November 3, 2016
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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
|
001-12421
|
87-0565309
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||
(State or other jurisdiction of incorporation)
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(Commission File Number)
|
(IRS Employer Identification Number)
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||
75 West Center Street
Provo, Utah 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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□ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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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 |
Financial Statements and Exhibits.
|
99.1 |
Nu Skin Enterprises' press release dated November 3, 2016, regarding financial results for the three- and nine-month periods ended September 30, 2016.
|
99.1 |
Nu Skin Enterprises' press release dated November 3, 2016, regarding financial results for the three- and nine-month periods ended September 30, 2016.
|
2016
|
2015
|
%
Change
|
Constant Currency
% Change
|
|||||||||||||
Greater China
|
$
|
216,460
|
$
|
188,669
|
15%
|
|
20%
|
|
||||||||
North Asia
|
208,677
|
167,748
|
24%
|
|
14%
|
|
||||||||||
South Asia/Pacific
|
70,867
|
108,857
|
(35%)
|
|
(36%)
|
|
||||||||||
Americas
|
71,250
|
70,775
|
1%
|
|
3%
|
|
||||||||||
EMEA
|
36,908
|
35,259
|
5%
|
|
5%
|
|
||||||||||
Total
|
$
|
604,162
|
$
|
571,308
|
6%
|
|
4%
|
|
2016
|
2015
|
%
Change
|
Constant Currency
% Change
|
|||||||||||||
Greater China
|
$
|
611,887
|
$
|
576,172
|
6%
|
|
11%
|
|
||||||||
North Asia
|
525,771
|
512,757
|
3%
|
|
---*
|
|
||||||||||
South Asia/Pacific
|
226,742
|
247,697
|
(8%)
|
|
(5%)
|
|
||||||||||
Americas
|
204,882
|
234,115
|
(12%)
|
|
(8%)
|
|
||||||||||
EMEA
|
107,186
|
104,108
|
3%
|
|
4%
|
|
||||||||||
Total
|
$
|
1,676,468
|
$
|
1,674,849
|
---*
|
|
2%
|
|
As of September 30, 2016
|
As of September 30, 2015 |
% Increase (Decrease)
|
||||||||||||||||||||||
Actives
|
Sales Leaders
|
Actives
|
Sales Leaders
|
Actives
|
Sales Leaders
|
|||||||||||||||||||
Greater China
|
257,000
|
30,617
|
211,000
|
25,044
|
22%
|
|
22%
|
|
||||||||||||||||
North Asia
|
334,000
|
18,688
|
374,000
|
18,038
|
(11%)
|
|
4%
|
|
||||||||||||||||
South Asia/Pacific
|
116,000
|
7,213
|
120,000
|
9,925
|
(3%)
|
|
(27%)
|
|
||||||||||||||||
Americas
|
171,000
|
6,660
|
178,000
|
7,962
|
(4%)
|
|
(16%)
|
|
||||||||||||||||
EMEA
|
121,000
|
4,104
|
110,000
|
4,120
|
10%
|
|
---*
|
|
||||||||||||||||
Total
|
999,000
|
67,282
|
993,000
|
65,089
|
1%
|
|
3%
|
|
·
|
any failure of current or planned initiatives or products to generate interest among our sales force and customers and generate sponsoring and selling activities on a sustained basis;
|
·
|
risk of foreign currency fluctuations and the currency translation impact on the company's business associated with these fluctuations;
|
·
|
risk that direct selling laws and regulations in any of our markets, including the United States and China, may be modified, interpreted or enforced in a manner that results in negative changes to our business model or negatively impacts our revenue, sales force or business, including through the interruption of sales activities, loss of licenses, imposition of fines, or any other adverse actions or events;
|
·
|
risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support our planned initiatives or launch strategies, and increased risk of inventory write-offs if we over-forecast demand for a product or change our planned initiatives or launch strategies;
|
·
|
regulatory risks associated with the company's products, which could require the company to modify its claims or inhibit the company's ability to import or continue selling a product in a market if it is determined to be a medical device or if it is unable to register the product in a timely manner under applicable regulatory requirements;
|
·
|
adverse publicity related to the company's business, products, industry or any legal actions or complaints by the company's sales force or others;
|
·
|
unpredictable economic conditions and events globally;
|
·
|
any prospective or retrospective increases in duties 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.
|
NU SKIN ENTERPRISES, INC.
|
||||||||
Consolidated Statements of Income (Unaudited)
|
||||||||
For the Third Quarters Ended September 30, 2016 and 2015
|
||||||||
(in thousands, except per share amounts)
|
||||||||
2016
|
2015
|
|||||||
Revenue
|
$
|
604,162
|
$
|
571,308
|
||||
Cost of sales
|
125,863
|
152,755
|
||||||
Gross profit
|
478,299
|
418,553
|
||||||
Operating expenses:
|
||||||||
Selling expenses
|
255,274
|
240,260
|
||||||
General and administrative expenses
|
140,651
|
135,752
|
||||||
Total operating expenses
|
395,925
|
376,012
|
||||||
Operating income
|
82,374
|
42,541
|
||||||
Other income, net
|
(5,695
|
)
|
(14,428
|
)
|
||||
Income before provision for income taxes
|
76,679
|
28,113
|
||||||
Provision for income taxes
|
19,807
|
11,846
|
||||||
Net income
|
$
|
56,872
|
$
|
16,267
|
||||
Net income per share:
|
||||||||
Basic
|
$
|
1.02
|
$
|
0.28
|
||||
Diluted
|
$
|
0.98
|
$
|
0.28
|
||||
Weighted average common shares outstanding:
|
||||||||
Basic
|
55,983
|
57,725
|
||||||
Diluted
|
57,852
|
58,663
|
NU SKIN ENTERPRISES, INC.
|
||||||||
Consolidated Statements of Income (Unaudited)
|
||||||||
For the Nine-Month Periods Ended September 30, 2016 and 2015
|
||||||||
(in thousands, except per share amounts)
|
||||||||
2016
|
2015
|
|||||||
Revenue
|
$
|
1,676,468
|
$
|
1,674,849
|
||||
Cost of sales
|
391,937
|
368,073
|
||||||
Gross profit
|
1,284,531
|
1,306,776
|
||||||
Operating expenses:
|
||||||||
Selling expenses
|
699,196
|
713,714
|
||||||
General and administrative expenses
|
415,014
|
410,074
|
||||||
Total operating expenses
|
1,114,210
|
1,123,788
|
||||||
Operating income
|
170,321
|
182,988
|
||||||
Other (expense), net
|
(19,618
|
)
|
(29,454
|
)
|
||||
Income before provision for income taxes
|
150,703
|
153,534
|
||||||
Provision for income taxes
|
45,802
|
56,328
|
||||||
Net income
|
$
|
104,901
|
$
|
97,206
|
||||
Net income per share:
|
||||||||
Basic
|
$
|
1.87
|
$
|
1.66
|
||||
Diluted
|
$
|
1.85
|
$
|
1.63
|
||||
Weighted average common shares outstanding:
|
||||||||
Basic
|
55,963
|
58,403
|
||||||
Diluted
|
56,586
|
59,565
|
NU SKIN ENTERPRISES, INC.
|
||||||||
Consolidated Balance Sheets (Unaudited)
|
||||||||
(in thousands)
|
||||||||
September 30, 2016
|
December 31, 2015
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$
|
516,994
|
$
|
289,354
|
||||
Current investments
|
15,603
|
14,371
|
||||||
Accounts receivable
|
35,985
|
35,464
|
||||||
Inventories, net
|
253,350
|
265,256
|
||||||
Prepaid expenses and other
|
160,537
|
101,947
|
||||||
982,469
|
706,392
|
|||||||
Property and equipment, net
|
451,571
|
454,537
|
||||||
Goodwill
|
114,954
|
112,446
|
||||||
Other intangible assets, net
|
65,408
|
67,009
|
||||||
Other assets
|
137,413
|
165,459
|
||||||
Total assets
|
$
|
1,751,815
|
$
|
1,505,843
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
|
$
|
40,490
|
$
|
28,832
|
||||
Accrued expenses
|
337,562
|
310,916
|
||||||
Current portion of long-term debt
|
73,328
|
67,849
|
||||||
451,380
|
407,597
|
|||||||
Long-term debt
|
356,298
|
181,745
|
||||||
Other liabilities
|
89,726
|
90,880
|
||||||
Total liabilities
|
897,404
|
680,222
|
||||||
Stockholders' equity:
|
||||||||
Class A common stock
|
91
|
91
|
||||||
Additional paid-in capital
|
431,563
|
419,921
|
||||||
Treasury stock, at cost
|
(1,047,975
|
)
|
(1,017,063
|
)
|
||||
Accumulated other comprehensive loss
|
(68,523
|
)
|
(71,269
|
)
|
||||
Retained earnings
|
1,539,255
|
1,493,941
|
||||||
854,411
|
825,621
|
|||||||
Total liabilities and stockholders' equity
|
$
|
1,751,815
|
$
|
1,505,843
|
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