Full Press Release Details
NU SKIN ENTERPRISES REPORTS FOURTH-QUARTER REVENUE GROWTH OF 28 PERCENT
AND EPS GROWTH OF 94 PERCENT
Company provides strong initial 2021 outlook
PROVO, Utah - Feb. 10, 2021 - Nu Skin Enterprises, Inc. (NYSE: NUS) today announced fourth-quarter 2020 results, achieving 28 percent revenue growth and 94 percent earnings
per share (EPS) growth. For the full year, revenue increased seven percent and EPS increased 17 percent. In addition, the company is projecting five to nine percent revenue growth and EPS of $3.80 to $4.10 in 2021.
Q4 2020 vs. Prior-year Quarter
| Revenue: | $748.2 million; +28% +4% fx impact |
| Earnings Per Share (EPS): | $1.40; +94% |
| Sales Leaders: | 70,435; +29% |
| Customers: | 1,557,302; +34% |
2020 Annual vs. 2019
| Revenue: | $2.58 billion; +7% Less than (1%) fx impact |
| Earnings Per Share (EPS): | $3.63; +17% |
"Our strong fourth-quarter results were driven by exceptional customer growth of 34 percent compared to the prior year," said Ritch Wood, chief executive officer. "We grew
revenue in each of our reporting segments with particular strength in the West markets where our brand affiliates have more broadly adopted social commerce to share our products. The successful Boost and Nutricentials product introductions helped
generate 28 percent revenue and 29 percent sales leader growth in the quarter. In addition, our manufacturing segment continued to generate strong results, posting 42 percent revenue growth in the quarter and playing a critical role in our ability to
keep product in stock, even with increased demand and global supply chain constraints.
"I am proud of the work and execution of our entire team, especially our global sales force, as we grew both revenue and earnings amidst the uncertainty of the pandemic. We
strengthened our balance sheet, repurchased more than five million shares of stock, innovated in our product pipeline, enhanced our digital capabilities and established a path for double-digit earnings growth going forward," concluded Wood.
Q4 2020 Year-over-year Operating Results
| Revenue: | $748.2 million compared to $583.4 million +4% fx impact |
| Gross Margin: | 74.0% compared to 75.9% Nu Skin business was 76.5% compared to 78.5% Impacted by increased freight charges and geographic mix |
| Selling Expenses: | 38.0% compared to 39.1% Nu Skin business was 40.3% compared to 41.3% |
| G&A Expenses: | 24.1% compared to 27.4% |
| Operating Margin: | 11.9% compared to 9.4% |
| Other Income / (Expense): | $2.7 million compared to ($1.1) million |
| Income Tax Rate: | 19.6% compared to 25.1% Benefited by geographic mix |
| EPS: | $1.40 compared to $0.72 |
| Dividend Payments: | $19.1 million |
| Stock Repurchases: | $17.0 million $325.8 million remaining in authorization |
Q1 and Full-year 2021 Outlook
| Q1 2021 Revenue: | $610 to $640 million; +18 to 24% Approximately +3% fx impact |
| Q1 2021 EPS: | $0.65 to $0.75; +81 to 108% |
| 2021 Revenue: | $2.71 to $2.81 billion; +5 to 9% Approximately +2 to 3% fx impact |
| 2021 EPS: | $ 3.80 to $4.10; +5 to 13% |
"We expect a strong 2021 driven by our robust product pipeline and digital initiatives combined with steady growth in both our customers and sales leaders," continued Wood.
"We plan to expand our customer reach through the Boost and Nutricentials launches in the first half and the introduction of our new product innovations in the second half. We remain focused on balancing our geographic profile through the expansion
of our social commerce business and our manufacturing segment. We are forecasting high single-digit revenue growth and expect solid improvement in our operating margin, together driving toward a double-digit increase in earnings per share.
Additionally, we increased our quarterly dividend for the 20th consecutive year, a remarkable feat that demonstrates the durability of the Nu Skin business model."
Mark Lawrence, chief financial officer, added, "Our guidance reflects the strong momentum coming out of 2020 and our focused
strategy for 2021. Looking to the first quarter, we anticipate revenue of $610 to $640 million, a growth of 18 to 24 percent including an approximate three percent favorable foreign currency impact. We project earnings per share of $0.65 to $0.75,
approximately double the prior year. For our initial full-year 2021 guidance, we anticipate revenue of $2.71 to $2.81 billion, reflecting a positive foreign currency impact of approximately two to three percent. We anticipate annual earnings per
share of $3.80 to $4.10."
The Nu Skin Enterprises management team will host an investor day event Feb. 11 at noon (ET). Those wishing to access the webcast, as well as the
information presented, can visit the Investor Relations page on the company's website at ir.nuskin.com. A replay of the event will be available at the same URL through Feb. 25, 2021.
About Nu Skin Enterprises, Inc.
Founded more than 35 years ago, Nu Skin Enterprises, Inc. (NSE) empowers innovative companies to change the world 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, product pipeline and product launches, customers and sales leaders, strategies and initiatives; projections regarding revenue, operating margin, 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 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:
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 December 31, 2020 and 2019 for each of our reportable segments (U.S. dollars in thousands):
| Three Months Ended December 31, | Constant- Currency | |||||||||||||||
| 2020 | 2019 | Change | Change | |||||||||||||
| Nu Skin | ||||||||||||||||
| Mainland China | $ | 172,442 | $ | 154,731 | 11 | % | 5 | % | ||||||||
| Americas/Pacific | 157,984 | 86,146 | 83 | % | 86 | % | ||||||||||
| South Korea | 90,384 | 81,958 | 10 | % | 5 | % | ||||||||||
| Southeast Asia | 82,191 | 74,767 | 10 | % | 10 | % | ||||||||||
| Japan | 73,132 | 65,482 | 12 | % | 7 | % | ||||||||||
| EMEA | 82,656 | 46,205 | 79 | % | 68 | % | ||||||||||
| Hong Kong/Taiwan | 45,864 | 41,616 | 10 | % | 5 | % | ||||||||||
| Other | (391 | ) | 1,860 | (121 | )% | (121 | )% | |||||||||
| Total Nu Skin | 704,262 | 552,765 | 27 | % | 23 | % | ||||||||||
| Manufacturing | 43,364 | 30,487 | 42 | % | 42 | % | ||||||||||
| Grow Tech | 567 | 107 | 430 | % | 430 | % | ||||||||||
| Total | $ | 748,193 | $ | 583,359 | 28 | % | 24 | % |
The following table sets forth revenue for the years ended December 31, 2020 and 2019 for each of our reportable segments (U.S. dollars in thousands):
| Year Ended December 31, | Constant- Currency | |||||||||||||||
| 2020 | 2019 | Change | Change | |||||||||||||
| Nu Skin | ||||||||||||||||
| Mainland China | $ | 625,538 | $ | 722,526 | (13 | )% | (14 | )% | ||||||||
| Americas/Pacific | 511,941 | 349,078 | 47 | % | 53 | % | ||||||||||
| South Korea | 326,478 | 329,978 | (1 | )% | - | |||||||||||
| Southeast Asia | 302,708 | 301,620 | - | 1 | % | |||||||||||
| Japan | 273,681 | 260,039 | 5 | % | 3 | % | ||||||||||
| EMEA | 230,246 | 167,165 | 38 | % | 35 | % | ||||||||||
| Hong Kong/Taiwan | 161,117 | 166,335 | (3 | )% | (6 | )% | ||||||||||
| Other | (17 | ) | 1,621 | (101 | )% | (101 | )% | |||||||||
| Total Nu Skin | 2,431,692 | 2,298,362 | 6 | % | 6 | % | ||||||||||
| Manufacturing | 149,339 | 121,917 | 22 | % | 22 | % | ||||||||||
| Grow Tech | 903 | 137 | 559 | % | 559 | % | ||||||||||
| Total | $ | 2,581,934 | $ | 2,420,416 | 7 | % | 7 | % |
The Company's Customers and Sales Leaders statistics by segment as of December 31, 2020 and 2019 are presented in the following table:
| 2020 | 2019 | % Increase (Decrease) | ||||||||||||||||||||||
| Customers | Sales Leaders | Customers | Sales Leaders | Customers | Sales Leaders | |||||||||||||||||||
| Mainland China | 381,460 | 21,990 | 292,812 | 17,987 | 30 | % | 22 | % | ||||||||||||||||
| Americas/Pacific | 404,955 | 14,439 | 220,216 | 7,607 | 84 | % | 90 | % | ||||||||||||||||
| South Korea | 158,953 | 7,059 | 168,972 | 7,251 | (6 | )% | (3 | )% | ||||||||||||||||
| Southeast Asia | 154,355 | 8,903 | 136,349 | 7,480 | 13 | % | 19 | % | ||||||||||||||||
| Japan | 128,400 | 6,318 | 125,557 | 5,916 | 2 | % | 7 | % | ||||||||||||||||
| EMEA | 258,587 | 7,063 | 153,330 | 4,619 | 69 | % | 53 | % | ||||||||||||||||
| Hong Kong/Taiwan | 70,592 | 4,663 | 65,669 | 3,900 | 7 | % | 20 | % | ||||||||||||||||
| Total | 1,557,302 | 70,435 | 1,162,905 | 54,760 | 34 | % | 29 | % |
"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 December 31, | Years Ended December 31, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenue | $ | 748,193 | $ | 583,359 | $ | 2,581,934 | $ | 2,420,416 | ||||||||
| Cost of sales | 194,751 | 140,566 | 658,028 | 581,420 | ||||||||||||
| Gross profit | 553,442 | 442,793 | 1,923,906 | 1,838,996 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling expenses | 284,129 | 228,127 | 1,019,494 | 955,600 | ||||||||||||
| General and administrative expenses | 180,616 | 159,987 | 646,848 | 615,970 | ||||||||||||
| Total operating expenses | 464,745 | 388,114 | 1,666,342 | 1,571,570 | ||||||||||||
| Operating income | 88,697 | 54,679 | 257,564 | 267,426 | ||||||||||||
| Other income (expense), net | 2,736 | (1,101 | ) | (1,332 | ) | (12,254 | ) | |||||||||
| Income before provision for income taxes | 91,433 | 53,578 | 256,232 | 255,172 | ||||||||||||
| Provision for income taxes | 17,966 | 13,466 | 64,877 | 81,619 | ||||||||||||
| Net income | $ | 73,467 | $ | 40,112 | $ | 191,355 | $ | 173,553 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 1.44 | $ | 0.72 | $ | 3.66 | $ | 3.13 | ||||||||
| Diluted | $ | 1.40 | $ | 0.72 | $ | 3.63 | $ | 3.10 | ||||||||
| Weighted-average common shares outstanding (000s): | ||||||||||||||||
| Basic | 50,971 | 55,548 | 52,296 | 55,518 | ||||||||||||
| Diluted | 52,403 | 55,807 | 52,765 | 55,927 |
NU SKIN ENTERPRISES, INC.
Consolidated Balance Sheets (Unaudited)
(U.S. dollars in thousands)
| December 31, 2020 | December 31, 2019 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 402,683 | $ | 335,630 | ||||
| Current investments | 21,216 | 8,413 | ||||||
| Accounts receivable, net | 63,370 | 50,378 | ||||||
| Inventories, net | 314,366 | 275,891 | ||||||
| Prepaid expenses and other | 101,563 | 69,854 | ||||||
| Total current assets | 903,198 | 740,166 | ||||||
| Property and equipment, net | 468,181 | 453,604 | ||||||
| Operating lease right-of-use assets | 155,104 | 144,326 | ||||||
| Goodwill | 202,979 | 196,573 | ||||||
| Other intangible assets, net | 89,532 | 80,321 | ||||||
| Other assets | 138,082 | 154,016 | ||||||
| Total assets | $ | 1,957,076 | $ | 1,769,006 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 66,174 | $ | 38,979 | ||||
| Accrued expenses | 446,682 | 290,281 | ||||||
| Current portion of long-term debt | 30,000 | 27,500 | ||||||
| Total current liabilities | 542,856 | 356,760 | ||||||
| Operating lease liabilities | 112,275 | 105,701 | ||||||
| Long-term debt | 305,393 | 334,461 | ||||||
| Other liabilities | 102,281 | 96,795 | ||||||
| Total liabilities | 1,062,805 | 893,717 | ||||||
| Stockholders' equity: | ||||||||
| Class A common stock | 91 | 91 | ||||||
| Additional paid-in capital | 579,801 | 557,544 | ||||||
| Treasury stock, at cost | (1,461,593 | ) | (1,324,826 | ) | ||||
| Accumulated other comprehensive loss | (64,768 | ) | (85,292 | ) | ||||
| Retained earnings | 1,840,740 | 1,727,772 | ||||||
| Total stockholders' equity | 894,271 | 875,289 | ||||||
| Total liabilities and stockholders' equity | $ | 1,957,076 | $ | 1,769,006 |
Media: media@nuskin.com, (801) 345-6397
Investors: investorrelations@nuskin.com, (801) 345-3577