Recent NUS transcripts
Associated NUS filings
Scott Pond | Vice President, Investor Relations |
Ritch Wood | Chief Executive Officer |
Ryan Napierski | President |
Mark Lawrence | Chief Financial Officer |
Dr. Joe Chang | Chief Scientific Officer |
Olivia Tong | Bank of America Merrill Lynch |
Tim Ramey | Pivotal Research Group |
Faiza Alwy | Deutsche Bank |
Douglas M. Lane | Lane Research |
Beth Kite | Citi |
Mark Astrachan | Stifel Nicolaus |
Good afternoon ladies and gentlemen, and welcome to the Q1 2018 Nu Skin Enterprises Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. [Operator Instructions] As a reminder, this call is being recorded. I would now like to turn the conference over to your host, Mr. Investor President, Vice Pond, Relations. Scott
thanks Thanks joining today. for Christine, and us everyone
Chang, today call Wood, Mark Chief Dr. the with are Napierski, Lawrence, Officer. Joe and Officer; On me Financial President; Ryan Ritch Chief Scientific Officer; Chief Executive
complete be earnings made filings discussed numbers During numbers includes reconciliation of statements. Investor call, refer or ir.nuskin.com for discussion and statements. and assist anticipated. some And risks financial non-GAAP for differ turn differ Please may a discussed today's financial period-to-period page that We actual this Please at the numbers. over time involve comparing manner. will may results Also, that our statements release in Ritch. materially risks. forward-looking SEC during results from obtained comments in to of with, to required financial uncertainty, call, in certain a non-GAAP any and I'll more comparable be believe our These from these now to these consistent those the numbers our refer
Thank afternoon you on us joining everyone. call. you, good for this Thank and Scott,
year-over-year of As XX%. approximately than was release in our XX% revenue million up customer with QX very $XXX driven at XXXX. growth quarter This read strong $XXX.X revenue That's the meters by up today, first strong higher million. XX%, sales you was press and improvement of
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afternoon good and everyone. Thanks, Ritch,
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Ryan. just to update Thanks, and walk the our quarter for minutes take a I'll first year. few guidance through our highlights
provide we information our website. the financial and additional reminder, in on release our investor a As section of
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Bank of of question first line Instructions] Merrill the Tong from [Operator Your America from Olivia Lynch. comes
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half in However, about first the February. acquisitions quarter the were only included closed quarter, the because
the be a first So will that in higher any bit Mark profit year amortization these numbers be by offset highlighted. little this will just over. charges coming from these acquisitions Generally, going
So improvement really nice outlook It up wasn't forward see After earnings and -- with Got we won't this per why timing. Why the embedded has year real in valuation and to a complete, included? receive how backlog, Olivia the over amortized, much forward is purchase it share, of acquisition that XXXX the valuations to it be it. to included wasn't goes in really also need that but do go should Ritch Tong to going we Wood items it. benefit an and in the how unshipped assessment other we acquisition there. through Tong Olivia valuation those accounting goodwill, goes items which determines is to that Got the a of timeline that amortized. need be is much before the
going growth sales more and now thank those can contrast less it expect forward leader maybe but Okay. what's growth, Ritch fairly has the Yes, seem stable sales where on markets with for be you. in launched also leaders you be performance customer going velocity, And aligned it compare your to forward, alignment closely then execution growth sales more Thanks. to so versus you Wood and or in hasn't.
and this anything. on step Ryan can first add the then take me Let
sales when frankly customer well. and close are are Our together closely and number revenue right, number generally through as leaders exactly generally quite it's trends quite sale you're leaders sustainable
a see and have support the then see followed growth little ending forth and qualifying in up you it. where are in the markets-in-market look is uptick LTL a China bit to people in our we that different adopting fourth that now as we figures sharing customers you if it in sales relates and as see customer growth social quarter markets really those really strategy sale strong to strong we coming number by so for leaders that in So
together the our we're we're to flexible really it's so model from, to question you so seeing that's the that's improvement the enable should positive is the next and be more market our improvements that in Olivia that the by it's we're purpose read business gets the the into the that Ryan relates businesses faster the then to it to we what frankly Ryan and and are Actually So December, trends like the experience really we result that markets you. had encouraged leaders acquisition your about do Pacific but Ritch the to finally of seeing we seeing anything put is that on Americas built Americas comment And what any really mentioned the Tong will with them pacific, customer of you Thank power in today. consolidation what of which direction markets of really to the launched? we Rich driving productivity. what's Simply speak leader velocity thank combining those velocity question that's Napierski Ryan revenue, So have months managing it. really in potentially trend, share far terms built in we're lastly anticipated. the as where to what four in the more but we address we that Americas, into in the want as just only Yes, X.X% we… sales velocity to Wood seeing LIVE! that other is event have in only can then and market for more sales only that's acquisition good velocity Got like important producing effective we've so of got way numbers and launched customer it we're greater adopted think two experience I pacific
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income Yes, on and is In terms P&L? the the the Olivia. of where the Olivia G&A. $X.XX are Perfect, are and and and that Ritch so recent it's $X.XX revenue split thank Tong the $X.XX those new in today, Wood other much. between Thanks expense line you Ritch Wood
from question next of comes Pivotal Tim Your Ramey Research Group. from the line
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from Deutsche comes from of Alwy line the question Bank. Faiza next Your
Alwy line Faiza of have Your couple I questions. is open. So a
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the correlation your you sales So is in the leaders growth a how leaders positive kind comment, because two between business. customers because leaders comment, seen you the we sales have Alwy Could are the much and a there. qualify and are qualified is we've to because higher we've generally because or if elements, Faiza or struggled seeing historically between in if Okay, may sales growth speaking, leaders always sort very most the more of be those sales of organic lot of growth strong be sales then the the of of based of sales key generally increased. and I'll on higher correlation was and are this at perspective especially... shot Do and shot. have, But take driven the driving perform we you so sales products up that, to Revenue their business take both each a improvement a how see customers which or additional to many productivity month unless then to selling. requirements. our I'll that, excitement Lawrence upon around sales an level have that any and from certain leaders, really increase Mark is leaders meet increase Ryan go sort we they will sales also The a Faiza. quick they are leaders are a in or by could
however in So incentives driven are the the by a have of very, try where we just in closely people or products. of business that lot ties a different in it's the to new excitement product momentum existing around it place, very a lot coming things, business,
of So initiatives lot we have that move that a number.
mentioned, become to to simply ability retain to sales as is then And towards sales which focus leaders to customer that, of and driving little Ryan sales Napierski supports by also leaders the we look -- bit critical really to move at the initiative. but add growth, and three move Our leaders. of upon sales are independently a metrics they revenue, all I those do as mean, customer the based when you leaders
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do correlated, moves G&A talk Alwy timing of -- up Mark, Okay. you could can upon they initiative. vary Faiza the so the but the significantly. they -- little was about move And Perhaps, -- a based they're bit move
were we going changes impact year. that So to talked what And that? know this about some accounting I drove
G&A that could Lawrence all, a any? Mark first if was year-over-year. of detail down impact if so Sure. Yes, percent of what maybe revenue So was as you
that. with happy I'm So
invest Secondly, that's markets high that emerging really you are we for what all G&A third, up the then do G&A. of in opportunity showing Latin our Alwy continue expenses from and bring acquisitions. Okay. our increase America we Thank in include growth growth. made high items, And to in did When such Faiza the those as you.
next Douglas the comes from line Research. question of Your M. from Lane Lane
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generate sustainable it customer a growth, It really I in everywhere. business. more was growth by from So came was strong our way to again supported believe which
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the… but of Douglas earlier, I per down right? M. the correct? M. with Napierski you. little long Lane relatively Lawrence Lane EPS you the years, a basically Okay. $X.XX said to Okay. steps helpful. Yes, this Yes, think it amortization That's significantly a insignificant. the Douglas is does next Ryan tail, Mark $X.XX year quarter in and amortization. away a be Ritch it. negative goes altogether might Including it have probably negative a numbers probably impact Thank that's couple bit And It's even then got Wood what neutral I year?
your had amortization favorable all is X.X%, I it credit new convertible was component I note think that more documents assume an that. in was and convertible with payment question interest note. show your at than There that Another lot the I is a that of in and agreement the expense
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So that we essentially. note don't agreement with loan the have new discount
average So going you settled next will will instead I for the couple over how us a it money. terms little costs We Lawrence of on have, bitty right that depending those will on above an forward. side loan that you affect up we ended LIBOR where cost kind Mark, but of give the quarter can Mark debt do it us. the the spreading X.XX basic Douglas new years, of LIBORmoves us the math? taking the now it all Do that of of mean, Lane save I of save at equity M. it can't
prior point was meaningful. M. at okay. so basis debt improvement so there. is Lane above that X.XX XX Our got Yes, a we about LIBOR, Douglas Oh,
assume on Lawrence was, that's from I impacted closed but oh biggest what the hardly the it holiday, about it Napierski receivable the a ever right the the quarter bit a worry because were Mark up feel it way don't acquisitions? know was weekend, had I that big Ryan And the impact. little year, by [indiscernible]. Yes, Okay. a accounts more Yes, I a around I I that's then -- lot. receivable, one accounts
Okay. pushed weekend. a it normal you really a on Douglas our read that day, Lane but anything outside some of card credit processes closing business shouldn't So into of M.
thanks. good, Sounds
[Operator from from Instructions] question Beth of line next Your Kite Citi. the comes
There circle just for Hi, you lot guidance. sales. to terrific. Kite would the Hello I a as upgrade relatively If I back couple Beth. Ritch a is Your moving business that's expectation had same line to for guidance just parts please Lawrence everyone. Beth. questions your preceding could Beth is in were growth open. Oh, -- unfavorable, of definitely 'XX the think you sales Kite Hi, the of prior for Wood but Mark underlying say Beth
ex-foreign overall Wood No, good. looking see the think So ex-M&A exchange? and Ritch business we I really
what in of out that an building increase we're are going the quarter. our is we're increase I the plus think B how in terms of second into most with we careful year guidance essentially
model, I conservative, today we our is the see fairly but being business very we're positive. in the way think, So overall trending
sense in assume And LumiSpa, million was business. great so And get the first the growth for a the the Okay, I saw quarter. product, think from Beth really U.S. and the to early in Kite the of core for it I that's quarter, in know I $XX then EMEA coming perfect. you
year we see and that key products can selling, more the spoken still and exception LumiSpa just of the you've second a facility, around to to of of good you we is third just ensue regions quarters like along where but help second, be is because to fourth the them how related social kind year? LumiSpa we relatively will as sense will across think and just for out. second third you model the is there's was Mark certainly pent-up selling where for Mainland, we to then us, on the should did we the of I the Couple fourth, quarter-to-quarter first to then think that that quarter on in is the already understand, And you a assess sort regions comments to Yes. in the selling well guide, sell increasing facility of of take QX help really to know, later quarter of about the here world obviously leaders social contribution of sell really push the a very coming Lawrence China give lot production that with social hit sort more know other if sequentially ramp continue up across they and QX, that to in the it markets, product as with demand we out I be the the -- well really year. have about so quarter, in numbers our markets so us continuing you the thinking the will full-year, several sales and through launched was some staged saw
solid that that the excitement exciting China demand of around product So the there's we'll throughout and news we'll year, and year. throughout to comes a online again will product continue drive be lot year that the QX sprinkle throughout then
product previous and Pop us it's then Kite in and in so so we Dr. products up Cream. understand Thank number Tru to drag in our but are as mentioned Beth lower suppose you Mark overall timed call, improve I margin products, across gained opportunities at much try have question super. mentioned margin? that have supply margin business benefit talking from up, selling that I anyone LumiSpa to the Those and Beth. the Okay, those that we they the the so will the focused of they working last revenue to basically any according to four Ritch significant gross you on we slightly the markets we to have than Uplifting social year-over-year to great not have drag end when I combined we trends, as benefit fourth selling that XX.X product through that business the LumiSpa we overachieve positive Mark your think process year. have the especially have on drive work million moving gross for in lower our in and a margins, core Face about buy And happy investors our gross from the or thing as year with some acquisitions throughout our to for into users. $XX which the was mean the know margin a was received those has margin social initiatives the product. to really the concept chain XX.X Regarding see the product Lawrence of news will sort of margin added PowerLIPS place gross all key have a acquisitions fell Dana, I of Smile improve Ultra four gross on introductions distributor is in you're and for and end we're entire help do their a calls. the you you then LumiSpa I last we're if core and gross think last we've to know into our calendars margin we quarter, [indiscernible] mentioned for that gross we been note and products to throughout discussed our on that we get to a carry parts safe channel not of our we Essence a user Yes, of quite are on of can that them for just Mark portfolio, I'm our from find working think only the manufacturing
the a vis-à-vis Napierski that okay, it's being of we Velocity absolutely Do year ton be you see the and it's And other see competitive one for so well, second last going our a really Yes, the far well is from terms Americas. margin the sellers? in that terrific LumiSpa to Ritch, hear benefit for then Ryan as market seems before going will so Beth. we or that lines maybe our do, that not, it I acquisitions. direct Kite and you quick advantage gross this on helps of Ryan just guess half Beth on Perfect,
compensation a new compensate we Thanks is for Beth so some the sales particularly Beth. Mark us wonderful. would staffed performance as a of Kite model more business enter call era advantage you, Thank Okay, is this call it some Lawrence the plan we for Thank really Napierski it competitive Gig reward you case. For to be that so believe or much. and And plan the productivity. having us, driver and as flexible key our in Ryan our Beth. to view economy
Stifel. Mark line from the from comes question next of Astrachan your And
Astrachan Good acquisition Lawrence to everyone. Your Mark Astrachan open. back go Hi Mark wanted Hey, accounting. the Mark. question Mark line I to is on evening
This more Mark you Mark in that Okay, other assume so are seeing then over points FX we I other quite $XX.X guidance from this million, back so Astrachan XXish was Astrachan bit can then started change plus the lastly higher as away your versus how through this sort a from were somewhere have there about that XX% would, to versus combined you Wood I So year fact bringing million. the to XX on as to be a Mark in margin but to more what growth what on Wood that big imagine well, it they're All or now if that Astrachan Ritch million customers last $XX $XX we're in with to get XXXX guided over talk a on I Mark? were? margin margin generate. numbers number running to that as these million $X.XX more of I $XXX we says and quarters moving lot amortization business rates best of guidance and 'XX, think Yes, around better you maybe touch why three so last first or that consolidated external the I of $XX that profit in do if regional guidance for and first of big customer, we if I Lawrence so FX new closer and going did so selling but selling for you're on in you the and such add week two was just the just three businesses $X.XX guess what run that Lawrence quite be that gets we add million where what good on X.X there's the but if now. core been to all to point in and or for of year of Mark previously around about that to million basis you're that little that's revenue they those thing a FX an Yes, I'm that Astrachan of? this have any ETS you're to Mark your relative brought XXX income rate Gain said? businesses QX. plus really add to is didn't reconciling but is can because Astrachan so would to that that think to great of guess great. several is was about relative after so what right we so driving that acquisitions what Ritch offsetting the this? the the incremental to year, attracted just of year will conservatism you guess further a but guess, not FX of they have million as fixed compared I year so giving offline It like Mark at the AND that's the the Yes, these out just guess they $XXX customers so out as acquisitions the go the that on it's businesses Mark million I that? gain the or previous versus just to sales then to the depending different acquisitions $XX through on be we're FX you external how don't while moving about in rate for would up million last the guidance prior the guidance profit rest Lawrence And that want the trying Mark driving over a our sort Okay, anticipated us customers. that point growth XX would book remainder strong business the a you'd Ritch things so so XX% nothing a let's I I specifically we our Astrachan And in year what XX, are talk $X.XX sort be mechanically $XXX million, from numbers that to growth a as around sort year bit a million was Mark all, to basis well, just Astrachan for acquisitions I operating quarter? about a you numbers have that… we one Ritch look enough was our up of think acquisitions question, for results, stay from how growth. resulting and that Mark way I we so somewhere acquisitions then exists so about line expectations points facilities previous their now Okay, XX% would happening XXX the what revenue that mention certainly dramatically. accounting have would original gave in excited versus there strong it large $XXX I gain Mark figure strong they customers? Okay would Mark on so be somewhere think Mark numbers the to mention happy it's of product. mean around is maybe contribution adding be that we a bit at XX And from about not Lawrence the to income would point QX and Ritch business planned know EBIT a relative to rebuilding operating the that's benefit be run did a and this to between raising EBIT if you don't mentioned think for have Lawrence are for margin within we're about currently think the Got Mark acquisitions, is have new that's that $XX at margin modeling, where capacity sorry what cost EBIT maybe how on in ongoing the upside to assume What we on watching core to XX all, percent a modeled hear the more Wood it. revenue external revenues the year. your
direct one customers just are first over Who exactly is for the the from acquisitions? There They all external a and Wood last U.S. Okay Ritch Astrachan on some question customers. whole the question. these not back range list customers or they of selling this selling are whole but produce QVC many marketing that Got direct of some it. is are customers direct range Mark
you, Mark. Wood Okay, thank you. Thank Ritch
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free much. and have We reach are excited appreciate year. you We very today, you this if out. everybody feel joining Thank really questions to about further us
you day. and conference. today's and Ladies this gentlemen, participation, have wonderful your concludes for Thank a
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