Nature's Sunshine Products Reports Second Quarter Financial Results, and Declares Special One-Time Cash Dividend, Regular

Nature's Sunshine Products Reports Second Quarter Financial Results, and
Declares Special One-Time Cash Dividend, Regular Quarterly Cash Dividend and
$10 Million Share Repurchase Program

LEHI, Utah, Aug. 8, 2013 (GLOBE NEWSWIRE) -- Nature's Sunshine Products, Inc.
(Nasdaq:NATR), a leading natural health and wellness company engaged in the
manufacture and direct selling of nutritional and personal care products,
today reported its consolidated financial results for the second quarter, and
declared a special one-time cash dividend of $1.50 per share, a regular
quarterly cash dividend of $0.10 per share and a $10 million share repurchase
program.

"While sales growth was modestly positive for the quarter, significant
progress was made in several key areas," commented Gregory L. Probert,
Chairman and Chief Executive Officer. "Sales increased year-over-year for the
third consecutive quarter in NSP Russia, Central and Eastern Europe and also
grew for the second consecutive quarter in the United States. We are
particularly pleased that NSP Mexico sales improved year-over year for the
first time since 2011. Our substantial investments in sales and marketing
personnel, training, new products and sales and incentive programs will
negatively impact near-term operating income margin but should generate growth
and drive profitability in all of our markets over time. We will continue to
evaluate the growth and profitability potential of each of our markets, and
allocate our resources and prioritize our investment in order to increase the
Company's overall operating income margin."

He continued, "The special one-time cash dividend, in addition to the regular
quarterly dividend, and the share repurchase program are due to our strong
cash flow, our commitment to return excess capital to shareholders, and our
confidence in the Company's long-term growth prospects."

For the Second Quarter of 2013:

  oNet sales were $93.7 million, compared with $93.0 million in the same
    quarter a year ago, an increase of 0.7 percent, and net sales increased
    1.4 percent in local currencies.
    
  oAs of June 30, 2013 and 2012, total active Managers worldwide were 17,100
    on each date, while total active Distributors and customers worldwide were
    331,000 and 337,600, respectively.
    
  oOperating income was $7.8 million, compared with $10.3 million in the same
    quarter a year ago, a decrease of 24.2 percent. The $2.5 million decrease
    in operating income was primarily due to a $2.2 million increase in
    selling, general and administrative expenses attributable to investment in
    growth initiatives.
    
  oAdjusted EBITDA, defined here as net income before taxes, depreciation and
    amortization, and other income, and adjusted to exclude share-based
    compensation expense was $9.7 million, compared with $11.9 million in the
    same quarter a year ago, a decrease of 18.8 percent.
    
  oNet income was $6.1 million, compared with $7.3 million in the same
    quarter a year ago, a decrease of 16.9 percent.
    
  oBasic and diluted net income per share was $0.38, compared to $0.47 and
    $0.46, respectively, for the same quarter a year ago.
    
  oCash and cash equivalents of $87.3 million were a record high, up from
    $79.2 million at December 31, 2012.
    
  oAs of June 30, 2013, shareholders' equity was $122.8 million, compared to
    $115.6 million as of December 31, 2012, an increase of 6.2
    percent.Including dividends paid in the first six months of the year, the
    increase in shareholder equity was 7.4 percent.

NSP Americas, Asia Pacific and Europe Results for the Second Quarter:

  oNet sales were $53.4 million, compared with $53.5 million in the same
    quarter a year ago, a decrease of 0.2 percent. In local currencies, net
    sales increased by 0.7 percent compared to the same quarter a year ago,
    reflecting higher net sales in the United States, Mexico and Venezuela
    partially offset by lower net sales in Japan. In the United States, net
    sales increased year-over-year for the second consecutive quarter. In
    Mexico, net sales increased year-over-year for the first time since 2011.
    We are driving growth through investments in sales and marketing
    personnel, training, new products, and sales and incentive programs.
    
  oActive Managers within NSP Americas, Asia Pacific and Europe totaled
    approximately 9,000 and 9,200 at June 30, 2013 and 2012, respectively.
    Active Distributors and customers within NSP Americas, Asia Pacific and
    Europe totaled approximately 155,400 and 164,900 at June 30, 2013 and
    2012, respectively. The number of total Distributors and customers
    decreased due to lower recruiting in several key markets, which we are
    addressing through the investments described above.
    
  oContribution margin, defined as net sales less cost of sales and volume
    incentive expense, was $22.3 million, compared with $21.9 million in the
    same quarter a year ago, an increase of 2.1 percent primarily as a result
    of sales mix.

NSP Russia, Central and Eastern Europe Results for the Second Quarter:

  oNet sales were $15.0 million, compared with $13.2 million in the same
    quarter a year ago, an increase of 13.4 percent. Net sales increased
    year-over-year for the third consecutive quarter as a result of improved
    recruiting, Distributor leadership engagement, Distributor recognition,
    promotion and training, and the enhanced focus afforded by the corporate
    organizational realignment during 2012.
    
  oActive Managers within NSP Russia, Central and Eastern Europe totaled
    approximately 5,000 and 4,700 at June 30, 2013 and 2012, respectively.
    Active Distributors and customers within NSP Russia, Central and Eastern
    Europe totaled approximately 120,900 and 117,800 at June 30, 2013 and
    2012, respectively.
    
  oContribution margin was $5.5 million, compared with $5.0 million in the
    same quarter a year ago, an increase of 10.0 percent primarily as a result
    of higher net sales.
    

Synergy WorldWide Results for the Second Quarter:

  oNet sales were $25.3 million, compared with $26.2 million in the same
    quarter a year ago, a decrease of 3.7 percent. In local currencies, net
    sales decreased by 3.2 percent compared to the same quarter a year ago
    driven by lower net sales in Japan, North America and South Korea
    partially offset by higher net sales in Europe. The decrease in local
    currency net sales is primarily a result of decreased recruiting activity
    and a change in product focus. In addition, key Distributor leaders had
    diluted their focus on the South Korean market as they expanded their
    businesses in our other Asian markets. Programs have been implemented with
    the aim of restoring recruiting activity.
    
  oActive Managers within Synergy WorldWide totaled approximately 3,100 and
    3,200 at June 30, 2013 and 2012, respectively. Active Distributors and
    customers within Synergy WorldWide totaled approximately 54,700 and 54,900
    at June 30, 2013 and 2012, respectively.
    
  oContribution margin was $8.7 million, compared to $10.0 million in the
    same quarter a year ago, a decrease of 12.8 percent primarily as a result
    of lower net sales.

Selling, General and Administrative Expenses for the Second Quarter:

  oSelling, general and administrative expenses were $28.7 million, compared
    with $26.5 million in the same quarter a year ago, an increase of 8.2
    percent which was primarily related to the Company's incremental
    investment in sales, marketing, science and product development personnel
    and programs to stimulate sales growth and drive profitability.

Effective Income Tax Rate

The effective income tax rate was 34.9 percent compared with 30.5 percent in
the same quarter a year ago. The current quarter's effective tax rate was
below the U.S. federal statutory tax rate of 35.0 percent, which was primarily
attributed to an increase in tax liabilities associated with uncertain tax
positions, offset by net favorable foreign items. The effective income tax
rate of 30.5 percent for the same quarter a year ago was attributed to a
valuation allowance release related to the utilization of foreign tax credits
in addition to net favorable foreign items.

Non-GAAP Financial Measures

The Company has included information which has not been prepared in accordance
with generally accepted accounting principles (GAAP), such as information
concerning adjusted EBITDA, non-GAAP operating income and non-GAAP net income
because management utilizes this information in the evaluation of its
operations and believes that these measures are a useful indicator of the
Company's ability to fund its business. These non-GAAP financial measure
should not be considered as an alternative to, or more meaningful than, U.S.
GAAP net income as an indicator of the Company's operating
performance.Moreover, these non-GAAP financial measures, as presented by the
Company, may not be comparable to similarly titled measures reported by other
companies. 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. The Company has
included a reconciliation of these non-GAAP measures to reported earnings
under GAAP in the attached financial tables.

Declaration of Special One-Time Cash Dividend and Regular Quarterly Cash
Dividend and $10 Million Share Repurchase Program:

The Company's Board of Directors declared a special one-time cash dividend of
$1.50 per share in addition to its recurring quarterly cash dividend of $0.10
per share payable on August 29, 2013 to shareholders of record as of the close
of business on August 19, 2013. The amount of the cash dividends is expected
to be approximately $25.6 million. In addition, the Board of Directors
authorized a $10 million share repurchase program to be implemented over two
years. Such purchases may be made in the open market, through block trades, in
privately negotiated transactions or otherwise. The timing and amount of any
share repurchased will be determined based on the Company's evaluation of
market conditions and other factors and the program may be discontinued or
suspended at any time.

The special one-time cash dividend and share repurchase program is due to the
Company's strong cash flow and its record high quarter-end cash balance of
$87.3 million, and the Board's commitment to return capital to shareholders
and its confidence in the long-term growth prospects of the Company's
business.

The Company will fund the one-time special dividend and share repurchase
program through available cash on hand, future cash flows from operations and
borrowings under its revolving credit facility. The Company retains ample
capital capacity to continue making long-term investments in its sales,
marketing, science and product development initiatives and overall operations,
as well as to pursue strategic opportunities as they may arise.

Conference Call

Nature's Sunshine Products will host a conference call to discuss its second
quarter 2013 results on Friday, August 9, 2013 at 11:00 AM Eastern Time. The
toll-free dial-in number for callers in the U.S. and Canada is1-877-407-0789,
conference ID: 418625. International callers can dial1-201-689-8562,
conference ID: 418625. A replay will be available from August 8, 2013 at 2:00
PM Eastern Time through August 22, 2013 at 11:59 PM Eastern Time
at1-877-870-5176or1-858-384-5517, replay PIN: 418625. The call will also
be webcast live and will be available on the Investing section of Nature's
Sunshine website at www.naturessunshine.comfor 90 days.

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 through a global direct sales force of over 340,000 active
independent Managers, Distributors and customers 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. The
Company has three reportable business segments that are divided based on the
characteristics of their Distributor base, similarities in compensation plans,
as well as the internal organization of NSP's officers and their
responsibilities (NSP Americas, Asia Pacific and Europe; NSP Russia, Central
and Eastern Europe; and Synergy WorldWide). The Company also supports health
and wellness for children around the world through its partnership with the
Little Heroes Foundation.Additional information about the Company can be
obtained at its website, www.natr.com.

Cautionary Statement Regarding Forward-Looking Statements

In addition to historical information, this release contains certain
forward-looking statements, including statements regarding Distributors and
Managers and payment of dividends. Nature's Sunshine may, from time to time,
make written or oral forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Such statements include, but
are not limited to, Nature's Sunshine's beliefs, expectations, hopes, or
intentions regarding future events.Words such as "expects," "intends,"
"believes," "anticipates," "should," "likely," and similar expressions
identify forward-looking statements.All forward-looking statements included
in this release are made as of the date hereof and are based on information
available to the Company as of such date. Nature's Sunshine assumes no
obligation to update any forward-looking statement.Actual results will vary,
and may vary materially, from those anticipated, estimated, projected or
expected for a number of reasons, including, among others: furtherreviewsof
the Company's financial statements by the Company and its Audit Committee;
modification of the Company's accounting practices; foreign business risks;
industry cyclicality; fluctuations in customer demand and order pattern;
changes in pricing and general economic conditions; as well as other risks
detailed in the Company's previous filings with the SEC.

                                                                
NATURE'S SUNSHINE PRODUCTS,INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
                                                                
                                                       June 30,  December 31,
                                                       2013      2012
Assets                                                           
Current assets:                                                  
Cash and cash equivalents                               $ 87,295  $ 79,241
Accounts receivable, net of allowance for doubtful      9,104     9,614
accounts of $671 and $631, respectively
Investments available for sale                          2,018     2,071
Inventories                                             41,674    43,280
Deferred income tax assets                              5,233     5,307
Prepaid expenses and other                              6,378     5,820
Total current assets                                    151,702   145,333
                                                                
Property, plant and equipment, net                      28,155    27,950
Investment securities                                   1,151     1,276
Intangible assets, net                                  928       1,002
Deferred income tax assets                              11,385    11,516
Other assets                                            6,372     6,842
                                                       $ 199,693 $ 193,919
                                                                
Liabilities and Shareholders' Equity                             
Current liabilities:                                             
Accounts payable                                        $ 5,044   $ 6,226
Accrued volume incentives                               19,541    18,130
Accrued liabilities                                     27,702    27,302
Deferred revenue                                        3,410     4,311
Current installments of long-term debt                  3,371     3,350
Income taxes payable                                    2,349     2,071
Total current liabilities                               61,417    61,390
                                                                
Liability related to unrecognized tax benefits          10,797    10,571
Long-term debt                                          858       2,270
Deferred compensation payable                           1,151     1,276
Other liabilities                                       2,698     2,776
Total long-term liabilities                             15,504    16,893
                                                                
Shareholders' equity:                                            
Common stock, no par value; 50,000 shares authorized,
15,962 and 15,810 shares issued and outstanding as of   80,578    77,292
June 30, 2013 and December 31, 2012, respectively
Retained earnings                                       56,656    48,910
Accumulated other comprehensive loss                    (14,462)  (10,566)
Total shareholders' equity                              122,772   115,636
                                                       $ 199,693 $ 193,919
                                                                

                                                           
NATURE'S SUNSHINE PRODUCTS,INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share information)
                                                           
                                                  ThreeMonthsEnded
                                                  June 30,
                                                  2013      2012
                                                           
Net sales revenue                                  $ 93,675  $ 92,991
Cost of sales                                      (22,630)  (22,610)
Gross profit                                       71,045    70,381
                                                           
Operating expenses:                                         
Volume incentives                                  34,525    33,540
Selling, general and administrative                28,709    26,530
Operating income                                   7,811     10,311
Other income, net                                  1,482     165
Income before provision for income taxes           9,293     10,476
Provision for income taxes                         3,241     3,190
Net income                                         $ 6,052   $ 7,286
                                                           
Basic and diluted net income per common share               
                                                           
Basic:                                                      
Net income                                         $ 0.38    $ 0.47
                                                           
Diluted:                                                    
Net income                                         $ 0.38    $ 0.46
                                                           
Weighted average basic common shares outstanding   15,896    15,605
                                                           
Weighted average diluted common shares outstanding 16,112    15,864
                                                           
Dividends declared per common share                $ 0.10    $ 0.05
                                                           

                                                           
NATURE'S SUNSHINE PRODUCTS,INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share information)
                                                           
                                                  SixMonthsEnded
                                                  June 30,
                                                  2013      2012
                                                           
Net sales revenue                                  $ 190,154 $ 185,859
Cost of sales                                      (47,075)  (46,339)
Gross profit                                       143,079   139,520
                                                           
Operating expenses:                                         
Volume incentives                                  69,500    67,121
Selling, general and administrative                58,826    52,914
Operating income                                   14,753    19,485
Other income, net                                  1,812     55
Income before provision for income taxes           16,565    19,540
Provision for income taxes                         5,649     5,026
Net income                                         $ 10,916  $ 14,514
                                                           
Basic and diluted net income per common share               
                                                           
Basic:                                                      
Net income                                         $ 0.69    $ 0.93
                                                           
Diluted:                                                    
Net income                                         $ 0.68    $ 0.91
                                                           
Weighted average basic common shares outstanding   15,860    15,591
                                                           
Weighted average diluted common shares outstanding 16,079    15,953
                                                           
Dividends declared per common share                $ 0.20    $ 0.05
                                                           

                                                                    
NATURE'S SUNSHINE PRODUCTS,INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
                                                                    
                                                            SixMonthsEnded
                                                             June30,
                                                            2013     2012
CASH FLOWS FROM OPERATING ACTIVITIES:                                
Net income                                                   $ 10,916 $ 14,514
Adjustments to reconcile net income to net cash provided by          
operating activities:
Provision for doubtful accounts                              19       19
Depreciation and amortization                                2,181    2,015
Share-based compensation expense                             1,930    1,321
Loss on sale of property and equipment                       25       18
Deferred income taxes                                        183      (7)
Amortization of bond discount                                1        3
Purchase of trading investment securities                    (36)     (37)
Proceeds from sale of trading investment securities          193      180
Realized and unrealized gains on investments                 (33)     (38)
Foreign exchange (gains) losses                              (1,583)  505
Changes in assets and liabilities:                                   
Accounts receivable                                          229      (713)
Inventories                                                  1,163    (1,158)
Prepaid expenses and other current assets                    (642)    (733)
Other assets                                                 103      60
Accounts payable                                             (1,296)  (581)
Accrued volume incentives                                    1,643    220
Accrued liabilities                                          699      (1,196)
Deferred revenue                                             (901)    406
Income taxes payable                                         401      (4,846)
Liability related to unrecognized tax benefits               216      (642)
Deferred compensation payable                                (125)    (83)
Net cash provided by operating activities                    15,286   9,227
CASH FLOWS FROM INVESTING ACTIVITIES:                                
Purchases of property, plant and equipment                   (2,332)  (2,562)
Proceeds from sale of property, plant and equipment          46       22
Proceeds from sale of investments available for sale         —        3,574
Purchase of investments available for sale                   (75)     (178)
Net cash provided by (used in) investing activities          (2,361)  856
CASH FLOWS FROM FINANCING ACTIVITIES:                                
Payments of cash dividends                                   (1,391)  (1,640)
Principal payments of long-term debt                         (3,170)  (780)
Proceeds from the exercise of stock options                  1,356    401
Net cash used in financing activities                        (3,205   (2,019)
Effect of exchange rates on cash and cash equivalents        (1,666)  (680)
Net increase in cash and cash equivalents                    8,054    7,384
Cash and cash equivalents at the beginning of the period     79,241   58,969
Cash and cash equivalents at end of the period               $ 87,295 $ 66,353
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:                    
Cash paid for income taxes                                   $ 5,407  $ 11,132
Cash paid for interest                                       32       68

                                                           

NATURE'S SUNSHINE PRODUCTS,INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(Amounts in thousands)
(Unaudited)
                                                           
                                         Three Months Ended
                                         June 30,
                                         2013               2012
                                                           
Net income                                $ 6,052            $ 7,286
Adjustments:                                                
Depreciation and amortization             1,093              931
Share-based compensation expense          782                685
Other income, net*                        (1,482)            (165)
Taxes                                     3,241              3,190
Adjusted EBITDA                           $ 9,686            $ 11,927
                                                           
                                                           
                                         Six Months Ended
                                         June 30,
                                         2013               2012
                                                           
Net income                                $ 10,916           $ 14,514
Adjustments:                                                
Depreciation and amortization             2,181              2,015
Share-based compensation expense          1,930              1,321
Other income, net*                        (1,812)            (55)
Taxes                                     5,649              5,026
Adjusted EBITDA                           $ 18,864           $ 22,821
                                                           
* Other income, net is primarily comprised of foreign exchange gains (losses),
interest income, and interest expense.
                                                           

Distributor Information

Our revenue is highly dependent upon the number and productivity of our
Managers, Distributors and customers.Growth in sales volume requires an
increase in the productivity and/or growth in the total number of Managers,
Distributors and customers.

The following table provides information concerning the number of total
Managers, Distributors and customers by segment, as of the dates indicated.

Total Managers, Distributors and Customers by Segment as of June 30,
                                                                  
                                  2013                  2012
                                  Distributors Managers Distributors Managers
                                   &Customers           &Customers
                                                                  
NSP Americas, Asia Pacificand     331,500      9,000    372,800      9,200
Europe
NSP Russia, Central and Eastern    254,700      5,000    257,600      4,700
Europe
Synergy WorldWide                  119,900      3,100    116,000      3,200
                                  706,100      17,100   746,400      17,100

"Total Managers" includes independent Managers under our various compensation
plans that have achieved and maintained specified and personal groups sale
volumes as of the date indicated. To maintain Manager status, an individual
must continue to meet certain product sales volume levels. As such, all
Managers are considered to be active Managers.

"Total Distributors and Customers" includes our independent Distributors and
customers who have purchased products directly from the Company for resale
and/or personal consumption during the previous twelve months ended as of the
date indicated. This includes Manager, Distributor and customer accounts that
may have become inactive since such respective dates.

The following table provides information concerning the number of active
Distributors and customers by segment, as of the dates indicated.

Active Distributors and Customers by Segment as of June 30,
                                                    
                                      2013           2012
                                      Distributors& Distributors&
                                       Customers      Customers
                                                    
NSP Americas, Asia Pacificand Europe 155,400        164,900
NSP Russia, Central and Eastern Europe 120,900        117,800
Synergy WorldWide                      54,700         54,900
                                      331,000        337,600

"Active Distributors and Customers" includes our independent Distributors and
customers who have purchased products directly from the Company for resale
and/or personal consumption during the previous three months ended as of the
date indicated. All of our Managers are active.

The following tables provide information concerning the number of new
Managers, Distributors and customers by segment, as of the dates indicated.

New Managers, Distributors and Customers by Segment for the Quarter Ended June
30,
                                                                  
                                 2013                   2012
                                 Distributors  Managers Distributors Managers
                                  & Customers            & Customers
                                                                  
NSP Americas, Asia Pacificand    38,300        1,100    43,800       1,100
Europe
NSP Russia, Central and Eastern   20,500        400      18,100       400
Europe
Synergy WorldWide                 19,400        500      19,400       600
                                 78,200        2,000    81,300       2,100

"New Managers" includes independent Managers under our various compensation
plans that first achieved the rank of Manager during the previous three months
ended as of the date indicated.

"New Distributors and customers" include our independent Distributors and
customers who have made their initial product purchase directly from us for
resale and/or personal consumption during the previous three months ended as
of the date indicated.

New Managers, Distributors and Customers by Segment for the Twelve Months
Ended June 30,
                                                                  
                                2013                   2012
                                Distributors  Managers Distributors  Managers
                                 & Customers            & Customers
                                                                  
NSP Americas, Asia Pacificand   152,300       4,000    178,800       4,500
Europe
NSP Russia, Central and Eastern  82,400        1,600    77,000        1,500
Europe
Synergy WorldWide                74,300        1,700    73,300        1,800
                                309,000       7,300    329,100       7,800

"New Managers" includes independent Managers under our various compensation
plans that first achieved the rank of Manager during the previous twelve
months ended as of the date indicated.

"New Distributors and Customers" include our independent Distributors and
Customers who have made their initial product purchase directly from us for
resale and/or personal consumption during the previous twelve months ended as
of the date indicated.

CONTACT: Steve M. Bunker
         Chief Financial Officer
         Nature's Sunshine Products, Inc.
         Lehi, Utah 84043
         (801) 341-7303
 
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