Nu Skin Enterprises Announces Record Revenue
October 20 2009 - 6:30AM
PR Newswire (US)
PROVO, Utah, Oct. 20 /PRNewswire-FirstCall/ -- Today Nu Skin
Enterprises pre-announced record quarterly revenue and earnings in
advance of its 25th Anniversary Global Convention. Revenue for the
third quarter grew to $334.2 million, an 8 percent improvement over
the prior-year period. Earnings per share are expected to be $0.39
to $0.40, compared to $0.26 in the prior-year quarter. Earnings per
share include $0.01 in planned restructuring charges related to
Japan. Revenue benefited 1 percent for the quarter from foreign
currency fluctuations. Strong revenue results around the globe
coupled with improving operating margins continue to drive record
results. "In a year full of milestones, it's fitting that the third
quarter was our largest revenue quarter in company history," said
Truman Hunt, president and chief executive officer. "We continue to
generate impressive results on both the top and bottom lines. Our
local currency revenue growth accelerated to 7 percent, boosted by
continued sales trend improvements in Japan and double-digit growth
in South East Asia, South Korea, Mainland China, Europe and Latin
America. Our North America business also performed well, reporting
7 percent growth. The approximately 50 percent improvement on the
bottom line is a reflection of the terrific work our management
teams have done around the world in streamlining the business over
the past three years. "All indications are that the upcoming launch
of our ageLOC anti-aging skin-care product line will be our most
significant new product launch ever," Hunt continued. "We are
seeing tremendous energy as we build towards our 25th Anniversary
Global Convention, which will take place October 22 to 24 in Los
Angeles, California. "Our strong performance in the third quarter
leads us to raise our guidance for the year. We anticipate revenue
of $1.29 billion to $1.30 billion, with earnings in the range of
$1.25 to $1.27, including estimated restructuring charges of
approximately $0.13," concluded Hunt. The company will provide
complete quarterly details before the opening of the financial
markets on Thursday, Oct. 29. Management will host a conference
call with the investment community that same day at 1 p.m. EDT. The
Company For 25 years, Nu Skin Enterprises, Inc. has been
demonstrating its tradition of innovation through its comprehensive
anti-aging product portfolio, independent business opportunity and
corporate social responsibility initiatives. Nu Skin's scientific
leadership in both skin care and nutrition has established Nu Skin
as a premier anti-aging company, evidenced in its unique ageLOC(TM)
approach and flagship products including the Galvanic Spa® System
II, Tru Face® Essence Ultra, LifePak® nano and the g3 nutrition
beverage. A global direct selling company, Nu Skin operates in 48
markets worldwide and has more than 750,000 independent sales
representatives. Nu Skin Enterprises is traded on the New York
Stock Exchange under the symbol "NUS." More information is
available at http://www.nuskinenterprises.com/. Please note: This
press release, contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934 that
represent the company's current expectations and beliefs,
including, among other things: (i) anticipated financial results
for the third quarter; (ii) management's positive outlook for the
company; (iii) management's expectations regarding the launch of
the ageLOC(TM) anti-aging skin-care product line; and (iv)
management's projections regarding revenue, earnings per share and
restructuring charges for the year 2009. 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: (a)
challenging economic conditions globally; (b) any prospective or
retrospective increases in duties on our products imported into our
markets outside of the United States and any adverse results of tax
audits or unfavorable changes to tax laws in our various markets;
(c) the recent fluctuations of numerous foreign currencies and the
associated currency translation impact on our business if these
currencies continue to fluctuate; (d) uncertainty regarding the
impact on our business of increased regulatory scrutiny of the
direct selling industry in Japan and our efforts to increase
distributor compliance efforts in this market; (e) an increase in
complaints to consumer protection agencies in Japan regarding the
activities of some distributors and the associated risks to the
company's business if such increase results in further regulatory
scrutiny; (f) regulatory risks associated with the company's tools
and products, which could inhibit the company's ability to market a
tool or product in a market if it is determined to be a medical
device in any market, if distributors make unauthorized claims that
would cause such products to be classified as drugs, or if the
company is unable to obtain necessary product registrations in a
timely manner; (g) risks related to the recent swine flu outbreak,
which could negatively impact our business to the extent that it
inhibits travel, causes people to avoid interaction with other
people, or restricts our ability to produce or distribute any of
our porcine-sourced gelatin encapsulated products; (h) continued
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; (i) any 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; (j) any unanticipated negative response from
distributors regarding distributor compensation plan enhancements
planned for implementation in most of our Asian markets in 2009;
(k) any failure of the implementation of business transformation
initiatives to reduce overhead and drive growth, and any negative
impact of such initiatives on the company's ability to effectively
manage its operations; (l) adverse publicity related to the
company's business, products, industry or any legal actions or
complaints by distributors or others similar to claims made against
some of the company's competitors; and (m) 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, including the company's Annual Report on Form
10-K filed on February 27, 2009 and Quarterly Reports on Form 10-Q
filed on May 8, 2009 and August 7, 2009. The forward-looking
statements set forth the company's beliefs as of the date of this
release, 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. DATASOURCE: Nu Skin Enterprises,
Inc. CONTACT: investors, Scott Pond, +1-801-471-9998, , or media,
Kara Schneck, +1-801-345-2116, , both of Nu Skin Enterprises, Inc.
Web Site: http://www.nuskinenterprises.com/
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