USANA Health Sciences Reports Fourth Quarter and Fiscal Year 2023 Results
Key Financial Results & Guidance
-
Fourth quarter net sales were
$221 million versus$228 million during Q4 2022 and$213 million during Q3 2023. -
Fourth quarter diluted EPS was
$0.87 as compared with$0.66 during Q4 2022. -
Fiscal year 2023 net sales were
$921 million as compared with$999 million during fiscal year 2022. -
Fiscal year 2023 diluted EPS totaled
$3.30 versus$3.59 during fiscal year 2022. -
Company provides initial fiscal year 2024 net sales and diluted EPS guidance of
$850 million to$920 million and$2.40 to$3.00 , respectively.
Q4 2023 Financial Performance |
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Consolidated Results |
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Diluted EPS |
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Active Customers |
483,000 |
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“USANA delivered solid fourth quarter operating results, which exceeded our expectations,” said
Fiscal Year 2023 Financial Performance |
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Consolidated Results |
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Diluted EPS |
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Q4 2023 Regional Results: |
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Active Customers |
383,000 |
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Asia Pacific Sub-Regions |
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Active Customers |
255,000 |
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Active Customers |
48,000 |
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Active Customers |
80,000 |
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Active Customers |
100,000 |
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Balance Sheet and Share Repurchase Activity
The Company generated
Fiscal Year 2024 Outlook
The Company is introducing net sales and earnings per share outlook for fiscal year 2024, as detailed in the table below:
Fiscal Year 2024 Outlook |
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Range |
Consolidated |
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Diluted EPS |
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“We are pleased with our fourth quarter results, which contributed to our strong finish to the year,” said
“Our 2024 fiscal outlook assumes an operating margin of 8% to 9%, which reflects increased investments in
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: global economic conditions generally, including continued inflationary pressure around the world and negative impact on our operating costs, consumer demand and consumer behavior in general; reliance upon our network of independent Associates; risk associated with governmental regulation of our products, manufacturing and direct selling business model 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 |
$ |
221,083 |
$ |
227,960 |
$ |
921,010 |
$ |
998,601 |
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Cost of sales |
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42,319 |
|
46,430 |
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176,693 |
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193,890 |
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Gross profit |
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178,764 |
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181,530 |
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744,317 |
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804,711 |
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Operating expenses: | ||||||||||||
Associate incentives |
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95,881 |
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97,879 |
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394,257 |
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434,793 |
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Selling, general and administrative |
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58,664 |
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61,100 |
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256,989 |
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262,304 |
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Earnings from operations |
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24,219 |
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22,551 |
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93,071 |
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107,614 |
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Other income, net |
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2,392 |
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251 |
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9,382 |
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1,007 |
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Earnings before income taxes |
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26,611 |
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22,802 |
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102,453 |
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108,621 |
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Income taxes |
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9,845 |
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10,007 |
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38,665 |
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39,271 |
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NET EARNINGS |
$ |
16,766 |
$ |
12,795 |
$ |
63,788 |
$ |
69,350 |
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Earnings per share - diluted |
$ |
0.87 |
$ |
0.66 |
$ |
3.30 |
$ |
3.59 |
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Weighted average shares outstanding - diluted |
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19,253 |
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19,263 |
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19,345 |
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19,310 |
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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 |
$ |
330,420 |
$ |
288,420 |
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Inventories |
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61,454 |
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67,089 |
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Prepaid expenses and other current assets |
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25,872 |
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28,873 |
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Total current assets |
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417,746 |
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384,382 |
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Property and equipment, net |
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99,814 |
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97,773 |
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17,102 |
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17,368 |
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Intangible assets, net |
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29,919 |
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32,432 |
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Deferred tax assets |
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13,284 |
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9,799 |
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Other assets* |
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54,892 |
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54,795 |
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Total assets |
$ |
632,757 |
$ |
596,549 |
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LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
Current Liabilities | ||||||
Accounts payable |
$ |
10,070 |
$ |
11,049 |
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Line of credit - short term |
|
786 |
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- |
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Other current liabilities |
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107,989 |
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132,784 |
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Total current liabilities |
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118,845 |
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143,833 |
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Deferred tax liabilities |
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4,552 |
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4,071 |
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Other long-term liabilities |
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12,158 |
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14,173 |
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Stockholders' equity |
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497,202 |
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434,472 |
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Total liabilities and stockholders' equity |
$ |
632,757 |
$ |
596,549 |
*Includes noncurrent inventories of |
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Sales by Region | ||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||
2023 |
2022 |
Change from prior year |
Currency impact on sales |
% change excluding currency impact |
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$ |
115,921 |
52.4 |
% |
$ |
118,290 |
51.9 |
% |
$ |
(2,369 |
) |
(2.0 |
%) |
$ |
(1,352 |
) |
(0.9 |
%) |
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|
|
39,116 |
17.7 |
% |
|
40,598 |
17.8 |
% |
|
(1,482 |
) |
(3.7 |
%) |
|
(146 |
) |
(3.3 |
%) |
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|
|
22,065 |
10.0 |
% |
|
24,543 |
10.8 |
% |
|
(2,478 |
) |
(10.1 |
%) |
|
569 |
|
(12.4 |
%) |
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Asia Pacific Total |
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177,102 |
80.1 |
% |
|
183,431 |
80.5 |
% |
|
(6,329 |
) |
(3.5 |
%) |
|
(929 |
) |
(2.9 |
%) |
||||||||
|
|
43,981 |
19.9 |
% |
|
44,529 |
19.5 |
% |
|
(548 |
) |
(1.2 |
%) |
|
678 |
|
(2.8 |
%) |
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$ |
221,083 |
100.0 |
% |
$ |
227,960 |
100.0 |
% |
$ |
(6,877 |
) |
(3.0 |
%) |
$ |
(251 |
) |
(2.9 |
%) |
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(Unaudited) | ||||||||||
As of | ||||||||||
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|
|||||||||
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||||||||||
|
70,000 |
35.0 |
% |
74,000 |
34.1 |
% |
||||
|
52,000 |
26.0 |
% |
62,000 |
28.6 |
% |
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|
32,000 |
16.0 |
% |
34,000 |
15.6 |
% |
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Asia Pacific Total |
154,000 |
77.0 |
% |
170,000 |
78.3 |
% |
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|
46,000 |
23.0 |
% |
47,000 |
21.7 |
% |
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200,000 |
100.0 |
% |
217,000 |
100.0 |
% |
Active Preferred Customers by Region (2) | ||||||||||
(Unaudited) | ||||||||||
As of | ||||||||||
|
|
|||||||||
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|
185,000 |
65.4 |
% |
170,000 |
62.3 |
% |
||||
|
28,000 |
9.9 |
% |
25,000 |
9.1 |
% |
||||
|
16,000 |
5.6 |
% |
19,000 |
7.0 |
% |
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Asia Pacific Total |
229,000 |
80.9 |
% |
214,000 |
78.4 |
% |
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|
54,000 |
19.1 |
% |
59,000 |
21.6 |
% |
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283,000 |
100.0 |
% |
273,000 |
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. | ||||||||||||||||||
(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/20240206053693/en/
Investor contact:
Investor Relations
(801) 954-7201
investor.relations@usanainc.com
Media contact:
Public Relations
(801) 954-7280
Source: