PROVO,
Utah, Nov. 1, 2023 /PRNewswire/ -- Nu Skin
Enterprises Inc. (NYSE: NUS) today announced third quarter 2023
results.
Executive Summary
Q3 2023 vs. Prior-year
Quarter
Revenue
|
$498.8 million;
(7)%
•
(1)% FX impact or $(8.1) million
|
Earnings Per
Share
(EPS)
|
$(0.74) or $0.56
excluding an inventory write-off compared to
$(0.51) or $0.47 excluding restructuring and impairment
charges
|
Customers
|
978,907;
(21)%
|
Paid
Affiliates
|
186,162; (23)% or (13)%
excluding an adjustment to eligibility
requirements
|
Sales
Leaders
|
47,031; (6)%
|
"Our third quarter results were softer than expected as
persistent macro-economic challenges in several of our key markets
negatively affected consumer spending and customer acquisition,
particularly in our Mainland China and Americas segments, along
with a continued strong U.S. dollar," said Ryan Napierski, Nu Skin president and CEO.
"Although we are disappointed in the third quarter results of our
Nu Skin business, we are encouraged by stabilization and modest
growth in three of our Nu Skin reporting segments, highlighted by
double-digit gains in Europe/Africa. We are also pleased with accelerated
growth of our Rhyz businesses as we lean further into our
synergistic enterprise ecosystem.
"We continued to advance key initiatives aimed at driving
long-term success, such as introducing ageLOC® WellSpa iO™, a smart
device system focused on holistic wellness and beauty; rolling out
a new channel growth incentive; and gaining additional traction in
monthly active users of our Vera® and Stela apps," continued
Napierski. "Given the current global headwinds and their impact, we
are strategically re-evaluating several aspects of our Nu Skin
business, including our product portfolio, global processes and
organization, and operational footprint. This is to ensure we
continue executing on the transformational initiatives that will
shape Nu Skin's future, including the introduction of a new mental
wellness category in 2024. We are also aggressively managing costs
to help drive growth and profitability as we work toward our
long-term vision."
Q3 2023 Year-over-year Operating
Results
Revenue
|
$498.8 million compared
to $537.8 million
•
(1)% FX impact or $(8.1) million
|
Gross
Margin
|
58.6% or 71.8%
excluding an inventory write-off compared to
67.7% or 72.7% excluding restructuring and impairment
charges
•
Nu Skin business was 61.8% or
76.8% excluding inventory
write-off compared to 73.0% or 76.7% excluding
restructuring and impairment
charges
|
Selling
Expenses
|
37.6% compared to
40.3%
•
Nu Skin business was 41.7% compared to 43.5%
|
G&A
Expenses
|
26.2% compared to
25.7%
|
Operating
Margin
|
(5.3)% or 7.9%
excluding an inventory write-off compared to
(3.8)% or 6.8% excluding restructuring and impairment
charges
|
Other
Expense
|
$(8.1) million compared
to $(8.7) million or $(5.4) million
excluding restructuring and impairment charges
|
Income Tax
Rate
|
(7.3)% or 10.1%
excluding an inventory write-off compared to
12.3% or 24.0% excluding restructuring and impairment
charges
|
EPS
|
($0.74) or $0.56
excluding an inventory write-off compared to
$(0.51) or $0.47 excluding restructuring and impairment
charges
|
Stockholder Value
Dividend
Payments
|
$19.5
million
|
Stock
Repurchases
|
$13.0
million
•
$162.4 million remaining in authorization
|
Q4 and Full-year 2023 Outlook
Q4 2023
Revenue
|
$440 to $480 million;
(16)% to (8)%
•
Approximately (3) to (2)% FX impact
|
Q4 2023
EPS
|
$(0.14) to $0.01 or
$0.15 to $0.30 non-GAAP
|
2023
Revenue
|
$1.92 to $1.96 billion;
(14)% to (12)%
•
Approximately (3) to (2)% FX impact
|
2023
EPS
|
$(0.10) to $0.05 or
$1.62 to $1.77 non-GAAP
|
"Given the state of our business and in line with our global
strategic review, we made the decision to accelerate our product
portfolio optimization resulting in a $65.7
million Q3 inventory write-off and are adjusting our annual
guidance, which includes an anticipated Q4 restructuring charge of
$15 to $25
million," added James D.
Thomas, chief financial officer. "Our 2023 revenue is now
expected to be $1.92 to $1.96 billion, with an approximate 3 percent
foreign currency headwind. We anticipate reported EPS of
$(0.10) to $0.05 or adjusted EPS of $1.62 to $1.77,
which excludes inventory write-off and restructuring charges. For
the fourth quarter, we project revenue of $440 to $480
million, assuming a negative foreign currency impact of
approximately 3 percent, with reported earnings per share of
$(0.14) to $0.01 or $0.15 to
$0.30 when excluding the fourth
quarter charge."
Conference Call
The Nu Skin Enterprises management team will host a conference
call with the investment community today at 5 p.m. (ET). Those
wishing to access the webcast, as well as the financial information
presented during the call, can visit the Investor Relations page on
the company's website at ir.nuskin.com. A replay of the
webcast will be available on the same page through Nov. 15,
2023.
About Nu Skin Enterprises Inc.
The Nu Skin Enterprises Inc. (NYSE: NUS) family of companies
includes Nu Skin and Rhyz Inc. Nu Skin is an integrated beauty
and wellness company, powered by a dynamic affiliate opportunity
platform, which operates in nearly 50 markets worldwide. Backed by
nearly 40 years of scientific research, the company's products help
people look, feel and live their best with brands including Nu
Skin® personal care, Pharmanex® nutrition and ageLOC® anti-aging,
which includes an award-winning line of beauty device systems. Rhyz
is the strategic investment arm of Nu Skin Enterprises. Formed in
2018, Rhyz is a synergistic ecosystem of consumer, technology and
manufacturing companies focused on innovation within the beauty,
wellness and lifestyle categories.
Important Information Regarding Forward-Looking
Statements: This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, that represent the
company's current expectations and beliefs. All statements other
than statements of historical fact are "forward-looking statements"
for purposes of federal and state securities laws and include, but
are not limited to, statements of management's expectations
regarding the macro-environment and the company's performance,
growth, shareholder value, strategies, transformation, initiatives,
product pipeline and product introductions/launches, digital and
social-commerce tools and initiatives, customers, sales leaders,
and affiliates; projections regarding revenue, expenses, future
restructuring and impairment charges, operating income, earnings
per share, foreign currency fluctuations, uses of cash and other
financial items; statements of belief; and statements of
assumptions underlying any of the foregoing. In some cases, you can
identify these statements by forward-looking words such as
"believe," "expect," "aim," "anticipate," "project," "continue,"
"outlook," "guidance," "remain," "will," "would," "could," "may,"
"might," the negative of these words and other similar
words.
The forward-looking statements and related assumptions
involve risks and uncertainties that could cause actual results and
outcomes to differ materially from any forward-looking statements
or views expressed herein. These risks and uncertainties include,
but are not limited to, the following:
- risk that epidemics, including COVID-19 and related
disruptions, or other crises could negatively impact our
business;
- adverse publicity related to the company's business,
products, industry or any legal actions or complaints by the
company's sales force or others;
- risk that direct selling laws and regulations in any of the
company's markets, including the United
States and Mainland China, may be modified, interpreted or
enforced in a manner that results in negative changes to the
company's business model or negatively impacts its revenue, sales
force or business, including through the interruption of sales
activities, loss of licenses, increased scrutiny of sales force
actions, imposition of fines, or any other adverse actions or
events;
- any failure of current or planned initiatives or products to
generate interest among the company's sales force and customers and
generate sponsoring and selling activities on a sustained
basis;
- political, legal, tax and regulatory uncertainties,
including trade policies, associated with operating in Mainland
China and other international markets;
- uncertainty regarding meeting restrictions and other
government scrutiny in Mainland China, as well as negative media
and consumer sentiment in Mainland China on our business operations
and results;
- risk of foreign-currency fluctuations and the currency
translation impact on the company's business associated with these
fluctuations;
- uncertainties regarding the future financial performance of
the businesses the company has acquired;
- risks related to accurately predicting, delivering or
maintaining sufficient quantities of products to support planned
initiatives or launch strategies, and increased risk of inventory
write-offs if the company over-forecasts demand for a product or
changes its planned initiatives or launch strategies;
- regulatory risks associated with the company's products,
which could require the company to modify its claims or inhibit its
ability to import or continue selling a product in a market if the
product is determined to be a medical device or if the company is
unable to register the product in a timely manner under applicable
regulatory requirements;
- economic conditions and events globally;
- the company's future tax-planning initiatives; any
prospective or retrospective increases in duties or tariffs on the
company's products imported into the company's markets outside of
the United States; and any adverse
results of tax audits or unfavorable changes to tax laws in the
company's various markets; and
- continued competitive pressures in the company's
markets.
The company's financial performance and the forward-looking
statements contained herein are further qualified by a detailed
discussion of associated risks set forth in the documents filed by
the company with the Securities and Exchange Commission. The
forward-looking statements set forth the company's beliefs as of
the date that such information was first provided, and the company
assumes no duty to update the forward-looking statements contained
in this release to reflect any change except as required by
law.
Non-GAAP Financial
Measures: Constant-currency revenue change is a
non-GAAP financial measure that removes the impact of fluctuations
in foreign-currency exchange rates, thereby facilitating
period-to-period comparisons of the company's performance. It is
calculated by translating the current period's revenue at the same
average exchange rates in effect during the applicable prior-year
period and then comparing that amount to the prior-year period's
revenue. The company believes that constant-currency revenue change
is useful to investors, lenders and analysts because such
information enables them to gauge the impact of foreign-currency
fluctuations on the company's revenue from period to
period.
Earnings per share, gross margin, operating margin, other
expense and income tax rate, each excluding inventory write-off
charges and/or restructuring and impairment charges, also are
non-GAAP financial measures. Inventory write-off charges and
restructuring and impairment charges are not part of the ongoing
operations of our underlying business. The company believes that
these non-GAAP financial measures are useful to investors, lenders
and analysts because removing the impact of inventory write-off
charges and restructuring and impairment charges facilitates
period-to-period comparisons of the company's performance. Please
see the reconciliations of these items to our earnings per share,
gross margin, operating margin, other expense and income tax rate
calculated under GAAP, below.
The following table sets forth revenue for the three-month
periods ended September 30, 2023, and
2022 for each of our reportable segments (U.S. dollars in
thousands):
|
Three Months
Ended
September
30,
|
|
|
|
Constant- Currency
|
|
2023
|
|
2022
|
|
Change
|
|
Change
|
Nu
Skin
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
|
91,671
|
|
$
|
131,591
|
|
|
(30) %
|
|
|
(27) %
|
Mainland
China
|
|
70,225
|
|
|
75,151
|
|
|
(7) %
|
|
|
(1) %
|
Southeast
Asia/Pacific
|
|
68,743
|
|
|
83,502
|
|
|
(18) %
|
|
|
(16) %
|
South Korea
|
|
63,709
|
|
|
67,237
|
|
|
(5) %
|
|
|
(7) %
|
Japan
|
|
53,399
|
|
|
53,276
|
|
|
—
|
|
|
5 %
|
Europe &
Africa
|
|
50,048
|
|
|
45,099
|
|
|
11 %
|
|
|
3 %
|
Hong
Kong/Taiwan
|
|
40,724
|
|
|
39,587
|
|
|
3 %
|
|
|
6 %
|
Nu Skin
other
|
|
(274)
|
|
|
496
|
|
|
(155) %
|
|
|
(155) %
|
Total Nu
Skin
|
|
438,245
|
|
|
495,939
|
|
|
(12) %
|
|
|
(10) %
|
Rhyz
Investments
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
|
49,714
|
|
|
41,328
|
|
|
20 %
|
|
|
20 %
|
Rhyz other
|
|
10,813
|
|
|
538
|
|
|
1910 %
|
|
|
1910 %
|
Total Rhyz
Investments
|
|
60,527
|
|
|
41,866
|
|
|
45 %
|
|
|
45 %
|
Total
|
$
|
498,772
|
|
$
|
537,805
|
|
|
(7) %
|
|
|
(6) %
|
The following table sets forth revenue for the nine-month
periods ended September 30, 2023, and
2022 for each of our reportable segments (U.S. dollars in
thousands):
|
Nine Months
Ended
September
30,
|
|
|
|
Constant- Currency
|
|
2023
|
|
2022
|
|
Change
|
|
Change
|
Nu
Skin
|
|
|
|
|
|
|
|
|
|
|
|
Americas
|
$
|
300,469
|
|
$
|
379,616
|
|
|
(21) %
|
|
|
(17) %
|
Mainland
China
|
|
226,563
|
|
|
286,454
|
|
|
(21) %
|
|
|
(16) %
|
Southeast
Asia/Pacific
|
|
200,317
|
|
|
267,805
|
|
|
(25) %
|
|
|
(23) %
|
South Korea
|
|
187,719
|
|
|
208,678
|
|
|
(10) %
|
|
|
(8) %
|
Japan
|
|
156,867
|
|
|
171,019
|
|
|
(8) %
|
|
|
(1) %
|
Europe &
Africa
|
|
144,460
|
|
|
148,938
|
|
|
(3) %
|
|
|
(4) %
|
Hong
Kong/Taiwan
|
|
112,380
|
|
|
117,408
|
|
|
(4) %
|
|
|
(1) %
|
Nu Skin
other
|
|
208
|
|
|
2,434
|
|
|
(91) %
|
|
|
(91) %
|
Total Nu
Skin
|
|
1,328,983
|
|
|
1,582,352
|
|
|
(16) %
|
|
|
(13) %
|
Rhyz
Investments
|
|
|
|
|
|
|
|
|
|
|
|
Manufacturing
|
|
131,032
|
|
|
119,898
|
|
|
9 %
|
|
|
9 %
|
Rhyz other
|
|
20,476
|
|
|
1,069
|
|
|
1815 %
|
|
|
1815 %
|
Total Rhyz
Investments
|
|
151,508
|
|
|
120,967
|
|
|
25 %
|
|
|
25 %
|
Total
|
$
|
1,480,491
|
|
$
|
1,703,319
|
|
|
(13) %
|
|
|
(10) %
|
The following table provides information concerning the number
of Customers, Paid Affiliates and Sales Leaders in our core Nu
Skin business for the three-month periods ended September 30, 2023, and 2022:
|
Three Months
Ended
September
30,
|
|
|
|
2023
|
|
2022
|
|
Change
|
Customers
|
|
|
|
|
|
|
|
Americas
|
|
231,215
|
|
|
316,123
|
|
(27) %
|
Mainland
China
|
|
189,221
|
|
|
256,183
|
|
(26) %
|
Southeast
Asia/Pacific
|
|
111,151
|
|
|
153,432
|
|
(28) %
|
South Korea
|
|
109,550
|
|
|
134,549
|
|
(19) %
|
Japan
|
|
114,316
|
|
|
121,202
|
|
(6) %
|
Europe &
Africa
|
|
169,320
|
|
|
187,906
|
|
(10) %
|
Hong
Kong/Taiwan
|
|
54,134
|
|
|
69,989
|
|
(23) %
|
Total
Customers
|
|
978,907
|
|
|
1,239,384
|
|
(21) %
|
|
|
|
|
|
|
|
|
Paid
Affiliates
|
|
|
|
|
|
|
|
Americas
|
|
32,769
|
|
|
44,745
|
|
(27) %
|
Mainland
China
|
|
27,509
|
|
|
23,088
|
|
19 %
|
Southeast
Asia/Pacific
|
|
33,574
|
|
|
40,624
|
|
(17) %
|
South
Korea(1)
|
|
24,110
|
|
|
47,852
|
|
(50) %
|
Japan
|
|
37,695
|
|
|
38,119
|
|
(1) %
|
Europe &
Africa(1)
|
|
19,254
|
|
|
31,409
|
|
(39) %
|
Hong
Kong/Taiwan(1)
|
|
11,251
|
|
|
17,439
|
|
(35) %
|
Total Paid
Affiliates
|
|
186,162
|
|
|
243,276
|
|
(23) %
|
|
|
|
|
|
|
|
|
Sales
Leaders
|
|
|
|
|
|
|
|
Americas
|
|
7,537
|
|
|
9,545
|
|
(21) %
|
Mainland
China
|
|
12,647
|
|
|
11,897
|
|
6 %
|
Southeast
Asia/Pacific
|
|
6,351
|
|
|
7,618
|
|
(17) %
|
South Korea
|
|
6,436
|
|
|
6,992
|
|
(8) %
|
Japan
|
|
7,087
|
|
|
6,063
|
|
17 %
|
Europe &
Africa
|
|
4,105
|
|
|
4,777
|
|
(14) %
|
Hong
Kong/Taiwan
|
|
2,868
|
|
|
2,932
|
|
(2) %
|
Total Sales
Leaders
|
|
47,031
|
|
|
49,824
|
|
(6) %
|
|
(1) The September
30, 2023, number is affected by a change in eligibility
requirements for receiving certain rewards within our compensation
structure. We plan to implement these changes in additional
segments over the next several quarters.
|
- "Customers" are persons who have purchased directly from the
Company during the three months ended as of the date indicated. Our
Customer numbers include members of our sales force who made such a
purchase, including Paid Affiliates and those who qualify as Sales
Leaders, but they do not include consumers who purchase directly
from members of our sales force.
- "Paid Affiliates" are any Brand Affiliates, as well as members
of our sales force in Mainland China, who earned sales compensation
during the three-month period. In all of our markets besides
Mainland China, we refer to members of our independent sales force
as "Brand Affiliates" because their primary role is to promote our
brand and products through their personal social networks.
- "Sales Leaders" are the three-month average of our monthly
Brand Affiliates, as well as sales employees and independent
marketers in Mainland China, who achieved certain qualification
requirements as of the end of each month of the quarter.
NU SKIN ENTERPRISES,
INC.
Consolidated
Statements of Income (Unaudited)
(U.S. dollars in
thousands, except per share amounts)
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
$
|
498,772
|
|
$
|
537,805
|
|
$
|
1,480,491
|
|
$
|
1,703,319
|
Cost of
sales
|
|
206,505
|
|
|
173,500
|
|
|
475,635
|
|
|
483,099
|
Gross profit
|
|
292,267
|
|
|
364,305
|
|
|
1,004,856
|
|
|
1,220,220
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Selling
expenses
|
|
187,750
|
|
|
216,478
|
|
|
561,039
|
|
|
678,603
|
General
and administrative expenses
|
|
130,882
|
|
|
137,987
|
|
|
401,825
|
|
|
428,105
|
Restructuring and impairment expenses
|
|
—
|
|
|
30,124
|
|
|
9,787
|
|
|
30,124
|
Total operating
expenses
|
|
318,632
|
|
|
384,589
|
|
|
972,651
|
|
|
1,136,832
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
(26,365)
|
|
|
(20,284)
|
|
|
32,205
|
|
|
83,388
|
Other expense,
net
|
|
(8,086)
|
|
|
(8,680)
|
|
|
(14,955)
|
|
|
(18,773)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before
provision for income taxes
|
|
(34,451)
|
|
|
(28,964)
|
|
|
17,250
|
|
|
64,615
|
Provision (benefit) for
income taxes
|
|
2,504
|
|
|
(3,574)
|
|
|
15,937
|
|
|
17,052
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
(36,955)
|
|
$
|
(25,390)
|
|
$
|
1,313
|
|
$
|
47,563
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
share:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
(0.74)
|
|
$
|
(0.51)
|
|
$
|
0.03
|
|
$
|
0.95
|
Diluted
|
$
|
(0.74)
|
|
$
|
(0.51)
|
|
$
|
0.03
|
|
$
|
0.94
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares outstanding (000s):
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
49,859
|
|
|
50,199
|
|
|
49,812
|
|
|
50,187
|
Diluted
|
|
49,859
|
|
|
50,199
|
|
|
50,029
|
|
|
50,822
|
NU SKIN ENTERPRISES,
INC.
Consolidated Balance
Sheets (Unaudited)
(U.S. dollars in
thousands)
|
|
|
|
|
|
September
30,
2023
|
|
December
31,
2022
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
233,314
|
|
$
|
264,725
|
Current
investments
|
|
16,673
|
|
|
13,784
|
Accounts
receivable, net
|
|
77,251
|
|
|
47,360
|
Inventories,
net
|
|
291,103
|
|
|
346,183
|
Prepaid expenses and
other
|
|
82,781
|
|
|
87,816
|
Total current
assets
|
|
701,122
|
|
|
759,868
|
|
|
|
|
|
|
Property and equipment,
net
|
|
428,932
|
|
|
444,806
|
Operating lease
right-of-use assets
|
|
86,315
|
|
|
98,734
|
Goodwill
|
|
229,469
|
|
|
206,432
|
Other intangible
assets, net
|
|
108,972
|
|
|
66,701
|
Other assets
|
|
238,281
|
|
|
244,429
|
Total
assets
|
$
|
1,793,091
|
|
$
|
1,820,970
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
Accounts
payable
|
$
|
48,583
|
|
$
|
53,963
|
Accrued
expenses
|
|
245,432
|
|
|
280,280
|
Current portion of
long-term debt
|
|
140,000
|
|
|
25,000
|
Total current
liabilities
|
|
434,015
|
|
|
359,243
|
|
|
|
|
|
|
Operating lease
liabilities
|
|
68,208
|
|
|
76,540
|
Long-term
debt
|
|
362,896
|
|
|
377,466
|
Other
liabilities
|
|
105,785
|
|
|
110,425
|
Total
liabilities
|
|
970,904
|
|
|
923,674
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
Class A common stock
– 500 million shares authorized, $0.001 par
value, 90.6 million shares
issued
|
|
91
|
|
|
91
|
Additional paid-in
capital
|
|
619,193
|
|
|
613,278
|
Treasury stock, at
cost – 41.2 million and 41.1 million shares
|
|
(1,570,718)
|
|
|
(1,569,061)
|
Accumulated other
comprehensive loss
|
|
(108,836)
|
|
|
(86,509)
|
Retained
earnings
|
|
1,882,457
|
|
|
1,939,497
|
Total stockholders'
equity
|
|
822,187
|
|
|
897,296
|
Total liabilities and
stockholders' equity
|
$
|
1,793,091
|
|
$
|
$1,820,970
|
NU SKIN ENTERPRISES,
INC.
Reconciliation of Gross Margin Excluding Impact of Inventory
Write-off to GAAP Gross Margin (in thousands, except for per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Gross Profit
|
|
$
|
292,267
|
|
$
|
364,305
|
|
$
|
1,004,856
|
|
$
|
1,220,220
|
|
Impact of inventory
write-off
|
|
|
65,728
|
|
|
26,905
|
|
|
65,728
|
|
|
26,905
|
|
Adjusted Gross
Profit
|
|
$
|
357,995
|
|
$
|
391,210
|
|
$
|
1,070,584
|
|
$
|
1,247,125
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
|
58.6 %
|
|
|
67.7 %
|
|
|
67.9 %
|
|
|
71.6 %
|
|
Gross Margin, excluding
inventory
write-off impact
|
|
|
71.8 %
|
|
|
72.7 %
|
|
|
72.3 %
|
|
|
73.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
498,772
|
|
$
|
537,805
|
|
$
|
1,480,491
|
|
$
|
1,703,319
|
|
NU SKIN ENTERPRISES,
INC.
Reconciliation of Core Nu Skin Business Gross Margin Excluding
Impact of Inventory Write-off to GAAP
Gross Margin (in thousands, except for per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
|
|
|
|
|
|
2023
|
|
2022
|
|
Gross Profit
|
|
|
|
|
|
|
|
$
|
270,630
|
|
$
|
361,895
|
|
Impact of inventory
write-off
|
|
|
|
|
|
|
|
|
65,728
|
|
|
18,549
|
|
Adjusted Gross
Profit
|
|
|
|
|
|
|
|
$
|
336,358
|
|
$
|
380,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross Margin
|
|
|
|
|
|
|
|
|
61.8 %
|
|
|
73.0 %
|
|
Gross Margin, excluding
inventory
write-off impact
|
|
|
|
|
|
|
|
|
76.8 %
|
|
|
76.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
|
|
|
|
|
|
$
|
438,245
|
|
$
|
495,939
|
|
NU SKIN ENTERPRISES,
INC.
Reconciliation of Operating Margin Excluding Impact of
Restructuring and Inventory Write-off to GAAP
Operating Margin (in thousands, except for per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Operating
Income
|
|
$
|
(26,365)
|
|
$
|
(20,284)
|
|
$
|
32,205
|
|
$
|
83,388
|
|
Impact of restructuring
and
impairment
|
|
|
-
|
|
|
30,124
|
|
|
9,787
|
|
|
30,124
|
|
Impact of inventory
write-off
|
|
|
65,728
|
|
|
26,905
|
|
|
65,728
|
|
|
26,905
|
|
Adjusted operating
income
|
|
$
|
39,363
|
|
$
|
36,745
|
|
$
|
107,720
|
|
$
|
140,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
|
-5.3 %
|
|
|
-3.8 %
|
|
|
2.2 %
|
|
|
4.9 %
|
|
Operating margin,
excluding
restructuring and inventory write-
off impact
|
|
|
7.9 %
|
|
|
6.8 %
|
|
|
7.3 %
|
|
|
8.2 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
498,772
|
|
$
|
537,805
|
|
$
|
1,480,491
|
|
$
|
1,703,319
|
|
NU SKIN ENTERPRISES,
INC.
Reconciliation of
Other Income (Expense), Net Excluding Impact of Q4 2021 Exit from
Grow Tech to
GAAP Other Income (Expense), Net
(in thousands, except
for per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Other income (expense),
net
|
|
$
|
(8,086)
|
|
$
|
(8,680)
|
|
$
|
(14,955)
|
|
$
|
(18,773)
|
|
Impact of charges
associated with our
Q4 2021 exit from Grow Tech:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized investment
loss
|
|
|
-
|
|
|
3,298
|
|
|
-
|
|
|
9,009
|
|
Adjusted other income
(expense), net
|
|
$
|
(8,086)
|
|
$
|
(5,382)
|
|
$
|
(14,955)
|
|
$
|
(9,764)
|
|
NU SKIN ENTERPRISES,
INC.
Reconciliation of Effective Tax Rate Excluding Impact of
Restructuring and Inventory Write-off to
GAAP Effective Tax Rate (in thousands, except for per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Provision (benefit) for
income taxes
|
|
$
|
2,504
|
|
$
|
(3,574)
|
|
$
|
15,937
|
|
$
|
17,052
|
|
Impact of restructuring
and
inventory write-off on provision for
income taxes
|
|
|
650
|
|
|
11,095
|
|
|
3,243
|
|
|
11,554
|
|
Provision for income
taxes,
excluding impact of restructuring
and inventory-write-off
|
|
$
|
3,154
|
|
$
|
7,521
|
|
$
|
19,180
|
|
$
|
28,606
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before provision
for income
taxes
|
|
|
(34,451)
|
|
|
(28,964)
|
|
|
17,250
|
|
|
64,615
|
|
Impact of inventory
write-off
|
|
|
65,728
|
|
|
26,905
|
|
|
65,728
|
|
|
26,905
|
|
Impact of restructuring
and impairment
|
|
|
-
|
|
|
30,124
|
|
|
9,787
|
|
|
30,124
|
|
Impact of charges
associated with
our exit from Grow Tech:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized investment
loss
|
|
|
-
|
|
|
3,298
|
|
|
-
|
|
|
9,009
|
|
Income before provision
for income
taxes, excluding impact of
restructuring and inventory write-off
|
|
$
|
31,277
|
|
$
|
31,363
|
|
$
|
92,765
|
|
$
|
130,653
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax
rate
|
|
|
-7.3 %
|
|
|
12.3 %
|
|
|
92.4 %
|
|
|
26.4 %
|
|
Effective tax rate,
excluding
restructuring and inventory write-off
impact
|
|
|
10.1 %
|
|
|
24.0 %
|
|
|
20.7 %
|
|
|
21.9 %
|
|
NU SKIN ENTERPRISES,
INC.
Reconciliation of Earnings Per Share Excluding Impact of
Restructuring and Inventory Write-off to GAAP
Earnings Per Share (in thousands, except for per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
September 30,
|
|
Nine months
ended
September 30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
|
$
|
(36,955)
|
|
$
|
(25,390)
|
|
$
|
1,313
|
|
$
|
47,563
|
Impact of restructuring
and inventory
write-off expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and
impairment
|
|
|
-
|
|
|
30,124
|
|
|
9,787
|
|
|
30,124
|
Inventory
write-off
|
|
|
65,728
|
|
|
26,905
|
|
|
65,728
|
|
|
26,905
|
Tax impact
|
|
|
(650)
|
|
|
(10,469)
|
|
|
(3,243)
|
|
|
(10,469)
|
Impact of charges
associated with our
exit from Grow Tech:
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss on
investment
|
|
|
-
|
|
|
3,298
|
|
|
-
|
|
|
9,009
|
Tax impact
|
|
|
-
|
|
|
(626)
|
|
|
-
|
|
|
(1,085)
|
Tax impact
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
Adjusted net
income
|
|
$
|
28,123
|
|
$
|
23,842
|
|
$
|
73,585
|
|
$
|
102,047
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share
|
|
$
|
(0.74)
|
|
$
|
(0.51)
|
|
$
|
0.03
|
|
$
|
0.94
|
Diluted earnings per
share, excluding
restructuring and inventory write-off
impact
|
|
$
|
0.56
|
|
$
|
0.47
|
|
$
|
1.47
|
|
$
|
2.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common
shares
outstanding (000)
|
|
|
49,859
|
|
|
50,199
|
|
|
50,029
|
|
|
50,822
|
NU SKIN ENTERPRISES, INC.
Reconciliation of Earnings Per Share Excluding Impact of
Restructuring and Inventory Write-off to GAAP
Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
Year ended December 31,
|
|
|
2023 - Low-
end
|
|
2023 High-
end
|
|
2023 - Low-
end
|
|
2023 High-
end
|
Earnings Per
Share
|
|
$
|
(0.14)
|
|
$
|
0.01
|
|
$
|
(0.10)
|
|
$
|
0.05
|
Impact of restructuring
expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
|
|
|
0.40
|
|
|
0.40
|
|
|
0.60
|
|
|
0.60
|
Tax impact
|
|
|
(0.11)
|
|
|
(0.11)
|
|
|
(0.18)
|
|
|
(0.18)
|
Impact of inventory
write-off:
|
|
|
|
|
|
|
|
|
|
|
|
|
Inventory
write-off
|
|
|
|
|
|
|
|
|
1.31
|
|
|
1.31
|
Tax impact
|
|
|
|
|
|
|
|
|
(0.01)
|
|
|
(0.01)
|
Adjusted EPS
|
|
$
|
0.15
|
|
$
|
0.30
|
|
$
|
1.62
|
|
$
|
1.77
|
View original content to download
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SOURCE Nu Skin Enterprises