0000275053false00002750532022-08-092022-08-09
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 7, 2023
NATURE’S SUNSHINE PRODUCTS, INC.
(Exact name of registrant specified in its charter)
| | | | | | | | | | | | | | |
| Utah | | 001-34483 | | 87-0327982 |
(State or other jurisdiction of
incorporation) | | (Commission File Number) | | (I.R.S. Employer Identification No.) |
2901 West Bluegrass Blvd., Suite 100 Lehi, Utah 84043
(Address of principal executive offices and zip code)
Registrant’s telephone, including area code: (801) 341-7900
N/A
(Former name and former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
| | | | | | | | |
| Title of each Class | Trading Symbol | Name of each exchange on which registered |
| Common Stock, no par value | NATR | Nasdaq Capital Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§203.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐
Item 2.02 Results of Operations and Financial Condition.
On November 7, 2023, Nature’s Sunshine Products, Inc. (the “Company”) issued a press release announcing financial results for the third quarter ended September 30, 2023. A copy of the Company’s press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
The information furnished pursuant to this Item 2.02 and the exhibit hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and shall not be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such filing.
The press release furnished herewith makes reference to non-GAAP financial information, which the Company's management believes assists management and investors in evaluating and comparing period-to-period results in a more meaningful and consistent manner. A reconciliation of GAAP to non-GAAP results is provided in the press release.
Item 9.01 Financial Statements and Exhibits
| | | | | | | | |
| | |
| Item No. | | Exhibit |
| 99.1 | | |
| 104 | | Cover Page Interactive Data File (embedded with the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| | | | | | | | |
| | NATURE’S SUNSHINE PRODUCTS, INC. |
| | | |
| Dated: November 7, 2023 | By: | /s/ Nathan G. Brower |
| | | Nathan G. Brower, Executive Vice President, General Counsel and Corporate Secretary |
Nature's Sunshine Reports Strong Third Quarter 2023 Results
-GAAP Net Income Increased Significantly to $3.1 Million With a 50% Increase in Adjusted EBITDA to $10.3 Million-
LEHI, Utah – November 7, 2023 – Nature’s Sunshine Products, Inc. (Nasdaq: NATR) (Nature’s Sunshine), a leading natural health and wellness company of high-quality herbal and nutritional products, reported financial results for the third quarter ended September 30, 2023.
Third Quarter 2023 Financial Summary vs. Same Year-Ago Quarter
•Net sales were up 6% to $111.2 million compared to $104.5 million (up 7% in constant currency).
•Gross margin increased 150 basis points to 73.1% compared to 71.6%.
•GAAP net income attributable to common shareholders up significantly to $2.8 million, or $0.15 per diluted common share, compared to $0.1 million, or $0.00 per diluted common share.
•Adjusted EBITDA up 50% to $10.3 million compared to $6.8 million.
Management Commentary
"Nature’s Sunshine delivered another strong quarter, with double-digit growth in Asia/Pacific and North America,” said CEO Terrence Moorehead. “APAC saw strong order growth with a 12% increase in local currency sales, while the North America business continued to respond well to our digital investments and improved field activation, delivering 11% growth for the quarter, the strongest growth in many years.
“We’re also beginning to see the results of our gross margin initiatives which drove a 150-basis point improvement in gross margin in the third quarter. Since the first quarter of this year, gross margin has improved from 70.8% to 73.1% in the third quarter of 2023.
“These results demonstrate the strong underlying fundamentals of our business. Our continued above-market growth and aggressive cost initiatives combined to deliver a 50%+ increase in EBITDA in Q3 to $10.3 million. We are excited about our continued progress and the opportunities for further growth and profitability as we move forward.”
Third Quarter 2023 Financial Results
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Net Sales by Operating Segment (Amounts in Thousands) |
| | Three Months Ended
September 30, 2023 | | Three Months Ended
September 30, 2022 | | Percent
Change | | Impact of
Currency
Exchange | | Percent
Change
Excluding
Impact of
Currency |
| Asia | $ | 52,218 | | | $ | 47,878 | | | 9.1 | % | | $ | (1,578) | | | 12.4 | % |
| Europe | 18,769 | | | 19,328 | | | (2.9) | | | 692 | | | (6.5) | |
| North America | 34,792 | | | 31,504 | | | 10.4 | | | (71) | | | 10.7 | |
| Latin America and Other | 5,423 | | | 5,796 | | | (6.4) | | | 237 | | | (10.5) | |
| | $ | 111,202 | | | $ | 104,506 | | | 6.4 | % | | $ | (720) | | | 7.1 | % |
Net sales in the third quarter increased 6% to $111.2 million compared to $104.5 million in the same year-ago quarter. Excluding the impact from foreign exchange rates, net sales in the third quarter of 2023 increased 7.1% compared to the year-ago quarter.
Gross profit margin in the third quarter increased 150 basis points to 73.1% compared to 71.6% in the year-ago quarter. The increase was driven by improvements in market mix, price increases in various markets, and
contribution margin improvement initiatives, partially offset by increases related to inflation and unfavorable foreign currency exchange in the third quarter of 2023.
Volume incentives as a percentage of net sales were 30.7% compared to 31.6% in the year-ago quarter. The decrease was primarily due to changes in market mix.
Selling, general and administrative expenses ("SG&A") in the third quarter were $41.3 million compared to $36.8 million in the year‐ago quarter. The increase was driven primarily by increases in service fees in China, compensation, variable costs related to sales growth, and investments to drive digital growth and strategic initiatives. As a percentage of net sales, SG&A expenses were 37.1% for the third quarter of 2023 compared to 35.2% in the year-ago quarter.
Operating income in the third quarter increased to $5.8 million, or 5.2% of net sales, compared to $5.0 million, or 4.8% of net sales, in the year-ago quarter.
Other loss, net, in the third quarter of 2023 was a loss of $0.9 million compared to a loss of $2.3 million in the third quarter of 2022. Other loss, net, primarily consists of foreign exchange losses as a result of net changes in foreign currencies, mostly in Asia. The provision for income taxes was $1.8 million in the third quarter of 2023 compared to $2.5 million for the year-ago quarter.
GAAP net income attributable to common shareholders increased to $2.8 million, or $0.15 per diluted common share, compared to $0.1 million, or $0.00 per diluted common share, in the third quarter of 2022. Net income attributable to NSP China increased to $1.6 million, or $0.08 per diluted common share, for the third quarter of 2023, compared to $0.6 million, or $0.03 per diluted common share, for the third quarter of 2022.
Adjusted EBITDA in the third quarter increased 50% to $10.3 million compared to $6.8 million in the prior year quarter. The increase was driven primarily by the aforementioned increase in operating income. Adjusted EBITDA, which is a non-GAAP financial measure, is defined here as net income (loss) from continuing operations before taxes, depreciation, amortization, and other income (loss) adjusted to exclude share-based compensation expense and certain noted adjustments. A reconciliation of net income (loss) to Adjusted EBITDA is provided in the attached financial tables.
Balance Sheet and Cash Flow
Net cash provided by operating activities was $31.6 million for the nine months ended September 30, 2023, compared to $2.9 million used in the prior year period. Capital expenditures during the nine months ended September 30, 2023 totaled $9.2 million compared to $4.7 million in the comparable period of 2022. During the nine months ended September 30, 2023, the Company repurchased 180,000 shares at a total cost of $2.2 million or $12.35 per share. As of September 30, 2023, the Company had cash and cash equivalents of $76.0 million and $0.2 million of debt.
Outlook
The Company expects full year 2023 net sales to range between $443 - $451 million, but now expects adjusted EBITDA to range between $37 - $40 million, compared to the original expected range of $34 - $38 million.
Conference Call
The Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its third quarter of 2023 results.
Date: Tuesday, November 7, 2023
Time: 5:00 p.m. Eastern time (3:00 p.m. Mountain time)
Toll-free dial-in number: 1-844-826-3033
International dial-in number: 1-412-317-5185
Conference ID: 10182507
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 1-949-574-3860.
The conference call will be broadcast live and available for replay here and via the Events section of the Nature’s Sunshine website here.
A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through November 21, 2023.
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 10182507
About Nature’s Sunshine Products
Nature’s Sunshine Products (Nasdaq: NATR), a leading natural health and wellness company, markets and distributes nutritional and personal care products in more than 40 countries. Nature’s Sunshine manufactures most of its products through its own state-of-the-art facilities to ensure its products continue to set the standard for the highest quality, safety and efficacy on the market today. Additional information about the company can be obtained at its website, www.naturessunshine.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements regarding the Company’s future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our objectives, plans, strategies and financial results, including expected improvements in gross profit and gross margin. All statements (other than statements of historical fact) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. These statements are often characterized by terminology such as “believe,” “hope,” “may,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy” and similar expressions, and are based on assumptions and assessments made in light of our experience and perception of historical trends, current conditions, expected future developments and other factors we believe to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, including the following:
•extensive government regulations to which the Company’s products, business practices and manufacturing activities are subject;
•registration of products for sale in foreign markets, or difficulty or increased cost of importing products into foreign markets;
•legal challenges to the Company’s direct selling program or to the classification of its independent consultants;
•laws and regulations regarding direct selling may prohibit or restrict our ability to sell our products in some markets or require us to make changes to our business model in some markets;
•liabilities and obligations arising from improper activity by the Company’s independent consultants;
•product liability claims;
•impact of anti-bribery laws, including the U.S. Foreign Corrupt Practices Act;
•the Company’s ability to attract and retain independent consultants;
•the loss of one or more key independent consultants who have a significant sales network;
•the Company’s joint venture for operations in China with Fosun Industrial Co., Ltd.;
•the effect of fluctuating foreign exchange rates;
•failure of the Company’s independent consultants to comply with advertising laws;
•changes to the Company’s independent consultants compensation plans;
•geopolitical issues and conflicts;
•adverse effects caused by the ongoing coronavirus pandemic;
•negative consequences resulting from difficult economic conditions, including the availability of liquidity or the willingness of the Company’s customers to purchase products;
•risks associated with the manufacturing of the Company’s products;
•supply chain disruptions, manufacturing interruptions or delays, or the failure to accurately forecast customer demand;
•failure to timely and effectively obtain shipments of products from our manufacturers and deliver products to our independent consultants and customers;
•world-wide slowdowns and delays related to supply chain, ingredient shortages and logistical challenges;
•uncertainties relating to the application of transfer pricing, duties, value-added taxes, and other tax regulations, and changes thereto;
•changes in tax laws, treaties or regulations, or their interpretation;
•failure to maintain an effective system of internal controls over financial reporting;
•cybersecurity threats and exposure to data loss;
•the storage, processing, and use of data, some of which contain personal information, are subject to complex and evolving privacy and data protection laws and regulations;
•reliance on information technology infrastructure; and
•the sufficiency of trademarks and other intellectual property rights.
These and other risks and uncertainties that could cause actual results to differ from predicted results are more fully detailed under the caption “Risk Factors” in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports filed on Form 10-Q.
All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in or incorporated by reference into this press release. Except as is required by law, the Company expressly disclaims any obligation to publicly release any revisions to forward-looking statements to reflect events after the date of this press release.
Non-GAAP Financial Measures
We have included information which has not been prepared in accordance with generally accepted accounting principles (GAAP), such as information concerning non-GAAP net income (loss), Adjusted EBITDA and net sales excluding the impact of foreign currency exchange fluctuations. Non-GAAP net income (loss) is defined here as net income (loss) from continuing operations before less-frequent items including, among other things, value-added-tax (VAT) refunds. A reconciliation of Non-GAAP net income (loss) to GAAP net income (loss) is provided in the attached financial tables.
We utilize the non-GAAP measures of non-GAAP net income (loss) and Adjusted EBITDA in the evaluation of our operations and believe that these measures are useful indicators of our ability to fund our business. These non-GAAP financial measures should not be considered as an alternative to, or more meaningful than, U.S. GAAP net income (loss) as an indicator of our operating performance.
Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of our performance in relation to other companies. We have included a reconciliation of net income to Adjusted EBITDA, the most comparable GAAP measure. We have also included a reconciliation of GAAP net income (loss) to Non-GAAP net income (loss) and Non-GAAP Adjusted EPS, in the attached financial tables.
Net sales excluding the impact of foreign currency exchange fluctuations removes, from net sales in U.S. dollars, the impact of changes in exchange rates between the U.S. dollar and the functional currencies of our foreign subsidiaries. This is accomplished by translating the current period net sales into U.S. dollars using the same foreign currency exchange rates that were used to translate the net sales for the previous comparable period.
We believe presenting the impact of foreign currency fluctuations is useful to investors because it allows a more meaningful comparison of net sales of our foreign operations from period to period. Net sales excluding the impact of foreign currency fluctuations should not be considered in isolation or as an alternative to net sales in U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.
Investor Relations:
Gateway Group, Inc.
Cody Slach
1-949-574-3860
NATR@gateway-grp.com
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share information)
(Unaudited) | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended
September 30, | | Nine Months Ended
September 30, |
| | 2023 | | 2022 | | 2023 | | 2022 |
| Net sales | $ | 111,202 | | | $ | 104,506 | | | $ | 336,384 | | | $ | 319,161 | |
| Cost of sales | 29,964 | | | 29,632 | | | 93,580 | | | 93,563 | |
| Gross profit | 81,238 | | | 74,874 | | | 242,804 | | | 225,598 | |
| | | | | | | |
| Operating expenses: | | | | | | | |
| Volume incentives | 34,118 | | | 33,070 | | | 102,560 | | | 99,241 | |
| Selling, general and administrative | 41,288 | | | 36,792 | | | 127,203 | | | 114,281 | |
| Operating income | 5,832 | | | 5,012 | | | 13,041 | | | 12,076 | |
| Other loss, net | (927) | | | (2,281) | | | (500) | | | (3,037) | |
| Income before provision for income taxes | 4,905 | | | 2,731 | | | 12,541 | | | 9,039 | |
| Provision for income taxes | 1,763 | | | 2,531 | | | 5,469 | | | 10,573 | |
| Net income (loss) | 3,142 | | | 200 | | | 7,072 | | | (1,534) | |
| Net income attributable to noncontrolling interests | 310 | | | 110 | | | 958 | | | 810 | |
| Net income (loss) attributable to common shareholders | $ | 2,832 | | | $ | 90 | | | $ | 6,114 | | | $ | (2,344) | |
| | | | | | | |
| Basic and diluted net income (loss) per common share: | | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Basic earnings (loss) per share attributable to common shareholders | $ | 0.15 | | | $ | — | | | $ | 0.32 | | | $ | (0.12) | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| | | | | | | |
| Diluted earnings (loss) per share attributable to common shareholders | $ | 0.15 | | | $ | — | | | $ | 0.31 | | | $ | (0.12) | |
| | | | | | | |
| Weighted average basic common shares outstanding | 19,133 | | | 19,198 | | | 19,093 | | | 19,384 | |
| Weighted average diluted common shares outstanding | 19,492 | | | 19,482 | | | 19,450 | | | 19,384 | |
| | | | | | | |
| | | | | | | |
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited) | | | | | | | | | | | |
| | September 30,
2023 | | December 31,
2022 |
| Assets | | | |
| Current assets: | | | |
| Cash and cash equivalents | $ | 76,036 | | | $ | 60,032 | |
| Accounts receivable, net of allowance for doubtful accounts of $154 and $120, respectively | 9,491 | | | 14,106 | |
| | | |
| | | |
| Inventories | 66,287 | | | 67,949 | |
| Prepaid expenses and other | 8,409 | | | 7,420 | |
| Total current assets | 160,223 | | | 149,507 | |
| | | |
| Property, plant and equipment, net | 46,291 | | | 46,162 | |
| Operating lease right-of-use assets | 14,109 | | | 16,145 | |
| Investment securities - trading | 692 | | | 702 | |
| | | |
| Deferred income tax assets | 9,495 | | | 6,859 | |
| Other assets | 9,103 | | | 10,403 | |
| Total assets | $ | 239,913 | | | $ | 229,778 | |
| | | |
| Liabilities and Shareholders’ Equity | | | |
| Current liabilities: | | | |
| Accounts payable | $ | 7,238 | | | $ | 6,349 | |
| Accrued volume incentives and service fees | 23,245 | | | 21,830 | |
| Accrued liabilities | 32,096 | | | 25,591 | |
| Deferred revenue | 1,337 | | | 2,255 | |
| | | |
| | | |
| Income taxes payable | 4,675 | | | 4,117 | |
| Current portion of operating lease liabilities | 4,505 | | | 4,266 | |
| Current portion of note payable | 216 | | | 1,174 | |
| Total current liabilities | 73,312 | | | 65,582 | |
| | | |
| Liability related to unrecognized tax benefits | 209 | | | 209 | |
| Long-term portion of operating lease liabilities | 11,318 | | | 13,745 | |
| | | |
| | | |
| Deferred compensation payable | 692 | | | 702 | |
| Deferred income tax liabilities | 1,247 | | | 1,439 | |
| Other liabilities | 1,124 | | | 1,054 | |
| Total liabilities | 87,902 | | | 82,731 | |
| | | |
| | | |
| | | |
| Shareholders’ equity: | | | |
| Common stock, no par value, 50,000 shares authorized, 19,097 and 19,093 shares issued and outstanding, respectively | 122,966 | | | 121,583 | |
| Retained earnings | 40,749 | | | 34,635 | |
| Noncontrolling interest | 5,100 | | | 4,142 | |
| Accumulated other comprehensive loss | (16,804) | | | (13,313) | |
| Total shareholders’ equity | 152,011 | | | 147,047 | |
| Total liabilities and shareholders’ equity | $ | 239,913 | | | $ | 229,778 | |
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited) | | | | | | | | | | | |
| | Nine Months Ended
September 30, |
| | 2023 | | 2022 |
| CASH FLOWS FROM OPERATING ACTIVITIES: | | | |
| Net income (loss) | $ | 7,072 | | | $ | (1,534) | |
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | | | |
| Provision for doubtful accounts | 45 | | | 1,017 | |
| Depreciation and amortization | 8,763 | | | 8,112 | |
| Non-cash lease expense | 3,290 | | | 3,859 | |
| Share-based compensation expense | 3,790 | | | 1,934 | |
| | | |
| Deferred income taxes | (2,986) | | | 5,967 | |
| Purchase of trading investment securities | — | | | (26) | |
| Proceeds from sale of trading investment securities | 76 | | | 102 | |
| Realized and unrealized gains (losses) on investments | (66) | | | 195 | |
| Foreign exchange losses | 687 | | | 2,938 | |
| Changes in assets and liabilities: | | | |
| Accounts receivable | 3,955 | | | (3,233) | |
| Inventories | 423 | | | (10,809) | |
| Prepaid expenses and other current assets | (1,091) | | | (116) | |
| Other assets | 733 | | | 368 | |
| Accounts payable | 917 | | | (1,626) | |
| Accrued volume incentives and service fees | 2,102 | | | (253) | |
| Accrued liabilities | 7,416 | | | (5,172) | |
| Deferred revenue | (877) | | | (2,040) | |
| Lease liabilities | (3,414) | | | (3,692) | |
| Income taxes payable | 803 | | | 1,201 | |
| Liability related to unrecognized tax benefits | — | | | 213 | |
| Deferred compensation payable | (10) | | | (271) | |
| Net cash provided by (used in) operating activities | 31,628 | | | (2,866) | |
| CASH FLOWS FROM INVESTING ACTIVITIES: | | | |
| Purchases of property, plant and equipment | (9,230) | | | (4,730) | |
| | | |
| | | |
| | | |
| Net cash used in investing activities | (9,230) | | | (4,730) | |
| CASH FLOWS FROM FINANCING ACTIVITIES: | | | |
| | | |
| Principal payments of long-term debt | (958) | | | (931) | |
| Proceeds from revolving credit facility | 13,503 | | | 31,538 | |
| Principal payments of revolving credit facility | (13,503) | | | (31,538) | |
| | | |
| Principal payments of related party borrowing | — | | | (300) | |
| | | |
| Payments related to tax withholding for net-share settled equity awards | (179) | | | (1,129) | |
| | | |
| Repurchase of common stock | (2,228) | | | (12,945) | |
| Net cash used in financing activities | (3,365) | | | (15,305) | |
| Effect of exchange rates on cash and cash equivalents | (3,029) | | | (6,299) | |
| Net increase (decrease) in cash and cash equivalents | 16,004 | | | (29,200) | |
| Cash and cash equivalents at the beginning of the period | 60,032 | | | 86,184 | |
| Cash and cash equivalents at the end of the period | $ | 76,036 | | | $ | 56,984 | |
| SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | | | |
| Cash paid for income taxes, net of refunds | $ | 7,460 | | | $ | 3,386 | |
| Cash paid for interest | 124 | | | 195 | |
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA
(Amounts in thousands)
(Unaudited) | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended
September 30, | | Nine Months Ended
September 30, |
| | 2023 | | 2022 | | 2023 | | 2022 |
Net income (loss) | $ | 3,142 | | | $ | 200 | | | $ | 7,072 | | | $ | (1,534) | |
Adjustments: | | | | | | | |
Depreciation and amortization | 3,125 | | | 2,661 | | | 8,763 | | | 8,112 | |
Share-based compensation expense | 1,295 | | | 593 | | | 3,790 | | | 1,934 | |
Other loss, net* | 927 | | | 2,281 | | | 500 | | | 3,037 | |
Provision for income taxes | 1,763 | | | 2,531 | | | 5,469 | | | 10,573 | |
Other adjustments (1) | — | | | (1,430) | | | 5,098 | | | 1,877 | |
Adjusted EBITDA | $ | 10,252 | | | $ | 6,836 | | | $ | 30,692 | | | $ | 23,999 | |
| | | | | | | |
| | | | | | | |
(1) Other adjustments | | | | | | | |
| Impact of Russia/Ukraine war | $ | — | | | $ | (750) | | | $ | — | | | $ | 2,300 | |
| Restructuring and other related expenses | — | | | 130 | | | — | | | 387 | |
Charge related to Japan loss | — | | | — | | | 5,847 | | | — | |
| VAT refunds | — | | | (810) | | | (749) | | | (810) | |
Total adjustments | $ | — | | | $ | (1,430) | | | $ | 5,098 | | | $ | 1,877 | |
* Other loss, net is primarily comprised of foreign exchange (gains) losses, interest income, and interest expense.
NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME (LOSS) TO
NON-GAAP NET INCOME and NON-GAAP ADJUSTED EPS
(Amounts in thousands)
(Unaudited) | | | | | | | | | | | | | | | | | | | | | | | |
| | Three Months Ended
September 30, | | Nine Months Ended
September 30, |
| | 2023 | | 2022 | | 2023 | | 2022 |
Net income (loss) | $ | 3,142 | | | $ | 200 | | | $ | 7,072 | | | $ | (1,534) | |
Adjustments: | | | | | | | |
| Impact of Russia/Ukraine war | — | | | (750) | | | — | | | 2,300 | |
| Restructuring and other related expenses | — | | | 130 | | | — | | | 387 | |
| Charge related to Japan loss | — | | | — | | | 5,847 | | | — | |
| VAT Refund | — | | | (810) | | | (749) | | | (810) | |
| Tax impact of adjustments | — | | | 287 | | | (1,462) | | | (672) | |
| Total adjustments | — | | | (1,143) | | | 3,636 | | | 1,205 | |
| Non-GAAP net income (loss) | $ | 3,142 | | | $ | (943) | | | $ | 10,708 | | | $ | (329) | |
| | | | | | | |
Reported income (loss) attributable to common shareholders | $ | 2,832 | | | $ | 90 | | | $ | 6,114 | | | $ | (2,344) | |
Total adjustments | — | | | (1,143) | | | 3,636 | | | 1,205 | |
Non-GAAP net income (loss) attributable to common shareholders | $ | 2,832 | | | $ | (1,053) | | | $ | 9,750 | | | $ | (1,139) | |
| | | | | | | |
| Basic income (loss) per share, as reported | $ | 0.15 | | | $ | — | | | $ | 0.32 | | | $ | (0.12) | |
Total adjustments, net of tax | — | | | (0.06) | | | 0.19 | | | 0.06 | |
Basic income (loss) per share, as adjusted | $ | 0.15 | | | $ | (0.06) | | | $ | 0.51 | | | $ | (0.06) | |
| | | | | | | |
Diluted income (loss) per share, as reported | $ | 0.15 | | | $ | — | | | $ | 0.31 | | | $ | (0.12) | |
Total adjustments, net of tax | — | | | (0.06) | | | 0.19 | | | 0.06 | |
Diluted income (loss) per share, as adjusted | $ | 0.15 | | | $ | (0.06) | | | $ | 0.50 | | | $ | (0.06) | |
v3.23.3
Cover
|
Aug. 09, 2022 |
| Cover [Abstract] |
|
| Document Type |
8-K
|
| Document Period End Date |
Nov. 07, 2023
|
| Entity Registrant Name |
NATURE’S SUNSHINE PRODUCTS, INC.
|
| Entity Incorporation, State or Country Code |
UT
|
| Entity File Number |
001-34483
|
| Entity Tax Identification Number |
87-0327982
|
| Entity Address, Address Line One |
2901 West Bluegrass Blvd., Suite 100
|
| Entity Address, City or Town |
Lehi
|
| Entity Address, State or Province |
UT
|
| Entity Address, Postal Zip Code |
84043
|
| City Area Code |
801
|
| Local Phone Number |
341-7900
|
| Written Communications |
false
|
| Soliciting Material |
false
|
| Pre-commencement Tender Offer |
false
|
| Pre-commencement Issuer Tender Offer |
false
|
| Title of 12(b) Security |
Common Stock, no par value
|
| Trading Symbol |
NATR
|
| Entity Emerging Growth Company |
false
|
| Entity Central Index Key |
0000275053
|
| Amendment Flag |
false
|
| X |
- DefinitionBoolean flag that is true when the XBRL content amends previously-filed or accepted submission.
| Name: |
dei_AmendmentFlag |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionFor the EDGAR submission types of Form 8-K: the date of the report, the date of the earliest event reported; for the EDGAR submission types of Form N-1A: the filing date; for all other submission types: the end of the reporting or transition period. The format of the date is YYYY-MM-DD.
| Name: |
dei_DocumentPeriodEndDate |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:dateItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe type of document being provided (such as 10-K, 10-Q, 485BPOS, etc). The document type is limited to the same value as the supporting SEC submission type, or the word 'Other'.
| Name: |
dei_DocumentType |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:submissionTypeItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionAddress Line 1 such as Attn, Building Name, Street Name
| Name: |
dei_EntityAddressAddressLine1 |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- Definition
+ References
+ Details
| Name: |
dei_EntityAddressCityOrTown |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCode for the postal or zip code
| Name: |
dei_EntityAddressPostalZipCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionName of the state or province.
| Name: |
dei_EntityAddressStateOrProvince |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:stateOrProvinceItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionA unique 10-digit SEC-issued value to identify entities that have filed disclosures with the SEC. It is commonly abbreviated as CIK. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityCentralIndexKey |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:centralIndexKeyItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionIndicate if registrant meets the emerging growth company criteria. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityEmergingGrowthCompany |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionCommission file number. The field allows up to 17 characters. The prefix may contain 1-3 digits, the sequence number may contain 1-8 digits, the optional suffix may contain 1-4 characters, and the fields are separated with a hyphen.
| Name: |
dei_EntityFileNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:fileNumberItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTwo-character EDGAR code representing the state or country of incorporation.
| Name: |
dei_EntityIncorporationStateCountryCode |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:edgarStateCountryItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe exact name of the entity filing the report as specified in its charter, which is required by forms filed with the SEC. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityRegistrantName |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionThe Tax Identification Number (TIN), also known as an Employer Identification Number (EIN), is a unique 9-digit value assigned by the IRS. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b-2
| Name: |
dei_EntityTaxIdentificationNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:employerIdItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionLocal phone number for entity.
| Name: |
dei_LocalPhoneNumber |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:normalizedStringItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 13e
-Subsection 4c
| Name: |
dei_PreCommencementIssuerTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 14d
-Subsection 2b
| Name: |
dei_PreCommencementTenderOffer |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTitle of a 12(b) registered security. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Number 240
-Section 12
-Subsection b
| Name: |
dei_Security12bTitle |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:securityTitleItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as soliciting material pursuant to Rule 14a-12 under the Exchange Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Exchange Act
-Section 14a
-Number 240
-Subsection 12
| Name: |
dei_SolicitingMaterial |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionTrading symbol of an instrument as listed on an exchange.
| Name: |
dei_TradingSymbol |
| Namespace Prefix: |
dei_ |
| Data Type: |
dei:tradingSymbolItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
| X |
- DefinitionBoolean flag that is true when the Form 8-K filing is intended to satisfy the filing obligation of the registrant as written communications pursuant to Rule 425 under the Securities Act. Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Securities Act
-Number 230
-Section 425
| Name: |
dei_WrittenCommunications |
| Namespace Prefix: |
dei_ |
| Data Type: |
xbrli:booleanItemType |
| Balance Type: |
na |
| Period Type: |
duration |
|
Natures Sunshine Products (NASDAQ:NATR)
Historical Stock Chart
From Mar 2024 to Apr 2024
Natures Sunshine Products (NASDAQ:NATR)
Historical Stock Chart
From Apr 2023 to Apr 2024
