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USANA Health Sciences Announces Record Third Quarter 2012 Financial Results

Conference Call

USANA will hold a conference call and webcast to discuss this announcement with investors on Wednesday, October 24, 2012 at 11:00 AM Eastern Time. Investors may listen to the call by accessing USANA’s website at http://www.usanahealthsciences.com .

About USANA

USANA develops and manufactures high-quality nutritional, personal care, and weight-management products that are sold directly to Associates and Preferred Customers throughout the United States, Canada, Australia, New Zealand, Hong Kong, China, Japan, Taiwan, South Korea, Singapore, Mexico, Malaysia, the Philippines, the Netherlands, the United Kingdom, Thailand, France and Belgium. More information on USANA can be found at http://www.usanahealthsciences.com.

Safe Harbor

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including global economic conditions generally, reliance upon our network of independent Associates, the governmental regulation of our products, manufacturing and marketing risks, adverse publicity risks, and risks associated with our international expansion. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission.

 
USANA Health Sciences, Inc.
Consolidated Statements of Earnings
(In thousands, except per share data)
(Unaudited)
                     
Quarter Ended Nine Months Ended
1-Oct-11 29-Sep-12 1-Oct-11 29-Sep-12
 
 
Net sales $ 143,501 $ 165,175 $ 435,992 $ 480,196
Cost of sales   25,202   30,343   77,072   85,633
Gross profit 118,299 134,832 358,920 394,563
 
Operating expenses
Associate incentives 66,158 70,406 198,725 209,316
Selling, general and administrative   33,365   40,342   103,038   115,150
 
Earnings from operations 18,776 24,084 57,157 70,097
 
Other income (expense)   133   267   234   177
Earnings before income taxes 18,909 24,351 57,391 70,274
 
Income taxes   6,524   6,861   19,800   22,288
 
NET EARNINGS $ 12,385 $ 17,490 $ 37,591 $ 47,986
 
       
Earnings per share - diluted $ 0.81 $ 1.18 $ 2.39 $ 3.19
Weighted average shares outstanding - diluted   15,205   14,884   15,712   15,064
 
 
         
USANA Health Sciences, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
As of As of
31-Dec-11 29-Sep-12
 
ASSETS
Current Assets
Cash and cash equivalents $ 50,353 $ 76,601
Inventories 36,968 33,296
Other current assets   18,738   28,754
Total current assets 106,059 138,651
 
Property and equipment, net 60,754 62,052
Goodwill 17,740 17,797
Intangible assets, net 42,637 42,022
Deferred income taxes 11,033 6,705
Other assets   6,273   7,057
Total assets $ 244,496 $ 274,284
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 7,952 $ 6,906
Other current liabilities   51,744   59,881
Total current liabilities 59,696 66,787
 
 
Other long-term liabilities 942 946
Deferred income taxes 9,948 9,571
Stockholders' equity   173,910   196,980
Total liabilities and stockholders' equity $ 244,496 $ 274,284
 
 

 
USANA Health Sciences, Inc.
Sales by Region
(Unaudited)
(In thousands)
                   
Quarter Ended
1-Oct-11 29-Sep-12

Region

 
North America / Europe $ 59,028 41.1 % $ 62,490 37.8 %
 
Asia Pacific
 
Southeast Asia/Pacific 30,117 21.0 % 35,709 21.6 %
 
Greater China 47,012 32.8 % 59,722 36.2 %
 
North Asia   7,344 5.1 %   7,254 4.4 %
 
Asia Pacific Total   84,473 58.9 %   102,685 62.2 %
 
Total $ 143,501 100.0 % $ 165,175 100.0 %
 
 
Active Associates by Region (1)
(Unaudited)
 
As of
1-Oct-11 29-Sep-12

Region

 
North America / Europe 80,000 37.4 % 79,000 32.6 %
 
Asia Pacific
 
Southeast Asia/Pacific 47,000 22.0 % 58,000 24.0 %
 
Greater China 78,000 36.4 % 97,000 40.1 %
 
North Asia   9,000 4.2 %   8,000 3.3 %
 
Asia Pacific Total   134,000 62.6 %   163,000 67.4 %
 
Total   214,000 100.0 %   242,000 100.0 %
 
    (1) Associates are independent distributors of our products who also purchase our products for their personal use. We only count as active those Associates who have purchased product at any time during the most recent three-month period, either for personal use or for resale.
 
Active Preferred Customers by Region (2)
(Unaudited)
                   
As of
1-Oct-11 29-Sep-12

Region

 
North America / Europe 51,000 77.3 % 52,000 81.2 %
 
Asia Pacific
 
Southeast Asia/Pacific 7,000 10.6 % 6,000 9.4 %
 
Greater China 7,000 10.6 % 5,000 7.8 %
 
North Asia 1,000 1.5 % 1,000 1.6 %
 
Asia Pacific Total 15,000 22.7 % 12,000 18.8 %
 
Total 66,000 100.0 % 64,000 100.0 %
 
    (2) Preferred Customers purchase our products strictly for their personal use and are not permitted to resell or to distribute the products. We only count as active those Preferred Customers who have purchased product at any time during the most recent three-month period.




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