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USANA Health Sciences Announces Fourth Quarter and Full-Year 2009 Financial Results That Exceed Guidance
- 2009 marks the 7th consecutive year of record sales
- Net sales increase to a record $116.8 million and $436.9 million
- Earnings per share increase to $0.66 and $2.17
- Guidance provided for 2010
SALT LAKE CITY--(BUSINESS WIRE)--February 9, 2010--USANA Health Sciences, Inc. (NASDAQ: USNA) today announced financial results for its fiscal fourth quarter and full-year ended January 2, 2010.
Net sales in the fourth quarter of 2009 improved 5.2% to a record $116.8 million, compared with $111.1 million in the fourth quarter of the prior year. The fourth quarter of 2008 was a 14-week quarter and included, comparatively, one additional week of sales. Excluding this extra week of sales in the fourth quarter of 2008, net sales for the fourth quarter of 2009 increased year-over-year by 12.2%. This increase over the prior year was due to an overall increase in product sales and a $6.5 million benefit from changes in currency exchange rates.
Net earnings in the fourth quarter were $10.2 million, or $0.66 per share, compared with $4.5 million, or $0.29 per share, in the fourth quarter of the prior year. Excluding a non-recurring expense in the fourth quarter of 2008, net earnings increased by $1.5 million, or 16.7%, and earnings per share increased by $0.10, or 17.9%. The increase in net earnings resulted from lower selling, general and administrative expenses, improved gross profit margins, and a benefit in other income due to changes in foreign currency gains and losses. These improvements were partially offset by higher Associate incentives expense.
In the full-year ended January 2, 2010, net sales increased by 1.8% to a record $436.9 million, compared with $429.0 million in the prior year. Excluding the extra week of sales in 2008 and the negative effect of changes in currency exchange rates, which reduced sales by $17.1 million, net sales increased by 7.6%, compared with the prior year. This growth in sales was due to an overall increase in product sales, driven by a higher average number of active Associates.
Net earnings in the full-year 2009 were $33.6 million, or $2.17 per share, compared with net earnings of $29.9 million, or $1.85 per share in the prior year. Excluding a non-recurring expense in 2008, net earnings decreased by $643 thousand or 1.9%. This decrease in net earnings can primarily be attributed to unfavorable currency exchange rates and higher Associate incentives expense. Earnings per share, however, increased by $0.05, or 2.4%, due to a lower number of average shares outstanding.
“We are pleased with the momentum we experienced in our business in the fourth quarter, which allowed us to finish 2009 on a strong note and exceed guidance,” said Dave Wentz, chief executive officer. “Although the global recession and other external factors presented challenges to our business during the year, our growing international presence and proven business model allowed us to meet these challenges. In 2009, we completed our first full year of successful operations in the Philippines, saw the benefits of the two enhancements we made to our Associate compensation plan, and introduced several new and innovative products and sales tools. With this momentum, I believe we are well positioned for further growth and profitability in 2010.”
The following information was filed by Usana Health Sciences Inc (USNA) on Tuesday, February 9, 2010 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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