Nu Skin Enterprises Reports Fourth Quarter and 2022 Financial Results

 

Company Provides Initial Outlook for Q1 and FY 2023

 

PROVO, Utah — Feb. 15, 2023 — Nu Skin Enterprises, Inc. (NYSE: NUS) today announced fourth quarter and full year 2022 results.

 

Executive Summary

Q4 2022 vs. Prior-year Quarter

Revenue:

$522.3 million; (22)%

·       (7)% FX impact or $(51) million

Earnings Per Share (EPS):

$1.15 or $0.89 excluding restructuring and impairment charges associated with the company’s strategic resource reallocation and a recent IRS-approved favorable tax method change, compared to $(0.18) or $1.11 excluding restructuring and impairment charges in Q4 2021

Customers:

1,147,124; (16)%

Paid Affiliates:

236,956; (13)%

Sales Leaders:

48,737; (21)%

 

Executive Summary

2022 vs. 2021

Revenue:

$2.23 billion; (17)%

·       (5)% FX impact or $(150) million

Earnings Per Share (EPS):

$2.07 or $2.90 excluding restructuring and impairment charges and a tax method change, compared to $2.86 or $4.14 excluding restructuring and impairment charges

 

“We made steady progress toward our Nu Vision 2025 strategy, despite persistent macro-economic challenges, which primarily included COVID-related disruptions in Mainland China, global inflation and foreign currency headwinds,” said Ryan Napierski, Nu Skin president and CEO. “We achieved several key milestones during 2022 including the introduction of our first connected device, ageLOC® LumiSpa® iO, further strengthening our position as the world’s leading beauty device system brand; the rollout of our Vera and Stela apps in all markets, which provide increased consumer and affiliate engagement; and steady advancements with our social commerce model. While we saw our sales channel contract primarily due to macroeconomic factors, we drove annual revenue growth of 4 percent in the U.S. and 2 percent in Southeast Asia/Pacific. Japan and Hong Kong/Taiwan also grew in constant currency, while reported revenue was down due to FX headwinds.

 

“Looking ahead, while the macro-environment remains uncertain, we expect it to steadily improve throughout the year. We remain confident in our Nu Vision 2025 strategy to help drive long-term growth and increase shareholder value, which we will update on our earnings call today. During the year, we will be advancing our EmpowerMe personalized beauty and wellness strategy by introducing our body iO smart, connected device system and rolling out our TRMe® weight management line. We will also continue to enhance our Vera and Stela apps with additional capabilities, features and improvements to streamline the overall user experience. In addition, as we continue to expand our affiliate-powered social commerce model, we will focus on stabilizing performance in more challenged regions and leveraging best practices from our markets that are further along in their social commerce transition. Lastly, as we navigate the year ahead, we will continue to be conservative in our guidance and prudent in our cost management while we invest in our future.”

 

Q4 2022 Year-over-year Operating Results               

Revenue:

$522.3 million compared to $673.4 million

·       (7)% FX impact or $(51) million

Gross Margin:

71.7% compared to 74.2% or 75.2% excluding restructuring and impairment charges in Q4 2021

·       Impacted by geographic footprint, foreign currency and global inflationary pressures

·       Nu Skin business was 74.9% compared to 77.9%

Selling Expenses:

38.5% compared to 39.1%

·       Nu Skin business was 40.5% compared to 41.4%

G&A Expenses:

24.4% compared to 24.4%

Operating Margin:

5.3% or 8.8% excluding restructuring and impairment charges, compared to 3.0% or 11.7% excluding restructuring and impairment charges

Other Income / (Expense):

$(3.1) million compared to $(1.9) million

Income Tax Rate:

(134.9)% or (3.7)% excluding restructuring and impairment charges and a recent IRS-approved favorable tax method change, compared to 150.1% or 26.9% excluding restructuring and impairment charges

EPS:

$1.15 or $0.89 excluding restructuring and impairment charges and a tax method change, compared to $(0.18) or $1.11 excluding restructuring and impairment charges


Stockholder Value

Dividend Payments:

$19.0 million

Stock Repurchases:

$10.0 million

·       $175.4 million remaining in authorization

 

Q1 and Full-year 2023 Outlook

Q1 2023 Revenue:

$450 to $490 million; (26) to (19)%

·       Approximately (6) to (5)% FX impact

Q1 2023 EPS:

$0.17 to $0.27 or $0.25 to $0.35 non-GAAP

2023 Revenue:

$2.03 to $2.18 billion; (9)% to (2)%

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

2023 EPS:

$2.27 to $2.67 or $2.35 to $2.75 non-GAAP

 

“Our initial 2023 guidance assumes the global macro environment remains challenging in the near-term, improving throughout the year,” said Mark Lawrence, chief financial officer. “Our annual revenue guidance is $2.03 to $2.18 billion, with an approximate 1 to 2 percent foreign currency headwind. We anticipate reported EPS of $2.27 to $2.67 or $2.35 to $2.75 excluding charges associated with a modest amount of 2023 restructuring. For the first quarter, we project revenue of $450 to $490 million, assuming a negative foreign currency impact of approximately 5 to 6 percent, with reported earnings per share of $0.17 to $0.27 or $0.25 to $0.35 when excluding an anticipated first-quarter restructuring and impairment charge of $5 to $10 million.”

 

Conference Call

The Nu Skin Enterprises management team will host a conference call with the investment community today at 5 p.m. (ET). Those wishing to access the webcast, as well as the financial information presented during the call, can visit the Investor Relations page on the company's website at ir.nuskin.com. A replay of the webcast will be available on the same page through March 1, 2023.

 

About Nu Skin Enterprises, Inc.

Nu Skin Enterprises, Inc. (NYSE: NUS) is a global integrated beauty and wellness company, powered by a dynamic affiliate opportunity platform. The company helps people look, feel and live 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 nearly 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 macro-environment and the company’s performance, growth, shareholder value, financial position, strategies, vision, transformation, initiatives, product pipeline and product introductions, digital and social-commerce tools and initiatives, customers, sales leaders, affiliates, and 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,” “continue,” “outlook,” “guidance,” “remain,” “become,” “plan,” “potential,” “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 COVID-19 and related disruptions, 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, including trade policies, associated with operating in Mainland China and other international markets;

·       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;

·       the company’s future tax-planning initiatives; any prospective or retrospective increases in duties or tariffs 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.

 

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.

 

Earnings per share, gross margin, operating margin, and income tax rate, each excluding restructuring and impairment charges and/or tax method changes, also are non-GAAP financial measures. Restructuring and impairment charges and tax method changes 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 restructuring and impairment charges and tax method changes facilitates period-to-period comparisons of the company’s performance. Please see the reconciliations of these items to our earnings per share and other income (expense) calculated under GAAP, below.

 

 

The following table sets forth revenue for the three-month periods ended December 31, 2022 and 2021 for each of our reportable segments (U.S. dollars in thousands):

 

 

Three Months Ended

December 31,

 

 

 

Constant-Currency

 

2022

 

2021

 

Change

 

Change

Nu Skin

                     

Americas

$

 128,921

 

$

 144,000

 

 

(10)%

 

 

(7)%

Mainland China

 

 73,935

 

 

 130,708

 

 

(43)%

 

 

(37)%

Southeast Asia/Pacific

 

 76,606

 

 

 90,313

 

 

(15)%

 

 

(8)%

South Korea

 

 60,029

 

 

 92,528

 

 

(35)%

 

 

(26)%

Japan

 

 53,877

 

 

 63,215

 

 

(15)%

 

 

6%

EMEA

 

 55,337

 

 

 68,066

 

 

(19)%

 

 

(9)%

Hong Kong/Taiwan

 

 39,789

 

 

 47,816

 

 

(17)%

 

 

(10)%

Nu Skin other

 

 1,525

 

 

 156

 

 

878%

 

 

876%

Total Nu Skin

 

 490,019

   

 636,802

   

(23)%

   

(15)%

Rhyz Investments

                     

Manufacturing

 

 29,560

   

 36,360

   

(19)%

   

(19)%

Rhyz other

 

 2,761

   

 274

   

908%

   

908%

Total Rhyz Investments

 

 32,321

   

 36,634

   

(12)%

   

(12)%

Total

$

522,340

 

$

 673,436

 

 

(22)%

 

 

(15)%

 

The following table sets forth revenue for the years ended December 31, 2022 and 2021 for each of our reportable segments (U.S. dollars in thousands):

 

 

Year Ended

December 31,

 

 

 

Constant-Currency

 

2022

 

2021

 

Change

 

Change

Nu Skin

                     

Americas

$

 508,537

 

$

 547,755

 

 

(7)%

 

 

(5)%

Mainland China

 

 360,389

 

 

 568,774

 

 

(37)%

 

 

(35)%

Southeast Asia/Pacific

 

 344,411

 

 

 336,651

 

 

2%

 

 

7%

South Korea

 

 268,707

 

 

 354,252

 

 

(24)%

 

 

(15)%

Japan

 

 224,896

 

 

 266,216

 

 

(16)%

 

 

EMEA

 

 204,275

 

 

 283,200

 

 

(28)%

 

 

(19)%

Hong Kong/Taiwan

 

 157,197

 

 

 162,611

 

 

(3)%

 

 

1%

Nu Skin other

 

 3,959

 

 

 3,653

 

 

8%

 

 

8%

Total Nu Skin

 

 2,072,371

   

 2,523,112

   

(18)%

   

(12)%

Rhyz Investments

                     

Manufacturing

 

 149,458

   

 172,120

   

(13)%

   

(13)%

Rhyz other

 

 3,830

   

 437

   

776%

   

776%

Total Rhyz Investments

 

 153,288

   

 172,557

   

(11)%

   

(11)%

Total

$

 2,225,659

 

$

 2,695,669

 

 

(17)%

 

 

(12)%

 

The following table provides information concerning the number of Customers, Paid Affiliates and Sales Leaders in our core Nu Skin business for the three-month periods ended December 31, 2022 and 2021:

 

 

Three Months Ended

December 31,

   

Customers

2022

 

2021

 

Change

Americas

 

299,287

   

336,564

 

(11)%

Mainland China

 

202,933

   

315,418

 

(36)%

Southeast Asia/Pacific

 

141,183

   

169,601

 

(17)%

South Korea

 

123,749

   

146,354

 

(15)%

Japan

 

119,152

   

122,813

 

(3)%

EMEA

 

197,917

   

210,414

 

(6)%

Hong Kong/Taiwan

 

62,903

   

66,395

 

(5)%

Total

 

1,147,124

   

1,367,559

 

(16)%

 

 

 

Three Months Ended

December 31,

   

Paid Affiliates

2022

 

2021

 

Change

Americas

 

42,633

   

49,328

 

(14)%

Mainland China

 

23,436

   

30,546

 

(23)%

Southeast Asia/Pacific

 

38,653

   

44,050

 

(12)%

South Korea

 

45,058

   

52,036

 

(13)%

Japan

 

38,021

   

38,428

 

(1)%

EMEA

 

31,869

   

36,482

 

(13)%

Hong Kong/Taiwan

 

17,286

   

20,155

 

(14)%

Total

 

236,956

   

271,025

 

(13)%

 

 

 

Three Months Ended

December 31,

   

Sales Leaders

2022

 

2021

 

Change

Americas

 

9,594

   

10,879

 

(12)%

Mainland China(1)

 

12,359

   

18,207

 

(32)%

Southeast Asia/Pacific

 

6,999

   

8,800

 

(20)%

South Korea

 

6,094

   

8,224

 

(26)%

Japan

 

5,936

   

5,864

 

1%

EMEA

 

4,740

   

5,743

 

(17)%

Hong Kong/Taiwan

 

3,015

   

3,666

 

(18)%

Total

 

48,737

   

61,383

 

(21)%

 

(1)  The December 31, 2022 number reflects a modified Sales Leader definition, as described in our annual report on form 10-K.

·  “Customers” are persons who have purchased directly from the Company during the three months ended as of the date indicated. Our Customer numbers include members of our sales force who made such a purchase, including Paid Affiliates and those who qualify as Sales Leaders, but they do not include consumers who purchase directly from members of our sales force.

·  “Paid Affiliates” are any Brand Affiliates, as well as members of our sales force in Mainland China, who earned sales compensation during the three-month period. In all of our markets besides Mainland China, we refer to members of our independent sales force as “Brand Affiliates” because their primary role is to promote our brand and products through their personal social networks.

·  “Sales Leaders” are the three-month average of our monthly Brand Affiliates, as well as sales employees and independent marketers in Mainland China, who achieved certain qualification requirements as of the end of each month of the quarter.

 

NU SKIN ENTERPRISES, INC.

Consolidated Statements of Income (Unaudited)

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

 

 

 

 

 

Three Months Ended

December 31,

 

Year Ended

December 31,

 

2022

 

2021

 

2022

 

2021

Revenue

$

522,340

 

$

 673,436

 

$

 2,225,659

 

$

 2,695,669

Cost of sales

 

 147,816

 

 

 173,775

 

 

 630,915

 

 

 675,223

Gross profit

 

 374,524

 

 

 499,661

 

 

 1,594,744

 

 

 2,020,446

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

Selling expenses

 

 201,031

 

 

 263,265

 

 

 879,634

 

 

 1,080,153

General and administrative expenses

 

 127,664

 

 

 164,206

 

 

 555,769

 

 

 654,431

 

Restructuring and impairment expenses

 

 

 18,370

   

 51,870

   

 48,494

   

 51,870

Total operating expenses

 

 347,065

 

 

 479,341

 

 

 1,483,897

 

 

 1,786,454

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 27,459

 

 

 20,320

 

 

 110,847

 

 

 233,992

Other income (expense), net

 

 (3,104)

 

 

 (1,884)

 

 

 (21,877)

 

 

 (1,533)

 

 

 

 

 

 

 

 

 

 

 

 

Income before provision for income taxes

 

 24,355

 

 

 18,436

 

 

 88,970

 

 

 232,459

Provision (benefit) for income taxes

 

 (32,860)

 

 

 27,666

 

 

 (15,808)

 

 

 85,193

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

$

 57,215

 

$

 (9,230)

 

$

 104,778

 

$

 147,266

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

Basic

$

 1.16

 

$

 (0.19)

 

$

 2.10

 

$

 2.93

Diluted

$

 1.15

 

$

 (0.18)

 

$

 2.07

 

$

 2.86

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding (000s):

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 49,452

 

 

 49,862

 

 

 50,002

 

 

 50,193

Diluted

 

 49,783

 

 

 50,801

 

 

 50,525

 

 

 51,427

 

 

NU SKIN ENTERPRISES, INC.

Consolidated Balance Sheets (Unaudited)

(U.S. dollars in thousands)

 

 

 

 

 

December 31,

2022

 

December 31,

2021

ASSETS

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

 264,725

 

$

339,593

Current investments

 

 13,784

 

 

15,221

Accounts receivable, net

 

 47,360

 

 

41,299

Inventories, net

 

 346,183

 

 

399,931

Prepaid expenses and other

 

 87,816

 

 

76,906

 Total current assets

 

 759,868

 

 

872,950

 

 

 

 

 

 

Property and equipment, net

 

 444,806

 

 

453,674

Operating lease right-of-use assets

 

 98,734

   

120,973

Goodwill

 

 206,432

 

 

206,432

Other intangible assets, net

 

 66,701

 

 

76,991

Other assets

 

 244,429

 

 

175,460

Total assets

$

 1,820,970

 

$

1,906,480

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

$

 53,963

 

$

49,993

Accrued expenses

 

 280,280

 

 

372,201

Current portion of long-term debt

 

 25,000

 

 

107,500

Total current liabilities

 

 359,243

 

 

529,694

 

         

Operating lease liabilities

 

 76,540

 

 

88,759

Long-term debt

 

 377,466

 

 

268,781

Other liabilities

 

 110,425

 

 

106,474

Total liabilities

 

 923,674

 

 

993,708

 

 

 

 

 

 

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

 

 613,278

 

 

601,703

Treasury stock, at cost – 41.1 million and 40.7 million shares

 

 (1,569,061)

 

 

(1,526,860)

Accumulated other comprehensive loss

 

 (86,509)

 

 

(73,896)

Retained earnings

 

 1,939,497

 

 

1,911,734

Total stockholders' equity

 

 897,296

 

 

912,772

Total liabilities and stockholders’ equity

$

 $1,820,970

 

$

1,906,480

 

NU SKIN ENTERPRISES, INC.
Reconciliation of Gross Margin Excluding Impact of Restructuring and Impairment to GAAP Gross Margin
(in thousands, except for per share amounts)

                         
   

Three months ended
December 31,

 

Year ended

December 31,

   

2022

 

2021

 

2022

 

2021

Gross profit

 

$

374,524

 

$

499,661

 

$

1,594,744

 

$

2,020,446

Impact of restructuring and impairment:

                       

Inventory write-off

   

-

   

6,656

   

26,905

   

6,656

Adjusted gross profit

 

$

374,524

 

$

506,317

 

$

1,621,649

 

$

2,027,102

                         

Gross margin

   

71.7%

   

74.2%

   

71.7%

   

75.0%

Gross margin, excluding restructuring impact

   

71.7%

   

75.2%

   

72.9%

   

75.2%

                         

Revenue

 

$

522,340

 

$

673,436

 

$

2,225,659

 

$

2,695,669

NU SKIN ENTERPRISES, INC.
Reconciliation of Operating Margin Excluding Impact of Restructuring and Impairment to GAAP Operating Margin
(in thousands, except for per share amounts)

                         

 

   

Three months ended
December 31,

 

Year ended

 December 31,

   

2022

 

2021

 

2022

 

2021

 

Operating Income

 

$

      27,459

 

 $

 20,320

 

 $

     110,847

 

 $

   233,992

 

Impact of restructuring and impairment:

                       

 

Restructuring and impairment

   

           18,369

   

           51,870

   

           48,493

   

           51,870

 

Inventory write-off

 

 

                   -  

 

 

             6,656

 

 

           26,905

 

 

             6,656

 

Adjusted operating income

 

 $

      45,828

 

 $

  78,846

 

 $

   186,245

 

 $

    292,518

 

                         

 

                         

 

Operating margin

   

5.3%

   

3.0%

   

5.0%

   

8.7%

 

Operating margin, excluding restructuring impact

   

8.8%

   

11.7%

   

8.4%

   

10.9%

 

                         

 

Revenue

 

$

522,340

 

$

673,436

 

$

2,225,659

 

$

2,695,669

 

 

NU SKIN ENTERPRISES, INC.
Reconciliation of Effective Tax Rate Excluding Impact of Restructuring to GAAP Effective Tax Rate
(in thousands, except for per share amounts)

                         
   

Three months ended
December 31,

 

Year ended

December 31,

   

2022

 

2021

 

2022

 

2021

Provision (benefit) for income taxes

 

$

   (32,860)

 

 $

      27,666

 

 $

 (15,808)

 

 $

       85,193

Impact of restructuring on provision for income taxes

   

              (903)

   

           (6,933)

   

           10,651

   

           (6,933)

Impact of Tax Changes

 

 

           32,187

 

 

                   -  

 

 

           32,187

 

 

                   -  

Provision for income taxes, excluding impact of restructuring

 

 $

       (1,576)

 

 $

      20,733

 

 $

  27,030

 

 $

      78,260

                         

Income before provision for income taxes

   

           24,355

   

           18,436

   

           88,970

   

         232,459

Impact of restructuring and impairment expense:

                       

Inventory write-off

   

                   -  

   

             6,656

   

           26,905

   

             6,656

Restructuring and impairment

   

           18,369

   

           51,870

   

           48,493

   

           51,870

Impact of charges associated with our Q4 exit from Grow Tech:

                       

Unrealized investment loss

 

 

                   -  

 

 

                   -  

 

 

             9,009

 

 

                   -  

Income before provision for income taxes, excluding impact of restructuring

 

 $

      42,724

 

 $

      76,962

 

 $

 173,377

 

 $

   290,985

                         

Effective tax rate

   

-134.9%

   

150.1%

   

-17.8%

   

36.6%

Effective tax rate, excluding restructuring impact

   

-3.7%

   

26.9%

   

15.6%

   

26.9%

 

NU SKIN ENTERPRISES, INC.
Reconciliation of Earnings Per Share Excluding Impact of Restructuring to GAAP Earnings Per Share
(in thousands, except for per share amounts)

                         
   

Three months ended
December 31,

 

Year ended

December 31,

   

2022

 

2021

 

2022

 

2021

Net income

 

 $

       57,215

 

 $

      (9,230)

 

 $

 104,778

 

 $

     147,266

Impact of restructuring and impairment expense:

                       

Restructuring and impairment

   

           18,369

   

           51,870

   

           48,493

   

           51,870

Cost of sales - Restructuring

   

                   -  

   

             6,656

   

           26,905

   

             6,656

Tax impact

   

                903

   

             6,933

   

           (9,566)

   

             6,933

Impact of charges associated with our Q4 exit from Grow Tech:

                       

Unrealized loss on investment

   

                   -  

   

                   -  

   

             9,009

   

                   -  

Tax impact

   

                   -  

   

                   -  

   

           (1,085)

   

                   -  

Tax impact from method change

 

 

         (32,187)

 

 

                   -  

 

 

         (32,187)

 

 

                   -  

Adjusted net income

 

 $

      44,300

 

 $

     56,229

 

 $

 146,347

 

 $

     212,725

                         
                         

Diluted earnings per share

 

$

            1.15

 

$

          (0.18)

 

$

      2.07

 

$

          2.86

Diluted earnings per share, excluding restructuring impact

 

$

          0.89

 

$

             1.11

 

$

     2.90

 

$

            4.14

                         

Weighted-average common shares outstanding (000):

   

49,783

   

50,801

   

50,525

   

51,427

 

NU SKIN ENTERPRISES, INC.
 Reconciliation of Earnings Per Share Excluding Impact of Restructuring to GAAP Earnings Per Share
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended
March 31,

 

Year ended December 31,

 

 

2023 - Low-end

 

2023 High-end

 

2023 - Low-end

 

2023 High-end

Earnings Per Share

 

$

        0.17

 

$

      0.27

 

$

      2.27

 

$

      2.67

Impact of restructuring and impairment expense:

 

 

 

 

 

 

 

 

 

 

 

 

Restructuring and impairment

 

 

               0.10

 

 

               0.10

 

 

               0.10

 

 

               0.10

Tax impact

 

 

             (0.02)

 

 

             (0.02)

 

 

             (0.02)

 

 

             (0.02)

Adjusted EPS

 

 $

      0.25

 

 $

      0.35

 

 $

      2.35

 

 $

      2.75

# # #

Divider