Full Press Release Details
NU SKIN ENTERPRISES REPORTS RECORD FIRST-QUARTER 2021 RESULTS
Company announces first-quarter revenue growth of 31% and EPS growth of 153%,
raises annual guidance
PROVO, Utah - May 5, 2021 - Nu Skin Enterprises, Inc. (NYSE: NUS) today announced record first-quarter 2021 revenue and earnings per share.
Q1 2021 vs. Prior-year Quarter
| Revenue: | $677.0 million; +31% +6% fx impact or $29.6 million |
| Earnings Per Share (EPS): | $0.91; +153% |
| Sales Leaders: | 60,619; +22% |
| Customers: | 1,517,260; +34% |
"We are very pleased with a strong start to 2021 with our highest-ever first quarter revenue and earnings per share," said Ritch Wood, chief executive officer. "Our
innovative beauty and wellness product initiatives powered by our social commerce business model led to 34 percent growth in our customer base over the prior year and a 22 percent increase in global sales leaders. We were recognized again by
Euromonitor as the world's number one beauty device systems brand.* We continue to improve our geographic balance, driven by ongoing strong performance in the West, providing a more diversified and sustainable growth profile. Our
manufacturing segment also achieved record results with 69 percent year-over-year revenue growth."
Ryan Napierski, president and CEO-elect, added, "We continue to make progress toward our vision of becoming the world's leading beauty and wellness company powered by
our dynamic affiliate opportunity platform. We added innovative products to our portfolio with the launch of ageLOC Boost and Nutricentials Bioadaptives, and our markets are forecasting strong demand for new product innovations being introduced
in the back half of the year. These include Beauty Focus Collagen+, which is the first product in a new beauty-from-within line, and ageLOC Meta, a metabolic health supplement and our next major Pharmanex product introduction. The West markets
continue to lead out in adopting our social commerce business model with triple-digit growth. Our affiliates are leveraging this model to connect with more consumers and attract people interested in building their own socially enabled affiliate
marketing business. In the East, we grew 14 percent in Japan and modestly in Mainland China and anticipate increased adoption of our social commerce strategy and digital tools."
Q1 2021 Year-over-year Operating Results
| Revenue: | $677.0 million compared to $518.0 million +6% fx impact |
| Gross Margin: | 74.8% compared to 75.7% Nu Skin business was 77.8% compared to 78.1% Impacted by growth in manufacturing segment |
| Selling Expenses: | 40.4% compared to 39.8% Nu Skin business was 43.4% compared to 42.0% |
| G&A Expenses: | 25.1% compared to 28.9% |
| Operating Margin: | 9.3% compared to 7.1% |
| Other Income / (Expense): | $1.6 million compared to ($6.2) million |
| Income Tax Rate: | 26.5% compared to 35.1% Benefited by geographic mix |
| EPS: | $0.91 compared to $0.36 |
| Dividend Payments: | $19.3 million |
| Stock Repurchases: | $50.4 million $275.4 million remaining in authorization |
Q2 and Full-year 2021 Outlook
| Q2 2021 Revenue: | $680 to $705 million; +11 to 15% Approximately +5% fx impact |
| Q2 2021 EPS: | $0.97 to $1.07; +20 to 32% |
| 2021 Revenue: | $2.80 to $2.87 billion; +9 to 11% Approximately +3 to 4% fx impact |
| 2021 EPS: | $ 4.05 to $4.30; +12 to 18% |
Mark Lawrence, chief financial officer, added, "During the quarter, we continued our focus on generating shareholder
value by improving operating margin through G&A optimization and leveraging our balance sheet to repurchase nearly one million shares. We continue to create synergistic value from our Rhyz manufacturing companies as they enabled the
accelerated growth throughout the West. Given the strong start to the year, as well as the positive trends we have seen in customer and sales leader growth, we are increasing our annual revenue and EPS guidance."
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.
* Source Euromonitor International Limited; Retail Value RSP terms; all channels; 2017 to 2020. Beauty Systems are at-home Skin Care
Beauty Devices that are exclusively paired or recommended to be used with a topical consumable of the same brand. Claim verification based on Euromonitor custom research and methodology conducted January-March of 2021. Sales of at-home skin care
beauty devices includes sales of electric facial cleansers as defined in Passport database. This category does not include hair care/removal appliances, body shavers, and oral care appliances.
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 introductions, 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 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 Company's revenue results by segment for the three-month periods ended March 31 are presented in the following table (in thousands).
| Three Months Ended March 31, | Constant- Currency | |||||||||||||||
| 2021 | 2020 | Change | Change | |||||||||||||
| Nu Skin | ||||||||||||||||
| Mainland China | $ | 149,593 | $ | 137,696 | 9 | % | 1 | % | ||||||||
| Americas/Pacific | 149,465 | 74,573 | 100 | % | 97 | % | ||||||||||
| South Korea | 81,131 | 75,719 | 7 | % | - | |||||||||||
| EMEA | 76,180 | 35,403 | 115 | % | 98 | % | ||||||||||
| Japan | 69,864 | 61,300 | 14 | % | 11 | % | ||||||||||
| Southeast Asia | 67,585 | 69,586 | (3 | )% | (5 | )% | ||||||||||
| Hong Kong/Taiwan | 36,345 | 35,827 | 1 | % | (3 | )% | ||||||||||
| Other | 705 | 773 | (9 | )% | (9 | )% | ||||||||||
| Total Nu Skin | 630,868 | 490,877 | 29 | % | 22 | % | ||||||||||
| Manufacturing | 45,985 | 27,147 | 69 | % | 69 | % | ||||||||||
| Grow Tech | 173 | 4 | 4,225 | % | 4,225 | % | ||||||||||
| Total | $ | 677,026 | $ | 518,028 | 31 | % | 25 | % |
The company's Customers and Sales Leaders statistics by segment as of March 31, 2021 and 2020 are presented in the following table:
| As of March 31, 2021 | As of March 31, 2020 | % Increase (Decrease) | ||||||||||||||||||||||
| Customers | Sales Leaders | Customers | Sales Leaders | Customers | Sales Leaders | |||||||||||||||||||
| Mainland China | 316,000 | 16,716 | 271,536 | 16,159 | 16 | % | 3 | % | ||||||||||||||||
| Americas/Pacific | 407,413 | 12,340 | 214,139 | 6,930 | 90 | % | 78 | % | ||||||||||||||||
| South Korea | 152,390 | 7,099 | 174,004 | 6,608 | (12 | )% | 7 | % | ||||||||||||||||
| EMEA | 296,001 | 7,950 | 140,344 | 4,237 | 111 | % | 88 | % | ||||||||||||||||
| Japan | 126,525 | 6,131 | 119,784 | 5,635 | 6 | % | 9 | % | ||||||||||||||||
| Southeast Asia | 152,889 | 6,882 | 145,116 | 6,634 | 5 | % | 4 | % | ||||||||||||||||
| Hong Kong/Taiwan | 66,042 | 3,501 | 66,024 | 3,348 | - | 5 | % | |||||||||||||||||
| Total | 1,517,260 | 60,619 | 1,130,947 | 49,551 | 34 | % | 22 | % |
"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.
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 March 31, | ||||||||
| 2021 | 2020 | |||||||
| Revenue | $ | 677,026 | $ | 518,028 | ||||
| Cost of sales | 170,566 | 125,793 | ||||||
| Gross profit | 506,460 | 392,235 | ||||||
| Operating expenses: | ||||||||
| Selling expenses | 273,746 | 206,042 | ||||||
| General and administrative expenses | 169,801 | 149,628 | ||||||
| Total operating expenses | 443,547 | 355,670 | ||||||
| Operating income | 62,913 | 36,565 | ||||||
| Other income (expense), net | 1,582 | (6,174 | ) | |||||
| Income before provision for income taxes | 64,495 | 30,391 | ||||||
| Provision for income taxes | 17,065 | 10,661 | ||||||
| Net income | $ | 47,430 | $ | 19,730 | ||||
| Net income per share: | ||||||||
| Basic | $ | 0.94 | $ | 0.36 | ||||
| Diluted | $ | 0.91 | $ | 0.36 | ||||
| Weighted-average common shares outstanding (000s): | ||||||||
| Basic | 50,706 | 55,059 | ||||||
| Diluted | 52,172 | 55,101 |
| March 31, 2021 | December 31, 2020 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 339,099 | $ | 402,683 | ||||
| Current investments | 23,615 | 21,216 | ||||||
| Accounts receivable, net | 60,625 | 63,370 | ||||||
| Inventories, net | 363,431 | 314,366 | ||||||
| Prepaid expenses and other | 114,118 | 101,563 | ||||||
| Total current assets | 900,888 | 903,198 | ||||||
| Property and equipment, net | 464,247 | 468,181 | ||||||
| Operating lease right-of-use assets | 147,129 | 155,104 | ||||||
| Goodwill | 202,979 | 202,979 | ||||||
| Other intangible assets, net | 87,135 | 89,532 | ||||||
| Other assets | 147,721 | 138,082 | ||||||
| Total assets | $ | 1,950,099 | $ | 1,957,076 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 67,083 | $ | 66,174 | ||||
| Accrued expenses | 404,493 | 446,682 | ||||||
| Current portion of long-term debt | 90,000 | 30,000 | ||||||
| Total current liabilities | 561,576 | 542,856 | ||||||
| Operating lease liabilities | 108,237 | 112,275 | ||||||
| Long-term debt | 298,120 | 305,393 | ||||||
| Other liabilities | 110,692 | 102,281 | ||||||
| Total liabilities | 1,078,625 | 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 | 579,204 | 579,801 | ||||||
| Treasury stock, at cost - 40.4 million and 39.7 million shares | (1,505,076 | ) | (1,461,593 | ) | ||||
| Accumulated other comprehensive loss | (71,626 | ) | (64,768 | ) | ||||
| Retained earnings | 1,868,881 | 1,840,740 | ||||||
| Total stockholders' equity | 871,474 | 894,271 | ||||||
| Total liabilities and stockholders' equity | $ | 1,950,099 | $ | 1,957,076 |
Media: media@nuskin.com, (801) 345-6397
Investors: investorrelations@nuskin.com, (801) 345-3577