#USANA Health Sciences Reports Strong First Quarter 2015 Financial Results

News Release

USANA Health Sciences Reports Strong First Quarter 2015 Financial Results

First quarter net sales increased 20.3% to $219.4 million First quarter EPS increased 30.4% to $1.50 Number of active Associates increased 41.9% Company increases outlook for 2015; announces plans to enter 20th market SALT LAKE CITY--(BUSINESS WIRE)--May 5, 2015-- USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal first quarter ended April 4, 2015. The Company also increased its financial outlook for 2015. Financial Performance For the first quarter of 2015, net sales increased by 20.3% to $219.4 million, compared with $182.4 million in the prior-year period. The increase in net sales was driven by 41.9% growth in the number of active Associates, largely as a result of strong Associate growth in the Company’s Asia Pacific region. Net sales, on a comparative basis, were positively impacted by: (i) continued momentum from the incentive program that the Company offered during the fourth quarter of 2014, which carried over for several weeks into the first quarter of 2015 in China, (ii) incremental sales that occurred ahead of price increases announced in China during the quarter, and (iii) a more favorable operating environment in China compared to the prior-year period. The Company estimates that the incremental sales ahead of the price increases in China contributed approximately $12 million to net sales for the quarter. Net sales, on a comparative basis, were negatively impacted by $9.2 million due to a strengthening U.S. dollar. Net earnings for the first quarter increased by 19.0% to $19.7 million, compared with $16.5 million during the prior-year period. The increase in net earnings was driven by higher net sales. Although gross margins improved year-over-year by 100 basis points, and selling, general and administrative expense decreased relative to net sales, higher Associate Incentives expense offset these improvements. On a relative basis, Associate Incentives expense increased 300 basis points, due largely to the previously noted incentive program. Although we expected Associate Incentives to be elevated again during the first quarter as a result of this incentive, it came in modestly higher than anticipated. Earnings per diluted share for the quarter increased 30.4% to $1.50, compared with $1.15 in the first quarter of the prior year. The increase in earnings per share was attributable to higher net earnings and a lower number of diluted shares outstanding due to the Company’s share repurchases during 2014. Weighted average diluted shares outstanding were 13.1 million as of the end of the first quarter of 2015, compared with 14.4 million in the prior-year period. During the first quarter of 2015, the Company did not repurchase any shares of common stock. The Company ended the first quarter with $128.6 million in cash and cash equivalents, zero debt and $61.2 million remaining under the current share repurchase authorization. “The first quarter was an excellent start to another promising year for USANA,” said Kevin Guest, USANA’s President. “Our results for the quarter were better than expected, notwithstanding the typical pressure from the Chinese New Year and continued headwinds from a strengthening U.S. dollar. As reported, our double-digit sales, earnings and customer growth during the quarter were driven by the strong momentum we continue to see across our business and higher-than-expected sales in China. “We also recently announced plans to enter Indonesia later this year, which will mark a milestone 20th market for USANA. Indonesia represents an excellent growth opportunity for our company in a market whose middle class is expected to double over the next five years. Our team is enthusiastic about the potential of this new market opportunity in Asia, a region that continues to generate significant growth for USANA,” continued Mr. Guest. Regional Results Net sales in the Asia Pacific region increased by 31.4% to $155.9 million, compared with $118.6 million for the first quarter of the prior year. This year-over-year increase can be attributed to 43.0% sales growth in the Greater Chinaregion, 12.1% sales growth in the Southeast Asia Pacific region, and 26.6% sales growth in the North Asia region. Sales growth in Greater China was driven by triple-digit sales and customer growth in Mainland China, while growth in Southeast Asia Pacific resulted from double-digit sales and customer growth in most markets in that region. Finally, sales growth in North Asia was driven by double-digit sales and customer growth in South Korea. The number of active Associates in the Asia Pacific region increased by 58.5% year-over-year, and increased 9.8% sequentially. Net sales in the Asia Pacific region were negatively impacted by $5.5 million, on a year-over-year comparative basis, due to a strengthening U.S. dollar. Net sales in the Americas/Europe region were essentially flat at $63.5 million, due primarily to continued pressure from a strengthening dollar, which negatively impacted sales by $3.7 million. The Company’s results in this region were driven by double-digit local currency sales growth in Canada and Mexico. The number of active Associates in this region increased by 4.9% compared to the prior-year period. “We continue to see strong sales and customer growth in most of our markets worldwide and expect this momentum to continue during 2015,” continued Mr. Guest. “While China continued to lead the way, it is noteworthy that we generated double-digit growth in many of our markets around the world. Customer growth continues to be our primary objective, as we focus on improving the overall health and nutrition of individuals and families around the world.” Outlook The Company provided the following updated consolidated net sales and earnings per share outlook for 2015: Consolidated net sales between $870 million and $890 million, versus the previous outlook of between $850 million and $870 million Earnings per share between $6.45 and $6.75, versus the previous outlook of between $6.40 and $6.70 “USANA generated solid results during the first quarter,” said Chief Financial Officer, Paul Jones. “We are updating our outlook for 2015 due to our stronger-than-expected first quarter performance and the general momentum we are seeing in our business. While Associate Incentives expense was elevated again this quarter as a result of the incentive program that carried over into 2015, we expect this expense to begin to trend down beginning in the second quarter. Our outlook includes the previously announced investments to strengthen our infrastructure, build even greater brand-awareness, and drive product and technology innovation. Our outlook also reflects our confidence in the fundamental strength of our business, ability to execute our growth strategies, and belief that 2015 will be another record year for USANA.” Conference Call The Company has posted the “Management Commentary, Results and Outlook” document on the Company’s website (www.usanahealthsciences.com) under the “Investor Relations” section of the site. USANA will hold a conference call and webcast to discuss today’s announcement with investors on Wednesday, May 6, 2015 at 11:00 AM Eastern Time. Investors may listen to the call by accessing USANA’s website at http://www.usanahealthsciences.com. The call will consist of brief opening remarks by the Company’s management team, before moving directly into questions and answers. About USANA USANA develops and manufactures high-quality nutritional, personal care, and weight-management products that are sold directly to Associates and Preferred Customers throughout the United States, Canada, Australia, New Zealand, Hong Kong, China, Japan, Taiwan, South Korea, Singapore, Mexico, Malaysia, the Philippines, the Netherlands, the United Kingdom, Thailand, France, Belgium and Colombia. More information on USANA can be found at http://www.usanahealthsciences.com. Safe Harbor This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including global economic conditions generally, reliance upon our network of independent Associates, the governmental regulation of our products, manufacturing and marketing risks, adverse publicity risks, and risks associated with our international expansion. The contents of this release should be considered in conjunction with the risk factors, warnings, and cautionary statements that are contained in our most recent filings with the Securities and Exchange Commission.       USANA Health Sciences, Inc. Consolidated Statements of Earnings (In thousands, except per share data) (Unaudited)     Quarter Ended 29-Mar-14 4-Apr-15   Net sales $ 182,401 $ 219,378 Cost of sales   33,828   38,364 Gross profit 148,573 181,014   Operating expenses Associate incentives 78,874 101,353 Selling, general and administrative   44,577   49,875   Earnings from operations 25,122 29,786   Other income (expense)   125   168 Earnings before income taxes 25,247 29,954   Income taxes   8,710   10,274   NET EARNINGS $ 16,537 $ 19,680     Earnings per share - diluted $ 1.15 $ 1.50 Weighted average shares outstanding - diluted 14,395 13,085     USANA Health Sciences, Inc. Consolidated Balance Sheets (In thousands) (Unaudited)     As of As of ASSETS 3-Jan-15 4-Apr-15 Current Assets Cash and cash equivalents $ 111,126 $ 128,569 Inventories 45,248 50,959 Prepaid expenses and other current assets   34,553   31,940 Total current assets 190,927 211,468   Property and equipment, net 71,164 73,374 Goodwill 17,941 18,055 Intangible assets, net 40,952 41,250 Deferred income taxes 5,933 5,861 Other assets   23,667   25,040 Total assets $ 350,584 $ 375,048     LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts payable $ 7,779 $ 9,474 Other current liabilities   100,926   100,878 Total current liabilities 108,705 110,352   Other long-term liabilities 1,114 1,110 Deferred income taxes 10,601 10,279   Stockholders' equity   230,164   253,307 Total liabilities and stockholders' equity $ 350,584 $ 375,048     USANA Health Sciences, Inc. Sales by Region (Unaudited) (In thousands)           Quarter Ended 29-Mar-14 4-Apr-15 Region   Americas and Europe $ 63,815 35.0 % $ 63,524 28.9 %   Asia Pacific   Southeast Asia Pacific 40,448 22.2 % 45,339 20.7 %   Greater China 70,847 38.8 % 101,286 46.2 %   North Asia   7,291 4.0 %   9,229 4.2 %   Asia Pacific Total   118,586 65.0 %   155,854 71.1 %   Total $ 182,401 100.0 % $ 219,378 100.0 %                 Active Associates by Region (1) (Unaudited)   As of 29-Mar-14 4-Apr-15 Region   Americas and Europe 82,000 30.9 % 86,000 22.8 %   Asia Pacific   Southeast Asia Pacific 64,000 24.2 % 77,000 20.5 %   Greater China 110,000 41.5 % 201,000 53.5 %   North Asia 9,000 3.4 % 12,000 3.2 %   Asia Pacific Total 183,000 69.1 % 290,000 77.2 %         Total 265,000 100.0 % 376,000 100.0 %   (1) Associates are independent distributors of our products who also purchase our products for their personal use. We only count as active those Associates who have purchased from us any time during the most recent three-month period, either for personal use or for resale.               Active Preferred Customers by Region (2) (Unaudited)   As of 29-Mar-14 4-Apr-15 Region   Americas and Europe 61,000 78.2 % 63,000 73.3 %   Asia Pacific   Southeast Asia Pacific 10,000 12.8 % 12,000 14.0 %   Greater China 3,000 3.9 % 4,000 4.6 %   North Asia 4,000 5.1 % 7,000 8.1 %   Asia Pacific Total 17,000 21.8 % 23,000 26.7 %         Total 78,000 100.0 % 86,000 100.0 %   (2) Preferred Customers purchase our products strictly for their personal use and are not permitted to resell or to distribute the products. We only count as active those Preferred Customers who have purchased from us any time during the most recent three-month period. Source: USANA Health Sciences, Inc. USANA Health Sciences, Inc. Investors contact: Patrique Richards, 801-954-7961 Investor Relations investor.relations@us.usana.com Media contact: Dan Macuga, 801-954-7280 Public Relations

#USANA True Health Foundation Sends Food and Medical Kits to Victims of Massive Quake

News Release

$50,000 Donated To Earthquake Relief Efforts In Nepal

SALT LAKE CITY, April 30, 2015 /PRNewswire/ -- Millions are in need of critical aid after a 7.8-magnitude earthquake devastated Nepal on Saturday. In response, USANA's True Health Foundation is donating $50,000 USD to International Relief Teams, a nonprofit international humanitarian organization, to provide immediate relief of food and medical supplies to the victims of this disastrous event.

USANA True Health Foundation

"As soon as we heard the shocking news, our board jumped into action, and immediately put funding in place to help the people of Nepal," said Jim Bramble, board president of the USANA True Health Foundation. "Gratefully, our foundation was already well-equipped to handle the urgency of this situation, thanks to the generous contributions of the employees and distributors of USANA."

The USANA True Health Foundation's mission is to provide the most critical human necessities to those who are suffering or in need. Every dollar donated goes directly to those who need it most, making a significant difference in the lives of people affected by natural disasters around the world.

For more information or to donate to the USANA True Health Foundation, go to www.usanafoundation.org .

About USANA True Health Foundation: The USANA True Health Foundation (NYSE: USNA) is a registered 501(c)(3) nonprofit organization created by Dr. Myron Wentz, USANA's founder, and USANA CEO Dave Wentz, to help expand and enhance USANA's on-going charitable efforts. Its mission is to provide the most critical human necessities to those suffering or in need. USANA True Health Foundation has an active partnership with organizations such as HealthCorps and the Children's Hunger Fund, which share the same vision of making the world a happier and healthier place. Learn more at our website (www.USANAfoundation.org), follow us on Twitter (@USANAfoundation), or like us on Facebook (www.facebook.com/USANAfoundation).

Media Contact: Ashley Collins

Executive Director of PR, Social Media and Communications
(801) 954-7629

media@us.usana.com


To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/50000-donated-to-earthquake-relief-efforts-in-nepal-300074852.html

SOURCE:  #USANA @USANAInc 

#USANA News Release - April 20, 2015

News Release

Two-Time #NBA All-Star Luol Deng Posts Up Health With USANA Health Sciences

SALT LAKE CITY, April 20, 2015 /PRNewswire/ -- USANA Health Sciences is proud to announce its partnership with two-time NBA All-Star and forward for the Miami Heat, Luol Deng. Deng joins more than 700 Olympic and world-class athletes who trust their health to the nutritional company and is the first NBA athlete to join Team USANA.

Two-time NBA All-star Luol Deng of the Miami Heat signs on as USANA Health Sciences Brand Ambassador.

Drafted seventh in the first round of the 2004 NBA draft by the Phoenix Suns, the 6-foot-9 forward was immediately traded to the Chicago Bulls, where he spent the first nine years of his career. Deng was later traded to the Cleveland Cavaliers halfway through the 2013–14 season before signing with the Miami Heat as a free agent last July, where he's averaged 14.3 points, 4.9 rebounds and 2 assists per game.

"Being a veteran, it is very important for me to take care of my body. USANA is a well trusted company that will help me stay in peak shape and continue my success in the league," said the 29-year-old athlete.

NOTABLE HIGHLIGHTS

• Selected as an eastern conference NBA All-Star during the 2011–12 and 2012–13 seasons.
• Selected to the NBA All-Defensive Second Team for the 2011–12 season.
• Represented Great Britain as captain of the National Team and torchbearer in the 2012 London Olympic Games.
• Ended career with the Chicago Bulls as 4th all-time leading scorer, behind Michael Jordan, Scottie Pippen and Bob Love.
• Recipient of the 2006–2007 NBA Sportsmanship Award and NBA's Community Assist Award in April 2007.
• Recipient of the Professional Basketball Writers Association's J. Walter Kennedy Citizenship Award for outstanding service and dedication to the community in 2014.

"It's exciting to see the range of athletes that trust their health and careers to USANA's NSF-tested products continue to grow, and to welcome an accomplished NBA star like Deng to Team USANA," said Dan Macuga, USANA's chief communications officer. "We look forward to cheering him on as he prepares for the playoffs and collaborating with him in the offseason."

*Luol Deng is represented by French/West/Vaughan, which is his public relations, marketing and endorsement agency of record.

**The mentioned athletes are either distributors or dedicated users who have received compensation for their partnership and/or complementary USANA products.

About USANA

Founded in 1992, USANA Health Sciences (NYSE: USNA) is a U.S.-based nutritional company that manufactures high-quality supplements, personal care and energy products in its FDA-registered facility in Salt Lake City. Learn more about USANA by visiting our website http://www.usana.com or the official USANA blog http://whatsupusana.com.

Media Contact: Ashley Collins
Executive Director of PR and Social Media
(801) 954-7629
media(at)us.usana(dot)com

Using #USANA Tag Team Emails to Grow Your Business

- by Pete and Dora Zdanis

  

Network marketing is all about teamwork, and smart teams work together to help each other succeed. One great way to do this is to help each other with “tag team” email messages to your prospects. Here’s how “tag team” emails work:

Let’s say that you have a prospect, John Doe, who has expressed interest in USANA, but is not yet quite ready to sign up, for whatever reason.

While John is still considering USANA, ask if he would be willing to receive information by email from other USANA Associates regarding their USANA experiences.

Assuming John agrees, you then send the following message to your “tag team” members:

“Please send a tag team email to: John Doe, email: john@yippieskippie.com  on my behalf. – Benny Builder”

Each of your tag team members then sends an email along the following lines to John, with a copy to you:

“Dear John,

I understand from my associate, Benny Builder, that you are considering joining our USANA team. I would urge you to look very closely at USANA. My experience with the USANA products and business has been fantastic, etc., etc.

Yours truly, Denny Director”

NOTE: Click Here to see a current copy of the Tag Email we send out on behalf of our team members.

Assuming that there are two or three members of your tag team, your prospect will receive two or three email messages encouraging him to sign up with you in USANA.

John will now be much more likely to sign up since he has heard how great USANA is from a number of people other than you. He can also readily see that he will be part of an outstanding team with great support when he signs up with you, and your team, in USANA.

Some tips and ideas:

Always ask permission from your prospect to have tag team emails sent to them. Never impose on their privacy.

Limit the number of tag emails that a prospect will receive to two or three. Don’t overwhelm or intimidate them.

Choose tag team members from your upline, or from downline who will be upline of the prospect after the prospect signs up.

If you don’t have any upline or downline people to help you with tag emails, ask some crossline people if they would be willing to help you until you get your own team started.

Make an email distribution list of your tag team members so that you can quickly and easily send tag email requests to them.

Prepare a tag email template of your own, and save it on your computer or device. Then, all you need to do is modify your template with the name of the prospect and “forward” it to them when someone asks you to send a tag email on their behalf.

Always follow up with your prospect to confirm that they received the tag team emails, and ask them what they liked best about what they received. Don't assume that your prospect received tag team emails due to spam filters, firewalls, etc.

Start using tag team emails today if you haven’t already.

It will simplify and accelerate your USANA business building efforts.

© 2015 - Total Performance Organization ® - All Rights Reserved

This article may only be copied, shared, distributed or otherwise reproduced in its entirety, including this disclaimer and copyright authorization.

www.petezdanis.com - www.dorazdanis.com 

Indonesia Will Soon Join The #USANA Family

Have you heard? Indonesia is the next stop for USANA. 

This incredibly beautiful and diverse country will be open for business during the fourth quarter of this year. 

What drew us to this tropical oasis? The drive and ambition of the world’s fourth most populous nation, along with one of the top five fastest growing economies in the world. 

As for the pristine beaches, call of adventure, and thousands of islands perfectly situated on the equator—those are just the amazing perks of doing business in Indonesia. 

If you’re ready to make the most of USANA’s entry to the land of a thousand kings, be sure to visit The Hub often for updates and the latest news.

Zinc Deficiency May Alter How the Immune System Responds to Inflammation

At a Glance:

A new study has shown that a zinc deficiency contributes to chronic inflammation by causing improper immune cell activation and dysregulation of a protein that affects inflammation in the cell.

Read more about this research below:

Zinc is an essential mineral in human health required as a cofactor in numerous biological processes including DNA and protein synthesis, cell division, normal growth and development, neurological function and immunity, and wound healing. It is also required for normal taste perception and smell. 

Zinc is naturally available in a wide variety of foods with higher amounts found in protein-rich foods including meat, poultry and seafood. Regular intake is necessary to maintain a steady state because it is not stored. Zinc deficiency most often occurs when intake is inadequate or poorly absorbed, when there are increased losses of zinc from the body, or when the requirement for zinc increases. 

Evidence from NHANES III data show that zinc intakes among older adults might be marginal, increasing the risk of a zinc deficiency. 

Zinc deficiency is thought to contribute to the development of chronic diseases that involve inflammation and often show up in older adults who have a higher risk for zinc deficiency. In a new study published in the journal Molecular Nutrition & Food Research researchers examined how the immune system responds to zinc deficiency resulting in mechanisms that promote inflammation. Using in vitro cell culture and the aging mouse model, researchers found that zinc deficiency can induce an increase in the inflammatory response in cells by causing improper immune cell activation and dysregulation of cytokine IL-6, a protein that affects inflammation in the cell. When comparing zinc levels in both young and older living mice, the older mice with low zinc levels had a corresponding increase in chronic inflammation and decreased IL-6 methylation, an epigenetic mechanism that is used by cells to control gene expression. 

The results of this study provide evidence of a potential link between zinc deficiency and increased risk of chronic inflammation, especially in aging adults.  

Wong CP, Rinaldi NA, Ho E. Zinc deficiency enhanced inflammatory response by increasing immune cell activation and inducing IL6 promoter demethylation. Mol Nutr Food Res. 2015 Feb 5. doi: 10.1002/mnfr.201400761. [Epub ahead of print]

SOURCE: USANA Essentials of Health

ConsumerLab.com Verifies Purity Of @USANAinc's Active Calcium™ And Vitamin D #Supplements

News Release

SALT LAKE CITY, April 8, 2015 /PRNewswire/ -- Third-party verification is the new future for some supplement makers, but it's the way it's always been for USANA Health Sciences (NYSE: USNA). A few companies are just now taking the first step to making sure what's on the label is in the product: however, this has been the standard practice for USANA from the beginning. USANA regularly submits its products for third-party testing.

Case in point, ConsumerLab.com - the leading provider of independent product testing -recently evaluated and tested USANA's Active Calcium™ and Vitamin D supplements for their claimed ingredient, heavy metals and ability to disintegrate. Both have earned ConsumerLab.com's stamp of approval.

"We manufacture the majority of our products in-house at our FDA-registered facility and hold all of our third-party suppliers to the same strict standards to ensure that only the purest ingredients are being used," said Dan Macuga, USANA's chief communication officer. "To continue receiving verification from ConsumerLab.com that what is listed on our labels is found in our products exemplifies USANA's commitment to producing nutritionals that consumers can trust."

This is good news for bone health. USANA's Active Calcium™ and Vitamin D supplements promote calcium absorption, help with development and maintenance of bones and teeth, and support health vitamin D levels.*

"We take quality control, potency testing, and product safety very seriously. We encourage everyone to check all nutritional supplement labels and certifications before purchasing or consuming any nutritional product," said Dr. Brian Dixon (Ph.D.), USANA's executive director of health and science education.

Keeping health and nutritional companies honest about product claims since 1999, ConsumerLab.com has tested more than 3,400 products and freely publishes its testing methods for public review to help consumers and healthcare professionals identify the best quality health and nutrition products on the market.

In addition to working with ConsumerLab.com, USANA has received certifications through Good Manufacturing Practices and NSF International-a public health and safety organization-that assures the nutritional company complies with strict standards for quality and safety. More than 700 elite and Olympic athletes trust their health to USANA's NSF and LGC-tested products.

*These statements have not been evaluated by the Food and Drug Administration. This product is not intended to diagnose, treat, cure, or prevent any disease.

About USANA

Founded in 1992, USANA Health Sciences (NYSE: USNA) is a U.S.-based nutritional company that manufactures high-quality supplements, personal care and energy products in its FDA-registered facility in Salt Lake City. Learn more about USANA by visiting our website http://www.usana.com or the official USANA blog http://whatsupusana.com.

Media Contact: Ashley Collins
Executive Director of PR and Social Media
(801) 954-7629
media(at)us.usana(dot)com

To view the original version on PR Newswire, visit: http://www.prnewswire.com/news-releases/trust-whats-on-the-label---consumerlabcom-verifies-purity-of-usanaincs-active-calcium-and-vitamin-d-supplements-300061344.html 

SOURCE: USANA Health Sciences