Exhibit 99.1

USANA Health Sciences Reports Record Second Quarter Results and Reiterates Growth Outlook for FY 2021

SALT LAKE CITY--(BUSINESS WIRE)--July 27, 2021--USANA Health Sciences, Inc. (NYSE: USNA) today announced record financial results for its fiscal second quarter ended July 3, 2021.

Key Financial & Operating Highlights

  • Second quarter net sales increased 30.1% year-over-year to a record $336.8 million.
  • Second quarter diluted EPS increased 41.7% year-over-year to $1.87.
  • Active Customers increased 8.8% year-over-year to a record 652,000.
  • Reiterates 2021 net sales and diluted EPS outlook.

Q2 2021 Financial Performance

Consolidated Results

Net Sales

$336.8 million

  • +30.1% vs. prior-year quarter
  • +20.3% constant currency vs. prior-year quarter
  • +$25.2 million YOY FX impact, or +9.8%

Diluted EPS

$1.87

  • +41.7% vs. prior-year quarter
  • Diluted shares of 20.4 million, -3.2%

Active Customers

652,000

  • +8.8% vs. prior-year quarter

“Strong consumer demand for our high-quality health products, coupled with the execution of our previously announced short-term sales program, contributed to our record net sales and customer numbers for the second quarter,” said Kevin Guest, Chief Executive Officer and Chairman of the Board. “Our-top line performance was driven by strong double-digit, year-over-year sales growth in each of our regions including a 16.5% increase in the Americas and Europe region and a 33.3% increase in the Asia Pacific region.


Q2 2021 Regional Results:

Asia Pacific Region

Net Sales

$279.0 million

  • +33.3% vs. prior-year quarter
  • Constant currency net sales: +23.0%
  • 82.8% of consolidated net sales

Active Customers

513,000

  • +10.8% vs. prior-year quarter
  • +8.6% sequentially

Asia Pacific Sub-Regions

Greater China

Net Sales

$165.4 million

  • +33.4% vs. prior-year quarter
  • Constant currency net sales: +22.5%

Active Customers

303,000

  • +9.0% vs. prior-year quarter
  • +9.8% sequentially

North Asia

Net Sales

$37.4 million

  • +44.8% vs. prior-year quarter
  • Constant currency net sales: +33.6%

Active Customers

66,000

  • +17.9% vs. prior-year quarter
  • +11.9% sequentially

Southeast Asia Pacific

Net Sales

$76.1 million

  • +28.0% vs. prior-year quarter
  • Constant currency net sales: +19.2%

Active Customers

144,000

  • +11.6% vs. prior-year quarter
  • +5.1% sequentially

Americas and Europe Region

Net Sales

$57.9 million

  • +16.5% vs. prior year
  • Constant currency net sales: +9.2%
  • 17.2% of consolidated net sales

Active Customers

139,000

  • +2.2% vs. prior year
  • -4.1% sequentially

Mr. Guest added, “We continue to execute our strategy to enhance the overall shopping experience for customers in all of our markets and made further progress on this initiative during the quarter. Additionally, the rollout of our Active Nutrition line, which was introduced in late March, is proceeding according to plan. As we look ahead to the second half of the year, we are seeing a more challenging operating environment in several markets due to escalating conditions related to the COVID-19 pandemic. We believe, however, that the successful execution of our strategy will deliver long-term sustainable growth.”

Balance Sheet and Share Repurchase Activity

The Company ended the quarter with $265 million in cash and cash equivalents and no debt after repurchasing 304,000 shares for $29.7 million. Diluted shares outstanding totaled 20.4 million during the second quarter of 2021 and there was approximately $51 million remaining under the existing share repurchase authorization as of July 3, 2021.

Fiscal 2021 Outlook

The Company is reiterating its consolidated net sales and earnings per share outlook for fiscal year 2021.

Fiscal Year 2021 Outlook

 

 

Range

Consolidated Net Sales

$1.24 - $1.28 billion

Diluted EPS

$6.15 - $6.50

The Company maintains a 52/53-week fiscal year. Fiscal 2020 was a 53-week year and included one additional week of sales in the fourth quarter of 2020 compared to Fiscal 2021.

Doug Hekking, Chief Financial Officer, said, “Our record second quarter results, highlighted by robust sales and earnings-per-share growth, were in-line with management’s expectations and were driven, in large part, by the sales program offered during the quarter. A similar sales program was offered during the third quarter of 2020, which was also very successful. Note that the timing of the 2020 sales program, as well as the additional week of sales in the fourth quarter of 2020, create a challenging comparable for us in the back half of 2021. Nevertheless, we continue to believe that 2021 will be another record year for USANA.”


Management Commentary Document and Conference Call

For more information on the USANA’s operating results, please see the Management Commentary document, which has been posted on the Company’s website (http://ir.usana.com) under the Investor Relations section. USANA’s management team will hold a conference call and webcast to discuss today’s announcement with investors on Wednesday, July 28, 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, followed by a questions and answers session.

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
Six Months Ended


3-Jul-21
27-Jun-20
3-Jul-21
27-Jun-20








 
Net sales

$

336,837


$

258,991


$

644,813


$

525,610

Cost of sales

 

57,014


 

47,674


 

114,665


 

93,733

Gross profit

 

279,823


 

211,317


 

530,148


 

431,877









 
Operating expenses







Associate incentives

 

153,863


 

110,852


 

288,358


 

226,921

Selling, general and administrative

 

72,240


 

60,879


 

143,873


 

126,358









 
Earnings from operations

 

53,720


 

39,586


 

97,917


 

78,598









 
Other income (expense)

 

590


 

393


 

729


 

544

Earnings before income taxes

 

54,310


 

39,979


 

98,646


 

79,142









 
Income taxes

 

16,076


 

12,002


 

29,791


 

24,613









 
NET EARNINGS

$

38,234


$

27,977


$

68,855


$

54,529









 








 
Earnings per share - diluted

$

1.87


$

1.32


$

3.31


$

2.56

Weighted average shares outstanding - diluted

 

20,446


 

21,129


 

20,771


 

21,340


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




 


As of
As of
ASSETS
3-Jul-21
2-Jan-21
Current Assets



Cash and cash equivalents

$

265,368


$

311,917

Inventories

 

89,587


 

90,224

Prepaid expenses and other current assets

 

26,551


 

23,145

Total current assets

 

381,506


 

425,286





 
Property and equipment, net

 

97,849


 

100,445

Goodwill

 

17,467


 

17,367

Intangible assets, net

 

30,489


 

30,796

Deferred income taxes

 

5,486


 

4,640

Other assets

 

58,652


 

62,353

Total assets

$

591,449


$

640,887





 




 
LIABILITIES AND STOCKHOLDERS' EQUITY



Current Liabilities



Accounts payable

$

13,144


$

18,195

Other current liabilities

 

139,856


 

149,878

Total current liabilities

 

153,000


 

168,073





 
Deferred income taxes

 

4,806


 

12,009

Other long-term liabilities

 

15,020


 

19,155





 
Stockholders' equity

 

418,623


 

441,650

Total liabilities and stockholders' equity

$

591,449


$

640,887


USANA Health Sciences, Inc.

Sales by Region

(unaudited)

(in thousands)










 

Quarter Ended








July 3, 2021


June 27, 2020


Change from prior

year


Currency

impact on

sales


% change

excluding

currency

impact
















 
Asia Pacific














Greater China

$

165,416


49.1%


$

124,001


47.9%


$

41,415


33.4%


$

13,459


22.5%

Southeast Asia Pacific

 

76,101


22.6%


 

59,459


22.9%


 

16,642


28.0%


 

5,225


19.2%

North Asia

 

37,438


11.1%


 

25,852


10.0%


 

11,586


44.8%


 

2,906


33.6%

Asia Pacific Total

 

278,955


82.8%


 

209,312


80.8%


 

69,643


33.3%


 

21,590


23.0%
















 
Americas and Europe

 

57,882


17.2%


 

49,679


19.2%


 

8,203


16.5%


 

3,610


9.2%
















 

$

336,837


100.0%


$

258,991


100.0%


$

77,846


30.1%


$

25,200


20.3%
















 















 
Active Associates by Region(1)







(unaudited)






















 

As of








July 3, 2021
June 27, 2020


















 
Asia Pacific














Greater China

 

88,000


29.3%


 

93,000


32.3%









Southeast Asia Pacific

 

104,000


34.7%


 

94,000


32.6%









North Asia

 

42,000


14.0%


 

37,000


12.9%









Asia Pacific Total

 

234,000


78.0%


 

224,000


77.8%
























 
Americas and Europe

 

66,000


22.0%


 

64,000


22.2%
























 

 

300,000


100.0%


 

288,000


100.0%
























 
Active Preferred Customers by Region (2)







(unaudited)






















 

As of








July 3, 2021
June 27, 2020







Asia Pacific














Greater China

 

215,000


61.1%


 

185,000


59.5%









Southeast Asia Pacific

 

40,000


11.4%


 

35,000


11.3%









North Asia

 

24,000


6.8%


 

19,000


6.1%









Asia Pacific Total

 

279,000


79.3%


 

239,000


76.9%
























 
Americas and Europe

 

73,000


20.7%


 

72,000


23.1%
























 

 

352,000


100.0%


 

311,000


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

Investor 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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