UNITED STATES

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

 

For the Quarterly Period Ended                     Commission File Number

March 31, 2005                                                                   0-8707

NATURE'S SUNSHINE PRODUCTS, INC.

(Exact name of Registrant as specified in its charter)

 

 

75 East 1700 South

Provo, Utah  84606

(Address of principal executive offices and zip code)

 

(801) 342-4300

(Registrant's telephone number including area code)

 

         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 5, 2005 was 15,223,951 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, 2005

 

Table of Contents

 

Part I. Financial Information
	Item 1.	Financial Statements
		Condensed Consolidated Balance Sheets
		Condensed Consolidated Statements of Income and Comprehensive Income
		Condensed Consolidated Statements of Cash Flows
		Notes to Condensed Consolidated Financial Statements
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk
	Item 4.	Disclosure Controls and Procedures
Part II. Other Information
	Item 1.	Legal Proceedings
	Item 5.	Other Information
	Item 6.	Exhibits

 

2

 

PART I  FINANCIAL INFORMATION

 

Item 1.  FINANCIAL STATEMENTS

 

NATURE'S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in Thousands)

(Unaudited)

 

		March 31, 2005			December 31, 2004
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	40,199		$	36,206
Accounts receivable, net		5,927			6,540
Inventories, net		37,226			36,713
Deferred income tax assets		5,431			4,525
Prepaid expenses and other		11,118			8,522
Total current assets		99,901			92,506
PROPERTY, PLANT AND EQUIPMENT, net		33,887			34,731
LONG-TERM INVESTMENTS		7,564			7,746
DEFERRED INCOME TAX ASSETS, NET		5,657			5,734
DEFINITE-LIVED INTANGIBLE ASSETS, net		1,682			1,757
OTHER ASSETS		2,448			2,602
		$	151,139		$	145,076
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Line of credit		$	10,000		$	7,500
Accounts payable		4,002			4,509
Accrued volume incentives		16,321			14,662
Accrued liabilities		16,292			20,665
Income taxes payable		6,446			4,476
Total current liabilities		53,061			51,812
DEFERRED COMPENSATION		2,058			2,045
SHAREHOLDERS’ EQUITY:
Common Stock, no par value; 20,000 shares authorized, 19,446 shares issued		22,605			21,692
Retained earnings		142,289			139,074
Treasury stock, at cost, 4,385 and 4,571 shares, respectively		(49,940		)	(51,324		)
Accumulated other comprehensive loss		(18,934		)	(18,223		)
Total shareholders’ equity		96,020			91,219
		$	151,139		$	145,076

 

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)

 

 

 

		Three Months Ended March 31,
		2005			2004
NET SALES REVENUE (net of the rebate portion of volume incentives of $9,816 and $9,824, respectively)		$	86,401		$	77,678
COST AND EXPENSES:
Cost of goods sold		14,698			15,419
Volume incentives		33,508			29,488
Selling, general and administrative		32,644			29,167
OPERATING INCOME		5,551			3,604
OTHER INCOME
Interest income		51			97
Interest expense		(75		)	(14		)
Other income, net		98			773
		74			856
INCOME BEFORE PROVISION FOR INCOME TAXES		5,625			4,460
PROVISION FOR INCOME TAXES