Full Press Release Details
NU SKIN ENTERPRISES REPORTS 42 PERCENT EPS GROWTH AND
15 PERCENT REVENUE GROWTH IN THE SECOND QUARTER
PROVO, Utah - Aug. 4, 2021 - Nu Skin Enterprises, Inc. (NYSE: NUS) today announced second-quarter 2021 revenue of $704.1 million and earnings per share (EPS) of
$1.15 driven by an increase in operating margin of 260 basis points.
Q2 2021 vs. Prior-year Quarter
| Revenue: | $704.1 million; +15% +6% fx impact or $36.9 million | ||
| Earnings Per Share (EPS): | $1.15; +42% | ||
| Sales Leaders: | 64,228; +15% | ||
| Customers: | 1,467,617; (2%) |
"Our growth and success this quarter and over the past year reflect our strategy of delivering world-class beauty and wellness products, being customer obsessed,
and digitally enabling our business," said Ritch Wood, chief executive officer. "Our performance was led by continued growth in our beauty device systems and further adoption of social commerce. In addition, we significantly improved profitability
during the quarter, which led to strong earnings per share growth. We have a solid foundation in place, and I am fully confident in Ryan and our leadership team to build on the momentum and take Nu Skin to the next level."
Ryan Napierski, president and CEO-elect, added, "We continue to advance our vision of becoming the world's leading beauty and wellness company, powered by our
dynamic affiliate opportunity platform. During the quarter, we strengthened our position as the market leader in beauty device systems as our latest device system, ageLOC Boost, generated momentum with a strong launch in EMEA. Additionally, we are
pleased with the rollout of Nutricentials Bioadaptives, which is targeted at a millennial/Gen Z consumer. In the back half of the year, we will be begin rolling out Beauty Focus Collagen+, which leverages our unique strength in both beauty and
wellness, and ageLOC Meta, our next significant Pharmanex product introduction.
"We are pleased with 15 percent growth in sales leaders, while customers declined slightly due to a significant surge in the prior year. To better support our
affiliates with customer acquisition, we will be rolling out additional digital tools over the next several quarters such as personalized social commerce shops in Mainland China. This represents a significant step forward in deploying our digital
tools in the world's largest social commerce market."
Q2 2021 Year-over-year Operating Results
| Revenue: | $704.1 million compared to $612.4 million +6% fx impact | ||
| Gross Margin: | 75.6% compared to 74.8% Nu Skin business was 78.3% compared to 77.6% | ||
| Selling Expenses: | 39.5% compared to 40.6% Nu Skin business was 42.4% compared to 43.3% | ||
| G&A Expenses: | 24.0% compared to 24.7% | ||
| Operating Margin: | 12.1% compared to 9.5% | ||
| Other Income / (Expense): | ($4.0) million compared to $1.6 million | ||
| Income Tax Rate: | 27.1% compared to 29.8% Benefited by geographic mix | ||
| EPS: | $1.15 compared to $0.81 |
| Dividend Payments: | $19.0 million | ||
| Stock Repurchases: | $10.0 million $265.4 million remaining in authorization |
Q3 and Full-year 2021 Outlook
| Q3 2021 Revenue: | $700 to $730 million; 0 to 4% Approximately +2 to 3% fx impact | ||
| Q3 2021 EPS: | $1.10 to $1.20; +2 to 11% | ||
| 2021 Revenue: | $2.81 to $2.87 billion; +9 to 11% Approximately +3 to 4% fx impact | ||
| 2021 EPS: | $ 4.30 to $4.50; +18 to 24% |
Mark Lawrence, chief financial officer, added, "We reported 42 percent EPS growth driven by strong
improvements in both gross margin and operating margin as a result of continued expense control and supply chain efficiency. We are raising our EPS guidance for the year as we continue to focus on generating enhanced value for our shareholders."
About Nu Skin Enterprises, Inc.
Founded more than 35 years ago, Nu Skin Enterprises, Inc. (NSE) empowers innovative companies with sustainable solutions, opportunities, technologies and
life-improving values. The company currently focuses its efforts around innovative consumer products, product manufacturing and controlled environment agriculture technology. The NSE family of companies includes Nu Skin, which develops and
distributes a comprehensive line of premium-quality beauty and wellness solutions through a global network of sales leaders in Asia, the Americas, Europe, Africa and the Pacific; and Rhyz, our strategic investment arm that includes a collection of
sustainable manufacturing and technology innovation companies. Nu Skin Enterprises is traded on the New York Stock Exchange under the symbol "NUS." More information is available at nuskinenterprises.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, 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," "plan," "forecast," "expand," "will," "would," "could," "may," "might," the negative of these words and other similar
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:
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.
The following table sets forth revenue for the three-month periods ended June 30, 2021 and 2020 for each of our reportable segments (U.S. dollars in
| Three Months Ended June 30, | Constant- Currency | |||||||||||||||
| 2021 | 2020 | Change | Change | |||||||||||||
| Nu Skin | ||||||||||||||||
| Mainland China | $ | 154,182 | $ | 146,332 | 5 | % | (4 | )% | ||||||||
| Americas/Pacific | 151,730 | 127,919 | 19 | % | 14 | % | ||||||||||
| South Korea | 88,604 | 76,915 | 15 | % | 6 | % | ||||||||||
| EMEA | 83,115 | 50,776 | 64 | % | 49 | % | ||||||||||
| Southeast Asia | 70,751 | 66,829 | 6 | % | 2 | % | ||||||||||
| Japan | 68,020 | 68,291 | - | 1 | % | |||||||||||
| Hong Kong/Taiwan | 38,529 | 37,161 | 4 | % | - | |||||||||||
| Nu Skin other | 755 | (85 | ) | 988 | % | 988 | % | |||||||||
| Total Nu Skin | 655,686 | 574,138 | 14 | % | 8 | % | ||||||||||
| Rhyz Investments | ||||||||||||||||
| Manufacturing | 48,140 | 37,918 | 27 | % | 27 | % | ||||||||||
| Grow Tech | 191 | 310 | (38 | )% | (38 | )% | ||||||||||
| Rhyz other | 38 | - | ||||||||||||||
| Total Rhyz Investments | 48,369 | 38,228 | 27 | % | 27 | % | ||||||||||
| Total | $ | 704,055 | $ | 612,366 | 15 | % | 9 | % |
The following table sets forth revenue for the six-month periods ended June 30, 2021 and 2020 for each of our reportable segments (U.S. dollars in thousands):
| Six Months Ended June 30, | Constant- Currency | |||||||||||||||
| 2021 | 2020 | Change | Change | |||||||||||||
| Nu Skin | ||||||||||||||||
| Mainland China | $ | 303,775 | $ | 284,028 | 7 | % | (2 | )% | ||||||||
| Americas/Pacific | 301,195 | 202,492 | 49 | % | 45 | % | ||||||||||
| South Korea | 169,735 | 152,634 | 11 | % | 3 | % | ||||||||||
| EMEA | 159,295 | 86,179 | 85 | % | 69 | % | ||||||||||
| Southeast Asia | 138,336 | 136,415 | 1 | % | (2 | )% | ||||||||||
| Japan | 137,884 | 129,591 | 6 | % | 6 | % | ||||||||||
| Hong Kong/Taiwan | 74,874 | 72,988 | 3 | % | (1 | )% | ||||||||||
| Nu Skin other | 1,460 | 688 | 112 | % | 112 | % | ||||||||||
| Total Nu Skin | 1,286,554 | 1,065,015 | 21 | % | 15 | % | ||||||||||
| Rhyz Investments | ||||||||||||||||
| Manufacturing | 94,125 | 65,065 | 45 | % | 45 | % | ||||||||||
| Grow Tech | 364 | 314 | 16 | % | 16 | % | ||||||||||
| Rhyz other | 38 | - | ||||||||||||||
| Total Rhyz Investments | 94,527 | 65,379 | 45 | % | 45 | % | ||||||||||
| Total | $ | 1,381,081 | $ | 1,130,394 | 22 | % | 16 | % |
The company's Customers and Sales Leaders statistics by segment as of June 30, 2021 and 2020 are presented in the following table:
| As of June 30, 2021 | As of June 30, 2020 | % Increase (Decrease) | ||||||||||||||||||||||
| Customers | Sales Leaders | Customers | Sales Leaders | Customers | Sales Leaders | |||||||||||||||||||
| Mainland China | 328,526 | 18,647 | 321,946 | 17,104 | 2 | % | 9 | % | ||||||||||||||||
| Americas/Pacific | 397,685 | 13,078 | 424,236 | 10,787 | (6 | )% | 21 | % | ||||||||||||||||
| South Korea | 153,287 | 7,935 | 159,926 | 6,881 | (4 | )% | 15 | % | ||||||||||||||||
| EMEA | 261,857 | 7,900 | 247,057 | 5,120 | 6 | % | 54 | % | ||||||||||||||||
| Southeast Asia | 135,610 | 7,141 | 155,822 | 6,790 | (13 | )% | 5 | % | ||||||||||||||||
| Japan | 125,791 | 6,053 | 125,332 | 6,011 | - | 1 | % | |||||||||||||||||
| Hong Kong/Taiwan | 64,861 | 3,474 | 65,581 | 3,343 | (1 | )% | 4 | % | ||||||||||||||||
| Total | 1,467,617 | 64,228 | 1,499,900 | 56,036 | (2 | )% | 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.
NU SKIN ENTERPRISES, INC.
Consolidated Statements of Income (Unaudited)
(U.S. dollars in thousands, except per share amounts)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue | $ | 704,055 | $ | 612,366 | $ | 1,381,081 | $ | 1,130,394 | ||||||||
| Cost of sales | 171,975 | 154,110 | 342,541 | 279,903 | ||||||||||||
| Gross profit | 532,080 | 458,256 | 1,038,540 | 850,491 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling expenses | 277,893 | 248,628 | 551,639 | 454,670 | ||||||||||||
| General and administrative expenses | 168,811 | 151,554 | 338,612 | 301,182 | ||||||||||||
| Total operating expenses | 446,704 | 400,182 | 890,251 | 755,852 | ||||||||||||
| Operating income | 85,376 | 58,074 | 148,289 | 94,639 | ||||||||||||
| Other income (expense), net | (4,012 | ) | 1,581 | (2,430 | ) | (4,593 | ) | |||||||||
| Income before provision for income taxes | 81,364 | 59,655 | 145,859 | 90,046 | ||||||||||||
| Provision for income taxes | 22,026 | 17,804 | 39,091 | 28,465 | ||||||||||||
| Net income | $ | 59,338 | $ | 41,851 | $ | 106,768 | $ | 61,581 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 1.18 | $ | 0.81 | $ | 2.12 | $ | 1.15 | ||||||||
| Diluted | $ | 1.15 | $ | 0.81 | $ | 2.06 | $ | 1.15 | ||||||||
| Weighted-average common shares outstanding (000s): | ||||||||||||||||
| Basic | 50,115 | 51,872 | 50,409 | 53,466 | ||||||||||||
| Diluted | 51,557 | 51,925 | 51,850 | 53,502 |
NU SKIN ENTERPRISES, INC.
Consolidated Balance Sheets (Unaudited)
(U.S. dollars in thousands)
| June 30, 2021 | December 31, 2020 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 354,759 | $ | 402,683 | ||||
| Current investments | 24,499 | 21,216 | ||||||
| Accounts receivable, net | 64,701 | 63,370 | ||||||
| Inventories, net | 390,977 | 314,366 | ||||||
| Prepaid expenses and other | 126,586 | 101,563 | ||||||
| Total current assets | 961,522 | 903,198 | ||||||
| Property and equipment, net | 474,167 | 468,181 | ||||||
| Operating lease right-of-use assets | 136,738 | 155,104 | ||||||
| Goodwill | 215,582 | 202,979 | ||||||
| Other intangible assets, net | 98,955 | 89,532 | ||||||
| Other assets | 163,016 | 138,082 | ||||||
| Total assets | $ | 2,049,980 | $ | 1,957,076 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 60,632 | $ | 66,174 | ||||
| Accrued expenses | 403,165 | 446,682 | ||||||
| Current portion of long-term debt | 152,500 | 30,000 | ||||||
| Total current liabilities | 616,297 | 542,856 | ||||||
| Operating lease liabilities | 100,826 | 112,275 | ||||||
| Long-term debt | 288,343 | 305,393 | ||||||
| Other liabilities | 126,688 | 102,281 | ||||||
| Total liabilities | 1,132,154 | 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 | 586,976 | 579,801 | ||||||
| Treasury stock, at cost - 40.4 million and 39.7 million shares | (1,509,867 | ) | (1,461,593 | ) | ||||
| Accumulated other comprehensive loss | (68,553 | ) | (64,768 | ) | ||||
| Retained earnings | 1,909,179 | 1,840,740 | ||||||
| Total stockholders' equity | 917,826 | 894,271 | ||||||
| Total liabilities and stockholders' equity | $ | 2,049,980 | $ | 1,957,076 |
Media: media@nuskin.com, (801) 345-6397
Investors: investorrelations@nuskin.com, (801) 345-3577