Nu Skin Reports Q3 2014 Decline

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Nu Skin Enterprises Inc. (NYSE: NUS) today announced third-quarter results with revenue of $638.8 million, the top end of the company's prior guidance and a 30% decline from the prior-year period.

Revenue for the third quarter of 2014 was negatively impacted 3% by foreign currency fluctuations. Earnings per share for the quarter were $1.12, ahead of expectations, versus $1.80 in the prior-year period. According to the company, the product launch schedule heavily impacted the sales results in Q3 2014. Comparable revenue in the third quarter of 2013 included $203 million in sales from the company's limited-time introduction of its ageLOC TR90 weight management system.

The company experiences greater regional losses in Greater China and South Asia/Pacific due largely to greater limited-time offer (LTO) sales in Q3 2013. The third quarter saw minimal increases in North Asia and South Korea due to local-currency revenue growthsaw a decline in local-currency revenue.

Currency fluctuations in the Americas region offset 19% local-currency growth, with reported revenue in the Americas declining 10 percent to $76.7 million, compared to $84.8 million in the prior-year period. Revenue in the EMEA region was $40.9 million, an 8% decline from the prior-year period.

The company recently completed a refinancing of its debt facilities, improving the company's financial flexibility. Cash flow from operations for the quarter was $33.6 million, including the effect of a tax payment of $49.2 million related to 2013 income.

 "We remain focused on rekindling growth in China, preparing for new product launches in 2015, and driving enhanced value for our shareholders. In addition, our recent debt refinancing provides the company with much greater flexibility to return value to shareholders," commented Truman Hunt, president and CEO.

The company anticipates fourth-quarter revenue of $590 million to $610 million, with earnings per share of $0.72 to $0.77. Earnings per share for the fourth quarter will be negatively impacted $0.08 by a pre-payment fee in connection with the refinancing the company''s debt.

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