August 6, 2015
	Date of Report (Date of earliest event reported)
	NU SKIN ENTERPRISES, INC.
	(Exact name of registrant as specified in its charter)
Delaware		001-12421		87-0565309
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification Number)
	75 West Center Street Provo, Utah 84601
	(Address of principal executive offices and zip code)
	(801) 345-1000
	(Registrant's telephone number, including area code)
	N/A
	(Former name or former address, if changed since last report)

The company's regional revenue results for the three-month periods ended June 30 are presented in the following table.

 

		2015				2014				% Change				Constant Currency % Change
Greater China		$	200,136			$	229,869				(13%)				(13%)
North Asia			172,943				195,995				(12%)				(2%)
Americas			83,468				89,911				(7%)				5%
South Asia/Pacific			68,023				81,653				(17%)				(9%)
EMEA			35,639				52,599				(32%)				(16%)
Total		$	560,209			$	650,027				(14%)				(7%)

The company's regional revenue results for the six-month periods ended June 30 are presented in the following table.

 

		2015				2014				% Change				Constant Currency % Change
Greater China		$	387,503			$	508,798				(24%)				(23%)
North Asia			345,009				391,456				(12%)				(4%)
Americas			163,340				169,820				(4%)				12%
South Asia/Pacific			138,840				152,847				(9%)				(2%)
EMEA			68,849				98,167				(30%)				(13%)
Total		$	1,103,541			$	1,321,088				(16%)				(10%)

 

The company's regional actives and sales leaders statistics are presented in the following table.

		As of June 30, 2015					As of June 30, 2014				% Increase (Decrease)
		Actives		Sales Leaders		Actives			Sales Leaders		Actives		Sales Leaders
Greater China		215,000		25,956		256,000			26,192		(16.0%)		(0.9%)
North Asia		387,000		16,991		393,000			17,186		(1.5%)		(1.1%)
Americas		180,000		7,892		189,000			7,627		(4.8%)		3.5%
South Asia/Pacific		120,000		7,279		120,000			7,450		─		(2.3%)
EMEA		113,000		4,042		121,000			4,468		(6.6%)		(9.5%)
Total		1,015,000		62,160		1,079,000			62,923		(5.9%)		(1.2%)

 

 

 

 

 

 

 

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

"Sales Leaders" are independent distributors, and sales employees and independent marketers in China, who achieve certain qualification requirements.

 

Operational Performance

 

Outlook

 

 

Please Note: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the company's current expectations and beliefs. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws and include, but are not limited to, statements of management's expectations regarding the company's performance, growth, new product introductions, sales force and consumer base; projections regarding revenue, earnings per share, foreign currency fluctuations and other financial items; statements of belief; and statements of assumptions underlying any of the foregoing. In some cases, you can identify these statements by forward-looking words such as "believe," "expect," "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:

·	any failure of current or planned initiatives or products to generate interest among our sales force and customers and generate sponsoring and selling activities on a sustained basis;

·	risk of foreign currency fluctuations and the currency translation impact on the company's business associated with these fluctuations;

·

risk that direct selling laws and regulations in any of our markets, including the United States and China, may be modified, interpreted or enforced in a manner that results in negative changes to our business model or negatively impacts our revenue, sales force or business, including through the interruption of sales activities, loss of licenses, imposition of fines, or any other adverse actions or events;

·	risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support our planned initiatives or launch strategies, and increased risk of inventory write-offs if we over-forecast demand for a product or change our planned initiatives or launch strategies;

·

regulatory 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;

·	adverse publicity related to the company's business, products, industry or any legal actions or complaints by the company's sales force or others;

·	unpredictable economic conditions and events globally;

·	any prospective or retrospective increases in duties on the company's products imported into the company's markets outside of the United States and any adverse results of tax audits or unfavorable changes to tax laws in the company's various markets; and

·	continued competitive pressures in the company's markets.

 

The company's financial performance and the forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the company with the Securities and Exchange Commission. The forward-looking statements set forth the company's beliefs as of the date that such information was first provided and the company assumes no duty to update the forward-looking statements contained in this release to reflect any change except as required by law.

 

 

NU SKIN ENTERPRISES, INC.
Consolidated Statements of Income (Unaudited)
For the Second Quarters Ended June 30, 2015 and 2014
(in thousands, except per share amounts)
		2015				2014
Revenue		$	560,209			$	650,027
Cost of sales			110,263				156,010
Gross profit			449,946				494,017
Operating expenses:
Selling expenses			239,449				283,575
General and administrative expenses			138,696				155,705
Total operating expenses			378,145				439,280
Operating income			71,801				54,737
Other income (expense), net			(2,758	)			(21,119	)
Income before provision for income taxes			69,043				33,618
Provision for income taxes			24,386				14,111
Net income		$	44,657			$	19,507
Net income per share:
Basic		$	0.76			$	0.33
Diluted		$	0.75			$	0.32
Weighted average common shares outstanding:
Basic			58,506				59,052
Diluted			59,713				61,118

 

 

-more-

 

 

 

NU SKIN ENTERPRISES, INC.
Consolidated Statements of Income (Unaudited)
For the Six-Month Periods Ended June 30, 2015 and 2014
(in thousands, except per share amounts)
		2015				2014
Revenue		$	1,103,541			$	1,321,088
Cost of sales			215,318				262,654
Gross profit			888,223				1,058,434
Operating expenses:
Selling expenses			473,454				596,676
General and administrative expenses			274,322				305,824
Total operating expenses			747,776				902,500
Operating income			140,447				155,934
Other income (expense), net			(15,026	)			(38,627	)
Income before provision for income taxes			125,421				117,307
Provision for income taxes			44,482				42,946
Net income		$	80,939			$	74,361
Net income per share:
Basic		$	1.38			$	1.26
Diluted		$	1.35			$	1.22
Weighted average common shares outstanding:
Basic			58,747				58,961
Diluted			59,994				61,177

 

 

 

 

 

 

NU SKIN ENTERPRISES, INC.
Consolidated Balance Sheets (Unaudited)
(in thousands)
		June 30, 2015				December 31, 2014
ASSETS
Current assets:
Cash and cash equivalents		$	292,414			$	288,415
Current investments			11,518				11,793
Accounts receivable			43,543				35,834
Inventories, net			305,027				338,491
Prepaid expenses and other			155,205				160,134
			807,707				834,667
Property and equipment, net			473,216				464,783
Goodwill			112,446				112,446
Other intangible assets, net			70,900				75,062
Other assets			138,351				127,476
Total assets		$	1,602,620			$	1,614,434
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable		$	39,464			$	34,712
Accrued expenses			306,319				300,847
Current portion of long-term debt			74,966				82,770
			420,749				418,329
Long-term debt			177,178				164,567
Other liabilities			100,808				89,100
Total liabilities			698,735				671,996
Stockholders' equity:
Class A common stock			91				91
Additional paid-in capital			418,243				414,394
Treasury stock, at cost			(933,040	)			(862,608	)
Accumulated other comprehensive loss			(63,251	)			(51,521	)
Retained earnings			1,481,842				1,442,082
			903,885				942,438
Total liabilities and stockholders' equity		$	1,602,620			$	1,614,434