NATURES SUNSHINE PRODUCTS INC - FORM 8-K - EX-99.1 - EARNINGS RELEASE - August 9, 2016

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FOR IMMEDIATE RELEASE

NATURE’S SUNSHINE PRODUCTS REPORTS SECOND QUARTER 2016 FINANCIAL RESULTS

•
Net sales revenue of $89.4 million was up 10.0% year-over-year; up 11.5% year-over-year on a local currency basis
•
Synergy local currency growth of 17.9% driven by 28.5% growth in Synergy Asia Pacific
•
Eighth consecutive quarter of net sales growth for NSP United States and NSP Canada
•
Earnings from continuing operations of $0.14 per diluted common share
•
Board of Directors approved a $0.10 per share quarterly cash dividend

LEHI, Utah, August 8, 2016 – Nature’s Sunshine Products, Inc. (NASDAQ: NATR), a leading natural health and wellness company engaged in the manufacture and direct selling of nutritional and personal care products, today reported its financial results for the second quarter ended June 30, 2016.

Second Quarter 2016 Financial Highlights

•
Net sales revenue of $89.4 million increased 10.0%, compared to $81.2 million in the second quarter of 2015. On a local currency basis, net sales revenue increased 11.5% compared to the second quarter of 2015. In addition to sustained local currency net sales revenue growth in NSP United States and NSP Canada, Synergy Asia delivered 28.5% local currency growth as compared to the second quarter of 2015. The quarter included incremental net sales revenue of $4.4 million related to pre-opening product sales through Hong Kong. Net sales revenue was negatively impacted by $1.2 million of unfavorable foreign currency exchange rate fluctuations, as well as a $0.5 million decline in net sales in the NSP Russia, Central and Eastern Europe segment.

•
Net income from continuing operations was $2.4 million, or $0.14 per diluted common share, compared to $2.4 million, or $0.12 per diluted common share, in the second quarter of 2015.

•
Adjusted EBITDA was $6.2 million, compared to $5.1 million in the second quarter of 2015. Adjusted EBITDA, which is a non-GAAP financial measure, is defined here as net income from continuing operations before taxes, depreciation, amortization and other income adjusted to exclude share-based compensation expense.


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1st Half of 2016 Financial Highlights

•
Net sales revenue of $171.8 million increased 4.0%, compared to $165.1 million in the first six months of 2015. On a local currency basis, net sales revenue increased 6.3% compared to the first six months of 2015. Net sales revenue growth adjusted for foreign currency fluctuations was largely driven by an $8.9 million, or 23.7% increase in Synergy Asia and an incremental net sales revenue increase of $4.4 million related to sales through Hong Kong, when compared to the first six months of 2015. Net sales revenue was negatively impacted by $3.8 million of unfavorable foreign currency exchange rate fluctuations, as well as a $1.5 million decline in net sales in the NSP Russia, Central and Eastern Europe segment.

•
Net income from continuing operations was $4.2 million, or $0.24 per diluted common share, compared to $6.6 million, or $0.34 per diluted common share, in the first six months of 2015. Earnings per diluted common share for the first six months of 2016, were impacted by several factors including: the Company’s investment in China of approximately $0.12 per share and unfavorable changes in the effective tax rate of $0.02 per share.

•
Adjusted EBITDA was $10.4 million compared to $12.8 million in the first six months of 2015.

Management Commentary

“We are very pleased to report accelerated revenue growth during the second quarter with strength across several regions,” commented Gregory L. Probert, Chairman and Chief Executive Officer. “Sustained local currency growth in both NSP United States and NSP Canada continues to reflect the strong foundation within our most mature markets and is a reflection of our high quality products and effective business model. The improvements we have put in place at Synergy WorldWide are delivering strong results across all geographical regions, led by 28.5% local currency growth in Synergy Asia.”

Mr. Probert continued, “We are optimistic about our new market opportunity in China and believe we have the management team, the business model and product offering in place to achieve success. We also remain encouraged by the success of our patent-pending IN.FORM program and continue to target geographical expansion of this promising new program offering.”


2



Second Quarter 2016 Regional Sales by Operating Segment

 
 
Net Sales Revenue by Operating Segment
 
 
 
Three Months
Ended 
June 30, 2016
 
Three Months
Ended 
June 30, 2015
 
Percent
Change
 
Impact of
Currency
Exchange
 
Percent
Change
Excluding
Impact of
Currency
 
NSP Americas:
 
 
 
 
 
 
 
 
 
 
 
NSP North America
 
$
37,439
 
$
36,816
 
1.7
%
 
$
(122
)
 
2.0
%
 
NSP Latin America
 
7,286
 
8,234
 
(11.5
)
 
(511
)
 
(5.3
)
 
 
 
44,725
 
45,050
 
(0.7
)
 
(633
)
 
0.7

 
 
 
 
 
 
 
 
 
 
 
 
 
NSP Russia, Central and Eastern Europe
 
6,269
 
6,815
 
(8
)
 
(40
)
 
(7.4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Synergy WorldWide:
 
 
 
 
 
 
 
 
 
 
 
Synergy Asia Pacific
 
23,397
 
18,765
 
24.7

 
(711
)
 
28.5

 
Synergy Europe
 
6,738
 
6,669
 
1.0

 
138
 
 
(1
)
 
Synergy North America
 
2,878
 
3,046
 
(5.5
)
 
—
 
 
(5.5
)
 
 
 
33,013
 
28,480
 
15.9

 
(573
)
 
17.9

 
 
 
 
 
 
 
 
 
 
 
 
 
China and New Markets
 
5,359
 
902
 
494.1

 
—
 
 
494.1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
89,366
 
$
81,247
 
100
%
 
$
(1,246
)
 
11.5
%
 


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Six Months Ended June 30, 2016 Regional Sales by Operating Segment



 
 
Net Sales Revenue by Operating Segment
 
 
 
Six Months
Ended 
June 30, 2016
 
Six Months
Ended 
June 30, 2015
 
Percent
Change
 
Impact of
Currency
Exchange
 
Percent
Change
Excluding
Impact of
Currency
 
NSP Americas:
 
 
 
 
 
 
 
 
 
 
 
NSP North America
 
 
$
75,745

 
 
$
74,990

 
1.0
 %
 
$
(423
)
 
1.6
 %
 
NSP Latin America
 
14,163
 
 
16,570
 
 
(14.5
)
 
(1,111
)
 
(7.8
)
 
 
 
89,908
 
 
91,560
 
 
(1.8
)
 
(1,534
)
 
(0.1
)
 
 
 
 
 
 
 
 
 
 
 
 
 
NSP Russia, Central and Eastern Europe
 
12,621
 
 
14,258
 
 
(11.5
)
 
(93
)
 
(10.8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Synergy WorldWide:
 
 
 
 
 
 
 
 
 
 
 
Synergy Asia Pacific
 
44,213
 
 
37,463
 
 
18.0

 
(2,137
)
 
23.7

 
Synergy Europe
 
12,994
 
 
13,398
 
 
(3.0
)
 
(7
)
 
(3.0
)
 
Synergy North America
 
5,654
 
 
6,387
 
 
(11.5
)
 
—
 
 
(11.5
)
 
 
 
62,861
 
 
57,248
 
 
(9.8
)
 
(2,144
)
 
13.5

 
 
 
 
 
 
 
 
 
 
 
 
 
China and New Markets
 
6,378
 
 
2,059
 
 
209.8

 
—
 
 
209.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
171,768

 
 
$
165,125

 
4.0
 %
 
$
(3,771
)
 
6.3
 %
 


Active Distributors and Customers by Segment (1) 

 
 
As of June 30, 2016
 
As of December 31, 2015
 
 
 
Distributors
& Customers
 
Managers
 
Distributors
& Customers
 
Managers
 
 
 
 
 
 
 
 
 
 
 
NSP Americas
 
129,700

 
7,000

 
131,600

 
6,500

 
NSP Russia, Central and Eastern Europe
 
62,600

 
2,400

 
72,000

 
2,800

 
Synergy WorldWide
 
56,600

 
3,800

 
60,800

 
3,400

 
China and New Markets
 
—

 
—

 
—

 
—

 
 
 
248,900

 
13,200

 
264,400

 
12,700

 

(1)
Active Distributors and customers include Nature’s Sunshine Products’ independent Distributors and customers who have purchased products directly from the Company for resale and/or personal consumption during the previous three months ended as of the date indicated. Total Manager, Distributors and Customers, which includes those who have made a purchase in the last twelve months, was 554,500 as of June 30, 2016.

4




Cash Flow and Balance Sheet Highlights

•
Net cash provided by operating activities was $6.5 million for the six months ended June 30, 2016, as compared to $3.1 million of net cash provided by operating activities for the six months ended June 30, 2015.

•
Total assets on June 30, 2016 were $211.0 million, compared to $200.5 million on December 31, 2015.

•
The Company’s Board of Directors approved a quarterly cash dividend of $0.10 per share, payable on September 2, 2016, to shareholders of record as of the close of business on August 23, 2016. Dividend payments were $3.8 million during the first six months of 2016.


Conference Call

Nature’s Sunshine Products will host a conference call to discuss its second quarter 2016 results on August 8, 2016 at 4:30 PM Eastern Time.  The toll-free dial-in number for callers in the U.S. and Canada is 1-877-407-0789, conference ID: 13642367.  International callers can dial 1-201-689-8562, conference ID: 13642367.  A replay will be available from August 8, 2016 at 7:30 PM Eastern Time through August 22, 2016 at 11:59 PM Eastern Time by dialing 1-877-870-5176 (U.S. and Canada) or 1-858-384-5517 (International), replay PIN: 13642367.  The call will also be webcast live and will be available on the Investors section of Nature’s Sunshine Products’ website at www.naturessunshine.com for 90 days.


5




About Nature’s Sunshine Products

Nature’s Sunshine Products (NASDAQ: NATR), a leading natural health and wellness company, markets and distributes nutritional and personal care products through a global direct sales force of over 554,000 independent Managers, Distributors and customers in more than 40 countries. Nature’s Sunshine manufactures most of its products through its own state-of-the-art facilities to ensure its products continue to set the standard for the highest quality, safety and efficacy on the market today. The Company has four reportable business segments that are divided based on the characteristics of their Distributor base, similarities in compensation plans, as well as the internal organization of NSP’s officers and their responsibilities (NSP Americas; NSP Russia, Central and Eastern Europe; Synergy WorldWide; and China and New Markets). The Company also supports health and wellness for children around the world through its partnership with the Sunshine Heroes Foundation. Additional information about the Company can be obtained at its website, www.naturessunshine.com.

Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to the Company’s objectives, plans and strategies. All statements (other than statements of historical fact) that address activities, events or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are often characterized by terminology such as “believe,” “hope,” “may,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy” and similar expressions, and are based on assumptions and assessments made by management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, including the following.

•
any negative consequences resulting from the economy, including the availability of liquidity to the Company, its independent distributors and its suppliers or the willingness of its customers to purchase products;
•
its relationship with, and its inability to influence the actions of, its independent distributors, and other third parties with whom it does business;
•
improper activity by its employees or independent distributors;
•
negative publicity related to its products, ingredients, or direct selling organization and the nutritional supplement industry;
•
changing consumer preferences and demands;
•
its reliance upon, or the loss or departure of any member of, its senior management team, which could negatively impact its distributor relations and operating results;

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•
increased state and federal regulatory scrutiny of the nutritional supplement industry, including, but not limited to targeting of ingredients, testing methodology and product claims;
•
the competitive nature of its business and the nutritional supplement industry;
•
regulatory matters governing its products, ingredients, the nutritional supplement industry, its direct selling program, or the direct selling market in which it operates;
•
legal challenges to its direct selling program or to the classification of its independent distributors;
•
recent settlement between the Federal Trade Commission and a competitor of the Company may have implications for the direct selling industry and the Company;
•
risks associated with operating internationally and the effect of economic factors, including foreign exchange, inflation, disruptions or conflicts with the its third party importers, governmental sanctions, ongoing Ukraine and Russia political conflict, pricing and currency devaluation risks, especially in countries such as Ukraine, Russia and Belarus;
•
uncertainties relating to the application of transfer pricing, duties, value-added taxes, and other tax regulations, and changes thereto;
•
its dependence on increased penetration of existing markets;
•
cyber security threats and exposure to data loss;
•
its reliance on its information technology infrastructure;
•
the sufficiency of trademarks and other intellectual property rights;
•
changes in tax laws, treaties or regulations, or their interpretation;
•
taxation relating to its independent distributors;
•
product liability claims;
•
the full implementation of its joint venture for operations in China with Fosun Industrial Co., Ltd., as well as the legal complexities, unique regulatory environment and challenges of doing business in China generally;
•
its inability to register products for sale in Mainland China and difficulty or increased cost of importing products into Mainland China;
•
managing rapid growth in China; and
•
the slowing of the Chinese economy.

These and other risks and uncertainties that could cause actual results to differ from predicted results are more fully detailed under the caption “Risk Factors” in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 14, 2016.

All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in or incorporated by reference into this press release. Except as is required by law, the Company expressly disclaims any

7



obligation to publicly release any revisions to forward-looking statements to reflect events after the date of this press release.

Non-GAAP Financial Measures

The Company has included information which has not been prepared in accordance with generally accepted accounting principles (GAAP), such as information concerning Adjusted EBITDA and net sales excluding the impact of foreign currency exchange fluctuations. Management utilizes the non-GAAP measure Adjusted EBITDA in the evaluation of its operations and believes that this measure is a useful indicator of the Company’s ability to fund its business. This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, U.S. GAAP net income as an indicator of the Company’s operating performance. Moreover, Adjusted EBITDA, as presented by the Company, may not be comparable to similarly titled measures reported by other companies.

In addition, the Company believes presenting the impact of foreign currency fluctuations is useful to investors because it allows a more meaningful comparison of net sales of its foreign operations from period to period. Net sales excluding the impact of foreign currency fluctuations should not be considered in isolation or as an alternative to net sales in U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.

Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of Nature’s Sunshine Products’ performance in relation to other companies. The Company has included a reconciliation of Adjusted EBITDA to net income, the most comparable GAAP measure, in the attached financial tables.

    

8



NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share information)
(Unaudited)

 
 
Three Months Ended
June 30,
 
 
 
2016
 
2015
 
 
 
 
 
 
 
Net sales revenue
 
$
89,366

 
$
81,247

 
Cost of sales
 
(23,078
)
 
(21,068
)
 
Gross profit
 
66,288
 
 
60,179
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
Volume incentives
 
30,791
 
 
29,603
 
 
Selling, general and administrative
 
31,249
 
 
27,392
 
 
Operating income
 
4,248
 
 
3,184
 
 
Other income (loss), net
 
(622
)
 
(2
)
 
Income before provision for income taxes
 
3,626
 
 
3,182
 
 
Provision for income taxes
 
1,260
 
 
787
 
 
Net income from continuing operations
 
2,366
 
 
2,395
 
 
Income from discontinued operations
 
—
 
 
—
 
 
Net income
 
2,366
 
 
2,395
 
 
Net loss attributable to non-controlling interests
 
(202
)
 
(166
)
 
Net income attributable to common shareholders
 
$
2,568

 
$
2,561

 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
Basic earnings per share attributable to common shareholders:
 
 
 
 
 
Net income from continuing operations
 
$
0.14

 
$
0.13

 
Income from discontinued operations
 
$
—

 
$
—

 
Net income attributable to common shareholders
 
$
0.014

 
$
0.14

 
 
 
 
 
 
 
Diluted earnings per share attributable to common shareholders:
 
 
 
 
 
Net income from continuing operations
 
$
0.14

 
$
0.12

 
Income from discontinued operations
 
$
—

 
$
—

 
Net income attributable to common shareholders
 
$
0.14

 
$
0.13

 
 
 
 
 
 
 
Weighted average basic common shares outstanding
 
18,723
 
 
18,720
 
 
Weighted average diluted common shares outstanding
 
18,940
 
 
19,244
 
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.10

 
$
0.10

 


9





10



NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share information)
(Unaudited)

 
 
Six Months Ended
June 30,
 
 
 
2016
 
2015
 
 
 
 
 
 
 
Net sales revenue
 
$
171,768

 
$
165,125

 
Cost of sales
 
(45,098
)
 
(42,949
)
 
Gross profit
 
126,670
 
 
122,176
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
Volume incentives
 
60,668
 
 
59,940
 
 
Selling, general and administrative
 
59,634
 
 
53,722
 
 
Operating income
 
6,368
 
 
8,514
 
 
Other income (loss), net
 
937
 
 
(320
)
 
Income before provision for income taxes
 
7,305
 
 
8,194
 
 
Provision for income taxes
 
3,150
 
 
1,596
 
 
Net income from continuing operations
 
4,155
 
 
6,598
 
 
Income from discontinued operations
 
—
 
 
1,312
 
 
Net income
 
4,155
 
 
7,910
 
 
Net loss attributable to non-controlling interests
 
(482
)
 
(318
)
 
Net income attributable to common shareholders
 
$
4,637

 
$
8,228

 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
Basic earnings per share attributable to common shareholders:
 
 
 
 
 
Net income from continuing operations
 
$
0.25

 
$
0.35

 
Income from discontinued operations
 
$
—

 
$
0.07

 
Net income attributable to common shareholders
 
$
0.25

 
$
0.44

 
 
 
 
 
 
 
Diluted earnings per share attributable to common shareholders:
 
 
 
 
 
Net income from continuing operations
 
$
0.24

 
$
0.34

 
Income from discontinued operations
 
$
—

 
$
0.07

 
Net income attributable to common shareholders
 
$
0.24

 
$
0.43

 
 
 
 
 
 
 
Weighted average basic common shares outstanding
 
18,708
 
 
18,671
 
 
Weighted average diluted common shares outstanding
 
18,946
 
 
19,157
 
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.20

 
$
0.20

 


11




NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
(Unaudited)



12



 
 
June 30, 2016
 
December 31,
2015
 
Assets
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
41,428

 
$
41,420

 
 
 
Accounts receivable, net of allowance for doubtful accounts of $232 and $190, respectively
 
7,968
 
 
7,700
 
 
 
 
Investments available for sale
 
1,797
 
 
1,772
 
 
 
 
Inventories
 
45,002
 
 
38,495
 
 
 
 
Deferred income tax assets
 
4,795
 
 
5,021
 
 
 
 
Prepaid expenses and other
 
8,039
 
 
7,110
 
 
 
 
Total current assets
 
109,029
 
 
101,518
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net
 
70,423
 
 
68,728
 
 
 
 
Investment securities - trading
 
1,275
 
 
1,044
 
 
 
 
Intangible assets, net
 
513
 
 
559
 
 
 
 
Deferred income tax assets
 
17,385
 
 
17,339
 
 
 
 
Other assets
 
12,410
 
 
11,332
 
 
 
 
 
 
$
211,035

 
$
200,520

 
 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
Accounts payable
 
$
8,971

 
$
6,341

 
 
 
Accrued volume incentives
 
17,860
 
 
14,913
 
 
 
 
Accrued liabilities
 
23,995
 
 
23,726
 
 
 
 
Deferred revenue
 
4,895
 
 
4,160
 
 
 
 
Revolving credit facility payable
 
3,920
 
 
2,696
 
 
 
 
Income taxes payable
 
1,322
 
 
1,300
 
 
 
 
Total current liabilities
 
60,963
 
 
53,136
 
 
 
 
 
 
 
 
 
 
 
 
Liability related to unrecognized tax benefits
 
7,811
 
 
7,809
 
 
 
 
Deferred compensation payable
 
1,275
 
 
1,044
 
 
 
 
Other liabilities
 
2,368
 
 
2,266
 
 
 
 
Total liabilities
 
72,417
 
 
64,255
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders’ equity:
 
 
 
 
 
 
 
Common stock, no par value, 50,000 shares authorized, 18,747 and 18,588 shares issued and outstanding, respectively
 
128,146
 
 
126,670
 
 
 
 
Retained earnings
 
18,969
 
 
18,088
 
 
 
 
Noncontrolling interests
 
2,268
 
 
2,750
 
 
 
 
Accumulated other comprehensive loss
 
(10,765
)
 
(11,243
)
 
 
 
Total shareholders’ equity
 
138,618
 
 
136,265
 
 
 
 
 
 
$
211,035

 
$
200,520

 
 
 


13




NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)

14



 
 
Six Months Ended
June 30,
 
 
 
2016
 
2015
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
Net income
 
$
4,155

 
$
7,910

 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Provision for doubtful accounts
 
62
 
 
33
 
 
Depreciation and amortization
 
2,396
 
 
2,152
 
 
Share-based compensation expense
 
1,586
 
 
2,085
 
 
Loss (gain) on sale of property and equipment
 
78
 
 
(1,251
)
 
Deferred income taxes
 
311
 
 
(46
)
 
Purchase of trading investment securities
 
(252
)
 
(156
)
 
Proceeds from sale of trading investment securities
 
56
 
 
82
 
 
Realized and unrealized gains on investments
 
(60
)
 
(493
)
 
Foreign exchange (gains) losses
 
(546
)
 
764
 
 
Changes in assets and liabilities:
 
 
 
 
 
Accounts receivable
 
(164
)
 
(271
)
 
Inventories
 
(6,177
)
 
(659
)
 
Prepaid expenses and other current assets
 
(912
)
 
(4,057
)
 
Other assets
 
(1,027
)
 
16
 
 
Accounts payable
 
2,402
 
 
1,124
 
 
Accrued volume incentives
 
2,798
 
 
(146
)
 
Accrued liabilities
 
950
 
 
(2,102
)
 
Deferred revenue
 
735
 
 
(727
)
 
Income taxes payable
 
(150
)
 
(1,452
)
 
Liability related to unrecognized tax benefits
 
231
 
 
230
 
 
Deferred compensation payable
 
(9
)
 
93
 
 
Net cash provided by operating activities
 
6,463
 
 
3,129
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
Purchases of property, plant and equipment
 
(4,592
)
 
(13,071
)
 
Proceeds from sale of property, plant and equipment
 
—
 
 
1,373
 
 
Proceeds from the sale of investments available for sale
 
—
 
 
810
 
 
Net cash used in investing activities
 
(4,592
)
 
(10,888
)
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
Payments of cash dividends
 
(3,756
)
 
(3,740
)
 
Net borrowings on revolving credit facility
 
1,224
 
 
—
 
 
Net proceeds from the exercise of stock options and issuance of stock units
 
59
 
 
3,476
 
 
Payment of withholding taxes related to the vesting of restricted stock units
 
(169
)
 
—
 
 
Repurchase of common stock
 
—
 
 
(3,783
)
 
Net cash used in financing activities
 
(2,642
)
 
(4,047
)
 
Effect of exchange rates on cash and cash equivalents
 
779
 
 
(676
)
 
Net increase (decrease) in cash and cash equivalents
 
8
 
 
(12,482
)
 
Cash and cash equivalents at the beginning of the period
 
41,420
 
 
58,699
 
 
Cash and cash equivalents at the end of the period
 
$
41,428

 
$
46,217

 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
Cash paid for income taxes
 
$
3,036

 
$
6,185

 
Cash paid for interest
 
122
 
 
59
 
 
 
 
 
 
 
 

15




NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(Amounts in thousands)
(Unaudited)


 
 
Three Months Ended
June 30,
 
 
 
2016
 
2015
 
 
 
 
 
 
 
Net income from continuing operations
 
$
2,366
 
$
2,395
 
Adjustments:
 
 
 
 
 
Depreciation and amortization
 
1,226
 
1,156
 
Share-based compensation expense
 
704
 
746
 
Other (income) loss, net*
 
622
 
2
 
Provision (benefit) for income taxes
 
1,260
 
787
 
Adjusted EBITDA
 
$
6,178
 
$
5,086
 
 
 
 
 
 
 


 
 
Six Months Ended
June 30,
 
 
 
2016
 
2015
 
 
 
 
 
 
 
Net income from continuing operations
 
$
4,155
 
$
6,598
 
Adjustments:
 
 
 
 
 
Depreciation and amortization
 
2,396
 
2,152
 
Share-based compensation expense
 
1,586
 
2,085
 
Other (income) loss, net*
 
(937)
 
320
 
Provision (benefit) for income taxes
 
3,150
 
1,596
 
Adjusted EBITDA
 
$
10,350
 
$
12,751
 
 
 
 
 
 
 

* Other income (loss), net is primarily comprised of foreign exchange gains (losses), interest income, and interest expense.

Contact:

Stephen M. Bunker                 
Chief Financial Officer             
Nature’s Sunshine Products, Inc.         
Lehi, Utah 84043             
(801) 341-7303
investorrelations@natr.com


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Scott Van Winkle
Managing Director
ICR
(617) 956-6736



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NATURES SUNSHINE PRODUCTS INC Reports