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Nu Skin Enterprises' CEO Discusses Q2 2012 Results - Earnings Transcript

Stocks in this article: NUS

And with that, I’ll turn the time over to Truman.

Truman Hunt

Thanks, Scott. Good morning everyone. We appreciate you joining us today. And we’re delighted to share with you the results of another record quarter. We generated revenue of $593 million in the quarter which represents growth of 40% exceeding guidance by more than $50 million. I think you all agree with us that these results are reflected a very strong business momentum. It wasn’t too long ago when we first generated revenue of $1 billion for full year and this year we’ve accomplished that in just a first six months.

Our earnings also came in well ahead of guidance with a record high quarterly EPS of $0.94, a very healthy 45% increase over the last year. These results were generated by a record level of active sales representatives and executive distributors. The number of executive distributors, who are those who are actively working to build successful Nu Skin business. And sales representatives in China are key indicator for our business direction and the number of these south leaders climbed to a record level of 54,000 at the end of the second quarter. So, we’re very pleased with the progress of our business. And we remain confident that we will continue to generate healthy growth levels.

I want to highlight five factors today that work to support our level of confidence. First, as today’s release demonstrates, we continue to improve the execution of what we call opportunity renewal process, effective product launches are a key component of our ability to continually renew the vibrancy of the business opportunity we offer. In the second quarter, we generated nearly $165 million of revenue from the launch of our ageLOC products in the South Asia, Pacific and Greater China regions.

We reported $140 million of these product sales during the quarter with the remaining $25 million to be shipped in the third quarter. You’ll recall the last fall we generated about $100 million in sales of these same products when we introduced them on our global distributor convention. And as we rollout new products around the world, we’re refining our approach to deliver increasingly impressive results. This approach is based on the notion of the utilizing global and local limited time offers prior to a product going online on a full-time basis and it’s just working extremely well.

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