8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549
______________

FORM 8-K
______________

CURRENT REPORT

Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported):
February 9, 2016

USANA HEALTH SCIENCES, INC.
(Exact name of registrant as specified in its charter)

Utah
(State or other jurisdiction of incorporation)

001-35024	87-0500306
(Commission File No.)	(IRS Employer Identification
	Number)

3838 West Parkway Boulevard
Salt Lake City, Utah 84120

(Address of principal executive offices, Zip Code)

Registrant’s telephone number, including area code: (801) 954-7100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02           Results of Operations and Financial Condition.              

On February 9, 2016, USANA Health Sciences, Inc. issued a press release announcing its financial results for the fourth quarter and fiscal year ended January 2, 2016.  The release also announced that the Company will post a document titled “Management Commentary, Results and Outlook” on the Company’s website and that executives of the company would hold a conference call with investors, to be broadcast over the World Wide Web and by telephone and provided access information, date and time for the conference call.  The Company noted that the call will consist of brief remarks by the Company’s management team, before moving directly into questions and answers. A copy of the press release, and the Management Commentary, Results and Outlook, are furnished herewith as Exhibits to this Current Report on Form 8-K and are incorporated herein by reference.  These documents will be posted on the Company’s corporate website, www.usanahealthsciences.com.  

The information in this Current Report is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The information in this Current Report shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended. The furnishing of the information in this Current Report is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information this Current Report contains is material investor information that is not otherwise publicly available.

Item 9.01           Financial Statements and Exhibits.

                            (d)  Exhibits

Exhibit 99.1        Press release issued by USANA Health Sciences, Inc. dated February 9, 2016 (furnished herewith).
Exhibit 99.2        Management Commentary, Results and Outlook provided by USANA Health Sciences, Inc. dated February 9, 2016 (furnished herewith).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

		USANA HEALTH SCIENCES, INC.
		By: /s/ Paul A. Jones
		Paul A. Jones, Chief Financial Officer
Date:	February 9, 2016

EX-99.1

Exhibit 99.1

USANA Health Sciences Reports Fourth Quarter and Full-Year Financial Results

• Fourth quarter net sales increased by 2.1% to $232.6 million, but increased by 17.7% excluding the impact of a stronger U.S. dollar and a shorter 13-week reporting period
• Fourth quarter EPS increased by 10.9% to $1.83
• Number of active Associates increased by 20.6% to 421,000
• For the year, net sales increased by 16.2% to a record $918.5 million and EPS increased by 28.2% to a record $7.18
• Initial 2016 net sales and earnings outlook provided

SALT LAKE CITY--(BUSINESS WIRE)--February 9, 2016--USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal fourth quarter and year ended January 2, 2016. The Company also provided initial net sales and earnings guidance for 2016.

Financial Performance

For the fourth quarter of 2015, net sales increased to $232.6 million, up 2.1%, compared with $227.9 million in the prior-year period. A stronger U.S. dollar negatively impacted net sales by $16.5 million for the current year quarter. Additionally, the fourth quarter of 2015 was a 13-week quarter, compared to a 14-week quarter in the prior year period. The Company estimates that the extra week in 2014 contributed approximately $16 million to sales for that quarter. Excluding the impact of currency and the extra week of sales in the prior year period, net sales would have increased by 17.7% for the fourth quarter of 2015. Net sales growth was driven by 20.6% growth in the number of active Associates and nearly 10% growth in the number of Preferred Customers.

Net earnings for the fourth quarter increased by 12.5% to $24.0 million, compared with $21.3 million during the prior-year period. Although net earnings increased meaningfully year-over-year, they were below the Company’s expectations, due to higher than anticipated selling, general and administrative expenses and Associate Incentives expenses. Selling, general and administrative expenses were higher than anticipated largely as a result of higher equity compensation expense, while Associate incentives expenses were higher as a result of a greater number of Associates qualifying for incentive trips and contests.

Earnings per diluted share for the fourth quarter increased by 10.9% to $1.83, compared with $1.65 in the prior year period. This increase in earnings per share is the result of higher net earnings. Weighted average diluted shares outstanding were 13.1 million as of the end of the fourth quarter of 2015, compared with 12.9 million in the prior-year period. During the fourth quarter of 2015, the Company repurchased 456,790 shares of common stock for a total investment of $61.2 million.

The Company ended the year with $143.2 million in cash and cash equivalents and no debt. As of February 5, 2016, the Company has invested an additional $44.8 million to repurchase approximately 366,134 shares pursuant to a Rule 10b5-1 plan. As of February 5, 2016, there was $55.2 million remaining under the current share repurchase authorization and a balance of $32 million on the company’s line of credit.

“We finished the year strong and achieved our goal for net sales, despite the significant negative impact from a stronger U.S. dollar and a tough prior year comparable that included an extra week of sales,” said Dave Wentz, USANA’s Co-CEO. “We also generated double-digit customer, earnings, and earnings per share growth in 2015 and in the fourth quarter, despite our decision to invest more aggressively in our strategies for long-term growth.”

Regional Results

Net sales in the Asia Pacific region increased by 5.4% to $172.1 million, despite a negative $11.2 million impact from the strengthening U.S. dollar, and an extra week of sales in the prior year quarter. Within Asia Pacific, net sales:

• Increased by 10.9% in Greater China (15.1% on a constant currency basis);
• Increased by 13.5% in the North Asia region (20.7% on a constant currency basis); and
• Decreased by 7.5% in the Southeast Asia Pacific region (increased by 4.8% on a constant currency basis).

Sales growth in Greater China was driven by 46.6% Associate growth in Mainland China, while sales growth in North Asia resulted from 33.3% Associate growth in South Korea. Finally, customer growth in Southeast Asia Pacific was primarily due to 30.8% Associate growth in Malaysia. The total number of active Associates in the Asia Pacific region increased by 26.1% year-over-year and 5.4% sequentially.

Net sales in the Americas/Europe region decreased by 6.3% to $60.5 million. This decrease was due largely to the negative impact of $5.3 million from the strengthening U.S. dollar and an extra week of sales in the prior year quarter. On a constant currency basis, net sales in this region increased by 1.9% year-over-year. Canada and Mexico generated local currency sales growth of 8.4% and 13.3%, respectively. Both of these markets also reported strong year-over-year customer growth.

“Our growth continues to be driven by momentum in our Asia Pacific region, particularly in Mainland China,” continued Mr. Wentz. “During the quarter, we held our annual China National Meeting in Qingdao, where a record number of Associates were recognized for their achievements. In addition, we officially launched our 20^th market in Indonesia during the quarter. We are optimistic about this market for the future. We’re also encouraged by the Associate growth that we are experiencing worldwide, and we expect this to continue during 2016.”

2015 Results

For the year ended January 2, 2016, net sales increased by 16.2% to $918.5 million, compared with $790.5 million in the prior year. This increase in net sales was driven largely by sales and Associate growth in the Company’s Asia Pacific region. Net sales for the full-year 2015 were negatively impacted by $53.6 million due to a strengthening U.S. dollar and an extra week of sales in the prior year. Excluding the impact of currency and the extra week of sales in the prior year, net sales would have increased by 25.6% for the year.

Net earnings for 2015 increased by 23.5% to $94.7 million, compared with $76.6 million in the prior year. This increase resulted primarily from higher net sales. Earnings per share for the year increased by 28.2% to $7.18, compared with $5.60 in the prior year. This increase in earnings per share was attributable to higher net earnings and a lower number of diluted shares outstanding due to the Company’s share repurchases during 2015. Weighted average diluted shares outstanding were 13.2 million for fiscal 2015, compared with 13.7 million for fiscal 2014.

“This was another outstanding year for USANA,” said Kevin Guest, USANA’s Co-CEO. “We generated our 13^th consecutive year of record sales and reported our highest net earnings in the history of the company. Importantly, we also reported a record number of active Associates. We believe 2016 will be another outstanding year for USANA as we continue to execute our personalization strategy. In this regard, we have several new product and technology launches planned during the year, which will take USANA’s world-class products to a new level. During the year, we will also make several key investments in our business to support the needs of our growing customer base and create the foundation for future growth.”

Outlook

The Company provided the following consolidated net sales and earnings per share outlook for 2016:

• Consolidated net sales between $1.02 billion and $1.05 billion
• Earnings per share between $7.60 and $8.15

Our outlook reflects:

• A continued negative impact from currency fluctuations, which we estimate will reduce sales by approximately $54 million for the full year;
• Relative gross margin and Associate incentives expense in-line with 2015 operating results;
• An operating margin between 14% and 14.5% as a result of strategic investments in the business; and
• A reduced share count as a result of the company’s active share repurchase program.

Chief Financial Officer Paul Jones, commented, “Our outlook for the top-line projects another year of double-digit sales growth, despite the anticipated negative impact from currency. Our EPS outlook also reflects several strategic investments during the year, including (i) increased research and development investment to drive future product and technology innovation, (ii) investment in information technology systems and infrastructure to support our growing customer base and to further improve the experience of doing business with USANA around the world, and (iii) continued investment in Mainland China. We believe that these investments are essential to support USANA’s recent growth and to achieve both current and longer-term growth objectives.”

Conference Call

The Company has posted the “Management Commentary, Results and Outlook” document on the Company’s website (www.usanahealthsciences.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, February 10, 2016, at 11:00 a.m. Eastern Time. Investors may listen to the call by accessing USANA’s website at http://www.usanahealthsciences.com. The call will consist of brief opening remarks by the Company’s management team, before moving directly into questions and answers.

About USANA

USANA develops and manufactures high-quality nutritional supplements, healthy 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 and Indonesia. More information on USANA can be found at http://www.usanahealthsciences.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 global economic conditions generally, reliance upon our network of independent Associates, the governmental regulation of our products, manufacturing and marketing risks, adverse publicity risks, and risks associated with our international expansion. 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.

USANA Health Sciences, Inc.
Consolidated Statements of Earnings
(In thousands, except per share data)
(Unaudited)
	Quarter Ended					Year Ended
	3-Jan-15			2-Jan-16		3-Jan-15			2-Jan-16
Net sales	$	227,870		$	232,585	$	790,471		$	918,499
Cost of sales		37,516			40,181		140,794			159,682
Gross profit		190,354			192,404		649,677			758,817
Operating expenses
Associate incentives		106,467			103,409		349,044			408,160
Selling, general and administrative		51,249			53,858		184,531			208,995
Earnings from operations		32,638			35,137		116,102			141,662
Other income (expense)		(574	)		404		(449	)		927
Earnings before income taxes		32,064			35,541		115,653			142,589
Income taxes		10,764			11,574		39,017			47,917
NET EARNINGS	$	21,300		$	23,967	$	76,636		$	94,672
Earnings per share - diluted	$	1.65		$	1.83	$	5.60		$	7.18
Weighted average shares outstanding - diluted		12,920			13,082		13,689			13,177

USANA Health Sciences, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
	As of		As of
ASSETS	3-Jan-15		2-Jan-16
Current Assets
Cash and cash equivalents	$	111,126	$	143,210
Inventories		45,248		66,119
Prepaid expenses and other current assets		34,553		34,935
Total current assets		190,927		244,264
Property and equipment, net		71,164		87,982
Goodwill		17,941		17,432
Intangible assets, net		40,952		38,269
Deferred income taxes		5,933		9,844
Other assets		23,667		25,446
Total assets	$	350,584	$	423,237
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable	$	7,779	$	10,043
Other current liabilities		100,926		121,369
Total current liabilities		108,705		131,412
Other long-term liabilities		1,114		1,151
Deferred income taxes		10,601		9,822
Stockholders' equity		230,164		280,852
Total liabilities and stockholders' equity	$	350,584	$	423,237

USANA Health Sciences, Inc.
Sales by Region
(Unaudited)
(In thousands)
	Quarter Ended
	3-Jan-15				2-Jan-16				Change from Prior Year					Currency Impact			% Change Excluding Currency Impact
Region
Asia Pacific
Greater China	$	103,990	45.6	%	$	115,342	49.6	%	$	11,352		10.9	%	$	(4,367	)	15.1	%
Southeast Asia Pacific		50,315	22.1	%		46,520	20.0	%		(3,795	)	-7.5	%		(6,207	)	4.8	%
North Asia		9,034	4.0	%		10,256	4.4	%		1,222		13.5	%		(650	)	20.7	%
Asia Pacific Total		163,339	71.7	%		172,118	74.0	%		8,779		5.4	%		(11,224	)	12.2	%
Americas and Europe		64,531	28.3	%		60,467	26.0	%		(4,064	)	-6.3	%		(5,279	)	1.9	%
Total	$	227,870	100.0	%	$	232,585	100.0	%	$	4,715		2.1	%	$	(16,503	)	9.3	%
Active Associates by Region (1)
(Unaudited)
	As of
	3-Jan-15				2-Jan-16
Region
Asia Pacific
Greater China		174,000	49.9	%		234,000	55.6	%
Southeast Asia Pacific		79,000	22.6	%		86,000	20.4	%
North Asia		11,000	3.1	%		13,000	3.1	%
Asia Pacific Total		264,000	75.6	%		333,000	79.1	%
Americas and Europe		85,000	24.4	%		88,000	20.9	%
Total		349,000	100.0	%		421,000	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 for resale.
Active Preferred Customers by Region (2)
(Unaudited)
	As of
	3-Jan-15				2-Jan-16
Region
Asia Pacific
Greater China		3,000	3.7	%		4,000	4.5	%
Southeast Asia Pacific		12,000	14.8	%		13,000	14.6	%
North Asia		6,000	7.4	%		9,000	10.1	%
Asia Pacific Total		21,000	25.9	%		26,000	29.2	%
Americas and Europe		60,000	74.1	%		63,000	70.8	%
Total		81,000	100.0	%		89,000	100.0	%
(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.

CONTACT:
USANA Health Sciences, Inc.
Investors contact:
Patrique Richards, 801-954-7961
Investor Relations
investor.relations@us.usana.com
or
Media contact:
Dan Macuga, 801-954-7280
Public Relations

EX-99.2

Exhibit 99.2

USANA Health Sciences, Inc. Q4 2015 and Fiscal 2015 Management Commentary, Results and Outlook Fourth quarter net sales increased 2.1% to $232.6 million, but increased 17.7% excluding the impact of a stronger U.S. dollar and a shorter 13-week reporting period Fourth quarter EPS increased 10.9% to $1.83 Number of active Associates increased 20.6% to 421,000 For the year, net sales increased 16.2% to a record $918.5 million and EPS increased 28.2% to a record $7.18 Initial 2016 net sales and EPS outlook provided

February 9, 2016

Overview

The fourth quarter of 2015 was a strong finish to another successful year for USANA.  In 2015, we achieved our 13^th consecutive year of record sales and reported the highest annual earnings and earnings per share results in the history of the Company.  We also ended the year with a record number of Associates and Preferred Customers.  Customer growth continues to be our primary objective as we focus on improving the overall health and nutrition of individuals and families around the world.  Our sales and customer growth reflect the demand around the world for USANA’s high-quality product offering.

Our results for the year were driven by execution of our 2015 growth strategies, which included (i) offering market-specific incentives to motivate our sales force, (ii) advancing our personalization initiative, and (iii) increasing our brand recognition to make it easier for our sales force to talk about USANA.

1

During the year, we offered a variety of market specific incentives to our sales force.  The most impactful incentive was offered world-wide during late 2014 and, during the first part of 2015, in China. This incentive, and its residual effect, was successful in accelerating our customer growth during much of 2015.  During the second half of 2015, we offered additional incentives in many of our markets to continue driving customer growth.  During the fourth quarter we did not offer new promotions in China and, instead, focused on training the significant number of new Associates in this key market. Nevertheless, the short-term incentives we offered in many of our markets during 2015 contributed to our 20.6% Associate growth and 9.9% Preferred Customer growth year-over-year.

We also continued to advance our personalization strategy during the year.  Over the last few years, we have added personalized aspects to our global brand, Associate compensation plan, and our Associates’ e-business environment to make it easier and more enjoyable to do business with USANA.  In 2015, we continued to personalize our product line by introducing our new “MySmart^TMFoods” products.  MySmart^TMFoods are science-based, healthy nutrition shakes, bars, boosters and flavor optimizers that provide our customers with customized healthy food options.  We made MySmart^TMFoods available to our Associates for a limited time in 2015 as a pre-launch opportunity to purchase and try the products.  During the first half of 2016, we will officially launch these products.

Finally, we increased our brand recognition in 2015 by expanding our relationship with Dr. Mehmet Oz, as a Trusted Partner and Sponsor of The Dr. Oz Show, and by continuing to advance our athlete sponsorship program around the world.  Under our partnership with Dr. Oz, USANA products were regularly featured on The Dr. Oz Show in 2015.  This partnership has increased our brand recognition in North America and our other regions around the world.  Today, each episode of The Dr. Oz Show that features a USANA product, is translated and made available to Associates in individual markets via YouTube and other social media outlets for use in promoting the USANA brand.  Additionally, viewers of The Dr. Oz Show are able to purchase USANA products via a direct link on the show’s website.

2

Q4 2015 Results

For the fourth quarter of 2015, net sales increased by 2.1% to $232.6 million on a year-over-year basis.  Fluctuations in currency exchange rates negatively impacted net sales by $16.5 million. On a constant currency basis, net sales increased by 9.3% year-over-year as a result of strong local currency sales growth in most of our markets.  Additionally, the fourth quarter of 2015 was a 13-week quarter as compared to a 14-week quarter in the prior year period.  The Company estimates that the extra week in 2014 contributed approximately $16 million to sales for that quarter.  Excluding the impact of currency and the extra week of sales in the prior year period, net sales would have increased 17.7% for the quarter.

Sales growth was driven by a 20.6% increase in the number of active Associates and a nearly 10% increase in the number of active Preferred Customers.  Our Asia Pacific region generated most of our Associate growth, where the number of Associates increased 26.1% year-over-year.  Every market within Asia Pacific generated solid customer growth with Greater China representing the majority of growth.

During the quarter, we held our annual China National Meeting in Qingdao, where a record number of our Associates gathered to celebrate their success and receive additional training.  We also officially opened Indonesia, which marks our 20^th market worldwide.  We are optimistic about the potential of Indonesia and continue to execute our post-launch strategies to build a solid base of product users and sales leaders in this market.

Net earnings for the fourth quarter increased by 12.5% to $24.0 million year-over-year, while earnings per share increased 10.9% to $1.83.  Fluctuations in currency exchange rates negatively impacted earnings per share by an estimated $0.28.

3

Relative to our expectations for the fourth quarter, earnings per share did not meet our expectations.  This was the result of higher than anticipated selling, general and administrative expense and Associate incentives expense, as well as the negative impact of currency fluctuations.  The incremental selling, general and administrative expense was largely the result of higher equity compensation expense, which reduced earnings per share for the quarter by approximately $0.07 cents.  Associate Incentive expense was higher due to a larger than expected number of Associates qualifying for incentive trips and contests, which reduced earnings per share for the quarter by approximately $0.03.  Finally, currency negatively impacted EPS by $0.03.

Weighted average diluted shares outstanding were 13.1 million at the end of the fourth quarter of 2015, compared to 12.9 million in the prior-year period.  During the fourth quarter of 2015, the Company repurchased 456,790 shares of common stock for a total investment of $61.2 million. The Company ended the year with $143.2 million in cash and cash equivalents and no debt.  As of February 5, 2016, the Company has subsequently invested $44.8 million to repurchase approximately 366,134 shares pursuant to a Rule 10b5-1 plan. As of February 5, 2016, there was $55.2 million remaining under the current share repurchase authorization.  Also as of this date, the company had $32 million outstanding on its line of credit.

Regional and Financial Results

Asia Pacific Region | Q4 2015 Net Sales of $172.1 million; 74.0% of Consolidated Net Sales

Net sales in Asia Pacific increased 5.4% year-over-year.  The number of active Associates in the region increased 26.1% year-over-year and 5.4% sequentially.  This performance was the result of strong growth in our active Associates in each of Greater China, Southeast Asia Pacific, and North Asia.  Net sales in Asia Pacific as a whole were negatively impacted by $11.2 million due to a strengthening U.S. dollar, and an additional week of sales in Q4 2014.  Excluding the impact of currency and the extra week of sales in the prior year period, net sales in Asia Pacific would have increased approximately 20.9% for the quarter.

4

Greater China.  Net sales in Greater China increased 10.9% year-over-year, but increased 15.1% on a constant currency basis.  Currency fluctuations reduced net sales by $4.4 million in this region. Mainland China continued to drive our growth here, where local currency sales increased 33.7% year-over year and the number of active Associates increased 46.6%.  Excluding the impact of currency and the extra week of sales in the prior year period, net sales in Greater China would have increased approximately 24.0% for the quarter.

Southeast Asia Pacific.  Net sales in the Southeast Asia Pacific region decreased 7.5% year-over-year, but increased 4.8% on a constant currency basis.  A strong U.S. dollar negatively impacted net sales by $6.2 million in this region. During the quarter, we saw strong local currency sales growth in most of the markets within this region.  Excluding the impact of currency and the extra week of sales in the prior year period, net sales in the Southeast Asia Pacific region would have increased by around 12.9% for the quarter.

North Asia.  Net sales in North Asia increased 13.5% year-over-year, but increased 20.7% on a constant currency basis.  Sales growth was driven by 18.2% Associate growth in the region.  South Korea continued to drive our growth in this region, where the number of Associates increased 33.3% and local currency sales increased 23.7% year-over-year.  Excluding the impact of currency and the extra week of sales in the prior year period, net sales in North Asia would have increased approximately 30.0% for the quarter.

Americas and Europe Region | Q4 2015 Net Sales of $60.5 million; 26.0% of Consolidated Net Sales

In the Americas and Europe region, net sales decreased 6.3% year-over-year, but increased 1.9% on a constant currency basis.  In absolute terms, a strong U.S. dollar had the effect of reducing net sales in the region by $5.3 million.  The number of active Associates in the region increased 3.5% largely as a result of strong customer growth in Mexico and Canada. Mexico and Canada also generated year-over-year local currency sales growth of 13.3% and 8.4%, respectively.  Excluding the impact of currency and the extra week of sales in the prior year period, net sales in the Americas and Europe region would have increased by approximately 9.7% for the quarter.

5

Quarterly Income Statement Discussion

Gross margins declined 80 basis points year-over-year, due in large part to unfavorable changes in currency exchange rates.  This impact was partially offset by a favorable change in our market sales mix as well as modest price increases introduced during the first quarter of 2015.

Associate incentives expense for the quarter decreased 220 basis points year-over-year to 44.5% of net sales.  The decrease in Associate Incentives expense as a percentage of net sales was due primarily to a promotion during the fourth quarter of 2014, which significantly increased incentives in that quarter.

Selling, general and administrative expense was 23.2% of net sales, an increase of 70 basis points compared to the prior year period.  The increase in selling, general and administrative expense, on an absolute basis, was due to expenses related to our growth in China as well as investments in infrastructure, brand recognition, and product innovation. A stronger U.S. dollar negatively impacted SG&A by 60 basis points, on a comparative basis.

2015 Results

For fiscal 2015, net sales increased by 16.2% to $918.5 million.  Net sales growth was largely driven by sales and Associate growth in the Company’s Asia Pacific region.  Additionally, the prior year benefited from an extra week of sales and net sales for the full-year 2015 were negatively impacted by $53.6 million due to a strengthening U.S. dollar.  Excluding the impact of currency and the extra week of sales in the prior year, net sales would have increased by around 25.6%.

6

Net earnings for 2015 were $94.7 million, an increase of 23.5% when compared with the prior-year.  Higher net sales were the primary catalyst to the growth in net earnings.  Fluctuations in currency exchange rates negatively impacted earnings per share by an estimated $0.92. Earnings per share for the year increased by 28.2% to $7.18, compared to $5.60 in the prior year.  This increase in earnings per share is attributable to higher net earnings and a lower number of diluted shares outstanding due to the Company’s share repurchases during 2015.  Weighted average diluted shares outstanding were 13.2 million as of the end of 2015, compared with 13.7 million in the prior year.

Outlook

Fiscal 2016 will be another important year for USANA as we execute the next phase of personalizing our product line and continue investing in our business to support both current and future growth objectives.  During the first half of the year, we plan on officially launching our MySmart^TMFoods product line around the world and hosting a variety of launch events with our Associates.  We will follow this up with another significant product launch as well as a new technology launch in the second half of the year, which will take USANA’s world-class products to a new level, keeping USANA at the forefront of nutritional supplementation.

We plan on continuing our strategy to increase brand recognition through our partnership with The Dr. Oz show and our athlete sponsorship program. We will also continue to offer market-specific incentives to drive customer growth.

Finally, we will make several strategic investments in our business in 2016, including:

• Investment to support new product offerings and launches in 2016 and 2017 as previously mentioned;
• Increased research and development investment to drive future product and technology innovation;
• Investment in information technology systems and infrastructure to support our growing customer base and to further improve the experience of doing business with USANA around the world; and
• Continued investment in Mainland China to support and train a growing Associate base, shift production to a new manufacturing facility, and enhance other infrastructure and operations throughout this key market.

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These investments are central to USANA’s business and we believe they are essential to achieving both current and longer-term growth objectives.

In light of our 2016 growth strategies and investments, we provided the following consolidated net sales and earnings per share outlook for fiscal year 2016:

• Consolidated net sales between $1.02 billion and $1.05 billion
• Earnings per share between $7.60 and $8.15

Our outlook reflects:

• Continued negative currency pressure from a stronger U.S. dollar, which we estimate will reduce sales by approximately $54 million for 2016;
• Relative gross margin and Associate incentives expense in-line with 2015 operating results;
• An operating margin between 14% to 14.5% as a result of the previously noted investments; and
• A reduced share count as a result of the company’s active share repurchase program.

For fiscal 2015 we communicated that capital spending would total around $45 million.  A significant portion of the planned capital spending for 2015 was delayed and has been rolled forward and added to the planned capital outlay for fiscal 2016.  We believe capital spending will total between $35 and $40 million for the year.  Although we are planning to increase the level of expense investing for 2016, our long-term target for operating margin continues to be 15%.  We believe that this level of operating margin provides motivation and balance for USANA’s key stakeholders.

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As we begin fiscal 2016, we are confident in the strength of our business around the world and the growth strategies we have in place. We expect to deliver another year of record results in 2016.

Dave Wentz

Co-CEO

Kevin Guest

Co-CEO

Paul Jones

Chief Financial Officer

Forward-Looking Statements

This document contains forward-looking statements regarding future events or the future financial performance of our company.  Those statements involve risks and uncertainties that could cause actual results to differ perhaps materially from results projected in such forward-looking statements.  Examples of these statements include those regarding our strategies and outlook for 2016.  We caution you that these statements should be considered in conjunction with disclosures, including specific risk factors and financial data contained in our most recent filings with the SEC.

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Investor Relations Contact   Patrique Richards   801-954-7961   Investor.relations@us.usana.com Media Contact   Dan Macuga   801-954-7280   Public Relations

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