EX-99.1 2 brhc10030354_ex99-1.htm PRESS RELEASE DATED NOVEMBER 3, 2021
 Exhibit 99.1

FOR IMMEDIATE RELEASE
Nu Skin Enterprises Reports Third Quarter 2021 Results

PROVO, Utah — Nov. 3, 2021 — Nu Skin Enterprises, Inc. (NYSE: NUS) today announced third quarter 2021 revenue of $641.2 million and earnings per share (EPS) of $0.97.

Executive Summary
Q3 2021 vs. Prior-year Quarter

Revenue:
    
$641.2 million; (9)%
•       +2% fx impact or $11.8 million
Earnings Per Share (EPS):
    
$0.97; (10)%
Sales Leaders:
    
58,565; (15)%
Customers:
    
1,395,271; (9)%

“As we previously announced, our third quarter revenue was lower than anticipated due to COVID delta variant disruptions as unexpected government restrictions interrupted selling and promotional activities in several markets, specifically in Mainland China and Southeast Asia,” said Ryan Napierski, Nu Skin president and CEO. “Despite these short-term impacts, we are encouraged by our continued growth in the U.S., which was driven by our Beauty Focus Collagen+ launch and double-digit growth in Korea due to successful product promotions and sales leader initiatives.

“Looking ahead, we anticipate the ongoing rollout of our Collagen+ and ageLOC Meta products in Q4 will build momentum going into next year. For 2022 and beyond, we remain focused on our vision of becoming the world’s leading beauty and wellness company, powered by our dynamic affiliate opportunity platform. We will work toward this by introducing our EmpowerMe personalized beauty and wellness strategy with connected beauty devices, increasing adoption of our affiliate-powered social commerce business model and expanding our digital platform. Amidst global uncertainty, we are confident in this strategy as we transform our company toward our vision for the future.”

Nu Skin Enterprises Reports Third Quarter 2021 Results
Page 2
Q3 2021 Year-over-year Operating Results
Revenue:
    
$641.2 million compared to $703.3 million
•          +2% fx impact
Gross Margin:
    
75.2% compared to 73.9%
•          Nu Skin business was 78.6% compared to 76.3%
Selling Expenses:
    
39.9% compared to 39.9%
•          Nu Skin business was 42.7% compared to 42.4%
G&A Expenses:
    
25.1% compared to 23.5%
Operating Margin:
    
10.2% compared to 10.6%
Other Income / (Expense):
    
$2.8 million compared to $0.5 million
Income Tax Rate:
    
27.0% compared to 24.7%
EPS:
    
$0.97 compared to $1.08

Stockholder Value
Dividend Payments:
    
$19.0 million
Stock Repurchases:
    
$10.0 million
•          $255.4 million remaining in authorization

Q4 and Full-year 2021 Outlook
Q4 2021 Revenue:
    
$645 to $675 million; (10) to (14)%
•          Approximately (1)% fx impact
Q4 2021 EPS:
    
$0.90 to $1.00; (29) to (36)%
•          Prior year benefitted by 19.6% tax rate
2021 Revenue:
    
$2.67 to $2.70 billion; +3 to 5%
•          Approximately +2 to 3% fx impact
2021 EPS:
    
$3.93 to $4.03; +8 to 11%

Mark Lawrence, chief financial officer, added, “We are adjusting our 2021 forecast based on third quarter results and continued COVID uncertainty. Despite the difficult operating environment, we anticipate annual revenue growth of 3 to 5 percent on top of strong growth in 2020, with earnings per share growth of 8 to 11 percent.”

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Nu Skin Enterprises Reports Third Quarter 2021 Results
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About Nu Skin Enterprises, Inc.
Nu Skin Enterprises, Inc. (NYSE: NUS) is a leading beauty and wellness company, powered by a dynamic affiliate opportunity platform. The company helps people live, look and feel their best with products that combine the best of science, technology and nature. Backed by more than 35 years of scientific research, Nu Skin develops innovative products including Nu Skin® personal care, Pharmanex® nutrition and the ageLOC® anti-aging brand which includes an award-winning line of beauty device systems. Nu Skin operates in approximately 50 markets worldwide in the Americas, Asia, Europe, Africa and the Pacific. Rhyz Inc. is the company’s strategic investment arm that includes a collection of technology and manufacturing companies to support growth in the core Nu Skin business. Nu Skin is committed to sustainability, including global initiatives such as transitioning to reduced and sustainable packaging for all products by 2030. The Nu Skin Force for Good Foundation also strives to improve children’s health, education and economic circumstances throughout the world. For more information, visit nuskin.com.
 
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 company’s performance, growth, shareholder value, vision, initiatives, product pipeline and product introductions, digital tools, customers and sales leaders, affiliates, strategies and initiatives; projections regarding revenue, earnings per share, foreign currency fluctuations 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,” “anticipate,” “project,” “outlook,” “guidance,” “remain,” “become,” “plan,” “forecast,” “expand,” “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 the ongoing COVID-19 pandemic, and 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 associated with operating in international markets, including Mainland China;

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Nu Skin Enterprises Reports Third Quarter 2021 Results
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•
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;

•
unpredictable economic conditions and events globally, including trade policies and tariffs;

•
the company’s future tax-planning initiatives; 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.
 
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.

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Nu Skin Enterprises Reports Third Quarter 2021 Results
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The following table sets forth revenue for the three-month periods ended September 30, 2021 and 2020 for each of our reportable segments (U.S. dollars in thousands):
   
Three Months Ended
September 30,
          
Constant-
Currency
  
   
2021
    
2020
    
Change
    
Change
  
Nu Skin
                        
Mainland China
  
$
134,291
    
$
169,068
      
(21
)%
    
(26
)%
Americas
    
131,482
      
133,618
      
(2
)%
    
(2
)%
South Korea
    
91,989
      
83,460
      
10
%
    
8
%
Southeast Asia/Pacific
    
79,081
      
101,949
      
(22
)%
    
(23
)%
EMEA
    
55,839
      
61,411
      
(9
)%
    
(11
)%
Japan
    
65,117
      
70,958
      
(8
)%
    
(5
)%
Hong Kong/Taiwan
    
39,921
      
42,265
      
(6
)%
    
(8
)%
Nu Skin other
    
889
      
(314
)
    
383
%
    
382
%
Total Nu Skin
    
598,609
      
662,415
      
(10
)%
    
(11
)%
Rhyz Investments
                                
Manufacturing
    
41,635
      
40,910
      
2
%
    
2
%
Grow Tech
    
783
      
22
      
3,459
%
    
3,459
%
Rhyz other
    
125
      
—
                  
Total Rhyz Investments
    
42,543
      
40,932
      
4
%
    
4
%
Total
  
$
641,152
    
$
703,347
      
(9
)%
    
(11
)%

The following table sets forth revenue for the nine-month periods ended September 30, 2021 and 2020 for each of our reportable segments (U.S. dollars in thousands):

   
Nine Months Ended
September 30,
          
Constant-
Currency
  
   
2021
    
2020
    
Change
    
Change
  
Nu Skin
                        
Mainland China
  
$
438,066
    
$
453,096
      
(3
)%
    
(11
)%
Americas
    
403,755
      
312,436
      
29
%
    
28
%
South Korea
    
261,724
      
236,094
      
11
%
    
5
%
Southeast Asia/Pacific
    
246,338
      
262,038
      
(6
)%
    
(9
)%
EMEA
    
215,134
      
147,590
      
46
%
    
36
%
Japan
    
203,001
      
200,549
      
1
%
    
2
%
Hong Kong/Taiwan
    
114,795
      
115,253
      
—
      
(4
)%
Nu Skin other
    
2,350
      
374
      
528
%
    
530
%
Total Nu Skin
    
1,885,163
      
1,727,430
      
9
%
    
5
%
Rhyz Investments
                                
Manufacturing
    
135,760
      
105,975
      
28
%
    
28
%
Grow Tech
    
1,147
      
336
      
241
%
    
241
%
Rhyz other
    
163
      
—
                  
Total Rhyz Investments
    
137,070
      
106,311
      
29
%
    
29
%
Total
  
$
2,022,233
    
$
1,833,741
      
10
%
    
6
%

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Nu Skin Enterprises Reports Third Quarter 2021 Results
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The company's Customers and Sales Leaders statistics by segment as of September 30, 2021 and 2020 are presented in the following table:

   
As of
September 30, 2021
    
As of
September 30, 2020
    
% Increase
(Decrease)
  
   
Customers
    
Sales
Leaders
    
Customers
    
Sales
Leaders
    
Customers
    
Sales
Leaders
  
Mainland China
    
355,256
      
13,838
      
341,386
      
20,970
      
4
%
    
(34
)%
Americas
    
324,880
      
12,127
      
397,936
      
12,798
      
(18
)%
    
(5
)%
South Korea
    
156,439
      
9,448
      
164,256
      
7,973
      
(5
)%
    
18
%
Southeast Asia/Pacific
    
162,048
      
7,607
      
204,489
      
9,959
      
(21
)%
    
(24
)%
EMEA
    
210,705
      
5,726
      
235,202
      
6,226
      
(10
)%
    
(8
)%
Japan
    
123,453
      
6,029
      
126,896
      
6,523
      
(3
)%
    
(8
)%
Hong Kong/Taiwan
    
62,490
      
3,790
      
69,346
      
4,067
      
(10
)%
    
(7
)%
Total
    
1,395,271
      
58,565
      
1,539,511
      
68,516
      
(9
)%
    
(15
)%

“Customers” are persons who purchased products directly from the company during the previous three months. Our Customer numbers do not include consumers who purchase products directly from members of our sales force.

“Sales Leaders” are independent distributors, and sales employees and independent marketers in China, who achieve certain qualification requirements.

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Nu Skin Enterprises Reports Third Quarter 2021 Results
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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,
  
   
2021
    
2020
    
2021
    
2020
  
                         
Revenue
  
$
641,152
    
$
703,347
    
$
2,022,233
    
$
1,833,741
  
Cost of sales
    
158,907
      
183,374
      
501,448
      
463,277
  
Gross profit
    
482,245
      
519,973
      
1,520,785
      
1,370,464
  
                                 
Operating expenses:
                                
Selling expenses
    
255,719
      
280,695
      
807,358
      
735,365
  
General and administrative expenses
    
161,142
      
165,050
      
499,754
      
466,232
  
Total operating expenses
    
416,861
      
445,745
      
1,307,112
      
1,201,597
  
                                 
Operating income
    
65,384
      
74,228
      
213,673
      
168,867
  
Other income (expense), net
    
2,781
      
525
      
351
      
(4,068
)
                                 
Income before provision for income taxes
    
68,165
      
74,753
      
214,024
      
164,799
  
Provision for income taxes
    
18,436
      
18,446
      
57,527
      
46,911
  
                                 
Net income
  
$
49,729
    
$
56,307
    
$
156,497
    
$
117,888
  
                                 
Net income per share:
                                
Basic
  
$
0.99
    
$
1.10
    
$
3.11
    
$
2.24
  
Diluted
  
$
0.97
    
$
1.08
    
$
3.03
    
$
2.23
  
                                 
Weighted-average common shares outstanding (000s):
                                
Basic
    
50,098
      
51,308
      
50,304
      
52,741
  
Diluted
    
51,260
      
52,243
      
51,629
      
52,906
  

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Nu Skin Enterprises Reports Third Quarter 2021 Results
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NU SKIN ENTERPRISES, INC.
Consolidated Balance Sheets (Unaudited)
(U.S. dollars in thousands)

   
September 30,
2021
    
December 31,
2020
  
ASSETS
            
Current assets:
            
Cash and cash equivalents
  
$
282,412
    
$
402,683
  
Current investments
    
19,190
      
21,216
  
Accounts receivable, net
    
52,441
      
63,370
  
Inventories, net
    
415,203
      
314,366
  
Prepaid expenses and other
    
121,626
      
101,563
  
Total current assets
    
890,872
      
903,198
  
                 
Property and equipment, net
    
464,049
      
468,181
  
Operating lease right-of-use assets
    
128,887
      
155,104
  
Goodwill
    
215,582
      
202,979
  
Other intangible assets, net
    
88,497
      
89,532
  
Other assets
    
186,522
      
138,082
  
Total assets
  
$
1,974,409
    
$
1,957,076
  
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
                
Current liabilities:
                
Accounts payable
  
$
52,023
    
$
66,174
  
Accrued expenses
    
378,573
      
446,682
  
Current portion of long-term debt
    
110,000
      
30,000
  
Total current liabilities
    
540,596
      
542,856
  
                 
Operating lease liabilities
    
95,741
      
112,275
  
Long-term debt
    
278,563
      
305,393
  
Other liabilities
    
123,032
      
102,281
  
Total liabilities
    
1,037,932
      
1,062,805
  
                 
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
    
590,678
      
579,801
  
Treasury stock, at cost – 40.5 million and 39.7 million shares
    
(1,518,535
)
    
(1,461,593
)
Accumulated other comprehensive loss
    
(75,658
)
    
(64,768
)
Retained earnings
    
1,939,901
      
1,840,740
  
Total stockholders' equity
    
936,477
      
894,271
  
Total liabilities and stockholders’ equity
  
$
1,974,409
    
$
1,957,076
  

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CONTACTS:
Media: media@nuskin.com, (801) 345-6397
Investors: investorrelations@nuskin.com, (801) 345-3577