USANA Health Sciences Reports Strong Third Quarter Growth; Raises Full-Year 2020 Net Sales and EPS Outlook

Nachrichtenquelle: Business Wire (engl.)
20.10.2020, 22:17  |  124   |   |   

USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal third quarter ended September 26, 2020.

Key Financial & Operating Highlights

  • Third quarter net sales increased 14.5% year-over-year to $298.5 million due to strong product demand and successful incentive programs.
  • Diluted EPS increased 32.1% year-over-year to a record $1.44.
  • Active customers increased 16.5% year-over-year to a record 650,000.
  • Company raises full-year 2020 Net Sales and EPS outlook.

Q3 2020 Financial Performance

Consolidated Results

Net Sales

$298.5 million

  • +14.5% vs. prior-year quarter
  • +13.6% constant currency vs. prior-year quarter
  • +$2.5 million FX impact, or +0.9%

Diluted EPS

$1.44

  • +32.1% vs. prior-year quarter
  • Diluted shares of 21.2 million, -4.7%

Active Customers

650,000

  • +16.5% vs. prior-year quarter

Cash & Cash
Equivalents

$278.4 million

  • Ended quarter with no debt

“This was an all-around very successful quarter for the Company,” said Kevin Guest, Chief Executive Officer and Chairman of the Board. “During the quarter, our strategies led to strong global customer demand for our high-quality nutritional products. We also offered various incentives and promotions that were well received and contributed meaningfully to sales and customer growth for the quarter.”

“Of further note, USANA’s Virtual Events strategy proved successful during the quarter. Our annual Americas and Europe Convention and our China National Sales Meeting were both held virtually, and this allowed us to reach larger audiences than did many of our past, in-person events. Throughout 2020, our management team and Associate sales force have demonstrated their ability to modify strategies and adapt to continually changing conditions, all in an effort to continue to advance USANA’s mission of health and wellness. We look forward to a strong finish to 2020 and delivering further growth in 2021.”

Q3 2020 Regional Results:

Asia Pacific Region

Net Sales

$241.3 million

  • +15.7% vs. prior-year quarter
  • Constant currency net sales: +13.9%
  • +$3.7 million FX impact, or +1.8%
  • 80.8% of consolidated net sales

Active Customers

502,000

  • +15.4% vs. prior-year quarter

Asia Pacific Sub-Regions

Greater China

Net Sales

$136.0 million

  • +3.9% vs. prior-year quarter
  • Constant currency net sales: +2.7%

Active Customers

284,000

  • +4.0% vs. prior-year quarter
  • +2.2% sequentially

North Asia

Net Sales

$29.0 million

  • +24.3% vs. prior-year quarter
  • Constant currency net sales: +23.7%

Active Customers

60,000

  • +20.0% vs. prior-year quarter
  • +7.1% sequentially

Southeast Asia Pacific

Net Sales

$76.3 million

  • +40.5% vs. prior-year quarter
  • Constant currency net sales: +36.7%

Active Customers

158,000

  • +41.1% vs. prior-year quarter
  • +22.5% sequentially

Americas and Europe Region

Net Sales

$57.2 million

  • +10.0% vs. prior-year quarter
  • Constant currency net sales: +12.2%
  • -$1.2 million FX impact, or -2.2%
  • 19.2% of consolidated net sales

Active Customers

148,000

  • +20.3% vs. prior-year quarter
  • +8.8% sequentially

Balance Sheet

The Company ended the quarter with $278.4 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 the end of the third quarter, there was approximately $73 million remaining under the current share repurchase authorization.

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

$1.090 - $1.115 billion

$1.050 - $1.100 billion

Diluted EPS

$5.15 - $5.45

$4.70 - $5.25

Doug Hekking, Chief Financial Officer, said, “In light of our third quarter results and our expectations for the fourth quarter, we are raising our net sales and EPS guidance. While we do not have incentive offerings of a similar magnitude scheduled for the fourth quarter, we expect the business to produce solid results and carry momentum into 2021. Going forward, we will continue to focus our efforts on balancing the need for financial flexibility with continued investments in opportunities that allow us to execute our long-term growth strategies.”

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, October 21, 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, functional 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 deteriorating foreign and/or trade relations between the United States and China; 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 Nine Months Ended
26-Sep-20 28-Sep-19 26-Sep-20 28-Sep-19
 
Net sales

$ 298,513

 

$ 260,598

$ 824,123

 

$ 789,604

Gross profit

242,155

 

212,779

674,032

 

649,390

 
Operating expenses
Associate incentives

131,144

 

111,059

358,065

 

345,100

Selling, general and administrative

65,656

 

66,262

192,014

 

202,671

 
Earnings from operations

45,355

 

35,458

123,953

 

101,619

 
Other income (expense)

(1,080

)

430

(536

)

3,075

Earnings before income taxes

44,275

 

35,888

123,417

 

104,694

 
Income taxes

13,769

 

11,666

38,382

 

34,922

 
NET EARNINGS

$ 30,506

 

$ 24,222

$ 85,035

 

$ 69,772

 
 
Earnings per share - diluted

$ 1.44

 

$ 1.09

$ 4.00

 

$ 3.01

Weighted average shares outstanding - diluted

21,170

 

22,223

21,283

 

23,173

USANA Health Sciences, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
 
As of As of
ASSETS 26-Sep-20 28-Dec-19
Current Assets
Cash and cash equivalents

$ 278,418

$ 234,830

Inventories

78,167

68,905

Prepaid expenses and other current assets

29,447

25,544

Total current assets

386,032

329,279

 
Property and equipment, net

99,400

95,233

Goodwill

16,894

16,636

Intangible assets, net

29,748

29,840

Deferred income taxes

4,618

3,090

Other assets

40,840

42,856

Total assets

$ 577,532

$ 516,934

 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable

$ 14,173

$ 12,525

Other current liabilities

146,690

123,573

Total current liabilities

160,863

136,098

 
Deferred income taxes

8,248

10,282

Other long-term liabilities

19,304

18,842

 
Stockholders' equity

389,117

351,712

Total liabilities and stockholders' equity

$ 577,532

$ 516,934

USANA Health Sciences, Inc.
Sales by Region

(unaudited)

(in thousands)

Quarter Ended
26-Sep-20 28-Sep-19 Change from prior
year
Currency
impact on
sales
% change
excluding
currency
impact
 
Asia Pacific
Greater China

$

136,013

45.5

%

$

130,947

50.3

%

$

5,066

3.9

%

$

1,510

 

2.7

%

Southeast Asia Pacific

 

76,313

25.6

%

 

54,327

20.8

%

 

21,986

40.5

%

 

2,032

 

36.7

%

North Asia

 

28,969

9.7

%

 

23,299

8.9

%

 

5,670

24.3

%

 

145

 

23.7

%

Asia Pacific Total

 

241,295

80.8

%

 

208,573

80.0

%

 

32,722

15.7

%

 

3,687

 

13.9

%

 
Americas and Europe

 

57,218

19.2

%

 

52,025

20.0

%

 

5,193

10.0

%

 

(1,167

)

12.2

%

 

$

298,513

100.0

%

$

260,598

100.0

%

$

37,915

14.5

%

$

2,520

 

13.6

%

Active Associates by Region(1)
(unaudited)
 
As of
26-Sep-20 28-Sep-19
 
Asia Pacific
Greater China

91,000

29.1%

99,000

35.0%

Southeast Asia Pacific

113,000

36.1%

88,000

31.1%

North Asia

39,000

12.4%

34,000

12.0%

Asia Pacific Total

243,000

77.6%

221,000

78.1%

 
Americas and Europe

70,000

22.4%

62,000

21.9%

 

313,000

100.0%

283,000

100.0%

Active Preferred Customers by Region (2)
(unaudited)
 
As of
26-Sep-20 28-Sep-19
Asia Pacific
Greater China

193,000

57.3%

174,000

63.3%

Southeast Asia Pacific

45,000

13.4%

24,000

8.7%

North Asia

21,000

6.2%

16,000

5.8%

Asia Pacific Total

259,000

76.9%

214,000

77.8%

 
Americas and Europe

78,000

23.1%

61,000

22.2%

 

337,000

100.0%

275,000

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.

USANA Health Sciences Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de



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Disclaimer

USANA Health Sciences Reports Strong Third Quarter Growth; Raises Full-Year 2020 Net Sales and EPS Outlook USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal third quarter ended September 26, 2020. Key Financial & Operating Highlights Third quarter net sales increased 14.5% year-over-year to $298.5 million due to …

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