LEHI, Utah, Nov. 2, 2012 (GLOBE NEWSWIRE) -- Nature's Sunshine Products, Inc. (Nasdaq:NATR), a leading natural health and wellness company engaged in the manufacture and direct selling of nutritional and personal care products, today reported its consolidated financial results for the third quarter ended September 30, 2012, and declared a quarterly cash dividend.

For the Third Quarter of 2012:

• Net sales were $91.2 million, compared with $91.1 million in the same quarter a year ago, an increase of 0.1 percent; however, net sales increased 2.1 percent in local currencies.
   
• As of September 30, 2012, active Managers worldwide were 28,700, an increase of 1.8 percent from September 30, 2011, while active Distributors and customers worldwide were 656,800, a decrease of 3.7 percent from the end of the quarter a year ago.
   
• Operating income was $8.7 million, compared with an operating loss of $5.1 million and pro forma operating income from continuing operations of $9.6 million (excluding contract termination costs) in the same quarter a year ago, a decrease of 9.7 percent year over year.
   
• Adjusted EBITDA, defined here as net income before taxes, depreciation and amortization, and other income, and adjusted to exclude share-based compensation expense and contract termination costs, was $10.4 million, compared with $11.5 million in the same quarter a year ago, a decrease of 9.6 percent.
   
• Net income was $6.4 million, compared with a net loss of $2.3 million and pro forma net income of $6.8 million (excluding contract termination costs) in the same quarter a year ago, a decrease of 6.3 percent year over year. 
   
• Basic and diluted net income per share was $0.41 and $0.40, respectively, compared with basic and diluted net loss per share of $0.14, for the same quarter a year ago.
   
• As of September 30, 2012, shareholders' equity was $111.8 million, compared to $87.4 million on December 31, 2011, an increase of 27.9 percent.

For the First Nine Months of 2012:

• Net sales were $277.1 million, compared with $275.8 million in the same period a year ago, an increase of 0.5 percent; however, net sales increased 2.0 percent in local currencies.
   
• Operating income was $28.2 million, compared with $10.6 million and pro forma operating income of $25.3 million (excluding contract termination costs) in the same period a year ago, an increase of 11.3 percent year over year.
   
• Adjusted EBITDA, defined here as net income before taxes, depreciation and amortization, and other income, and adjusted to exclude share-based compensation expense and contract termination costs, was $33.2 million, compared with $30.4 million in the same period a year ago, an increase of 9.1 percent.
   
• Net income was $20.9 million, compared with net income of $10.0 million and pro forma net income of $19.0 million (excluding contract termination costs) in the same period a year ago, an increase of 9.9 percent year over year.
   
• Basic and diluted net income per share was $1.34 and $1.31, respectively, compared with basic and diluted net income per share of $0.64, for the same period a year ago.

NSP United States Segment Results for the Third Quarter:

• Net sales were $33.7 million, compared with $33.5 million in the same quarter a year ago, an increase of 0.5 percent. Net sales for NSP United States core products (herbal products, vitamin, mineral, and other nutritional supplements, and personal care products) increased by 1.0%, but were partially offset by the discontinuance of non-core products (other products including essential oils, sales aids and other miscellaneous products). Active Managers within NSP United States totaled approximately 5,300 and 5,600 at September 30, 2012 and 2011, respectively. Active Distributors and customers within NSP United States totaled approximately 191,500 and 210,300 at September 30, 2012 and 2011, respectively. Managers and Distributors within NSP United States are predominantly practitioners of nutritional supplement therapies and retailers or consumers of our products. The number of active Managers, Distributors and customers decreased due to lower retention, partially offset by a modest improvement in recruiting.
   
• Operating income was $2.7 million, compared with $2.3 million in the same quarter a year ago, an increase of 15.0 percent. The increase in operating income is primarily the result of the increase in net sales revenue as well as a decrease of professional fees expense partially offset by increases in cost of goods sold and other selling, general, and administrative expenses related to promotional incentive trips and employee compensation costs.

NSP International Segment Results for the Second Quarter:

• Net sales were $31.3 million, compared with $33.1 million in the same quarter a year ago, a decrease of 5.4 percent. In local currencies, net sales decreased by 4.4 percent compared to the same quarter a year ago. Active Managers within NSP International totaled approximately 20,200 and 20,000 at September 30, 2012 and 2011, respectively. Active Distributors and customers within NSP International totaled approximately 376,200 and 387,000 at September 30, 2012 and 2011, respectively. Managers and Distributors within NSP International are predominantly practitioners of nutritional supplement therapies and retailers or consumers of our products, with the exception of our Russian markets, which are more network marketing oriented. The number of active Distributors and customers decreased in NSP International due to lower retention in a small number of markets, partially offset by a modest improvement in recruiting.
   
• Operating income was $3.5 million, compared with an operating loss of $10.1 million and pro forma operating income of $4.6 million (excluding contract termination costs) in the same quarter a year ago, a decrease of 26.0 percent. This decrease was primarily the result of lower net sales in our Japan, Mexico and Peru markets.

Synergy WorldWide Segment Results for the Second Quarter:

• Synergy WorldWide, a wholly-owned subsidiary of Nature's Sunshine Product, Inc., reported net sales of $26.3 million, compared with $24.5 million in the same quarter a year ago, an increase of 7.1 percent. In local currencies, net sales increased 13.1 percent compared to the same quarter a year ago. Active Managers within Synergy Worldwide totaled approximately 3,200 and 2,600 at September 30, 2012 and 2011, respectively. Active Distributors and customers within Synergy Worldwide totaled approximately 89,100 and 85,000 at September 30, 2012 and 2011, respectively. Synergy Worldwide is more network-marketing oriented, and the increase in net sales was primarily due to strong recruiting and retention of Managers and Distributors in our Korean and European markets.
   
• Operating income was $2.6 million, essentially unchanged from the same quarter in the prior year.

Effective Income-tax Rate

The effective income tax rate was 25.0 percent, compared with (42.2) percent in the same quarter a year ago. The current quarter's effective income tax rate was below the U.S. federal statutory tax rate of 35.0 percent, which was primarily attributed to a valuation allowance release related to the utilization of foreign tax credits, in addition to net favorable foreign items. The effective income tax rate of (42.2) percent for the same quarter a year ago was below the U.S. federal statutory tax rate of 35.0 percent, which was primarily attributed to contract termination costs, as well as net favorable foreign items.

Declaration of Quarterly Cash Dividend:

The Company's Board of Directors declared a regular quarterly cash dividend of $0.05 per share, or $0.20 per share on an annual basis, payable on November 26, 2012 to shareholders of record as of the close of business on November 15, 2012.

Non-GAAP Financial Measures

The Company has included information concerning adjusted EBITDA because management utilizes this information in the evaluation of its operations and believes that this measure is a useful indicator of the Company's ability to fund its business. Adjusted EBITDA has not been prepared in accordance with generally accepted accounting principles (GAAP). This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, net income as an indicator of the Company's operating performance. Moreover, this non-GAAP financial measure, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. The Company has included a reconciliation of adjusted EBITDA to reported earnings under GAAP in the attached financial tables.

About Nature's Sunshine Products

Nature's Sunshine Products (Nasdaq:NATR), a leading natural health and wellness company, markets and distributes nutritional and personal care products through a global direct sales force of over 600,000 independent distributors in more than 40 countries. Nature's Sunshine manufactures its products through its own state-of-the-art facilities to ensure its products continue to set the standard for the highest quality, safety and efficacy on the market today. The Company has two reportable business segments that operate under the Nature's Sunshine Products brand and are divided based on their geographic operations in the United States (NSP United States) and in countries outside the United States (NSP International), as well as a third reportable business segment operates under the Synergy WorldWide brand. The Company also supports health and wellness for children around the world through its partnership with the Little Heroes Foundation. Additional information about the Company can be obtained at its website, http://www.natr.com/">www.natr.com.

Cautionary Statement Regarding Forward-Looking Statements

In addition to historical information, this release contains forward-looking statements. Nature's Sunshine may, from time to time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements encompass Nature's Sunshine's beliefs, expectations, hopes, or intentions regarding future events. Words such as "expects," "intends," "believes," "anticipates," "should," "likely," and similar expressions identify forward-looking statements. All forward-looking statements included in this release are made as of the date hereof and are based on information available to the Company as of such date. Nature's Sunshine assumes no obligation to update any forward-looking statement. Actual results will vary, and may vary materially, from those anticipated, estimated, projected or expected for a number of reasons, including, among others: further reviews of the Company's financial statements by the Company and its Audit Committee; modification of the Company's accounting practices; foreign business risks; industry cyclicality; fluctuations in customer demand and order pattern; changes in pricing and general economic conditions; as well as other risks detailed in the Company's previous filings with the SEC.

Stephen M. Bunker
Chief Financial Officer
Nature's Sunshine Products, Inc.
Lehi, Utah 84043
(801) 341-7303