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Nu Skin Enterprises Reports Fourth Quarter and Full-year 2023 Results Above Company Guidance

Company updates capital allocation priorities, announces dividend and provides initial outlook for Q1 and FY 2024

Nu Skin Enterprises Inc. (NYSE: NUS) today announced fourth quarter and full-year 2023 results slightly above its latest guidance.

Executive Summary

Q4 2023 vs. Prior-year Quarter

Revenue

$488.6 million; (6)%

  • (1)% FX impact or $(7.2) million
  • Rhyz revenue $65.1 million; 101%

Earnings Per Share (EPS)

$0.15 or $0.37 excluding restructuring and other charges, compared to $1.15 or $0.89 excluding restructuring and impairment charges and a favorable tax rate in Q4 22

Customers

977,039; (15)%

Paid Affiliates

166,886; (30)% or (13)% excluding an adjustment to eligibility requirements

Sales Leaders

44,059; (10)%

Executive Summary

2023 vs. 2022

Revenue:

$1.97 billion; (12)%

  • (3)% FX impact or $(60.4) million
  • Rhyz revenue $216.6 million; 41%

Earnings Per Share (EPS):

$0.17 or $1.85 excluding inventory write-off and other charges, compared to $2.07 or $2.90 excluding restructuring and impairment charges

“While we continue to work toward our long-term vision of becoming the world’s leading integrated beauty and wellness platform, our progress was impacted by persistent macro-economic pressures and disruptions associated with transforming our business,” said Ryan Napierski, Nu Skin president and CEO. “This was particularly evident with our fourth quarter results, which were down in our Americas, South Korea and Europe & Africa segments. This was offset by seasonal promotions in Mainland China, stabilization in Japan and modest growth in our Hong Kong/Taiwan segment. In addition, we achieved strong growth in our Rhyz businesses, which accounted for 13 percent of our revenue in the fourth quarter.

“We are committed to generating long-term enterprise value by repositioning our company to win in the rapidly evolving beauty and wellness industries by further transforming our core Nu Skin business and accelerating investment in our rapidly growing Rhyz ecosystem,” continued Napierski. “To enhance this transformation, we are reassessing our approach to capital allocation to invest in long-term growth and business evolution. This initiative aims to grant us increased financial flexibility, enabling us to effectively seize forthcoming growth opportunities. This includes rebalancing our dividend payout ratio to be in line with or better than our industry peers. With the additional available capital, we will focus our investments relatively evenly across three key initiatives: 1) accelerating the growth opportunities in Rhyz; 2) facilitating a new market expansion model beginning with India anticipated in 2025; and 3) furthering the build-out of our digital-first affiliate opportunity platform. While we continue to navigate the challenges of a business transformation amid these disruptive times, we have fine-tuned our strategy and remain confident in our ability to generate long-term growth and value for shareholders.”

Q4 2023 Year-over-year Operating Results

Revenue

$488.6 million compared to $522.3 million

  • (1)% FX impact or $(7.2) million
  • Rhyz revenue $65.1 million; 101%

Gross Margin

72.1% compared to 71.7%

  • Nu Skin business was 77.4% compared to 74.9%

Selling Expenses

37.1% compared to 38.5%

  • Nu Skin business was 40.8% compared to 40.5%

G&A Expenses

29.7% compared to 24.4%

Operating Margin

3.3% or 6.4% excluding restructuring and other charges compared to 5.3% or 8.8% excluding restructuring and impairment charges

Other Expense

$(6.7) million compared to $(3.1) million

Income Tax Rate

21.9% or 24.9% excluding restructuring and other charges compared to (134.9)% or (3.7)% excluding restructuring and impairment charges

EPS

$0.15 or $0.37 excluding restructuring and other charges compared to $1.15 or $0.89 excluding restructuring and impairment charges and a tax method change

Stockholder Value

Dividend Payments

$19.3 million

Stock Repurchases

$0.0 million

  • $162.4 million remaining in authorization

Q1 and Full-year 2024 Outlook

Q1 2024 Revenue

$400 to $435 million; (17)% to (10)%

  • Approximately (3) to (2)% FX impact

Q1 2024 EPS

$(0.07) to $0.03 or $0.00 to $0.10 non-GAAP

2024 Revenue

$1.73 to $1.87 billion; (12)% to (5)%

  • Approximately (1)% FX impact

2024 EPS

$0.75 to $1.15 or $0.95 to $1.35 non-GAAP

“Our initial 2024 guidance assumes the global macro environment remains challenging in the near-term, improving throughout the year,” said James D. Thomas, chief financial officer. “Our annual revenue guidance is $1.73 to $1.87 billion, with an approximate 1% foreign currency headwind. We anticipate reported EPS of $0.75 to $1.15 or adjusted earnings of $0.95 to $1.35, excluding charges associated with our extended restructuring plan. Our guidance reflects an anticipated higher global effective tax rate, primarily due to the expected geographical mix of earnings during the year. For the first quarter, we project revenue of $400 to $435 million, assuming a negative foreign currency impact of approximately 3%, with reported earnings per share of $(0.07) to $0.03 or $0.00 to $0.10 excluding restructuring charges.”

Dividend Payout

The Nu Skin Enterprises board of directors has declared a quarterly cash dividend of $0.06 per share, which will be paid on March 6, 2024, to shareholders of record on Feb. 26, 2024.

Conference Call

The Nu Skin Enterprises management team will host a conference call with the investment community today at 5 p.m. (ET). Those wishing to access the webcast, as well as the financial information presented during the call, can visit the Investor Relations page on the company's website at ir.nuskin.com. A replay of the webcast will be available on the same page through Feb. 28, 2024.

About Nu Skin Enterprises Inc.

The Nu Skin Enterprises Inc. (NYSE: NUS) family of companies includes Nu Skin and Rhyz Inc. Nu Skin is an integrated beauty and wellness company, powered by a dynamic affiliate opportunity platform, which operates in nearly 50 markets worldwide. Backed by nearly 40 years of scientific research, the company’s products help people look, feel and live their best with brands including Nu Skin® personal care, Pharmanex® nutrition and ageLOC® anti-aging, which includes an award-winning line of beauty device systems. Formed in 2018, Rhyz is a synergistic ecosystem of consumer, technology and manufacturing companies focused on innovation within the beauty, wellness and lifestyle categories.

Important Information Regarding Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the company’s current expectations and beliefs. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws and include, but are not limited to, statements of management’s expectations regarding the macro environment and the company’s performance, growth and growth opportunities, shareholder value, financial flexibility, transformation, evolution, investments, initiatives, digital tools and initiatives, and new market expansion; projections regarding revenue, expenses, tax rates, earnings per share, foreign currency fluctuations, future dividends, uses of cash and other financial items; statements of belief; and statements of assumptions underlying any of the foregoing. In some cases, you can identify these statements by forward-looking words such as “believe,” “expect,” “aim,” “commit,” “reposition,” “anticipate,” “accelerate,” “project,” “vision,” “continue,” “outlook,” “guidance,” “improve,” “will,” “would,” “could,” “may,” “might,” the negative of these words and other similar words.

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, the following:

  • any failure of current or planned initiatives or products to generate interest among the company’s sales force and customers and generate sponsoring and selling activities on a sustained basis;
  • risk that direct selling laws and regulations in any of the company’s markets, including the United States and Mainland China, may be modified, interpreted or enforced in a manner that results in negative changes to the company’s business model or negatively impacts its revenue, sales force or business, including through the interruption of sales activities, loss of licenses, increased scrutiny of sales force actions, imposition of fines, or any other adverse actions or events;
  • economic conditions and events globally;
  • competitive pressures in the company’s markets;
  • risk that epidemics, including COVID-19 and related disruptions, or other crises could negatively impact our business;
  • adverse publicity related to the company’s business, products, industry or any legal actions or complaints by the company’s sales force or others;
  • political, legal, tax and regulatory uncertainties, including trade policies, associated with operating in Mainland China and other international markets;
  • uncertainty regarding meeting restrictions and other government scrutiny in Mainland China, as well as negative media and consumer sentiment in Mainland China on our business operations and results;
  • risk of foreign-currency fluctuations and the currency translation impact on the company’s business associated with these fluctuations;
  • uncertainties regarding the future financial performance of the businesses the company has acquired;
  • risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support planned initiatives or launch strategies, and increased risk of inventory write-offs if the company over-forecasts demand for a product or changes its planned initiatives or launch strategies;
  • regulatory risks associated with the company’s products, which could require the company to modify its claims or inhibit its ability to import or continue selling a product in a market if the product is determined to be a medical device or if the company is unable to register the product in a timely manner under applicable regulatory requirements; and
  • the company’s future tax-planning initiatives, any prospective or retrospective increases in duties or tariffs on the company’s products imported into the company’s markets outside of the United States, and any adverse results of tax audits or unfavorable changes to tax laws in the company’s various 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. The forward-looking statements set forth the company’s beliefs as of the date that such information was first provided, 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.

Non-GAAP Financial Measures: Constant-currency revenue change is a non-GAAP financial measure that removes the impact of fluctuations in foreign-currency exchange rates, thereby facilitating period-to-period comparisons of the company’s performance. It is calculated by translating the current period’s revenue at the same average exchange rates in effect during the applicable prior-year period and then comparing that amount to the prior-year period’s revenue. The company believes that constant-currency revenue change is useful to investors, lenders and analysts because such information enables them to gauge the impact of foreign-currency fluctuations on the company’s revenue from period to period.

Earnings per share, operating margin and income tax rate, each excluding inventory write-off charges, restructuring charges, and/or other charges, also are non-GAAP financial measures. Inventory write-off charges and restructuring charges are not part of the ongoing operations of our underlying business, and the legal accrual and non-recurring foreign tax charge that have been excluded in the non-GAAP financial measures are not typical for our ongoing operations. The company believes that these non-GAAP financial measures are useful to investors, lenders and analysts because removing the impact of these charges facilitates period-to-period comparisons of the company’s performance. Please see the reconciliations of these items to our earnings per share, operating margin and income tax rate calculated under GAAP, below.

The following table sets forth revenue for the three-month periods ended December 31, 2023, and 2022 for each of our reportable segments (U.S. dollars in thousands):

Three Months Ended

December 31,

 

 

Constant-Currency

 

2023

 

2022

 

Change

 

Change

Nu Skin

Americas

$

97,753

 

$

128,921

 

 

(24)%

 

(19)%

Mainland China

 

71,516

 

73,935

 

 

(3)%

 

(2)%

Southeast Asia/Pacific

 

66,889

 

 

76,606

 

 

(13)%

 

(12)%

South Korea

 

48,380

 

 

60,029

 

 

(19)%

 

(22)%

Japan

 

50,966

 

 

53,877

 

 

(5)%

 

 

(1)%

Europe & Africa

 

47,892

 

 

55,337

 

 

(13)%

 

(18)%

Hong Kong/Taiwan

 

41,209

 

 

39,789

 

 

4%

 

5%

Nu Skin other

 

(1,066)

 

 

1,525

 

 

(170)%

 

 

(170)%

Total Nu Skin

423,539

490,019

(14)%

(12)%

Rhyz

Manufacturing

50,363

29,560

70%

70%

Rhyz other

14,738

2,761

434%

434%

Total Rhyz

65,101

32,321

101%

101%

Total

$

488,640

 

$

522,340

 

 

(6)%

 

(5)%

The following table sets forth revenue for the years ended December 31, 2023, and 2022 for each of our reportable segments (U.S. dollars in thousands):

Year Ended

December 31,

 

 

Constant-Currency

 

2023

 

2022

 

Change

 

Change

Nu Skin

Americas

$

398,222

 

$

508,537

 

 

(22)%

 

(18)%

Mainland China

 

298,079

 

360,389

 

 

(17)%

 

(13)%

Southeast Asia/Pacific

 

267,206

 

 

344,411

 

 

(22)%

 

(21)%

South Korea

 

236,099

 

 

268,707

 

 

(12)%

 

(11)%

Japan

 

207,833

 

 

224,896

 

 

(8)%

 

 

(1)%

Europe & Africa

 

192,352

 

 

204,275

 

 

(6)%

 

(8)%

Hong Kong/Taiwan

 

153,589

 

 

157,197

 

 

(2)%

 

1%

Nu Skin other

 

-858

 

 

3,959

 

 

(122)%

 

 

(122)%

Total Nu Skin

1,752,522

2,072,371

(15)%

(13)%

Rhyz

Manufacturing

181,395

149,458

21%

21%

Rhyz other

35,214

3,830

819%

819%

Total Rhyz

216,609

153,288

41%

41%

Total

$

1,969,131

 

$

2,225,659

 

 

(12)%

 

(9)%

The following table provides information concerning the number of Customers, Paid Affiliates and Sales Leaders in our core Nu Skin business for the three-month periods ended December 31, 2023, and 2022:

Year Ended

December 31,

2023

 

2022

Change

Customers

 

 

 

 

 

 

 

Americas

 

231,183

299,287

(23)%

Mainland China

 

207,276

202,933

2%

Southeast Asia/Pacific

 

106,471

141,183

(25)%

South Korea

 

103,151

123,749

 

(17)%

Japan

 

113,670

119,152

(5)%

Europe & Africa

 

163,178

197,917

(18)%

Hong Kong/Taiwan

 

52,110

62,903

(17)%

Total Customers

977,039

1,147,124

(15)%

Paid Affiliates

 

 

 

 

 

 

 

Americas

 

31,910

42,633

(25)%

Mainland China

 

25,889

23,436

10%

Southeast Asia/Pacific

 

34,404

38,653

(11)%

South Korea(1)

 

22,166

45,058

(51)%

Japan(1)

 

22,417

38,021

(41)%

Europe & Africa(1)

 

18,888

31,869

(41)%

Hong Kong/Taiwan(1)

 

11,212

17,286

(35)%

Total Paid Affiliates

166,886

236,956

(30)%

Sales Leaders

 

 

 

 

 

 

 

Americas

 

7,126

9,594

(26)%

Mainland China

11,296

12,359

(9)%

Southeast Asia/Pacific

 

6,418

6,999

(8)%

South Korea

 

5,249

6,094

(14)%

Japan

 

7,086

5,936

19%

Europe & Africa

 

3,968

4,740

(16)%

Hong Kong/Taiwan

 

2,916

3,015

(3)%

Total Sales Leaders

44,059

48,737

(10)%

(1) The December 31, 2023, number is affected by a change in eligibility requirements for receiving certain rewards within our compensation structure. We plan to implement these changes in additional segments over the next several quarters. We estimate the change in eligibility requirements resulted in a reduction of approximately 14 thousand, 15 thousand, 6 thousand and 3 thousand for South Korea, Japan, Europe & Africa and Hong Kong/Taiwan, respectively.

  • “Customers” are persons who have purchased directly from the Company during the three months ended as of the date indicated. Our Customer numbers include members of our sales force who made such a purchase, including Paid Affiliates and those who qualify as Sales Leaders, but they do not include consumers who purchase directly from members of our sales force.
  • “Paid Affiliates” are any Brand Affiliates, as well as members of our sales force in Mainland China, who earned sales compensation during the three-month period. In all of our markets besides Mainland China, we refer to members of our independent sales force as “Brand Affiliates” because their primary role is to promote our brand and products through their personal social networks.
  • “Sales Leaders” are the three-month average of our monthly Brand Affiliates, as well as sales employees and independent marketers in Mainland China, who achieved certain qualification requirements as of the end of each month of the quarter.

NU SKIN ENTERPRISES, INC.

Consolidated Statements of Income (Unaudited)

(U.S. dollars in thousands, except per share amounts)

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2023

 

2022

 

2023

 

2022

Revenue

$

488,640

 

 

$

522,340

 

 

$

1,969,131

 

 

$

2,225,659

 

Cost of sales

 

136,215

 

 

 

147,816

 

 

 

611,850

 

 

 

630,915

 

Gross profit

 

352,425

 

 

 

374,524

 

 

 

1,357,281

 

 

 

1,594,744

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Selling expenses

 

181,326

 

 

 

201,031

 

 

 

742,365

 

 

 

879,634

 

General and administrative expenses

 

145,033

 

 

 

127,664

 

 

 

546,858

 

 

 

555,769

 

Restructuring and impairment expenses

10,003

 

18,370

 

19,790

 

48,494

 

Total operating expenses

 

336,362

 

 

 

347,065

 

 

 

1,309,013

 

 

 

1,483,897

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

16,063

 

 

 

27,459

 

 

 

48,268

 

 

 

110,847

 

Other income (expense), net

 

(6,735

)

 

 

(3,104

)

 

 

(21,690

)

 

 

(21,877

)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before provision for income taxes

 

9,328

 

 

 

24,355

 

 

 

26,578

 

 

 

88,970

 

Provision (benefit) for income taxes

 

2,046

 

 

 

(32,860

)

 

 

17,983

 

 

 

(15,808

)

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

7,282

 

 

$

57,215

 

 

$

8,595

 

 

$

104,778

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

Basic

$

0.15

 

 

$

1.16

 

 

$

0.17

 

 

$

2.10

 

Diluted

$

0.15

 

 

$

1.15

 

 

$

0.17

 

 

$

2.07

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding (000s):

 

 

 

 

 

 

 

 

 

 

Basic

 

49,411

 

 

 

49,452

 

 

 

49,711

 

 

 

50,002

 

Diluted

 

49,479

 

 

 

49,783

 

 

 

49,860

 

 

 

50,525

 

NU SKIN ENTERPRISES, INC.

Consolidated Balance Sheets (Unaudited)

(U.S. dollars in thousands)

 

 

 

 

 

December 31,

2023

 

December 31,

2022

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

256,057

 

 

$

 

264,725

 

Current investments

 

11,759

 

 

 

 

13,784

 

Accounts receivable, net

 

72,879

 

 

 

 

47,360

 

Inventories, net

 

279,978

 

 

 

 

346,183

 

Prepaid expenses and other

 

81,198

 

 

 

 

87,816

 

Total current assets

 

701,871

 

 

 

 

759,868

 

 

 

 

 

 

 

Property and equipment, net

 

432,965

 

 

 

 

444,806

 

Operating lease right-of-use assets

90,107

 

 

98,734

 

Goodwill

 

230,768

 

 

 

 

206,432

 

Other intangible assets, net

 

105,309

 

 

 

 

66,701

 

Other assets

 

245,443

 

 

 

 

244,429

 

Total assets

$

1,806,463

 

 

$

 

1,820,970

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

43,505

 

 

$

 

53,963

 

Accrued expenses

 

260,366

 

 

 

 

280,280

 

Current portion of long-term debt

 

25,000

 

 

 

 

25,000

 

Total current liabilities

 

328,871

 

 

 

 

359,243

 

 

Operating lease liabilities

 

70,943

 

 

 

 

76,540

 

Long-term debt

 

478,040

 

 

 

 

377,466

 

Other liabilities

 

106,641

 

 

 

 

110,425

 

Total liabilities

 

984,495

 

 

 

 

923,674

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Class A common stock – 500 million shares authorized, $0.001 par value, 90.6 million shares issued

 

91

 

 

 

 

91

 

Additional paid-in capital

 

621,853

 

 

 

 

613,278

 

Treasury stock, at cost – 41.1 million and 41.1 million shares

 

(1,570,440

)

 

 

 

(1,569,061

)

Accumulated other comprehensive loss

 

(100,006

)

 

 

 

(86,509

)

Retained earnings

 

1,870,470

 

 

 

 

1,939,497

 

Total stockholders' equity

 

821,968

 

 

 

 

897,296

 

Total liabilities and stockholders’ equity

$

1,806,463

 

 

$

$

1,820,970

 

NU SKIN ENTERPRISES, INC.

Reconciliation of Operating Margin Excluding Impact of Certain Charges to GAAP Operating Margin

(in thousands, except for per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

December 31,

 

Year ended

December 31,

 

 

2023

 

2022

 

2023

 

2022

Operating Income

 

$

16,063

 

 

$

27,459

 

 

$

48,268

 

 

$

110,847

 

Impact of inventory write-off

 

 

-

 

 

 

-

 

 

 

65,728

 

 

 

26,905

 

Impact of restructuring and impairment

 

 

10,003

 

 

 

18,370

 

 

 

19,790

 

 

 

48,494

 

Impact of other charges(2)

 

 

5,260

 

 

 

-

 

 

 

5,260

 

 

 

-

 

Adjusted operating income

 

$

31,326

 

 

$

45,829

 

 

$

139,046

 

 

$

186,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating margin

 

 

3.3

%

 

 

5.3

%

 

 

2.5

%

 

 

5.0

%

Operating margin, excluding impact of certain charges

 

 

6.4

%

 

 

8.8

%

 

 

7.1

%

 

 

8.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

488,640

 

 

$

522,340

 

 

$

1,969,131

 

 

$

2,225,659

 

NU SKIN ENTERPRISES, INC.

Reconciliation of Effective Tax Rate Excluding Impact of Certain Charges to GAAP Effective Tax Rate

(in thousands, except for per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

December 31,

 

Year ended

December 31,

 

 

2023

 

2022

 

2023

 

2022

Provision (benefit) for income taxes

 

$

2,046

 

 

$

(32,860

)

 

$

17,983

 

 

$

(15,808

)

Impact of certain charges on provision for income taxes

 

 

4,081

 

 

 

31,284

 

 

 

7,324

 

 

 

42,838

 

Provision for income taxes, excluding impact of certain charges

 

$

6,127

 

 

$

(1,576

)

 

$

25,307

 

 

$

27,030

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

 

9,328

 

 

 

24,355

 

 

 

26,578

 

 

 

88,970

 

Impact of inventory write-off

 

 

-

 

 

 

-

 

 

 

65,728

 

 

 

26,905

 

Impact of restructuring and impairment

 

 

10,003

 

 

 

18,370

 

 

 

19,790

 

 

 

48,494

 

Impact of other charges(2)

 

 

5,260

 

 

 

-

 

 

 

5,260

 

 

 

-

 

Impact of charges associated with our exit from Grow Tech:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized investment loss

 

 

-

 

 

 

-

 

 

 

-

 

 

 

9,009

 

Income before provision for income taxes, excluding impact of certain charges

 

$

24,591

 

 

$

42,725

 

 

$

117,356

 

 

$

173,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective tax rate

 

 

21.9

%

 

 

(134.9

)%

 

 

67.7

%

 

 

(17.8

)%

Effective tax rate, excluding impact of certain charges

 

 

24.9

%

 

 

(3.7

)%

 

 

21.6

%

 

 

15.6

%

NU SKIN ENTERPRISES, INC.

Reconciliation of Earnings Per Share Excluding Impact of Certain Charges to GAAP Earnings Per Share

(in thousands, except for per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

December 31,

 

Year ended

December 31,

 

 

2023

 

2022

 

2023

 

2022

Net income

 

$

7,282

 

 

$

57,215

 

 

$

8,595

 

 

$

104,778

 

Impact of restructuring and inventory write-off expense:

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and impairment

 

 

10,003

 

 

 

18,370

 

 

 

19,790

 

 

 

48,494

 

Inventory write-off

 

 

-

 

 

 

-

 

 

 

65,728

 

 

 

26,905

 

Tax impact

 

 

(3,088

)

 

 

903

 

 

 

(6,331

)

 

 

(9,566

)

Impact of other charges: (2)

 

 

 

 

 

 

 

 

 

 

 

 

Impact of other charges

 

 

5,260

 

 

 

 

 

 

5,260

 

 

 

 

Tax impact

 

 

(993

)

 

 

-

 

 

 

(993

)

 

 

-

 

Impact of charges associated with our exit from Grow Tech:

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized loss on investment

 

 

-

 

 

 

-

 

 

 

-

 

 

 

9,009

 

Tax impact

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(1,085

)

Tax impact

 

 

-

 

 

 

(32,187

)

 

 

-

 

 

 

(32,187

)

Adjusted net income

 

$

18,464

 

 

$

44,301

 

 

$

92,049

 

 

$

146,348

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share

 

$

0.15

 

 

$

1.15

 

 

$

0.17

 

 

$

2.07

 

Diluted earnings per share, excluding impact of certain charges

 

$

0.37

 

 

$

0.89

 

 

$

1.85

 

 

$

2.90

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding (000)

 

 

49,479

 

 

 

49,783

 

 

 

49,860

 

 

 

50,525

 

(2) Other charges consist of a legal contingency ($3.0 million) and a non-recurring foreign tax charge ($2.3 million) that were recorded in the fourth quarter of 2023.

NU SKIN ENTERPRISES, INC.

Reconciliation of Earnings Per Share Excluding Impact of Restructuring to GAAP Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

March 31,

 

Year ended

December 31,

 

 

2024 - Low-end

 

2024 High-end

 

2024 - Low-end

 

2024 High-end

Earnings Per Share

 

$

(0.07

)

 

$

0.03

 

 

$

0.75

 

 

$

1.15

 

Impact of restructuring expense:

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring

 

 

0.10

 

 

 

0.10

 

 

 

0.30

 

 

 

0.30

 

Tax impact

 

 

(0.03

)

 

 

(0.03

)

 

 

(0.10

)

 

 

(0.10

)

Adjusted EPS

 

$

-

 

 

$

0.10

 

 

$

0.95

 

 

$

1.35

 

 

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