Nature's Sunshine Products Reports Second Quarter 2015 Financial Results

• Net sales revenue of $81.2 million was down 12.5% year-over-year; down 7.7% year-over-year on a local currency basis
• Diluted EPS of $0.12, or $0.19, when excluding charges associated with the restructuring plan, which is expected to yield annualized operating income improvement of $10 to 15 million
• Repurchased $3.8 million of common stock during first six months of fiscal 2015
• Board of Directors approved a $0.10 per share quarterly cash dividend

LEHI, Utah, Aug. 10, 2015 (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 financial results for the second quarter ended June 30, 2015.

Second Quarter 2015 Financial Highlights

• Net sales revenue of $81.2 million, decreased 12.5% compared to $92.8 million in the second quarter of 2014. On a local currency basis, net sales revenue decreased 7.7% compared to the second quarter of 2014. Net sales revenue was negatively impacted by a $6.0 million decline in net sales in the NSP Russia, Central and Eastern Europe segment, as well as a $4.5 million unfavorable impact in foreign currency exchange rate fluctuations.
   
• Net income from continuing operations was $2.4 million, or $0.12 per diluted common share, compared to $3.6 million, or $0.22 per diluted common share in the second quarter of 2014.  Excluding planned restructuring charges of $2.1 million incurred during the second quarter of 2015, earnings per diluted common share were $0.19.
   
• Adjusted EBITDA was $5.1 million compared to $8.0 million in the second quarter of 2014. Adjusted EBITDA, which is a non-GAAP financial measure, is defined here as net income from continuing operations before taxes, depreciation, amortization and other income adjusted to exclude share-based compensation expense.

Management Commentary

"We were pleased to achieve a fourth consecutive quarter of local currency net sales growth in our largest market, NSP United States, and in NSP Canada and Synergy Europe," commented Gregory L. Probert, Chairman and Chief Executive Officer. "In Europe, we benefited from continued momentum following the launch of our Synergy weight management program, SLMsmart, in addition to last year's investments in sales resources for the region. In NSP North America, our new products coupled with increased adoption of our retail sales tools and the IN.FORM sales program, aimed at building a daily habit of health and weight management, continue to gain traction. We are also very excited about our pending entry into China which is progressing on track. We expect to obtain our direct-selling license in 2016 and are finalizing our product offerings and registrations in the e-commerce channel which we expect to roll out in the second-half of 2015."

Mr. Probert continued, "More than offsetting growth during the quarter was continued weakness in NSP Russia, Central and Eastern Europe primarily related to political unrest in Ukraine and Russia as well as the negative impacts of the strong dollar. We do not expect conditions in the region to stabilize in the near-term but, nevertheless, remain committed to our independent Distributors and continue to support their activity with additional promotions, events, product kits and training."

Mr. Probert concluded, "While our second quarter financial results were muted on the whole, we are making solid progress in our effort to restore top and bottom-line growth. As part of the restructuring plan we initiated in April, we expect to realize approximately $10 to $15 million of annualized operating income improvement by streamlining our operations and refocusing our activities on profitable growth opportunities."

Second Quarter 2015 Regional Sales by Operating Segment

Active Distributors and Customers by Segment ⁽¹⁾

(1)   Active Distributors and customers include our independent Distributors and customers who have purchased products directly from the Company for resale and/or personal consumption during the previous three months ended as of the date indicated.

Cash Flow & Balance Sheet Highlights

• Net cash provided by operating activities was $3.1 million for the six months ended June 30, 2015 as compared to $8.1 million in the six months ended June 30, 2014.
   
• Cash and cash equivalents as of June 30, 2015 were $46.2 million, compared to $58.7 million as of December 31, 2014.
   
• During the three months ended June 30, 2015, the Company repurchased $0.9 million of its common stock under its existing share repurchase plan. The Company's total repurchases in the first half of 2015 were 275,000 shares for a total of $3.8 million.
   
• The Company's Board of Directors approved a quarterly cash dividend of $0.10 per share, payable on September 8, 2015, to shareholders of record as of the close of business on August 25, 2015. Dividend payments during the second quarter of 2015 were $1.7 million. 

Conference Call

Nature's Sunshine Products will host a conference call to discuss its second quarter 2015 results on August 10, 2015 at 5:30 PM Eastern Time. The toll-free dial-in number for callers in the U.S. and Canada is 1-877-407-0789, conference ID: 13615339. International callers can dial 1-201-689-8562, conference ID: 13615339. A replay will be available from August 10, 2015 at 8:30 PM Eastern Time through August 24, 2015 at 11:59 PM Eastern Time by dialing 1-877-870-5176 (U.S. and Canada) or 1-858-384-5517 (International), replay PIN: 13615339. The call will also be webcast live and will be available on the Investors section of Nature's Sunshine Products' website at www.naturessunshine.com for 90 days.

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 625,000 independent Managers, Distributors and customers in more than 40 countries. Nature's Sunshine manufactures most of 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 four reportable business segments that are divided based on the characteristics of their Distributor base, similarities in compensation plans, as well as the internal organization of NSP's officers and their responsibilities (NSP Americas; NSP Russia, Central and Eastern Europe; Synergy WorldWide; and China and New Markets). The Company also supports health and wellness for children around the world through its partnership with the Sunshine Heroes Foundation. Additional information about the Company can be obtained at its website, www.naturessunshine.com.

Cautionary Statement Regarding Forward-Looking Statements

Certain information included or incorporated herein by reference in this report may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies. All statements (other than statements of historical fact) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. These statements are often characterized by terminology such as "believe," "hope," "may," "anticipate," "should," "intend," "plan," "will," "expect," "estimate," "project," "positioned," "strategy" and similar expressions, and are based on assumptions and assessments made by management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. For example, information appearing under "Management's Discussion and Analysis of Financial Condition and Results of Operations" includes forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties.

• any negative consequences resulting from the economy, including the availability of liquidity to us, our independent Distributors and our suppliers or the willingness of our customers to purchase products;
• our relationship with, and our ability to influence the actions of, our independent Distributors, and other third parties with whom we do business;
• improper activity by our employees or independent Distributors;
• negative publicity related to our products, ingredients, and the nutritional supplement industry or direct selling organization;
• changing consumer preferences and demands;
• our reliance upon, or the loss or departure of any member of, our senior management team which could negatively impact our Distributor relations and operating results;
• increased state and federal regulatory scrutiny of the dietary supplement industry;
• the competitive nature of our business and the nutritional supplement industry;
• regulatory matters governing our products, ingredients, the nutritional supplement industry, our direct selling program, or the direct selling market in which we operate;
• legal challenges to our direct selling program or to the classification of our independent Distributors;
• risks associated with operating internationally and the effect of economic factors, including foreign exchange, inflation, disruptions or conflicts with our third party importers, governmental sanctions, ongoing Ukraine and Russia political conflict, pricing and currency devaluation risks, especially in countries such as Ukraine, Russia and Belarus;
• uncertainties relating to the application of transfer pricing, duties, value-added taxes, and other tax regulations, and changes thereto;
• our dependence on increased penetration of existing markets;
• our reliance on our information technology infrastructure;
• the sufficiency of trademarks and other intellectual property rights;
• changes in tax laws, treaties or regulations, or their interpretation;
• taxation relating to our independent Distributors;
• product liability claims;
• share price volatility related to, among other things, speculative trading; and
• the full implementation of our joint venture for operations in China with Fosun Industrial Co., Ltd., as well as the legal complexities, unique regulatory environment and challenges of doing business in China generally.

All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in or incorporated by reference into this press release. Except as is required by law, we expressly disclaim any obligation to publicly release any revisions to forward-looking statements to reflect events after the date of this press release. Throughout this press release, we refer to Nature's Sunshine Products, Inc., together with its subsidiaries, as "we," "us," "our Company" or "the Company."

Non-GAAP Financial Measures

The Company has included information which has not been prepared in accordance with generally accepted accounting principles (GAAP), such as information concerning Adjusted EBITDA because management utilizes this information in the evaluation of its operations and believes that these measures are a useful indicator of the Company's ability to fund its business. These non-GAAP financial measures should not be considered as an alternative to, or more meaningful than, U.S. GAAP net income as an indicator of the Company's operating performance. Moreover, these non-GAAP financial measures, as presented by the Company, may not be comparable to similarly titled measures reported by other companies. Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of Nature's Sunshine Products' performance in relation to other companies. The Company has included a reconciliation of these non-GAAP measures to reported earnings under GAAP in the attached financial tables.

CONTACT: Stephen M. Bunker
         Chief Financial Officer
         Nature's Sunshine Products, Inc.
         Lehi, Utah 84043
         (801) 341-7303
         investorrelations@natr.com

Released August 10, 2015