Nature’s Sunshine Products, Inc. (Nasdaq: NATR) (Nature’s
Sunshine), a leading natural health and wellness company, reported
financial results for the third quarter ended September 30, 2021.
Third Quarter 2021 Financial Summary vs. Same Year-Ago
Quarter
- Net sales increased 14% to $114.7 million compared to $100.3
million.
- Net income was $5.5 million, or $0.24 per diluted share,
compared to $7.2 million, or $0.34 per diluted share.
- Adjusted EBITDA increased 38% to $12.9 million compared to $9.4
million.
Management Commentary
“Once again, we delivered the largest sales quarter in the
49-year history of the company,” said Terrence Moorehead, CEO of
Nature’s Sunshine. “Every market we operate in is growing and we
see ample runway for continued expansion. We have witnessed a
dramatic, fundamental change in Nature’s Sunshine’s business as our
powerful global growth strategies take effect. In fact, the
investments we’ve made to re-brand, sharpen our sales fundamentals,
and revamp our website contributed to broad customer and sales
growth during the quarter.
“From a supply chain perspective, we used our strong balance
sheet to increase product availability and leveraged our in-house
production capabilities to be more agile to our customers’ needs.
We are confident this strategy will better position us to satisfy
demand in a timely manner.
“As we look to the final quarter of the year, I’m proud of our
team’s execution of our transformation initiatives. While external
challenges remain across the globe, our brand momentum, our
investments in growth initiatives and our strong balance sheet
position us well to continue to drive shareholder value.”
Third Quarter 2021 Financial Results
|
Net Sales by Operating Segment
(Amounts in Thousands) |
|
Three Months EndedSeptember 30,
2021 |
|
Three Months EndedSeptember 30,
2020 |
|
PercentChange |
|
Impact ofCurrencyExchange |
|
PercentChangeExcludingImpact ofCurrency |
Asia |
$ |
48,417 |
|
|
$ |
38,099 |
|
|
27.1 |
% |
|
$ |
1,165 |
|
|
24.0 |
% |
Europe |
21,813 |
|
|
18,006 |
|
|
21.1 |
|
|
105 |
|
|
20.6 |
|
North America |
37,738 |
|
|
37,557 |
|
|
0.5 |
|
|
151 |
|
|
0.1 |
|
Latin America and Other |
6,778 |
|
|
6,588 |
|
|
2.9 |
|
|
130 |
|
|
0.9 |
|
|
$ |
114,746 |
|
|
$ |
100,250 |
|
|
14.5 |
% |
|
$ |
1,551 |
|
|
12.9 |
% |
Net sales in the third quarter increased 14.5% to a company
record of $114.7 million compared to $100.3 million in the year-ago
quarter. The increase was due to the continued execution of
business transformation initiatives, launch of new products, and
the easing of COVID-19-related restrictions in certain key markets.
Excluding foreign exchange rates, net sales in the third quarter of
2021 increased 12.9% compared to the prior year period.
Gross margin in the third quarter improved 147 basis points to
74.4% compared to 72.9% in the year-ago quarter. The increase in
gross margin is primarily a result of changes in market mix and
inventory obsolescence reserves recorded in the prior year.
Volume incentives as a percentage of net sales were 31.2%
compared to 34.2% in the third quarter of 2020. The decrease in
volume incentives is due to changes in market mix and growth in NSP
China. The decrease also reflects expected overall 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 third
quarter were $39.5 million compared to $33.3 million in the
year‐ago quarter. The increase was primarily attributable to higher
costs associated with incremental variable service fees in China
from net sales growth, and the implementation of business
transformation and sales growth initiatives in other markets. As a
percentage of net sales, SG&A expenses were 34.4% in the third
quarter of 2021 compared to 33.2% the year-ago quarter
Operating income in the third quarter of 2021 increased 83% to
$10.0 million, or 8.7% of net sales, compared to $5.5 million, or
5.5% of net sales, in the year-ago quarter.
Other income (loss), net, in the third quarter of 2021 was a
loss of $0.9 million compared to income of $0.7 million in the
third quarter of 2020. Other income (loss), net, primarily
consisted of foreign exchange gains (losses) as a result of net
changes in foreign currencies primarily in Asia, Europe and Latin
America. The provision for income taxes was $3.7 million in the
third quarter of 2021 compared to a benefit of $1.0 million for the
year-ago quarter.
GAAP net income attributable to common shareholders decreased to
$4.9 million, or $0.24 per diluted common share, compared to $6.8
million, or $0.34 per diluted common share, in the third quarter of
2020. Net income attributable to NSP China increased to $3.0
million, or $0.15 per diluted common share, for the third quarter
of 2021, compared to $2.1 million, or $0.10 per diluted common
share, for the third quarter of 2020.
Non-GAAP net income attributable to common shareholders
decreased to $4.1 million, or $0.21 per diluted common share,
compared to $6.9 million, or $0.34 per diluted common share in the
year-ago quarter. Non-GAAP 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, value-added-tax (VAT) refunds. A reconciliation of Non-GAAP
net income to GAAP net income is provided in the attached financial
tables.
Adjusted EBITDA increased 38% to $12.9 million in the third
quarter compared to $9.4 million in the third 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.
Balance Sheet and Cash Flow
Net cash provided by operating activities was $20.3 million for
the nine months ended September 30, 2021, compared to $26.8 million
provided in the prior year period. Capital expenditures during the
nine months ended September 30, 2021 totaled $4.6 million
compared to $3.5 million in the comparable period of
2020. During the nine months ended September 30, 2021,
the Company repurchased 350,000 shares at a total cost of $6.0
million. As of September 30, 2021, the Company had cash and
cash equivalents of $75.5 million and $2.7 million of debt.
Conference Call
The Company will hold a conference call today at 5:00 p.m.
Eastern time to discuss its third quarter 2021 results.
Date: Thursday, November 4, 2021Time: 5:00 p.m. Eastern time
(3:00 p.m. Mountain time)Toll-free dial-in number:
1-800-289-0438International dial-in number:
1-323-794-2423Conference ID: 9556803
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 November 18, 2021.
Toll-free replay number: 1-844-512-2921International replay
number: 1-412-317-6671Replay ID: 9556803
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:
- 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;
- 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;
- 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;
- 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 EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net sales |
$ |
114,746 |
|
|
|
$ |
100,250 |
|
|
|
$ |
326,145 |
|
|
|
$ |
283,462 |
|
|
|
Cost of sales |
29,419 |
|
|
|
27,175 |
|
|
|
84,861 |
|
|
|
74,873 |
|
|
Gross profit |
85,327 |
|
|
|
73,075 |
|
|
|
241,284 |
|
|
|
208,589 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
Volume incentives |
35,793 |
|
|
|
34,310 |
|
|
|
105,491 |
|
|
|
96,493 |
|
|
Selling, general and administrative |
39,528 |
|
|
|
33,294 |
|
|
|
108,666 |
|
|
|
92,863 |
|
|
Operating income |
10,006 |
|
|
|
5,471 |
|
|
|
27,127 |
|
|
|
19,233 |
|
|
Other income (loss), net |
(886 |
) |
|
|
671 |
|
|
|
(2,290 |
) |
|
|
(230 |
) |
|
Income before provision for income taxes |
9,120 |
|
|
|
6,142 |
|
|
|
24,837 |
|
|
|
19,003 |
|
|
Provision (benefit) for income taxes |
3,662 |
|
|
|
(1,027 |
) |
|
|
8,433 |
|
|
|
2,695 |
|
|
Net income |
5,458 |
|
|
|
7,169 |
|
|
|
16,404 |
|
|
|
16,308 |
|
|
Net income attributable to
noncontrolling interests |
600 |
|
|
|
414 |
|
|
|
990 |
|
|
|
837 |
|
|
Net income attributable to
common shareholders |
$ |
4,858 |
|
|
|
$ |
6,755 |
|
|
|
$ |
15,414 |
|
|
|
$ |
15,471 |
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net income
per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share attributable to common shareholders |
$ |
0.24 |
|
|
|
$ |
0.35 |
|
|
|
$ |
0.77 |
|
|
|
$ |
0.79 |
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share attributable to common shareholders |
$ |
0.24 |
|
|
|
$ |
0.34 |
|
|
|
$ |
0.76 |
|
|
|
$ |
0.78 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic common
shares outstanding |
19,894 |
|
|
|
19,533 |
|
|
|
19,896 |
|
|
|
19,493 |
|
|
Weighted average diluted
common shares outstanding |
20,375 |
|
|
|
19,859 |
|
|
|
20,292 |
|
|
|
19,820 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common
share |
$ |
— |
|
|
|
$ |
— |
|
|
|
$ |
1.00 |
|
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NATURE’S SUNSHINE PRODUCTS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(Amounts in
thousands)(Unaudited)
|
September 30,2021 |
|
December 31,2020 |
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
75,535 |
|
|
|
$ |
92,069 |
|
|
Accounts receivable, net of allowance for doubtful accounts of $445
and $454, respectively |
9,189 |
|
|
|
7,375 |
|
|
Inventories |
57,376 |
|
|
|
47,683 |
|
|
Prepaid expenses and other |
8,627 |
|
|
|
6,938 |
|
|
Total current assets |
150,727 |
|
|
|
154,065 |
|
|
|
|
|
|
Property, plant and equipment,
net |
52,538 |
|
|
|
54,355 |
|
|
Operating lease right-of-use
assets |
19,136 |
|
|
|
20,210 |
|
|
Investment securities -
trading |
950 |
|
|
|
989 |
|
|
Deferred income tax
assets |
5,842 |
|
|
|
8,693 |
|
|
Other assets |
10,559 |
|
|
|
11,186 |
|
|
Total assets |
$ |
239,752 |
|
|
|
$ |
249,498 |
|
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
7,580 |
|
|
|
$ |
6,486 |
|
|
Accrued volume incentives and service fees |
21,868 |
|
|
|
19,481 |
|
|
Accrued liabilities |
29,606 |
|
|
|
31,710 |
|
|
Deferred revenue |
1,513 |
|
|
|
2,092 |
|
|
Related party notes payable |
600 |
|
|
|
1,200 |
|
|
Income taxes payable |
3,540 |
|
|
|
2,387 |
|
|
Current portion of operating lease liabilities |
4,495 |
|
|
|
4,992 |
|
|
Current portion of note payable |
1,235 |
|
|
|
1,306 |
|
|
Total current liabilities |
70,437 |
|
|
|
69,654 |
|
|
|
|
|
|
Liability related to
unrecognized tax benefits |
5 |
|
|
|
92 |
|
|
Long-term portion of operating
lease liabilities |
16,510 |
|
|
|
16,412 |
|
|
Long-term note payable |
1,488 |
|
|
|
2,418 |
|
|
Deferred compensation
payable |
950 |
|
|
|
989 |
|
|
Deferred income tax
liabilities |
1,574 |
|
|
|
1,391 |
|
|
Other liabilities |
1,158 |
|
|
|
1,308 |
|
|
Total liabilities |
92,122 |
|
|
|
92,264 |
|
|
|
|
|
|
Shareholders’ equity: |
|
|
|
Common stock, no par value, 50,000 shares authorized, 19,775 and
19,697 shares issued and outstanding, respectively |
134,252 |
|
|
|
139,311 |
|
|
Retained earnings |
21,586 |
|
|
|
26,030 |
|
|
Noncontrolling interest |
2,838 |
|
|
|
1,848 |
|
|
Accumulated other comprehensive loss |
(11,046 |
) |
|
|
(9,955 |
) |
|
Total shareholders’ equity |
147,630 |
|
|
|
157,234 |
|
|
Total liabilities and shareholders’ equity |
$ |
239,752 |
|
|
|
$ |
249,498 |
|
|
NATURE’S SUNSHINE PRODUCTS, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Amounts
in thousands)(Unaudited)
|
Nine Months EndedSeptember
30, |
|
2021 |
|
2020 |
CASH FLOWS FROM OPERATING
ACTIVITIES: |
|
|
|
Net income |
$ |
16,404 |
|
|
|
$ |
16,308 |
|
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
Provision for doubtful accounts |
— |
|
|
|
116 |
|
|
Depreciation and amortization |
8,276 |
|
|
|
7,834 |
|
|
Non-cash lease expense |
4,043 |
|
|
|
2,398 |
|
|
Share-based compensation expense |
2,957 |
|
|
|
2,141 |
|
|
Loss on sale of property, plant and equipment |
24 |
|
|
|
7 |
|
|
Deferred income taxes |
2,891 |
|
|
|
1,210 |
|
|
Purchase of trading investment securities |
(30 |
) |
|
|
(47 |
) |
|
Proceeds from sale of trading investment securities |
175 |
|
|
|
221 |
|
|
Realized and unrealized gains on investments |
(62 |
) |
|
|
(41 |
) |
|
Foreign exchange losses |
2,483 |
|
|
|
354 |
|
|
Changes in assets and liabilities: |
|
|
|
Accounts receivable |
(2,054 |
) |
|
|
(1,692 |
) |
|
Inventories |
(10,771 |
) |
|
|
(1,361 |
) |
|
Prepaid expenses and other current assets |
(1,787 |
) |
|
|
(798 |
) |
|
Other assets |
(267 |
) |
|
|
(30 |
) |
|
Accounts payable |
421 |
|
|
|
1,102 |
|
|
Accrued volume incentives and service fees |
2,750 |
|
|
|
(1,370 |
) |
|
Accrued liabilities |
(1,646 |
) |
|
|
5,106 |
|
|
Deferred revenue |
(551 |
) |
|
|
295 |
|
|
Lease liabilities |
(4,170 |
) |
|
|
(2,276 |
) |
|
Income taxes payable |
1,316 |
|
|
|
(1,078 |
) |
|
Liability related to unrecognized tax benefits |
(87 |
) |
|
|
(1,417 |
) |
|
Deferred compensation payable |
(34 |
) |
|
|
(133 |
) |
|
Net cash provided by operating activities |
20,281 |
|
|
|
26,849 |
|
|
CASH FLOWS FROM INVESTING
ACTIVITIES: |
|
|
|
Purchases of property, plant and equipment |
(4,626 |
) |
|
|
(3,487 |
) |
|
Net cash used in investing activities |
(4,626 |
) |
|
|
(3,487 |
) |
|
CASH FLOWS FROM FINANCING
ACTIVITIES: |
|
|
|
Payments of cash dividends |
(19,858 |
) |
|
|
— |
|
|
Principal payments of long-term debt |
(1,001 |
) |
|
|
— |
|
|
Proceeds from note payable |
— |
|
|
|
5,374 |
|
|
Principal payments of related party borrowings |
(600 |
) |
|
|
(243 |
) |
|
Proceeds from the exercise of stock awards |
— |
|
|
|
192 |
|
|
Payments related to tax withholding for net-share settled equity
awards |
(2,016 |
) |
|
|
— |
|
|
Tax benefit from exercise of stock options |
— |
|
|
|
(298 |
) |
|
Repurchase of common shares |
(6,000 |
) |
|
|
— |
|
|
Net cash provided by (used in) financing activities |
(29,475 |
) |
|
|
5,025 |
|
|
Effect of exchange rates on
cash and cash equivalents |
(2,714 |
) |
|
|
244 |
|
|
Net increase (decrease) in
cash and cash equivalents |
(16,534 |
) |
|
|
28,631 |
|
|
Cash and cash equivalents at
the beginning of the period |
92,069 |
|
|
|
53,629 |
|
|
Cash and cash equivalents at
the end of the period |
$ |
75,535 |
|
|
|
$ |
82,260 |
|
|
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION: |
|
|
|
Cash paid for income taxes, net of refunds |
$ |
4,431 |
|
|
|
$ |
3,293 |
|
|
Cash paid for interest |
156 |
|
|
|
24 |
|
|
NATURE’S SUNSHINE PRODUCTS, INC. AND
SUBSIDIARIESRECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(Amounts in thousands)(Unaudited)
|
Three Months EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income |
$ |
5,458 |
|
|
|
$ |
7,169 |
|
|
|
$ |
16,404 |
|
|
|
$ |
16,308 |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
Depreciation and amortization |
2,735 |
|
|
|
2,764 |
|
|
|
8,276 |
|
|
|
7,834 |
|
|
Share-based compensation expense |
886 |
|
|
|
1,011 |
|
|
|
2,957 |
|
|
|
2,141 |
|
|
Other (income) loss, net* |
886 |
|
|
|
(671 |
) |
|
|
2,290 |
|
|
|
230 |
|
|
Provision (benefit) for income taxes |
3,662 |
|
|
|
(1,027 |
) |
|
|
8,433 |
|
|
|
2,695 |
|
|
Other adjustments (1) |
(687 |
) |
|
|
132 |
|
|
|
(512 |
) |
|
|
(503 |
) |
|
Adjusted EBITDA |
$ |
12,940 |
|
|
|
$ |
9,378 |
|
|
|
$ |
37,848 |
|
|
|
$ |
28,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Other adjustments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital allocation and other expenses |
$ |
90 |
|
|
|
$ |
— |
|
|
|
$ |
265 |
|
|
|
$ |
— |
|
|
|
Restructuring and other related expenses |
— |
|
|
|
132 |
|
|
|
— |
|
|
|
132 |
|
|
VAT refund |
(777 |
) |
|
|
— |
|
|
|
(777 |
) |
|
|
(635 |
) |
|
Total adjustments |
$ |
(687 |
) |
|
|
$ |
132 |
|
|
|
$ |
(512 |
) |
|
|
$ |
(503 |
) |
|
|
* 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 EndedSeptember
30, |
|
Nine Months EndedSeptember
30, |
|
2021 |
|
2020 |
|
2021 |
|
2020 |
Net income |
$ |
5,458 |
|
|
|
$ |
7,169 |
|
|
|
$ |
16,404 |
|
|
|
$ |
16,308 |
|
|
Adjustments: |
|
|
|
|
|
|
|
Capital allocation and other expenses |
90 |
|
|
|
— |
|
|
|
265 |
|
|
|
— |
|
|
Restructuring and other unusual expenses |
— |
|
|
|
132 |
|
|
|
— |
|
|
|
132 |
|
|
VAT refund |
(777 |
) |
|
|
— |
|
|
|
(777 |
) |
|
|
(635 |
) |
|
Tax impact of adjustments |
(22 |
) |
|
|
(33 |
) |
|
|
(66 |
) |
|
|
(33 |
) |
|
Total adjustments |
(709 |
) |
|
|
99 |
|
|
|
(578 |
) |
|
|
(536 |
) |
|
Non-GAAP net income |
$ |
4,749 |
|
|
|
$ |
7,268 |
|
|
|
$ |
15,826 |
|
|
|
$ |
15,772 |
|
|
|
|
|
|
|
|
|
|
Reported income attributable to common shareholders |
$ |
4,858 |
|
|
|
$ |
6,755 |
|
|
|
$ |
15,414 |
|
|
|
$ |
15,471 |
|
|
Total adjustments |
(709 |
) |
|
|
99 |
|
|
|
(578 |
) |
|
|
(536 |
) |
|
Non-GAAP net income attributable to common shareholders |
$ |
4,149 |
|
|
|
$ |
6,854 |
|
|
|
$ |
14,836 |
|
|
|
$ |
14,935 |
|
|
|
|
|
|
|
|
|
|
Basic income per share, as reported |
$ |
0.24 |
|
|
|
$ |
0.35 |
|
|
|
$ |
0.77 |
|
|
|
$ |
0.79 |
|
|
Total adjustments, net of tax |
(0.04 |
) |
|
|
0.01 |
|
|
|
(0.03 |
) |
|
|
(0.03 |
) |
|
Basic income per share, as adjusted |
$ |
0.20 |
|
|
|
$ |
0.36 |
|
|
|
$ |
0.74 |
|
|
|
$ |
0.76 |
|
|
|
|
|
|
|
|
|
|
Diluted income per share, as reported |
$ |
0.24 |
|
|
|
$ |
0.34 |
|
|
|
$ |
0.76 |
|
|
|
$ |
0.78 |
|
|
Total adjustments, net of tax |
(0.03 |
) |
|
|
— |
|
|
|
(0.03 |
) |
|
|
(0.03 |
) |
|
Diluted income per share, as adjusted |
$ |
0.21 |
|
|
|
$ |
0.34 |
|
|
|
$ |
0.73 |
|
|
|
$ |
0.75 |
|
|
Natures Sunshine Products (NASDAQ:NATR)
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