Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 21, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-34483 | |
Entity Registrant Name | NATURE’S SUNSHINE PRODUCTS, INC. | |
Entity Incorporation, State or Country Code | UT | |
Entity Tax Identification Number | 87-0327982 | |
Entity Address, Address Line One | 2901 Bluegrass Boulevard | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Lehi | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84043 | |
City Area Code | 801 | |
Local Phone Number | 341-7900 | |
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | NATR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 19,098,289 | |
Entity Central Index Key | 0000275053 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 68,970 | $ 60,032 |
Accounts receivable, net of allowance for doubtful accounts of $207 and $120, respectively | 12,468 | 14,106 |
Inventories | 65,858 | 67,949 |
Prepaid expenses and other | 8,609 | 7,420 |
Total current assets | 155,905 | 149,507 |
Property, plant and equipment, net | 45,373 | 46,162 |
Operating lease right-of-use assets | 15,322 | 16,145 |
Investment securities - trading | 740 | 702 |
Deferred income tax assets | 8,807 | 6,859 |
Other assets | 10,005 | 10,403 |
Total assets | 236,152 | 229,778 |
Current liabilities: | ||
Accounts payable | 6,938 | 6,349 |
Accrued volume incentives and service fees | 24,239 | 21,830 |
Accrued liabilities | 29,132 | 25,591 |
Deferred revenue | 1,430 | 2,255 |
Income taxes payable | 4,061 | 4,117 |
Current portion of operating lease liabilities | 4,674 | 4,266 |
Current portion of note payable | 537 | 1,174 |
Total current liabilities | 71,011 | 65,582 |
Liability related to unrecognized tax benefits | 215 | 209 |
Long-term portion of operating lease liabilities | 12,549 | 13,745 |
Deferred compensation payable | 740 | 702 |
Deferred income tax liabilities | 1,198 | 1,439 |
Other liabilities | 1,041 | 1,054 |
Total liabilities | 86,754 | 82,731 |
Shareholders’ equity: | ||
Common stock, no par value, 50,000 shares authorized, 19,098 and 19,093 shares issued and outstanding, respectively | 122,902 | 121,583 |
Retained earnings | 37,917 | 34,635 |
Noncontrolling interest | 4,790 | 4,142 |
Accumulated other comprehensive loss | (16,211) | (13,313) |
Total shareholders’ equity | 149,398 | 147,047 |
Total liabilities and shareholders’ equity | $ 236,152 | $ 229,778 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 207 | $ 120 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 50,000 | 50,000 |
Common stock, shares outstanding (in shares) | 19,098 | 19,093 |
Common stock, shares issued (in shares) | 19,098 | 19,093 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Statement [Abstract] | ||||
Net sales | $ 116,548 | $ 104,161 | $ 225,182 | $ 214,655 |
Cost of sales | 31,924 | 29,471 | 63,616 | 63,931 |
Gross profit | 84,624 | 74,690 | 161,566 | 150,724 |
Operating expenses: | ||||
Volume incentives | 35,314 | 32,069 | 68,442 | 66,171 |
Selling, general and administrative | 42,273 | 36,866 | 85,915 | 77,489 |
Operating income | 7,037 | 5,755 | 7,209 | 7,064 |
Other loss, net | (1,087) | (442) | 427 | (756) |
Income before provision for income taxes | 5,950 | 5,313 | 7,636 | 6,308 |
Provision for income taxes | 3,273 | 4,361 | 3,706 | 8,042 |
Net income (loss) | 2,677 | 952 | 3,930 | (1,734) |
Net income attributable to noncontrolling interests | 255 | 436 | 648 | 700 |
Net income (loss) attributable to common shareholders | $ 2,422 | $ 516 | $ 3,282 | $ (2,434) |
Basic and diluted net income per common share: | ||||
Basic earnings (loss) per share attributable to common shareholders (in dollars per share) | $ 0.13 | $ 0.03 | $ 0.17 | $ (0.12) |
Diluted earnings (loss) per share attributable to common shareholders (in dollars per share) | $ 0.12 | $ 0.03 | $ 0.17 | $ (0.12) |
Weighted average basic common shares outstanding (in shares) | 19,293 | 19,386 | 19,073 | 19,479 |
Weighted average diluted common shares outstanding (in shares) | 19,747 | 19,594 | 19,460 | 19,479 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 2,677 | $ 952 | $ 3,930 | $ (1,734) |
Foreign currency translation loss (net of tax) | (1,245) | (2,457) | (2,898) | (3,432) |
Total comprehensive income (loss) | $ 1,432 | $ (1,505) | $ 1,032 | $ (5,166) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Retained Earnings | Noncontrolling Interest | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Dec. 31, 2021 | 19,724 | ||||
Beginning balance at Dec. 31, 2021 | $ 161,404 | $ 133,382 | $ 35,025 | $ 3,202 | $ (10,205) |
Increase (Decrease) in Shareholders' Equity | |||||
Share-based compensation expense | 801 | $ 801 | |||
Shares issued from the exercise of stock options and vesting of restricted stock units, net of shares exchanged for withholding tax (in shares) | 218 | ||||
Shares issued from the exercise of stock options and vesting of restricted stock units, net of shares exchanged for withholding tax | (795) | $ (795) | |||
Repurchase of common stock (in shares) | (451) | ||||
Repurchase of common stock | (7,971) | $ (7,971) | |||
Net income (loss) | (2,686) | (2,950) | 264 | ||
Other comprehensive loss | (975) | (975) | |||
Ending balance (in shares) at Mar. 31, 2022 | 19,491 | ||||
Ending balance at Mar. 31, 2022 | 149,778 | $ 125,417 | 32,075 | 3,466 | (11,180) |
Beginning balance (in shares) at Dec. 31, 2021 | 19,724 | ||||
Beginning balance at Dec. 31, 2021 | $ 161,404 | $ 133,382 | 35,025 | 3,202 | (10,205) |
Increase (Decrease) in Shareholders' Equity | |||||
Repurchase of common stock (in shares) | (741) | ||||
Repurchase of common stock | $ (12,000) | ||||
Net income (loss) | (1,734) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 19,259 | ||||
Ending balance at Jun. 30, 2022 | 144,479 | $ 121,623 | 32,591 | 3,902 | (13,637) |
Beginning balance (in shares) at Mar. 31, 2022 | 19,491 | ||||
Beginning balance at Mar. 31, 2022 | 149,778 | $ 125,417 | 32,075 | 3,466 | (11,180) |
Increase (Decrease) in Shareholders' Equity | |||||
Share-based compensation expense | 540 | $ 540 | |||
Shares issued from the exercise of stock options and vesting of restricted stock units, net of shares exchanged for withholding tax (in shares) | 58 | ||||
Shares issued from the exercise of stock options and vesting of restricted stock units, net of shares exchanged for withholding tax | (334) | $ (334) | |||
Repurchase of common stock (in shares) | (290) | ||||
Repurchase of common stock | (4,000) | $ (4,000) | |||
Net income (loss) | 952 | 516 | 436 | ||
Other comprehensive loss | (2,457) | (2,457) | |||
Ending balance (in shares) at Jun. 30, 2022 | 19,259 | ||||
Ending balance at Jun. 30, 2022 | $ 144,479 | $ 121,623 | 32,591 | 3,902 | (13,637) |
Beginning balance (in shares) at Dec. 31, 2022 | 19,093 | 19,093 | |||
Beginning balance at Dec. 31, 2022 | $ 147,047 | $ 121,583 | 34,635 | 4,142 | (13,313) |
Increase (Decrease) in Shareholders' Equity | |||||
Share-based compensation expense | 1,058 | $ 1,058 | |||
Shares issued from the exercise of stock options and vesting of restricted stock units, net of shares exchanged for withholding tax (in shares) | 42 | ||||
Shares issued from the exercise of stock options and vesting of restricted stock units, net of shares exchanged for withholding tax | (165) | $ (165) | |||
Repurchase of common stock (in shares) | (90) | ||||
Repurchase of common stock | (823) | $ (823) | |||
Net income (loss) | 1,253 | 860 | 393 | ||
Other comprehensive loss | (1,653) | (1,653) | |||
Ending balance (in shares) at Mar. 31, 2023 | 19,045 | ||||
Ending balance at Mar. 31, 2023 | $ 146,717 | $ 121,653 | 35,495 | 4,535 | (14,966) |
Beginning balance (in shares) at Dec. 31, 2022 | 19,093 | 19,093 | |||
Beginning balance at Dec. 31, 2022 | $ 147,047 | $ 121,583 | 34,635 | 4,142 | (13,313) |
Increase (Decrease) in Shareholders' Equity | |||||
Repurchase of common stock (in shares) | (99) | ||||
Repurchase of common stock | $ (900) | ||||
Net income (loss) | $ 3,930 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 19,098 | 19,098 | |||
Ending balance at Jun. 30, 2023 | $ 149,398 | $ 122,902 | 37,917 | 4,790 | (16,211) |
Beginning balance (in shares) at Mar. 31, 2023 | 19,045 | ||||
Beginning balance at Mar. 31, 2023 | 146,717 | $ 121,653 | 35,495 | 4,535 | (14,966) |
Increase (Decrease) in Shareholders' Equity | |||||
Share-based compensation expense | 1,437 | $ 1,437 | |||
Shares issued from the exercise of stock options and vesting of restricted stock units, net of shares exchanged for withholding tax (in shares) | 62 | ||||
Shares issued from the exercise of stock options and vesting of restricted stock units, net of shares exchanged for withholding tax | (91) | $ (91) | |||
Repurchase of common stock (in shares) | (9) | ||||
Repurchase of common stock | (97) | $ (97) | |||
Net income (loss) | 2,677 | 2,422 | 255 | ||
Other comprehensive loss | $ (1,245) | (1,245) | |||
Ending balance (in shares) at Jun. 30, 2023 | 19,098 | 19,098 | |||
Ending balance at Jun. 30, 2023 | $ 149,398 | $ 122,902 | $ 37,917 | $ 4,790 | $ (16,211) |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 3,930 | $ (1,734) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Provision for doubtful accounts | 94 | 417 |
Depreciation and amortization | 5,638 | 5,451 |
Non-cash lease expense | 2,104 | 2,785 |
Share-based compensation expense | 2,495 | 1,341 |
Deferred income taxes | (2,323) | 5,338 |
Purchase of trading investment securities | 0 | (19) |
Proceeds from sale of trading investment securities | 54 | 69 |
Realized and unrealized gains (losses) on investments | (92) | 170 |
Foreign exchange losses | (309) | 803 |
Changes in assets and liabilities: | ||
Accounts receivable | 1,042 | (2,801) |
Inventories | 1,626 | (11,910) |
Prepaid expenses and other current assets | (1,235) | (1,357) |
Other assets | (87) | (33) |
Accounts payable | 520 | (80) |
Accrued volume incentives and service fees | 2,882 | 1,045 |
Accrued liabilities | 3,654 | (4,001) |
Deferred revenue | (811) | (1,718) |
Lease liabilities | (2,040) | (2,503) |
Income taxes payable | 78 | (386) |
Liability related to unrecognized tax benefits | 6 | 0 |
Deferred compensation payable | 38 | (220) |
Net cash provided by (used in) operating activities | 17,264 | (9,343) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (4,747) | (3,757) |
Net cash used in investing activities | (4,747) | (3,757) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments of long-term debt | (637) | (618) |
Proceeds from revolving credit facility | 13,503 | 15,645 |
Principal payments of revolving credit facility | (13,503) | (15,645) |
Principal payments of related party borrowing | 0 | (300) |
Payments related to tax withholding for net-share settled equity awards | (256) | (1,129) |
Repurchase of common stock | (920) | (11,971) |
Net cash used in financing activities | (1,813) | (14,018) |
Effect of exchange rates on cash and cash equivalents | (1,766) | (2,722) |
Net increase (decrease) in cash and cash equivalents | 8,938 | (29,840) |
Cash and cash equivalents at the beginning of the period | 60,032 | 86,184 |
Cash and cash equivalents at the end of the period | 68,970 | 56,344 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid for income taxes, net of refunds | 5,129 | 4,173 |
Cash paid for interest | $ 114 | $ 113 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation We are a natural health and wellness company primarily engaged in the manufacture and sale of nutritional and personal care products. We are a Utah corporation with our principal place of business in Lehi, Utah, and sell our products directly to customers and to a sales force of independent consultants who use the products themselves or resell them to consumers. Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals), considered necessary for a fair presentation of our financial information as of June 30, 2023, and for the three and six-month periods ended June 30, 2023 and 2022. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2023. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities, in these financial statements and accompanying notes. Actual results could differ from these estimates and those differences could have a material effect on our financial position and results of operations. The significant accounting estimates inherent in the preparation of our financial statements include estimates associated with our determination of liabilities related to independent consultant incentives, the determination of income tax assets and liabilities, certain other non-income tax and value-added tax contingencies, and legal contingencies. In addition, significant estimates form the basis for allowances with respect to inventory valuations. Various assumptions and other factors enter into the determination of these significant estimates. The process of determining significant estimates takes into account historical experience and current and expected economic conditions. Noncontrolling Interests Noncontrolling interests changed as a result of the net income attributable to noncontrolling interests of $0.3 million and $0.6 million for the three and six months ended June 30, 2023, respectively. Net income attributable to the noncontrolling interests was $0.4 million and $0.7 million for the three and six months ended June 30, 2022, respectively. As of June 30, 2023 and December 31, 2022, noncontrolling interests were $4.8 million and $4.1 million, respectively. Recent Accounting Pronouncements No new accounting pronouncement issued or effective during the three months ended June 30, 2023, had, or is expected to have, a material impact on our condensed consolidated financial statements. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The composition of inventories is as follows (dollar amounts in thousands): June 30, December 31, Raw materials $ 20,638 $ 23,133 Work in progress 1,497 1,713 Finished goods 43,723 43,103 Total inventories $ 65,858 $ 67,949 |
Investment Securities - Trading
Investment Securities - Trading | 6 Months Ended |
Jun. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities - Trading | Investment Securities - Trading Our trading securities portfolio totaled $0.7 million at June 30, 2023, and $0.7 million at December 31, 2022, and generated gains of $45,000 and losses of $0.1 million for the three months ended June 30, 2023 and 2022, respectively, and gains of $0.1 million and losses of $0.2 million for the six months ended June 30, 2023 and 2022, respectively. |
Revolving Credit Facility and O
Revolving Credit Facility and Other Obligations | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Revolving Credit Facility and Other Obligations | Revolving Credit Facility and Other Obligations On July 11, 2017, we entered into a revolving credit agreement with Bank of America, N.A., with a borrowing limit of $25.0 million (the “Credit Agreement”). On June 23, 2022 the Credit Agreement was amended to extend the term to mature on July 1, 2027 and allows for additional borrowings of $25.0 million or up to three separate increases of no less than $5.0 million each, subject to the lender's due diligence. The amendment to the Credit Agreement also modified the calculation of interest. Interest under the amended Credit Agreement is the greater of BSBY Daily Floating Rate or the Index Floor, plus 1.50 percent (6.67 percent as of June 30, 2023), and an annual commitment fee of 0.25 percent on the unused portion of the commitment. At June 30, 2023 and December 31, 2022, there was no outstanding balance under the Credit Agreement. The Credit Agreement contains customary financial covenants, including financial covenants relating to our solvency and leverage. In addition, the Credit Agreement restricts certain capital expenditures, lease expenditures, other indebtedness, liens on assets, guarantees, loans and advances, dividends, mergers, consolidations and transfers of assets except as permitted in the Credit Agreement. The Credit Agreement is collateralized by our manufacturing facility, accounts receivable, inventories and other assets. As of June 30, 2023, we were in compliance with the debt covenants set forth in the Credit Agreement. On April 21, 2020, we entered into a credit agreement with Banc of America Leasing and Capital, LLC, with a borrowing limit of $6.0 million (the "Capital Credit Agreement"). On November 19, 2020, we executed on the Capital Credit Agreement and borrowed $3.7 million. We pay interest on any borrowings under the Capital Credit Agreement at a fixed rate of 3.00 percent and are required to settle our borrowings under the Capital Credit Agreement in 36 monthly payments of $0.1 million. The Capital Credit Agreement is collateralized by any new equipment purchased under the agreement. As of June 30, 2023, there was $0.5 million outstanding balance under the Capital Credit Agreement, of which $0.5 million was classified as current. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per common share (“Basic EPS”), is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share. Following is a reconciliation of the numerator and denominator of Basic EPS to the numerator and denominator of Diluted EPS for the three and six months ended June 30, 2023 and 2022 (dollar and share amounts in thousands, except for per share information): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net income (loss) attributable to common shareholders $ 2,422 $ 516 $ 3,282 $ (2,434) Basic weighted average shares outstanding 19,293 19,386 19,073 19,479 Basic earnings (loss) per share attributable to common shareholders $ 0.13 $ 0.03 $ 0.17 $ (0.12) Diluted shares outstanding: Basic weighted-average shares outstanding 19,293 19,386 19,073 19,479 Stock-based awards 454 208 387 — Diluted weighted-average shares outstanding 19,747 19,594 19,460 19,479 Diluted earnings (loss) per share attributable to common shareholders $ 0.12 $ 0.03 $ 0.17 $ (0.12) Dilutive shares excluded from diluted-per-share amounts: Share-based awards 735 341 735 — Anti-dilutive shares excluded from diluted-per-share amounts: Share-based awards 77 25 102 341 (1) _________________________________________ (1) As a result of the net loss for the six months ended June 30, 2022, no potentially dilutive securities are included in the calculation of diluted loss per share because such effect would be anti-dilutive. Potentially dilutive securities for the six months ended June 30, 2022 include 341 restricted stock units. Potentially dilutive shares excluded from diluted-per-share amounts include performance-based restricted stock units, for which certain metrics have not been achieved. Potentially anti-dilutive shares excluded from diluted-per-share amounts include both non-qualified stock options and unearned performance-based options to purchase shares of common stock with exercise prices greater than the weighted-average share price during the period and shares that would be anti-dilutive to the computation of diluted net income per share for each of the periods presented. |
Capital Transactions
Capital Transactions | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Capital Transactions | Capital Transactions Dividends The declaration of future dividends is subject to the discretion of our Board of Directors and will depend upon various factors, including earnings, financial condition, restrictions imposed by any indebtedness that may be outstanding, cash requirements, future prospects and other factors deemed relevant by our Board of Directors. Share Repurchase Program On March 10, 2021, we announced a $15.0 million common share repurchase program. On March 8, 2022 we announced an amendment to the share repurchase program allowing the repurchase of an additional $30.0 million in common shares. The repurchases may be made from time to time as market conditions warrant and are subject to regulatory considerations. For the six months ended June 30, 2023 and 2022, we repurchased 99,000 and 741,000 shares of our common stock for $0.9 million and $12.0 million, respectively. At June 30, 2023, the remaining balance available for repurchases under the program was $23.1 million. Share-Based Compensation During the year ended December 31, 2012, our shareholders adopted and approved the Nature’s Sunshine Products, Inc. 2012 Stock Incentive Plan. The 2012 Incentive Plan provides for the grant of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock, restricted stock units, dividend equivalent rights, performance awards, stock awards and other stock-based awards. The Compensation Committee of the Board of Directors has authority and discretion to determine the type of award, as well as the amount, terms and conditions of each award under the 2012 Incentive Plan, subject to the limitations of the 2012 Incentive Plan. A total of 1,500,000 shares of our common stock were originally authorized for the granting of awards under the 2012 Incentive Plan. In 2015, our shareholders approved an amendment to the 2012 Incentive Plan, to increase the number of shares of common stock reserved for issuance by 1,500,000 shares. On May 5, 2021, our shareholders approved the Amended and Restated 2012 Stock Incentive Plan, which among other amendments, increased the number of shares of common stock reserved for issuance by 2,000,000 shares. The number of shares available for awards, as well as the terms of outstanding awards, are subject to adjustment as provided in the Amended and Restated 2012 Incentive Plan for stock splits, stock dividends, recapitalizations and other similar events. Stock Options Our outstanding stock options include time-based stock options, which vest over differing periods of time ranging from the date of issuance to up to 48 months from the option grant date, and performance-based stock options, which have already vested upon achieving operating income margins of six, eight and ten percent as reported in four of five consecutive quarters over the term of the options. Stock option activity for the six-month period ended June 30, 2023, is as follows (amounts in thousands, except per share information): Number of Weighted Average Weighted Average Options outstanding at December 31, 2022 143 $ 12.72 $ 5.28 Granted — — — Forfeited or canceled (17) 11.98 6.16 Exercised — — — Options outstanding at June 30, 2023 126 $ 12.81 $ 5.16 There was no share-based compensation expense for the three- and six-month periods ended June 30, 2023 and 2022. As of June 30, 2023 and December 31, 2022, there was no unrecognized share-based compensation expense related to the grants described above. At June 30, 2023, the aggregate intrinsic value of outstanding and exercisable stock options to purchase 126,000 shares of common stock was $29,000. At December 31, 2022, the aggregate intrinsic value of outstanding and exercisable options to purchase 143,000 shares of common stock was $0. For the six months ended June 30, 2023, no shares of common stock were issued upon the exercise of stock options. For the six months ended June 30, 2022, we issued 29,000 shares of common stock upon the exercise of stock options at an average exercise price of $9.17. The aggregate intrinsic value of options exercised during the six months ended June 30, 2022, was $0.3 million and the Company recognized $0.1 million of tax benefits from the exercise of stock options. As of June 30, 2023 and December 31, 2022, we did not have any unvested stock options outstanding. Restricted Stock Units Our outstanding restricted stock units (“RSUs”), include time-based RSUs, which vest over differing periods of time ranging from 12 months to up to 36 months from the RSU grant date, as well as performance-based RSUs, which vest upon achieving targets relating to adjusted EBITDA growth, and/or stock price levels. RSUs granted to members of the Board of Directors contain a restriction period in which the shares are not issued until two years after vesting. At June 30, 2023 and December 31, 2022, there were 74,000 and 94,000 vested RSUs, respectively, granted to the Board of Directors with an accompanying restriction period. Restricted stock unit activity for the six-month period ended June 30, 2023, is as follows (amounts in thousands, except per share information): Number of Weighted Average Restricted Stock Units outstanding at December 31, 2022 1,091 $ 10.76 Granted 507 10.57 Forfeited (45) 2.80 Issued (128) 10.03 Restricted Stock Units outstanding at June 30, 2023 1,425 11.01 During the six-month period ended June 30, 2023, we granted 507,000 RSUs under the 2012 Incentive Plan to the Board of Directors, executive officers and other employees, which were comprised of time-based RSUs, and share-priced and adjusted EBITDA performance-based RSUs. The time-based RSUs were issued with a weighted-average grant date fair value of $10.44 per share and vest in 12 monthly installments over a one year period from the grant date or in annual installments over a three-year period from the grant date. The adjusted EBITDA performance-based RSUs were issued with a weighted-average grant date fair value of $10.74 per share and vest upon achieving adjusted EBITDA targets and maintaining those targets over a four-quarter Except for share-priced performance RSUs, RSUs are valued at market value on the date of grant, which is the grant date share price discounted for expected dividend payments during the vesting period. For RSUs with post-vesting restrictions, a Finnerty Model was utilized to calculate a valuation discount from the market value of common shares reflecting the restriction embedded in the RSUs preventing the sale of the underlying shares over a certain period of time. Using assumptions previously determined for the application of the option pricing model at the valuation date, the Finnerty Model discount for lack of marketability is approximately 11.9 percent for a common share. Share-based compensation expense related to time-based RSUs for the three-month periods ended June 30, 2023 and 2022, was approximately $1.1 million and $0.3 million, respectively. Share-based compensation expense related to time-based RSUs for the six-month periods ended June 30, 2023 and 2022, was approximately $1.9 million and $0.9 million, respectively. As of June 30, 2023 and December 31, 2022, the unrecognized share-based compensation expense related to the grants described above, excluding incentive awards discussed below, was $4.2 million and $3.0 million, respectively. The remaining compensation expense is expected to be recognized over the weighted average period of approximately 0.8 years. Share-based compensation expense related to performance-based RSUs for the three-month periods ended June 30, 2023 and 2022, was $0.3 million and $0.2 million, respectively. Share-based compensation expense related to performance-based RSUs for the six-month periods ended June 30, 2023 and 2022, was $0.6 million and $0.5 million, respectively. Should we attain all of the metrics related to performance-based RSU grants, we would recognize up to $6.5 million of potential share-based compensation expense. We currently expect to recognize an additional $3.4 million of that potential share-based compensation expense. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have four business segments (Asia, Europe, North America, and Latin America and Other) based primarily upon the geographic region where each segment operates, as well as the internal organization of our officers and their responsibilities. The geographic segments operate under the Nature’s Sunshine Products and Synergy WorldWide® brands. The Latin America and Other segment includes our wholesale business in which we sell products to various locally-managed entities independent of the Company that we have granted distribution rights for the relevant market. Net sales for each segment have been reduced by intercompany sales as they are not included in the measure of segment profit or loss reviewed by the chief executive officer. We evaluate performance based on contribution margin by segment before consideration of certain inter-segment transfers and expenses. Reportable business segment information is as follows (dollar amounts in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net sales: Asia $ 54,875 $ 47,382 $ 101,220 $ 93,492 Europe 21,236 17,099 42,641 38,876 North America 34,658 34,082 69,306 70,063 Latin America and Other 5,779 5,598 12,015 12,224 Total net sales 116,548 104,161 225,182 214,655 Contribution margin (1): Asia 26,899 21,432 48,850 43,371 Europe 6,130 6,595 12,666 10,968 North America 13,902 12,300 26,763 25,019 Latin America and Other 2,379 2,294 4,845 5,195 Total contribution margin 49,310 42,621 93,124 84,553 Selling, general and administrative expenses (2) 42,273 36,866 85,915 77,489 Operating income 7,037 5,755 7,209 7,064 Other income (loss), net (1,087) (442) 427 (756) Income before provision for income taxes $ 5,950 $ 5,313 $ 7,636 $ 6,308 _________________________________________ (1) Contribution margin consists of net sales less cost of sales and volume incentives expense. (2) Service fees in China totaled $5.2 million and $8.9 million for the three and six-month periods ended June 30, 2023, respectively, compared to $3.9 million and $8.8 million for the three and six-month periods ended June 30, 2022. These service fees are included in selling, general and administrative expenses. From an individual country/region perspective, the United States, South Korea and Taiwan comprise 10 percent or more of consolidated net sales for the three and six-month periods ended June 30, 2023 and 2022, as follows (dollar amounts in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net sales: United States $ 32,088 $ 31,483 $ 64,074 $ 64,712 South Korea 13,832 14,465 25,072 28,118 Taiwan 16,041 11,933 30,216 21,683 Other 54,587 46,280 105,820 100,142 $ 116,548 $ 104,161 $ 225,182 $ 214,655 Net sales generated by each of our product lines is set forth below (dollar amounts in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Asia General health $ 18,158 $ 12,319 $ 31,922 $ 25,305 Immune 1,312 781 1,774 2,125 Cardiovascular 14,840 13,242 29,735 26,872 Digestive 11,564 10,990 20,986 20,026 Personal care 1,442 2,083 2,783 4,626 Weight management 7,559 7,967 14,020 14,538 54,875 47,382 101,220 93,492 Europe General health $ 8,615 $ 7,328 $ 17,789 $ 16,524 Immune 2,141 1,443 4,425 4,074 Cardiovascular 2,302 2,150 4,821 4,783 Digestive 6,331 4,481 12,069 10,072 Personal care 1,254 1,209 2,431 2,442 Weight management 593 488 1,106 981 21,236 17,099 42,641 38,876 North America General health $ 15,857 $ 14,954 $ 31,390 $ 30,268 Immune 3,732 4,061 8,053 8,933 Cardiovascular 3,761 3,893 7,349 7,735 Digestive 8,761 9,044 17,492 17,638 Personal care 1,634 1,389 3,098 3,564 Weight management 913 741 1,924 1,925 34,658 34,082 69,306 70,063 Latin America and Other General health $ 1,600 $ 1,597 $ 3,237 $ 3,415 Immune 668 755 1,412 1,516 Cardiovascular 433 455 899 812 Digestive 2,585 2,551 5,470 5,392 Personal care 341 80 692 721 Weight management 152 160 305 368 5,779 5,598 12,015 12,224 $ 116,548 $ 104,161 $ 225,182 $ 214,655 From an individual country perspective, only the United States comprised 10 percent or more of consolidated property, plant and equipment as follows (dollar amounts in thousands): June 30, December 31, Property, plant and equipment: United States $ 42,190 $ 42,389 Other 3,183 3,773 Total property, plant and equipment, net $ 45,373 $ 46,162 Total assets per segment is set forth below (dollar amounts in thousands): June 30, December 31, Assets: Asia $ 96,686 $ 95,362 Europe 20,520 15,773 North America 111,627 112,319 Latin America and Other 7,319 6,324 Total assets $ 236,152 $ 229,778 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes For the three months ended June 30, 2023 and 2022, our provision for income taxes, as a percentage of income before income taxes was 55.0 percent and 82.1 percent, respectively, compared with a U.S. federal statutory rate of 21.0 percent. For the six months ended June 30, 2023 and 2022, our provision for income taxes, as a percentage of income before income taxes was 48.5 percent and 127.5 percent, respectively, compared with a U.S. federal statutory rate of 21.0 percent. The difference between the effective tax rate and the U.S. federal statutory tax rate for the three and six months ended June 30, 2023, was primarily attributed to adjustments relating to operations in foreign countries which are treated as a branch for US tax purposes as well as recording a valuation allowance against deferred tax assets which are expected to expire before utilization. The difference between the effective tax rate and the U.S. federal statutory tax rate for the three and six months ended June 30, 2022, was primarily attributed to recording a valuation allowance against deferred tax assets which were expected to expire before utilization. The difference between the effective tax rate for the three and six months ended June 30, 2023 compared to June 30, 2022 is primarily caused by recording more valuation allowance in the prior period against deferred tax assets which were not expected to provide a benefit. Our U.S. federal income tax returns for 2019 through 2021 are open to examination for federal tax purposes. We have several foreign tax jurisdictions with open tax years from 2017 through 2022. As of June 30, 2023 and December 31, 2022, we have accrued $0.2 million and $0.2 million, respectively, related to unrecognized tax positions. Interim income taxes are based on an estimated annualized effective tax rate applied to the respective quarterly periods, adjusted for discrete tax items in the period in which they occur. Although we believe our tax estimates are reasonable, we can make no assurance that the final tax outcome of these matters will not be different from that which we have reflected in our historical income tax provisions and accruals. Such differences could have a material impact on our income tax provision and operating results in the period in which we make such determination. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal Proceedings We are party to various legal proceedings and disputes. Management cannot predict the ultimate outcome of these matters, individually or in the aggregate, or their resulting effect on our business, financial position, results of operations or cash flows as litigation and related matters are subject to inherent uncertainties, and unfavorable rulings could occur. Were an unfavorable outcome to occur, there exists the possibility of a material adverse impact on our business, financial position, results of operations, or cash flows for the period in which the ruling occurs and/or future periods. We maintain product liability, general liability and excess liability insurance coverage. However, insurance may not continue to be available at an acceptable cost to us, such coverage may not be sufficient to cover one or more large claims, or the insurers may successfully disclaim coverage as to a pending or future claim. Non-Income Tax Contingencies We have reserved for certain state sales and use tax and foreign non-income tax contingencies based on the likelihood of an obligation in accordance with accounting guidance for probable loss contingencies. Loss contingency provisions are recorded for probable losses at management’s best estimate of a loss, or when a best estimate cannot be made, a minimum loss contingency amount is recorded. We provide provisions for potential payments of tax to various tax authorities for contingencies related to non-income tax matters, including value-added taxes and sales tax. We provide provisions for U.S. state sales taxes in each of the states where we have nexus. As of June 30, 2023 and December 31, 2022, accrued liabilities were $0.3 million and $0.3 million, respectively, related to non-income tax contingencies. While we believe that the assumptions and estimates used to determine contingent liabilities are reasonable, the ultimate outcome of these matters cannot presently be determined. We believe future payments related to these matters could range from $0 to approximately $2.9 million. Other Litigation |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values of each financial instrument. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is defined into the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. The following table presents our hierarchy for our assets, measured at fair value on a recurring basis, as of June 30, 2023 (dollar amounts in thousands): Level 1 Level 2 Level 3 Quoted Prices Significant Significant Total Investment securities - trading $ 740 $ — $ — $ 740 Total assets measured at fair value on a recurring basis $ 740 $ — $ — $ 740 The following table presents our hierarchy for our assets, measured at fair value on a recurring basis, as of December 31, 2022 (dollar amounts in thousands): Level 1 Level 2 Level 3 Quoted Prices Significant Significant Total Investment securities - trading $ 702 $ — $ — $ 702 Total assets measured at fair value on a recurring basis $ 702 $ — $ — $ 702 Investment securities - trading — Our trading portfolio consists of various marketable securities that are valued using quoted prices in active markets. For the six months ended June 30, 2023 and for the year ended December 31, 2022, there were no fair value measurements using significant other observable inputs (Level 2) or significant unobservable inputs (Level 3). The carrying amounts reflected on the condensed consolidated balance sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to their short-term nature. The carrying value of our debt approximates fair value due to its recent acquisition and short maturity. During the six months ended June 30, 2023 and 2022, we did not have any re-measurements of non-financial assets at fair value on a nonrecurring basis subsequent to their initial recognition. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue Recognition Net sales include sales of products and shipping and handling charges, net of estimates for product returns and any related sales incentives or rebates based upon historical information and current trends. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. We recognize revenue by transferring the promised products to the customer, with revenue recognized at shipping point, the point in time the customer obtains control of the products. The majority of our contracts have a single performance obligation and are short term in nature. Contracts with multiple performance obligations are insignificant. Sales taxes and value-added taxes in the United States and foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Amounts received for unshipped merchandise are recorded as deferred revenue. Amounts for membership fees are deferred and amortized as revenue over the life of the membership, primarily one year. A reserve for product returns is recorded based upon historical experience and current trends. We allow independent consultants to return the unused portion of products within ninety days of purchase if they are not satisfied with the product. In some of our markets, the requirements to return product are more restrictive. Amounts billed to customers for shipping and handling are reported as a component of net sales. Volume incentives and other sales incentives or rebates are a significant part of our direct sales marketing program and represent commission payments made to independent consultants. These payments are designed to provide incentives for reaching higher sales levels. The amount of volume incentive expense recognized is determined based upon the amount of qualifying purchases in a given month and recorded as volume incentive expense. Payments to independent consultants for sales incentives or rebates related to their own purchases are recorded as a reduction of revenue. Some payments for sales incentives are processed daily; while others, including rebates, are calculated monthly based upon qualifying sales. Disaggregation of Revenue Our products are grouped into six principal categories: general health, immune, cardiovascular, digestive, personal care and weight management. We have four business segments that are based primarily upon the geographic region where each segment operates. Each of the geographic segments operate under the Nature’s Sunshine Products and Synergy WorldWide® brands. See Note 7, Segment Information, for further information on our reportable segments and presentation of disaggregated revenue by reportable segment and product category. Practical Expedients and Exemptions We have made the accounting policy election to treat shipping and handling as a fulfillment activity rather than a promised service under Topic 606. |
Synergy Japan Loss
Synergy Japan Loss | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Synergy Japan Loss | Synergy Japan LossOn February 17, 2023, we became aware that Synergy Worldwide Japan G.K., a Japan entity and wholly owned subsidiary of the Company (“Synergy Japan”), was the victim of a criminal scheme involving employee impersonation and fraudulent requests targeting Synergy Japan. The criminal scheme resulted in a series of fraudulently induced wire transfers between February 1, 2023, and February 17, 2023 totaling $4.8 million. We promptly launched an investigation, led by an independent third party, to determine the full extent of the fraud scheme and related potential exposure. We self-discovered this fraudulent activity and promptly initiated contact with our bank as well as appropriate law enforcement authorities in an effort to, among other things, recover the transferred funds. To date, we have not found any evidence of additional fraudulent activity and do not believe the incident resulted in any unauthorized access to confidential consumer information or other data maintained by the Company. As a result of this matter, we incurred investigation and other professional fees of $1.0 million, which along with the initial $4.8 million loss, were recorded in Selling, General and Administrative expense for the six months ended June 30, 2023. We do not expect this incident to otherwise have a material impact on our business. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation We are a natural health and wellness company primarily engaged in the manufacture and sale of nutritional and personal care products. We are a Utah corporation with our principal place of business in Lehi, Utah, and sell our products directly to customers and to a sales force of independent consultants who use the products themselves or resell them to consumers. |
Principles of Consolidation | Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. The unaudited condensed consolidated financial statements include the accounts of the Company and its subsidiaries. All intercompany accounts and transactions are eliminated in consolidation. In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments (consisting of normal recurring accruals), considered necessary for a fair presentation of our financial information as of June 30, 2023, and for the three and six-month periods ended June 30, 2023 and 2022. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the year ending December 31, 2023. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2022. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities, in these financial statements and accompanying notes. Actual results could differ from these estimates and those differences could have a material effect on our financial position and results of operations. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements No new accounting pronouncement issued or effective during the three months ended June 30, 2023, had, or is expected to have, a material impact on our condensed consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Composition of Inventories | The composition of inventories is as follows (dollar amounts in thousands): June 30, December 31, Raw materials $ 20,638 $ 23,133 Work in progress 1,497 1,713 Finished goods 43,723 43,103 Total inventories $ 65,858 $ 67,949 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Following is a reconciliation of the numerator and denominator of Basic EPS to the numerator and denominator of Diluted EPS for the three and six months ended June 30, 2023 and 2022 (dollar and share amounts in thousands, except for per share information): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net income (loss) attributable to common shareholders $ 2,422 $ 516 $ 3,282 $ (2,434) Basic weighted average shares outstanding 19,293 19,386 19,073 19,479 Basic earnings (loss) per share attributable to common shareholders $ 0.13 $ 0.03 $ 0.17 $ (0.12) Diluted shares outstanding: Basic weighted-average shares outstanding 19,293 19,386 19,073 19,479 Stock-based awards 454 208 387 — Diluted weighted-average shares outstanding 19,747 19,594 19,460 19,479 Diluted earnings (loss) per share attributable to common shareholders $ 0.12 $ 0.03 $ 0.17 $ (0.12) Dilutive shares excluded from diluted-per-share amounts: Share-based awards 735 341 735 — Anti-dilutive shares excluded from diluted-per-share amounts: Share-based awards 77 25 102 341 (1) _________________________________________ (1) As a result of the net loss for the six months ended June 30, 2022, no potentially dilutive securities are included in the calculation of diluted loss per share because such effect would be anti-dilutive. Potentially dilutive securities for the six months ended June 30, 2022 include 341 restricted stock units. |
Capital Transactions (Tables)
Capital Transactions (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Schedule of Stock Option Activity | Stock option activity for the six-month period ended June 30, 2023, is as follows (amounts in thousands, except per share information): Number of Weighted Average Weighted Average Options outstanding at December 31, 2022 143 $ 12.72 $ 5.28 Granted — — — Forfeited or canceled (17) 11.98 6.16 Exercised — — — Options outstanding at June 30, 2023 126 $ 12.81 $ 5.16 |
Scheduled of Restricted Stock Unit Activity | Restricted stock unit activity for the six-month period ended June 30, 2023, is as follows (amounts in thousands, except per share information): Number of Weighted Average Restricted Stock Units outstanding at December 31, 2022 1,091 $ 10.76 Granted 507 10.57 Forfeited (45) 2.80 Issued (128) 10.03 Restricted Stock Units outstanding at June 30, 2023 1,425 11.01 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Business Segment Information | Reportable business segment information is as follows (dollar amounts in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net sales: Asia $ 54,875 $ 47,382 $ 101,220 $ 93,492 Europe 21,236 17,099 42,641 38,876 North America 34,658 34,082 69,306 70,063 Latin America and Other 5,779 5,598 12,015 12,224 Total net sales 116,548 104,161 225,182 214,655 Contribution margin (1): Asia 26,899 21,432 48,850 43,371 Europe 6,130 6,595 12,666 10,968 North America 13,902 12,300 26,763 25,019 Latin America and Other 2,379 2,294 4,845 5,195 Total contribution margin 49,310 42,621 93,124 84,553 Selling, general and administrative expenses (2) 42,273 36,866 85,915 77,489 Operating income 7,037 5,755 7,209 7,064 Other income (loss), net (1,087) (442) 427 (756) Income before provision for income taxes $ 5,950 $ 5,313 $ 7,636 $ 6,308 _________________________________________ (1) Contribution margin consists of net sales less cost of sales and volume incentives expense. |
Schedule of Consolidated Net Sales Revenue by Geographical Locations | From an individual country/region perspective, the United States, South Korea and Taiwan comprise 10 percent or more of consolidated net sales for the three and six-month periods ended June 30, 2023 and 2022, as follows (dollar amounts in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Net sales: United States $ 32,088 $ 31,483 $ 64,074 $ 64,712 South Korea 13,832 14,465 25,072 28,118 Taiwan 16,041 11,933 30,216 21,683 Other 54,587 46,280 105,820 100,142 $ 116,548 $ 104,161 $ 225,182 $ 214,655 |
Revenue from External Customers by Products and Services | Net sales generated by each of our product lines is set forth below (dollar amounts in thousands): Three Months Ended Six Months Ended 2023 2022 2023 2022 Asia General health $ 18,158 $ 12,319 $ 31,922 $ 25,305 Immune 1,312 781 1,774 2,125 Cardiovascular 14,840 13,242 29,735 26,872 Digestive 11,564 10,990 20,986 20,026 Personal care 1,442 2,083 2,783 4,626 Weight management 7,559 7,967 14,020 14,538 54,875 47,382 101,220 93,492 Europe General health $ 8,615 $ 7,328 $ 17,789 $ 16,524 Immune 2,141 1,443 4,425 4,074 Cardiovascular 2,302 2,150 4,821 4,783 Digestive 6,331 4,481 12,069 10,072 Personal care 1,254 1,209 2,431 2,442 Weight management 593 488 1,106 981 21,236 17,099 42,641 38,876 North America General health $ 15,857 $ 14,954 $ 31,390 $ 30,268 Immune 3,732 4,061 8,053 8,933 Cardiovascular 3,761 3,893 7,349 7,735 Digestive 8,761 9,044 17,492 17,638 Personal care 1,634 1,389 3,098 3,564 Weight management 913 741 1,924 1,925 34,658 34,082 69,306 70,063 Latin America and Other General health $ 1,600 $ 1,597 $ 3,237 $ 3,415 Immune 668 755 1,412 1,516 Cardiovascular 433 455 899 812 Digestive 2,585 2,551 5,470 5,392 Personal care 341 80 692 721 Weight management 152 160 305 368 5,779 5,598 12,015 12,224 $ 116,548 $ 104,161 $ 225,182 $ 214,655 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | From an individual country perspective, only the United States comprised 10 percent or more of consolidated property, plant and equipment as follows (dollar amounts in thousands): June 30, December 31, Property, plant and equipment: United States $ 42,190 $ 42,389 Other 3,183 3,773 Total property, plant and equipment, net $ 45,373 $ 46,162 |
Schedule of Segment Reporting Information | Total assets per segment is set forth below (dollar amounts in thousands): June 30, December 31, Assets: Asia $ 96,686 $ 95,362 Europe 20,520 15,773 North America 111,627 112,319 Latin America and Other 7,319 6,324 Total assets $ 236,152 $ 229,778 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets Measured on Recurring Basis | The following table presents our hierarchy for our assets, measured at fair value on a recurring basis, as of June 30, 2023 (dollar amounts in thousands): Level 1 Level 2 Level 3 Quoted Prices Significant Significant Total Investment securities - trading $ 740 $ — $ — $ 740 Total assets measured at fair value on a recurring basis $ 740 $ — $ — $ 740 The following table presents our hierarchy for our assets, measured at fair value on a recurring basis, as of December 31, 2022 (dollar amounts in thousands): Level 1 Level 2 Level 3 Quoted Prices Significant Significant Total Investment securities - trading $ 702 $ — $ — $ 702 Total assets measured at fair value on a recurring basis $ 702 $ — $ — $ 702 |
Basis of Presentation (Details)
Basis of Presentation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Increase (decrease) in noncontrolling interest | $ 300 | $ 400 | $ 600 | $ 700 | |
Noncontrolling interest | $ 4,790 | $ 4,790 | $ 4,142 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 20,638 | $ 23,133 |
Work in progress | 1,497 | 1,713 |
Finished goods | 43,723 | 43,103 |
Total inventories | $ 65,858 | $ 67,949 |
Investment Securities - Tradi_2
Investment Securities - Trading (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Trading securities portfolio | $ 740 | $ 740 | $ 702 | ||
Debt securities, trading, realized gains (losses) | $ 45 | $ (100) | $ 100 | $ (200) |
Revolving Credit Facility and_2
Revolving Credit Facility and Other Obligations (Details) | Jun. 23, 2022 USD ($) borrowing | Nov. 19, 2020 USD ($) payment | Jun. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Apr. 21, 2020 USD ($) | Jul. 11, 2017 USD ($) |
Revolving credit facility | Bank of America Credit Agreement | ||||||
Long-term debt | ||||||
Maximum borrowing capacity | $ 25,000,000 | |||||
Potential increase in maximum borrowing capacity | $ 25,000,000 | |||||
Number of separate increases | borrowing | 3 | |||||
Potential increase in maximum borrowing capacity, per occurrence | $ 5,000,000 | |||||
Annual commitment fee | 0.25% | |||||
Long-term line of credit | $ 0 | $ 0 | ||||
Revolving credit facility | BSBY Daily Floating Rate | Bank of America Credit Agreement | ||||||
Long-term debt | ||||||
Margin on variable rate | 1.50% | |||||
Effective interest rate | 6.67% | |||||
Line of Credit | Banc of America Leasing and Capital Credit Agreement | ||||||
Long-term debt | ||||||
Maximum borrowing capacity | $ 6,000,000 | |||||
Long-term line of credit | $ 3,700,000 | $ 500,000 | ||||
Number of monthly payments | payment | 36 | |||||
Periodic payment | $ 100,000 | |||||
Line of credit, outstanding, current | $ 500,000 | |||||
Line of Credit | Indicative Index | Banc of America Leasing and Capital Credit Agreement | ||||||
Long-term debt | ||||||
Effective interest rate | 3% |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income (loss) attributable to common shareholders | $ 2,422 | $ 516 | $ 3,282 | $ (2,434) |
Basic weighted average shares outstanding (in shares) | 19,293 | 19,386 | 19,073 | 19,479 |
Basic earnings (loss) per share attributable to common shareholders (in dollars per share) | $ 0.13 | $ 0.03 | $ 0.17 | $ (0.12) |
Diluted shares outstanding: | ||||
Basic weighted-average shares outstanding (in shares) | 19,293 | 19,386 | 19,073 | 19,479 |
Stock-based awards (in shares) | 454 | 208 | 387 | 0 |
Diluted weighted-average shares outstanding (in shares) | 19,747 | 19,594 | 19,460 | 19,479 |
Diluted earnings (loss) per share attributable to common shareholders (in dollars per share) | $ 0.12 | $ 0.03 | $ 0.17 | $ (0.12) |
Dilutive shares excluded from diluted-per-share amounts: | ||||
Stock options (in shares) | 735 | 341 | 735 | 0 |
Anti-dilutive shares excluded from diluted-per-share amounts: | ||||
Stock options (in shares) | 77 | 25 | 102 | 341 |
Potentially dilutive shares included in the calculation of diluted earnings per share (in shares) | 0 |
Capital Transactions - Narrativ
Capital Transactions - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
May 05, 2021 shares | Jun. 30, 2023 USD ($) shares | Mar. 31, 2023 USD ($) | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Jun. 30, 2023 USD ($) vestingInstallment $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Dec. 31, 2015 shares | Dec. 31, 2022 USD ($) shares | Mar. 08, 2022 USD ($) | Mar. 10, 2021 USD ($) | Dec. 31, 2012 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Stock repurchase program, authorized amount | $ 30,000,000 | $ 15,000,000 | ||||||||||
Repurchase of common stock (in shares) | shares | 99,000 | 741,000 | ||||||||||
Repurchase of common stock | $ 97,000 | $ 823,000 | $ 4,000,000 | $ 7,971,000 | $ 900,000 | $ 12,000,000 | ||||||
Stock repurchase program, remaining authorized repurchase amount | 23,100,000 | 23,100,000 | ||||||||||
2012 Stock Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares authorized under the plan (in shares) | shares | 1,500,000 | |||||||||||
Additional number of shares authorized under the plan (in shares) | shares | 2,000,000 | 1,500,000 | ||||||||||
Stock options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation expense | 0 | 0 | 0 | $ 0 | ||||||||
Unrecognized share-based compensation expense | $ 0 | $ 0 | $ 0 | |||||||||
Options outstanding (in shares) | shares | 126,000 | 126,000 | 143,000 | |||||||||
Aggregate intrinsic value, outstanding | $ 29,000 | $ 29,000 | $ 0 | |||||||||
Exercised (in shares) | shares | 0 | 29,000 | ||||||||||
Exercised (in dollars per share) | $ / shares | $ 0 | $ 9.17 | ||||||||||
Aggregate intrinsic values of options exercised | $ 300,000 | |||||||||||
Tax benefit from the exercise of stock options | 100,000 | |||||||||||
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 0 | |||||||||||
Time-based stock options | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 48 months | |||||||||||
Performance based stock options operating income margins | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Operating income margin, one (percentage) | 6% | |||||||||||
Operating income margin, two (percentage) | 8% | |||||||||||
Operating income margin, three (percentage) | 10% | |||||||||||
Unvested stock options outstanding (in shares) | shares | 0 | 0 | 0 | |||||||||
Performance based stock options operating income margins | Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award performance period | 1 year | |||||||||||
Performance based stock options operating income margins | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award performance period | 1 year 3 months | |||||||||||
RSUs | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation expense | $ 1,100,000 | 300,000 | $ 1,900,000 | $ 900,000 | ||||||||
Unrecognized share-based compensation expense | $ 4,200,000 | $ 4,200,000 | $ 3,000,000 | |||||||||
Discount for lack of marketability | 11.90% | |||||||||||
Weighted-average period over which the remaining compensation cost is expected to be recognized | 9 months 18 days | |||||||||||
Minimum withholding requirements (in shares) | shares | 24,000 | 80,000 | ||||||||||
RSUs | 2012 Stock Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | shares | 507,000 | |||||||||||
RSUs | Minimum | 2012 Stock Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 12 months | |||||||||||
RSUs | Maximum | 2012 Stock Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 36 months | |||||||||||
RSUs | Director | 2012 Stock Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restriction period for issuance of shares | 2 years | |||||||||||
Nonvested subject to restriction period (in shares) | shares | 74,000 | 74,000 | 94,000 | |||||||||
Time-Based Restricted Stock Units (RSUs), 1-year Vesting | 2012 Stock Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 1 year | |||||||||||
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 10.44 | |||||||||||
Number of vesting installments | vestingInstallment | 12 | |||||||||||
Time-Based Restricted Stock Units (RSUs), 3-year Vesting | 2012 Stock Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 3 years | |||||||||||
Performance-Based Restricted Stock Units (RSUs) | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share-based compensation expense | $ 300,000 | $ 200,000 | $ 600,000 | $ 500,000 | ||||||||
Share based compensation potential compensation expense to be recognized | 3,400,000 | 3,400,000 | ||||||||||
Performance-Based Restricted Stock Units (RSUs) | Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Share based compensation potential compensation expense to be recognized | $ 6,500,000 | $ 6,500,000 | ||||||||||
Adjusted EBITDA Performance-Based Restricted Stock Units | 2012 Stock Incentive Plan | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 4 years | |||||||||||
Weighted-average grant date fair value (in dollars per share) | $ / shares | $ 10.74 |
Capital Transactions - Stock Op
Capital Transactions - Stock Option Activity (Details) - Stock options - $ / shares | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Number of Shares | ||
Options outstanding at the beginning of the period (in shares) | 143,000 | |
Granted (in shares) | 0 | |
Forfeited or canceled (in shares) | (17,000) | |
Exercised (in shares) | 0 | (29,000) |
Options outstanding at the end of the period (in shares) | 126,000 | |
Weighted Average Exercise Price Per Share | ||
Options outstanding at the beginning of the period (in dollars per share) | $ 12.72 | |
Granted (in dollars per share) | 0 | |
Forfeited or canceled (in dollars per share) | 11.98 | |
Exercised (in dollars per share) | 0 | $ 9.17 |
Options outstanding at the end of the period (in dollars per share) | 12.81 | |
Weighted Average Grant Date Fair Value | ||
Options outstanding at the beginning of the period (in dollars per share) | 5.28 | |
Granted (in dollars per share) | 0 | |
Forfeited or canceled (in dollars per share) | 6.16 | |
Exercised (in dollars per share) | 0 | |
Options outstanding at the beginning of the period (in dollars per share) | $ 5.16 |
Capital Transactions - RSU Acti
Capital Transactions - RSU Activity (Details) - 2012 Stock Incentive Plan - RSUs | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Number of Shares | |
Restricted Stock Units outstanding, beginning balance (in shares) | shares | 1,091,000 |
Granted (in shares) | shares | 507,000 |
Forfeited (in shares) | shares | (45,000) |
Issued (in shares) | shares | (128,000) |
Restricted Stock Units outstanding, ending balance (in shares) | shares | 1,425,000 |
Weighted Average Grant Date Fair Value | |
Restricted Stock Units outstanding, beginning balance (in dollars per share) | $ / shares | $ 10.76 |
Granted (in dollars per share) | $ / shares | 10.57 |
Forfeited (in dollars per share) | $ / shares | 2.80 |
Issued (in dollars per share) | $ / shares | 10.03 |
Restricted Stock Units outstanding, ending balance (in dollars per share) | $ / shares | $ 11.01 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Segment information | |||||
Number of business segments | segment | 4 | ||||
Net sales: | |||||
Total net sales revenue | $ 116,548 | $ 104,161 | $ 225,182 | $ 214,655 | |
Contribution margin: | |||||
Total contribution margin | 49,310 | 42,621 | 93,124 | 84,553 | |
Selling, general and administrative expenses | 42,273 | 36,866 | 85,915 | 77,489 | |
Operating income | 7,037 | 5,755 | 7,209 | 7,064 | |
Other income (loss), net | (1,087) | (442) | 427 | (756) | |
Income before provision for income taxes | 5,950 | 5,313 | 7,636 | 6,308 | |
Total property, plant and equipment, net | 45,373 | 45,373 | $ 46,162 | ||
Total assets | 236,152 | 236,152 | 229,778 | ||
Asia | |||||
Net sales: | |||||
Total net sales revenue | 54,875 | 47,382 | 101,220 | 93,492 | |
Contribution margin: | |||||
Total contribution margin | 26,899 | 21,432 | 48,850 | 43,371 | |
Total assets | 96,686 | 96,686 | 95,362 | ||
Asia | General health | |||||
Net sales: | |||||
Total net sales revenue | 18,158 | 12,319 | 31,922 | 25,305 | |
Asia | Immune | |||||
Net sales: | |||||
Total net sales revenue | 1,312 | 781 | 1,774 | 2,125 | |
Asia | Cardiovascular | |||||
Net sales: | |||||
Total net sales revenue | 14,840 | 13,242 | 29,735 | 26,872 | |
Asia | Digestive | |||||
Net sales: | |||||
Total net sales revenue | 11,564 | 10,990 | 20,986 | 20,026 | |
Asia | Personal care | |||||
Net sales: | |||||
Total net sales revenue | 1,442 | 2,083 | 2,783 | 4,626 | |
Asia | Weight management | |||||
Net sales: | |||||
Total net sales revenue | 7,559 | 7,967 | 14,020 | 14,538 | |
Europe | |||||
Net sales: | |||||
Total net sales revenue | 21,236 | 17,099 | 42,641 | 38,876 | |
Contribution margin: | |||||
Total contribution margin | 6,130 | 6,595 | 12,666 | 10,968 | |
Total assets | 20,520 | 20,520 | 15,773 | ||
Europe | General health | |||||
Net sales: | |||||
Total net sales revenue | 8,615 | 7,328 | 17,789 | 16,524 | |
Europe | Immune | |||||
Net sales: | |||||
Total net sales revenue | 2,141 | 1,443 | 4,425 | 4,074 | |
Europe | Cardiovascular | |||||
Net sales: | |||||
Total net sales revenue | 2,302 | 2,150 | 4,821 | 4,783 | |
Europe | Digestive | |||||
Net sales: | |||||
Total net sales revenue | 6,331 | 4,481 | 12,069 | 10,072 | |
Europe | Personal care | |||||
Net sales: | |||||
Total net sales revenue | 1,254 | 1,209 | 2,431 | 2,442 | |
Europe | Weight management | |||||
Net sales: | |||||
Total net sales revenue | 593 | 488 | 1,106 | 981 | |
North America | |||||
Net sales: | |||||
Total net sales revenue | 34,658 | 34,082 | 69,306 | 70,063 | |
Contribution margin: | |||||
Total contribution margin | 13,902 | 12,300 | 26,763 | 25,019 | |
Total assets | 111,627 | 111,627 | 112,319 | ||
North America | General health | |||||
Net sales: | |||||
Total net sales revenue | 15,857 | 14,954 | 31,390 | 30,268 | |
North America | Immune | |||||
Net sales: | |||||
Total net sales revenue | 3,732 | 4,061 | 8,053 | 8,933 | |
North America | Cardiovascular | |||||
Net sales: | |||||
Total net sales revenue | 3,761 | 3,893 | 7,349 | 7,735 | |
North America | Digestive | |||||
Net sales: | |||||
Total net sales revenue | 8,761 | 9,044 | 17,492 | 17,638 | |
North America | Personal care | |||||
Net sales: | |||||
Total net sales revenue | 1,634 | 1,389 | 3,098 | 3,564 | |
North America | Weight management | |||||
Net sales: | |||||
Total net sales revenue | 913 | 741 | 1,924 | 1,925 | |
Latin America and Other | |||||
Net sales: | |||||
Total net sales revenue | 5,779 | 5,598 | 12,015 | 12,224 | |
Contribution margin: | |||||
Total contribution margin | 2,379 | 2,294 | 4,845 | 5,195 | |
Total assets | 7,319 | 7,319 | 6,324 | ||
Latin America and Other | General health | |||||
Net sales: | |||||
Total net sales revenue | 1,600 | 1,597 | 3,237 | 3,415 | |
Latin America and Other | Immune | |||||
Net sales: | |||||
Total net sales revenue | 668 | 755 | 1,412 | 1,516 | |
Latin America and Other | Cardiovascular | |||||
Net sales: | |||||
Total net sales revenue | 433 | 455 | 899 | 812 | |
Latin America and Other | Digestive | |||||
Net sales: | |||||
Total net sales revenue | 2,585 | 2,551 | 5,470 | 5,392 | |
Latin America and Other | Personal care | |||||
Net sales: | |||||
Total net sales revenue | 341 | 80 | 692 | 721 | |
Latin America and Other | Weight management | |||||
Net sales: | |||||
Total net sales revenue | 152 | 160 | 305 | 368 | |
CHINA | |||||
Contribution margin: | |||||
Selling, general and administrative expenses | 5,200 | 3,900 | 8,900 | 8,800 | |
United States | |||||
Net sales: | |||||
Total net sales revenue | 32,088 | 31,483 | 64,074 | 64,712 | |
Contribution margin: | |||||
Total property, plant and equipment, net | 42,190 | 42,190 | 42,389 | ||
South Korea | |||||
Net sales: | |||||
Total net sales revenue | 13,832 | 14,465 | 25,072 | 28,118 | |
Taiwan | |||||
Net sales: | |||||
Total net sales revenue | 16,041 | 11,933 | 30,216 | 21,683 | |
Other | |||||
Net sales: | |||||
Total net sales revenue | 54,587 | $ 46,280 | 105,820 | $ 100,142 | |
Contribution margin: | |||||
Total property, plant and equipment, net | $ 3,183 | $ 3,183 | $ 3,773 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Provision (benefit) for income taxes, as a percentage of income before income taxes | 55% | 82.10% | 48.50% | 127.50% | |
Liability related to unrecognized tax benefits | $ 0.2 | $ 0.2 | $ 0.2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 6 Months Ended | |
Jun. 30, 2023 USD ($) claim | Dec. 31, 2022 USD ($) | |
Value-added tax assessments and other civil litigation | ||
Commitments and contingencies | ||
Minimum number of claims that the Company's insurance coverage may not be sufficient to cover | claim | 1 | |
Provision for losses | $ 0 | |
Non-Income Tax Contingencies | ||
Commitments and contingencies | ||
Accrued liabilities | 300,000 | $ 300,000 |
Minimum | Value-added tax assessments and other civil litigation | ||
Commitments and contingencies | ||
Estimate of possible loss | 0 | |
Minimum | Non-Income Tax Contingencies | ||
Commitments and contingencies | ||
Estimate of possible loss | 0 | |
Maximum | Value-added tax assessments and other civil litigation | ||
Commitments and contingencies | ||
Estimate of possible loss | 400,000 | |
Maximum | Non-Income Tax Contingencies | ||
Commitments and contingencies | ||
Estimate of possible loss | 2,900,000 | |
Pending Litigation | ||
Commitments and contingencies | ||
Accrued liabilities | $ 500,000 | $ 600,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring basis - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Total | ||
Fair value | ||
Investment securities - trading | $ 740 | $ 702 |
Total assets measured at fair value on a recurring basis | 740 | 702 |
Level 1 - Quoted Prices in Active Markets for Identical Assets | ||
Fair value | ||
Investment securities - trading | 740 | 702 |
Total assets measured at fair value on a recurring basis | 740 | 702 |
Level 2 - Significant Other Observable Inputs | ||
Fair value | ||
Investment securities - trading | 0 | 0 |
Total assets measured at fair value on a recurring basis | 0 | 0 |
Level 3 - Significant Unobservable Inputs | ||
Fair value | ||
Investment securities - trading | 0 | 0 |
Total assets measured at fair value on a recurring basis | $ 0 | $ 0 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 segment product_category | |
Revenue from Contract with Customer [Abstract] | |
Refund period | 90 days |
Number of principal categories of products | product_category | 6 |
Number of business segments | segment | 4 |
Synergy Japan Loss (Details)
Synergy Japan Loss (Details) - Fraud Expense - USD ($) $ in Millions | 1 Months Ended | 6 Months Ended |
Feb. 17, 2023 | Jun. 30, 2023 | |
Commitments and contingencies | ||
Provision for losses | $ 4.8 | $ 4.8 |
Investigation and other professional fees | $ 1 |