Nu Skin Enterprises Reports Record First-Quarter Results And Raises 2013 Guidance

   Nu Skin Enterprises Reports Record First-Quarter Results And Raises 2013

PR Newswire

PROVO, Utah, May 2, 2013

PROVO, Utah, May 2, 2013 /PRNewswire/ --Nu Skin Enterprises, Inc. (NYSE: NUS)
today announced record first-quarter results with revenue of $550.1 million, a
19 percent improvement over the prior-year period. Revenue was negatively
impacted 3 percent by foreign currency fluctuations. Earnings per share for
the quarter were $0.90, a 22 percent year-over-year improvement. Additionally,
the company announced that it is increasing its full-year 2013 revenue
guidance by $190 million to be in the $2.51 to $2.54 billion range. The new
guidance includes a projected negative currency impact of 5 percent. The
company now expects 2013 earnings to be in the range of $4.18 to $4.30 per

"We kicked off the year with tremendous momentum, generating 22 percent
local-currency revenue growth this quarter," said Truman Hunt, president and
chief executive officer. "We are pleased with the overall direction of the
business, particularly with trends in the North Asia and Greater China
regions. The first quarter marked the third consecutive quarter of
year-over-year local-currency growth for Japan, while South Korea continues to
be a solid contributor to our success. Greater China continues to be our
fastest-growing region, with each market within the region posting solid
quarterly growth."

Regional Results

North Asia. First-quarter revenue in North Asia was $188.2 million, compared
to $182.2 million for the same period in 2012. The region's results were
negatively impacted 8 percent by foreign currency fluctuations. Japan
local-currency revenue improved 13 percent while South Korea generated
local-currency revenue growth of 9 percent. The number of sales leaders in the
region was up 12 percent while the number of actives improved 8 percent.

Greater China. In Greater China, first-quarter revenue increased 90 percent to
$175.7 million, compared to $92.6 million in the prior-year period. The
region's results were positively impacted 2 percent by foreign currency
fluctuations. Mainland China local-currency revenue grew 141 percent. The
sales leader count in the region improved 91 percent, while the number of
actives increased 73 percent compared to the prior year.

Americas. Revenue in the Americas improved 15 percent to $76.5 million,
compared to $66.3 million in the prior-year period. The region's results were
negatively impacted 3 percent by foreign currency fluctuations. U.S. revenue
grew by 7 percent during the quarter. The number of sales leaders in the
region improved 9 percent while the number of actives decreased 4 percent
compared to the prior year.

South Asia/Pacific. Revenue in South Asia/Pacific was $67.2 million, a 13
percent decline compared to the prior year. Excluding the prior-year's product
launch sales, revenue would have been up 8 percent. The region's results were
not materially impacted by foreign currency fluctuations. The region's
first-quarter sales leaders improved 9 percent while actives increased 8
percent compared to the same period in 2012.

EMEA. Revenue in the EMEA region was $42.4 million, a 3 percent decline over
the prior-year period. The region's results were not materially impacted by
foreign currency fluctuations. Sales leaders and actives increased 1 and 5
percent, respectively, compared to the prior year.

Operational Performance

The company's operating margin was 15.0 percent for the quarter, compared to
15.5 percent in the prior year. The decrease in operating margin was primarily
a result of planned brand-building efforts in Greater China and Japan as well
as increased research and development expenditures. The company projects an
operating margin of 15.8 to 16.1 percent for the year. Gross margin during the
quarter was 83.6 percent, consistent with the prior year. Selling expenses, as
a percent of revenue, were 44.0 percent in the first quarter, compared to 43.8
percent in the prior-year period. General and administrative expenses, as a
percent of revenue, were 24.6 percent, up slightly from 24.3 percent reported
in the prior-year period. Other income (expense), net reflected a gain of $0.1
million compared to a gain of $3.6 million in the prior year. 

The company's income tax rate for the quarter was 34.4 percent compared to
36.5 percent in the prior-year period. The company's cash and short-term
investment position at the end of the quarter was $334.3 million. Dividend
payments during the quarter were $17.5 million, and the company repurchased
$14.6 million of its outstanding shares.


"Given the positive momentum of the business, we are on track to achieve
another record year of revenue and earnings," said Hunt. "Our anti-aging
product portfolio continues to drive strong consumer demand and impressive
growth in our global sales force.

"The ageLOC product platform has become a game-changer for Nu Skin, and we
believe this fall's introduction of the ageLOC weight management system will
be a meaningful growth driver in our business. We are currently training and
preparing our sales force for the limited-time-offer in the second half of the
year, and believe the launch will be the largest in company history," Hunt

"Given the strength of our business, as well as the optimism we have for the
upcoming ageLOC weight management system, we are significantly raising our
2013 guidance," said Ritch Wood, chief financial officer. "Our increased
guidance accounts for a stronger-than-expected currency headwind, which we now
forecast will negatively impact revenue for the year by approximately 5
percent, an increase of 1 to 2 percent from our previous guidance. We project
second-quarter 2013 revenue to be in the $570 to $580 million range with a
negative currency impact of 4 to 5 percent, and earnings per share to be $0.91
to $0.95. For the full year, we anticipate revenue will be in the $2.51 to
$2.54 billion range with earnings per share to be $4.18 to $4.30."

The company's management will host a webcast with the investment community on
May 2, 2013, at 11 a.m. EST. Those wishing to access the webcast, as well as
the financial information presented during the call, can visit the Investor
Relations page on Nu Skin Enterprises' website, An
archive of the webcast will be available at this same URL through May 17,

About Nu Skin Enterprises, Inc.

Nu Skin Enterprises, Inc. demonstrates its tradition of innovation through its
comprehensive anti-aging product portfolio, independent business opportunity
and corporate social responsibility initiatives. The company's scientific
leadership in both skin care and nutrition has established Nu Skin as a
premier anti-aging company. The company's anti-aging products feature the new
ageLOC^® suite of products including the ageLOC^® R^2 nutritional supplement,
ageLOC^® Galvanic Spa System and ageLOC^® Galvanic Body Spa™, as well as the
ageLOC^® Transformation daily skin care system. A global direct selling
company, Nu Skin operates in 53 markets worldwide and is traded on the New
York Stock Exchange under the symbol "NUS." More information is available at

Please Note: This press release, particularly the "Outlook" section, 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, initiatives, strategies and new product
introductions; statements of projections regarding revenue, operating margin,
earnings per share, foreign currency impact 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," "project," "anticipate," "estimate,"
"intend," "plan," "targets," "likely," "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:

  oany failure of current or planned initiatives or products to generate
    interest among distributors and customers and generate sponsoring and
    selling activities on a sustained basis;
  orisks related to accurately predicting, delivering or maintaining
    sufficient quantities of products to support our planned initiatives or
    launch strategies, including possible ingredient supply limitations;
  ochallenging economic conditions globally;
  orisk of foreign currency fluctuations and the currency translation impact
    on the company's business associated with these fluctuations;
  orisks associated with general inquiries and complaints to consumer
    protection agencies in Japan regarding the activities of some
  oregulatory risks associated with the company's products, which could
    require the company to modify its claims or inhibit the company's ability
    to import or continue selling a product in a market if it is determined to
    be a medical device or if it is unable to register the product in a timely
    manner under applicable regulatory requirements;
  ocontinued regulatory scrutiny and investigations in Mainland China, which
    have from time to time in the past, and could in the future, negatively
    impact the company's business, including the interruption of sales
    activities in stores, loss of licenses, and the imposition of fines;
  oadverse publicity related to the company's business, products, industry or
    any legal actions or complaints by distributors or others;
  oany 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
  ocontinued 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.

Consolidated Statements of Income (Unaudited)
For the First Quarters Ended March 31, 2013 and 2012
(in thousands, except per share amounts)
                                    2013                   2012
 North Asia                  $               $       
                                    188,193                182,200
 Greater China               175,706                92,611
  Americas                    76,541                 66,340
  South Asia/Pacific          67,242                 77,321
  EMEA                        42,412                 43,530
Total revenue                       550,094                462,002
Cost of sales                       90,045                 75,756
Gross profit                        460,049                386,246
Operating expenses:
 Selling expenses            241,883                202,535
 General and administrative  135,507                112,048
Total operating expenses            377,390                314,583
Operating income                    82,659                 71,663
Other income (expense), net         112                    3,635
Income before provision for income  82,771                 75,298
Provision for income taxes          28,489                 27,469
Net income                          $              $        
                                    54,282                 47,829
Net income per share:
 Basic                       $            $         
                                    0.93                    0.77
 Diluted                     $            $         
                                    0.90                    0.74
Weighted average common shares
 Basic                       58,352                 62,230
 Diluted                     60,566                 65,017

Consolidated Balance Sheets (Unaudited)
(in thousands)
                                          March 31, 2013     December 31, 2012
Current assets:
 Cash and cash equivalents         $           $       
                                          325,720           320,025
 Current investments               8,534              13,378
 Accounts receivable               43,809             36,850
 Inventories, net                  149,089            135,874
  Prepaid expenses and other        92,151             93,276
                                          619,303            599,403
Property and equipment, net               264,363            229,787
Goodwill                                  112,446            112,446
Other intangible assets, net              89,922             92,518
Other assets                              121,759            118,753
  Total assets              $            $      
                                          1,207,793          1,152,907
Current liabilities:
 Accounts payable                  $          $        
                                          52,255            47,882
 Accrued expenses                  250,583            233,202
 Current portion of long-term debt 56,531             39,019
                                          359,369            320,103
Long-term debt                            138,782            154,963
Other liabilities                         92,939             87,229
 Total liabilities                 591,090            562,295
Stockholders' equity:
 Class A common stock              91                 91
  Additional paid-in capital        319,802            317,293
 Treasury stock, at cost            (724,489)          (714,853)
  Accumulated other comprehensive   (55,372)           (51,822)
  Retained earnings                 1,076,671          1,039,903
                                          616,703            590,612
  Total liabilities and     $            $      
stockholders' equity                      1,207,793          1,152,907


Actives/Sales Leaders Statistics
                  As of March 31, 2013      As of March 31,  % Increase
                                            2012             (Decrease)
                  Actives      Sales    Actives    Sales     Actives  Sales
                               Leaders             Leaders            Leaders
North Asia        361,000      16,682   335,000    14,900    7.8%     12.0%
Greater China     261,000      22,011   151,000    11,551    72.8%    90.6%
Americas          163,000      6,273    170,000    5,776     (4.1%)   8.6%
South             98,000       5,337    91,000     4,911     7.7%     8.7%
EMEA              119,000      4,118    113,000    4,076     5.3%     1.0%
Total             1,002,000    54,421   860,000    41,214    16.5%    32.0%

"Actives" are persons who purchased products directly from the company during
the previous three months.

"Sales Leaders" include our independent distributors who have completed and
who maintain specified sales requirements, and our sales employees and
contractual sales promoters in China, who have completed certain qualification

SOURCE Nu Skin Enterprises, Inc.

Contact: Investors, Scott Pond (801) 345-2657,; Media, Kara
Schneck (801) 345-2116,
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