PROVO, Utah--(BUSINESS WIRE)--July 21,
2004--Nature's Sunshine Products, Inc. (NASDAQ:
NATR
-
News),
a leading manufacturer and marketer of
encapsulated herbs and vitamins, today reported
strongly improved operating results for the three
and six months ended June 30, 2004.
For the three months ended June 30, 2004, net
sales revenue increased 25.2 percent, to $79.6
million from $63.6 million in the same period of
the prior year. Operating income increased 74.7
percent, to $4.8 million, compared with $2.7
million in the same period of the prior year, and
net income increased 329 percent, to $4.8 million,
compared with $1.1 million in the same period of
the prior year. Diluted earnings per share
increased to $0.31, compared with $0.08 in the
same period of the prior year.
Net sales revenue for the six months ended June
30, 2004 totaled $156.5 million, a 23.9 percent
increase over $126.3 million in the same period of
the prior year. Operating income climbed 69.3
percent, to $8.4 million, compared with $4.9
million in the same period of the prior year. Net
income for the same period totaled $7.8 million,
or $0.51 per diluted share, compared with $2.7
million, or $0.19 per diluted share, in the same
period of the prior year.
"We are very pleased with the progress we
are making this year," said Douglas Faggioli,
President and CEO. "International
sales, and in particular our Synergy division,
have been achieving outstanding results.
United States sales have continued to lag
somewhat, but a new product offering and
incentive, Thai-Go with the Nature's Sunshine
Habit-of-Health 90-Day Challenge, are showing some
very positive signs. Our balance sheet remains
strong, cash flow continues to improve, and
selling, general and administrative costs, as a
percentage of sales, continue to improve. This
year should be an excellent one for Nature's
Sunshine as we continue to position the Company
for further growth."
Synergy
Worldwide, the Company's wholly owned subsidiary,
with current operations principally centered in
Asia, is experiencing rapid growth this year. In
the second quarter, net sales revenue totaled
$18.8 million, compared with $1.8 million in the
same period of the prior year, and for the six
months ended June 30, 2004, net sales revenue
totaled $32.0 million, up from $3.4 million in the
same period of the prior year.
Nature's Sunshine's international division's
net sales revenue for the second quarter totaled
$26.3 million, compared to $25.0 million in the
same period of the prior year, an increase of 5.2
percent. For the first six months, international
net sales revenue totaled $54.0 million, a 10.3
percent increase over the same period of the prior
year. Second quarter performances were
particularly strong in the Russian Federation, the
United Kingdom and Ireland, Canada, Israel,
Venezuela and Central America.
United States net sales revenue for the second
quarter totaled $34.5 million, compared with $36.8
million in the same period of the prior year, a
decline of 6.4 percent. For the six months ended
June 30, 2004, United States net sales revenue
totaled $70.4 million, a decline of 4.6 percent
from the same period in the in the prior year.
United States net sales revenue, which includes
net sales revenue from the Dominican Republic, was
negatively impacted by a 94 percent devaluation of
the Dominican Republic peso.
Late in the second quarter the Company launched
its new Thai-Go liquid nutritional supplement, a
blend of 11 fruits and herbs. Initial reception
has been very positive, and Thai-Go is currently
the Company's top selling product. In addition,
the Company has rolled out its Habit-Of-Health
90-Day Challenge, which commits consumers to
utilize a package of proprietary products for at
least 90 days. The core package contains six of
Nature's best and most popular supplements
designed to supplement typical diets and provide
extra nutritional support. It has enjoyed very
strong demand since being introduced.
The Company's financial position remained
strong. As of June 30, 2004, working capital
totaled $40.4 million, and cash and cash
equivalents totaled $34.0 million. Shareholders'
equity on June 30, 2004 was $89.3 million. The
Company has no long-term debt.
Nature's Sunshine had approximately 614,000
worldwide Distributors at June 30, 2004, compared
to 562,000 at December 31, 2003. The number of
worldwide Managers on the same date was
approximately 17,200, compared to 15,150 at
December 31, 2003.
About Nature's Sunshine
Nature's Sunshine Products manufactures and
markets through direct sales encapsulated and
tableted herbal products, high quality natural
vitamins, and other complementary products. In
addition to the United States, the Company has
operations in Japan, Mexico, Central America,
South Korea, Canada, Dominican Republic,
Venezuela, Ecuador, Peru, the United Kingdom and
Ireland, Colombia, Brazil, Thailand, Israel,
Singapore and Taiwan. The Company also has
exclusive distribution agreements with selected
companies in Argentina, Australia, Chile, New
Zealand, Norway, and the Russian Federation.
Statements in this press release concerning the
Company's business outlook or future economic
performance, anticipated profitability, revenues,
expenses or other financial items, and product
line growth, together with other statements that
are not historical facts, are
"forward-looking statements" as that
term is defined under Federal Securities Laws.
"Forward-looking statements" are subject
to risks, uncertainties and other factors, which
could cause actual results to differ materially
from those set forth in such statements. Such
risks, uncertainties, and factors include, but are
not limited to, foreign business risks, industry
cyclicality, fluctuations in customer demand and
order pattern, changes in pricing and general
economic conditions, as well as other risks
detailed in the Company's filings with the
Securities and Exchange Commission.
Conference Call Schedule
A conference call will be held on Wednesday,
July 21, 2004, at 11am (ET) and can be accessed
live over the Internet through World Investor
Link's Vcall website, located at http://www.vcall.com.
To listen to the live call, individuals should go
to the web site at least 15 minutes early to
register, download and install any necessary audio
software. A replay on the Vcall website will be
available for one week after the original
broadcast. A rebroadcast of the call will be
available starting approximately two hours after
the conference call ends, through midnight (ET) on
Sunday, August 1, 2004. The replay of the
conference call can be accessed by dialing
1-877-519-4471, and, when prompted, use PIN number
4964645. International callers dial (973) 341-3080
and use the same PIN number.
For more information, contact us at our website
at www.natr.com.
