NU SKIN ENTERPRISES REPORTS RECORD THIRD-QUARTER RESULTS AND RAISES 2013 GUIDANCE
PROVO, Utah — Oct. 22, 2013 — 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.
Outlook
“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 million.”
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, http://ir.nuskin.com. An archive of the webcast will be available at this same URL through Nov. 8, 2013.
【Why Nu Skin Shares Surged】By Brian Pacampara| October 22, 2013 | http://www.fool.com/investing/general/2013/10/22/why-nu-skin-shares-surged.aspx
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of anti-aging products company Nu Skin Enterprises (NYSE: NUS ) popped 13% today after its quarterly results and outlook topped Wall Street expectations.
So what: The stock has skyrocketed in 2013 on better-than-expected growth, and today's third-quarter results -- earnings more than doubled on a revenue spike of 76% -- coupled with upbeat guidance suggest that things aren't slowing. In fact, Nu Skin saw particularly strong sales for its newly launched ageLOC TR90 weight management system, giving investors plenty of good vibes over the stock's trajectory going forward.
Now what: Management now sees full-year EPS of $5.77 to $5.82 on revenue of $3.18 billion to $3.21 billion, well ahead of Wall Street's view of $5.17 and $2.95 billion. "Our sales force has built strong consumer demand for our ageLOC TR90 system, with a very positive initial response to our product release," said CEO Truman Hunt. "We continue to improve our execution as we strategically develop and launch innovative products, ensuring a vibrant business opportunity for our sales leaders." Of course, with Nu Skin shares now up a whopping 200% year to date and trading at a 20-plus price-to-cash flow multiple, much of that momentum might already be baked into the price.
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保持夢想 鎖定目標 堅持信念 積極行動 以身作則
一呼一吸之間，有的人成就了偉大，有的人卻依然在原地踏步。人生長河中，但凡可以沉澱下來的，不是你得到了多少名和利，而是有多少人因你而改變。
“我們也許無法在這個世界上做什麼偉大的事情，可是我們可以帶著偉大的愛做一些小事。” (特蕾莎修女 Mother Teresa 1910-1997)
“即使是最輕微的善意觸碰也能點亮一顆沈寂的心。 善， 能夠改變人們的生命。” (2012年6月12日，翁山蘇姬女士， 在諾貝爾和平獎的致詞中提到)
“我們 NU SKIN 的使命是要在世界各地凝聚一股善的力量：憑藉酬報優渥的事業機會、不斷創新的優質產品、和充實積極的優良文化，賦予人們提高生活品質的力量。” Blake Roney 羅百禮 (Founder of NU SKIN 如新集團創辦人)
NU SKIN 2.0 目標：每天有50萬兒童因 NU SKIN 如新而開心歡笑
失敗不可怕，最可怕是在失敗陰影下看不見陽光。只要有明天，今天就是起跑線。
恭維就像口香糖，能嚼不能咽。不要因為世界的五彩繽紛而迷茫了你選擇的目光。
不要因為旅途的風雨雷電而不願再一次揚帆起航。
不要因為世事的艱辛而忘記風雨兼程。
不要因為別人的哀歎而改變自己的航程。
不要因為別人的拒絕而懷疑自己的選擇。
不要因為安逸的現狀而放棄心中湧動的夢。
“一帆風順的時候不要得意忘形，一波三折的時候也不必灰心喪志。情況好的時候，不能沒有警覺心；壞的時候也不要喪失信心；可能條件一改變，情況就會轉變。”
“偉人所達到並保持著的高處，並不是一飛就到的，而是他們在同伴們都睡著的時候，一步步艱辛地向上攀爬的。”
“我們不一定會因為賺很多的錢而富有，但我們可以因付出的善念而使心中富有”
“四個堅持：簡化才能簡單、專注才會專業、整合才可結合、持續才將延續”
