USNA USANA Health Sciences

• Net sales increased by 10.5% to $191.9 million
• Net earnings increased by 16.4%, while earnings per share increased by 26.7% to $1.47
• Number of active Associates increased by 18.8%
• Company repurchased approximately 1.1 million shares during third quarter

USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal third quarter ended September 27, 2014. The Company also provided updated net sales and earnings guidance for 2014.

Financial Performance

For the third quarter of 2014, net sales increased by 10.5% to $191.9 million, compared with $173.7 million in the prior-year period. The increase in net sales was driven by overall Associate growth of 18.8%, which was generated by the Company’s Asia Pacific region.

Net earnings for the third quarter increased by 16.4% to $19.5 million, compared with $16.8 million during the prior-year period. This increase was driven by higher net sales and lower relative Associate Incentives expense. On a relative basis, Associate Incentives expense declined due to a $4.5 million one-time payout resulting from the pricing and compensation plan initiatives implemented by the Company in the third quarter of 2013. Earnings per share for the quarter increased by 26.7% to $1.47, compared with $1.16 in the third quarter of the prior year. This increase in earnings per share was attributable to higher net earnings and a lower number of diluted shares outstanding due to the Company’s share repurchases during 2014. Weighted average diluted shares outstanding were 13.3 million as of the end of the third quarter of 2014, compared with 14.4 million in the prior-year period.

Top and bottom line results for the third quarter benefitted from the recognition of $3.1 million of deferred revenue in Hong Kong. Earnings per share for the quarter benefitted by $0.11 as a result of this revenue recognition.

During the quarter, the Company repurchased approximately 1.1 million shares under its authorized repurchase program for a total investment of $76.6 million. Additionally, as of October 24, 2014, the Company has subsequently invested $13.2 million to repurchase approximately 172,000 shares pursuant to a Rule 10b5-1 plan. As of October 24, 2014, there were $61.2 million remaining under the current share repurchase authorization. The Company ended the third quarter with approximately $87.7 million in cash and cash equivalents and $10 million on its revolving line of credit.

“USANA generated solid operating results in the third quarter, which included double-digit sales, earnings and customer growth,” said Kevin Guest, USANA’s President. “We also continued to see impressive growth in world-wide unit volume, Auto Order sales and check earners. This growth was driven by the pricing and compensation plan enhancements we made a year ago and our management team’s continued promotion of those enhancements during 2014. While we are pleased with the growth in each of these metrics, customer growth continues to be our highest priority, as we seek to improve the overall health and nutrition of individuals and families around the world.”

Regional Results

Net sales in the Asia Pacific region increased by 21.3% to $130.2 million, compared with $107.4 million for the third quarter of the prior year, and increased 4.5% sequentially. The year-over-year increase was due to 29.2% sales growth in the Greater China region and 10.6% sales growth in the Southeast Asia Pacific region. Sales growth in Greater China was driven by double-digit sales and customer growth in Mainland China, while sales growth in Southeast Asia Pacific resulted from strong sales and customer growth in Australia/New Zealand, the Philippines and Thailand. The number of active Associates in the Asia Pacific region increased by 28.2% year-over-year, due primarily to double-digit Associate growth in the Greater China and Southeast Asia Pacific regions.

Net sales in the Americas/Europe region declined 6.9% to $61.7 million, due primarily to a sales decline in the U.S., which was partially offset by net sales growth in other markets in the region. The number of active Associates in this region declined slightly compared to the prior-year period.

Outlook

The Company provided the following updated consolidated net sales and earnings per share outlook for 2014:

• Consolidated net sales between $780 million and $790 million, versus the previous outlook of between $770 and $790 million
• Earnings per share between $5.85 and $5.95, versus the previous outlook of between $5.50 and $5.65

Chief Financial Officer, Paul Jones, commented, “As we head into the final quarter of 2014, we are tightening our guidance range for the topline and raising the outlook for EPS. The increase in our EPS outlook is the result of another quarter of share repurchases and lower than expected promotional costs. We are confident in the strategies that we have in place and expect USANA to deliver another year of record results.”

Conference Call

Shortly following the issuance of this earnings release, the Company will post a new document titled “Management Commentary, Results and Outlook” on the Company’s website (www.usanahealthsciences.com) under the “Investor Relations” section of the site. USANA will hold a conference call and webcast to discuss this announcement with investors on Wednesday, October 29, 2014 at 11:00 AM Eastern Time. Investors may listen to the call by accessing USANA’s website at http://www.usanahealthsciences.com. The call will consist of brief remarks by the Company’s management team, before moving directly into questions and answers.

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, Belgium and Colombia. 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 28-Sep-13 27-Sep-14 28-Sep-13 27-Sep-14   Net sales $ 173,691 $ 191,944 $ 531,909 $ 562,601 Cost of sales   31,491   34,585     93,657     103,278 Gross profit 142,200 157,359 438,252 459,323   Operating expenses Associate incentives 76,361 82,605 224,017 242,577 Selling, general and administrative   41,145   45,499     126,527     133,282   Earnings from operations 24,694 29,255 87,708 83,464   Other income (expense)   76   (297 )   (33 )   125 Earnings before income taxes 24,770 28,958 87,675 83,589   Income taxes   8,017   9,460     28,933     28,253   NET EARNINGS $ 16,753 $ 19,498   $ 58,742   $ 55,336     Earnings per share - diluted $ 1.16 $ 1.47 $ 4.16 $ 3.96 Weighted average shares outstanding - diluted 14,393 13,263 14,132 13,964               USANA Health Sciences, Inc. Consolidated Balance Sheets (In thousands) (Unaudited)       As of As of ASSETS 28-Dec-13 27-Sep-14 Current Assets Cash and cash equivalents $ 137,343 $ 87,738 Securities held-to-maturity, net 8,642 - Inventories 47,242 42,584 Prepaid Expenses and Other current assets   35,818   32,190 Total current assets 229,045 162,512   Property and equipment, net 59,180 66,310 Goodwill 18,243 18,092 Intangible assets, net 42,329 41,482 Deferred income taxes 5,519 5,597 Other assets   14,154   22,937 Total assets $ 368,470 $ 316,930     LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 9,502 $ 6,551 Other current liabilities 86,369 88,912 Line of Credit- short term   -   10,000 Total current liabilities 95,871 105,463     Other long-term liabilities 1,211 1,256 Deferred income taxes 10,866 10,763 Stockholders' equity   260,522   199,448 Total liabilities and stockholders' equity $ 368,470 $ 316,930       USANA Health Sciences, Inc. Sales by Region (Unaudited) (In thousands)                     Quarter Ended 28-Sep-13 27-Sep-14

Region

  Americas and Europe $ 66,294 38.2 % $ 61,723 32.2 %   Asia Pacific   Southeast Asia Pacific 40,230 23.2 % 44,488 23.2 %   Greater China 59,768 34.4 % 77,206 40.2 %   North Asia   7,399 4.2 %   8,527 4.4 %   Asia Pacific Total   107,397 61.8 %   130,221 67.8 %   Total $ 173,691 100.0 % $ 191,944 100.0 %     Active Associates by Region (1) (Unaudited)   As of 28-Sep-13 27-Sep-14

Region

  Americas and Europe 82,000 33.5 % 82,000 28.2 %   Asia Pacific   Southeast Asia Pacific 60,000 24.4 % 70,000 24.1 %   Greater China 94,000 38.4 % 129,000 44.3 %   North Asia   9,000 3.7 %   10,000 3.4 %   Asia Pacific Total 163,000 66.5 % 209,000 71.8 %         Total   245,000 100.0 %   291,000 100.0 %    

(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 from us anytime during the most recent three-month period, either for personal use or for resale.

    Active Preferred Customers by Region (2) (Unaudited)   As of 28-Sep-13 27-Sep-14

Region

  Americas and Europe 58,000 81.7 % 57,000 74.0 %   Asia Pacific   Southeast Asia Pacific 8,000 11.3 % 11,000 14.3 %   Greater China 3,000 4.2 % 3,000 3.9 %   North Asia   2,000 2.8 %   6,000 7.8 %   Asia Pacific Total 13,000 18.3 % 20,000 26.0 %         Total   71,000 100.0 %   77,000 100.0 %    

(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 from us any time during the most recent three-month period.

USANA Health Sciences, Inc.Investors contact:Patrique Richards, 801-954-7961Investor Relationsinvestor.relations@us.usana.comMedia contact:Dan Macuga, 801-954-7280Public Relations