Exhibit 99.1

USANA Health Sciences Finishes Strong 2020 with 14.5% Fourth Quarter Net Sales Growth and 32.6% Diluted EPS Growth

SALT LAKE CITY--(BUSINESS WIRE)--February 9, 2021--USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal fourth quarter and full-year ended January 2, 2021.

Key Q4 and Full Year 2020 Financial & Operating Highlights

  • Fourth quarter net sales increased 14.5% year-over-year to $310.5 million.
  • Fourth quarter diluted EPS increased 32.6% year-over-year to a record $1.87.
  • Fiscal year net sales increased 7.0% year-over-year to $1.135 billion.
  • Fiscal year diluted EPS increased 32.9% year-over-year to a record $5.86.
  • Company provides initial 2021 net sales guidance of $1.21 to $1.27 billion and initial diluted EPS guidance of $6.00 to $6.45.
  • Board of Directors authorizes up to $150 million in share repurchase authorization.

Q4 2020 Financial Performance

Consolidated Results

Net Sales

$310.5 million

  • +14.5% vs. prior-year quarter
  • +9.9% constant currency vs. prior-year quarter
  • +$12.4 million YOY FX impact, or +4.6%
  • Additional week of sales contributed approximately $18 million

Diluted EPS

$1.87

  • +32.6% vs. prior-year quarter
  • Diluted shares of 21.2 million, -2.6%
  • Additional week of sales contributed an estimated $0.17

Active Customers

599,000

  • +2.2% vs. prior-year quarter

The Company maintains a 52/53-week fiscal year. Fiscal 2020 was a 53-week year and includes one additional week of sales during the fourth quarter compared to the fourth quarter of 2019. Prior to fiscal 2020, the last 53-week year was in fiscal 2014.

“Our fourth quarter results were better than expected and cap off a year during which USANA delivered remarkable results despite continued challenges from the pandemic,” said Kevin Guest, Chief Executive Officer and Chairman of the Board. “During the quarter, demand for our high-quality nutritional products from our loyal consumers remained strong and fueled business momentum. Additionally, changes in currency exchange rates and the additional week of sales during the fourth quarter contributed to growth. As we kick-off 2021, we are confident that we are positioned to deliver another year of solid growth for USANA.

Q4 2020 Regional Results:

Asia Pacific Region

Net Sales

$248.8 million

  • +14.5% vs. prior-year quarter
  • Constant currency net sales: +8.7%
  • 80.1% of consolidated net sales

Active Customers

454,000

  • -1.1% vs. prior-year quarter

Asia Pacific Sub-Regions

Greater China

Net Sales

$139.1 million

  • +5.4% vs. prior-year quarter
  • Constant currency net sales: -0.6%

Active Customers

252,000

  • -13.1% vs. prior-year quarter
  • -11.3% sequentially

North Asia

Net Sales

$32.9 million

  • +17.1% vs. prior-year quarter
  • Constant currency net sales: +11.5%

Active Customers

60,000

  • +7.1% vs. prior-year quarter
  • No change sequentially

Southeast Asia Pacific

Net Sales

$76.9 million

  • +34.2% vs. prior-year quarter
  • Constant currency net sales: +28.9%

Active Customers

142,000

  • +25.7% vs. prior-year quarter
  • -10.1% sequentially


Americas and Europe Region

Net Sales

$61.7 million

  • +14.3% vs. prior year
  • Constant currency net sales: +14.5%
  • 19.9% of consolidated net sales

Active Customers

145,000

  • +14.2% vs. prior year
  • -2.0% sequentially

FY 2020 Financial Performance

Consolidated Results

Net Sales

$1.135 billion

  • +7.0% vs. prior year
  • +6.9% constant currency vs. prior year
  • no meaningful FX impact

Diluted EPS

$5.86

  • +32.9% vs. prior year
  • Diluted shares of 21.3 million, -6.8%

Cash & Cash Equivalents

$312 million

  • Cash generated from operating activities totaled $160 million

Mr. Guest continued, “For several years now, we have focused on improving the overall experience USANA offers to consumers. Digital enhancement of our business has been a key aspect of our customer experience strategy. We believe that our accomplishments in this area positioned us to sustain and accelerate performance during an unprecedented 2020. During the year, we accelerated many of our digital initiatives, including further improving our mobile platform, expanding payment options to meet the demands of consumers around the world, facilitating quick and simple product education, capturing feedback, and making it easier for consumers to share their USANA experience with others.”

Mr. Guest added, “In 2021, we will continue to focus on growing our consumer base and executing our global strategy, which includes: (i) continued investment in digital transformation and overall customer experience; (ii) the launch of our new Active Nutrition product line; (iii) generating growth in existing markets with an emphasis on China; (iv) pursuing international expansion opportunities; (v) pursuing accretive, strategic collaborations and acquisitions to grow our business; and (vi) focusing on corporate sustainability. We remain committed to USANA’s mission of health and wellness, and we are confident that our strategy will drive growth and deliver value to shareholders.”


Balance Sheet

The Company ended the quarter with $312 million in cash and cash equivalents and no debt. During the quarter, the Company did not repurchase any shares of common stock. For the full year the company repurchased 785,000 shares totaling $57 million throughout the year.

Share Repurchase Authorization

As of the end of the fourth quarter, there was approximately $73 million remaining under the existing share repurchase authorization. The Company’s Board of Directors has approved up to $150 million in share repurchase authorization, inclusive of the $73 million remaining under the share repurchase authorization.

Repurchases may be made from time to time, in the open market, through block trades or otherwise, subject to applicable rules of the Securities and Exchange Commission. The number of shares to be purchased and the timing of purchases will be based on market conditions, the level of cash balances, general business opportunities, and other factors.

Fiscal 2021 Outlook

The Company is providing the following consolidated net sales and earnings per share outlook for fiscal year 2021.

Fiscal Year 2021 Outlook

 

 

Range

Consolidated Net Sales

$1.21 - $1.27 billion

Diluted EPS

$6.00 - $6.45


Doug Hekking, Chief Financial Officer, said, “Fourth quarter operating results exceeded internal expectations and were driven by momentum in our business as well as an improved foreign currency environment.

“Today we are providing our initial outlook for 2021, which reflects top-line growth between 6.6% and 11.9% and an operating margin between 14.8% and 15.2%. Operating results projected for fiscal year 2021 contain one less week of business, anticipate a favorable foreign currency environment, and increased spending in the back half of the year related to travel and event related costs. Additionally, we are projecting an effective tax rate of 31% for the year and a diluted share count of 20.7 million. We remain committed to investing in our strategies designed to generate growth in customers and net sales.”

Mr. Hekking added, “Outlook for fiscal 2021 reflects our current understanding of the COVID-19 operating environment as restrictions and health responses continue to evolve. During the first half of 2021, we expect to hold virtual events for our sales force and maintain our work-from-home plan for employees. Thus far, we have not seen a meaningful sustained disruption to our manufacturing, shipping or global operations. Some markets continue to face increased restrictions, while others are seeing a return to a more normalized operating environment. We hope to see conditions continue to improve as the year progresses, but recognize that the ongoing COVID-19 environment remains unpredictable.”

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, February 10, 2021 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
Twelve Months Ended


2-Jan-21
28-Dec-19
2-Jan-21
28-Dec-19








 
Net sales

$ 310,521


$ 271,298


$ 1,134,644


$ 1,060,902

Cost of sales

59,020


47,289


209,111


187,503

Gross profit

251,501


224,009


925,533


873,399









 
Operating expenses







Associate incentives

129,791


114,378


487,856


459,478

Selling, general and administrative

69,172


65,060


261,186


267,731









 
Earnings from operations

52,538


44,571


176,491


146,190









 
Other income (expense)

1,993


1,231


1,457


4,306

Earnings before income taxes

54,531


45,802


177,948


150,496









 
Income taxes

14,902


15,048


53,284


49,970









 
NET EARNINGS

$ 39,629


$ 30,754


$ 124,664


$ 100,526









 








 
Earnings per share - diluted

$ 1.87


$ 1.41


$ 5.86


$ 4.41

Weighted average shares outstanding - diluted

21,189


21,751


21,256


22,818


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





 


As of
As of
ASSETS
2-Jan-21
28-Dec-19
Current Assets




Cash and cash equivalents

$ 311,917


$ 234,830


Inventories

90,224


68,905


Prepaid expenses and other current assets

23,145


25,544


Total current assets

425,286


329,279







 
Property and equipment, net

100,445


95,233


Goodwill

17,367


16,636


Intangible assets, net

30,796


29,840


Deferred income taxes

4,640


3,090


Other assets

62,353


42,856


Total assets

$ 640,887


$ 516,934







 





 
LIABILITIES AND STOCKHOLDERS' EQUITY




Current Liabilities




Accounts payable

$ 18,195


$ 12,525


Other current liabilities

149,878


123,573


Total current liabilities

168,073


136,098







 
Deferred income taxes

12,009


10,282


Other long-term liabilities

19,155


18,842







 
Stockholders' equity

441,650


351,712


Total liabilities and stockholders' equity

$ 640,887


$ 516,934



USANA Health Sciences, Inc.
Sales by Region

(unaudited)












(in thousands)












Quarter Ended












2-Jan-21

28-Dec-19

Change from
prior year



Currency impact
on sales


% change
excluding currency impact




















 
Asia Pacific



















Greater China

$ 139,059


44.8

%



$ 131,949


48.6

%



$ 7,110


5.4

%



$ 7,889

 



(0.6

%)

Southeast Asia Pacific

76,861


24.7

%



57,283


21.1

%



19,578


 

34.2

%



3,037

 



28.9

%

North Asia

32,892


10.6

%



28,085


10.4

%



4,807


 

17.1

%



1,580

 



11.5

%

Asia Pacific Total

248,812


80.1

%



217,317


80.1

%



31,495


 

14.5

%



12,506

 



8.7

%





















 
Americas and Europe

61,709


19.9

%



53,981


19.9

%



7,728


 

14.3

%



(113

)



14.5

%





















 

$ 310,521


100.0

%



$ 271,298


100.0

%



$ 39,223



14.5

%



$ 12,393

 



9.9

%


Active Associates by Region(1)
(unaudited)







 

As of

2-Jan-21
28-Dec-19



 
Asia Pacific






Greater China

88,000


29.4

%


100,000


34.4

%

Southeast Asia Pacific

103,000


34.5

%


87,000


29.9

%

North Asia

39,000


13.0

%


38,000


13.0

%

Asia Pacific Total

230,000


76.9

%


225,000


77.3

%








 
Americas and Europe

69,000


23.1

%


66,000


22.7

%








 

299,000


100.0

%


291,000


100.0

%








 







 

Active Preferred Customers by Region(2)
(unaudited)








 

As of

2-Jan-21
28-Dec-19
Asia Pacific






Greater China

164,000


54.7

%


190,000


64.4

%

Southeast Asia Pacific

39,000


13.0

%


26,000


8.8

%

North Asia

21,000


7.0

%


18,000


6.1

%

Asia Pacific Total

224,000


74.7

%


234,000


79.3

%








 
Americas and Europe

76,000


25.3

%


61,000


20.7

%








 

300,000


100.0

%


295,000


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

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