SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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For the Quarterly Period Ended |
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Commission File Number |
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March 31, 2004 |
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0-8707 |
NATURE’S SUNSHINE PRODUCTS, INC.
(Exact name of Registrant as specified in its charter)
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Utah |
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87-0327982 |
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(State or
other jurisdiction of |
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(IRS
Employer |
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75 East 1700 South |
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(Address of principal executive offices and zip code) |
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(801) 342-4300 |
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(Registrant’s telephone number including area code) |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).
Yes ý No o
The number of shares of Common Stock, no par value, outstanding on May 6, 2004 was 14,906,666 shares.
When we refer in this Form 10-Q to the “Company,” “we,” “our,” and “us,” we mean Nature’s Sunshine Products, Inc., a Utah corporation, together with our subsidiaries.
NATURE’S SUNSHINE PRODUCTS, INC.
FORM 10-Q
For the Quarter Ended March 31, 2004
Table of Contents
2
Item 1. FINANCIAL STATEMENTS
NATURE’S
SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Amounts in Thousands)
(Unaudited)
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March 31, |
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December 31, |
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ASSETS |
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CURRENT ASSETS: |
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Cash and cash equivalents |
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$ |
35,196 |
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$ |
30,665 |
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Accounts receivable, net |
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7,080 |
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5,567 |
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Inventories, net |
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27,663 |
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26,528 |
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Deferred income tax assets |
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3,345 |
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3,553 |
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Prepaid expenses and other |
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10,776 |
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9,723 |
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Total current assets |
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84,060 |
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76,036 |
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PROPERTY, PLANT AND EQUIPMENT, net |
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31,993 |
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32,318 |
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LONG-TERM INVESTMENTS |
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7,584 |
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6,416 |
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DEFERRED TAX ASSETS LONG TERM |
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6,153 |
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5,359 |
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DEFINITE-LIVED INTANGIBLE ASSETS, net |
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2,000 |
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2,094 |
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OTHER ASSETS |
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2,856 |
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3,335 |
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$ |
134,646 |
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$ |
125,558 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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CURRENT LIABILITIES: |
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Line of credit |
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$ |
— |
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$ |
5,000 |
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Accounts payable |
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6,883 |
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4,003 |
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Accrued volume incentives |
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15,638 |
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12,093 |
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Accrued liabilities |
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19,895 |
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18,009 |
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Income taxes payable |
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6,930 |
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6,879 |
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Total current liabilities |
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49,346 |
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45,984 |
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DEFERRED COMPENSATION |
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2,213 |
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2,232 |
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SHAREHOLDERS’ EQUITY: |
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Common Stock, no par value; 20,000 shares authorized, 19,446 shares issued |
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20,483 |
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25,437 |
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Retained earnings |
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127,248 |
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124,997 |
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Treasury stock, at cost, 4,716 and 5,267 shares, respectively |
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(45,334 |
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(54,833 |
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Accumulated other comprehensive loss |
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(19,310 |
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(18,259 |
) |
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Total shareholders’ equity |
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83,087 |
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77,342 |
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$ |
134,646 |
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$ |
125,558 |
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See accompanying notes to condensed consolidated financial statements.
3
NATURE’S
SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS
OF INCOME
AND COMPREHENSIVE INCOME
(Amounts in Thousands, Except Per-Share Information)
(Unaudited)
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Three Months Ended |
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2004 |
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2003 |
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(As
Restated, |
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NET SALES REVENUE (net of the rebate portion of volume incentives of $9,824 and $9,478, respectively) |
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$ |
76,896 |
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$ |
62,663 |
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COST AND EXPENSES: |
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Cost of goods sold |
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15,299 |
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13,014 |
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Volume incentives |
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29,488 |
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22,622 |
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Selling, general and administrative |
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28,505 |
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24,812 |
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OPERATING INCOME |
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3,604 |
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2,215 |
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OTHER INCOME |
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Interest income |
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97 |
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145 |
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Interest expense |
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(14 |
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(45 |
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Other income (loss), net |
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773 |
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193 |
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856 |
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293 |
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INCOME BEFORE PROVISION FOR INCOME TAXES |
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4,460 |
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2,508 |
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PROVISION FOR INCOME TAXES |
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1,472 |
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904 |
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NET INCOME |
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2,988 |
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1,604 |
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OTHER COMPREHENSIVE INCOME (LOSS), net of tax: |
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Foreign currency translation adjustments |
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(1,068 |
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(695 |
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Net unrealized holding gains (losses) on marketable securities |
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27 |
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(806 |
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Reclassification adjustment for net realized gains on marketable securities included in net income |
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(10 |
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— |
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(1,051 |
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(1,501 |
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COMPREHENSIVE INCOME |
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$ |
1,937 |
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$ |
103 |
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BASIC NET INCOME PER COMMON SHARE |
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$ |
0.21 |
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$ |
0.11 |
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