NUS
$57.60
Nu Skin Enterprises
$.22
.38%
Earnings Details
1st Quarter March 2021
Wednesday, May 5, 2021 4:06:00 PM
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Summary

Nu Skin Enterprises Beats

Nu Skin Enterprises (NUS) reported 1st Quarter March 2021 earnings of $0.91 per share on revenue of $677.0 million. The consensus earnings estimate was $0.72 per share on revenue of $634.4 million. The Earnings Whisper number was $0.84 per share. Revenue grew 30.7% on a year-over-year basis.

The company said it expects second quarter earnings of $0.97 to $1.07 per share on revenue of $680.0 million to $705.0 million. The current consensus earnings estimate is $1.02 per share on revenue of $693.95 million for the quarter ending June 30, 2021. The company said it expects 2021 earnings of $4.05 to $4.30 per share on revenue of $2.80 billion to $2.87 billion. The company's previous guidance was earnings of $3.80 to $4.10 per share on revenue of $2.71 billion to $2.81 billion and the current consensus earnings estimate is $3.95 per share on revenue of $2.79 billion for the year ending December 31, 2021.

Nu Skin Enterprises Inc is a direct selling company, which develops and distributes anti-aging personal care products and nutritional supplements that are sold under the Nu Skin and Pharmanex category brands.

Results
Reported Earnings
$0.91
Earnings Whisper
$0.84
Consensus Estimate
$0.72
Reported Revenue
$677.0 Mil
Revenue Estimate
$634.4 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Nu Skin Enterprises Reports Record First-Quarter 2021 Results

PROVO, Utah, May 5, 2021 /PRNewswire/ -- Nu Skin Enterprises, Inc. (NYSE: NUS) today announced record first-quarter 2021 revenue and earnings per share.

Executive Summary
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

Stockholder Value

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:

  • risk that epidemics, including the ongoing COVID-19 pandemic, and other crises could negatively impact our business;
  • adverse publicity related to the company's business, products, industry or any legal actions or complaints by the company's sales force or others;
  • risk that direct selling laws and regulations in any of the company's markets, including the United States and Mainland China, may be modified, interpreted or enforced in a manner that results in negative changes to the company's business model or negatively impacts its revenue, sales force or business, including through the interruption of sales activities, loss of licenses, imposition of fines, or any other adverse actions or events;
  • any failure of current or planned initiatives or products to generate interest among the company's sales force and customers and generate sponsoring and selling activities on a sustained basis;
  • political, legal, tax and regulatory uncertainties associated with operating in international markets, including Mainland China;
  • uncertainty regarding meeting restrictions and other government scrutiny in Mainland China, as well as negative media and consumer sentiment in Mainland China on our business operations and results;
  • risk of foreign-currency fluctuations and the currency translation impact on the company's business associated with these fluctuations;
  • uncertainties regarding the future financial performance of the businesses the company has acquired;
  • risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support planned initiatives or launch strategies, and increased risk of inventory write-offs if the company over-forecasts demand for a product or changes its planned initiatives or launch strategies;
  • regulatory risks associated with the company's products, which could require the company to modify its claims or inhibit its ability to import or continue selling a product in a market if the product is determined to be a medical device or if the company is unable to register the product in a timely manner under applicable regulatory requirements;
  • unpredictable economic conditions and events globally, including trade policies and tariffs;
  • the company's future tax-planning initiatives; any prospective or retrospective increases in duties on the company's products imported into the company's markets outside of the United States; and any adverse results of tax audits or unfavorable changes to tax laws in the company's various markets; and
  • continued competitive pressures in the company's markets.

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.

"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

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

 

NU SKIN ENTERPRISES, INC.

Consolidated Balance Sheets (Unaudited)

(U.S. dollars in thousands)



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

 

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SOURCE Nu Skin Enterprises