Douglas Faggioli to step down as President and CEO
Michael Dean to become new President and CEO
15 March 2010 Nature’s Sunshine Products, Inc. (NASDAQ:NATR), a leading manufacturer and marketer of encapsulated herbs and vitamins, today reported financial operating results for the three and 12 month periods ended December 31, 2009.
The Company also announced that Doug Faggioli, after 27 years with Nature’s Sunshine Products, has decided to step down as President and CEO and as a member of the Board of Directors, effective June 30, 2010. Michael Dean, a member of the Board and a former ABC Cable Networks and Walt Disney Company executive, has been named to succeed him. Mr. Faggioli will remain as a consultant to the Company.
For the quarter ended December 31, 2009, the Company reported that net sales revenue totaled $89.9 million, compared to $88.2 million for the same three-month period in 2008, an increase of 1.9 percent. Operating income increased to $5.3 million, compared to an operating loss of $0.8 million for the same three-month period in 2008. Net income totaled $4.0 million, compared to a net loss of $0.5 million in the fourth quarter of last year. Basic and diluted net income per share was $0.26, compared to a net loss per share of $0.03 for the same period last year. These improvements in operating and net income were principally due to reduced operating expenses resulting from the favorable settlement of several value-added tax (“VAT”) and other non-income tax related contingencies, as well as management’s efforts to reduce selling, general and administrative expenses. Total operating expenses were $84.6 million, as compared to $89.0 million in the fourth quarter of 2008, a 4.9 percent improvement.
The Company’s balance sheet remained strong with cash and cash equivalents of $35.5 million, and shareholders’ equity of $57.1 million as of December 31, 2009. The Company has no long-term debt.
Net sales revenue for the year ended December 31, 2009 totaled $343.0 million, as compared to $373.2 million for the same period in 2008, a decline of approximately 8.1 percent. The decrease in sales was principally due to global economic conditions and the adverse effect of foreign currency fluctuations earlier in the year as a result of a stronger U.S. dollar. Excluding the effect of foreign currency fluctuations, sales in local currencies were down approximately 6.3 percent. Total operating expenses decreased to $332.3 million from $367.6 million in the prior year. Operating income increased to $10.8 million from $5.6 million year over year, primarily due to the reduction of operating expenses as a result of the favorable settlement of several VAT and other non-income tax related contingencies, as well as management’s efforts to reduce selling, general and administrative expenses. As a result, net income for the year increased to $6.1 million, or $0.39 per basic and diluted share, from a net loss of $1.8 million, $0.12 per basic and diluted share, for the prior year.
At year-end, active distributors totaled approximately 697,200, compared to 729,600 a year earlier, and active managers totaled approximately 28,800, compared to 25,900 at the end of 2008.