UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 2, 2004
OR
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
USANA HEALTH SCIENCES, INC.
(Exact name of registrant as specified in its charter)
Utah |
|
87-0500306 |
(State or other jurisdiction |
|
(I.R.S. Employer |
of incorporation or organization) |
|
Identification No.) |
3838 West Parkway Blvd., Salt Lake City, Utah 84120
(Address of principal executive offices, Zip Code)
(801) 954-7100
(Registrants 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 outstanding of the registrants common stock as of November 5, 2004 was 19,092,228.
USANA HEALTH SCIENCES, INC.
For the Quarterly Period Ended October 2, 2004
INDEX
|
|
|
|
|
|
|
PART I. FINANCIAL INFORMATION |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Stockholders Equity and Comprehensive Income |
|
|
|
|
|
|
|
Managements Discussion and Analysis of Financial Condition and Results of Operations |
|
|
|
||
|
||
|
|
|
|
|
|
|
|
|
|
||
|
||
|
|
|
|
|
2
USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
(in thousands, except per share data)
|
|
January 3, |
|
October 2, |
|
||
|
|
2004 |
|
2004 |
|
||
|
|
|
|
(Unaudited) |
|
||
ASSETS |
|
|
|
|
|
||
Current assets |
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
18,965 |
|
$ |
21,445 |
|
Inventories, net |
|
14,069 |
|
16,195 |
|
||
Prepaid expenses and other current assets |
|
3,294 |
|
3,353 |
|
||
Deferred income taxes |
|
1,921 |
|
2,316 |
|
||
|
|
|
|
|
|
||
Total current assets |
|
38,249 |
|
43,309 |
|
||
|
|
|
|
|
|
||
Property and equipment, net |
|
20,195 |
|
23,689 |
|
||
|
|
|
|
|
|
||
Goodwill |
|
4,267 |
|
5,690 |
|
||
|
|
|
|
|
|
||
Other assets |
|
2,416 |
|
2,597 |
|
||
|
|
$ |
65,127 |
|
$ |
75,285 |
|
LIABILITIES AND STOCKHOLDERS EQUITY |
|
|
|
|
|
||
Current liabilities |
|
|
|
|
|
||
Accounts payable |
|
$ |
5,215 |
|
$ |
8,029 |
|
Other current liabilities |
|
14,704 |
|
18,618 |
|
||
|
|
|
|
|
|
||
Total current liabilities |
|
19,919 |
|
26,647 |
|
||
|
|
|
|
|
|
||
Deferred income taxes |
|
837 |
|
911 |
|
||
|
|
|
|
|
|
||
Stockholders equity |
|
|
|
|
|
||
Common stock, $0.001 par value; authorized 50,000 shares, issued and outstanding 19,470 as of January 3, 2004 and 19,062 as of October 2, 2004 |
|
19 |
|
19 |
|
||
|
|||||||
|
|||||||
Additional paid-in capital |
|
14,187 |
|
11,141 |
|
||
Retained earnings |
|
28,935 |
|
35,193 |
|
||
Accumulated other comprehensive income |
|
1,230 |
|
1,374 |
|
||
|
|
|
|
|
|
||
Total stockholders equity |
|
44,371 |
|
47,727 |
|
||
|
|
$ |
65,127 |
|
$ |
75,285 |
|
The accompanying notes are an integral part of these statements.
3
USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share data)
|
|
Quarter Ended |
|
||||
|
|
(unaudited) |
|
||||
|
|
September
27, |
October
2, |
||||
|
|
||||||
|
|
|
|
|
|
||
Net sales |
|
$ |
52,506 |
|
$ |
68,673 |
|
|
|
|
|
|
|
||
Cost of sales |
|
11,364 |
|
16,732 |
|
||
|
|
|
|
|
|
||
Gross profit |
|
41,142 |
|
51,941 |
|
||
|
|
|
|
|
|
||
Operating expenses: |
|
|
|
|
|
||
Associate incentives |
|
20,332 |
|
26,210 |
|
||
Selling, general and administrative |
|
11,926 |
|
13,141 |
|
||
Research and development |
|
379 |
|
450 |
|
||
|
|
|
|
|
|
||
Total operating expenses |
|
32,637 |
|
39,801 |
|
||
|
|
|
|
|
|
||
Earnings from operations |
|
8,505 |
|
12,140 |
|
||
|
|
|
|
|
|
||
Other income (expense): |
|
|
|
|
|
||
Interest income |
|
42 |
|
56 |
|
||
Other, net |
|
483 |
|
(569 |
) |
||
|
|
|
|
|
|
||
Total other income (expense) |
|
525 |
|
(513 |
) |
||
|
|
|
|
|
|
||
Earnings before income taxes |
|
9,030 |
|
11,627 |
|
||
|
|
|
|
|
|
||
Income taxes |
|
2,974 |
|
3,631 |
|
||
|
|
|
|
|
|
||
Net earnings |
|
$ |
6,056 |
|
$ |
7,996 |
|
|
|
|
|
|
|
||
Earnings per common share |
|
|
|
|
|
||
Basic |
|
$ |
0.32 |
|
$ |
0.42 |
|
Diluted |
|
$ |
0.28 |
|
$ |
0.39 |
|
|
|
|
|
|
|
||
Weighted average common shares outstanding |
|
|
|
|
|
||
Basic |
|
19,057 |
|
19,052 |
|
||
Diluted |
|
21,383 |
|
20,296 |
|
The accompanying notes are an integral part of these statements.
4
USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(in thousands, except per share data)
|
|
Nine Months Ended |
|||||
|
|
(unaudited) |
|||||
|
|
September 27, |
|
October 2, |
|
||
|
|
2003 |
|
2004 |
|
||
|
|
|
|
|
|
||
Net sales |
|
$ |
140,527 |
|
$ |
197,694 |
|
|
|
|
|
|
|
||
Cost of sales |
|
31,001 |
|
47,985 |
|
||
|
|
|
|
|
|
||
Gross profit |
|
109,526 |
|
149,709 |
|
||
|
|
|
|
|
|
||
Operating expenses: |
|
|
|
|
|
||
Associate incentives |
|
55,091 |
|
75,378 |
|
||
Selling, general and administrative |
|
32,072 |
|
40,059 |
|
||
Research and development |
|
1,086 |
|
1,635 |
|
||
|
|
|
|
|
|
||
Total operating expenses |
|
88,249 |
|
117,072 |
|
||
|
|
|
|
|
|
||
Earnings from operations |
|
21,277 |
|
32,637 |
|
||
|
|
|
|
|
|
||
Other income (expense): |
|
|
|
|
|
||
Interest income |
|
83 |
|
142 |
|
||
Interest expense |
|
(48 |
) |
|
|
||
Other, net |
|
296 |
|
(507 |
) |
||
|
|
|
|
|
|
||
Total other income (expense) |
|
331 |
|
(365 |
) |
||
|
|
|
|
|
|
||
Earnings before income taxes |
|
21,608 |
|
32,272 |
|
||
|
|
|
|
|
|
||
Income taxes |
|
7,628 |
|
10,650 |
|
||
|
|
|
|
|
|
||
Net earnings |
|
$ |
13,980 |
|
$ |
21,622 |
|
|
|
|
|
|
|
||
Earnings per common share |
|
|
|
|
|
||
Basic |
|
$ |
0.74 |
|
$ |
1.13 |
|
Diluted |
|
$ |
0.66 |
|
$ |
1.05 |
|
|
|
|
|
|
|
||
Weighted average common shares outstanding |
|
|
|
|
|
||
Basic |
|
18,923 |
|
19,209 |
|
||
Diluted |
|
21,294 |
|
20,557 |
|
The accompanying notes are an integral part of these statements.
5
USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF STOCKHOLDERS EQUITY AND COMPREHENSIVE INCOME
Nine Months Ended September 27, 2003 and October 2, 2004
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
Accumulated |
|
|
|
|||||||
|
|
|
|
|
|
Additional Paid-in Capital |
|
|
|
|
|
|
||||||||
|
|
Common Stock |
|
|
Retained Earnings |
|
|
|
|
|||||||||||
|
|
Shares |
|
Value |
|
|
|
|
Total |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
For the Nine Months Ended September 27, 2003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance at December 28, 2002 |
|
18,273 |
|
$ |
18 |
|
$ |
3,666 |
|
$ |
14,520 |
|
$ |
(111 |
) |
$ |
18,093 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net earnings |
|
|
|
|
|
|
|
13,980 |
|
|
|
13,980 |
|
|||||||
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|
971 |
|
971 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
14,951 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Common stock retired |
|
(472 |
) |
|
|
(1,835 |
) |
(6,402 |
) |
|
|
(8,237 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Common stock issued under stock option plan, including tax benefit of $4,498 |
|
1,246 |
|
1 |
|
7,120 |
|
|
|
|
|
7,121 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance at September 27, 2003 |
|
19,047 |
|
$ |
19 |
|
$ |
8,951 |
|
$ |
22,098 |
|
$ |
860 |
|
$ |
31,928 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
For the Nine Months Ended October 2, 2004 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance at January 3, 2004 |
|
19,470 |
|
$ |
19 |
|
$ |
14,187 |
|
$ |
28,935 |
|
$ |
1,230 |
|
$ |
44,371 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Net earnings |
|
|
|
|
|
|
|
21,622 |
|
|
|
21,622 |
|
|||||||
Foreign currency translation adjustment |
|
|
|
|
|
|
|
|
|
144 |
|
144 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
21,766 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Common stock retired |
|
(760 |
) |
|
|
(6,287 |
) |
(15,364 |
) |
|
|
(21,651 |
) |
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Common stock issued under stock option plan, including tax benefit of $2,287 |
|
352 |
|
|
|
3,241 |
|
|
|
|
|
3,241 |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance at October 2, 2004 |
|
19,062 |
|
$ |
19 |
|
$ |
11,141 |
|
$ |
35,193 |
|
$ |
1,374 |
|
$ |
47,727 |
|
||
The accompanying notes are an integral part of these statements.
6
USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
|
|
Nine Months Ended |
|
||||
|
|
September 27, |
|
October 2, |
|
||
|
|
|
|
||||
Increase (decrease) in cash and cash equivalents |
|
|
|
|
|
||
Cash flows from operating activities |
|
|
|
|
|
||
Net earnings |
|
$ |
13,980 |
|
$ |
21,622 |
|
Adjustments to reconcile net earnings to net cash provided by operating activities |
|
|
|
|
|
||
Depreciation and amortization |
|
2,839 |
|
3,430 |
|
||
Gain on sale of property and equipment |
|
(30 |
) |
(1 |
) |
||
Deferred income taxes |
|
159 |
|
(341 |
) |
||
Allowance for inventory valuation |
|
1,068 |
|
1,173 |
|
||
Changes in operating assets and liabilities: |
|
|
|
|
|
||
Inventories |
|
(3,280 |
) |
(3,741 |
) |
||
Prepaid expenses and other assets |
|
(1,396 |
) |
253 |
|
||
Accounts payable |
|
1,591 |
|
2,809 |
|
||
Other current liabilities |
|
10,738 |
|
6,187 |
|
||
|
|
|
|
|
|
||
Total adjustments |
|
11,689 |
|
9,769 |
|
||
|
|
|
|
|
|
||
Net cash provided by operating activities |
|
25,669 |
|
31,391 |
|
||
|
|
|
|
|
|
||
Cash flows from investing activities |
|
|
|
|
|
||
Acquisitions, net of cash acquired |
|
(5,341 |
) |
(2,140 |
) |
||
Purchases of property and equipment |
|
(2,948 |
) |
(6,174 |
) |
||
Proceeds from the sale of property and equipment |
|
47 |
|
29 |
|
||
|
|
|
|
|
|
||
Net cash used in investing activities |
|
(8,242 |
) |
(8,285 |
) |
||
(Continued)
The accompanying notes are an integral part of these statements.
7
|
|
Nine Months Ended |
|
|||||
|
|
September 27, |
|
October 2, |
|
|||
|
|
|
|
|||||
Cash flows from financing activities |
|
|
|
|
|
|||
Principal payments of long-term debt |
|
(6,000 |
) |
|
|
|||
Proceeds from stock options exercised |
|
2,623 |
|
954 |
|
|||
Retirement of common stock |
|
(8,237 |
) |
(21,651 |
) |
|||
Decrease in line of credit |
|
(2,913 |
) |
|
|
|||
Payments on capital lease obligations |
|
(91 |
) |
|
|
|||
|
|
|
|
|
|
|||
Net cash used in financing activities |
|
(14,618 |
) |
(20,697 |
) |
|||
|
|
|
|
|
|
|||
Effect of exchange rate changes on cash and cash equivalents |
|
840 |
|
71 |
|
|||
|
|
|
|
|
|
|||
Net increase in cash and cash equivalents |
|
3,649 |
|
2,480 |
|
|||
|
|
|
|
|
|
|||
Cash and cash equivalents, beginning of period |
|
6,686 |
|
18,965 |
|
|||
|
|
|
|
|
|
|||
Cash and cash equivalents, end of period |
|
$ |
10,335 |
|
$ |
21,445 |
|
|
|
|
|
|
|
|
|||
Supplemental disclosures of cash flow information |
|
|
|
|
|
|||
Cash paid during the period for: |
|
|
|
|
|
|||
Interest |
|
$ |
65 |
|
$ |
|
|
|
Income taxes |
|
1,644 |
|
6,280 |
|
|||
|
|
|
|
|
|
|||
Non-cash activities |
|
|
|
|
|
|||
In July 2003, the Company acquired Wasatch Product Development, Inc. for $5,016 in cash. In conjunction with the acquisition, certain liabilities were assumed, including $200 in income tax liabilities of the selling shareholders and $125 for professional fees directly associated with the acquisition. |
||||||||
|
|
|
|
|
|
|||
In February 2004, the Company acquired FMG Productions, LLC for $2,060 in cash. In conjunction with the acquisition, liabilities totaling $80 were assumed for professional fees directly associated with the acquisition. |
||||||||
The accompanying notes are an integral part of these statements.
8
USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(in thousands, except per share data)
(unaudited)
Basis of Presentation
The unaudited interim consolidated financial information of USANA Health Sciences, Inc. and Subsidiaries (the Company or USANA) has been prepared in accordance with Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. In the opinion of management, the accompanying interim consolidated financial information contains all adjustments, consisting of normal recurring adjustments, necessary to present fairly the Companys financial position as of October 2, 2004, and results of operations for the quarters and nine months ended September 27, 2003 and October 2, 2004. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Companys Annual Report on Form 10-K for the year ended January 3, 2004. The results of operations for the quarter and nine months ended October 2, 2004 may not be indicative of the results that may be expected for the fiscal year ending January 1, 2005.
NOTE A STOCK-BASED COMPENSATION
The Company has applied the disclosure provisions of Statement of Financial Accounting Standards No. 148, Accounting for Stock-Based Compensation Transition and Disclosure An Amendment of FASB Statement No. 123, for the quarters and nine month periods ended September 27, 2003 and October 2, 2004. Issued in December 2002, SFAS No. 148 amends SFAS No. 123 Accounting for Stock-Based Compensation, to provide alternative methods of transition for a voluntary change to the fair value based method of accounting for stock-based compensation. In addition, this Statement amends the disclosure requirements of SFAS No. 123 to require prominent disclosures in both annual and interim financial statements about the method of accounting for stock-based employee compensation and the effect of the method used on reported results. As permitted by SFAS No. 148, the Company continues to account for stock options using the intrinsic value method under APB Opinion No. 25, under which no compensation expense has been recognized. The following table illustrates the effects on net earnings and earnings per share as if the Company had applied the fair value recognition provisions of SFAS No. 123, as amended by SFAS No. 148, to stock-based compensation:
|
|
|
|
Quarter Ended |
|
Nine Months Ended |
|
||||||||||||
|
|
|
|
September 27, |
|
October 2, |
|
September 27, |
|
October 2, |
|
||||||||
|
|
|
|
|
|
|
|
||||||||||||
Net earnings |
|
As reported |
|
$ |
6,056 |
|
$ |
7,996 |
|
$ |
13,980 |
|
$ |
21,622 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Pro forma |
|
$ |
5,860 |
|
$ |
7,516 |
|
$ |
13,556 |
|
$ |
20,438 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share - basic |
|
As reported |
|
$ |
0.32 |
|
$ |
0.42 |
|
$ |
0.74 |
|
$ |
1.13 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Pro forma |
|
$ |
0.31 |
|
$ |
0.39 |
|
$ |
0.72 |
|
$ |
1.06 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share - diluted |
|
As reported |
|
$ |
0.28 |
|
$ |
0.39 |
|
$ |
0.66 |
|
$ |
1.05 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Pro forma |
|
$ |
0.27 |
|
$ |
0.37 |
|
$ |
0.64 |
|
$ |
0.99 |
|
||||
9
Weighted average assumptions used to determine the Black-Scholes fair value for options granted during the periods indicated:
|
|
Quarter Ended |
|
Nine Months Ended |
|
||||||||
|
|
September 27, 2003 |
|
October 2, |
|
September 27, 2003 |
|
October 2, |
|
||||
|
|
|
|
|
|
||||||||
Expected volatility |
|
77 |
% |
75 |
% |
77 |
% |
75 |
% |
||||
Risk free interest rate |
|
3.60 |
% |
3.57 |
% |
3.67 |
% |
3.93 |
% |
||||
Expected life |
|
10.0 yrs. |
|
5.6 yrs. |
|
10.0 yrs. |
|
9.1 yrs. |
|
||||
Expected dividend yield |
|
0 |
% |
0 |
% |
0 |
% |
0 |
% |
||||
Weighted average fair value of options granted* |
|
$ |
28.77 |
|
$ |
27.69 |
|
$ |
25.04 |
|
$ |
29.30 |
|
* |
All options during the periods indicated have been granted at the market value on the date of grant, which is established by averaging the closing price of the Companys common stock over the five trading days preceding the date of grant. |
Option pricing models require the input of highly subjective assumptions including the expected stock price volatility. Additionally, the Companys employee stock options have characteristics significantly different from those of traded options, including long vesting schedules and changes in the subjective input assumptions that can materially affect the fair value estimate. Management believes the best assumptions available were used to value the options and that the resulting option values were reasonable as of the dates the options were granted.
Inventories consist of the following:
|
|
January 3, |
|
October 2, |
|
||
|
|
|
|
||||
Raw materials |
|
$ |
5,498 |
|
$ |
8,432 |
|
Work in progress |
|
2,497 |
|
2,654 |
|
||
Finished goods |
|
7,563 |
|
6,697 |
|
||
|
|
15,558 |
|
17,783 |
|
||
|
|
|
|
|
|
||
Less allowance for inventory valuation |
|
1,489 |
|
1,588 |
|
||
|
|
$ |
14,069 |
|
$ |
16,195 |
|
Prepaid expenses and other current assets consist of the following:
|
|
January 3, |
|
October 2, |
|
||
|
|
|
|
||||
Prepaid expenses |
|
$ |
1,376 |
|
$ |
697 |
|
Miscellaneous receivables, net |
|
1,449 |
|
1,905 |
|
||
Other current assets |
|
469 |
|
751 |
|
||
|
|
$ |
3,294 |
|
$ |
3,353 |
|
10
Cost of property and equipment and their estimated useful lives is as follows:
|
|
|
|
January
3, |
|
October
2, |
|
||||
|
|
Years |
|
|
|
||||||
|
|
|
|
|
|
|
|
||||
Buildings |
|
40 |
|
$ |
8,120 |
|
$ |
9,381 |
|
||
Laboratory and production equipment |
|
5-7 |
|
6,879 |
|
8,063 |
|
||||
Sound and video library |
|
5 |
|
|
|
600 |
|
||||
Computer equipment and software |
|
3-5 |
|
18,702 |
|
22,177 |
|
||||
Furniture and fixtures |
|
3-5 |
|
2,227 |
|
2,492 |
|
||||
Automobiles |
|
3-5 |
|
180 |
|
201 |
|
||||
Leasehold improvements |
|
3-5 |
|
1,626 |
|
2,374 |
|
||||
Land improvements |
|
15 |
|
931 |
|
931 |
|
||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
38,665 |
|
46,219 |
|
||||
|
|
|
|
|
|
|
|
||||
Less accumulated depreciation and amortization |
|
|
|
21,740 |
|
24,906 |
|
||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
16,925 |
|
21,313 |
|
||||
|
|
|
|
|
|
|
|
||||
Land |
|
|
|
1,773 |
|
1,899 |
|
||||
|
|
|
|
|
|
|
|
||||
Deposits and projects in process |
|
|
|
1,497 |
|
477 |
|
||||
|
|
|
|
|
|
|
|
||||
|
|
|
|
$ |
20,195 |
|
$ |
23,689 |
|
||
NOTE E OTHER CURRENT LIABILITIES
Other current liabilities consist of the following:
|
|
January 3, |
|
October 2, |
|
|||
|
|
|
|
|||||
|
|
|
|
|
|
|||
Associate incentives |
|
$ |
2,692 |
|
$ |
2,477 |
|
|
Accrued employee compensation |
|
4,186 |
|
3,729 |
|
|||
Income taxes |
|
1,255 |
|
4,041 |
|
|||
Sales taxes |
|
1,667 |
|
2,032 |
|
|||
Associate promotions |
|
29 |
|
346 |
|
|||
Deferred revenue |
|
1,404 |
|
2,020 |
|
|||
Provision for returns and allowances |
|
998 |
|
1,125 |
|
|||
Accrued loss on foreign currency forwards |
|
337 |
|
412 |
|
|||
All other |
|
2,136 |
|
2,436 |
|
|||
|
|
|
|
|
|
|||
|
|
$ |
14,704 |
|
$ |
18,618 |
|
|
11
NOTE F COMMON STOCK AND EARNINGS PER SHARE
Basic earnings per share are based on the weighted average number of common shares outstanding for each period. Weighted average shares retired have been included as a reduction in the calculation of weighted average common shares outstanding for basic earnings per share. Diluted earnings per common share are based on shares outstanding (computed under basic EPS) and potentially dilutive shares using the treasury stock method. Shares included in diluted earnings per share calculations include stock options granted that are in the money but have not yet been exercised.
|
|
For the Quarter Ended |
|
||||
|
|
September 27, |
|
October 2, |
|
||
|
|
|
|
||||
Earnings available to common shareholders |
|
$ |
6,056 |
|
$ |
7,996 |
|
|
|
|
|
|
|
||
Basic EPS |
|
|
|
|
|
||
Shares |
|
|
|
|
|
||
Common shares outstanding entire period |
|
18,273 |
|
19,470 |
|
||
Weighted average common shares: |
|
|
|
|
|
||
Issued during period |
|
1,104 |
|
273 |
|
||
Canceled during period |
|
(320 |
) |
(691 |
) |
||
|
|
|
|
|
|
||
Weighted average common shares outstanding during period |
|
19,057 |
|
19,052 |
|
||
|
|
|
|
|
|
||
Earnings per common share - basic |
|
$ |
0.32 |
|
$ |
0.42 |
|
|
|
|
|
|
|
||
Diluted EPS |
|
|
|
|
|
||
Shares |
|
|
|
|
|
||
Weighted average shares outstanding during period - basic |
|
19,057 |
|
19,052 |
|
||
Dilutive effect of stock options |
|
2,326 |
|
1,244 |
|
||
Weighted average shares outstanding during period - diluted |
|
21,383 |
|
20,296 |
|
||
|
|
|
|
|
|
||
Earnings per common share - diluted |
|
$ |
0.28 |
|
$ |
0.39 |
|
Options to purchase 190 shares of stock were not included in the computation of EPS for the quarter ended October 2, 2004 due to their exercise price being greater than the average market price of the shares. For the quarter ended September 27, 2003, all options were included in the computation of EPS.
|
|
For the Nine Months Ended |
|
|||||
|
|
September 27, |
|
October 2, |
|
|||
|
|
|
|
|||||
Earnings available to common shareholders |
|
$ |
13,980 |
|
$ |
21,622 |
|
|
|
|
|
|
|
|
|||
Basic EPS |
|
|
|
|
|
|||
Shares |
|
|
|
|
|
|||
Common shares outstanding entire period |
|
18,273 |
|
19,470 |
|
|||
Weighted average common shares: |
|
|
|
|
|
|||
Issued during period |
|
773 |
|
160 |
|
|||
Canceled during period |
|
(123 |
) |
(421 |
) |
|||
|
|
|
|
|
|
|||
Weighted average common shares outstanding during period |
|
18,923 |
|
19,209 |
|
|||
|
|
|
|
|
|
|||
Earnings per common share - basic |
|
$ |
0.74 |
|
$ |
1.13 |
|
|
12
|
|
For the Nine Months Ended |
|
||||
|
|
September 27, |
|
October 2, |
|
||
|
|
|
|
||||
Diluted EPS |
|
|
|
|
|
||
Shares |
|
|
|
|
|
||
Weighted average shares outstanding during period - basic |
|
18,923 |
|
19,209 |
|
||
Dilutive effect of stock options |
|
2,371 |
|
1,348 |
|
||
Weighted average shares outstanding during period - diluted |
|
21,294 |
|
20,557 |
|
||
Earnings per common share - diluted |
|
$ |
0.66 |
|
$ |
1.05 |
|
Options to purchase 193 shares of stock were not included in the computation of EPS for the nine months ended October 2, 2004 due to their exercise price being greater than the average market price of the shares. For the nine months ended September 27, 2003, all options to purchase shares of stock were included in the computation of EPS.
During the nine months ended October 2, 2004, the Company expended $21,651 to purchase 760 shares under the Companys Share Repurchase Plan. The purchase of shares under this plan reduces the number of shares issued and outstanding.
The Companys operations are distinguished by markets served and method of distribution employed and are classified into two reportable business segments: Direct Selling and Contract Manufacturing. These operating segments are evaluated regularly by management in determining the allocation of resources and in assessing the performance of the Company. Management evaluates performance based on net sales and the amount of operating income or loss. Segment profit or loss is based on profit or loss from operations before income taxes. Interest income and expense, as well as income taxes, are not included in the Companys determination of segment profit or loss in assessing the performance of a segment.
Direct Selling
The Direct Selling segment comprises the Companys principal line of business: developing, manufacturing, and distributing nutritional and personal care products. Products are distributed through a network marketing system using independent distributors referred to as Associates. Products are also sold directly to Preferred Customers who purchase products for personal use and are not permitted to resell or distribute the products. Sales to Associates and Preferred Customers are reported for seven operating geographic regions including North America, Australia-New Zealand, Hong Kong, Japan, Taiwan, South Korea, and Singapore.
Contract Manufacturing
Operating activities for the Contract Manufacturing segment include the manufacture of premium personal care products, produced under the brand name of its customers, including manufacturing and packaging for the Companys Sensé product line of skin and personal care products. These operations are located in Draper, Utah and sales are made to a limited number of customers.
Sales made by the Contract Manufacturing segment to one customer accounted for 82%, or approximately $2,316, of segment revenues for the quarter ended October 2, 2004. No other individual customer accounted for 10% or more of segment net revenues.
13
Financial information summarized by operating segment and geographic region for the quarters ended September 27, 2003 and October 2, 2004 is listed below:
|
|
Net Sales |
|
Intersegment |
|
Earnings |
|
|||
Quarter ended September 27, 2003: |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
Direct Selling |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
North America (1) |
|
$ |
34,214 |
|
$ |
13,313 |
|
$ |
13,360 |
|
Australia - New Zealand |
|
8,023 |
|
762 |
|
(989 |
) |
|||
Hong Kong |
|
2,285 |
|
|
|
349 |
|
|||
Japan (2) |
|
1,750 |
|
|
|
(515 |
) |
|||
Taiwan |
|
3,507 |
|
|
|
77 |
|
|||
South Korea |
|
2,071 |
|
|
|
(430 |
) |
|||
|
|
|
|
|
|
|
|
|||
Segment Total |
|
51,850 |
|
14,075 |
|
11,852 |
|
|||
|
|
|
|
|
|
|
|
|||
Contract Manufacturing |
|
656 |
|
|
|
25 |
|
|||
|
|
|
|
|
|
|
|
|||
Reportable Segments Total |
|
52,506 |
|
14,075 |
|
11,877 |
|
|||
|
|
|
|
|
|
|
|
|||
Unallocated and Other (3) |
|
|
|
(14,075 |
) |
(2,847 |
) |
|||
|
|
|
|
|
|
|
|
|||
Consolidated Total |
|
$ |
52,506 |
|
$ |
|
|
$ |
9,030 |
|
|
|
Net Sales |
|
Intersegment |
|
Earnings |
|
|||
Quarter ended October 2, 2004: |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
Direct Selling |
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|||
North America (1) |
|
$ |
43,648 |
|
$ |
11,416 |
|
$ |
11,440 |
|
Australia - New Zealand |
|
9,056 |
|
911 |
|
642 |
|
|||
Hong Kong |
|
2,837 |
|
|
|
(173 |
) |
|||
Japan (2) |
|
2,356 |
|
|
|
(233 |
) |
|||
Taiwan |
|
3,903 |
|
|
|
6 |
|
|||
South Korea |
|
1,366 |
|
|
|
(276 |
) |
|||
Singapore |
|
2,678 |
|
|
|
192 |
|
|||
|
|
|
|
|
|
|
|
|||
Segment Total |
|
65,844 |
|
12,327 |
|
11,598 |
|
|||
|
|
|
|
|
|
|
|
|||
Contract Manufacturing |
|
2,829 |
|
522 |
|
4 |
|
|||
|
|
|
|
|
|
|
|
|||
Reportable Segments Total |
|
68,673 |
|
12,849 |
|
11,602 |
|
|||
|
|
|
|
|
|
|
|
|||
Unallocated and Other (3) |
|
|
|
(12,849 |
) |
25 |
|
|||
|
|
|
|
|
|
|
|
|||
Consolidated Total |
|
$ |
68,673 |
|
$ |
|
|
$ |
11,627 |
|
14
Financial information summarized by operating segment and geographic region for the nine months ended September 27, 2003 and October 2, 2004 is listed below:
|
|
Net Sales |
|
Intersegment |
|
Earnings |
|
Long-lived |
|
Total |
|
|||||
Nine months ended September 27, 2003: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Direct Selling |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
North America (1) |
|
$ |
97,068 |
|
$ |
26,588 |
|
$ |
25,513 |
|
$ |
29,079 |
|
$ |
42,417 |
|
Australia - New Zealand |
|
20,430 |
|
1,675 |
|
521 |
|
291 |
|
6,412 |
|
|||||
Hong Kong |
|
6,280 |
|
|
|
921 |
|
187 |
|
1,915 |
|
|||||
Japan (2) |
|
4,433 |
|
|
|
(2,034 |
) |
1,179 |
|
3,502 |
|
|||||
Taiwan |
|
9,589 |
|
|
|
1,563 |
|
487 |
|
3,432 |
|
|||||
South Korea |
|
2,071 |
|
|
|
(430 |
) |
895 |
|
3,545 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Segment Total |
|
139,871 |
|
28,263 |
|
26,054 |
|
32,118 |
|
61,223 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Contract Manufacturing |
|
656 |
|
|
|
25 |
|
5,262 |
|
6,461 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reportable Segments Total |
|
140,527 |
|
28,263 |
|
26,079 |
|
37,380 |
|
67,684 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Unallocated and Other (3) |
|
|
|
(28,263 |
) |
(4,471 |
) |
(11,187 |
) |
(14,571 |
) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Consolidated Total |
|
$ |
140,527 |
|
$ |
|
|
$ |
21,608 |
|
$ |
26,193 |
|
$ |
53,113 |
|
|
|
Net Sales |
|
Intersegment |
|
Earnings |
|
Long-lived |
|
Total |
|
|||||
Nine months ended October 2, 2004: |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Direct Selling |
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
North America (1) |
|
$ |
126,349 |
|
$ |
32,337 |
|
$ |
33,458 |
|
$ |
37,426 |
|
$ |
65,600 |
|
Australia - New Zealand |
|
25,803 |
|
2,495 |
|
348 |
|
207 |
|
4,173 |
|
|||||
Hong Kong |
|
8,044 |
|
|
|
312 |
|
201 |
|
2,293 |
|
|||||
Japan (2) |
|
6,748 |
|
|
|
(1,298 |
) |
970 |
|
2,376 |
|
|||||
Taiwan |
|
11,530 |
|
|
|
(556 |
) |
314 |
|
2,523 |
|
|||||
South Korea |
|
4,440 |
|
|
|
(986 |
) |
789 |
|
1,881 |
|
|||||
Singapore |
|
7,297 |
|
|
|
652 |
|
288 |
|
2,307 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Segment Total |
|
190,211 |
|
34,832 |
|
31,930 |
|
40,195 |
|
81,153 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Contract Manufacturing |
|
7,483 |
|
1,202 |
|
(120 |
) |
5,988 |
|
10,891 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Reportable Segments Total |
|
197,694 |
|
36,034 |
|
31,810 |
|
46,183 |
|
92,044 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Unallocated and Other (3) |
|
|
|
(36,034 |
) |
462 |
|
(14,207 |
) |
(16,759 |
) |
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Consolidated Total |
|
$ |
197,694 |
|
$ |
|
|
$ |
32,272 |
|
$ |
31,976 |
|
$ |
75,285 |
|
(1) |
|
Includes
results from the FMG subsidiary acquired in February 2004 and operations in
Mexico initiated in |
|
|
|
(2) |
|
Includes
results from local operations in Japan. Direct U.S. export sales to Japan are
included in the North |
|
|
|
(3) |
|
Unallocated and Other includes certain corporate items and eliminations that are not allocated to the operating segments. |
15
Item 2. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of USANAs financial condition and results of operations should be read in conjunction with the Unaudited Consolidated Financial Statements and Notes thereto contained in this quarterly report.
General
USANA Health Sciences, Inc. develops and manufactures high-quality nutritional and personal care products. We market all of our products on the basis of high levels of bioavailability, safety, and quality. We distribute our products through a network marketing system using independent distributors whom we refer to as Associates. As of October 2, 2004, we had approximately 111,000 active Associates in the United States, Canada, Australia, New Zealand, Hong Kong, Japan, Taiwan, South Korea, Singapore, Mexico, and the United Kingdom. We also sell products directly to Preferred Customers who purchase product for personal use and are not permitted to resell or distribute the products. As of October 2, 2004, we had approximately 60,000 active Preferred Customers worldwide. Sales to Preferred Customers accounted for approximately 14% of net sales for the Direct Selling segment during the third quarter of 2004. For purposes of this report, we only count as active customers those Associates and Preferred Customers who have purchased product from USANA at any time during the most recent three-month period.
The fiscal year end of USANA is the Saturday closest to December 31 of each year. Fiscal year 2004 will end on January 1, 2005 and is a 52-week year. Fiscal year 2003 ended on January 3, 2004 and was a 53-week year.
As discussed more fully in Note G Segment Information, beginning on page 13 to the consolidated financial statements, we have two reportable segments: Direct Selling and Contract Manufacturing. The Direct Selling segment constitutes our principal line of business: developing, manufacturing, and distributing nutritional and personal care products through a network marketing system. The Contract Manufacturing segment includes the manufacture of premium personal care products, produced under the brand name of its customers, including manufacturing and packaging for our Sensé product line of skin and personal care products.
Our primary product lines within the Direct Selling segment consist of USANAâ Nutritionals and Sensé beautiful scienceâ (Sensé). The USANAâ Nutritionals product line is further categorized into three separate classifications: Essentials, Optimizers, and Macro Optimizers.
USANAâ Nutritionals.
The Essentials include core vitamin and mineral supplements that provide a foundation of advanced nutrition for every age group. To help meet the essential nutrient needs of children and teens during the years of development, when good nutrition is most important, USANA offers: UsanimalsÔ, a formulation of vitamins, minerals, and antioxidants, in an easy-to-take chewable tablet for children 13 months to 12 years old, and Body RoxÔ, a nutritional supplement containing 31 essential vitamins, minerals, antioxidants, and cofactors for adolescents 12 to 18 years old. The USANAâ Essentials product for adults is a combination of two products: Mega Antioxidant, a balanced, high-potency blend of 30 vitamins, antioxidants, and other important nutrients to support cellular metabolism and to counteract free-radical damage and Chelated Mineral, a complete spectrum of essential minerals, in balanced, highly bioavailable forms. The USANAâ Essentials are also provided in a convenient pillow pack format, HealthPak 100Ô.
Optimizers are more targeted supplements designed to meet individual health and nutritional needs. Products in this category include Proflavanolâ,Poly Câ, Procosaâ II, CoQuinoneâ 30, BiOmega-3Ô, E-PrimeÔ, Active CalciumÔ, PhytoEstrinÔ, Palmetto PlusÔ, Ginkgo-PSÔ, Garlic ECÔ, Visionexâ, and OptOmegaâ.
The Macro Optimizers include healthy, low-glycemic convenience foods and other related products, including powdered drink mixes and nutrition bars. NutrimealÔ, Fibergyâ, and SoyaMaxÔ drink mixes, and Nutrition and Fibergy Bars are included in this product category.
16
Sensé - beautiful scienceâ
The Sensé product line includes premium, science-based personal care products that support healthy skin and hair by providing advanced topical nourishment, moisturization and protection. At our Annual International Convention held in September 2004, we announced the re-launch of the Sensé product line, now formulated with our patent-pending, self-preserving technology. This new technology uses a unique blend of botanicals, antioxidants, and active ingredients to keep products fresh, without adding parabens, the most common preservative used in cosmetics and skin care products. The Sensé product line will include all of the same products but will now be formulated with the new patent-pending technology. These products specifically include Perfecting Essence, Gentle Daily Cleanser, Hydrating Toner, Daytime Protective Emulsion SPF 15, Eye Nourisher, Night Renewal (Replenishing Crème), Serum Intensive (Skin Revival Complex), Rice Bran Polisher, Nutritious Crème Masque, Revitalizing Shampoo, Nourishing Conditioner, Firming Body Nourisher, Energizing Shower Gel, and Intensive Hand Therapy.
All Other
In addition to our principal product lines, we have developed and sell to Associates materials and online tools designed to assist them in building their business and selling products. These resource materials or sales aids include product brochures and business forms designed by us and printed by outside publishers. We periodically contract with authors and publishers to produce or provide books, tapes, and other items dealing with health topics and personal motivation, which are made available to Associates. We also write and develop our own materials for audio and videotapes, which are produced by FMG (our wholly owned subsidiary) and third parties. New Associates are required to purchase a starter kit containing USANA training materials that assist the Associates in starting and growing their business. Associates do not earn commissions on the sale of sales aids or starter kits.
The following table summarizes the approximate percentage of total product revenue for the Direct Selling segment contributed by major product line for the nine months ended as of the dates indicated:
|
|
Sales By Product Line * |
|
|||
|
|
|
||||
|
|
September 27, |
|
October 2, 2004 |
|
|
Product Line |
|
|
|
|||
USANA® Nutritionals |
|
|
|
|
|
|
Essentials ** |
|
39 |
% |
39 |
% |
|
Optimizers |
|
34 |
% |
34 |
% |
|
Macro Optimizers |
|
8 |
% |
10 |
% |
|
Sensé beautiful science® |
|
14 |
% |
13 |
% |
|
All Other |
|
5 |
% |
4 |
% |
|
* Product sales previously categorized as Combination Packs have been allocated to their respective product lines based on the weighted average price of the product components that comprise each pack.
** The Essentials category under the USANAâ Nutritionals product line includes USANAâ Essentials, HealthPak 100Ô, Body RoxÔ, and UsanimalsÔ.
The following highlights sales data for our top-selling products as a percentage of Direct Selling segment product sales for the nine months ended October 2, 2004.
USANAâ Essentials |
|
24 |
% |
HealthPak 100Ô |
|
11 |
% |
Proflavanolâ |
|
10 |
% |
17
West Coast Shipping Port Congestion. The financial press is reporting congestion at West Coast ports caused by increasing cargo volumes, a lack of capacity on the railroads, and a shortage of manpower. We have particularly felt the effects in our container shipments to Australia. The near-term solution has required additional use of airfreight to meet demand. Between now and February 2005, when congestion is expected to be relieved, we anticipate an additional two weeks of ocean transit time, thus potentially adding to required inventories associated with products in transit or additional cost for airfreight depending on evaluation of cost tradeoffs. Although we have rate agreements in place for international shipment, the steamship lines will begin adding $200 per 20 foot container and $400 per 40 foot container effective November 15, 2004. This additional fee applies to both imports and exports via Los Angeles/Long Beach ports. Our freight forwarders will continue to exercise flexibility in the selection of ports and carriers to provide the best service.
Quarters Ended September 27, 2003 and October 2, 2004
Net Sales. Net sales increased 30.8% to $68.7 million for the quarter ended October 2, 2004, an increase of $16.2 million from $52.5 million for the comparable quarter in 2003. The increase was comprised of $14.0 million and $2.2 million contributed by our Direct Selling and Contract Manufacturing segments, respectively.
The following table summarizes the growth (decline) in net sales by segment and geographic region for the quarters ended September 27, 2003 and October 2, 2004.
|
|
Net Sales By Segment and Region |
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
Change from Prior Year |
|
Percent Change |
|
||||||
Segment / Region |
|
September 27, 2003 |
|
October 2, 2004 |
|
|
|
||||||||||||
Direct Selling |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
United States |
|
$ |
23,444 |
|
44.7 |
% |
$ |
28,827 |
|
42.0 |
% |
$ |
5,383 |
|
23.0 |
% |
|||
Canada |
|
10,770 |
|
20.5 |
% |
12,553 |
|
18.3 |
% |
1,783 |
|
16.6 |
% |
||||||
Australia-New Zealand |
|
8,023 |
|
15.3 |
% |
9,056 |
|
13.2 |
% |
1,033 |
|
12.9 |
% |
||||||
Hong Kong |
|
2,285 |
|
4.4 |
% |
2,837 |
|
4.1 |
% |
552 |
|
24.2 |
% |
||||||
Japan |
|
1,750 |
|
3.3 |
% |
2,356 |
|
3.4 |
% |
606 |
|
34.6 |
% |
||||||
Taiwan |
|
3,507 |
|
6.7 |
% |
3,903 |
|
5.7 |
% |
396 |
|
11.3 |
% |
||||||
South Korea |
|
2,071 |
|
3.9 |
% |
1,366 |
|
2.0 |
% |
(705 |
) |
(34.0% |
) |
||||||
Singapore |
|
|
|
0.0 |
% |
2,678 |
|
3.9 |
% |
2,678 |
|
N/A |
|
||||||
Mexico |
|
|
|
0.0 |
% |
2,268 |
|
3.3 |
% |
2,268 |
|
N/A |
|
||||||
Segment Total |
|
51,850 |
|
98.8 |
% |
65,844 |
|
95.9 |
% |
13,994 |
|
27.0 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Contract Manufacturing |
|
656 |
|
1.2 |
% |
2,829 |
|
4.1 |
% |
2,173 |
|
331.3 |
% |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|