Nu Skin Enterprises Reports Fourth Quarter and 2021 Financial Results

Nu Skin Enterprises Reports Fourth Quarter and 2021 Financial Results

 

Company provides initial 2022 outlook and introduces Nu Vision 2025

 

PROVO, Utah — Feb. 16, 2022 — Nu Skin Enterprises, Inc. (NYSE: NUS) today announced fourth quarter and 2021 results.

 

Executive Summary

Q4 2021 vs. Prior-year Quarter

Revenue:

$673.4 million; (10)%

·       (2)% fx impact or $(11.9) million

Earnings Per Share (EPS):

$(0.18) or $1.11 excluding restructuring and impairment charges, compared to $1.40 in Q4 2020

Sales Leaders:

61,515; (13)% or 12% compared to 2019

Customers:

1,367,559; (12)% or 18% compared to 2019

               

2021 Annual vs. 2020

Revenue:

$2.70 billion; +4%

·       2% fx impact or $66.5 million

Earnings Per Share (EPS):

$2.86 or $4.14 excluding restructuring and impairment charges, compared to $3.63 in 2020, or $3.10 in 2019

·       (21)% or 14% excluding restructuring and impairment charges

·       (8)% or 34% excluding restructuring and impairment charges compared to 2019

               

“For the year, we are encouraged with 4 percent year-over-year revenue growth and 11 percent growth compared to 2019, particularly considering the many COVID-related government restrictions, continued global uncertainty and ongoing transformation of our business,” said Ryan Napierski, Nu Skin president and CEO. “We generated strong demand for our two most recent products, Beauty Focus™ Collagen+ and ageLOC® Meta, as both performed well during the quarter. Our U.S. business grew 32 percent for the year on top of 37 percent in 2020, due in large part to ongoing adoption of our social selling model. Many of our Asian markets, including Mainland China, continue to be impacted by strict lockdowns and restrictions on in-person sales events and promotional activities. However, South Korea is gaining some traction with social commerce and grew 9 percent due to the ageLOC Meta preview and continued demand for our TR90 weight management product.

 

“Looking ahead to 2022, we anticipate another year of growth as we continue our transformation toward becoming the world’s leading integrated beauty and wellness company, powered by our dynamic affiliate opportunity platform. Our Nu Vision 2025 strategy, which we will introduce at our investor event later today, encompasses several key strategic imperatives to accelerate growth, including: our EmpowerMe personalized beauty and wellness strategy with connected beauty devices; our affiliate-powered social commerce business model; and the expansion of our digital platform. We are confident in our plans as we work toward achieving our vision for the future.”

 

Q4 2021 Year-over-year Operating Results               

Revenue:

$673.4 million compared to $748.2 million

·       (2)% fx impact

Gross Margin:

74.2% or 75.2% excluding restructuring and impairment charges compared to 74.0%

·       Nu Skin business was 77.9% compared to 76.5%

Selling Expenses:

38.7% compared to 38.0%

·       Nu Skin business was 41.0% compared to 40.3%

G&A Expenses:

24.7% compared to 24.1%

Operating Margin:

3.0% or 11.7% excluding restructuring and impairment charges compared to 11.9%

Other Income / (Expense):

$(1.9) million compared to $2.7 million

Income Tax Rate:

150.1% or 26.9% excluding restructuring and impairment charges, compared to 19.6%

EPS:

$(0.18) or $1.11 excluding restructuring and impairment charges, compared to $1.40


Stockholder Value

Dividend Payments:

$18.9 million

Stock Repurchases:

$10.0 million

·       $245.4 million remaining in authorization

 

 

Q1 and Full-year 2022 Outlook

Q1 2022 Revenue:

$560 to $590 million; (13) to (17)%

·       Approximately (2) to (3)% fx impact

Q1 2022 EPS:

$0.65 to $0.75; (18) to (28)%

2022 Revenue:

$2.66 to $2.77 billion; (1) to 3%

·       Approximately (1) to (2)% fx impact

2022 EPS:

$4.05 to $4.45; +42 to 56% on a reported basis, or (2) to 8% non-GAAP

“We are especially pleased with our adjusted earnings per share of $4.14 for the year and $1.11 for the quarter, driven by gross margin and operational improvements. Full year adjusted EPS results represent annual growth of 14 percent versus 2020 or 34 percent compared to 2019,” added Mark Lawrence, chief financial officer. “During the quarter, we elected to exit our Grow Tech business and re-focus those resources on key strategic initiatives and growth objectives in our core business. We took a one-time pre-tax charge of $58.5 million and anticipate that substantially all the non-cash charges were incurred in the fourth quarter of 2021. As a result of these charges, our reported earnings per share was $2.86 for the year and $(0.18) for the quarter. Our 2022 outlook indicates that we plan to re-invest the bulk of the savings from the exit into technology that will further support our affiliates and drive long-term growth.

 

“Our 2022 revenue guidance is $2.66 to $2.77 billion with EPS of $4.05 to $4.45. First quarter projected revenue is $560 to $590 million with EPS of $0.65 to $0.75. Although our near-term guidance continues to be impacted by global uncertainty, we believe our strategic initiatives will enable stronger growth in the second half. We remain committed to driving operational improvements along the way toward our stated mid-term 13 percent operating income target,” concluded Lawrence.

 

Investor Day 

The Nu Skin Enterprises management team will host an investor day event today at noon (ET). To tune in to the webcast and view supplemental materials, visit Nu Skin’s investor relations page at ir.nuskin.com when the event begins. A replay of the event, along with supplemental materials, will be available on the same page through March 2, 2022. 

 

 

About Nu Skin Enterprises, Inc.

Nu Skin Enterprises, Inc. (NYSE: NUS) is a leading beauty and wellness company, powered by a dynamic affiliate opportunity platform. The company helps people live, look and feel their best with products that combine the best of science, technology and nature. Backed by more than 35 years of scientific research, Nu Skin develops innovative products including Nu Skin® personal care, Pharmanex® nutrition and the ageLOC® anti-aging brand which includes an award-winning line of beauty device systems. Nu Skin operates in approximately 50 markets worldwide in the Americas, Asia, Europe, Africa and the Pacific. Rhyz Inc. is the company’s strategic investment arm that includes a collection of technology and manufacturing companies to support growth in the core Nu Skin business. Nu Skin is committed to sustainability, including global initiatives such as transitioning to reduced and sustainable packaging for all products by 2030. The Nu Skin Force for Good Foundation also strives to improve children’s health, education and economic circumstances throughout the world. For more information, visit nuskin.com.

 

Important Information Regarding Forward-Looking Statements: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that represent the company’s current expectations and beliefs. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws and include, but are not limited to, statements of management’s expectations regarding the company’s performance, growth, shareholder value, vision, transformation, initiatives, product pipeline and product introductions, digital tools, customers and sales leaders, affiliates, strategies and initiatives; operational improvements, projections regarding revenue, expenses, operating income, earnings per share, foreign currency fluctuations, uses of cash and other financial items; statements of belief; and statements of assumptions underlying any of the foregoing. In some cases, you can identify these statements by forward-looking words such as “believe,” “expect,” “anticipate,” “project,” “outlook,” “guidance,” “remain,” “become,” “plan,” “opportunity,” “expand,” “will,” “would,” “could,” “may,” “might,” the negative of these words and other similar words.

 

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:

·       risk that epidemics, including the ongoing COVID-19 pandemic, and other crises could negatively impact our business;

·       adverse publicity related to the company’s business, products, industry or any legal actions or complaints by the company’s sales force or others;

·       risk that direct selling laws and regulations in any of the company’s markets, including the United States and Mainland China, may be modified, interpreted or enforced in a manner that results in negative changes to the company’s business model or negatively impacts its revenue, sales force or business, including through the interruption of sales activities, loss of licenses, increased scrutiny of sales force actions, imposition of fines, or any other adverse actions or events;

·       any failure of current or planned initiatives or products to generate interest among the company’s sales force and customers and generate sponsoring and selling activities on a sustained basis;

·       political, legal, tax and regulatory uncertainties associated with operating in international markets, including Mainland China;

·       uncertainty regarding meeting restrictions and other government scrutiny in Mainland China, as well as negative media and consumer sentiment in Mainland China on our business operations and results;

·       risk of foreign-currency fluctuations and the currency translation impact on the company’s business associated with these fluctuations;

·       uncertainties regarding the future financial performance of the businesses the company has acquired;

·       risks related to accurately predicting, delivering or maintaining sufficient quantities of products to support planned initiatives or launch strategies, and increased risk of inventory write-offs if the company over-forecasts demand for a product or changes its planned initiatives or launch strategies;

·       regulatory risks associated with the company’s products, which could require the company to modify its claims or inhibit its ability to import or continue selling a product in a market if the product is determined to be a medical device or if the company is unable to register the product in a timely manner under applicable regulatory requirements;

·       unpredictable economic conditions and events globally, including trade policies and tariffs;

·       the company’s future tax-planning initiatives; 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

·       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.
The following table sets forth revenue for the three-month periods ended December 31, 2021 and 2020 for each of our reportable segments (U.S. dollars in thousands):

 

Three Months Ended

December 31,

 

 

 

Constant-

Currency

 

2021

 

2020

 

Change

 

Change

Nu Skin

                     

Mainland China

$

130,708

 

$

172,442

 

 

(24)%

 

 

(26)%

Americas

 

144,000

 

 

140,586

 

 

2%

 

 

4%

South Korea

 

92,528

 

 

90,384

 

 

2%

 

 

8%

Southeast Asia/Pacific

 

90,313

 

 

99,589

 

 

(9)%

 

 

(8)%

EMEA

 

68,066

 

 

82,656

 

 

(18)%

 

 

(14)%

Japan

 

63,215

 

 

73,132

 

 

(14)%

 

 

(6)%

Hong Kong/Taiwan

 

47,816

 

 

45,864

 

 

4%

 

 

3%

Nu Skin other

 

(801)

 

 

(391)

 

 

(105)%

 

 

(105)%

Total Nu Skin

 

635,845

   

704,262

   

(10)%

   

(8)%

Rhyz Investments

                     

Manufacturing

 

36,360

   

43,364

   

(16)%

   

(16)%

Grow Tech

 

957

   

567

   

69%

   

69%

Rhyz other

 

274

   

           

Total Rhyz Investments

 

37,591

   

43,931

   

(14)%

   

(14)%

Total

$

673,436

 

$

748,193

 

 

(10)%

 

 

(8)%

The following table sets forth revenue for the years ended December 31, 2021 and 2020 for each of our reportable segments (U.S. dollars in thousands):

 

Year Ended

December 31,

 

 

 

Constant-

Currency

 

2021

 

2020

 

Change

 

Change

Nu Skin

                     

Mainland China

$

568,774

 

$

625,538

 

 

(9)%

 

 

(15)%

Americas

 

547,755

 

 

453,022

 

 

21%

 

 

20%

South Korea

 

354,252

 

 

326,478

 

 

9%

 

 

6%

Southeast Asia/Pacific

 

336,651

 

 

361,627

 

 

(7)%

 

 

(9)%

EMEA

 

283,200

 

 

230,246

 

 

23%

 

 

18%

Japan

 

266,216

 

 

273,681

 

 

(3)%

 

 

Hong Kong/Taiwan

 

162,611

 

 

161,117

 

 

1%

 

 

(2)%

Nu Skin other

 

1,549

 

 

(17)

 

 

9,212%

 

 

9,212%

Total Nu Skin

 

2,521,008

   

2,431,692

   

4%

   

1%

Rhyz Investments

                     

Manufacturing

 

172,120

   

149,339

   

15%

   

15%

Grow Tech

 

2,104

   

903

   

133%

   

133%

Rhyz other

 

437

   

           

Total Rhyz Investments

 

174,661

   

150,242

   

16%

   

16%

Total

$

2,695,669

 

$

2,581,934

 

 

4%

 

 

2%

The company's Customers and Sales Leaders statistics by segment as of December 31, 2021 and 2020 are presented in the following table:

 

2021

 

2020

 

% Increase (Decrease)

 

Customers

 

Sales Leaders

 

Customers

 

Sales Leaders

 

Customers

 

Sales Leaders

Mainland China

 

315,418

 

 

17,658

 

 

381,460

 

 

21,990

 

 

(17)%

 

 

(20)%

Americas

 

336,564

 

 

10,340

 

 

366,688

 

 

12,754

 

 

(8)%

 

 

(19)%

South Korea

 

146,354

 

 

7,108

 

 

158,953

 

 

7,059

 

 

(8)%

 

 

1%

Southeast Asia/Pacific

 

169,601

 

 

10,386

 

 

192,622

 

 

10,588

 

 

(12)%

 

 

(2)%

EMEA

 

210,414

 

 

6,124

 

 

258,587

 

 

7,063

 

 

(19)%

 

 

(13)%

Japan

 

122,813

 

 

5,872

 

 

128,400

 

 

6,318

 

 

(4)%

 

 

(7)%

Hong Kong/Taiwan

 

66,395

 

 

4,027

 

 

70,592

 

 

4,663

 

 

(6)%

 

 

(14)%

Total

 

1,367,559

 

 

61,515

 

 

1,557,302

 

 

70,435

 

 

(12)%

 

 

(13)%

“Customers” are persons who purchased products directly from the company during the previous three months. Our Customer numbers do not include consumers who purchase products directly from members of our sales force.


“Sales Leaders” are independent distributors, and sales employees and independent marketers in China, who achieve certain qualification requirements.

 

 

NU SKIN ENTERPRISES, INC.

Consolidated Statements of Income (Unaudited)

(U.S. dollars in thousands, except per share amounts)

 

Three Months Ended

December 31,

 

 Years Ended

December 31,

 

2021

 

2020

 

2021

 

2020

                       

Revenue

$

673,436

 

$

748,193

 

$

2,695,669

 

$

2,581,934

Cost of sales

 

173,775

 

 

194,751

 

 

675,223

 

 

658,028

Gross profit

 

499,661

 

 

553,442

 

 

2,020,446

 

 

1,923,906

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Selling expenses

 

260,831

 

 

284,129

 

 

1,068,189

 

 

1,019,494

General and administrative expenses

 

166,641

 

 

180,616

 

 

666,395

 

 

646,848

Restructuring and impairment expenses

 

51,870

 

 

 

 

51,870

 

 

Total operating expenses

 

479,342

 

 

464,745

 

 

1,786,454

 

 

1,666,342

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

20,319

 

 

88,697

 

 

233,992

 

 

257,564

Other income (expense), net

 

(1,883)

 

 

2,736

 

 

(1,533)

 

 

(1,332)

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

18,436

 

 

91,433

 

 

232,459

 

 

256,232

Provision for income taxes

 

27,666

 

 

17,966

 

 

85,193

 

 

64,877

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

(9,230)

 

$

73,467

 

$

147,266

 

$

191,355

 

 

 

 

 

 

 

 

 

 

 

 

Net income per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

(0.19)

 

$

1.44

 

$

2.93

 

$

3.66

Diluted

$

(0.18)

 

$

1.40

 

$

2.86

 

$

3.63

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding (000s):

 

 

 

 

 

 

 

 

 

 

 

Basic

 

49,862

 

 

50,971

 

 

50,193

 

 

52,296

Diluted

 

50,801

 

 

52,403

 

 

51,427

 

 

52,765

 

NU SKIN ENTERPRISES, INC.

Consolidated Balance Sheets (Unaudited)

(U.S. dollars in thousands)

 

December 31, 2021

 

December 31, 2020

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

339,593

 

$

402,683

Current investments

 

15,221

 

 

21,216

Accounts receivable, net

 

41,299

 

 

63,370

Inventories, net

 

399,931

 

 

314,366

Prepaid expenses and other

 

76,906

 

 

101,563

 Total current assets

 

872,950

 

 

903,198

 

 

 

 

 

 

Property and equipment, net

 

453,674

 

 

468,181

Operating lease right-of-use assets

 

120,973

   

155,104

Goodwill

 

206,432

 

 

202,979

Other intangible assets, net

 

76,991

 

 

89,532

Other assets

 

175,460

 

 

138,082

Total assets

$

1,906,480

 

$

1,957,076

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

49,993

 

$

66,174

Accrued expenses

 

372,201

 

 

446,682

Current portion of long-term debt

 

107,500

 

 

30,000

 Total current liabilities

 

529,694

 

 

542,856

 

 

 

     

Operating lease liabilities

 

88,759

 

 

112,275

Long-term debt

 

268,781

 

 

305,393

Other liabilities

 

106,474

 

 

102,281

Total liabilities

 

993,708

 

 

1,062,805

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Class A common stock – 500 million shares authorized, $0.001 par value, 90.6 million shares issued

 

91

 

 

91

Additional paid-in capital

 

601,703

 

 

579,801

Treasury stock, at cost – 40.7 million and 39.7 million shares

 

(1,526,860)

 

 

(1,461,593)

Accumulated other comprehensive loss

 

(73,896)

 

 

(64,768)

Retained earnings

 

1,911,734

 

 

1,840,740

Total stockholders' equity

 

912,772

 

 

894,271

Total liabilities and stockholders’ equity

$

1,906,480

 

$

1,957,076

Non-GAAP Financial Measures: Constant-currency revenue change is a non-GAAP financial measure that removes the impact of fluctuations in foreign-currency exchange rates, thereby facilitating period-to-period comparisons of the company’s performance. It is calculated by translating the current period’s revenue at the same average exchange rates in effect during the applicable prior-year period and then comparing that amount to the prior-year period’s revenue. The company believes that constant-currency revenue change is useful to investors, lenders and analysts because such information enables them to gauge the impact of foreign-currency fluctuations on the company’s revenue from period to period.

 

Gross margin, operating margin, income tax rate, earnings per share and adjusted earnings per share growth, each excluding impairment and restructuring charges, also are non-GAAP financial measures. Impairment and restructuring charges are not part of the ongoing operations of our underlying business. The company believes that these non-GAAP financial measures are useful to investors, lenders and analysts because removing the impact of impairment and restructuring charges facilitates period-to-period comparisons of the company’s performance. Please see the reconciliations of these items to our gross margin, operating margin, income tax rate, earnings per share and earnings per share growth calculated under GAAP, below.

NU SKIN ENTERPRISES, INC.

Reconciliation of Earnings Per Share Excluding Impact of Restructuring and Impairment to GAAP Earnings Per Share

(in thousands, except per share amounts)

 

Three Months Ended

 

Years Ended

 

December 31,

 

December 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Net income

$    (9,230)

 

$     73,467

 

$   147,266

 

$    191,335

Impact of restructuring and impairment:

 

 

 

 

 

 

 

       Restructuring and impairment

      51,870

 

         —

 

       51,870

 

                —

    Inventory write-off

       6,656

 

               —

 

        6,656

 

                —

       Income tax impact

        6,933

 

            —

 

        6,933

 

                —

Adjusted net income

$   56,229

 

$     73,467

 

$   212,725

 

$   191,335

 

 

 

 

 

 

 

 

Diluted earnings per share

$       (0.18)

 

$          1.40

 

$        2.86

 

$         3.63

Diluted earnings per share, excluding restructuring and impairment impact

$           1.11

 

$          1.40

 

$          4.14

 

$         3.63

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding (000s):

50,801

 

52,403

 

51,427

 

 

52,765

 

 

 

 

 

 

 

 

 

NU SKIN ENTERPRISES, INC.

Reconciliation of Earnings Per Share Growth Rate Excluding Impact of Restructuring and Impairment to GAAP Earnings Per Share

(in thousands, except per share amounts)

 

 

Years Ended

 

 

December 31,

 

 

2021

 

2020

 

2019

 

 

 

 

 

 

 

Net income

 

$    147,266

 

$     191,335

 

$       173,553

Impact of restructuring and impairment:

 

 

 

 

 

 

       Restructuring and impairment

 

        51,870

 

                —

 

                —

    Inventory write-off

 

        6,656

 

                —

 

                —

       Income tax impact

 

         6,933

 

               —

 

                 —

Adjusted net income

 

$   212,725

 

$     191,335

 

$      173,553

 

 

 

 

 

 

 

Diluted earnings per share

 

$         2.86

 

$         3.63

 

$            3.10

Diluted earnings per share, excluding restructuring and impairment impact

 

$          4.14

 

$         3.63

 

$            3.10

 

 

 

 

 

 

 

Weighted-average common shares outstanding (000s):

 

51,427

 

 

52,765

 

 

55,927

 

 

 

 

 

 

 

 

2021 annual growth rate

 

 

 

 

 

 

Earnings per share, growth rate

 

(21)%

 

 

 

 

Earnings per share, growth rate, excluding restructuring and impairment impact

 

14%

 

 

 

 

 

 

 

 

 

2021 growth over 2019

 

 

 

 

 

Earnings per share, growth rate

 

(8)%

 

 

 

 

Earnings per share, growth rate, excluding restructuring and impairment impact

 

34%

 

 

 

 

 

NU SKIN ENTERPRISES, INC.

Reconciliation of Gross Margin Excluding Impact of Restructuring and Impairment to GAAP Gross Margin

(in thousands, except per share amounts)

 

Three Months Ended

 

Years Ended

 

December 31,

 

December 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Gross Profit

$  499,661

 

$  553,442

 

$2,020,446

 

$1,923,906

Impact of restructuring and impairment:

 

 

 

 

 

 

 

    Inventory write-off

       6,656

 

               —

 

         6,656

 

                —

Adjusted Gross Profit

$  506,317

 

$  553,442

 

$ 2,027,102

 

$1,923,906

 

 

 

 

 

 

 

 

Gross margin

             74.2%

 

            74.0%

 

               75.0%

 

              74.5%

Gross margin, excluding restructuring and impairment impact

             75.2%

 

            74.0%

 

              75.2%

 

              74.5%

 

 

 

 

 

 

 

 

Revenue

$ 673,436

 

$    748,193

 

$2,695,669

 

$ 2,581,934

 

NU SKIN ENTERPRISES, INC.

Reconciliation of Operating Margin Excluding Impact of Restructuring to GAAP Operating Margin

(in thousands, except per share amounts)

 

Three Months Ended

 

Years Ended

 

December 31,

 

December 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Operating income

$    20,319

 

$    88,697

 

$   233,992

 

$   257,564

Impact of restructuring and impairment:

 

 

 

 

 

 

 

       Restructuring and impairment

      51,870

 

               —

 

        51,870

 

                —

    Inventory write-off

       6,656

 

              —

 

         6,656

 

                —

Adjusted operating income

$   78,845

 

$    88,697

 

$    292,518

 

$   257,564

 

 

 

 

 

 

 

 

Operating margin

         3.0%

 

          11.9%

 

            8.7%

 

         10.0%

Operating margin, excluding restructuring and impairment impact

         11.7%

 

         11.9%

 

          10.9%

 

         10.0%

 

 

 

 

 

 

 

 

Revenue

$ 673,436

 

$   748,193

 

$2,695,669

 

$ 2,581,934

 

 

NU SKIN ENTERPRISES, INC.

Reconciliation of Effective Tax Rate Excluding Impact of Restructuring to GAAP Effective Tax Rate

(in thousands, except per share amounts)

 

Three Months Ended

 

Years Ended

 

December 31,

 

December 31,

 

2021

 

2020

 

2021

 

2020

 

 

 

 

 

 

 

 

Provision for income taxes

$    27,666

 

$      17,966

 

$     85,193

 

$     64,877

Impact of restructuring on tax provision

   (6,933)   

 

               —

 

       (6,933)

 

                —

Provision for income taxes, excluding impact of restructuring

$    20,733

 

$      17,966

 

$    78,260

 

$     64,877

 

 

 

 

 

 

 

 

Income before provision for income taxes

$    18,436

 

$     91,433

 

$  232,459

 

$  256,232

Impact of restructuring and impairment:

 

 

 

 

 

 

 

       Restructuring and impairment

       51,870

 

               —

 

        51,870

 

                —

       Inventory write-off

       6,656

 

               —

 

        6,656

 

                —

Income before provision for income taxes, excluding restructuring and impairment impact

$   76,962

 

$     91,433

 

$  290,985

 

$  256,232

 

 

 

 

 

 

 

 

Effective tax rate

       150.1%

 

         19.6%

 

        36.6%

 

         25.3%

Effective tax rate, excluding restructuring and impairment impact

       26.9%

 

         19.6%

 

        26.9%

 

         25.3%

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