Exhibit 99.1

USANA Health Sciences Reports Strong Third Quarter Growth; Raises Full-Year 2020 Net Sales and EPS Outlook

SALT LAKE CITY--(BUSINESS WIRE)--October 20, 2020--USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal third quarter ended September 26, 2020.

Key Financial & Operating Highlights

  • Third quarter net sales increased 14.5% year-over-year to $298.5 million due to strong product demand and successful incentive programs.
  • Diluted EPS increased 32.1% year-over-year to a record $1.44.
  • Active customers increased 16.5% year-over-year to a record 650,000.
  • Company raises full-year 2020 Net Sales and EPS outlook.

Q3 2020 Financial Performance

Consolidated Results

Net Sales

$298.5 million

  • +14.5% vs. prior-year quarter
  • +13.6% constant currency vs. prior-year quarter
  • +$2.5 million FX impact, or +0.9%

Diluted EPS

$1.44

  • +32.1% vs. prior-year quarter
  • Diluted shares of 21.2 million, -4.7%

Active Customers

650,000

  • +16.5% vs. prior-year quarter

Cash & Cash
Equivalents

$278.4 million

  • Ended quarter with no debt

“This was an all-around very successful quarter for the Company,” said Kevin Guest, Chief Executive Officer and Chairman of the Board. “During the quarter, our strategies led to strong global customer demand for our high-quality nutritional products. We also offered various incentives and promotions that were well received and contributed meaningfully to sales and customer growth for the quarter.”

“Of further note, USANA’s Virtual Events strategy proved successful during the quarter. Our annual Americas and Europe Convention and our China National Sales Meeting were both held virtually, and this allowed us to reach larger audiences than did many of our past, in-person events. Throughout 2020, our management team and Associate sales force have demonstrated their ability to modify strategies and adapt to continually changing conditions, all in an effort to continue to advance USANA’s mission of health and wellness. We look forward to a strong finish to 2020 and delivering further growth in 2021.”

Q3 2020 Regional Results:

Asia Pacific Region

Net Sales

$241.3 million

  • +15.7% vs. prior-year quarter
  • Constant currency net sales: +13.9%
  • +$3.7 million FX impact, or +1.8%
  • 80.8% of consolidated net sales

Active Customers

502,000

  • +15.4% vs. prior-year quarter

Asia Pacific Sub-Regions

Greater China

Net Sales

$136.0 million

  • +3.9% vs. prior-year quarter
  • Constant currency net sales: +2.7%

Active Customers

284,000

  • +4.0% vs. prior-year quarter
  • +2.2% sequentially

North Asia

Net Sales

$29.0 million

  • +24.3% vs. prior-year quarter
  • Constant currency net sales: +23.7%

Active Customers

60,000

  • +20.0% vs. prior-year quarter
  • +7.1% sequentially

Southeast Asia Pacific

Net Sales

$76.3 million

  • +40.5% vs. prior-year quarter
  • Constant currency net sales: +36.7%

Active Customers

158,000

  • +41.1% vs. prior-year quarter
  • +22.5% sequentially

Americas and Europe Region

Net Sales

$57.2 million

  • +10.0% vs. prior-year quarter
  • Constant currency net sales: +12.2%
  • -$1.2 million FX impact, or -2.2%
  • 19.2% of consolidated net sales

Active Customers

148,000

  • +20.3% vs. prior-year quarter
  • +8.8% sequentially

Balance Sheet

The Company ended the quarter with $278.4 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 the end of the third quarter, there was approximately $73 million remaining under the current share repurchase authorization.

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

$1.090 - $1.115 billion

$1.050 - $1.100 billion

Diluted EPS

$5.15 - $5.45

$4.70 - $5.25

Doug Hekking, Chief Financial Officer, said, “In light of our third quarter results and our expectations for the fourth quarter, we are raising our net sales and EPS guidance. While we do not have incentive offerings of a similar magnitude scheduled for the fourth quarter, we expect the business to produce solid results and carry momentum into 2021. Going forward, we will continue to focus our efforts on balancing the need for financial flexibility with continued investments in opportunities that allow us to execute our long-term growth strategies.”


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, October 21, 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, functional 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 deteriorating foreign and/or trade relations between the United States and China; 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
Nine Months Ended


26-Sep-20
28-Sep-19
26-Sep-20
28-Sep-19








 
Net sales

$ 298,513

 


$ 260,598


$ 824,123

 


$ 789,604

Gross profit

242,155

 


212,779


674,032

 


649,390









 
Operating expenses







Associate incentives

131,144

 


111,059


358,065

 


345,100

Selling, general and administrative

65,656

 


66,262


192,014

 


202,671









 
Earnings from operations

45,355

 


35,458


123,953

 


101,619









 
Other income (expense)

(1,080

)


430


(536

)


3,075

Earnings before income taxes

44,275

 


35,888


123,417

 


104,694









 
Income taxes

13,769

 


11,666


38,382

 


34,922









 
NET EARNINGS

$ 30,506

 


$ 24,222


$ 85,035

 


$ 69,772









 








 
Earnings per share - diluted

$ 1.44

 


$ 1.09


$ 4.00

 


$ 3.01

Weighted average shares outstanding - diluted

21,170

 


22,223


21,283

 


23,173


USANA Health Sciences, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)





 


As of
As of
ASSETS
26-Sep-20
28-Dec-19
Current Assets




Cash and cash equivalents

$ 278,418


$ 234,830


Inventories

78,167


68,905


Prepaid expenses and other current assets

29,447


25,544


Total current assets

386,032


329,279







 
Property and equipment, net

99,400


95,233


Goodwill

16,894


16,636


Intangible assets, net

29,748


29,840


Deferred income taxes

4,618


3,090


Other assets

40,840


42,856


Total assets

$ 577,532


$ 516,934







 





 
LIABILITIES AND STOCKHOLDERS' EQUITY




Current Liabilities




Accounts payable

$ 14,173


$ 12,525


Other current liabilities

146,690


123,573


Total current liabilities

160,863


136,098







 
Deferred income taxes

8,248


10,282


Other long-term liabilities

19,304


18,842







 
Stockholders' equity

389,117


351,712


Total liabilities and stockholders' equity

$ 577,532


$ 516,934



USANA Health Sciences, Inc.
Sales by Region

(unaudited)

(in thousands)


Quarter Ended









26-Sep-20
28-Sep-19
Change from prior
year

Currency
impact on
sales

% change
excluding
currency
impact

















 
Asia Pacific















Greater China

$

136,013


45.5

%


$

130,947


50.3

%


$

5,066


3.9

%


$

1,510

 


2.7

%


Southeast Asia Pacific

 

76,313


25.6

%


 

54,327


20.8

%


 

21,986


40.5

%


 

2,032

 


36.7

%


North Asia

 

28,969


9.7

%


 

23,299


8.9

%


 

5,670


24.3

%


 

145

 


23.7

%


Asia Pacific Total

 

241,295


80.8

%


 

208,573


80.0

%


 

32,722


15.7

%


 

3,687

 


13.9

%


















 
Americas and Europe

 

57,218


19.2

%


 

52,025


20.0

%


 

5,193


10.0

%


 

(1,167

)


12.2

%


















 

$

298,513


100.0

%


$

260,598


100.0

%


$

37,915


14.5

%


$

2,520

 


13.6

%



Active Associates by Region(1)
(unaudited)









 

As of


26-Sep-20
28-Sep-19






 
Asia Pacific








Greater China

91,000


29.1%


99,000


35.0%



Southeast Asia Pacific

113,000


36.1%


88,000


31.1%



North Asia

39,000


12.4%


34,000


12.0%



Asia Pacific Total

243,000


77.6%


221,000


78.1%












 
Americas and Europe

70,000


22.4%


62,000


21.9%












 

313,000


100.0%


283,000


100.0%




Active Preferred Customers by Region (2)
(unaudited)











 

As of




26-Sep-20
28-Sep-19



Asia Pacific










Greater China

193,000


57.3%


174,000


63.3%





Southeast Asia Pacific

45,000


13.4%


24,000


8.7%





North Asia

21,000


6.2%


16,000


5.8%





Asia Pacific Total

259,000


76.9%


214,000


77.8%
















 
Americas and Europe

78,000


23.1%


61,000


22.2%
















 

337,000


100.0%


275,000


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