PROVO, Utah--(BUSINESS WIRE)--July 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 second quarter ended June 30, 2002.
Sales revenue for the quarter ended June 30, 2002, was $77.9 million compared to $81.8 million for the same period in the prior year, a decrease of approximately 5 percent. Net income for the second quarter totaled $3.0 million, or $0.18 diluted per share compared to net income of $4.7 million, or $0.28 diluted per share, for the same period in the prior year. Sales for the six months ended June 30, 2002, totaled $153.8 million compared to $163.5 million for the same period in the prior year, a decrease of 6 percent. Net income for the six months ended June 30, 2002, totaled $2.1 million, or $0.13 diluted per share, compared to $8.7 million, or $0.53 diluted per share, for the same period in the prior year.
Sales revenue for the second quarter in the Company's U.S. operation was $45.3 million compared to $45.6 million for the same period in the prior year, a decrease of less than 1 percent. For the six months ended June 30, 2002, sales revenue in the U.S. operation totaled $89.5 million compared to $91.7 million, a decrease of approximately 2 percent. Sales revenue in the U.S. Hispanic market continued to grow, increasing approximately 15 percent for the second quarter as compared to the same period in the prior year.
International sales revenue for the second quarter totaled $32.6 million compared to $36.2 million for the same period in the prior year, a decrease of approximately 10 percent. International sales revenue for the six months ended June 30, 2002, totaled $64.3 million compared to $71.8 million, a decrease of approximately 10 percent, compared to the same period in the prior year. The decreases in international sales revenue were primarily the result of revenue decreases reported in South Korea, Brazil and Venezuela.
"Despite the unfavorable operating results reported during the quarter, we are optimistic about the prospects of certain new programs implemented in recent months, primarily the introduction of our latest product, BodyGem(TM), a personal handheld tracking device designed to monitor one's resting metabolic burn rate," said Daniel P. Howells, President and CEO. "Although several key markets lost momentum during the quarter, other markets made notable improvements in profitability. Our emphasis continues to be on increasing sales revenue, reducing costs, introducing new products and enhancing our marketing efforts. We anticipate holding one of the Company's largest conventions in September in Nashville, Tennessee. Consequently, with a high degree of liquidity and a strong financial position, we remain confident regarding the outlook for our Company."
At June 30, 2002, working capital totaled $38.1 million, including cash and cash equivalents of $25.4 million. The number of worldwide distributors at June 30, 2002, was approximately 555,000 compared to approximately 581,000 in the same period of the prior year, a decrease of approximately 4 percent. The number of worldwide managers at June 30, 2002, was approximately 19,100 compared to 18,900 for the same period of the prior year, an increase of approximately 1 percent. During the second quarter, the Company repurchased approximately 352,000 shares of common stock at an average price of $11.01 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, Israel and Singapore. 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 www.natr.com.