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

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

PR Newswire

PROVO, Utah, Oct. 22, 2013

PROVO, Utah, Oct. 22, 2013 /PRNewswire/ --Nu Skin Enterprises, Inc. (NYSE:
NUS) today announced record third-quarter results with revenue of $927.6
million, a 76 percent increase over the prior-year period. Revenue was
negatively impacted 3 percent by foreign currency fluctuations. Earnings per
share for the quarter were $1.80, a 107 percent year-over-year improvement.

Additionally, the company announced that it is significantly increasing its
full-year 2013 revenue guidance to $3.18 billion to $3.21 billion. The new
guidance includes a projected negative currency impact of 4 percent for the
year. The company now expects 2013 earnings to be $5.77 to $5.82 per share.

"We are extremely pleased with our third-quarter results," said Truman Hunt,
president and chief executive officer. "The momentum we have established in
the first half of the year has accelerated as we posted gains throughout the
world, with particularly impressive results in the Greater China and South
Asia/Pacific regions, as well as South Korea. 

"We are delighted to see such a tremendous response to the initial
introduction of our ageLOC TR90 weight management system. We began the
limited-time-offer of the TR90 system in September, starting in the Greater
China and South Asia/Pacific regions and generated approximately $205 million
in limited-time-offer sales in the quarter. We expect this momentum to
continue through the fourth quarter as the rest of our regions participate in
this global limited-time offer."

Regional Results

Greater China. In Greater China, third-quarter revenue increased 240 percent
to $464.6 million, compared to $136.6 million in the prior-year period. The
region's results were positively impacted 9 percent by foreign currency
fluctuations. Regional revenue included $157.9 million from limited-time-offer
(LTO) sales in the third quarter, while the prior year included $20.8 million
in LTO revenue. The sales leader count in the region improved 255 percent,
while the number of actives increased 123 percent compared to the prior year.

North Asia. Third-quarter revenue in North Asia increased 11 percent to $204.7
million, compared to $184.7 million for the same period in 2012. The region's
results were negatively impacted 12 percent by foreign currency fluctuations.
Japan local-currency revenue declined 3 percent while South Korea generated
local-currency revenue growth of 71 percent. The number of sales leaders in
the region was up 15 percent and the number of actives improved 28 percent.

South Asia/Pacific. Revenue in South Asia/Pacific was $127.5 million, a 40
percent improvement compared to the prior year. The region's results included
$45.9 million from LTO sales in the third quarter, while the prior-year
included $29.3 million in LTO revenue. The region's results were negatively
impacted 6 percent by foreign currency fluctuations. The region's
third-quarter sales leader count improved 58 percent and actives increased 19
percent compared to the same period in 2012.

Americas. Revenue in the Americas improved 22 percent over the prior-year
period to $85.7 million. The region's results were negatively impacted 7
percent by foreign currency fluctuations. The number of sales leaders in the
region improved 28 percent and the number of actives increased 8 percent
compared to the prior year.

EMEA. Revenue in the EMEA region increased 4 percent to $45.1 million,
primarily as a result of foreign currency fluctuations. The number of sales
leaders declined 5 percent while actives increased 2 percent, compared to the
prior year.

Operational Performance

The company's operating margin improved to 18.1 percent for the quarter,
compared to 15.7 percent in the prior year, as a result of strong LTO sales.
Gross margin during the quarter was 84.9 percent, 140 basis points above the
prior year, due primarily to the TR90 launch in Greater China and South
Asia/Pacific. Selling expenses, as a percent of revenue, were 49.3 percent in
the third quarter, compared to 44.8 percent in the prior-year period. The
increase was a result of the successful execution of the LTO, driving sales
and selling expenses higher as sales leaders qualified for promotional
incentives and a higher commission level. General and administrative expenses,
as a percent of revenue, were 17.5 percent, a significant improvement from
23.1 percent reported in the prior-year.

The company's income tax rate for the quarter was 34.3 percent compared to
35.2 percent in the prior-year period. The company's cash and short-term
investment position at the end of the quarter was $566 million. Dividend
payments during the quarter were $17.8 million, and the company repurchased
$76 million of its outstanding shares.


"Our optimism is a product of robust sales force growth and our innovative
product portfolio," said Hunt. "Our sales force has built strong consumer
demand for our ageLOC TR90 system, with a very positive initial response to
our product release. We continue to improve our execution as we strategically
develop and launch innovative products, ensuring a vibrant business
opportunity for our sales leaders.

"We have high expectations for our business in the fourth quarter and in 2014
as we continue to execute the rollout of TR90. More than 15,000 people will
join us in Salt Lake City this week for our bi-annual global convention. We
also look forward to sharing our business plan and financial projections for
2014 at our analyst day on Nov. 21." Hunt concluded.

"Given the tremendous quarter, as well as our outlook for the remainder of the
year, we are significantly raising our 2013 guidance," said Ritch Wood, chief
financial officer. "We project the fourth quarter will be our first
billion-dollar quarter, with anticipated revenue of $1.02 to $1.05 billion. We
estimate a negative currency impact of approximately 6 percent in the fourth
quarter, with projected earnings per share of $1.85 to $1.90. This forecast
includes projected sales of TR90 in the fourth quarter of approximately $350

The company's management will host a webcast with the investment community on
Oct. 22, 2013, at 11 a.m. EDT. 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 Nov. 8,

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 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 associated with rapid growth globally, which could strain our
    ability to effectively manage our operations, and result in, among other
    things, product delays or shortages, operating mistakes and errors,
    inadequate customer service, inappropriate claims or promotions by our
    sales force, and governmental inquires and investigations, all of which
    could harm our revenue and ability to generate sustained growth and result
    in unanticipated expenses.
  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;
  orisk of foreign currency fluctuations and the currency translation impact
    on the company's business associated with these fluctuations;
  ounpredictable economic conditions and events globally;
  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;
  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;
  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 Third Quarters Ended September 30, 2013 and 2012
(in thousands, except per share amounts)
                                            2013       2012
 Greater China                       $ 464,605  $ 136,633
 North Asia                          204,714    184,743
  South Asia/Pacific                  127,545    91,124
  Americas                            85,654     70,479
  EMEA                                45,094     43,203
Total revenue                               927,612    526,182
Cost of sales                               139,816    86,768
Gross profit                                787,796    439,414
Operating expenses:
 Selling expenses                    456,975    235,701
 General and administrative expenses 162,546    121,346
Total operating expenses                    619,521    357,047
Operating income                            168,275    82,367
Other income (expense), net                 504        1,239
Income before provision for income taxes    168,779    83,606
Provision for income taxes                  57,879     29,430
Net income                                  $ 110,900  $ 54,176
Net income per share:
 Basic                               $ 1.89     $ 0.91
 Diluted                             $ 1.80     $ 0.87
Weighted average common shares outstanding:
 Basic                               58,661     59,780
 Diluted                             61,508     62,060

Consolidated Statements of Income (Unaudited)
For the Nine-Month Periods Ended September 30, 2013 and 2012
(in thousands, except per share amounts)
                                            2013       2012
 Greater China                       $ 909,457  $ 428,972
 North Asia                          589,664    544,638
  South Asia/Pacific                  280,703    266,789
  Americas                            246,484    208,585
  EMEA                                134,325    132,435
Total revenue                               2,160,633  1,581,419
Cost of sales                               341,134    258,108
Gross profit                                1,819,499  1,323,311
Operating expenses:
 Selling expenses                    1,007,627  705,599
 General and administrative expenses 446,355    365,770
Total operating expenses                    1,453,982  1,071,369
Operating income                            365,517    251,942
Other income (expense), net                 (571)      1,505
Income before provision for income taxes    364,946    253,447
Provision for income taxes                  125,329    91,035
Net income                                  $ 239,617  $ 162,412
Net income per share:
 Basic                               $ 4.09     $ 2.65
 Diluted                             $ 3.91     $ 2.55
Weighted average common shares outstanding:
 Basic                               58,544     61,265
 Diluted                             61,234     63,742

Consolidated Balance Sheets (Unaudited)
(in thousands)
                                         September 30, 2013  December 31, 2012
Current assets:
 Cash and cash equivalents        $     553,499       $    320,025
 Current investments              12,099              13,378
 Accounts receivable              50,506              36,850
 Inventories, net                 254,187             135,874
  Prepaid expenses and other       143,066             93,276
                                         1,013,357           599,403
Property and equipment, net              352,709             229,787
Goodwill                                 112,446             112,446
Other intangible assets, net             85,901              92,518
Other assets                             124,074             118,753
  Total assets             $     1,688,487     $    1,152,907
Current liabilities:
 Accounts payable                 $     67,516        $    47,882
 Accrued expenses                 572,432             233,202
 Current portion of long-term     68,562              39,019
                                         708,510             320,103
Long-term debt                           120,606             154,963
Other liabilities                        116,942             87,229
 Total liabilities                946,058             562,295
Stockholders' equity:
 Class A common stock             91                  91
  Additional paid-in capital       357,701             317,293
 Treasury stock, at cost           (788,128)           (714,853)
  Retained earnings                1,226,629           1,039,903
  Accumulated other comprehensive  (53,864)            (51,822)
                                         742,429             590,612
  Total liabilities and    $     1,688,487     $    1,152,907
stockholders' equity

Actives/Sales Leaders Statistics
                  As of September 30,    As of September 30,  % Increase
                  2013                   2012                 (Decrease)
                  Actives       Sales    Actives     Sales    Actives  Sales
                                Leaders              Leaders           Leaders
Greater China     418,000       57,780   188,000     16,269   122.3%   255.2%
North Asia        430,000       17,994   336,000     15,603   28.0%    15.3%
South             125,000       9,280    105,000     5,880    19.0%    57.8%
Americas          179,000       7,461    166,000     5,831    7.8%     28.0%
EMEA              121,000       4,375    118,000     4,581    2.5%     (4.5%)
Total             1,273,000     96,890   913,000     48,164   39.4%    101.2%
"Actives" are persons who purchased products directly from the company during
the three months ended as of the date indicated.
"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, +1-801-345-2657,, Media, Kara
Schneck, + (801) 345-2116,
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