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
September 30, 2004
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Commission
File Number
0-8707
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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
incorporation or organization)
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(IRS
Employer
Identification No.)
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75 East
1700 South
Provo, Utah 84606
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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 November 7, 2004 was 15,390,269 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.
PART I FINANCIAL INFORMATION
Item
1. FINANCIAL STATEMENTS
NATURE’S SUNSHINE PRODUCTS,
INC. AND SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)
(Unaudited)
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September 30,
2004
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December 31,
2003
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ASSETS
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CURRENT
ASSETS:
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Cash and
cash equivalents
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$
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39,521
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$
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30,665
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Accounts
receivable, net
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6,920
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5,567
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Inventories,
net
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35,087
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26,528
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Deferred
income tax assets
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4,747
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3,553
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Prepaid
expenses and other
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13,261
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9,723
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Total
current assets
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99,536
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76,036
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PROPERTY,
PLANT AND EQUIPMENT, net
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33,874
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32,318
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LONG-TERM INVESTMENTS
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7,554
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6,416
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DEFERRED TAX
ASSETS LONG TERM
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5,619
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5,359
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DEFINITE-LIVED
INTANGIBLE ASSETS, net
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1,832
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2,094
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OTHER ASSETS
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2,053
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3,335
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$
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150,468
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$
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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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—
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$
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5,000
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Accounts
payable
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6,519
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4,003
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Accrued
volume incentives
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14,323
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12,093
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Accrued
liabilities
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24,993
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18,009
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Income taxes
payable
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8,561
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6,879
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Total
current liabilities
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54,396
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45,984
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DEFERRED
COMPENSATION
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2,010
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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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19,904
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25,437
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Retained
earnings
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135,178
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124,997
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Treasury
stock, at cost, 4,352 and 5,267 shares, respectively
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(41,142
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)
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(54,833
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)
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Accumulated
other comprehensive loss
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(19,878
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)
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(18,259
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)
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Total
shareholders’ equity
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94,062
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77,342
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$
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150,468
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$
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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 (LOSS)
AND
COMPREHENSIVE INCOME (LOSS)
(Amounts in Thousands, Except
Per-Share Information)
(Unaudited)
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Three Months Ended
September 30,
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2004
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2003
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(As Restated,
See Note 1)
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NET SALES
REVENUE (net of the rebate portion of volume incentives of $8,823 and $9,600,
respectively)
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$
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83,617
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$
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63,470
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COST AND
EXPENSES:
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Cost of
goods sold
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15,312
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13,228
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Volume
incentives
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33,363
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23,503
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Selling,
general and administrative
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28,160
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27,787
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OPERATING
INCOME (LOSS)
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6,782
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(1,048
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)
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OTHER INCOME
(EXPENSE)
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Interest
income
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94
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110
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Interest
expense
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(59
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)
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(77
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)
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Other income
(expense), net
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140
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187
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175
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220
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INCOME
(LOSS) BEFORE PROVISION FOR INCOME TAXES
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6,957
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(828
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)
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PROVISION
(BENEFIT) FOR INCOME TAXES
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2,350
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(264
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)
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NET INCOME
(LOSS)
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4,607
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(564
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)
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OTHER COMPREHENSIVE
INCOME (LOSS), net of tax:
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Foreign
currency translation adjustments
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