Full Press Release Details
Nu Skin Enterprises Reports Third Quarter 2021 Results
PROVO, Utah - Nov. 3, 2021 - Nu Skin
Enterprises, Inc. (NYSE: NUS) today announced third quarter 2021 revenue of $641.2 million and earnings per share (EPS) of $0.97.
Q3 2021 vs. Prior-year Quarter
| Revenue: | $641.2 million; (9)% +2% fx impact or $11.8 million | ||
| Earnings Per Share (EPS): | $0.97; (10)% | ||
| Sales Leaders: | 58,565; (15)% | ||
| Customers: | 1,395,271; (9)% |
"As we previously announced, our third quarter revenue was lower than anticipated due to COVID delta variant disruptions as unexpected government restrictions interrupted selling and promotional activities in several markets, specifically in
Mainland China and Southeast Asia," said Ryan Napierski, Nu Skin president and CEO. "Despite these short-term impacts, we are encouraged by our continued growth in the U.S., which was driven by our Beauty Focus Collagen+ launch and double-digit
growth in Korea due to successful product promotions and sales leader initiatives.
"Looking ahead, we anticipate the ongoing rollout of our Collagen+ and ageLOC Meta products in Q4 will build momentum going into next year. For 2022 and beyond, we remain focused on our vision of becoming the world's leading beauty and wellness
company, powered by our dynamic affiliate opportunity platform. We will work toward this by introducing our EmpowerMe personalized beauty and wellness strategy with connected beauty devices, increasing adoption of our affiliate-powered social
commerce business model and expanding our digital platform. Amidst global uncertainty, we are confident in this strategy as we transform our company toward our vision for the future."
Q3 2021 Year-over-year Operating Results
| Revenue: | $641.2 million compared to $703.3 million +2% fx impact | ||
| Gross Margin: | 75.2% compared to 73.9% Nu Skin business was 78.6% compared to 76.3% | ||
| Selling Expenses: | 39.9% compared to 39.9% Nu Skin business was 42.7% compared to 42.4% | ||
| G&A Expenses: | 25.1% compared to 23.5% | ||
| Operating Margin: | 10.2% compared to 10.6% | ||
| Other Income / (Expense): | $2.8 million compared to $0.5 million | ||
| Income Tax Rate: | 27.0% compared to 24.7% | ||
| EPS: | $0.97 compared to $1.08 |
| Dividend Payments: | $19.0 million | ||
| Stock Repurchases: | $10.0 million $255.4 million remaining in authorization |
Q4 and Full-year 2021 Outlook
| Q4 2021 Revenue: | $645 to $675 million; (10) to (14)% Approximately (1)% fx impact | ||
| Q4 2021 EPS: | $0.90 to $1.00; (29) to (36)% Prior year benefitted by 19.6% tax rate | ||
| 2021 Revenue: | $2.67 to $2.70 billion; +3 to 5% Approximately +2 to 3% fx impact | ||
| 2021 EPS: | $3.93 to $4.03; +8 to 11% |
Mark Lawrence, chief financial officer, added, "We are adjusting our 2021 forecast based on third quarter results and continued COVID uncertainty. Despite the difficult operating environment, we anticipate annual
revenue growth of 3 to 5 percent on top of strong growth in 2020, with earnings per share growth of 8 to 11 percent."
About Nu Skin Enterprises, Inc.
Nu Skin Enterprises, Inc. (NYSE: NUS) is a leading beauty and wellness company, powered by a dynamic affiliate opportunity platform. The company helps people live, look and feel their best with products that
combine the best of science, technology and nature. Backed by more than 35 years of scientific research, Nu Skin develops innovative products including Nu Skin personal care, Pharmanex nutrition and the ageLOC anti-aging brand which includes
an award-winning line of beauty device systems. Nu Skin operates in approximately 50 markets worldwide in the Americas, Asia, Europe, Africa and the Pacific. Rhyz Inc. is the company's strategic investment arm that includes a collection of
technology and manufacturing companies to support growth in the core Nu Skin business. Nu Skin is committed to sustainability, including global initiatives such as transitioning to reduced and sustainable packaging for all products by 2030. The
Nu Skin Force for Good Foundation also strives to improve children's health, education and economic circumstances throughout the world. For more information, visit nuskin.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, initiatives, 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," "remain," "become," "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 September 30, 2021 and 2020 for each of our reportable segments (U.S. dollars in thousands):
| Three Months Ended September 30, | Constant- Currency | |||||||||||||||
| 2021 | 2020 | Change | Change | |||||||||||||
| Nu Skin | ||||||||||||||||
| Mainland China | $ | 134,291 | $ | 169,068 | (21 | )% | (26 | )% | ||||||||
| Americas | 131,482 | 133,618 | (2 | )% | (2 | )% | ||||||||||
| South Korea | 91,989 | 83,460 | 10 | % | 8 | % | ||||||||||
| Southeast Asia/Pacific | 79,081 | 101,949 | (22 | )% | (23 | )% | ||||||||||
| EMEA | 55,839 | 61,411 | (9 | )% | (11 | )% | ||||||||||
| Japan | 65,117 | 70,958 | (8 | )% | (5 | )% | ||||||||||
| Hong Kong/Taiwan | 39,921 | 42,265 | (6 | )% | (8 | )% | ||||||||||
| Nu Skin other | 889 | (314 | ) | 383 | % | 382 | % | |||||||||
| Total Nu Skin | 598,609 | 662,415 | (10 | )% | (11 | )% | ||||||||||
| Rhyz Investments | ||||||||||||||||
| Manufacturing | 41,635 | 40,910 | 2 | % | 2 | % | ||||||||||
| Grow Tech | 783 | 22 | 3,459 | % | 3,459 | % | ||||||||||
| Rhyz other | 125 | - | ||||||||||||||
| Total Rhyz Investments | 42,543 | 40,932 | 4 | % | 4 | % | ||||||||||
| Total | $ | 641,152 | $ | 703,347 | (9 | )% | (11 | )% |
The following table sets forth revenue for the nine-month periods ended September 30, 2021 and 2020 for each of our reportable segments (U.S. dollars in thousands):
| Nine Months Ended September 30, | Constant- Currency | |||||||||||||||
| 2021 | 2020 | Change | Change | |||||||||||||
| Nu Skin | ||||||||||||||||
| Mainland China | $ | 438,066 | $ | 453,096 | (3 | )% | (11 | )% | ||||||||
| Americas | 403,755 | 312,436 | 29 | % | 28 | % | ||||||||||
| South Korea | 261,724 | 236,094 | 11 | % | 5 | % | ||||||||||
| Southeast Asia/Pacific | 246,338 | 262,038 | (6 | )% | (9 | )% | ||||||||||
| EMEA | 215,134 | 147,590 | 46 | % | 36 | % | ||||||||||
| Japan | 203,001 | 200,549 | 1 | % | 2 | % | ||||||||||
| Hong Kong/Taiwan | 114,795 | 115,253 | - | (4 | )% | |||||||||||
| Nu Skin other | 2,350 | 374 | 528 | % | 530 | % | ||||||||||
| Total Nu Skin | 1,885,163 | 1,727,430 | 9 | % | 5 | % | ||||||||||
| Rhyz Investments | ||||||||||||||||
| Manufacturing | 135,760 | 105,975 | 28 | % | 28 | % | ||||||||||
| Grow Tech | 1,147 | 336 | 241 | % | 241 | % | ||||||||||
| Rhyz other | 163 | - | ||||||||||||||
| Total Rhyz Investments | 137,070 | 106,311 | 29 | % | 29 | % | ||||||||||
| Total | $ | 2,022,233 | $ | 1,833,741 | 10 | % | 6 | % |
The company's Customers and Sales Leaders statistics by segment as of September 30, 2021 and 2020 are presented in the following table:
| As of September 30, 2021 | As of September 30, 2020 | % Increase (Decrease) | ||||||||||||||||||||||
| Customers | Sales Leaders | Customers | Sales Leaders | Customers | Sales Leaders | |||||||||||||||||||
| Mainland China | 355,256 | 13,838 | 341,386 | 20,970 | 4 | % | (34 | )% | ||||||||||||||||
| Americas | 324,880 | 12,127 | 397,936 | 12,798 | (18 | )% | (5 | )% | ||||||||||||||||
| South Korea | 156,439 | 9,448 | 164,256 | 7,973 | (5 | )% | 18 | % | ||||||||||||||||
| Southeast Asia/Pacific | 162,048 | 7,607 | 204,489 | 9,959 | (21 | )% | (24 | )% | ||||||||||||||||
| EMEA | 210,705 | 5,726 | 235,202 | 6,226 | (10 | )% | (8 | )% | ||||||||||||||||
| Japan | 123,453 | 6,029 | 126,896 | 6,523 | (3 | )% | (8 | )% | ||||||||||||||||
| Hong Kong/Taiwan | 62,490 | 3,790 | 69,346 | 4,067 | (10 | )% | (7 | )% | ||||||||||||||||
| Total | 1,395,271 | 58,565 | 1,539,511 | 68,516 | (9 | )% | (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 September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Revenue | $ | 641,152 | $ | 703,347 | $ | 2,022,233 | $ | 1,833,741 | ||||||||
| Cost of sales | 158,907 | 183,374 | 501,448 | 463,277 | ||||||||||||
| Gross profit | 482,245 | 519,973 | 1,520,785 | 1,370,464 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling expenses | 255,719 | 280,695 | 807,358 | 735,365 | ||||||||||||
| General and administrative expenses | 161,142 | 165,050 | 499,754 | 466,232 | ||||||||||||
| Total operating expenses | 416,861 | 445,745 | 1,307,112 | 1,201,597 | ||||||||||||
| Operating income | 65,384 | 74,228 | 213,673 | 168,867 | ||||||||||||
| Other income (expense), net | 2,781 | 525 | 351 | (4,068 | ) | |||||||||||
| Income before provision for income taxes | 68,165 | 74,753 | 214,024 | 164,799 | ||||||||||||
| Provision for income taxes | 18,436 | 18,446 | 57,527 | 46,911 | ||||||||||||
| Net income | $ | 49,729 | $ | 56,307 | $ | 156,497 | $ | 117,888 | ||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.99 | $ | 1.10 | $ | 3.11 | $ | 2.24 | ||||||||
| Diluted | $ | 0.97 | $ | 1.08 | $ | 3.03 | $ | 2.23 | ||||||||
| Weighted-average common shares outstanding (000s): | ||||||||||||||||
| Basic | 50,098 | 51,308 | 50,304 | 52,741 | ||||||||||||
| Diluted | 51,260 | 52,243 | 51,629 | 52,906 |
NU SKIN ENTERPRISES, INC.
Consolidated Balance Sheets (Unaudited)
(U.S. dollars in thousands)
| September 30, 2021 | December 31, 2020 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 282,412 | $ | 402,683 | ||||
| Current investments | 19,190 | 21,216 | ||||||
| Accounts receivable, net | 52,441 | 63,370 | ||||||
| Inventories, net | 415,203 | 314,366 | ||||||
| Prepaid expenses and other | 121,626 | 101,563 | ||||||
| Total current assets | 890,872 | 903,198 | ||||||
| Property and equipment, net | 464,049 | 468,181 | ||||||
| Operating lease right-of-use assets | 128,887 | 155,104 | ||||||
| Goodwill | 215,582 | 202,979 | ||||||
| Other intangible assets, net | 88,497 | 89,532 | ||||||
| Other assets | 186,522 | 138,082 | ||||||
| Total assets | $ | 1,974,409 | $ | 1,957,076 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 52,023 | $ | 66,174 | ||||
| Accrued expenses | 378,573 | 446,682 | ||||||
| Current portion of long-term debt | 110,000 | 30,000 | ||||||
| Total current liabilities | 540,596 | 542,856 | ||||||
| Operating lease liabilities | 95,741 | 112,275 | ||||||
| Long-term debt | 278,563 | 305,393 | ||||||
| Other liabilities | 123,032 | 102,281 | ||||||
| Total liabilities | 1,037,932 | 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 | 590,678 | 579,801 | ||||||
| Treasury stock, at cost - 40.5 million and 39.7 million shares | (1,518,535 | ) | (1,461,593 | ) | ||||
| Accumulated other comprehensive loss | (75,658 | ) | (64,768 | ) | ||||
| Retained earnings | 1,939,901 | 1,840,740 | ||||||
| Total stockholders' equity | 936,477 | 894,271 | ||||||
| Total liabilities and stockholders' equity | $ | 1,974,409 | $ | 1,957,076 |
Media: media@nuskin.com, (801) 345-6397
Investors: investorrelations@nuskin.com, (801) 345-3577