Exhibit 99.1 USANA Reports Record First Quarter Sales SALT LAKE CITY--(BUSINESS WIRE)--April 20, 2004--USANA Health Sciences Inc. -- Net Sales up 51% -- Net Earnings up 74% -- Company Raises Guidance for 2004 USANA Health Sciences Inc. (NASDAQ: USNA) today announced its final financial results for the first quarter of 2004 ended April 3, 2004. For the seventh consecutive quarter, the company reported record sales. During the first quarter of 2004, USANA achieved net sales of $61.8 million, up 51% from the $40.9 million in net sales reported in the first quarter of 2003. On a constant currency basis, first quarter net sales were up 42% compared to the prior year. The total number of active Associates in the first quarter was 96,000, up 37% from 70,000 reported in the first quarter of 2003. Net earnings increased 74% to $6.2 million in the first quarter of 2004 from $3.6 million in the first quarter of 2003. Earnings per share increased for the first quarter to $0.30 per share, compared with $0.17 per share reported during the first quarter of 2003. Commenting on the first quarter results, Dave Wentz, USANA's president, said, "Our growing Associate base continues to be the key driver of our increasing sales. We have continued to implement programs to attract and retain Associates, and, as a result, our active Associate base this quarter was up 37% compared with last year. During the first quarter, the North American market, which is our largest market, was particularly strong and allowed us to exceed our original revenue forecasts. "We are also encouraged by the early indicators and initial results that we have achieved in Mexico. Mexico is the fourth largest market for direct selling in the world and will be the focus of our new market development for 2004. Our efforts for the second quarter and remainder of 2004 will remain dedicated to driving top-line growth through ongoing efforts to enhance and build Associate leadership in each of our markets," concluded Wentz. Gilbert A. Fuller, Chief Financial Officer, noted, "Sales in the first quarter were higher than earlier forecasts due to stronger than anticipated sales in North America, as well as in Singapore, and increased sales from our Wasatch operation. While sales were higher than expected, our earnings were impacted by a three-week delay of selling products in Mexico, the costs associated with registering our products in Mexico and higher than anticipated costs associated with integrating the Wasatch operation. We do not believe that the unanticipated Mexico-related costs will recur as 2004 progresses. The construction efforts at our Wasatch facility are nearly completed and we expect to see margin improvements as we continue in 2004. We also anticipate that we will have our Sense product line fully integrated into Wasatch before year end. "For the second quarter, we expect sales to be in excess of $65 million, with earnings per share between $0.32 and $0.34. Based on the better than expected first quarter sales, we have increased our revenue guidance for the remainder of 2004. We now expect sales for the full year 2004 to be in the range of $255-$260 million, with earnings per share at the higher end of our previously forecasted range of $1.35 and $1.40." USANA executives will hold a conference call and webcast to discuss this announcement with investors on April 21, 2004 at 9 a.m. EDT. Investors may listen to the call by accessing USANA's Web site at http://www.usanahealthsciences.com and by clicking on the "Investors" icon. About USANA USANA develops and manufactures high-quality nutritionals, personal care, and weight management products that are sold directly to Preferred Customers and Associates throughout the United States, Canada, Australia, New Zealand, Hong Kong, Japan, Taiwan, South Korea, Singapore, Mexico and the United Kingdom. More information on USANA can be found at http://www.usanahealthsciences.com. Non-GAAP Information This press release also includes the following non-GAAP information that the company believes to be material to an understanding of its operating results: (1) the impact of foreign currency translation on net sales, and (2) customer count data. 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. Actual results could differ materially from those projected in the forward-looking statements, which involve a number of risks and uncertainties, including reliance upon the company's independent Associate network, government regulation of products, manufacturing and marketing, and risks associated with international expansion. Forward-looking statements in this press release include the statements: (1) "We do not believe that the unanticipated Mexico-related costs will recur as 2004 progresses." (2) "... we expect to see margin improvements as we continue in 2004." (3) "We also anticipate that we will have our Sense product line fully integrated into Wasatch before year end." (4) "For the second quarter, we expect sales to be in excess of $65 million, with earnings per share between $0.32 and $0.34." (5) "We now expect sales for the full year 2004 to be in the range of $255-$260 million, with earnings per share at the higher end of our previously forecasted range of $1.35 and $1.40." The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in USANA's most recent filings with the Securities and Exchange Commission on Form 10-K. USANA Health Sciences, Inc. Consolidated Statements of Earnings (In thousands, except per share data) Quarter Ended ------------------------------- 29-Mar-03 3-Apr-04 --------------- --------------- (Unaudited) (Unaudited) Net sales $40,864 $61,775 Cost of sales 9,220 15,058 --------------- --------------- Gross profit 31,644 46,717 Operating expenses Associate incentives 16,097 23,612 Selling, general and administrative 9,572 13,262 Research and development 334 578 --------------- --------------- Earnings from operations 5,641 9,265 Other income (expense) 34 149 --------------- --------------- Earnings before income taxes 5,675 9,414 Income taxes 2,100 3,201 --------------- --------------- NET EARNINGS $3,575 $6,213 =============== =============== Earnings per share -- diluted $0.17 $0.30 =============== =============== Weighted average shares outstanding -- diluted 21,048 20,853 =============== =============== USANA Health Sciences, Inc. Consolidated Balance Sheets (in thousands) As of As of 3-Jan-04 3-Apr-04 ----------------------------- (Unaudited) ASSETS Cash and cash equivalents $18,965 $14,861 Inventories 14,069 14,715 Other current assets 5,215 5,299 ----------------------------- Total current assets 38,249 34,875 Property and equipment, net 20,195 21,440 Goodwill 4,267 5,687 Other assets 2,416 3,075 ----------------------------- Total assets $65,127 $65,077 ============================= LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable 5,215 5,326 Other current liabilities 14,704 16,069 Total current liabilities 19,919 21,395 ----------------------------- Other long-term liabilities 837 740 Stockholders' equity 44,371 42,942 ----------------------------- Total liabilities and stockholders' equity $65,127 $65,077 ============================= USANA Health Sciences Inc. Sales by Market (in thousands) Quarter Ended ----------------------------------- 29-Mar-03 3-Apr-04 ----------------- ----------------- (Unaudited) (Unaudited) Region United States $19,989 48.9% $27,101 43.9% Canada 9,710 23.8% 12,437 20.1% Australia-New Zealand 5,323 13.0% 8,276 13.4% Hong Kong 1,890 4.6% 2,457 4.0% Japan 1,238 3.0% 2,216 3.6% Taiwan 2,714 6.7% 3,729 6.0% Korea - 0.0% 1,270 2.1% Singapore - 0.0% 2,007 3.2% Mexico - 0.0% 748 1.2% Wasatch - 0.0% 1,534 2.5% ---------- ------ ----------------- $40,864 100.0% $61,775 100.0% ========== ====== ================= Active Associates by Market As of ----------------------------------- 29-Mar-03 3-Apr-04 ----------------- ----------------- (Unaudited) (Unaudited) Region United States 30,000 42.8% 38,000 39.6% Canada 18,000 25.7% 19,000 19.8% Australia-New Zealand 10,000 14.3% 13,000 13.5% Hong Kong 4,000 5.7% 4,000 4.2% Japan 2,000 2.9% 4,000 4.2% Taiwan 6,000 8.6% 8,000 8.3% Korea - 0.0% 3,000 3.1% Singapore - 0.0% 4,000 4.2% Mexico - 0.0% 3,000 3.1% ---------- ------ ----------------- 70,000 100.0% 96,000 100.0% ========== ====== ================= Active Preferred Customers by Market As of ----------------------------------- 29-Mar-03 3-Apr-04 ----------------- ----------------- (Unaudited) (Unaudited) Region United States 29,000 61.7% 34,000 61.8% Canada 14,000 29.8% 16,000 29.1% Australia-New Zealand 4,000 8.5% 4,000 7.3% Hong Kong (a) 0.0% 1,000 1.8% Japan (a) 0.0% (a) 0.0% Taiwan (a) 0.0% (a) 0.0% Korea 0.0% (a) 0.0% Singapore 0.0% (a) 0.0% Mexico 0.0% (a) 0.0% ---------- ------ ----------------- 47,000 100.0% 55,000 100.0% ========== ====== ================= (a) Count of Active Preferred Customers is less than 500. CONTACT: USANA Health Sciences Inc., Salt Lake City Riley Timmer, 801-954-7100 Investor Relations Manager investor.relations@us.usana.com