NATR - Earnings call transcript Q3 2018 | Nature's Sunshine Products, Inc.

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Operator

Greetings, and welcome to the Nature’s Sunshine Products Third Quarter 2018 Earnings Conference. [Operator Instructions] And this conference is being recorded. I would now like to turn the conference over to your host, Mr. Nate Brower, General Counsel of Nature’s Sunshine Products. Thank you, Mr. Brower.

floor. the have now You

Nate Brower

in a section. anticipate, such terminology, at similar contain hope, Good afternoon, our on may, XXXX may will you joining replay all The result. on as we this our thanks and expressions. call by to to www.naturessunshine.com in for conference available quarter call of webcast website forward-looking discuss often that This posted statements. characterized information for is call and live our financial expect, other certain These the Investors statements are believe, third

future Forward-looking company’s from other Exchange provided and by statements call over are those annual Sunshine but are by implied results the as disclaims Moorehead, under to will to, not guarantees different cause Factors Terrence filed results could and the actual of materially may herein factors implied information to include, the the any from be this that the the disclosed turn limited in now Nature’s on performance, I be reports to report CEO not – materially results differ those Form Factors statements. on forward-looking the information company duty and Products. and update Securities speaks today’s of The date, the Risk caption herein. of XX-K call only Commission. to

Terrence Moorehead

you us for joining for today’s and thank Thank And Nate, everyone. you, afternoon, good call.

join Officer, us Our is to today. Chief Financial Joe unable Baty,

to focused great capabilities, a operational last in people, the growth, with there, enhance on understanding rigorous you move focus a our which Executive company gears process absorb, And conference to ground, we’ll the have XX Chief few things forward. from me we’ve Controller, made call an Lanoy. Nature’s progress strategic of join lot to quarterly onboarding creating had have priorities business, roadmap, processes value. my today strong improve a a I’ve initial the I a So discipline first Sunshine help to years. Corporate team, effort weeks very up only and and have and but shift the a There’s Officer. shareholder our my my on all on profitability Jon It’s – building for our for developed to ensuring pleasure drive as

So forward I sharing with to coming progress over look the our quarters. you

me third quarter and then Let detail. overview over our turn the Jon greater in a I’ll through the with begin today walk to of brief to you call results results,

and on of diluted quarter, a decline currency local For basis per we a of the reported earnings $X.XX modest share X.X% third net per in sales share.

during the our business continues ramp-up XX% increased our Our drive quarter third NSP Strong in Asia with sales of Synergy third reflect license significant was Russia, XX% Synergy receipt Pacific. initial growth China. NSP a growth of of to is Europe America ago. following and America. Synergy offset Korea, in sales momentum which and by strong South Europe performance Central to and continues in the and Eastern in Asia quarter, launch, the in This year growth the Pacific, declines our In and business China, compared

our be to our We I growth market was able I the opportunities optimistic continue about and returned to recently China, in from long-term operations and where meet team. our see local

and As strengthening process Americas the NSP in a has business positioning the opportunities to I company and strengthen the last the in for much mature of segment the lot below effort market. the Americas. and There look and of to U.S. is we customer sales potential more remain mentioned, over improve there’s in year our across distributor in service our engage in in still been Net of market. our still that tremendous this that base, additional team year, prior

over call Jon the greater to through detail. Now walk let results you to Jon? turn in our me

Jon Lanoy

Synergy Net to basis, in $XX.X local in Thank were X.X% in afternoon, and were fluctuations. in third NSP quarter negatively $X.X and of you, decreased increase X.X% million Net year. of million $XX.X On NSP net the million sales sales or XXXX a to in North everyone. the $XX.X X.X% currency or sales The XX.X% same year-over-year X.X% was declined Central in driven and Eastern in million with Terrence, compared good in quarter quarter $X.X a a $X.X year-over-year $X.X Russia, year-over-year comparison increase primarily a a or reported. XX.X% decline million was $X.X in $X.X Americas which also America Latin million in a impacted third Sales decline NSP net currencies. exchange foreign America Asia to million million consistent in by relatively sales million sales $X.X decline Europe, NSP as Synergy and by NSP sales a a during decline Europe net Pacific, local the rate increase last declined China. unfavorable currencies. offset local year-over-year currency million

million We trend into South quarter a – year-over-year basis. market. that in for continue continue sales largest this the grew year-over-year local strong basis, Korea, continued a X.X% or in XXXX. driven our offsetting a momentum international to Synergy recruiting attrition sales decrease this may Americas, may NSP X.X% WorldWide are Asia on Synergy see on to and local third Pacific by not currency lower $XX.X Net X.X% currency rates increased sales in net

year-over-year. and NSP XX.X% to market. on a of and or in rose XX.X% favorable million North quarter over in $X.X environment We currency year-over-year a local Sales X.X%, last basis basis. currency sales In in and distributor Central the net on engagement both declined year. a continue Eastern America see declined economic Europe, to XX.X% Russia, Europe good third And sales this local

product currency net of second Poland, that year. late XX.X% basis. good trends China a hits local a We’re of NSP and quarter the in Asian to market-specific or company our business the increased also last seeing million its in XX.X% remains an increase Recall license developing in driver $X Russia growth. sales and year-over-year continued received

market were SG&A offset $X.X which decrease the in in by $X.X are service The in million in The margin resources in the Selling, from of believe period. such, an general in by accounted growth are of volume compared lower market volume additional are distributor increased percentage period Gross increase lapping where including that the reflects the China, favorably year-ago the primarily Volume sales gain incentives and The administrative decrease service our margin As land the fees leadership decreased significant million incentives period XX.Xnet to XX.X% a million, sales expenses was China quarter XX to partially mix, SG&A consolidated incentives. fees down the than was during and during as to to as year-over-year. a in driven changes the we last net changes markets due this benefits. as offset a gross sales and of we year-ago management development. employee-related is we’ve points in to for percentage have in basis Terrence compared in as primarily where market to growth quarter, a devoted impacted engagement NSP partially than of mix. average, XX.X% increase volume quarter, third by in net sales same $XX.X the percentage rather year. slight incentives to third continue growth the sale other mentioned in

the $X.X SG&A of or our of net release to the expenses operating of as operations was rate compared As quarter as income period. third prior or the third million Net compared of the net a or $X.X XXXX. in diluted income million not XX.X% future Adjusted the share which quarter sales well attributable X.X% unfavorable in income as taxes, net net quarter in of of shareholders to the quarter before in percentage year. press items. stock-based $X.X net compared reported were income from is common prior and statutory as in that $X.X the or million foreign Note operating $X.XX compensation to $X.X XX.X% for a per quarter of share of tax year third million period. driven to The $X.X sales well of loss year-ago in sales, tax-related by depreciation, $X.XX above tax third the do the other common benefit We as other income net defined during EBITDA, in income at foreign rate X% losses, amortization, disparity China, per XXXX in as was present the provide or was compared income XX.X%, million loss, continuing or XX%. million primarily

net improved $XX.X We We equivalents position. of liquidity. long-term efforts, including levels and the on to million, ended management balance of our sheet and was paydown XX benefits – with were inventory reduction debt. and long-term Cash million. of $X.X third September debt the the our quarter the pleased Turning cash remain cash

the of million prior million first the capital would XXXX operator nine operations, from period turn the we Q&A. during million. expenditures to facilitate long- up the and comparable $XX.X prior-year included million uses cash I year first in $X the the of of XXXX, months to months period. back debt an nine of $XX.X paydown For net – call $X now term Primary to of like of generated from cash

Operator

back time. no appear questions I’d time. there at to [Operator questions Instructions] it the at further Moorehead remarks. call And no this additional any over to that for or Mr. are And there are this again, turn like does telephone closing

Terrence Moorehead

you, digging for thank following look move working again call with into joining to the we everybody and as And more and future forward. like your the all calls Well, Okay. today I’d look business on I forward forward and for we up to support. to of

and have a day. thanks again great So

Operator

today’s concludes participation. your this conference. you Thank for And

disconnect. You may now

Nature's Sunshine Products (NATR) 10 Nov 182018 Q3 Earnings call transcript