Exhibit 99.1

USANA Health Sciences Reports Second Quarter Results

SALT LAKE CITY--(BUSINESS WIRE)--July 21, 2020--USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal second quarter ended June 27, 2020.

Key Financial & Operating Highlights

  • Continued strong demand and successful promotions combined to generate $259.0 million in net sales and $1.32 in diluted EPS during the quarter
  • Active customers increased 7.9% vs. the prior-year quarter
  • Company continued to successfully execute a virtual sales and operating strategy to deliver results
  • Company raises full-year 2020 Net Sales and EPS outlook

Q2 2020 Financial Performance

Consolidated Results

Net Sales

$259.0 million

  • +1.2% vs. prior-year quarter
  • +4.3% constant currency vs. prior-year quarter
  • -$8.1 million fx impact, or -3.1%

Diluted EPS

$1.32

  • +45.1% vs. prior-year quarter
  • Diluted shares of 21.1 million, -9.6%

Active Customers

599,000

  • +7.9% vs. prior-year quarter

Cash & Cash Equivalents

$227.4 million

  • Ended quarter with no debt

“Strong consumer demand for our high-quality, health products and successful promotions drove our second quarter performance,” said Kevin Guest, Chief Executive Officer and Chairman of the Board. “During the quarter, we generated nearly eight percent growth in active customers, due to double-digit customer growth in three-of-our-four regions, including the Americas and Europe region. We also continued to successfully execute a virtual sales and operating strategy to deliver our results. This strategy included USANA hosting its first all-virtual Asia Pacific Convention, as well as the facilitation of other technology-based tools that assisted our Associates in their sales efforts. Finally, we offered several promotions and incentives during the quarter that benefitted net sales and our overall results. The health, wellness and safety of our employees, Associates and customers around the world remain our top priorities and our operating plan will continue to reflect those priorities.”

Mr. Guest continued, “We are raising our full-year guidance to reflect a solid second quarter as well as our expectations for the back-half of the year. We recognize that we cannot anticipate all of the challenges that might arise as a result of the ongoing COVID-19 pandemic, but we believe that we are positioned to continue adapting to an evolving operating environment. Overall, we remain confident in the strength of USANA’s underlying business and the growth strategies we have in place for the remainder of 2020 and beyond.”


Q2 2020 Regional Results:

Asia Pacific Region

Net Sales

$209.3 million

  • +1.9% vs. prior-year quarter
  • Constant currency net sales: +4.8%
  • -$6.1 million fx impact, or -2.9%
  • 80.8% of consolidated net sales

Active Customers

463,000

  • +6.9% vs. prior-year quarter

Asia Pacific Sub-Regions

Greater China

Net Sales

$124.0 million

  • -3.8% vs. prior-year quarter
  • Constant currency net sales: -0.8%

Active Customers

278,000

  • Flat vs. prior-year quarter
  • +0.4% sequentially

North Asia

Net Sales

$25.9 million

  • +14.5% vs. prior-year quarter
  • Constant currency net sales: +19.5%

Active Customers

56,000

  • +19.1% vs. prior-year quarter
  • -1.8% sequentially

Southeast Asia Pacific

Net Sales

$59.5 million

  • +10.2% vs. prior-year quarter
  • Constant currency net sales: +12.2%

Active Customers

129,000

  • +19.4% vs. prior-year quarter
  • +12.2% sequentially

Americas and Europe Region

Net Sales

$49.7 million

  • -1.7% vs. prior-year quarter
  • Constant currency net sales: +2.3%
  • -$2.0 million fx impact, or -4.0%
  • 19.2% of consolidated net sales

Active Customers

136,000

  • +11.5% vs. prior-year quarter
  • +9.7% sequentially

Balance Sheet

The Company ended the quarter with $227.4 million in cash and cash equivalents and no debt. During the quarter the Company did not repurchase any shares of common stock and, as of June 27, 2020, there was approximately $73 million remaining under the current share repurchase authorization. Beginning in the third quarter, the Company’s board of directors will once again consider utilizing the Company’s share repurchase authorization to return value to shareholders.

Fiscal 2020 Outlook

The Company is updating its consolidated net sales and earnings per share outlook for fiscal year 2020.

Fiscal Year 2020 Outlook

 

 

Revised Range

 

Previous Range

Consolidated Net Sales

$1.05 - $1.10 billion

$1.00 - $1.08 billion

Diluted EPS

$4.70 - $5.25

$4.00 - $4.90

Doug Hekking, Chief Financial Officer, said, “We offered several successful promotions and incentives during the quarter that contributed to net sales while generating solid customer growth. We are raising our guidance to reflect our expectations for the back half of the year and plan on an increased cadence of promotions and incentives, particularly in the third quarter. The expected overall impact from currency remains relatively unchanged from the update we provided following the first quarter. Finally, our revised diluted earnings per share outlook reflects savings realized from event and travel costs due to the COVID-19 environment, as well as our success in aligning spending with sales performance. Although we are managing our cost structure to align with sales and to ensure the Company’s financial flexibility, we plan to continue making investments to execute our long-term growth strategies and to generate momentum in each of our regions.”

Management Commentary Document and Conference Call

For more information on the Company’s operating results, please see the “Management Commentary, Results and Outlook” document, which has been posted on the Company’s website (http://ir.usana.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, July 22, 2020 at 11:00 AM Eastern Time. Investors may listen to the call by accessing USANA’s website at http://ir.usana.com. The call will consist of brief opening remarks by the Company’s management team, before moving directly into questions and answers.


Non-GAAP Financial Measures

The Company prepares its financial statements using U.S. generally accepted accounting principles (“GAAP”). Constant currency net sales, earnings, EPS and other currency-related financial information (collectively, “Financial Results”) are non-GAAP financial measures that remove the impact of fluctuations in foreign-currency exchange rates (“fx”) and help facilitate period-to-period comparisons of the Company’s Financial Results that we believe provide investors an additional perspective on trends and underlying business results. Constant currency Financial Results are calculated by translating the current period's Financial Results at the same average exchange rates in effect during the applicable prior-year period and then comparing this amount to the prior-year period's Financial Results.

About USANA

USANA develops and manufactures high-quality nutritional supplements, healthy foods and personal care 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, Colombia, Indonesia, Germany, Spain, Romania, and Italy. More information on USANA can be found at www.usana.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: uncertainty related to the magnitude, scope and duration of the impact of the COVID-19 pandemic (“COVID-19”) to our business, operations and financial results; the further spread of, and regulatory measures or voluntary actions that may be put in place to limit the spread of, COVID-19 in the markets where we operate, including restrictions on business operations, shelter at home, or social distancing requirements; the potential for a resurgence of COVID-19 spread in any of our markets in the future; the impact of COVID-19 on the domestic and world economies, including any negative impact on discretionary spending, consumer demand, and consumer behavior in general; regulatory risk in China in connection with the health products and direct selling business models; regulatory risk in the United States in connection with the direct selling business model; potential negative effects of material breaches of our information technology systems to the extent we experience a material breach; material failures of our information technology systems; global economic conditions generally; reliance upon our network of independent Associates; risk associated with governmental regulation of our products, manufacturing and direct selling business model; adverse publicity risks globally; risks associated with our international expansion and operations; and uncertainty relating to the fluctuation in U.S. and other international currencies. 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. The forward-looking statements in this press release set forth our beliefs as of the date hereof. We do not undertake any obligation to update any forward-looking statement after the date hereof or to conform such statements to actual results or changes in the Company’s expectations, except as required by law.


USANA Health Sciences, Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)








 


Quarter Ended
Six Months Ended


27-Jun-20
29-Jun-19
27-Jun-20
29-Jun-19








 
Net sales

$

258,991


$

256,016


$

525,610


$

529,006

Cost of sales

 

47,674


 

46,494


 

93,733


 

92,395

Gross profit

 

211,317


 

209,522


 

431,877


 

436,611









 
Operating expenses







Associate incentives

 

110,852


 

111,511


 

226,921


 

234,041

Selling, general and administrative

 

60,879


 

66,854


 

126,358


 

136,409









 
Earnings from operations

 

39,586


 

31,157


 

78,598


 

66,161









 
Other income (expense)

 

393


 

1,355


 

544


 

2,645

Earnings before income taxes

 

39,979


 

32,512


 

79,142


 

68,806









 
Income taxes

 

12,002


 

11,134


 

24,613


 

23,256









 
NET EARNINGS

$

27,977


$

21,378


$

54,529


$

45,550









 








 
Earnings per share - diluted

$

1.32


$

0.91


$

2.56


$

1.93

Weighted average shares outstanding - diluted

 

21,129


 

23,370


 

21,340


 

23,648









 








 
USANA Health Sciences, Inc.


Consolidated Balance Sheets


(In thousands)


(Unaudited)










 


As of
As of



ASSETS
27-Jun-20
28-Dec-19



Current Assets







Cash and cash equivalents

$

227,368


$

234,830





Inventories

 

69,279


 

68,905





Prepaid expenses and other current assets

 

28,302


 

25,544





Total current assets

 

324,949


 

329,279













 
Property and equipment, net

 

98,435


 

95,233





Goodwill

 

16,521


 

16,636





Intangible assets, net

 

29,008


 

29,840





Deferred income taxes

 

3,741


 

3,090





Other assets

 

39,497


 

42,856





Total assets

$

512,151


$

516,934













 








 
LIABILITIES AND STOCKHOLDERS' EQUITY







Current Liabilities







Accounts payable

$

10,942


$

12,525





Other current liabilities

 

128,775


 

123,573





Total current liabilities

 

139,717


 

136,098













 
Deferred income taxes

 

6,584


 

10,282





Other long-term liabilities

 

16,774


 

18,842













 
Stockholders' equity

 

349,076


 

351,712





Total liabilities and stockholders' equity

$

512,151


$

516,934













 

USANA Health Sciences, Inc.
Sales by Region

(unaudited)

(in thousands)


Quarter Ended








27-Jun-20
29-Jun-19
Change from
prior year

Currency impact
on sales

% change excluding
currency impact















 
Asia Pacific














Greater China

$

124,001


47.9

%


$

128,946


50.3

%


$

(4,945

)


(3.8

%)


$

(3,874

)


(0.8

%)

Southeast Asia Pacific

 

59,459


22.9

%


 

53,960


21.1

%


 

5,499

 


10.2

%


 

(1,096

)


12.2

%

North Asia

 

25,852


10.0

%


 

22,575


8.8

%


 

3,277

 


14.5

%


 

(1,127

)


19.5

%

Asia Pacific Total

 

209,312


80.8

%


 

205,481


80.2

%


 

3,831

 


1.9

%


 

(6,097

)


4.8

%
















 
Americas and Europe

 

49,679


19.2

%


 

50,535


19.8

%


 

(856

)


(1.7

%)


 

(1,999

)


2.3

%
















 

$

258,991


100.0

%


$

256,016


100.0

%


$

2,975

 


1.2

%


$

(8,096

)


4.3

%
















 















 

Active Associates by Region(1)









(unaudited)
























 

As of








27-Jun-20
29-Jun-19


















 
Asia Pacific














Greater China

 

93,000


32.3

%


 

102,000


35.8

%









Southeast Asia Pacific

 

94,000


32.6

%


 

87,000


30.5

%









North Asia

 

37,000


12.9

%


 

33,000


11.6

%









Asia Pacific Total

 

224,000


77.8

%


 

222,000


77.9

%
























 
Americas and Europe

 

64,000


22.2

%


 

63,000


22.1

%
























 

 

288,000


100.0

%


 

285,000


100.0

%
























 
Active Preferred Customers by Region (2)







(unaudited)






















 

As of








27-Jun-20
29-Jun-19







Asia Pacific














Greater China

 

185,000


59.5

%


 

176,000


65.2

%









Southeast Asia Pacific

 

35,000


11.3

%


 

21,000


7.7

%









North Asia

 

19,000


6.1

%


 

14,000


5.2

%









Asia Pacific Total

 

239,000


76.9

%


 

211,000


78.1

%
























 
Americas and Europe

 

72,000


23.1

%


 

59,000


21.9

%
























 

 

311,000


100.0

%


 

270,000


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 resale.
(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. China utilizes a Preferred Customer program that has been implemented specifically for that market.

 

Contacts

Investors contact:
Patrique Richards
Investor Relations
(801) 954-7961
investor.relations@us.usana.com

Media contact:
Dan Macuga
Public Relations
(801) 954-7280