NU SKIN ENTERPRISES, INC.
Consolidated Balance Sheets (Unaudited)
(U.S. dollars in thousands)
March 31, 2006 | December 31, 2005 | ||||
---|---|---|---|---|---|
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ 129,773 | $ 155,409 | |||
Current investments | 15,825 | — | |||
Accounts receivable | 16,511 | 16,683 | |||
Inventories, net | 99,746 | 99,399 | |||
Prepaid expenses and other | 33,633 | 36,663 | |||
295,488 | 308,154 | ||||
Property and equipment, net | 71,754 | 84,053 | |||
Goodwill | 112,446 | 112,446 | |||
Other intangible assets, net | 93,653 | 91,137 | |||
Other assets | 83,486 | 83,076 | |||
Total assets | $ 656,827 | $ 678,866 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Accounts payable | $ 27,401 | $ 20,276 | |||
Accrued expenses | 97,501 | 112,023 | |||
Current portion of long-term debt | 26,779 | 26,757 | |||
151,681 | 159,056 | ||||
Long-term debt | 123,620 | 123,483 | |||
Other liabilities | 41,692 | 41,699 | |||
Total liabilities | 316,993 | 324,238 | |||
Commitments and contingencies (Note 10) | |||||
Stockholders' equity: | |||||
Class A common stock - 500 million shares authorized, $.001 | |||||
par value, 90.6 million shares issued | 91 | 91 | |||
Additional paid-in capital | 181,954 | 179,335 | |||
Treasury stock, at cost 20.4 million and 20.5 million shares | (283,950 | ) | (284,138 | ) | |
Accumulated other comprehensive loss | (67,451 | ) | (67,197 | ) | |
Retained earnings | 509,190 | 526,537 | |||
339,834 | 354,628 | ||||
Total liabilities and stockholders' equity | $ 656,827 | $ 678,866 |
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NU SKIN ENTERPRISES, INC.
Consolidated Statements of Income (Unaudited)
(U.S. dollars in thousands, except per share amounts)
Three Months Ended March 31, | |||||
---|---|---|---|---|---|
2006 | 2005 | ||||
Revenue | $ 265,780 | $ 289,351 | |||
Cost of sales | 46,994 | 49,664 | |||
Gross profit | 218,786 | 239,687 | |||
Operating expenses: | |||||
Selling expenses | 112,298 | 123,743 | |||
General and administrative expenses | 90,003 | 87,183 | |||
Impairment of assets and other | 20,840 | — | |||
Restructuring and other charges | 11,115 | — | |||
Total operating expenses | 234,256 | 210,926 | |||
Operating income (loss) | (15,470 | ) | 28,761 | ||
Other income (expense), net | (1,054 | ) | (655 | ) | |
Income (loss) before (provision) benefit for income taxes | (16,524 | ) | 28,106 | ||
(Provision) benefit for income taxes | 6,196 | (10,399 | ) | ||
Net income (loss) | $ (10,328 | ) | $ 17,707 | ||
Net income (loss) per share (Note 3): | |||||
Basic | $ (0.15 | ) | $ 0.25 | ||
Diluted | $ (0.15 | ) | $ 0.25 | ||
Weighted-average common shares outstanding: | |||||
Basic | 70,131 | 69,747 | |||
Diluted | 70,131 | 71,353 |
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NU SKIN ENTERPRISES, INC.
Consolidated Statements of Cash Flows (Unaudited)
(U.S. dollars in thousands)
Three Months Ended March 31, | |||||
---|---|---|---|---|---|
2006 | 2005 | ||||
Cash flows from operating activities: | |||||
Net income (loss) | $ (10,328 | ) | $ 17,707 | ||
Adjustments to reconcile net income (loss) to net cash provided by | |||||
operating activities: | |||||
Depreciation and amortization | 7,585 | 7,338 | |||
Amortization of deferred compensation | 246 | 194 | |||
Impairment of Scanner asset | 18,984 | — | |||
Stock option expense | 1,900 | — | |||
Changes in operating assets and liabilities: | |||||
Accounts receivable | 172 | (1,333 | ) | ||
Inventories, net | (347 | ) | (3,786 | ) | |
Prepaid expenses and other | (873 | ) | 4,761 | ||
Other assets | 428 | (2,681 | ) | ||
Accounts payable | 7,125 | (4,291 | ) | ||
Accrued expenses | (13,397 | ) | 10,783 | ||
Other liabilities | 118 | 385 | |||
Net cash provided by operating activities | 11,613 | 29,077 | |||
Cash flows from investing activities: | |||||
Purchases of property and equipment | (13,625 | ) | (8,845 | ) | |
Proceeds from investment sales | 54,555 | 48,705 | |||
Purchases of investments | (70,380 | ) | (44,250 | ) | |
Purchase of long-term asset | (1,981 | ) | (1,746 | ) | |
Net cash used in investing activities | (31,431 | ) | (6,136 | ) | |
Cash flows from financing activities: | |||||
Exercises of employee stock options | 651 | 1,709 | |||
Proceeds from long-term debt | — | 30,000 | |||
Payments of cash dividends | (7,019 | ) | (6,281 | ) | |
Income tax benefit of options exercised | 186 | — | |||
Repurchases of shares of common stock | (175 | ) | (5,045 | ) | |
Net cash provided by (used in) financing activities | (6,357 | ) | 20,383 | ||
Effect of exchange rate changes on cash | 539 | (2,387 | ) | ||
Net increase (decrease) in cash and cash equivalents | (25,636 | ) | 40,937 | ||
Cash and cash equivalents, beginning of period | 155,409 | 109,865 | |||
Cash and cash equivalents, end of period | $ 129,773 | $ 150,802 |
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