This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

USANA Health Sciences Announces Record Fourth Quarter And Full-Year 2012 Financial Results

Outlook

The Company provided the following financial outlook for 2013:

  • Consolidated net sales between $700 million and $720 million.
  • Earnings per share between $5.10 and $5.25.

Chief Financial Officer Paul Jones commented, “Our fourth quarter top-and-bottom line results represent a solid finish to an excellent year. With our strong financial performance and increasing cash flow, we have the flexibility to invest in several key business initiatives during 2013. One of these efforts will be our pricing initiative, which is designed to generate customer growth in several of our mature markets. Although this initiative will require some upfront investment, as well as patience to execute, we believe that it is the right investment at the right time to generate customer growth in these markets. In 2013, we will also continue to invest in our personalization strategy, international expansion, and vertical integration opportunities to gain efficiencies and improve margins. As represented by our outlook for 2013, we anticipate continued growth in sales and earnings in 2013, and we expect to report another consecutive year of record-breaking results.”

Conference Call

USANA will hold a conference call and webcast to discuss this announcement with investors on Wednesday, February 6, 2013 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 Year Ended
31-Dec-11 29-Dec-12 31-Dec-11 29-Dec-12
 
 
Net sales $ 145,947 $ 168,530 $ 581,939 $ 648,726
Cost of sales   24,620     30,171   101,692   115,804
Gross profit 121,327 138,359 480,247 532,922
 
Operating expenses
Associate incentives 67,203 71,190 265,928 280,506
Selling, general and administrative   34,025     39,087   137,063   154,237
 
Earnings from operations 20,099 28,082 77,256 98,179
 
Other income (expense)   (12 )   70   222   247
Earnings before income taxes 20,087 28,152 77,478 98,426
 
Income taxes   6,926     9,705   26,726   31,993
 
NET EARNINGS $ 13,161   $ 18,447 $ 50,752 $ 66,433
 
       
Earnings per share - diluted $ 0.87   $ 1.27 $ 3.26 $ 4.45
Weighted average shares outstanding - diluted   15,177     14,471   15,574   14,923
 
 
 
USANA Health Sciences, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
      As of       As of
31-Dec-11 29-Dec-12
 
ASSETS
Current Assets
Cash and cash equivalents $ 50,353 $ 70,839
Inventories 36,968 36,481
Other current assets   18,738   25,225
Total current assets 106,059 132,545
 
Property and equipment, net 60,754 61,751
Goodwill 17,740 17,890
Intangible assets, net 42,637 42,085
Deferred income taxes 11,033 5,956
Other assets   6,273   7,128
Total assets $ 244,496 $ 267,355
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 7,952 $ 7,040
Other current liabilities   51,744   63,804
Total current liabilities 59,696 70,844
 
 
Other long-term liabilities 942 938
Deferred income taxes 9,948 10,001
Stockholders' equity   173,910   185,572
Total liabilities and stockholders' equity $ 244,496 $ 267,355
 
 

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

Region

 
North America / Europe $ 57,070 39.1 % $ 60,747 36.0 %
 
Asia Pacific
 
Southeast Asia/Pacific 29,411 20.2 % 37,419 22.2 %
 
Greater China 52,021 35.6 % 62,499 37.1 %
 
North Asia   7,445 5.1 %   7,865 4.7 %
 
Asia Pacific Total   88,877 60.9 %   107,783 64.0 %
 
Total $ 145,947 100.0 % $ 168,530 100.0 %
 
 
Active Associates by Region (1)
(Unaudited)
 
As of
31-Dec-11 29-Dec-12

Region

 
North America / Europe 78,000 35.1 % 78,000 31.6 %
 
Asia Pacific
 
Southeast Asia/Pacific 49,000 22.1 % 58,000 23.5 %
 
Greater China 86,000 38.7 % 103,000 41.7 %
 
North Asia   9,000 4.1 %   8,000 3.2 %
 
Asia Pacific Total 144,000 64.9 % 169,000 68.4 %
       
Total   222,000 100.0 %   247,000 100.0 %
 
 

(1) Associates are independent distributors of our products who also purchase our products fortheir personal use. We only count as active those Associates who have purchased product at anytime during the most recent three-month period, either for personal use or for resale.

 
 
Active Preferred Customers by Region (2)
(Unaudited)
 
As of
31-Dec-11 29-Dec-12

Region

 
North America / Europe 52,000 81.3 % 53,000 82.8 %
 
Asia Pacific
 
Southeast Asia/Pacific 6,000 9.4 % 6,000 9.4 %
 
Greater China 5,000 7.8 % 4,000 6.3 %
 
North Asia   1,000 1.5 %   1,000 1.5 %
 
Asia Pacific Total 12,000 18.8 % 11,000 17.2 %
       
Total   64,000 100.0 %   64,000 100.0 %
 
 

(2) Preferred Customers purchase our products strictly for their personal use and are not permittedto resell or to distribute the products. We only count as active those Preferred Customers who havepurchased product at any time during the most recent three-month period.





4 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,279.74 +13.75 0.08%
S&P 500 2,010.40 -0.96 -0.05%
NASDAQ 4,579.7890 -13.6380 -0.30%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs