Nu Skin Enterprises, Inc., today announces its 2009 financial guidance to coincide with its annual Investor Day presentation this morning at 9 a.m. at the Grand Hyatt Hotel in New York City. During today's investor presentation, senior management will discuss the company's operational results and outline plans for 2009.
"The Nu Skin business is on track and we look forward to rounding out 2008 on a positive note," said Truman Hunt, chief executive officer.
"Our 2009 business plan is designed to maintain our current rate of top-line local currency growth, while further increasing profitability. As we continue to look for efficiencies, we are focused on improving cost structures in our international markets, including Japan. We are currently developing our plans, but expect that we could incur up to $12 million in restructuring expenses during the first half of the year."
"For 2009, we project revenue to be in the $1.240 to $1.270 billion range, a 3 to 5 percent increase in local currency revenue, offset by an anticipated negative currency impact of 3 to 5 percent," said Ritch Wood, chief financial officer. "With a projected operating margin of 9.6 to 10.3 percent, earnings per share for 2009 are projected to be in the $1.10 to $1.20 range. This guidance does not include the impact of restructuring charges we plan to take during the first half of 2009. Once we finalize our plans we will provide more detailed information on our restructuring efforts."
A webcast of the event, including the financial information to be presented, will be available on the investor section of the company's Web site at http://www.nuskinenterprises.com. A replay of the webcast, along with accompanying slides, will be made available from the same location through Wednesday, Dec. 31.
Nu Skin Enterprises, Inc. demonstrates 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 establishes Nu Skin as a premier anti-aging company, evidenced in its patent-pending ageLOC technology 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 throughout Asia, the Americas and Europe 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) management's expectations regarding the company's performance in the fourth quarter of 2008; (ii) management's belief that plans for 2009 will maintain our current rate of top-line local currency growth, while further increasing profitability; (iii) management's expectations regarding the amount and timing of restructuring charges in 2009; and (iv) management's revenue, local-currency revenue, currency translation, operating margin and earnings per share projections for 2009. These forward-looking statements 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) risks that could adversely impact the company's operations or financial results in its markets, including its largest market, Japan, such as negative market conditions, foreign currency exchange rate fluctuations, material decreases in executive-level and active distributors, or the company's failure to execute effective initiatives in these markets; (b) 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; (c) any failure of the implementation of recent or planned business restructuring initiatives to reduce overhead and drive growth; (d) risk that any restructuring initiatives will involve expenses in excess of our expectations, or require more time than we currently anticipate; (e) increased regulatory and media scrutiny in many of our markets, including Japan, and the risk that such scrutiny could adversely impact our business, result in adverse changes in laws or actions against the company; and (f) risks that fluctuations in foreign currency exchange rates could negatively impact anticipated results. 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 most recent Form 10-K and subsequent Forms 10-Q. 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.