USANA Health Sciences Reports Fourth Quarter and Fiscal Year 2022 Results
Key Financial & Operating Results
-
Fourth quarter net sales were
$228 million versus$267 million during the prior-year period. -
Fourth quarter diluted EPS was
$0.66 as compared with$1.03 during Q4 2021. -
Fiscal year 2022 net sales were
$999 million as compared with$1,186 million during fiscal year 2021. -
Fiscal year 2022 diluted EPS totaled
$3.59 versus$5.73 during fiscal year 2021. -
Fiscal year 2022 operating cash flow totaled
$104 million . -
Company reiterates fiscal year 2023 net sales and diluted EPS outlook of
$850 million to$950 million and$2.35 to$3.30 , respectively.
Fiscal Year 2022 Financial Performance
Consolidated Results |
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Diluted EPS |
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Active Customers |
490,000 |
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“Our fourth quarter and full year results were largely in line with our preliminary results announced on
“While 2022 presented a challenging operating environment for both USANA and our industry, we remained focused on executing our long-term growth strategy. In 2022, we made progress in several areas that position USANA for future growth. These areas include digital commerce initiatives to support our business, new market expansion, the launch of our Affiliate program in select markets, and the completion of two acquisitions. These activities further our efforts to differentiate and diversify our business while contributing to shareholder returns.”
Q4 2022 Financial Performance
Consolidated Results |
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Diluted EPS |
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Active Customers |
490,000 |
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Q4 2022 Regional Results:
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Active Customers |
384,000 |
|
Asia Pacific Sub-Regions |
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Active Customers |
244,000 |
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|
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Active Customers |
53,000 |
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Active Customers |
87,000 |
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Active Customers |
106,000 |
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Balance Sheet and Share Repurchase Activity
The Company generated
Fiscal Year 2023 Outlook
The Company is reiterating its net sales and earnings per share outlook for fiscal year 2023 provided on
Fiscal Year 2023 Outlook |
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Range |
Consolidated |
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Diluted EPS |
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“While we have seen increased sales activity and customer demand in
“Moreover, we are entering fiscal year 2023 with an Active Customer base that is 13% lower than it was at the beginning of 2022. Our customer growth efforts are focused on generating sequential quarter customer growth from this base. Also of note: we continue to experience increased costs due to inflationary pressures, and we project increased spending related to several growth initiatives plus a return to in-person sales events and incentive trips.”
Management Commentary Document and Conference Call
For further information on the USANA’s operating results, please see the Management Commentary document, which has been posted on the Company’s website (http://ir.usana.com) under the Investor Relations section. USANA’s management team will hold a conference call and webcast to discuss today’s announcement with investors on
Non-GAAP Financial Measures
The Company prepares its financial statements using
About USANA
USANA develops and manufactures high-quality nutritional supplements, functional foods and personal care products that are sold directly to Associates and Preferred Customers throughout
Safe Harbor
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including: uncertainty related to the COVID-19 pandemic (“COVID-19”) to our business, operations and financial results; the potential for a resurgence of COVID-19 spread in any of our markets in the future; the impact of COVID-19 on the domestic and world economies, including any negative impact on discretionary spending, consumer demand, and consumer behavior in general; regulatory risk in
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Consolidated Statements of Operations | ||||||||||||
(In thousands, except per share data) | ||||||||||||
(Unaudited) | ||||||||||||
Quarter Ended | Twelve Months Ended | |||||||||||
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Net sales |
$ |
227,960 |
$ |
267,299 |
$ |
998,601 |
$ |
1,186,464 |
||||
Cost of sales |
|
46,430 |
|
52,518 |
|
193,890 |
|
217,898 |
||||
Gross profit |
|
181,530 |
|
214,781 |
|
804,711 |
|
968,566 |
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Operating expenses: | ||||||||||||
Associate incentives |
|
97,879 |
|
114,687 |
|
434,793 |
|
519,267 |
||||
Selling, general and administrative |
|
61,100 |
|
68,589 |
|
262,304 |
|
279,107 |
||||
Earnings from operations |
|
22,551 |
|
31,505 |
|
107,614 |
|
170,192 |
||||
Other income (expense), net |
|
251 |
|
141 |
|
1,007 |
|
450 |
||||
Earnings before income taxes |
|
22,802 |
|
31,646 |
|
108,621 |
|
170,642 |
||||
Income taxes |
|
10,007 |
|
11,326 |
|
39,271 |
|
54,137 |
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NET EARNINGS |
$ |
12,795 |
$ |
20,320 |
$ |
69,350 |
$ |
116,505 |
||||
Earnings per share - diluted |
$ |
0.66 |
$ |
1.03 |
$ |
3.59 |
$ |
5.73 |
||||
Weighted average shares outstanding - diluted |
|
19,263 |
|
19,673 |
|
19,310 |
|
20,343 |
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Consolidated Balance Sheets | ||||||
(In thousands) | ||||||
(Unaudited) | ||||||
As of | As of | |||||
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ASSETS | ||||||
Current Assets | ||||||
Cash and cash equivalents |
$ |
288,420 |
$ |
239,832 |
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Inventories |
|
67,089 |
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98,318 |
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Prepaid expenses and other current assets |
|
28,873 |
|
26,967 |
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Total current assets |
|
384,382 |
|
365,117 |
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Property and equipment, net |
|
97,773 |
|
101,780 |
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|
17,368 |
|
17,668 |
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Intangible assets, net |
|
32,432 |
|
30,442 |
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Deferred tax assets |
|
9,799 |
|
4,839 |
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Other assets |
|
54,795 |
|
57,894 |
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Total assets |
$ |
596,549 |
$ |
577,740 |
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LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current Liabilities | ||||||
Accounts payable |
$ |
11,049 |
$ |
13,508 |
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Other current liabilities |
|
132,784 |
|
147,282 |
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Total current liabilities |
|
143,833 |
|
160,790 |
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Deferred tax liabilities |
|
4,071 |
|
7,497 |
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Other long-term liabilities |
|
14,173 |
|
14,329 |
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Stockholders' equity |
|
434,472 |
|
395,124 |
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Total liabilities and stockholders' equity |
$ |
596,549 |
$ |
577,740 |
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Sales by Region | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||
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Change from prior year |
Currency impact on sales |
% change excluding currency impact |
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|
$ |
118,290 |
51.9 |
% |
$ |
125,840 |
47.1 |
% |
$ |
(7,550 |
) |
(6.0 |
%) |
$ |
(12,161 |
) |
3.7 |
% |
||||||||
|
|
40,598 |
17.8 |
% |
|
56,984 |
21.3 |
% |
|
(16,386 |
) |
(28.8 |
%) |
|
(4,088 |
) |
(21.6 |
%) |
||||||||
|
|
24,543 |
10.8 |
% |
|
29,249 |
10.9 |
% |
|
(4,706 |
) |
(16.1 |
%) |
|
(3,725 |
) |
(3.4 |
%) |
||||||||
Asia Pacific Total |
|
183,431 |
80.5 |
% |
|
212,073 |
79.3 |
% |
|
(28,642 |
) |
(13.5 |
%) |
|
(19,974 |
) |
(4.1 |
%) |
||||||||
|
|
44,529 |
19.5 |
% |
|
55,226 |
20.7 |
% |
|
(10,697 |
) |
(19.4 |
%) |
|
(1,002 |
) |
(17.6 |
%) |
||||||||
$ |
227,960 |
100.0 |
% |
$ |
267,299 |
100.0 |
% |
$ |
(39,339 |
) |
(14.7 |
%) |
$ |
(20,976 |
) |
(6.9 |
%) |
|
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(Unaudited) | ||||||||||
As of | ||||||||||
|
|
|||||||||
|
||||||||||
|
74,000 |
34.1 |
% |
81,000 |
31.9 |
% |
||||
|
62,000 |
28.6 |
% |
78,000 |
30.7 |
% |
||||
|
34,000 |
15.6 |
% |
37,000 |
14.6 |
% |
||||
Asia Pacific Total |
170,000 |
78.3 |
% |
196,000 |
77.2 |
% |
||||
|
47,000 |
21.7 |
% |
58,000 |
22.8 |
% |
||||
217,000 |
100.0 |
% |
254,000 |
100.0 |
% |
Active Preferred Customers by Region (2) | ||||||||||
(Unaudited) | ||||||||||
As of | ||||||||||
|
|
|||||||||
|
||||||||||
|
170,000 |
62.3 |
% |
174,000 |
56.8 |
% |
||||
|
25,000 |
9.1 |
% |
37,000 |
12.1 |
% |
||||
|
19,000 |
7.0 |
% |
21,000 |
6.9 |
% |
||||
Asia Pacific Total |
214,000 |
78.4 |
% |
232,000 |
75.8 |
% |
||||
|
59,000 |
21.6 |
% |
74,000 |
24.2 |
% |
||||
273,000 |
100.0 |
% |
306,000 |
100.0 |
% |
(1) |
Associates are independent distributors of our products who also purchase our products for their personal use. We only count as active those Associates who have purchased from us any time during the most recent three-month period, either for personal use or resale. |
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(2) |
Preferred Customers purchase our products strictly for their personal use and are not permitted to resell or to distribute the products. We only count as active those Preferred Customers who have purchased from us any time during the most recent three-month period. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230207006046/en/
Investor contact:
Investor Relations
(801) 954-7201
investor.relations@usanainc.com
Media contact:
Public Relations
(801) 954-7280
Source: