USANA Health Sciences, Inc. (NYSE: USNA) today announced
financial results for its fiscal second quarter ended June 27,
2020.
Key Financial & Operating Highlights
- Continued strong demand and successful promotions combined to
generate $259.0 million in net sales and $1.32 in diluted EPS
during the quarter
- Active customers increased 7.9% vs. the prior-year quarter
- Company continued to successfully execute a virtual sales and
operating strategy to deliver results
- Company raises full-year 2020 Net Sales and EPS outlook
Q2 2020 Financial Performance
Consolidated Results
Net Sales
$259.0 million
- +1.2% vs. prior-year quarter
- +4.3% constant currency vs. prior-year quarter
- -$8.1 million fx impact, or -3.1%
Diluted EPS
$1.32
- +45.1% vs. prior-year quarter
- Diluted shares of 21.1 million, -9.6%
Active Customers
599,000
- +7.9% vs. prior-year quarter
Cash & Cash Equivalents
$227.4 million
- Ended quarter with no debt
“Strong consumer demand for our high-quality, health products
and successful promotions drove our second quarter performance,”
said Kevin Guest, Chief Executive Officer and Chairman of the
Board. “During the quarter, we generated nearly eight percent
growth in active customers, due to double-digit customer growth in
three-of-our-four regions, including the Americas and Europe
region. We also continued to successfully execute a virtual sales
and operating strategy to deliver our results. This strategy
included USANA hosting its first all-virtual Asia Pacific
Convention, as well as the facilitation of other technology-based
tools that assisted our Associates in their sales efforts. Finally,
we offered several promotions and incentives during the quarter
that benefitted net sales and our overall results. The health,
wellness and safety of our employees, Associates and customers
around the world remain our top priorities and our operating plan
will continue to reflect those priorities.”
Mr. Guest continued, “We are raising our full-year guidance to
reflect a solid second quarter as well as our expectations for the
back-half of the year. We recognize that we cannot anticipate all
of the challenges that might arise as a result of the ongoing
COVID-19 pandemic, but we believe that we are positioned to
continue adapting to an evolving operating environment. Overall, we
remain confident in the strength of USANA’s underlying business and
the growth strategies we have in place for the remainder of 2020
and beyond.”
Q2 2020 Regional Results:
Asia Pacific Region
Net Sales
$209.3 million
- +1.9% vs. prior-year quarter
- Constant currency net sales: +4.8%
- -$6.1 million fx impact, or -2.9%
- 80.8% of consolidated net sales
Active Customers
463,000
- +6.9% vs. prior-year quarter
Asia Pacific
Sub-Regions
Greater China
Net Sales
$124.0 million
- -3.8% vs. prior-year quarter
- Constant currency net sales: -0.8%
Active Customers
278,000
- Flat vs. prior-year quarter
- +0.4% sequentially
North Asia
Net Sales
$25.9 million
- +14.5% vs. prior-year quarter
- Constant currency net sales: +19.5%
Active Customers
56,000
- +19.1% vs. prior-year quarter
- -1.8% sequentially
Southeast Asia Pacific
Net Sales
$59.5 million
- +10.2% vs. prior-year quarter
- Constant currency net sales: +12.2%
Active Customers
129,000
- +19.4% vs. prior-year quarter
- +12.2% sequentially
Americas and Europe
Region
Net Sales
$49.7 million
- -1.7% vs. prior-year quarter
- Constant currency net sales: +2.3%
- -$2.0 million fx impact, or -4.0%
- 19.2% of consolidated net sales
Active Customers
136,000
- +11.5% vs. prior-year quarter
- +9.7% sequentially
Balance Sheet
The Company ended the quarter with $227.4 million in cash and
cash equivalents and no debt. During the quarter the Company did
not repurchase any shares of common stock and, as of June 27, 2020,
there was approximately $73 million remaining under the current
share repurchase authorization. Beginning in the third quarter, the
Company’s board of directors will once again consider utilizing the
Company’s share repurchase authorization to return value to
shareholders.
Fiscal 2020 Outlook
The Company is updating its consolidated net sales and earnings
per share outlook for fiscal year 2020.
Fiscal Year 2020
Outlook
Revised Range
Previous Range
Consolidated Net Sales
$1.05 - $1.10 billion
$1.00 - $1.08 billion
Diluted EPS
$4.70 - $5.25
$4.00 - $4.90
Doug Hekking, Chief Financial Officer, said, “We offered several
successful promotions and incentives during the quarter that
contributed to net sales while generating solid customer growth. We
are raising our guidance to reflect our expectations for the back
half of the year and plan on an increased cadence of promotions and
incentives, particularly in the third quarter. The expected overall
impact from currency remains relatively unchanged from the update
we provided following the first quarter. Finally, our revised
diluted earnings per share outlook reflects savings realized from
event and travel costs due to the COVID-19 environment, as well as
our success in aligning spending with sales performance. Although
we are managing our cost structure to align with sales and to
ensure the Company’s financial flexibility, we plan to continue
making investments to execute our long-term growth strategies and
to generate momentum in each of our regions.”
Management Commentary Document and Conference Call
For more information on the Company’s operating results, please
see the “Management Commentary, Results and Outlook” document,
which has been posted on the Company’s website
(http://ir.usana.com) under the “Investor Relations” section of the
site. USANA will hold a conference call and webcast to discuss
today’s announcement with investors on Wednesday, July 22, 2020 at
11:00 AM Eastern Time. Investors may listen to the call by
accessing USANA’s website at http://ir.usana.com. The call will
consist of brief opening remarks by the Company’s management team,
before moving directly into questions and answers.
Non-GAAP Financial Measures
The Company prepares its financial statements using U.S.
generally accepted accounting principles (“GAAP”). Constant
currency net sales, earnings, EPS and other currency-related
financial information (collectively, “Financial Results”) are
non-GAAP financial measures that remove the impact of fluctuations
in foreign-currency exchange rates (“fx”) and help facilitate
period-to-period comparisons of the Company’s Financial Results
that we believe provide investors an additional perspective on
trends and underlying business results. Constant currency Financial
Results are calculated by translating the current period's
Financial Results at the same average exchange rates in effect
during the applicable prior-year period and then comparing this
amount to the prior-year period's Financial Results.
About USANA
USANA develops and manufactures high-quality nutritional
supplements, healthy foods and personal care 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, Colombia, Indonesia, Germany, Spain, Romania, and Italy.
More information on USANA can be found at www.usana.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: uncertainty related to the magnitude, scope and duration
of the impact of the COVID-19 pandemic (“COVID-19”) to our
business, operations and financial results; the further spread of,
and regulatory measures or voluntary actions that may be put in
place to limit the spread of, COVID-19 in the markets where we
operate, including restrictions on business operations, shelter at
home, or social distancing requirements; the potential for a
resurgence of COVID-19 spread in any of our markets in the future;
the impact of COVID-19 on the domestic and world economies,
including any negative impact on discretionary spending, consumer
demand, and consumer behavior in general; regulatory risk in China
in connection with the health products and direct selling business
models; regulatory risk in the United States in connection with the
direct selling business model; potential negative effects of
material breaches of our information technology systems to the
extent we experience a material breach; material failures of our
information technology systems; global economic conditions
generally; reliance upon our network of independent Associates;
risk associated with governmental regulation of our products,
manufacturing and direct selling business model; adverse publicity
risks globally; risks associated with our international expansion
and operations; and uncertainty relating to the fluctuation in U.S.
and other international currencies. 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. The
forward-looking statements in this press release set forth our
beliefs as of the date hereof. We do not undertake any obligation
to update any forward-looking statement after the date hereof or to
conform such statements to actual results or changes in the
Company’s expectations, except as required by law.
USANA Health Sciences, Inc. Consolidated Statements of
Operations (In thousands, except per share data) (Unaudited)
Quarter Ended Six Months Ended
27-Jun-20 29-Jun-19 27-Jun-20 29-Jun-19
Net sales
$
258,991
$
256,016
$
525,610
$
529,006
Cost of sales
47,674
46,494
93,733
92,395
Gross profit
211,317
209,522
431,877
436,611
Operating expenses Associate incentives
110,852
111,511
226,921
234,041
Selling, general and administrative
60,879
66,854
126,358
136,409
Earnings from operations
39,586
31,157
78,598
66,161
Other income (expense)
393
1,355
544
2,645
Earnings before income taxes
39,979
32,512
79,142
68,806
Income taxes
12,002
11,134
24,613
23,256
NET EARNINGS
$
27,977
$
21,378
$
54,529
$
45,550
Earnings per share - diluted
$
1.32
$
0.91
$
2.56
$
1.93
Weighted average shares outstanding - diluted
21,129
23,370
21,340
23,648
USANA Health Sciences, Inc. Consolidated
Balance Sheets (In thousands) (Unaudited)
As of
As of ASSETS 27-Jun-20 28-Dec-19
Current Assets Cash and cash equivalents
$
227,368
$
234,830
Inventories
69,279
68,905
Prepaid expenses and other current assets
28,302
25,544
Total current assets
324,949
329,279
Property and equipment, net
98,435
95,233
Goodwill
16,521
16,636
Intangible assets, net
29,008
29,840
Deferred income taxes
3,741
3,090
Other assets
39,497
42,856
Total assets
$
512,151
$
516,934
LIABILITIES AND STOCKHOLDERS' EQUITY Current
Liabilities Accounts payable
$
10,942
$
12,525
Other current liabilities
128,775
123,573
Total current liabilities
139,717
136,098
Deferred income taxes
6,584
10,282
Other long-term liabilities
16,774
18,842
Stockholders' equity
349,076
351,712
Total liabilities and stockholders' equity
$
512,151
$
516,934
USANA Health Sciences, Inc. Sales by Region
(unaudited)
(in thousands)
Quarter Ended 27-Jun-20 29-Jun-19 Change
fromprior year Currency impacton sales % change
excludingcurrency impact Asia Pacific Greater China
$
124,001
47.9
%
$
128,946
50.3
%
$
(4,945
)
(3.8
%)
$
(3,874
)
(0.8
%)
Southeast Asia Pacific
59,459
22.9
%
53,960
21.1
%
5,499
10.2
%
(1,096
)
12.2
%
North Asia
25,852
10.0
%
22,575
8.8
%
3,277
14.5
%
(1,127
)
19.5
%
Asia Pacific Total
209,312
80.8
%
205,481
80.2
%
3,831
1.9
%
(6,097
)
4.8
%
Americas and Europe
49,679
19.2
%
50,535
19.8
%
(856
)
(1.7
%)
(1,999
)
2.3
%
$
258,991
100.0
%
$
256,016
100.0
%
$
2,975
1.2
%
$
(8,096
)
4.3
%
Active Associates by
Region(1)
(unaudited)
As of 27-Jun-20 29-Jun-19 Asia
Pacific Greater China
93,000
32.3
%
102,000
35.8
%
Southeast Asia Pacific
94,000
32.6
%
87,000
30.5
%
North Asia
37,000
12.9
%
33,000
11.6
%
Asia Pacific Total
224,000
77.8
%
222,000
77.9
%
Americas and Europe
64,000
22.2
%
63,000
22.1
%
288,000
100.0
%
285,000
100.0
%
Active Preferred Customers by Region (2) (unaudited)
As of 27-Jun-20 29-Jun-19 Asia Pacific
Greater China
185,000
59.5
%
176,000
65.2
%
Southeast Asia Pacific
35,000
11.3
%
21,000
7.7
%
North Asia
19,000
6.1
%
14,000
5.2
%
Asia Pacific Total
239,000
76.9
%
211,000
78.1
%
Americas and Europe
72,000
23.1
%
59,000
21.9
%
311,000
100.0
%
270,000
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 from us any
time during the most recent three-month period, either for personal
use or resale. (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 from us any time during the most
recent three-month period. China utilizes a Preferred Customer
program that has been implemented specifically for that market.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200721005906/en/
Investors contact: Patrique Richards Investor Relations (801)
954-7961 investor.relations@us.usana.com
Media contact: Dan Macuga Public Relations (801) 954-7280
USANA Health Sciences (NYSE:USNA)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
USANA Health Sciences (NYSE:USNA)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024