Nature’s Sunshine Reports First Quarter 2022 Results

LEHI, Utah, May 05, 2022 (GLOBE NEWSWIRE) — Nature’s Sunshine Products, Inc. (Nasdaq: NATR) (Nature’s Sunshine), a number one pure well being and wellness firm of high-quality natural and dietary merchandise, reported monetary outcomes for the primary quarter ended March 31, 2022.

First Quarter 2022 Financial Summary vs. Same Year-Ago Quarter

• Net gross sales elevated 8% to 1 / 4 document $110.5 million in comparison with $102.4 million.
• GAAP web earnings (loss) was $(2.7) million, or $(0.15) per diluted share, in comparison with $4.2 million, or $0.20 per diluted share.
• Adjusted EBITDA decreased to $8.2 million in comparison with $11.6 million.

Management Commentary

Selling, normal and administrative bills within the first quarter had been $40.6 million in comparison with $33.6 million within the yr‐in the past quarter. The improve was primarily attributable to greater prices related to incremental variable service charges in China from web gross sales progress, the implementation of enterprise transformation and gross sales progress initiatives in different markets, and a rise in deliberate occasions and travel-related prices. As a share of web gross sales, SG&A bills had been 36.8% for the primary quarter of 2022 in comparison with 32.8% within the year-ago quarter.

Operating earnings within the first quarter of 2022 was $1.3 million, or 1.2% of web gross sales, in comparison with $7.6 million, or 7.5% of web gross sales, within the year-ago quarter.

Other loss, web, within the first quarter of 2022 was a lack of $(0.3) million in comparison with a lack of $(1.9) million within the year-ago quarter. Other loss, web, primarily consists of overseas change positive factors (losses) on account of web modifications in foreign currency echange primarily in Asia, Europe and Latin America. The provision for earnings taxes was $3.7 million within the first quarter of 2022 in comparison with $1.6 million for the year-ago quarter.

GAAP web earnings (loss) attributable to widespread shareholders was a lack of $(3.0) million, or a lack of $(0.15) per diluted widespread share, in comparison with earnings of $4.0 million, or $0.20 per diluted widespread share, within the year-ago quarter. Net earnings attributable to NSP China elevated to $1.3 million, or $0.07 per diluted widespread share, for the primary quarter of 2022, in comparison with $0.7 million, or $0.03 per diluted widespread share, for the year-ago quarter.

Non-GAAP web earnings (loss) attributable to widespread shareholders was a lack of $(0.6) million, or a lack of $(0.03) per diluted widespread share, in comparison with earnings of $4.1 million, or $0.21 per diluted widespread share, within the year-ago quarter. Non-GAAP web earnings (loss), which is a non-GAAP monetary measure, is outlined right here as web earnings (loss) from persevering with operations earlier than less-frequent objects together with, amongst different issues, value-added-tax (VAT) refunds. A reconciliation of Non-GAAP web earnings (loss) to GAAP web earnings (loss) is supplied within the hooked up monetary tables.

Adjusted EBITDA decreased to $8.2 million in comparison with $11.6 million within the year-ago quarter. This lower was pushed primarily by the aforementioned lower in gross margins and improve in promoting, normal and administrative bills. Adjusted EBITDA, which is a non-GAAP monetary measure, is outlined right here as web earnings (loss) from persevering with operations earlier than taxes, depreciation, amortization, and different earnings/loss adjusted to exclude share-based compensation expense and sure famous changes. A reconciliation of web earnings (loss) to Adjusted EBITDA is supplied within the hooked up monetary tables.

Balance Sheet and Cash Flow

Net money utilized in working actions was $7.9 million for the three months ended March 31, 2022, in comparison with $2.7 million supplied within the year-ago quarter. Capital expenditures throughout the three months ended March 31, 2022 totaled $1.5 million in comparison with $1.0 million within the year-ago quarter. During the three months ended March 31, 2022, the Company repurchased 451,000 shares at a complete price of $8.0 million. As of March 31, 2022, the Company had money and money equivalents of $66.5 million and $2.1 million of debt.

Conference Call

The Company will maintain a convention name immediately at 5:00 p.m. Eastern time to debate its first quarter 2022 outcomes.

Date: Thursday March 5, 2022
Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)
Toll-free dial-in quantity: 1-800-768-5121
International dial-in quantity: 1-312-429-0440
Conference ID: 22017486

Please name the convention phone quantity 5-10 minutes previous to the beginning time. An operator will register your title and group. If you’ve got any problem connecting with the convention name, please contact Gateway Group at 1-949-574-3860.

The convention name might be broadcast reside and accessible for replay right here.

A replay of the convention name might be accessible after 8:00 p.m. Eastern time on the identical day via May 19, 2022.

Toll-free replay quantity: 1-844-512-2921
International replay quantity: 1-412-317-6671
Replay ID: 22017486

About Nature’s Sunshine Products

Nature’s Sunshine Products (Nasdaq: NATR), a number one pure well being and wellness firm, markets and distributes dietary and private care merchandise in additional than 40 nations. Nature’s Sunshine manufactures most of its merchandise via its personal state-of-the-art services to make sure its merchandise proceed to set the usual for the very best high quality, security and efficacy available on the market immediately. Additional details about the corporate may be obtained at its web site, www.naturessunshine.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press launch comprises forward-looking statements relating to the Company’s future enterprise expectations, that are topic to the secure harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements could embody, however usually are not restricted to, statements regarding the Company’s goals, plans, methods and monetary outcomes. All statements (apart from statements of historic truth) that tackle actions, occasions or developments that the Company intends, expects, initiatives, believes or anticipates will or could happen sooner or later are forward-looking statements. These statements are sometimes characterised by terminology comparable to “believe,” “hope,” “may,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy” and comparable expressions, and are based mostly on assumptions and assessments made by administration in mild of their expertise and their notion of historic tendencies, present circumstances, anticipated future developments and different components they imagine to be acceptable. Forward-looking statements usually are not ensures of future efficiency and are topic to dangers and uncertainties, together with the next:

• in depth authorities rules to which the Company’s merchandise, enterprise practices and manufacturing actions are topic;
• registration of merchandise on the market in overseas markets, or problem or elevated price of importing merchandise into overseas markets;
• authorized challenges to the Company’s direct promoting program or to the classification of its impartial consultants;
• legal guidelines and rules relating to direct promoting could prohibit or prohibit our means to promote our merchandise in some markets or require us to make modifications to our enterprise mannequin in some markets;
• liabilities and obligations arising from improper exercise by the Company’s impartial consultants;
• product legal responsibility claims;
• affect of anti-bribery legal guidelines, together with the U.S. Foreign Corrupt Practices Act;
• the Company’s means to draw and retain impartial consultants;
• the lack of a number of key impartial consultants who’ve a major gross sales community;
• the Company’s three way partnership for operations in China with Fosun Industrial Co., Ltd.;
• the impact of fluctuating overseas change charges;
• failure of the Company’s impartial consultants to adjust to promoting legal guidelines;
• modifications to the Company’s impartial consultants compensation plans;
• geopolitical points and conflicts;
• hostile results brought on by the continued coronavirus pandemic;
• unfavourable penalties ensuing from troublesome financial circumstances, together with the provision of liquidity or the willingness of the Company’s clients to buy merchandise;
• dangers related to the manufacturing of the Company’s merchandise;
• provide chain disruptions, manufacturing interruptions or delays, or the failure to precisely forecast buyer demand;
• failure to well timed and successfully acquire shipments of merchandise from our producers and ship merchandise to our impartial consultants and clients;
• world-wide slowdowns and delays associated to produce chain, ingredient shortages and logistical challenges;
• uncertainties regarding the applying of switch pricing, duties, value-added taxes, and different tax rules, and modifications thereto;
• modifications in tax legal guidelines, treaties or rules, or their interpretation;
• cybersecurity threats and publicity to knowledge loss;
• the storage, processing, and use of information, a few of which comprise private data, are topic to complicated and evolving privateness and knowledge safety legal guidelines and rules;
• reliance on data know-how infrastructure; and
• the sufficiency of emblems and different mental property rights.

These and different dangers and uncertainties that might trigger precise outcomes to vary from predicted outcomes are extra totally detailed below the caption “Risk Factors” in our experiences filed with the Securities and Exchange Commission, together with our Annual Report on Form 10-Okay and Quarterly Reports filed on Form 10-Q.

All forward-looking statements communicate solely as of the date of this press launch and are expressly certified of their entirety by the cautionary statements included in or included by reference into this press launch. Except as is required by legislation, the Company expressly disclaims any obligation to publicly launch any revisions to forward-looking statements to mirror occasions after the date of this press launch.

Non-GAAP Financial Measures

We have included data which has not been ready in accordance with usually accepted accounting rules (GAAP), comparable to data regarding non-GAAP web earnings (loss), Adjusted EBITDA and web gross sales excluding the affect of overseas forex change fluctuations.

We make the most of the non-GAAP measures of non-GAAP web earnings (loss) and Adjusted EBITDA within the analysis of our operations and imagine that these measures are helpful indicators of our means to fund our enterprise. These non-GAAP monetary measures shouldn’t be thought of as a substitute for, or extra significant than, U.S. GAAP web earnings (loss) as an indicator of our working efficiency.

Other corporations could use the identical or equally named measures, however exclude completely different objects, which can not present buyers with a comparable view of Nature’s Sunshine Products’ efficiency in relation to different corporations. We have included a reconciliation of web earnings to Adjusted EBITDA, probably the most comparable GAAP measure. We have additionally included a reconciliation of GAAP web earnings (loss) to Non-GAAP web earnings (loss) and Non-GAAP Adjusted EPS, within the hooked up monetary tables.

Net gross sales in native forex removes, from web gross sales in U.S. {dollars}, the affect of modifications in change charges between the U.S. greenback and the practical currencies of our overseas subsidiaries. This is achieved by translating the present interval web gross sales into U.S. {dollars} utilizing the identical overseas forex change charges that had been used to translate the online gross sales for the earlier comparable interval.

We imagine presenting the affect of overseas forex fluctuations is helpful to buyers as a result of it permits a extra significant comparability of web gross sales of our overseas operations from interval to interval. Net gross sales excluding the affect of overseas forex fluctuations shouldn’t be thought of in isolation or as a substitute for web gross sales in U.S. greenback measures that mirror present interval change charges, or to different monetary measures calculated and offered in accordance with U.S. GAAP.

Investor Relations:

Gateway Group, Inc.
Cody Slach
1-949-574-3860
NATR@gatewayir.com 

* Other loss, web is primarily comprised of overseas change (positive factors) losses, curiosity earnings, and curiosity expense.
** As a results of the battle between Russia and Ukraine, the Company has recorded a non-cash reserve above and past standard working ranges based mostly on its estimates of precise future stock consumption and working outcomes.