USANA Health Sciences, Inc. (NYSE: USNA) today announced record financial results for its fiscal second quarter ended June 29, 2013.
For the second quarter of 2013, net sales increased by 17.5% to $189.1 million compared with $160.9 million in the prior-year period. This growth in net sales was driven by increases in both the Company’s Asia Pacific and North America/Europe regions. Favorable changes in currency exchange rates also contributed approximately $1.2 million to the top line for the quarter.
Net earnings for the second quarter increased to $24.2 million, an improvement of 44.6%, compared with the prior-year period. This increase was due primarily to higher net sales and lower relative operating expenses, which were partially offset by a higher effective tax rate. Earnings per share for the quarter increased by 55.0% to $1.72, compared with $1.11 in the second quarter of the prior year. This improvement in earnings per share was attributable to higher net earnings and a lower number of diluted shares outstanding, which resulted from the Company’s share repurchases over the last 12 months. Total diluted common shares outstanding as of June 29, 2013 were 14.1 million, compared with 15.1 million as of June 30, 2012.
“Our team continues to effectively execute our strategic initiatives, which led to another record quarter,” said Dave Wentz, the Company’s Chief Executive Officer. “Our financial performance was driven by sales and customer growth in both our Asia Pacific and North America regions. Additionally, during the quarter we implemented a worldwide policy that focuses on customers purchasing products in their home market. This policy, which strengthens the Company’s business long-term, led to an estimated $7 million in one-time incremental sales that contributed to the quarter’s exceptional results. While we expect this policy to create pressure on our results in the near term, we believe that it is in the best interest of USANA’s long-term business.”