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Nature's Sunshine Products Reports Fourth Quarter And Full Year Financial Results

Stocks in this article: NATR

About Nature's Sunshine Products

Nature's Sunshine Products manufactures and markets through direct sales encapsulated and tableted herbal products, high quality natural vitamins, and other complementary products. In addition to the United States, the Company has operations in Australia, Austria, Belarus, Canada, the Czech Republic, China, Colombia, Costa Rica, the Dominican Republic, Ecuador, El Salvador, Germany, Guatemala, Honduras, Hong Kong, Indonesia, Israel, Japan, Kazakhstan, Latvia, Lithuania, Malaysia, Mexico, Mongolia, the Netherlands, Nicaragua, Norway, Panama, Peru, the Philippines, Poland, Russia, Singapore, South Korea, Sweden, Thailand, Taiwan, Ukraine, the United Kingdom, Venezuela, and Vietnam. The Company also has exclusive distribution agreements with selected companies in Argentina, Australia, Chile, New Zealand, and Norway. Additional information can be obtained at the Company's website, www.natr.com.

Cautionary Statement Regarding Forward-Looking Statements

In addition to historical information, this release contains forward-looking statements. Nature's Sunshine may, from time to time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass Nature's Sunshine's beliefs, expectations, hopes, or intentions regarding future events. Words such as "expects," "intends," "believes," "anticipates," "should," "likely," and similar expressions identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to the Company as of such date. Nature's Sunshine assumes no obligation to update any forward-looking statement. Actual results will vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others: further reviews of the Company's financial statements by the Company and its Audit Committee; modification of the Company's accounting practices; foreign business risks; industry cyclicality; fluctuations in customer demand and order pattern; changes in pricing and general economic conditions; as well as other risks detailed in the Company's previous filings with the SEC.

NATURE'S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
 
  December 31, 2010 December 31,  2009
Assets    
Current Assets:    
Cash and cash equivalents  $47,604  $35,538
Restricted cash 1,495
Accounts receivable, net of allowance for doubtful accounts of $918 and $1,840, respectively 5,947 8,294
Investments available for sale 6,470 3,167
Inventories, net 36,235 40,623
Deferred income tax assets 4,582 6,646
Prepaid expenses and other current assets 5,700 5,629
Total current assets 106,538 101,392
     
Property, plant and equipment, net 27,391 28,757
Investment securities 1,778 1,752
Intangible assets 1,303 1,421
Deferred income tax assets 12,916 12,228
Other assets 9,489 10,589
   $159,415  $156,139
     
Liabilities and Shareholders' Equity    
Current Liabilities:    
Accounts payable  $4,855  $4,176
Accrued volume incentives 18,619 17,495
Accrued liabilities 34,601 34,143
Deferred revenue 3,385 4,513
Income taxes payable 3,708 7,542
Total current liabilities 65,168 67,869
Liability related to unrecognized tax benefits 21,366 26,311
Deferred compensation payable 1,778 1,752
Other liabilities 2,721 3,112
Total long-term liabilities 25,865 31,175
Shareholders' Equity:    
Common stock, no par value; 50,000 shares authorized, 15,533 and 15,510 shares issued and outstanding as of December, 2010 and 2009, respectively 67,752 67,183
Retained earnings 8,278 9,511
Accumulated other comprehensive loss (7,648) (19,599)
Total shareholders' equity 68,382 57,095
   $159,415  $156,139
 
NATURE'S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share information)
 
  Three Months Ended December 31,
  2010 2009
     
Net sales revenue (net of the rebate portion of volume incentives of $11,157 and $12,452, respectively)   $89,889   $89,646
Cost and expenses:    
Cost of goods sold 17,732 18,073
Volume incentives 33,205 32,872
Selling, general and administrative 35,408 32,770
  86,345 83,715
Operating income 3,544 5,931
Other income, net 353 405
     
Income from continuing operations before provision for income taxes 3,897 6,336
Provision for income taxes 4,283 1,738
Net income (loss) from continuing operations (386) 4,598
Loss from discontinued operations (314) (635)
Net income (loss)  $(700)  $3,963
     
Basic and diluted net income (loss) per common share    
     
Basic:    
Net income (loss) from continuing operations  $(0.02)  $0.30
Loss from discontinued operations  $(0.02)  $(0.04)
Net income (loss)  $(0.04)  $0.26
     
Diluted:    
Net income (loss) from continuing operations  $(0.02)  $0.30
Loss from discontinued operations  $(0.02)  $(0.04)
Net income (loss)  $(0.04)  $0.26
     
Weighted average basic common shares outstanding 15,514 15,510
Weighted average diluted common shares outstanding 15,514 15,510
 
NATURE'S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share information)
 
  Year Ended December 31,
  2010 2009
     
Net sales revenue (net of the rebate portion of volume incentives of $44,409 and $47,231, respectively) $349,918 $342,111
Cost and expenses:    
Cost of goods sold 69,040 68,512
Volume incentives 130,367 126,105
Selling, general and administrative 139,248 135,061
  338,655 329,678
Operating income 11,263 12,433
Other income, net 2,727 2,331
     
Income from continuing operations before provision for income taxes 13,990 14,764
Provision for income taxes 5,521 8,210
Net income from continuing operations 8,469 6,554
Loss from discontinued operations (9,702) (439)
Net income (loss)  $(1,233)  $6,115
     
Basic and diluted net income (loss) per common share    
     
Basic:    
Net income from continuing operations  $0.55  $0.42
Loss from discontinued operations  $(0.63)  $(0.03)
Net income (loss)  $(0.08)  $0.39
     
Diluted:    
Net income from continuing operations  $0.54  $0.42
Loss from discontinued operations  $(0.62)  $(0.03)
Net income (loss)  $(0.08)  $0.39
     
Weighted average basic common shares outstanding 15,515 15,510
Weighted average diluted common shares outstanding 15,605 15,512
 
NATURE'S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) to EBITDA
 (Amounts in thousands)
     
   
  Three Months Ended December 31,
  2010 2009
     
Net income (loss)   $(700)  $3,963
EBITDA adjustments:    
Loss from discontinued operations  314 635
Depreciation and amortization  1,011 1,076
Share-based compensation expense 112 478
Other income, net**  (353) (405)
Taxes  4,283 1,738
EBITDA   $4,667  $7,485
     
     
  Year Ended December 31,
  2010 2009
     
Net income (loss)   $(1,233)  $6,115
EBITDA adjustments:    
Loss from discontinued operations  9,702 439
Depreciation and amortization*  4,222 4,460
Share-based compensation expense 437 478
Other income, net**  (2,727) (2,331)
Taxes  5,521 8,210
EBITDA   $15,922  $17,371
     
* Excludes immaterial depreciation from Brazil discontinued operations; results in difference from cash flow statement.
     
** Other income, net is primarily comprised of foreign exchange gains (losses), interest income, and interest expense.
CONTACT: Stephen M. Bunker
         Chief Financial Officer
         Nature's Sunshine Products, Inc.
         Provo, Utah 84605-9005
         (801) 342-4370

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