SALT LAKE CITY–(BUSINESS WIRE) – Jul 24, 2012 – USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal second quarter 30 June 2012.
Second quarter net sales by 8.0% to $160,90 million increasedEarnings per share rose by 26.1% to $1.11 for the quarterCompany raises Outlook 2012Financial capacity
Net sales for the second quarter of 2012 rose by 8.0% to $160,90 million, compared with $148,90 million in the same period. The growth in sales was driven by the increase of company’s Asia-Pacific and North America & Europe regions. Net sales were up $2.70 million reduced changes in currency exchange rates.
Result for the second quarter rose up $16.70 million, increase of 20.9%, compared with the same period last year. This increase was primarily due to higher net sales, improved gross margins, lower relative associate incentive costs and a lower tax rate. Earnings per share for the quarter rose 26.1% to $1.11, compared with $0.88 in the second quarter of the previous year. This improvement of earnings per share resulted from higher net income and a lower number of diluted shares as a result of the company share buy-backs in the last 12 months.
“USANA delivered solid second quarter results, which limited the very impressive first half of 2012,” said Mr. Dave Wentz, Chief Executive Officer. “During the quarter we continued momentum in our business-build, partly due to our successful introduction of a new component to our associate compensation plan.” This component, which is known as our life of matching bonus was worldwide very well received by our employees. “With the introduction of lifetime matching bonus, we ran a short-term promotion that also our positive results in the quarter helped.”
Regional results
Sales in Asia/Pacific increased by 11.0% to $98,40 million million in the second quarter of last year compared with $88,70. This improvement was by strong sales growth in South East Asia Pacific and China. This growth was driven by an increase in the number of active employees, as well as price increases in certain markets, which were implemented in the first quarter. The number of active employees in the Asia Pacific region rose by 10.1%, due to the significant associate growth in the Philippines, associate growth in many other Asian markets and the addition of our Asia-Pacific region of Thailand.
“We are pleased with the continued growth in our Asia Pacific region can” continue Mr. Wentz. “During the quarter, we instead of a successful opening event in Thailand and dynamics in this market to grow in the second half of the year expected.” “Our efforts in Asia remain focused it on our greater China region, as we lay the foundations for long-term growth through the development of associate guide continue to”.
In the second quarter of 2012, sales in North America & Europe rose by 3.6% to $62,50 million, as compared to the second quarter of the previous year. This improvement was mainly due to higher sales in the United States and Mexico and, to a lesser extent, to the opening of France and Belgium. The number of active associates in North America & Europe 2011 modest when compared to the second quarter.
Mr. Wentz added, “again successfully executed our strategy growth North America is, and we are encouraged by the growth we are seeing in this region.” “In August we will be our International Convention in Salt Lake City, where we are planning several advertisements that we believe global growth, to facilitate in particular in North America, will hold.”
The company continued its successful results to create meaningful levels of cash from operations and ended the quarter with approximately 65,50 million $ in cash and cash equivalents. Cash flow amounted to $21.30 million for the quarter. Invested during the quarter the company to buy back $26,60 million 677.000 shares of the company’s shares.
Outlook
The company put the following updated financial prospects for 2012:
The consolidated net sales between $630 million and $640 million, compared to the previous Outlook of between $610 million and $625 million. Earnings per share between $4.10 and $4.20, compared to the previous Outlook of between $3.60 and $3.70.Chief Financial Officer Doug Hekking commented: “leverage on higher sales, gained better than expected, that gross margins and a lower tax rate were the main factors that our strong bottom-line performance this quarter contributed.” These same factors, as well as a reduced number of diluted shares, are the driving forces behind the increase of earnings per share estimate for the rest of the current fiscal year. Our strong performance in the first six months of the year has laid the Foundation, what we believe, a solid second half of 2012. “As such, our financial Outlook for the business year increase 2012 we.”
Conference call
USANA holds a conference call and Webcast discussing this announcement Eastern time with investors on Wednesday, July 25, 2012 at 11: 00. Investors can listen to the call by accessing the USANA Web site underhttp://www.usanahealthsciences.com.
USANA
USANA develops and manufactures high-quality nutrition, body care and weight-management products, directly to Associates and preferred customers in the United States, Canada, Australia, New Zealand, Hong Kong, China, Japan, Taiwan, South Korea, Singapore, Mexico, Malaysia, the Philippines, Netherlands, UK, Thailand, France and Belgium are sold. Learn more about USANA can be found at http://www.usanahealthsciences.com.
Tagged as: 2012 financials, Q2, USANA
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