UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________________to __________________
Commission File #0-8707
NATURE'S SUNSHINE PRODUCTS, INC.
--------------------------------
(Exact Name of Registrant)
Utah 87-0327982
- ------------------------ ---------------------------------------
(State of Incorporation) (I.R.S. Employer Identification Number)
75 East 1700 South
Provo, Utah 84606
(Address of Principal Executive Offices)
(801) 342-4300
(Registrant's Telephone Number, including Area Code)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934,
during the preceding 12 months (or such shorter period that the Registrant was
required to file such report(s)), and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
--- ---
The number of shares of common stock, without par value, outstanding as of
May 5, 2000, was 16,990,604.
PART I FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
NATURE'S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts In Thousands)
(UNAUDITED)
March 31, December 31,
2000 1999
--------- ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 26,005 $ 18,433
Accounts receivable, net 9,948 7,090
Inventories 27,293 26,660
Deferred income tax assets 2,677 2,565
Prepaid expenses and other 8,364 8,575
-------- --------
Total Current Assets 74,287 63,323
PROPERTY, PLANT AND
EQUIPMENT, net 24,796 25,193
LONG-TERM INVESTMENTS 12,419 12,368
INTANGIBLE AND OTHER ASSETS, net 6,834 6,551
-------- --------
$118,336 $107,435
======== ========
The accompanying notes to the financial statements are an
integral part of these condensed consolidated financial statements.
2
NATURE'S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(Amounts In Thousands)
(UNAUDITED)
March 31, December 31,
2000 1999
--------- ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term debt $ 864 $ 1,018
Accounts payable 5,561 5,279
Accrued volume incentives 13,660 10,685
Accrued liabilities 10,768 8,479
Income taxes payable 3,304 2,268
--------- ---------
Total Current Liabilities 34,157 27,729
--------- ---------
LONG-TERM LIABILITIES:
Deferred income tax liabilities 1,571 1,116
Deferred compensation 1,201 1,053
--------- ---------
Total Long-Term Liabilities 2,772 2,169
--------- ---------
SHAREHOLDERS' EQUITY:
Common stock, no par value, 20,000 shares
authorized; 19,446 shares issued 37,659 37,659
Retained earnings 91,388 87,463
Treasury stock, at cost, 2,354 shares and
2,318 shares, respectively (38,515) (38,174)
Accumulated other comprehensive loss (9,125) (9,411)
--------- ---------
Total Shareholders' Equity 81,407 77,537
--------- ---------
$ 118,336 $ 107,435
========= =========
The accompanying notes to the financial statements are an
integral part of these condensed consolidated financial statements.
3
NATURE'S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(Amounts In Thousands, Except Per-Share Information)
(UNAUDITED)
Three Months Ended
March 31,
--------------------------
2000 1999
-------- --------
SALES REVENUE $ 79,977 $ 72,178
-------- --------
COSTS AND EXPENSES:
Cost of goods sold 14,365 12,857
Volume incentives 36,567 33,123
Selling, general and administrative expenses 22,110 18,539
-------- --------
73,042 64,519
-------- --------
OPERATING INCOME 6,935 7,659
OTHER INCOME, net 404 597
-------- --------
INCOME BEFORE PROVISION FOR INCOME TAXES 7,339 8,256
PROVISION FOR INCOME TAXES 2,843 3,266
-------- --------
NET INCOME 4,496 4,990
-------- --------
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
Foreign currency translation adjustments 259 (2,437)
Unrealized holding gains (losses) on marketable
securities 27 (7)
-------- --------
286 (2,444)
-------- --------
COMPREHENSIVE INCOME $ 4,782 $ 2,546
======== ========
BASIC NET INCOME PER COMMON SHARE $ 0.26 $ 0.28
======== ========
WEIGHTED AVERAGE BASIC SHARES 17,122 17,976
======== ========
DILUTED NET INCOME PER COMMON SHARE $ 0.26 $ 0.28
======== ========
WEIGHTED AVERAGE DILUTED SHARES 17,357 18,101
======== ========
The accompanying notes to the financial statements are an integral
part of these condensed consolidated financial statements.
4
NATURE'S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
Increase (Decrease) in Cash and Cash Equivalents
(Amounts In Thousands)
(UNAUDITED)
Three Months Ended
March 31,
--------------------------
2000 1999
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 4,496 $ 4,990
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,404 1,489
Gain on sale of fixed assets (15) (5)
Deferred income taxes 343 157
Deferred compensation 148 524
Changes in assets and liabilities:
Accounts receivable, net (2,858) (129)
Inventories (633) 1,418
Prepaid expenses and other assets 289 757
Accounts payable 282 141
Accrued volume incentives 2,975 2,705
Accrued liabilities 2,289 1,453
Income taxes payable 1,036 1,831
Cumulative currency translation adjustments 272 (1,777)
-------- --------
Net Cash Provided by Operating Activities 10,028 13,554
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (748) (731)
Purchase of long-term investments, net (24) (496)
Payments received (advances) on long-term receivables (388) 18
Purchase of other assets (241) (333)
Proceeds from sale of property and equipment 24 17
Minority interest elimination -- (108)
-------- --------
Net Cash Used in Investing Activities (1,377) (1,633)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of cash dividends (571) (599)
Purchase of treasury stock (341) (1,839)
Repayments of short-term debt (154) (280)
-------- --------
Net Cash Used in Financing Activities (1,066) (2,718)
-------- --------
EFFECT OF EXCHANGE RATES ON CASH (13) (661)
-------- --------
NET INCREASE IN CASH AND
CASH EQUIVALENTS 7,572 8,542
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 18,433 22,099
-------- --------
CASH AND CASH EQUIVALENTS AT
END OF PERIOD $ 26,005 $ 30,641
======== ========
The accompanying notes to the financial statements are an
integral part of these condensed consolidated financial statements.
5
NATURE'S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts In Thousands, Except Per-Share Information)
(UNAUDITED)
(1) INTERIM FINANCIAL STATEMENT POLICIES AND DISCLOSURES
The unaudited, condensed consolidated financial statements of Nature's
Sunshine Products, Inc. and subsidiaries included herein have been prepared
pursuant to the rules and regulations of the Securities and Exchange Commission.
Certain information and footnote disclosures normally required in financial
statements prepared in accordance with accounting principles generally accepted
in the United States have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the following disclosures are
adequate to make the information presented not misleading.
These condensed consolidated financial statements reflect all adjustments,
which in the opinion of management, are necessary to present fairly the
financial position as of March 31, 2000, and the results of operations for the
periods presented. All of the adjustments which have been made in these
condensed consolidated financial statements are of a normal recurring nature.
Operating results for the three-month period ended March 31, 2000, are not
necessarily indicative of the results that may be expected for the year ending
December 31, 2000.
It is suggested that these condensed consolidated financial statements
are read in conjunction with the consolidated financial statements and the
notes thereto included in the Company's Annual Report on Form 10-K for the
year ended December 31, 1999.
(2) INVENTORIES
Inventories consist of the following:
March 31, December 31,
2000 1999
-------- ------------
Raw materials $ 7,935 $ 8,113
Work in process 1,502 1,608
Finished goods 17,856 16,939
------- -------
$27,293 $26,660
======= =======
6
(3) NET INCOME PER COMMON SHARE
Basic net income per common share (Basic EPS) excludes dilution and is
computed by dividing net income by the weighted-average number of common shares
outstanding during the period. Diluted net income per common share (Diluted EPS)
reflects the potential dilution that could occur if stock options or other
contracts to issue common stock were exercised or converted into common stock.
The computation of Diluted EPS does not assume exercise or conversion of
securities that would have an anti-dilutive effect on net income per common
share.
As of March 31, 2000, the Company had a total of 3,480 options outstanding.
The options were granted at the market price on the date of grant and have a
weighted average exercise price of $8.66.
Following is a reconciliation of the numerator and denominator of Basic EPS
to the numerator and denominator of Diluted EPS for the three months ended:
Net Income Shares Per Share
(Numerator) (Denominator) Amount
Three Months Ended March 31, 2000
Basic EPS $4,496 17,122 $ 0.26
Effect of stock options -- 235
------ ------ --------
Diluted EPS $4,496 17,357 $ 0.26
====== ====== ========
Three Months Ended March 31, 1999
Basic EPS $4,990 17,976 $ 0.28
Effect of stock options -- 125
------ ------ --------
Diluted EPS $4,990 18,101 $ 0.28
====== ====== ========
For the three months ended March 31, 2000 and 1999, there were outstanding
options to purchase 647 and 151 shares of common stock, respectively, that were
not included in the computation of Diluted EPS, as their effect would have been
anti-dilutive.
(4) EQUITY TRANSACTIONS
The Company has declared consecutive quarterly cash dividends since 1988.
The most recent quarterly cash dividend of 3 1/3 cents per common share was
declared on April 27, 2000, to shareholders of record on May 9, 2000 and is
payable on May 19, 2000.
7
For the three months ended March 31, 2000, the Company repurchased
approximately 36 shares of its common stock in the open market. On October 20,
1999, the Board of Directors authorized the repurchase up to 1,000 shares of the
Company's common stock as market conditions warrant. As of March 31, 2000, the
Company repurchased approximately 154 shares of common stock under this
approval. Subsequent to March 31, 2000, the Company repurchased an additional
101 shares of common stock.
(5) RECENT ACCOUNTING PRONOUNCEMENT
The Financial Accounting Standards Board issued SFAS No. 133, "Accounting
for Derivative Instruments and Hedging Activities." The pronouncement
establishes accounting and reporting standards requiring that derivative
instruments be recorded in the balance sheet as either an asset or liability
measured at its fair value and that changes in the derivative's fair value be
recognized currently in earnings unless specific hedge accounting criteria are
met. SFAS No. 133 is effective for fiscal years beginning after June 15, 2000.
The adoption of this pronouncement will not have a material effect on the
Company's consolidated financial statements as the Company does not currently
hold any derivative or hedging instruments.
(6) ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
The composition of accumulated other comprehensive income (loss), net of
tax, is as follows:
Unrealized Total
Gains on Accumulated
Foreign Currency Available-for-Sale Other Comprehensive
Adjustments Securities Income (Loss)
---------------- ------------------ -------------------
Balance as of December 31, 1999 $(9,748) $ 337 $(9,411)
Current period change 259 27 286
------- ------- -------
Balance as of March 31, 2000 $(9,489) $ 364 $(9,125)
======= ======= =======
8
(7) LEGAL PROCEEDINGS
The Company is a defendant in various lawsuits which are incidental to the
Company's business. Management, after consultation with its legal counsel,
believes that the ultimate disposition of these matters will not have a material
effect upon the Company's consolidated results of operations or financial
position.
(8) SEGMENT INFORMATION
The Company has four operating segments. These operating segments are
components of the Company for which separate information is available that is
evaluated regularly by management in deciding how to allocate resources and in
assessing performance. The Company evaluates performance based on sales revenue
and operating income.
The Company's operating segments are based on geographic operations and
include a domestic segment (United States) and three international segments
(Latin America, Asia Pacific and other regions). Intersegment sales, eliminated
in consolidation, are not material.
9
Operating segment information for the three months ended March 31, 2000 and
1999, are as follows:
Three Months Ended
March 31,
2000 1999
--------- ---------
Sales Revenue:
Domestic $ 48,010 $ 48,580
International:
Latin America 18,784 17,132
Asia Pacific 8,545 3,002
Other 4,638 3,464
--------- ---------
79,977 72,178
--------- ---------
Operating Expenses:
Domestic 42,765 41,791
International:
Latin America 17,845 15,800
Asia Pacific 8,218 3,840
Other 4,214 3,088
--------- ---------
73,042 64,519
--------- ---------
Operating Income (Loss):
Domestic 5,245 6,789
International:
Latin America 939 1,332
Asia Pacific 327 (838)
Other 424 376
--------- ---------
6,935 7,659
--------- ---------
Unallocated Amounts
Other Income 404 597
--------- ---------
Income Before Provision for Income Taxes $ 7,339 $ 8,256
========= =========
Segment assets as of March 31, 2000 and December 31, 1999, are as follows:
March 31, December 31,
2000 1999
--------- ------------
Assets
Domestic $ 74,054 $ 66,372
International:
Latin America 29,454 29,343
Asia Pacific 10,723 8,670
Other 4,105 3,050
--------- ---------
$ 118,336 $ 107,435
========= =========
10
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion should be read in conjunction with the
consolidated financial statements, the notes thereto and management's discussion
and analysis included in the Company's Annual Report on Form 10-K for the year
ended December 31, 1999.
RESULTS OF OPERATIONS
The following table identifies (i) the relationship that statement of
income items disclosed in the condensed consolidated financial statements have
to total sales, and (ii) the amount and percent of change of such items compared
to the corresponding prior period.
(Dollar Amounts in Thousands)
(UNAUDITED)
(i) (ii)
Income and Expense Three Months Ended March 31
Items as a Percent of Sales 2000 to 1999
--------------------------- ---------------------------
Three Months Ended
March 31 Amount of Percent
--------------------------- Increase of
2000 1999 (Decrease) Change
---- ----- ---------- -------
100.0% 100.0% Sales revenue $ 7,799 10.8%
----- ----- -------
18.0 17.8 Cost of goods sold 1,508 11.7
45.7 45.9 Volume incentives 3,444 10.4
27.6 25.7 SG&A expenses 3,571 19.3
----- ----- -------
91.3 89.4 Total operating expenses 8,523 13.2
----- ----- -------
8.7 10.6 Operating income (724) (9.5)
0.5 0.8 Other income (193) (32.3)
----- ----- -------
9.2 11.4 Income before income taxes (917) (32.5)
3.6 4.5 Provision for income taxes (423) (11.1)
----- ----- -------
5.6% 6.9% Net income $ (494) (9.9)%
===== ===== =======
11
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
SALES REVENUE
Sales revenue for the three months ended March 31, 2000, was $80.0 million
compared to $72.2 million in the prior year. The increase in sales revenue for
the three months ended March 31, 2000, is attributable to the expansion of
various international markets, most notably South Korea, Mexico, Japan and
Brazil.
Sales revenue in the Company's domestic operations for the three months
ended March 31, 2000, was $48.0 million, a decrease of 1 percent, compared to
the same period in the prior year. Increased product and price competition in
the nutritional supplement market as well as competition for new Distributors
negatively impacted domestic sales revenue during the period. The Company
expects competition to remain strong for the foreseeable future. During the
quarter ended March 31, 2000, the Company continued to promote its new
SmartStart program designed to recruit new Distributors. Active Distributors in
the Company's domestic market increased 6 percent, to approximately 204,000, as
of March 31, 2000, compared to December 31, 1999.
The Company's international operations reported sales revenue of $32.0
million, an increase of 35 percent, for the three months ended March 31, 2000,
compared to the same period in 1999. The increase in sales revenue for the first
quarter was primarily the result of increased sales revenue reported in South
Korea, Mexico, Japan and Brazil. The Company continues to focus its efforts on
the re-launch of its operation in Japan, the world's largest direct-selling
country. Additionally, the Company began operations in Israel.
The Company's independent sales force consists of Managers and
Distributors. A Distributor interested in earning additional income by
committing more time and effort to selling the Company's products may attain the
rank of "Manager." Appointment as a Manager is dependent upon attaining certain
purchase volume levels and demonstrating leadership abilities. The number of
Managers at
12
March 31, 2000, was approximately 16,800 compared to 15,800 at March 31, 1999,
an increase of approximately 6 percent. The number of Distributors at March 31,
2000, was approximately 545,000 compared to approximately 526,000 at March 31,
1999, an increase of approximately 4 percent.
COST OF GOODS SOLD
For the three months ended March 31, 2000, the Company experienced a slight
increase in cost of goods sold, as a percentage of sales, compared to the same
period in the prior year. The increase in cost of goods sold is primarily the
result of an increase in international sales revenue where cost of goods sold,
as a percent of sales, is slightly higher than in the Company's domestic
operations. Management expects cost of goods sold to increase slightly, as a
percent of sales, during the remainder of 2000 compared to the three months
ended March 31, 2000.
VOLUME INCENTIVES
Volume incentives are payments to independent sales force members for
reaching certain levels of sales performance and organizational development and
are an integral part of the Company's direct sales marketing program. Volume
incentives vary slightly by product, on a percentage basis, due to the Company's
pricing policies.
For the three months ended March 31, 2000, the Company experienced a slight
decrease in volume incentives, as a percentage of sales, compared to the same
period in the prior year. The decrease in volume incentives is primarily the
result of an increase in international sales revenue where volume incentives, as
a percent of sales, are lower than in the Company's domestic operations.
Management expects volume incentives to decrease slightly, as a percent of
sales, during the remainder of 2000 compared to the three months ended March 31,
2000.
13
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative (SG&A) expenses for the three months
ended March 31, 2000, increased, as a percent of sales, to 27.6 percent,
compared to 25.7 percent in the first quarter of 1999. The increase in SG&A is
the result of expenses associated with the expansion of South Korea, Japan and
Russia as well as new marketing efforts initiated in the Company's domestic
operations. Actual expenses increased $3.6 million during the three months ended
March 31, 2000, compared to the same period in the prior year. SG&A expense
increases included approximately $1.4 million in costs of the Company's domestic
market as well as approximately $2.2 million associated with the Company's
re-launch of its Japanese operation, expansion of its South Korean operation as
well as expansion into other international markets. Management expects SG&A to
decrease slightly, as a percent of sales, during the remainder of 2000 compared
to the three months ended March 31, 2000.
SEGMENT INFORMATION
(See information included in the condensed consolidated financial
statements included in Item 1-- Note 8.)
BALANCE SHEET
ACCOUNTS RECEIVABLE
Accounts receivable increased approximately $2.9 million at March 31, 2000,
compared to December 31, 1999. The increase in accounts receivable is primarily
related to the Company's domestic operation. During the month of March, the
Company extended credit to certain of its key domestic Distributors as part of a
promotional incentive. The Company also experienced an increase in accounts
receivable in Brazil and South Korea as the result of significant sales growth
in these markets.
14
ACCRUED VOLUME INCENTIVES
Accrued volume incentives increased $3.0 million as of March 31, 2000,
compared to December 31, 1999, as a result of the increase in sales revenue
during the month of March in 2000 compared to the month of December in 1999.
ACCRUED LIABILITIES
Accrued liabilities increased approximately $2.3 million as of March 31,
2000, compared to December 31, 1999, as a result of accruals associated with the
Company's sales conventions, travel and incentive programs.
LIQUIDITY AND CAPITAL RESOURCES
The Company's principal sources of funds are its available cash and cash
equivalents and cash generated from operations. At March 31, 2000, cash and cash
equivalents increased approximately $7.6 million compared to December 31, 1999.
Cash provided by operating activities was approximately $10.0 million for the
first quarter compared to approximately $13.6 million in the same period the
prior year. The decrease was primarily due to the temporary increases in
accounts receivable of $2.9 million.
During the three months ended March 31, 2000, the Company purchased
approximately 36,000 shares of its common stock for $341,000. The Company also
purchased approximately $750,000 of property, plant and equipment and paid
dividends of $571,000. Management believes the Company's stock is an attractive
investment and, pursuant to its previously announced 1,000,000-share buyback
program, may utilize some of its available cash to purchase up to the remaining
balance of approximately 745,000 shares as of May 5, 2000, should market
conditions warrant.
Management believes that working capital requirements can be met through
the Company's available cash and cash equivalents and internally-generated funds
for the foreseeable future; however,
15
a prolonged economic downturn or a decrease in the demand for the Company's
products could adversely affect the long-term liquidity of the Company. In the
event of a significant decrease in cash provided by the Company's operations, it
might be necessary for the Company to obtain external sources of funding. The
Company does not currently maintain a credit facility or any other external
sources of long-term funding; however, management believes that such funding
could be obtained on competitive terms in the event additional sources of funds
became necessary.
On March 2, 2000, the Company announced its plans to complete the
manufacturing, research and development and quality assurance areas of its
recent facility expansion. Management expects the project will cost
approximately $14 million and will take approximately two years to complete.
LEGAL PROCEEDINGS
The Company is a defendant in various lawsuits which are incidental to the
Company's business. Management, after consultation with its legal counsel,
believes that the ultimate disposition of these matters will not have a material
effect upon the Company's consolidated results of operations or financial
position.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
Statements included in this Management's Discussion and Analysis of
Financial Condition and Results of Operations and other items of this Form 10-Q
may contain forward-looking statements. Such forward-looking statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such statements may relate but not be limited to projections
of revenues, income or loss, capital expenditures, plans for growth and future
operations, financing needs, as well as assumptions relating to the foregoing.
Forward-looking statements are inherently subject to risks and uncertainties,
some of which cannot be predicted or quantified. When used in this "Management's
Discussion and Analysis of Financial Condition and Results of Operations", and
16
elsewhere in this Form 10-Q the words "estimates", "expects", "anticipates",
"projects", "plans", "intends" and variations of such words and similar
expressions are intended to identify forward-looking statements that involve
risks and uncertainties. Future events and actual results could differ
materially from those set forth in, contemplated by or underlying the
forward-looking statements.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The Company has investments which by nature are subject to market risk. At
March 31, 2000, the Company had a total of $10.1 million, which are held as
municipal obligations and carry fixed interest rates. Approximately $9.8 million
mature between one and five years and carry a weighted average interest rate of
5.7 percent. The remaining balance of $0.3 million matures after five years and
carries a weighted average interest rate of 4.6 percent.
17
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a) No exhibits are required to be filed by Item 601 of Regulation S-K.
b) No reports were filed on Form 8-K during the quarter for which this
report is filed.
OTHER ITEMS
There were no other items to be reported under Part II of this report.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NATURE'S SUNSHINE PRODUCTS, INC.
Date: May 8, 2000 /s/ Daniel P. Howells
----------------------------------------
Daniel P. Howells, President & Chief
Executive Officer
Date: May 8, 2000 /s/ Craig D. Huff
----------------------------------------
Craig D. Huff, Chief Financial Officer
18