April 26, 2012
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Date of Report (Date of earliest event reported)
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NU SKIN ENTERPRISES, INC.
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(Exact name of registrant as specified in its charter)
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Delaware
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001-12421
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87-0565309
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(State or other jurisdiction of incorporation)
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(Commission File Number)
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(IRS Employer Identification Number)
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75 West Center Street
Provo, UT 84601
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(Address of principal executive offices and zip code)
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(801) 345-1000
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(Registrant’s telephone number, including area code)
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N/A
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(Former name or former address, if changed since last report)
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□
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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□
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4 (c))
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Item 9.01
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Financial Statements and Exhibits.
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99.1
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Nu Skin Enterprises’ press release dated April 26, 2012, regarding financial results for the first quarter ended March 31, 2012.
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99.1
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Nu Skin Enterprises’ press release dated April 26, 2012, regarding financial results for the first quarter ended March 31, 2012.
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NU SKIN ENTERPRISES, INC.
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Consolidated Statements of Income (Unaudited)
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For the First Quarters Ended March 31, 2012 and 2011
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(in thousands, except per share amounts)
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2012
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2011
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Revenue:
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North Asia
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$ | 182,200 | $ | 179,434 | ||||
Greater China
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92,611 | 68,593 | ||||||
South Asia/Pacific
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77,321 | 49,946 | ||||||
Americas
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66,340 | 55,879 | ||||||
Europe
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43,530 | 41,993 | ||||||
Total revenue
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462,002 | 395,845 | ||||||
Cost of sales
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75,756 | 100,654 | (1) | |||||
Gross profit
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386,246 | 295,191 | ||||||
Operating expenses:
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Selling expenses
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202,535 | 169,142 | ||||||
General and administrative expenses
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112,048 | 101,142 | ||||||
Total operating expenses
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314,583 | 270,284 | ||||||
Operating income
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71,663 | 24,907 | ||||||
Other income (expense), net
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3,635 | (422 | ) | |||||
Income before provision for income taxes
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75,298 | 24,485 | ||||||
Provision for income taxes
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27,469 | 9,177 | ||||||
Net income
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$ | 47,829 | $ | 15,308 | ||||
Net income per share:
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Basic
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$ | 0.77 | $ | 0.25 | ||||
Diluted
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$ | 0.74 | $ | 0.24 | ||||
Weighted average common shares outstanding:
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Basic
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62,230 | 61,888 | ||||||
Diluted
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65,017 | 64,017 |
NU SKIN ENTERPRISES, INC.
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Consolidated Balance Sheets (Unaudited)
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(in thousands)
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March 31, 2012
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December 31, 2011
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 276,206 | $ | 272,974 | ||||
Current investments
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13,695 | 17,727 | ||||||
Accounts receivable
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38,092 | 31,615 | ||||||
Inventories, net
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120,718 | 112,111 | ||||||
Prepaid expenses and other
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101,827 | 95,660 | ||||||
550,538 | 530,087 | |||||||
Property and equipment, net
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156,184 | 149,505 | ||||||
Goodwill
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112,446 | 112,446 | ||||||
Other intangible assets, net
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80,195 | 83,333 | ||||||
Other assets
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129,124 | 115,585 | ||||||
Total assets
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$ | 1,028,487 | $ | 990,956 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
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Current liabilities:
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Accounts payable
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$ | 42,014 | $ | 32,181 | ||||
Accrued expenses
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168,907 | 180,382 | ||||||
Current portion of long-term debt
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27,608 | 28,608 | ||||||
238,529 | 241,171 | |||||||
Long-term debt
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96,082 | 107,944 | ||||||
Other liabilities
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72,371 | 67,605 | ||||||
Total liabilities
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406,982 | 416,720 | ||||||
Stockholders’ equity:
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Class A common stock
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91 | 91 | ||||||
Additional paid-in capital
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296,619 | 292,240 | ||||||
Treasury stock, at cost
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(522,658 | ) | (522,162 | ) | ||||
Retained earnings
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902,003 | 866,632 | ||||||
Accumulated other comprehensive loss
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(54,550 | ) | (62,565 | ) | ||||
621,505 | 574,236 | |||||||
Total liabilities and stockholders’ equity
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$ | 1.028,487 | $ | 990,956 |
NU SKIN ENTERPRISES, INC.
Distributor/Preferred Customer Growth by Market
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As of March 31, 2012
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As of March 31, 2011 |
% Increase (Decrease)
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Active*
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Executive
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Active*
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Executive
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Active*
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Executive
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North Asia
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335,000 | 14,900 | 325,000 | 15,371 | 3.1% | (3.1%) | ||||||||||||||||||
Greater China
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151,000 | 11,551 | 121,000 | 8,817 | 24.8% | 31.0% | ||||||||||||||||||
South Asia/Pacific
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91,000 | 4,911 | 84,000 | 4,008 | 8.3% | 22.5% | ||||||||||||||||||
Americas
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170,000 | 5,776 | 159,000 | 5,022 | 6.9% | 15.0% | ||||||||||||||||||
Europe
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113,000 | 4,076 | 109,000 | 3,903 | 3.7% | 4.4% | ||||||||||||||||||
Total
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860,000 | 41,214 | 798,000 | 37,121 | 7.8% | 11.0% |
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* Active distributors include preferred customers and distributors purchasing products directly from the company during the quarter.
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NU SKIN ENTERPRISES, INC.
Reconciliation of GAAP Gross Profit to
Gross Profit Excluding Japan Customs Expense
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(in thousands)
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Quarter Ended
March 31,
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2012 | 2011 | |||||||
Revenue as reported
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$ | 462,002 | $ | 395,845 | ||||
GAAP gross profit as reported
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$ | 386,246 | $ | 295,191 | ||||
Japan customs expense
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─
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32,754 | ||||||
Gross profit excluding Japan customs expense
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$ | 386,246 | $ | 327,945 | ||||
Gross profit as a percent of revenue excluding Japan customs expense
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83.6% | 82.8% | ||||||
GAAP gross profit as a % of revenue
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83.6% | 74.6% |
NU SKIN ENTERPRISES, INC.
Reconciliation of GAAP Operating Income to
Operating Income Excluding Japan Customs Expense
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(in thousands)
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Quarter Ended
March 31,
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2012
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2011
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Revenue as reported
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$ | 462,002 | $ | 395,845 | ||||
GAAP operating income as reported
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$ | 71,663 | $ | 24,907 | ||||
Japan customs expense
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─
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32,754 | ||||||
Operating income excluding Japan customs expense
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$ | 71,663 | $ | 57,661 | ||||
Operating income as a percent of revenue excluding Japan customs expense
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15.5% | 14.6% | ||||||
GAAP operating income as a % of revenue
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15.5% | 6.3% |
NU SKIN ENTERPRISES, INC.
Reconciliation of GAAP Diluted Earnings Per Share to
Diluted Earnings Per Share Excluding Japan Customs Expense
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(in thousands)
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Quarter Ended
March 31,
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2012
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2011
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GAAP net income as reported
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$ | 47,829 | $ | 15,308 | ||||
Japan customs expense
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─
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32,754 | ||||||
Tax effect of Japan customs expense
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─
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(12,276 | ) | |||||
Net income excluding Japan customs expense
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$ | 47,829 | $ | 35,786 | ||||
Diluted earnings per share excluding Japan customs expense
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$ | 0.74 | $ | 0.56 | ||||
GAAP diluted earnings per share
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$ | 0.74 | $ | 0.24 |