NATURES SUNSHINE PRODUCTS INC - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - March 14, 2016

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FOR IMMEDIATE RELEASE

NATURE’S SUNSHINE PRODUCTS REPORTS FOURTH QUARTER AND FULL YEAR 2015 FINANCIAL RESULTS

•
Sixth consecutive quarter of net sales growth for NSP United States and NSP Canada
•
Fourth quarter net sales revenue of $80.0 million was down 7.7% year-over-year; down 3.2% year-over-year on a local currency basis
•
Fourth quarter earnings from continuing operations of $0.19 per diluted common share
•
Repurchased $6.6 million of common stock during the fiscal year of 2015
•
Board of Directors approved a $0.10 per share quarterly cash dividend

LEHI, Utah, February 25, 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 fourth quarter and full year ended December 31, 2015.

Fourth Quarter 2015 Financial Highlights

•
Net sales revenue of $80.0 million, decreased 7.7% compared to $86.7 million in the fourth quarter of 2014. On a local currency basis, net sales revenue decreased 3.2% compared to the fourth quarter of 2014. Net sales revenue was negatively impacted by $3.8 million of unfavorable foreign currency exchange rate fluctuations, as well as a $3.8 million decline in net sales in the NSP Russia, Central and Eastern Europe segment.

•
Net income from continuing operations was $3.3 million, or $0.19 per diluted common share, compared to $0.9 million, or $0.05 per diluted common share, in the fourth quarter of 2014. Earnings per diluted common share for the fourth quarter of 2015, were impacted by several factors including: the Company’s investment in China of approximately $0.10 per share; foreign currency translation losses of approximately $0.04 per share; and the net sales decline in the Russia, Central and Eastern Europe segment of approximately $0.02 per share, offset by a $0.10 per share difference due to favorable changes in the effective tax rate.

•
Adjusted EBITDA was $4.6 million compared to $2.6 million in the fourth quarter of 2014. 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.

Full Year 2015 Financial Highlights

•
Net sales revenue of $324.7 million decreased 11.4% compared to $366.4 million in 2014. On a local currency basis, net sales revenue decreased 6.7% compared to 2014. Net sales revenue was negatively impacted by $16.7 million of unfavorable foreign currency exchange rate fluctuations, as well as a $22.9 million decline in net sales in the NSP Russia, Central and Eastern Europe segment.

•
Net income from continuing operations was $11.5 million, or $0.66 per diluted common share, compared to $19.8 million, or $1.12 per diluted common share, in 2014. Earnings per diluted common share for fiscal 2015 were impacted by several factors including: the Company’s




investment in China of approximately $0.27 per share; foreign currency translation expenses of approximately $0.14 per share; and the net sales decline in the Russia, Central and Eastern Europe segment of approximately $0.15 per share, offset by a $0.18 per share difference due to favorable changes in the effective tax rate.

•
Adjusted EBITDA was $22.9 million compared to $27.4 million in 2014.

Management Commentary

“Overall, our 2015 financial results were muted on the whole as a result of macroeconomic factors including the strength of the U.S. dollar and the ongoing conflict in Russia and Ukraine, in addition to the investments we have been making in China,” commented Gregory L. Probert, Chairman and Chief Executive Officer. “However, we continued to make progress against our strategy to deliver science-based products and programs to help drive enhanced Distributor adoption and engagement. We were particularly excited about the opening of our multi-million dollar research center in early 2015, the Hughes Center for Research and Innovation, which enables us to lead the development of effective herbal and nutritional products for consumers worldwide by studying supplement interactions at a molecular level. During 2015, we released 43 new products, two of which are patent-pending. Further, we were encouraged to see fourth quarter growth in four of our top five markets (representing 67% of worldwide revenue), including NSP United States and NSP Canada which posted their sixth consecutive quarters of year-over-year local currency sales growth. This growth was primarily due to increased traction from our IN.FORM program, improved retail sales and the success of key product launches and promotions.”

Mr. Probert continued, “We were particularly encouraged by the strong year-over-year, fourth quarter growth experienced by Synergy Asia. The region has been gaining momentum as a result of well-received product introductions and Summits in Korea, Japan and Indonesia. In an effort to spur Synergy’s growth in Europe and North America, we are working towards implementing a consistent product strategy across all regions with a more cohesive sales method focused on detox, weight management and a daily habit of health.”

“Fourth quarter total revenues and operating income continued to be adversely impacted on a year-over-year basis primarily as a result of the ongoing challenges in NSP Russia, Central and Eastern Europe associated with political unrest and local currency devaluations. That said, revenues in the NSP Russia, Central and Eastern Europe segment increased slightly over the prior quarter despite very strong currency headwinds as a testament to both targeted pricing promotions and product kits which have been introduced and priced to help strengthen and support the advancement of our Distributor base in the region. Despite the uncertainty, we will continue to act strategically and work with our local partner to stimulate growth in the region as the situation steadies,” added Mr. Probert.

Mr. Probert concluded, “We have been very focused on building a strong foundation in China and are proud to report that all aspects of our operating plan are on track. We are optimistic that we will be able to secure a license in China to conduct direct selling activities in the second half of 2016. We made significant traction towards this goal over the past year with the grand opening of our new Shanghai office, which will serve as the Nature’s Sunshine Products’ headquarters in China, in addition to several key new hires to help support our successful launch in the region. Additionally, we designed new product packaging to achieve a refreshed, premium look and continued the process for general food importation and blue cap registration for select products. We are very excited to enter China and look forward to providing updates on our progress in the coming quarters.”




Fourth Quarter 2015 Regional Sales by Operating Segment

 
 
Net Sales Revenue by Operating Segment
 
 
 
Three Months
Ended 
December 31, 2015
 
Three Months
Ended 
December 31, 2014
 
Percent
Change
 
Impact of
Currency
Exchange
 
Percent
Change
Excluding
Impact of
Currency
 
NSP Americas:
 
 
 
 
 
 
 
 
 
 
 
NSP North America
 
$
35,656

 
$
35,679

 
(0.1
)%
 
$
(498
)
 
1.3
 %
 
NSP Latin America
 
7,452
 
 
8,269
 
 
(9.9
)
 
(811
)
 
(0.1
)
 
 
 
43,108
 
 
43,948
 
 
(1.9
)
 
(1,309
)
 
1.1

 
 
 
 
 
 
 
 
 
 
 
 
 
NSP Russia, Central and Eastern Europe
 
6,829
 
 
10,647
 
 
(35.9
)
 
(120
)
 
(34.7
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Synergy WorldWide:
 
 
 
 
 
 
 
 
 
 
 
Synergy Asia Pacific
 
20,100
 
 
18,598
 
 
8.1

 
(1,486
)
 
16.1

 
Synergy Europe
 
6,359
 
 
8,939
 
 
(28.9
)
 
(989
)
 
(17.8
)
 
Synergy North America
 
2,577
 
 
3,302
 
 
(22.0
)
 
—
 
 
(22.0
)
 
 
 
29,036
 
 
30,839
 
 
(5.8
)
 
(2,475
)
 
2.2

 
 
 
 
 
 
 
 
 
 
 
 
 
China and New Markets
 
1,021
 
 
1,229
 
 
(16.9
)
 
—
 
 
(16.9
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
79,994

 
$
86,663

 
(7.7
)%
 
$
(3,905
)
 
(3.2
)%
 





Fiscal Year 2015 Regional Sales by Operating Segment

 
 
Net Sales Revenue by Operating Segment
 
 
 
Year Ended
December 31, 2015
 
Year Ended
December 31, 2014
 
Percent
Change
 
Impact of
Currency
Exchange
 
Percent
Change
Excluding
Impact of
Currency
 
NSP Americas:
 
 
 
 
 
 
 
 
 
 
 
NSP North America
 
$
147,017

 
$
145,650

 
0.9
 %
 
$
(1,753
)
 
2.1
 %
 
NSP Latin America
 
32,134
 
 
36,745
 
 
(12.5
)
 
(3,292
)
 
(3.6
)
 
 
 
179,151
 
 
182,395
 
 
(1.8
)
 
(5,045
)
 
1.0

 
 
 
 
 
 
 
 
 
 
 
 
 
NSP Russia, Central and Eastern Europe
 
27,408
 
 
50,274
 
 
(45.5
)
 
(463
)
 
(44.6
)
 
 
 
 
 
 
 
 
 
 
 
 
 
Synergy WorldWide:
 
 
 
 
 
 
 
 
 
 
 
Synergy Asia Pacific
 
76,479
 
 
81,199
 
 
(5.8
)
 
(6,592
)
 
2.3

 
Synergy Europe
 
25,829
 
 
31,732
 
 
(18.6
)
 
(5,091
)
 
(2.6
)
 
Synergy North America
 
11,773
 
 
15,170
 
 
(22.4
)
 
—
 
 
(22.4
)
 
 
 
114,081
 
 
128,101
 
 
(10.9
)
 
(11,683
)
 
(1.8
)
 
 
 
 
 
 
 
 
 
 
 
 
 
China and New Markets
 
4,065
 
 
5,597
 
 
(27.4
)
 
—
 
 
(27.4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
324,705

 
$
366,367

 
(11.4
)%
 
$
(17,191
)
 
(6.7
)%
 

Active Distributors and Customers by Segment (1) 
 
As of December 31, 2015
 
As of September 30, 2015
 
 
Distributors
& Customers
 
Managers
 
Distributors
& Customers
 
Managers
 
NSP Americas
131,600

 
6,500

 
136,900

 
6,800

 
NSP Russia, Central and Eastern Europe
72,000

 
2,800

 
66,500

 
2,700

 
Synergy WorldWide
60,800

 
3,400

 
53,400

 
3,500

 
China and New Markets
—

 
—

 
—

 
—

 
 
264,400

 
12,700

 
256,800

 
13,000

 

(1)
Active Distributors and customers includes 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.





Cash Flow and Balance Sheet Highlights

•
Net cash provided by operating activities was $10.2 million for the year ended December 31, 2015 as compared to $14.2 million for the year ended December 31, 2014.

•
Cash and cash equivalents at December 31, 2015 were $41.4 million, compared to $58.7 million at December 31, 2014.

•
During the three months ended December 31, 2015, the Company repurchased 43,000 shares for a total of $0.5 million of its common stock under its existing share repurchase plan. The Company’s total repurchases for the full year of 2015 were 501,000 shares for a total of $6.6 million.

•
The Company’s Board of Directors approved a quarterly cash dividend of $0.10 per share, payable on March 22, 2016, to shareholders of record as of the close of business on March 11, 2016. Dividend payments were $1.9 million during the fourth quarter of 2015 and were $7.5 for the full year of 2015.

Conference Call

Nature’s Sunshine Products will host a conference call to discuss its fourth quarter and full year 2015 results on February 25, 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: 13628088.  International callers can dial 1-201-689-8562, conference ID: 13628088.  A replay will be available from February 25, 2016 at 7:30 PM Eastern Time through March 10, 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: 13628088.  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.

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 576,000 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
Certain information included or incorporated herein by reference in this report may be deemed to be “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies. All statements (other than statements of historical fact) that address activities, events or developments that we intend, expect, project, believe or anticipate 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. For example, information appearing under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” includes forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties.

•
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;
•
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;
•
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;
•
managing rapid growth in China; and
•
the slowing of the Chinese economy and/or the devaluation of the Chinese Renminbi.

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, we expressly disclaim any obligation to publicly release any revisions to forward-looking statements to reflect events after the date of this press release. Throughout this press release, we refer to Nature’s Sunshine Products, Inc., together with its subsidiaries, as “we,” “us,” “our Company” or “the Company.”

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 because management utilizes this information in the evaluation of its operations and believes that these measures are a useful indicator of the Company’s ability to fund its business. These non-GAAP financial measures 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, these non-GAAP financial measures, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. 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 these non-GAAP measures to reported earnings under GAAP in the attached financial tables.

    




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

 
 
Three Months Ended
December 31,
 
 
 
2015
 
2014
 
 
 
 
 
 
 
Net sales revenue
 
$
79,994

 
$
86,663

 
Cost of sales
 
(21,753
)
 
(23,468
)
 
Gross profit
 
58,241
 
 
63,195
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
Volume incentives
 
29,156
 
 
31,727
 
 
Selling, general and administrative
 
26,865
 
 
30,634
 
 
Operating income
 
2,220
 
 
834
 
 
Other (loss) income, net
 
(25
)
 
349
 
 
Income from continuing operations before provision for income taxes
 
2,195
 
 
1,183
 
 
Provision (benefit) for income taxes
 
(1,140
)
 
309
 
 
Net income from continuing operations
 
3,335
 
 
874
 
 
Loss from discontinued operations
 
—
 
 
(4,964
)
 
Net income (loss)
 
3,335
 
 
(4,090
)
 
Net loss attributable to non-controlling interests
 
(358
)
 
(193
)
 
Net income (loss) attributable to common shareholders
 
$
3,693

 
$
(3,897
)
 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
Basic earnings per share attributable to common shareholders:
 
 
 
 
 
Net income from continuing operations
 
$
0.20

 
$
0.05

 
Loss from discontinued operations
 
$
—

 
$
(0.26
)
 
Net income (loss)
 
$
0.20

 
$
(0.21
)
 
 
 
 
 
 
 
Diluted earnings per share attributable to common shareholders:
 
 
 
 
 
Net income from continuing operations
 
$
0.19

 
$
0.05

 
Loss from discontinued operations
 
$
—

 
$
(0.25
)
 
Net income (loss)
 
$
0.19

 
$
(0.2
)
 
 
 
 
 
 
 
Weighted average basic common shares outstanding
 
18,591
 
 
18,728
 
 
Weighted average diluted common shares outstanding
 
19,023
 
 
19,229
 
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.10

 
$
0.10

 








NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share information)
(Unaudited)
 
 
Year Ended
December 31,
 
 
 
2015
 
2014
 
 
 
 
 
 
 
Net sales revenue
 
$
324,705

 
$
366,367

 
Cost of sales
 
(85,345
)
 
(91,584
)
 
Gross profit
 
239,360
 
 
274,783
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
Volume incentives
 
117,786
 
 
135,808
 
 
Selling, general and administrative
 
107,702
 
 
119,927
 
 
Operating income
 
13,872
 
 
19,048
 
 
Other loss, net
 
(592
)
 
(34
)
 
Income from continuing operations before provision for income taxes
 
13,280
 
 
19,014
 
 
Provision (benefit) for income taxes
 
1,740
 
 
(743
)
 
Net income from continuing operations
 
11,540
 
 
19,757
 
 
Income (loss) from discontinued operations
 
2,116
 
 
(9,957
)
 
Net income
 
13,656
 
 
9,800
 
 
Net loss attributable to non-controlling interests
 
(1,031
)
 
(216
)
 
Net income attributable to common shareholders
 
$
14,687

 
$
10,019

 
 
 
 
 
 
 
Earnings per common share:
 
 
 
 
 
Basic earnings per share attributable to common shareholders:
 
 
 
 
 
Net income from continuing operations
 
$
0.67

 
$
1.15

 
Income (loss) from discontinued operations
 
$
0.11

 
$
(0.57
)
 
Net income
 
$
0.79

 
$
0.58

 
 
 
 
 
 
 
Diluted earnings per share attributable to common shareholders:
 
 
 
 
 
Net income from continuing operations
 
$
0.66

 
$
1.12

 
Income (loss) from discontinued operations
 
$
0.11

 
$
(0.56
)
 
Net income
 
$
0.77

 
$
0.56

 
 
 
 
 
 
 
Weighted average basic common shares outstanding
 
18,656
 
 
17,108
 
 
Weighted average diluted common shares outstanding
 
19,177
 
 
17,641
 
 
 
 
 
 
 
 
Dividends declared per common share
 
$
0.40

 
$
1.90

 





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

 
 
December 31,
2015
 
December 31,
2014
 
Assets
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
41,420

 
$
58,699

 
 
 
Accounts receivable, net of allowance for doubtful accounts of $190 and $849, respectively
 
7,700
 
 
6,732
 
 
 
 
Investments available for sale
 
1,772
 
 
2,546
 
 
 
 
Inventories
 
38,495
 
 
40,438
 
 
 
 
Deferred income tax assets
 
5,021
 
 
4,950
 
 
 
 
Prepaid expenses and other
 
7,110
 
 
7,884
 
 
 
 
Total current assets
 
101,518
 
 
121,249
 
 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment, net
 
68,728
 
 
51,343
 
 
 
 
Investment securities - trading
 
1,044
 
 
1,038
 
 
 
 
Intangible assets, net
 
559
 
 
704
 
 
 
 
Deferred income tax assets
 
17,339
 
 
14,495
 
 
 
 
Other assets
 
11,332
 
 
7,970
 
 
 
 
 
 
$
200,520

 
$
196,799

 
 
 
 
 
 
 
 
 
 
 
Liabilities and Shareholders’ Equity
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
Accounts payable
 
$
6,341

 
$
5,237

 
 
 
Accrued volume incentives
 
14,913
 
 
16,867
 
 
 
 
Accrued liabilities
 
23,726
 
 
28,957
 
 
 
 
Deferred revenue
 
4,160
 
 
4,717
 
 
 
 
Revolving credit facility payable
 
2,696
 
 
2,131
 
 
 
 
Income taxes payable
 
1,300
 
 
—
 
 
 
 
Total current liabilities
 
53,136
 
 
57,909
 
 
 
 
 
 
 
 
 
 
 
 
Liability related to unrecognized tax benefits
 
7,809
 
 
6,598
 
 
 
 
Deferred compensation payable
 
1,044
 
 
1,038
 
 
 
 
Other liabilities
 
2,266
 
 
2,297
 
 
 
 
Total liabilities
 
64,255
 
 
67,842
 
 
 
 
 
 
 
 
 
 
 
 
Shareholders’ equity:
 
 
 
 
 
 
 
Common stock, no par value, 50,000 shares authorized, 18,596 and 18,662 shares issued and outstanding as of December 31, 2015, and December 31, 2014, respectively
 
126,670
 
 
125,489
 
 
 
 
Retained earnings
 
18,088
 
 
10,891
 
 
 
 
Noncontrolling interests
 
2,750
 
 
3,781
 
 
 
 
Accumulated other comprehensive loss
 
(11,243
)
 
(11,204
)
 
 
 
Total shareholders’ equity
 
136,265
 
 
128,957
 
 
 
 
 
 
$
200,520

 
$
196,799

 
 
 






NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)
 
 
Year Ended
December 31,
 
 
 
2015
 
2014
 
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
Net income
 
$
13,656

 
$
9,800

 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Write-off of cumulative translation adjustment
 
—
 
 
4,135
 
 
Impairment of Venezuela property, plant and equipment, net
 
—
 
 
2,947
 
 
Provision for doubtful accounts
 
21
 
 
(121
)
 
Depreciation and amortization
 
4,525
 
 
4,409
 
 
Share-based compensation expense
 
4,485
 
 
3,948
 
 
Tax benefit from stock option exercise
 
—
 
 
(307
)
 
(Gain) loss on sale of property and equipment
 
(2,703
)
 
132
 
 
Deferred income taxes
 
(3,373
)
 
(3,927
)
 
Amortization of bond discount
 
—
 
 
3
 
 
Purchase of trading investment securities
 
(252
)
 
(162
)
 
Proceeds from sale of trading investment securities
 
239
 
 
151
 
 
Realized and unrealized gains on investments
 
(470
)
 
(56
)
 
Foreign exchange losses (gains)
 
1,948
 
 
(225
)
 
Changes in assets and liabilities:
 
 
 
 
 
Accounts receivable
 
(1,091
)
 
3,457
 
 
Inventories
 
933
 
 
748
 
 
Prepaid expenses and other current assets
 
636
 
 
3,411
 
 
Other assets
 
(4,010
)
 
(1,235
)
 
Accounts payable
 
593
 
 
(359
)
 
Accrued volume incentives
 
(1,427
)
 
(1,905
)
 
Accrued liabilities
 
(3,451
)
 
(5,360
)
 
Deferred revenue
 
(557
)
 
544
 
 
Income taxes payable
 
(914
)
 
25
 
 
Liability related to unrecognized tax benefits
 
1,368
 
 
(5,804
)
 
Deferred compensation payable
 
6
 
 
(67
)
 
Net cash provided by operating activities
 
10,162
 
 
14,182
 
 
CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
Purchases of property, plant and equipment
 
(22,527
)
 
(26,285
)
 
Proceeds from sale of property, plant and equipment
 
3,128
 
 
85
 
 
Purchase of investments available for sale
 
(3
)
 
(721
)
 
Proceeds from the sale of investments available for sale
 
810
 
 
247
 
 
Net cash used in investing activities
 
(18,592
)
 
(26,674
)
 
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
Payments of cash dividends
 
(7,490
)
 
(35,228
)
 
Net borrowings on revolving credit facility
 
2,696
 
 
—
 
 
Principal payments of long-term debt and revolving credit facility
 
—
 
 
(12,267
)
 
Net proceeds from the issuance of shares to noncontrolling interest
 
—
 
 
44,795
 
 
Investment by noncontrolling interest
 
—
 
 
4,000
 
 
Proceeds from the exercise of stock options
 
3,861
 
 
772
 
 
Tax benefit from stock option exercise
 
—
 
 
307
 
 
Repurchase of common stock
 
(6,645
)
 
(7,455
)
 
Net cash used in financing activities
 
(7,578
)
 
(5,076
)
 
Effect of exchange rates on cash and cash equivalents
 
(1,271
)
 
(980
)
 
Net decrease in cash and cash equivalents
 
(17,279
)
 
(18,548
)
 




Cash and cash equivalents at the beginning of the period
 
58,699
 
 
77,247
 
 
Cash and cash equivalents at the end of the period
 
$
41,420

 
$
58,699

 
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
 
 
 
 
 
Cash paid for income taxes
 
$
9,782

 
$
6,450

 
Cash paid for interest
 
56
 
 
171
 
 
 
 
 
 
 
 

NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET INCOME TO ADJUSTED EBITDA
(Amounts in thousands)
(Unaudited)
 
 
Three Months Ended
December 31,
 
 
 
2015
 
2014
 
 
 
 
 
 
 
Net income from continuing operations
 
$
3,335

 
$
874

 
Adjustments:
 
 
 
 
 
Depreciation and amortization
 
1,120
 
 
899
 
 
Share-based compensation expense
 
1,241
 
 
914
 
 
Other (income) loss, net*
 
25
 
 
(349
)
 
Provision (benefit) for income taxes
 
(1,140
)
 
309
 
 
Adjusted EBITDA
 
$
4,581

 
$
2,647

 
 
 
 
 
 
 

 
 
Year Ended
December 31,
 
 
 
2015
 
2014
 
 
 
 
 
 
 
Net income from continuing operations
 
$
11,540

 
$
19,757

 
Adjustments:
 
 
 
 
 
Depreciation and amortization
 
4,525
 
 
4,409
 
 
Share-based compensation expense
 
4,485
 
 
3,948
 
 
Other (income) loss, net*
 
592
 
 
34
 
 
Provision (benefit) for income taxes
 
1,740
 
 
(743
)
 
Adjusted EBITDA
 
$
22,882

 
$
27,405

 
 
 
 
 
 
 

* 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


NATURES SUNSHINE PRODUCTS INC Reports