PROVO, Utah--(BUSINESS WIRE)--April 5, 2002--Nature's Sunshine Products, Inc. (Nasdaq:NATR), a leading manufacturer and marketer of encapsulated herbs and vitamins, announced today that net earnings for its first quarter ended March 31, 2002, are anticipated to be approximately 50% below security analyst estimates of $.20 per share.
This is before the write-down of a long-term investment, which became impaired near the end of the first quarter.
The Company stated that the write-down related to the impairment of the long-term investment will be approximately $3.0 million before tax and approximately $2.0 million after tax. Due to the decrease in operating results coupled with the non-cash write down of this investment, the Company expects an overall loss of $.03 to $.04 for the first quarter.
The Company said that it has implemented a hiring freeze and has instituted a cost-cutting program throughout the organization. The first quarter results are expected to reflect a 5 percent decline in U.S. sales revenue and an 11 percent decline in international sales revenue, or an 8 percent decline in total sales revenue. The Company's operations in Brazil accounted for approximately 75% of the decline in international sales revenue. Both Brazil and Japan continued to experience operating losses for the quarter. The loss in Brazil, where import restrictions have adversely affected results, included expenses to restructure activities in that country.
As a result of the new measures, Nature's Sunshine said that it expects Brazil to post an operating profit for the second quarter. Nature's Sunshine said that it also expects more favorable year-to-year comparisons for Brazil in the second half of this year.
Results for the first quarter ended March 31, 2002, are expected to be released during the week of April 22. Nature's Sunshine Products manufactures and markets through direct sales tablets and encapsulated 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.
For more information, contact us at our website at www.natr.com.