USANA Reports Earnings Per Share Up 140 Percent
SALT LAKE CITY--(BW HealthWire)--April 24, 2002--USANA Health Sciences Inc. (Nasdaq: USNA) Wednesday reported operating results for the first quarter of 2002.
On the first year-over-year quarterly sales increase in nine quarters, USANA reported earnings per share up 140 percent over the prior year quarter.
For the first quarter of 2002, USANA reported sales of $28.6 million, up 3.7 percent from the same period in 2001. Earnings per share improved from $0.05 per share in the first quarter of 2001 to $0.12 in the first quarter of 2002, an increase of 140 percent. Operating earnings of $1.9 million are up 51.7 percent from the prior year quarter and are up 104 percent from the fourth quarter of 2001.
David A. Wentz, executive vice president, commented, "We are excited about the progress made in the most recent quarter. We have always believed in the fundamental soundness of our business model, our products and our distribution channel. The financial markets have overlooked our progress in the recent past, but we have quietly gone about building a stronger business."
Commenting on the quarter's results, Gilbert A. Fuller, chief financial officer noted, "This quarter's improvement was driven by both increased sales and improved gross margins. Improved margins were a function of realized efficiencies in production costs and ongoing repricing efforts."
"These numbers reflect the underlying strength of the USANA business," continued Fuller. "Not only did we more than double net income from the same period in the prior year, we have also reduced bank debt by over $2.0 million since year end, notwithstanding our continued expansion in Japan.
"We remain cautiously optimistic regarding future sales increases and we are confident that future earnings will continue to be strong. Based on first quarter results, we anticipate earnings per share for 2002 will be in the range of $0.50 to $0.58."
USANA executives will hold a conference call to discuss the announcement with institutional investors on Thursday, April 25, 2002 at 9 a.m. EST. The call will be broadcast over the Internet and can be accessed at
www.usanahealthsciences.com and by clicking on the "Investors" icon. The public is invited to listen to the live conference call.
To listen to the live call, please go to the Web site at least 15 minutes before the scheduled conference call to register and to download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call.
USANA develops and manufactures high quality nutritionals, personal care, and weight management products that are sold directly to preferred customers and associates throughout the United States, Canada, Australia, New Zealand, Hong Kong, Japan and the United Kingdom. More information on USANA can be found at
www.usanahealthsciences.com. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act.
Forward-looking statements in this press release include the statement that the company is cautiously optimistic regarding future sales increases, the statement that the company is confident that future earnings will continue to be strong, and the statement that the company anticipates earnings per share for the full fiscal year 2002 to be in the range of $0.50 to $0.58.
Actual results could differ materially from those projected in the forward-looking statements, which involve a number of risks and uncertainties, including reliance upon the company's independent Associate network, government regulation of products, manufacturing and marketing, and risks associated with international expansion.
The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in USANA's most recent filings with the Securities and Exchange Commission on Forms 10-Q and 10-K.
USANA Health Sciences Inc.
Consolidated Statements of Earnings
(in thousands, except per share data)
Quarter Ended
30-Mar-02 31-Mar-01
(Unaudited) (Unaudited)
Net sales $28,622 $27,614
Cost of sales 7,711 7,982
Gross profit 20,911 19,632
Operating expenses
Associate incentives 10,730 10,503
Selling, general and administrative 8,055 7,574
Research and development 199 285
Earnings from operations 1,927 1,270
Other income (expense) (96) (516)
Earnings before income taxes 1,831 754
Income taxes 714 283
NET EARNINGS $ 1,117 $ 471
Earnings per share - diluted $ 0.12 $ 0.05
Weighted average shares outstanding - diluted 9,664 9,733
USANA Health Sciences Inc.
Consolidated Balance Sheets
(in thousands
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