736 |
|
|
2,071 |
|
|
1,130 |
|
Other (income) loss, net* |
(529 |
) |
|
(1,509 |
) |
|
1,404 |
|
|
901 |
|
Provision for income taxes |
3,221 |
|
|
1,976 |
|
|
4,771 |
|
|
3,722 |
|
Other adjustments (1) |
— |
|
|
(135 |
) |
|
175 |
|
|
(635 |
) |
Adjusted EBITDA |
$ |
13,357 |
|
|
$ |
9,669 |
|
|
$ |
24,908 |
|
|
$ |
19,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other adjustments |
|
|
|
|
|
|
|
Capital allocation and other expenses |
$ |
— |
|
|
$ |
— |
|
|
$ |
175 |
|
|
$ |
— |
|
VAT refund |
— |
|
|
(135 |
) |
|
— |
|
|
(635 |
) |
Total adjustments |
$ |
— |
|
|
$ |
(135 |
) |
|
$ |
175 |
|
|
$ |
(635 |
) |
* Other (income) loss, net is primarily comprised of foreign
exchange (gains) losses, interest income, and interest expense.
|
NATURE’S SUNSHINE PRODUCTS, INC. AND
SUBSIDIARIESRECONCILIATION OF GAAP NET INCOME TONON-GAAP NET INCOME
and NON-GAAP ADJUSTED EPS (Amounts in thousands)(Unaudited) |
|
|
|
|
|
Three Months EndedJune 30, |
|
Six Months EndedJune 30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income |
$ |
6,794 |
|
|
$ |
6,133 |
|
|
$ |
10,946 |
|
|
$ |
9,139 |
|
Adjustments: |
|
|
|
|
|
|
|
Capital allocation and other expenses |
— |
|
|
— |
|
|
175 |
|
|
— |
|
VAT refund |
— |
|
|
(135 |
) |
|
— |
|
|
(635 |
) |
Tax impact of adjustments |
— |
|
|
— |
|
|
(44 |
) |
|
— |
|
Total adjustments |
— |
|
|
(135 |
) |
|
131 |
|
|
(635 |
) |
Non-GAAP net income |
$ |
6,794 |
|
|
$ |
5,998 |
|
|
$ |
11,077 |
|
|
$ |
8,504 |
|
|
|
|
|
|
|
|
|
Reported income attributable
to common shareholders |
$ |
6,540 |
|
|
$ |
5,754 |
|
|
$ |
10,556 |
|
|
$ |
8,716 |
|
Total adjustments |
— |
|
|
(135 |
) |
|
131 |
|
|
(635 |
) |
Non-GAAP net income
attributable to common shareholders |
$ |
6,540 |
|
|
$ |
5,619 |
|
|
$ |
10,687 |
|
|
$ |
8,081 |
|
|
|
|
|
|
|
|
|
Basic income per share, as reported |
$ |
0.33 |
|
|
$ |
0.30 |
|
|
$ |
0.53 |
|
|
$ |
0.45 |
|
Total adjustments, net of tax |
— |
|
|
(0.01 |
) |
|
0.01 |
|
|
(0.03 |
) |
Basic income per share, as adjusted |
$ |
0.33 |
|
|
$ |
0.29 |
|
|
$ |
0.54 |
|
|
$ |
0.42 |
|
|
|
|
|
|
|
|
|
Diluted income per share, as reported |
$ |
0.32 |
|
|
$ |
0.29 |
|
|
$ |
0.52 |
|
|
$ |
0.44 |
|
Total adjustments, net of tax |
— |
|
|
(0.01 |
) |
|
0.01 |
|
|
(0.03 |
) |
Diluted income per share, as adjusted |
$ |
0.32 |
|
|
$ |
0.28 |
|
|
$ |
0.53 |
|
|
$ |
0.41 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natures Sunshine Products (NASDAQ:NATR)
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