USANA Announces Record Second Quarter 2012 Results
Net sales for the second quarter of 2012 increased by 8.0% to $160.9 million, compared with $148.9 million in the prior-year period. The growth in net sales was driven by increases in both the Company's Asia Pacific and North America & Europe regions. Changes in currency exchange rates reduced net sales by $2.7 million.
Net earnings for the second quarter increased to $16.7 million, an increase of 20.9%, compared with the prior-year period. This increase was due primarily to higher net sales, improved gross margins, lower relative Associate incentive expense, and a lower effective tax rate. Earnings per share for the quarter increased 26.1% to $1.11, compared with $0.88 in the second quarter of the prior year. This improvement in earnings per share resulted from higher net earnings and a lower number of diluted shares outstanding, resulting from the Company's share repurchases over the last 12 months.
"USANA delivered solid second quarter results, which capped a very impressive first half of 2012," said Mr. Dave Wentz, Chief Executive Officer. "During the quarter, we continued to see momentum in our business build due, in part, to our successful launch of a new component to our Associate compensation plan. This component, which is known as our Lifetime Matching Bonus, was very well received by our Associates worldwide. Along with the introduction of the Lifetime Matching Bonus, we ran a short-term sales promotion that also contributed to our positive results during the quarter."
The Company continued its successful track record of generating meaningful levels of cash from operations and ended the quarter with approximately $65.5 million in cash and cash equivalents. Cash generated from operations totaled $21.3 million for the quarter. During the quarter, the Company invested $26.6 million to repurchase 677,000 shares of the Company's stock.
The Company provided the following updated financial outlook for 2012:
-- Consolidated net sales between $630 million and $640 million, versus the previous outlook of between $610 million and $625 million.
-- Earnings per share between $4.10 and $4.20, versus the previous outlook of between $3.60 and $3.70.
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