


Nu Skin Enterprises Delivers Investor Presentation -- PROVO, Utah, Aug. 16, 2012 /PRNewswire/ --
Nu Skin Enterprises Delivers Investor Presentation
Nu Skin Continues to Successfully Execute its Growth Strategy; Provides Updates on Scientific Collaborations and ageLOC Products
PROVO, Utah, Aug. 16, 2012 /PRNewswire/ -- Nu Skin Enterprises, Inc. (NYSE: [ NUS ]) today announced that Ritch Wood, chief financial officer, presented an updated investor presentation at the Canaccord Genuity 32nd Annual Growth Conference in Boston. The presentation is available on the Investor Relations page of the Nu Skin Enterprises website, at [ http://ir.nuskin.com ].
"Nu Skin continues to demonstrate strong growth and consistent financial performance based on the productivity of our global sales force, our innovative product platform and compelling opportunities around the world," said Wood. "In addition, Nu Skin continues to return capital to our stockholders through a healthy dividend and an ongoing share repurchase program."
Highlights of the presentation include:
- Strong, Consistent Financial Performance. In the second quarter of 2012, Nu Skin reported record financial results, including $593.2 million of global revenue – a 40 percent increase over the prior year period; earnings per share of $0.94– a 45 percent increase over the prior year period; and an operating margin of 16.5 percent. Given strong second-quarter results, as well as healthy growth trends in Nu Skin's sales force, the company significantly increased its 2012 revenue and earnings guidance with 2012 revenue expected to be in the $2.00 to $2.03 billion range with earnings per share of $3.16 to $3.24.
- Innovative Product Platform. Nu Skin offers a compelling anti-aging product line in both nutrition and personal care, with second quarter 2012 sales split equally between the two categories. The company is committed to premium products that are demonstrable, innovative and science-based. Nu Skin estimates its ageLOC product line will generate 2012 sales of approximately $800 million. In addition, the ageLOC line has a significant product pipeline, including the launch of a weight management system next year.
- Compelling Emerging Market Operations. Nu Skin expects emerging markets to account for 40 percent of its projected 2015 revenue, with tremendous opportunity in mainland China and Southeast Asia. Nu Skin has many years of experience operating within China's regulatory framework and has made substantial investments in its infrastructure, including four manufacturing plants, two R&D labs, 40 retail stores and 15 provincial and municipality licenses.
- Proven Execution. In the second quarter of 2012, Nu Skin reported a record number of executive sales leaders. The company also continues to improve the execution of its product launches and projects $200 million in product launch revenue in 2012. In addition, Nu Skin's subscription revenue enhances consumer loyalty, with over 50 percent of the company's 2012 revenue expected to come from subscriptions.
- Commitment to Driving Shareholder Value. Nu Skin has raised its annual dividend every year since 2001 and in the last two years has increased its dividend by 60 percent. In addition, the company continues to actively repurchase shares under the company's existing authorization, which had $220 million remaining as of June 30, 2012.
Additional Updates
Nu Skin also provided updates on its scientific collaborations and certain ageLOC products. Nu Skin's ageLOC science is based on 30 years of genetic and anti-aging research, much of which was conducted by researchers at the University of Wisconsin who founded LifeGen Technologies. Nu Skin began an exclusive collaboration with LifeGen in 2009 and acquired LifeGen in 2011. The co-founders of the company, Dr. Richard Weindruch, and Dr. Tomas Prolla, have more than three decades of expertise in researching the aging process. LifeGen's founders have collectively published more than 300 scientific papers in noted publications such as Science. In addition to LifeGen's expertise, Nu Skin has many years of product development expertise in personal care and nutrition. Nu Skin's ageLOC science is based on solid research and has been communicated to the scientific community through numerous articles, presentations and posters.
The company also funds and collaborates on research projects with scientists from various academic institutions. For example, during the past 13 years, the company has funded multiple research studies at Stanford University, resulting in publications presented around the world.
Nu Skin also provided an update on its Galvanic Spa facial unit. The company noted that it has been selling the Galvanic Spa facial unit for 10 years in the U.S. as a cosmetic appliance, and that the product has a solid safety record. Recently, in connection with a review of in-bound shipments of the Galvanic Spa facial unit, the U.S. Food and Drug Administration (FDA) indicated its belief that the product needed to be registered as a medical device before being imported.
In 2011, U.S. sales of the Galvanic Spa facial unit accounted for less than one percent of global revenue.
Nu Skin has stopped imports of the Galvanic Spa facial unit pending resolution of this matter. If necessary, the company is prepared to register the product as a low-level medical device as it has done in certain other markets outside the U.S. to meet local regulatory requirements. If registration is required, Nu Skin believes it could receive clearance from the FDA in the next six to nine months.
About Nu Skin Enterprises
Nu Skin Enterprises, Inc. demonstrates its tradition of innovation through its comprehensive anti-aging product portfolio, independent business opportunity and corporate social responsibility initiatives. The company's scientific leadership in both skin care and nutrition has established Nu Skin as a premier anti-aging company, evidenced in its unique ageLOC® science that addresses aging at its source. The company's anti-aging products feature the new ageLOC ® suite of products including the ageLOC® R2 nutritional supplement, ageLOC® Galvanic Spa System and ageLOC Galvanic Body Spa™, as well as the ageLOC® Transformation daily skin care system. A global direct selling company, Nu Skin operates in 53 markets worldwide and has nearly 900,000 independent distributors. Nu Skin is traded on the New York Stock Exchange under the symbol "NUS." More information is available at [ http://www.nuskin.com ].
Please note: This presentation contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934 that represent the company's current expectations and beliefs. In some cases, you can identify these statements by forward-looking words such as "believe," "expect," "anticipate," "estimate," "intend," "plan," "targets," "likely," "will," "would," "could," "may," "might," the negative of these terms and other comparable terminology. Forward-looking statements include, but are not limited to, statements relating to: (i) management's positive outlook for the company; (ii) management's expectations regarding the company's initiatives, strategies and new products; (iii) management's projections regarding revenue, earnings per share, operating margin, cash from operations and dividends; (iv) management's expectations regarding emerging markets, including China and the South Asia/Pacific region and (v) the company's Galvanic Spa in the United States. The forward-looking statements and related assumptions involve risks and uncertainties that could cause actual results and outcomes to differ materially from any forward-looking statements or views expressed herein. These risks and uncertainties include, but are not limited to, the following: (a) any failure of current or planned initiatives or products to generate interest among distributors and customers and generate sponsoring and selling activities on a sustained basis; (b) challenging economic conditions globally; (c) risk of foreign currency fluctuations and the currency translation impact on the company's business associated with these fluctuations; (d) risks associated with increased general inquiries and complaints to consumer protection agencies in Japan regarding the activities of some distributors; (e) regulatory risks associated with the company's products, which could inhibit the company's ability to import or continue selling a product in a market if it is determined to be a medical device; (f) continued regulatory scrutiny and investigations in Mainland China, which have from time to time in the past, and could in the future, negatively impact the company's business, including the interruption of sales activities in stores, loss of licenses, and the imposition of fines; (g) adverse publicity related to the company's business, products, industry or any legal actions or complaints by distributors or others; (h) any prospective or retrospective increases in duties on the company's products imported into the company's markets outside of the United States and any adverse results of tax audits or unfavorable changes to tax laws in the company's various markets; and (i) continued competitive pressures in the company's markets. The company's financial performance and the forward-looking statements contained herein are further qualified by a detailed discussion of associated risks set forth in the documents filed by the company with the Securities and Exchange Commission. The forward-looking statements set forth the company's beliefs as of the date that such information was first provided, and the company assumes no duty to update the forward-looking statements contained in this release to reflect any change except as required by law.
SOURCE Nu Skin Enterprises, Inc.
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