PROVO, Utah--(BUSINESS WIRE)--April 23, 2002--Nature's Sunshine Products, Inc. (NASDAQ:NATR), a leading manufacturer and marketer of encapsulated herbs and vitamins, today announced operating results for the first quarter ended March 31, 2002.
Sales revenue for the quarter ended March 31, 2002, was $75.9 million compared to $81.7 million for the same period in the prior year, a decrease of approximately 7 percent. The net loss reported for the first quarter totaled $0.9 million, or $0.05 per share, which included an impairment charge of $3.0 million associated with the Company's investment in Cetalon Corporation as well as non-recurring expenses of $1.3 million in its Brazilian and U.S. operations. These results compare to net income of $4.0 million, or $0.25 per share, for the same period in the prior year.
For the quarter ended March 31, 2002, sales revenue for the Company's U.S. operation was $44.2 million compared to $46.0 million for the same period in the prior year, a decrease of 3 percent. Sales revenue in the U.S. Hispanic market continued to grow, increasing approximately 10 percent for the first quarter as compared to the same period in the prior year.
For the quarter ended March 31, 2002, sales revenue for the Company's international operations totaled $31.7 million compared to $35.7 million for the same period in the prior year, a decrease of approximately 12 percent. For the first quarter, the Company continued to achieve sales increases in South Korea and the Russian Federation, however, these gains were offset by a $3.1 million decrease in sales revenue in Brazil where the Company continues to be adversely impacted by import regulations imposed by the Brazilian government.
Nature's Sunshine Products anticipates a return to profitability in the second quarter of this year as a result of cost-cutting measures. "The first quarter has been an unusually difficult period, but we are seeing signs of improvement," said Daniel P. Howells, President and CEO. "We believe that the cost reduction measures we are implementing Company-wide, as well as other steps to improve performance, will benefit the Company going forward."
At March 31, 2002, working capital totaled $41.0 million, including cash and cash equivalents of $30.6 million. The number of worldwide distributors at March 31, 2002, was approximately 570,000 compared to approximately 585,000 in the same period of the prior year, a decrease of 3 percent. The number of worldwide managers at March 31, 2002, was over 19,400 compared to 18,900 for the same period of the prior year, an increase of 3 percent. During the first quarter, the Company repurchased approximately 169,000 shares of common stock at an average price of $12.67 under its Board-authorized buyback program.
Nature's Sunshine Products manufactures and markets through direct sales encapsulated and tableted herbal products, high quality natural vitamins and other complementary products. In addition to the U.S., the Company has operations in South Korea, Brazil, Mexico, Venezuela, Japan, Canada, Colombia, the United Kingdom and Ireland, Peru, Chile, Central America, Ecuador and Israel. The Company also has exclusive distribution agreements with selected companies in Argentina, Australia, New Zealand, Malaysia, Norway and the Russian Federation.
Statements in this press release concerning the Company's business outlook or future economic performance, anticipated profitability, revenues, expenses or other financial items, and product line growth, together with other statements that are not historical facts, are "forward-looking statements" as that term is defined under Federal Securities Laws. "Forward-looking statements" are subject to risks, uncertainties and other factors which could cause actual results to differ materially from those set forth in such statements. Such risks, uncertainties and factors include, but are not limited to, foreign business risks, industry cyclicality, fluctuations in customer demand and order pattern, the seasonal nature of the business, changes in pricing and general economic conditions, as well as other risks detailed in the Company's filings with the Securities and Exchange Commission.
Contact: Craig D. Huff Steven S. Anreder Chief Financial Officer Anreder Hirschhorn & Co. Nature's Sunshine Products, Inc. 10 East 40th Street, Suite 1308 Provo, Utah 84605-9005 New York, NY 10016 (801) 342-4370 (212) 532-3232
For more information, contact us at our website at www.natr.com.