UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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February 9, 2024
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Date of Report (Date of earliest event reported)
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NU SKIN ENTERPRISES, INC.
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(Exact name of registrant as specified in its charter)
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Delaware
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001-12421
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87-0565309
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification Number)
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75 West Center Street
Provo, Utah 84601
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(Address of principal executive offices and zip code)
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(801) 345-1000
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(Registrant’s telephone number, including area code)
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N/A
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(Former name or former address, if changed since last report)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
☐
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))
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Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Class A Common Stock, $.001 par value
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NUS
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New York Stock Exchange
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of
the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended
transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| Item 2.02 |
Results of Operations and Financial Condition.
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On February 14, 2024, Nu Skin Enterprises, Inc. (the “Company”) issued a press release announcing its financial results for the three-month and annual periods ended
December 31, 2023, and certain other information. A copy of the press release is attached as Exhibit 99.1 to this report.
The information furnished pursuant to this Item 2.02 and Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such filing.
| Item 5.02 |
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
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On February 9, 2024, Joseph Chang informed Nu Skin Enterprises, Inc. (the “Company”) that he will be stepping down from his role as Chief Scientific Officer as of March 30,
2024. It is anticipated that he will transition to leading the Company’s Scientific Advisory Board. On February 10, 2024, the Company’s Board of Directors determined that the Chief Scientific Officer role is no longer an executive officer position.
The Company and its management wish to express their appreciation to Dr. Chang for the important contributions he has made since joining the Company more than 20 years ago, and they look forward to his continued involvement with the Company.
| Item 9.01 |
Financial Statements and Exhibits.
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Nu Skin Enterprises’ press release dated February 14, 2024, regarding financial results for the three-month and annual periods ended December 31, 2023.
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document).
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
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NU SKIN ENTERPRISES, INC.
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(Registrant)
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/s/ James D. Thomas
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James D. Thomas
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Chief Financial Officer
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Date: February 14, 2024
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FOR IMMEDIATE RELEASE
Nu Skin Enterprises Reports Fourth Quarter and Full-year 2023 Results
Above Company Guidance
Company updates capital allocation priorities, announces dividend
and provides initial outlook for Q1 and FY 2024
PROVO, Utah — Feb. 14, 2024 — Nu Skin Enterprises
Inc. (NYSE: NUS) today announced fourth quarter and full-year 2023 results slightly above its latest guidance.
Executive Summary
Q4 2023 vs. Prior-year Quarter
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Revenue
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$488.6 million; (6)%
• (1)% FX impact or
$(7.2) million
• Rhyz revenue $65.1
million; 101%
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Earnings Per Share
(EPS)
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$0.15 or $0.37 excluding restructuring and other charges, compared to $1.15 or $0.89 excluding restructuring and impairment charges and a favorable tax rate in Q4
22
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Customers
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977,039; (15)%
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Paid Affiliates
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166,886; (30)% or (13)% excluding an adjustment to eligibility requirements
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Sales Leaders
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44,059; (10)%
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Executive Summary
2023 vs. 2022
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Revenue:
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$1.97 billion; (12)%
• (3)% FX impact or
$(60.4) million
• Rhyz revenue $216.6
million; 41%
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Earnings Per Share
(EPS):
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$0.17 or $1.85 excluding inventory write-off and other charges, compared to $2.07 or $2.90 excluding restructuring and impairment charges
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“While we continue to work toward our long-term vision of becoming the world’s leading integrated beauty and wellness platform, our progress was impacted by persistent
macro-economic pressures and disruptions associated with transforming our business,” said Ryan Napierski, Nu Skin president and CEO. “This was particularly evident with our fourth quarter results, which were down in our Americas, South Korea and
Europe & Africa segments. This was offset by seasonal promotions in Mainland China, stabilization in Japan and modest growth in our Hong Kong/Taiwan segment. In addition, we achieved strong growth in our Rhyz businesses, which accounted for 13
percent of our revenue in the fourth quarter.
“We are committed to generating long-term enterprise value by repositioning our company to win in the rapidly evolving beauty and wellness industries by further transforming our core Nu Skin business and accelerating
investment in our rapidly growing Rhyz ecosystem,” continued Napierski. “To enhance this transformation, we are reassessing our approach to capital allocation to invest in long-term growth and business evolution. This initiative aims to grant us
increased financial flexibility, enabling us to effectively seize forthcoming growth opportunities. This includes rebalancing our dividend payout ratio to be in line with or better than our industry peers. With the additional available capital, we
will focus our investments relatively evenly across three key initiatives: 1) accelerating the growth opportunities in Rhyz; 2) facilitating a new market expansion model beginning with India anticipated in 2025; and 3) furthering the build-out of
our digital-first affiliate opportunity platform. While we continue to navigate the challenges of a business transformation amid these disruptive times, we have fine-tuned our strategy and remain confident in our ability to generate long-term
growth and value for shareholders.”
Q4 2023 Year-over-year Operating Results
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Revenue
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$488.6 million compared to $522.3 million
• (1)% FX impact or
$(7.2) million
• Rhyz revenue $65.1
million; 101%
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Gross Margin
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72.1% compared to 71.7%
• Nu Skin business
was 77.4% compared to 74.9%
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Selling Expenses
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37.1% compared to 38.5%
• Nu Skin business was
40.8% compared to 40.5%
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G&A Expenses
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29.7% compared to 24.4%
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Operating Margin
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3.3% or 6.4% excluding restructuring and other charges compared to 5.3% or 8.8% excluding restructuring and impairment charges
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Other Expense
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$(6.7) million compared to $(3.1) million
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Income Tax Rate
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21.9% or 24.9% excluding restructuring and other charges compared to (134.9)% or (3.7)% excluding restructuring and impairment charges
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EPS
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$0.15 or $0.37 excluding restructuring and other charges compared to $1.15 or $0.89 excluding restructuring and impairment charges and a tax method change
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Stockholder Value
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Dividend Payments
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$19.3 million
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Stock Repurchases
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$0.0 million
• $162.4 million
remaining in authorization
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Q1 and Full-year 2024 Outlook
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Q1 2024 Revenue
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$400 to $435 million; (17)% to (10)%
• Approximately (3) to
(2)% FX impact
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Q1 2024 EPS
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$(0.07) to $0.03 or $0.00 to $0.10 non-GAAP
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2024 Revenue
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$1.73 to $1.87 billion; (12)% to (5)%
• Approximately (1)% FX
impact
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2024 EPS
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$0.75 to $1.15 or $0.95 to $1.35 non-GAAP
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“Our initial 2024 guidance assumes the global macro environment remains challenging in the near-term, improving throughout the year,” said James D. Thomas, chief financial officer. “Our annual revenue guidance is $1.73 to $1.87 billion, with an approximate 1% foreign currency headwind. We anticipate reported EPS of $0.75 to $1.15
or adjusted earnings of $0.95 to $1.35, excluding charges associated with our extended restructuring plan. Our guidance reflects an anticipated higher global effective tax rate, primarily due to the expected geographical mix of earnings during the
year. For the first quarter, we project revenue of $400 to $435 million, assuming a negative foreign currency impact of approximately 3%, with reported earnings per share of $(0.07) to $0.03 or $0.00 to $0.10 excluding restructuring charges.”
Dividend Payout
The Nu Skin Enterprises board of directors has declared a quarterly cash dividend of $0.06 per share, which will be paid on March 6, 2024, to
shareholders of record on Feb. 26, 2024.
Conference Call
The Nu Skin Enterprises management team will host a conference call with the investment community today at 5 p.m. (ET). Those wishing to access the
webcast, as well as the financial information presented during the call, can visit the Investor Relations page on the company’s website at ir.nuskin.com. A replay of the webcast will be available on the same page through Feb. 28, 2024.
About Nu Skin Enterprises Inc.
The Nu Skin Enterprises Inc. (NYSE: NUS) family of companies includes Nu Skin and Rhyz
Inc. Nu Skin is an integrated beauty and wellness company, powered by a dynamic
affiliate opportunity platform, which operates in nearly 50 markets worldwide. Backed by nearly 40 years of scientific research, the company’s products help people look, feel and live their best with brands including Nu Skin® personal care,
Pharmanex® nutrition and ageLOC® anti-aging, which includes an award-winning line of beauty device systems. Formed in 2018, Rhyz is a synergistic ecosystem of consumer, technology and manufacturing companies focused on innovation within the beauty,
wellness and lifestyle categories.
Important Information Regarding Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the
company’s current expectations and beliefs. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws and include, but are not limited to, statements of management’s
expectations regarding the macro environment and the company’s performance, growth and growth opportunities, shareholder value, financial flexibility, transformation, evolution, investments, initiatives, digital tools and initiatives, and new
market expansion; projections regarding revenue, expenses, tax rates, earnings per share, foreign currency fluctuations, future dividends, uses of cash and other financial items; statements of belief; and statements of assumptions underlying any of
the foregoing. In some cases, you can identify these statements by forward-looking words such as “believe,” “expect,” “aim,” “commit,” “reposition”, “anticipate,” “accelerate,” “project,” “vision,” “continue,” “outlook,” “guidance,” “improve,”
“will,” “would,” “could,” “may,” “might,” the negative of these words and other similar words.
The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially
from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to, the following:
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any failure of current or planned initiatives or products to generate interest among the company’s sales force and customers and generate sponsoring and selling
activities on a sustained basis;
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risk that direct selling laws and regulations in any of the company’s markets, including the United States and Mainland China, may be modified, interpreted or
enforced in a manner that results in negative changes to the company’s business model or negatively impacts its revenue, sales force or business, including through the interruption of sales activities, loss of licenses, increased scrutiny of
sales force actions, imposition of fines, or any other adverse actions or events;
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economic conditions and events globally;
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competitive pressures in the company’s markets;
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risk that epidemics, including COVID-19 and related disruptions, or other crises could negatively impact our business;
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adverse publicity related to the company’s business, products, industry or any legal actions or complaints by the company’s sales force or others;
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political, legal, tax and regulatory uncertainties, including trade policies, associated with operating in Mainland China and other international markets;
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uncertainty regarding meeting restrictions and other government scrutiny in Mainland China, as well as negative media and consumer sentiment in Mainland China on
our business operations and results;
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risk of foreign-currency fluctuations and the currency translation impact on the company’s business associated with these fluctuations;
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uncertainties regarding the future financial performance of the businesses the company has acquired;
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risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support planned initiatives or launch strategies, and
increased risk of inventory write-offs if the company over-forecasts demand for a product or changes its planned initiatives or launch strategies;
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regulatory risks associated with the company’s products, which could require the company to modify its claims or inhibit its ability to import or continue selling
a product in a market if the product is determined to be a medical device or if the company is unable to register the product in a timely manner under applicable regulatory requirements; and
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the company’s future tax-planning initiatives, any prospective or retrospective increases in duties or tariffs on the company’s products imported into the
company’s markets outside of the United States, and any adverse results of tax audits or unfavorable changes to tax laws in the company’s various markets.
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The company’s financial performance and the forward-looking statements contained herein are further qualified by a detailed discussion of associated
risks set forth in the documents filed by the company with the Securities and Exchange Commission. The forward-looking statements set forth the company’s beliefs as of the date that such information was first provided, and the company assumes no duty
to update the forward-looking statements contained in this release to reflect any change except as required by law.
Non-GAAP Financial Measures:
Constant-currency revenue change is a non-GAAP financial measure that removes the impact of fluctuations in foreign-currency exchange rates, thereby facilitating period-to-period comparisons of the company’s performance. It is calculated by
translating the current period’s revenue at the same average exchange rates in effect during the applicable prior-year period and then comparing that amount to the prior-year period’s revenue. The company believes that constant-currency revenue
change is useful to investors, lenders and analysts because such information enables them to gauge the impact of foreign-currency fluctuations on the company’s revenue from period to period.
Earnings per share, operating margin and income tax rate, each excluding inventory write-off charges, restructuring charges, and/or other charges,
also are non-GAAP financial measures. Inventory write-off charges and restructuring charges are not part of the ongoing operations of our underlying business, and the legal accrual and non-recurring foreign tax charge that have been excluded in the
non-GAAP financial measures are not typical for our ongoing operations. The company believes that these non-GAAP financial measures are useful to investors, lenders and analysts because removing the impact of these charges facilitates
period-to-period comparisons of the company’s performance. Please see the reconciliations of these items to our earnings per share, operating margin and income tax rate calculated under GAAP, below.
The following table sets forth revenue for the three-month periods ended December 31, 2023, and 2022 for each of our reportable segments (U.S. dollars in thousands):
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Three Months Ended
December 31,
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Change
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Constant-
Currency
Change
|
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2023
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2022
|
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Nu Skin
|
|
|
|
|
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Americas
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$
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97,753
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|
|
$
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128,921
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|
|
|
(24
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)%
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|
|
(19
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)%
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|
Mainland China
|
|
|
71,516
|
|
|
|
73,935
|
|
|
|
(3
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)%
|
|
|
(2
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)%
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|
Southeast Asia/Pacific
|
|
|
66,889
|
|
|
|
76,606
|
|
|
|
(13
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)%
|
|
|
(12
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)%
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|
South Korea
|
|
|
48,380
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|
|
|
60,029
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|
|
|
(19
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)%
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|
|
(22
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)%
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Japan
|
|
|
50,966
|
|
|
|
53,877
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|
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|
(5
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)%
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|
|
(1
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)%
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Europe & Africa
|
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|
47,892
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|
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|
55,337
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|
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|
(13
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)%
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|
(18
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)%
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|
Hong Kong/Taiwan
|
|
|
41,209
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|
|
|
39,789
|
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|
4
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%
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|
|
5
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%
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|
Nu Skin other
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|
|
(1,066
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)
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|
|
1,525
|
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|
(170
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)%
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|
|
(170
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)%
|
|
Total Nu Skin
|
|
|
423,539
|
|
|
|
490,019
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|
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(14
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)%
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|
|
(12
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)%
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|
Rhyz
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Manufacturing
|
|
|
50,363
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|
|
|
29,560
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|
|
|
70
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%
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|
|
70
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%
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|
Rhyz other
|
|
|
14,738
|
|
|
|
2,761
|
|
|
|
434
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%
|
|
|
434
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%
|
|
Total Rhyz
|
|
|
65,101
|
|
|
|
32,321
|
|
|
|
101
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%
|
|
|
101
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%
|
|
Total
|
|
$
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488,640
|
|
|
$
|
522,340
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|
|
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(6
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)%
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|
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(5
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)%
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The following table sets forth revenue for the years ended December 31, 2023, and 2022 for each of our reportable segments (U.S. dollars in thousands):
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Year Ended
December 31,
|
|
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Change
|
|
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Constant-
Currency
Change
|
|
| |
|
2023
|
|
|
2022
|
|
|
|
Nu Skin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
$
|
398,222
|
|
|
$
|
508,537
|
|
|
|
(22
|
)%
|
|
|
(18
|
)%
|
|
Mainland China
|
|
|
298,079
|
|
|
|
360,389
|
|
|
|
(17
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)%
|
|
|
(13
|
)%
|
|
Southeast Asia/Pacific
|
|
|
267,206
|
|
|
|
344,411
|
|
|
|
(22
|
)%
|
|
|
(21
|
)%
|
|
South Korea
|
|
|
236,099
|
|
|
|
268,707
|
|
|
|
(12
|
)%
|
|
|
(11
|
)%
|
|
Japan
|
|
|
207,833
|
|
|
|
224,896
|
|
|
|
(8
|
)%
|
|
|
(1
|
)%
|
|
Europe & Africa
|
|
|
192,352
|
|
|
|
204,275
|
|
|
|
(6
|
)%
|
|
|
(8
|
)%
|
|
Hong Kong/Taiwan
|
|
|
153,589
|
|
|
|
157,197
|
|
|
|
(2
|
)%
|
|
|
1
|
%
|
|
Nu Skin other
|
|
|
-858
|
|
|
|
3,959
|
|
|
|
(122
|
)%
|
|
|
(122
|
)%
|
|
Total Nu Skin
|
|
|
1,752,522
|
|
|
|
2,072,371
|
|
|
|
(15
|
)%
|
|
|
(13
|
)%
|
|
Rhyz
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
|
|
181,395
|
|
|
|
149,458
|
|
|
|
21
|
%
|
|
|
21
|
%
|
|
Rhyz other
|
|
|
35,214
|
|
|
|
3,830
|
|
|
|
819
|
%
|
|
|
819
|
%
|
|
Total Rhyz
|
|
|
216,609
|
|
|
|
153,288
|
|
|
|
41
|
%
|
|
|
41
|
%
|
|
Total
|
|
$
|
1,969,131
|
|
|
$
|
2,225,659
|
|
|
|
(12
|
)%
|
|
|
(9
|
)%
|
The following table provides information concerning the number of Customers, Paid Affiliates and Sales Leaders in our core Nu Skin business for the three-month periods
ended December 31, 2023, and 2022:
| |
|
Year Ended
December 31,
|
|
|
Change
|
|
| |
|
2023
|
|
|
2022
|
|
|
|
|
Customers
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
231,183
|
|
|
|
299,287
|
|
|
|
(23
|
)%
|
|
Mainland China
|
|
|
207,276
|
|
|
|
202,933
|
|
|
|
2
|
%
|
|
Southeast Asia/Pacific
|
|
|
106,471
|
|
|
|
141,183
|
|
|
|
(25
|
)%
|
|
South Korea
|
|
|
103,151
|
|
|
|
123,749
|
|
|
|
(17
|
)%
|
|
Japan
|
|
|
113,670
|
|
|
|
119,152
|
|
|
|
(5
|
)%
|
|
Europe & Africa
|
|
|
163,178
|
|
|
|
197,917
|
|
|
|
(18
|
)%
|
|
Hong Kong/Taiwan
|
|
|
52,110
|
|
|
|
62,903
|
|
|
|
(17
|
)%
|
|
Total Customers
|
|
|
977,039
|
|
|
|
1,147,124
|
|
|
|
(15
|
)%
|
|
Paid Affiliates
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
31,910
|
|
|
|
42,633
|
|
|
|
(25
|
)%
|
|
Mainland China
|
|
|
25,889
|
|
|
|
23,436
|
|
|
|
10
|
%
|
|
Southeast Asia/Pacific
|
|
|
34,404
|
|
|
|
38,653
|
|
|
|
(11
|
)%
|
|
South Korea(1)
|
|
|
22,166
|
|
|
|
45,058
|
|
|
|
(51
|
)%
|
|
Japan(1)
|
|
|
22,417
|
|
|
|
38,021
|
|
|
|
(41
|
)%
|
|
Europe & Africa(1)
|
|
|
18,888
|
|
|
|
31,869
|
|
|
|
(41
|
)%
|
|
Hong Kong/Taiwan(1)
|
|
|
11,212
|
|
|
|
17,286
|
|
|
|
(35
|
)%
|
|
Total Paid Affiliates
|
|
|
166,886
|
|
|
|
236,956
|
|
|
|
(30
|
)%
|
|
Sales Leaders
|
|
|
|
|
|
|
|
|
|
|
Americas
|
|
|
7,126
|
|
|
|
9,594
|
|
|
|
(26
|
)%
|
|
Mainland China
|
|
|
11,296
|
|
|
|
12,359
|
|
|
|
(9
|
)%
|
|
Southeast Asia/Pacific
|
|
|
6,418
|
|
|
|
6,999
|
|
|
|
(8
|
)%
|
|
South Korea
|
|
|
5,249
|
|
|
|
6,094
|
|
|
|
(14
|
)%
|
|
Japan
|
|
|
7,086
|
|
|
|
5,936
|
|
|
|
19
|
%
|
|
Europe & Africa
|
|
|
3,968
|
|
|
|
4,740
|
|
|
|
(16
|
)%
|
|
Hong Kong/Taiwan
|
|
|
2,916
|
|
|
|
3,015
|
|
|
|
(3
|
)%
|
|
Total Sales Leaders
|
|
|
44,059
|
|
|
|
48,737
|
|
|
|
(10
|
)%
|
(1) The December 31, 2023, number is affected by a change in eligibility requirements for receiving certain rewards within our compensation structure. We plan to
implement these changes in additional segments over the next several quarters. We estimate the change in eligibility requirements resulted in a reduction of approximately 14 thousand, 15 thousand, 6 thousand and 3 thousand for South Korea, Japan,
Europe & Africa and Hong Kong/Taiwan, respectively.
|
● |
“Customers” are persons who have purchased directly from the Company during the three months ended as of the date indicated. Our Customer numbers include members of our sales force
who made such a purchase, including Paid Affiliates and those who qualify as Sales Leaders, but they do not include consumers who purchase directly from members of our sales force.
|
|
● |
“Paid Affiliates” are any Brand Affiliates, as well as members of our sales force in Mainland China, who earned sales compensation during the three-month period. In all of our
markets besides Mainland China, we refer to members of our independent sales force as “Brand Affiliates” because their primary role is to promote our brand and products through their personal social networks.
|
|
● |
“Sales Leaders” are the three-month average of our monthly Brand Affiliates, as well as sales employees and independent marketers in Mainland China, who achieved certain
qualification requirements as of the end of each month of the quarter.
|
NU SKIN ENTERPRISES, INC.
Consolidated Statements of Income (Unaudited)
(U.S. dollars in thousands, except per share amounts)
| |
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
| |
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
Revenue
|
|
$
|
488,640
|
|
|
$
|
522,340
|
|
|
$
|
1,969,131
|
|
|
$
|
2,225,659
|
|
|
Cost of sales
|
|
|
136,215
|
|
|
|
147,816
|
|
|
|
611,850
|
|
|
|
630,915
|
|
|
Gross profit
|
|
|
352,425
|
|
|
|
374,524
|
|
|
|
1,357,281
|
|
|
|
1,594,744
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling expenses
|
|
|
181,326
|
|
|
|
201,031
|
|
|
|
742,365
|
|
|
|
879,634
|
|
|
General and administrative expenses
|
|
|
145,033
|
|
|
|
127,664
|
|
|
|
546,858
|
|
|
|
555,769
|
|
|
Restructuring and impairment expenses
|
|
|
10,003
|
|
|
|
18,370
|
|
|
|
19,790
|
|
|
|
48,494
|
|
|
Total operating expenses
|
|
|
336,362
|
|
|
|
347,065
|
|
|
|
1,309,013
|
|
|
|
1,483,897
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss)
|
|
|
16,063
|
|
|
|
27,459
|
|
|
|
48,268
|
|
|
|
110,847
|
|
|
Other income (expense), net
|
|
|
(6,735
|
)
|
|
|
(3,104
|
)
|
|
|
(21,690
|
)
|
|
|
(21,877
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before provision for income taxes
|
|
|
9,328
|
|
|
|
24,355
|
|
|
|
26,578
|
|
|
|
88,970
|
|
|
Provision (benefit) for income taxes
|
|
|
2,046
|
|
|
|
(32,860
|
)
|
|
|
17,983
|
|
|
|
(15,808
|
)
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
7,282
|
|
|
$
|
57,215
|
|
|
$
|
8,595
|
|
|
$
|
104,778
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.15
|
|
|
$
|
1.16
|
|
|
$
|
0.17
|
|
|
$
|
2.10 |
|
|
Diluted
|
|
$
|
0.15
|
|
|
$
|
1.15
|
|
|
$
|
0.17
|
|
|
$
|
2.07
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding (000s):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
49,411
|
|
|
|
49,452
|
|
|
|
49,711
|
|
|
|
50,002
|
|
|
Diluted
|
|
|
49,479
|
|
|
|
49,783
|
|
|
|
49,860
|
|
|
|
50,525
|
|
NU SKIN ENTERPRISES, INC.
Consolidated Balance Sheets (Unaudited)
(U.S. dollars in thousands)
| |
|
December 31,
2023
|
|
|
December 31,
2022
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
256,057
|
|
|
$
|
264,725
|
|
|
Current investments
|
|
|
11,759
|
|
|
|
13,784
|
|
|
Accounts receivable, net
|
|
|
72,879
|
|
|
|
47,360
|
|
|
Inventories, net
|
|
|
279,978
|
|
|
|
346,183
|
|
|
Prepaid expenses and other
|
|
|
81,198
|
|
|
|
87,816
|
|
|
Total current assets
|
|
|
701,871
|
|
|
|
759,868
|
|
| |
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
432,965
|
|
|
|
444,806
|
|
|
Operating lease right-of-use assets
|
|
|
90,107
|
|
|
|
98,734
|
|
|
Goodwill
|
|
|
230,768
|
|
|
|
206,432
|
|
|
Other intangible assets, net
|
|
|
105,309
|
|
|
|
66,701
|
|
|
Other assets
|
|
|
245,443
|
|
|
|
244,429
|
|
|
Total assets
|
|
$
|
1,806,463
|
|
|
$
|
1,820,970
|
|
| |
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
43,505
|
|
|
$
|
53,963
|
|
|
Accrued expenses
|
|
|
260,366
|
|
|
|
280,280
|
|
|
Current portion of long-term debt
|
|
|
25,000
|
|
|
|
25,000
|
|
|
Total current liabilities
|
|
|
328,871
|
|
|
|
359,243
|
|
| |
|
|
|
|
|
|
|
|
|
Operating lease liabilities
|
|
|
70,943
|
|
|
|
76,540
|
|
|
Long-term debt
|
|
|
478,040
|
|
|
|
377,466
|
|
|
Other liabilities
|
|
|
106,641
|
|
|
|
110,425
|
|
|
Total liabilities
|
|
|
984,495
|
|
|
|
923,674
|
|
| |
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
Stockholders’ equity:
|
|
|
|
|
|
|
|
|
|
Class A common stock – 500 million shares authorized, $0.001 par value, 90.6 million shares issued
|
|
|
91
|
|
|
|
91
|
|
|
Additional paid-in capital
|
|
|
621,853
|
|
|
|
613,278
|
|
|
Treasury stock, at cost – 41.1 million and 41.1 million shares
|
|
|
(1,570,440
|
)
|
|
|
(1,569,061
|
)
|
|
Accumulated other comprehensive loss
|
|
|
(100,006
|
)
|
|
|
(86,509
|
)
|
|
Retained earnings
|
|
|
1,870,470
|
|
|
|
1,939,497
|
|
|
Total stockholders’ equity
|
|
|
821,968
|
|
|
|
897,296
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
1,806,463
|
|
|
$
|
$1,820,970
|
|
NU SKIN ENTERPRISES, INC.
Reconciliation of Operating Margin Excluding Impact of Certain Charges to GAAP Operating Margin
(in thousands, except for per share amounts)
| |
|
Three months ended
December 31,
|
|
|
Year ended
December 31,
|
|
| |
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
Operating Income
|
|
$
|
16,063
|
|
|
$
|
27,459
|
|
|
$
|
48,268
|
|
|
$
|
110,847
|
|
|
Impact of inventory write-off
|
|
|
-
|
|
|
|
-
|
|
|
|
65,728
|
|
|
|
26,905
|
|
|
Impact of restructuring and impairment
|
|
|
10,003
|
|
|
|
18,370
|
|
|
|
19,790
|
|
|
|
48,494
|
|
|
Impact of other charges(2)
|
|
|
5,260
|
|
|
|
-
|
|
|
|
5,260
|
|
|
|
-
|
|
|
Adjusted operating income
|
|
$
|
31,326
|
|
|
$
|
45,829
|
|
|
$
|
139,046
|
|
|
$
|
186,246
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin
|
|
|
3.3
|
%
|
|
|
5.3
|
%
|
|
|
2.5
|
%
|
|
|
5.0
|
%
|
|
Operating margin, excluding impact of certain charges
|
|
|
6.4
|
%
|
|
|
8.8
|
%
|
|
|
7.1
|
%
|
|
|
8.4
|
%
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
488,640
|
|
|
$
|
522,340
|
|
|
$
|
1,969,131
|
|
|
$
|
2,225,659
|
|
NU SKIN ENTERPRISES, INC.
Reconciliation of Effective Tax Rate Excluding Impact of Certain Charges to GAAP Effective Tax Rate
(in thousands, except for per share amounts)
| |
|
Three months ended
December 31,
|
|
|
Year ended
December 31,
|
|
| |
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
Provision (benefit) for income taxes
|
|
$
|
2,046
|
|
|
$
|
(32,860
|
)
|
|
$
|
17,983
|
|
|
$
|
(15,808
|
)
|
|
Impact of certain charges on provision for income taxes
|
|
|
4,081
|
|
|
|
31,284
|
|
|
|
7,324
|
|
|
|
42,838
|
|
|
Provision for income taxes, excluding impact of certain charges
|
|
$
|
6,127
|
|
|
$
|
(1,576
|
)
|
|
$
|
25,307
|
|
|
$
|
27,030
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision for income taxes
|
|
|
9,328
|
|
|
|
24,355
|
|
|
|
26,578
|
|
|
|
88,970
|
|
|
Impact of inventory write-off
|
|
|
-
|
|
|
|
-
|
|
|
|
65,728
|
|
|
|
26,905
|
|
|
Impact of restructuring and impairment
|
|
|
10,003
|
|
|
|
18,370
|
|
|
|
19,790
|
|
|
|
48,494
|
|
|
Impact of other charges(2)
|
|
|
5,260
|
|
|
|
-
|
|
|
|
5,260
|
|
|
|
-
|
|
|
Impact of charges associated with our exit from Grow Tech:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized investment loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9,009
|
|
|
Income before provision for income taxes, excluding impact of certain charges
|
|
$
|
24,591
|
|
|
$
|
42,725
|
|
|
$
|
117,356
|
|
|
$
|
173,378
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate
|
|
|
21.9
|
%
|
|
|
(134.9
|
)%
|
|
|
67.7
|
%
|
|
|
(17.8
|
)%
|
|
Effective tax rate, excluding impact of certain charges
|
|
|
24.9
|
%
|
|
|
(3.7
|
)%
|
|
|
21.6
|
%
|
|
|
15.6
|
%
|
NU SKIN ENTERPRISES, INC.
Reconciliation of Earnings Per Share Excluding Impact of Certain Charges to GAAP Earnings Per Share
(in thousands, except for per share amounts)
| |
|
Three months ended
December 31,
|
|
|
Year ended
December 31,
|
|
| |
|
2023
|
|
|
2022
|
|
|
2023
|
|
|
2022
|
|
|
Net income
|
|
$
|
7,282
|
|
|
$
|
57,215
|
|
|
$
|
8,595
|
|
|
$
|
104,778
|
|
|
Impact of restructuring and inventory write-off expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and impairment
|
|
|
10,003
|
|
|
|
18,370
|
|
|
|
19,790
|
|
|
|
48,494
|
|
|
Inventory write-off
|
|
|
-
|
|
|
|
-
|
|
|
|
65,728
|
|
|
|
26,905
|
|
|
Tax impact
|
|
|
(3,088
|
)
|
|
|
903
|
|
|
|
(6,331
|
)
|
|
|
(9,566
|
)
|
|
Impact of other charges: (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impact of other charges
|
|
|
5,260
|
|
|
|
|
|
|
|
5,260
|
|
|
|
|
|
|
Tax impact
|
|
|
(993
|
)
|
|
|
-
|
|
|
|
(993
|
)
|
|
|
-
|
|
|
Impact of charges associated with our exit from Grow Tech:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on investment
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
9,009
|
|
|
Tax impact
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,085
|
)
|
|
Tax impact
|
|
|
-
|
|
|
|
(32,187
|
)
|
|
|
-
|
|
|
|
(32,187
|
)
|
|
Adjusted net income
|
|
$
|
18,464
|
|
|
$
|
44,301
|
|
|
$
|
92,049
|
|
|
$
|
146,348
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
0.15
|
|
|
$
|
1.15
|
|
|
$
|
0.17
|
|
|
$
|
2.07
|
|
|
Diluted earnings per share, excluding impact of certain charges
|
|
$
|
0.37
|
|
|
$
|
0.89
|
|
|
$
|
1.85
|
|
|
$
|
2.90
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding (000)
|
|
|
49,479
|
|
|
|
49,783
|
|
|
|
49,860
|
|
|
|
50,525
|
|
(2) Other charges consist of a legal contingency ($3.0 million) and a non-recurring foreign tax charge ($2.3 million) that were recorded in the fourth quarter of 2023.
NU SKIN ENTERPRISES, INC.
Reconciliation of Earnings Per Share Excluding Impact of Restructuring to GAAP Earnings Per Share
| |
|
Three months ended
March 31,
|
|
|
Year ended
December 31,
|
|
| |
|
2024 - Low-
end
|
|
|
2024 High-
end
|
|
|
2024 - Low-
end
|
|
|
2024 High-
end
|
|
|
Earnings Per Share
|
|
$
|
(0.07
|
)
|
|
$
|
0.03
|
|
|
$
|
0.75
|
|
|
$
|
1.15
|
|
|
Impact of restructuring expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
|
|
|
0.10
|
|
|
|
0.10
|
|
|
|
0.30
|
|
|
|
0.30
|
|
|
Tax impact
|
|
|
(0.03
|
)
|
|
|
(0.03
|
)
|
|
|
(0.10
|
)
|
|
|
(0.10
|
)
|
|
Adjusted EPS
|
|
$
|
-
|
|
|
$
|
0.10
|
|
|
$
|
0.95
|
|
|
$
|
1.35
|
|
# # #
CONTACTS:
Media: media@nuskin.com, (801) 345-6397
Investors: investorrelations@nuskin.com, (801) 345-3577