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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, 2001
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 Number 0-8707
NATURE'S SUNSHINE PRODUCTS, INC.
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(Exact Name of Registrant as Specified in Its Charter)
UTAH 87-0327982
---- ----------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
75 East 1700 South
Provo, Utah 84606
(Address of Principal Executive Offices, including Zip Code)
(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, no par value, outstanding as of May 11,
2001, was 16,247,085.
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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,
2001 2000
-------- -----------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 33,080 $ 28,803
Accounts receivable, net 7,907 7,326
Inventories 25,189 26,043
Deferred income tax assets 1,947 2,174
Prepaid expenses and other 7,324 8,631
-------- --------
Total Current Assets 75,447 72,977
PROPERTY, PLANT AND
EQUIPMENT, net 27,219 25,293
LONG-TERM INVESTMENTS 10,767 10,715
INTANGIBLE AND OTHER ASSETS, net 10,971 9,462
-------- --------
$124,404 $118,447
======== ========
The accompanying notes 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,
2001 2000
------------ ---------------
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Short-term debt $ 230 $ 385
Accounts payable 4,769 4,961
Accrued volume incentives 12,441 9,807
Accrued liabilities 12,688 12,060
Income taxes payable 2,181 2,194
---------- ----------
Total Current Liabilities 32,309 29,407
---------- ----------
LONG-TERM LIABILITIES:
Deferred income tax liabilities 4,456 2,814
Deferred compensation 1,399 1,342
---------- ----------
Total Long-Term Liabilities 5,855 4,156
---------- ----------
SHAREHOLDERS' EQUITY:
Common stock, no par value; 20,000 shares
authorized, 19,446 shares issued 37,413 37,435
Retained earnings 105,827 102,347
Treasury stock, at cost, 3,179 and 3,020
shares, respectively (44,489) (43,391)
Accumulated other comprehensive loss (12,511) (11,507)
---------- ----------
Total Shareholders' Equity 86,240 84,884
---------- ----------
$ 124,404 $ 118,447
========== ==========
The accompanying notes 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,
-----------------------------------------
2001 2000
---------- ----------
SALES $81,694 $81,426
---------- ----------
COSTS AND EXPENSES:
Cost of goods sold 14,613 14,365
Volume incentives 36,283 36,567
Selling, general and administrative 24,393 23,559
---------- ----------
75,289 74,491
---------- ----------
OPERATING INCOME 6,405 6,935
OTHER INCOME (EXPENSE), net (41) 404
---------- ----------
INCOME BEFORE PROVISION FOR INCOME TAXES 6,364 7,339
PROVISION FOR INCOME TAXES 2,342 2,843
---------- ----------
NET INCOME 4,022 4,496
---------- ----------
OTHER COMPREHENSIVE INCOME (LOSS), net of tax:
Foreign currency translation adjustments (1,006) 259
Unrealized holding gains on marketable securities 2 27
---------- ----------
(1,004) 286
---------- ----------
COMPREHENSIVE INCOME $ 3,018 $ 4,782
========== ==========
BASIC NET INCOME PER COMMON SHARE $ 0.25 $ 0.26
========== ==========
WEIGHTED AVERAGE BASIC SHARES 16,287 17,122
========== ===========
DILUTED NET INCOME PER COMMON SHARE $ 0.25 $ 0.26
========== ===========
WEIGHTED AVERAGE DILUTED SHARES 16,344 17,357
========== ===========
The accompanying notes 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,
-------------------------------------------
2001 2000
-------------- -------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 4,022 $ 4,496
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,860 1,404
(Gain) loss on sale of property, plant and equipment 9 (15)
Deferred income taxes (9) 343
Deferred compensation 57 148
Changes in assets and liabilities:
Accounts receivable, net (581) (2,858)
Inventories 854 (633)
Prepaid expenses and other assets 1,308 289
Accounts payable (192) 282
Accrued volume incentives 2,634 2,975
Accrued liabilities 628 2,289
Income taxes payable (13) 1,036
Cumulative currency translation adjustments (519) 272
--------- --------
Net Cash Provided by Operating Activities 10,058 10,028
--------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (3,274) (748)
Purchase of long-term investments, net (51) (24)
Payments received (advances) on long-term receivables 91 (388)
Purchase of other assets (278) (241)
Proceeds from sale of property, plant and equipment 35 24
--------- --------
Net Cash Used in Investing Activities (3,477) (1,377)
--------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of cash dividends (542) (571)
Purchase of treasury stock (1,136) (341)
Repayments of short-term debt (155) (154)
Proceeds from exercise of stock options 16 ---
--------- --------
Net Cash Used in Financing Activities (1,817) (1,066)
--------- --------
EFFECT OF EXCHANGE RATES ON CASH (487) (13)
--------- --------
NET INCREASE IN CASH AND
CASH EQUIVALENTS 4,277 7,572
CASH AND CASH EQUIVALENTS AT
BEGINNING OF THE PERIOD 28,803 18,433
--------- --------
CASH AND CASH EQUIVALENTS AT
END OF THE PERIOD $ 33,080 $ 26,005
========= ========
The accompanying notes 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 United States 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
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, 2001, and the results of operations and
cash flows 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 months ended March 31, 2001,
are not necessarily indicative of the results that may be expected for the year
ending December 31, 2001.
The Company suggests 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, 2000.
(2) INVENTORIES
Inventories consist of the following:
March 31, December 31,
2001 2000
------------ ---------------
Raw materials $ 6,916 $ 6,400
Work in process 1,344 1,345
Finished goods 16,929 18,298
-------- --------
$ 25,189 $ 26,043
======== ========
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, 2001, the Company had a total of 4,349 common stock
options outstanding. These options were all granted at fair market value and
have a weighted-average exercise price of $8.43 per share.
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
March 31, 2001 and 2000:
Net Income Shares Per Share
(Numerator) (Denominator) Amount
-------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED MARCH 31, 2001
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Basic EPS $4,022 16,287 $0.25
Effect of stock options -- 57
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Diluted EPS $4,022 16,344 $0.25
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THREE MONTHS ENDED MARCH 31, 2000
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Basic EPS $4,496 17,122 $0.26
Effect of stock options -- 235
-------------------------------------------------------------------------------------------------------------
Diluted EPS $4,496 17,357 $0.26
-------------------------------------------------------------------------------------------------------------
For the three months ended March 31, 2001 and 2000, there were
outstanding options to purchase 1,246 and 647 shares of common stock,
respectively, that were not included in the computation of Diluted EPS, as their
effect would have been anti-dilutive.
7
(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 23, 2001, to shareholders of record on May 3, 2001, and is
payable on May 11, 2001.
For the three months ended March 31, 2001, the Company repurchased
approximately 162 shares of its common stock. On February 6, 2001, the Board of
Directors authorized an additional repurchase of up to 1,000 shares of the
Company's common stock as market conditions warrant. As of March 31, 2001, the
Company had not repurchased any shares of common stock under this approval.
(5) ACCUMULATED OTHER COMPREHENSIVE LOSS
The composition of accumulated other comprehensive loss, net of tax, is
as follows:
- -----------------------------------------------------------------------------------------------------------------------
Unrealized Total
Gains on Accumulated
Foreign Currency Available-for Sale Other Comprehensive
Adjustments Securities Loss
- -----------------------------------------------------------------------------------------------------------------------
Balance as of December 31, 2000 $(11,710) $203 $(11,507)
Current period change (1,006) 2 (1,004)
- -----------------------------------------------------------------------------------------------------------------------
Balance as of March 31, 2001 $(12,716) $205 $(12,511)
- -----------------------------------------------------------------------------------------------------------------------
(6) 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
assess performance. The Company evaluates performance based on operating income
(loss).
The Company's operating segments are based on geographic operations.
Intersegment sales are eliminated in consolidation and are not material.
8
Operating segment information for the three months ended March 31, 2001
and 2000, is as follows:
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2001 2000
- -----------------------------------------------------------------------------------------------------------
Sales Revenue:
United States $46,044 $49,416
Latin America 19,864 18,784
Asia Pacific 10,264 8,545
Other 5,522 4,681
- -----------------------------------------------------------------------------------------------------------
81,694 81,426
- -----------------------------------------------------------------------------------------------------------
Operating Expenses:
United States 41,596 44,171
Latin America 18,361 17,845
Asia Pacific 10,290 8,218
Other 5,042 4,257
- -----------------------------------------------------------------------------------------------------------
75,289 74,491
- -----------------------------------------------------------------------------------------------------------
Operating Income:
United States 4,448 5,245
Latin America 1,503 939
Asia Pacific (26) 327
Other 480 424
- -----------------------------------------------------------------------------------------------------------
6,405 6,935
Other Income (Expense) (41) 404
- -----------------------------------------------------------------------------------------------------------
Income Before Provision for Income Taxes $ 6,364 $ 7,339
===========================================================================================================
Segment assets as of March 31, 2001 and December 31, 2000, are as
follows:
- -----------------------------------------------------------------------------------------------------------
March 31, December 31,
2001 2000
- -----------------------------------------------------------------------------------------------------------
Assets
United States $ 71,911 $ 66,232
Latin America 32,342 29,434
Asia Pacific 15,097 17,858
Other 5,054 4,923
- -----------------------------------------------------------------------------------------------------------
$ 124,404 $ 118,447
===========================================================================================================
9
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, 2000.
RESULTS OF OPERATIONS
The following table identifies (i) the relationship that net 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
Items as a Percent of Sales Three Months Ended March 31
- ------------------------------------ 2001 to 2000
Three Months Ended ---------------------------------
March 31 Amount of Percent
- ------------------------------------ Income and Increase of
2001 2000 Expense Items (Decrease) Change
---- ----- ------------- ----------- -------
100.0% 100.0% Sales $ 268 0.3%
----- ----- -----
17.9 17.7 Cost of goods sold 248 1.7
44.4 44.9 Volume incentives (284) (0.8)
29.9 28.9 SG&A expenses 834 3.5
------ ------ -----
92.2 91.5 Total operating expenses 798 1.1
------ ------ ----- --
7.8 8.5 Operating income (530) (7.6)
--- 0.5 Other income, net (445) (110.1)
-------- ------ -----
Income before provision
7.8 9.0 for income taxes (975) (13.3)
2.9 3.5 Provision for income taxes (501) (17.6)
------- ------ -----
4.9% 5.5% Net income $(474) (10.5)%
======= ====== =====
10
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (CONTINUED)
SALES
Sales for the three months ended March 31, 2001, were $81.7 million
compared to $81.4 million compared to the same period in the prior year, an
increase of approximately 0.3 percent. The increase in sales for the three
months ended March 31, 2001, is attributable to strong sales increases
throughout the Company's international operations offset, in part, by decreased
sales in the United States.
Sales in the Company's United States operation for the three months
ended March 31, 2001, were $46.0 million, a decrease of approximately 7 percent
compared to the same period in the prior year. Increased product competition in
the nutritional supplement market, as well as increased competition for
Distributors caused the sales decrease in the United States. The Company expects
competition to remain strong for the foreseeable future.
The Company's international operations reported record sales of $35.7
million for the three months ended March 31, 2001, an increase of approximately
11 percent compared to the same period in the prior year. International sales
accounted for approximately 44 percent of consolidated sales.
Sales in Latin America were $19.9 million for the three months ended
March 31, 2001, an increase of 5.8 percent compared to the same period in the
prior year. The sales growth experienced in Latin America was primarily due to
increased sales in Mexico, Venezuela and Ecuador.
Sales in Asia Pacific were $10.3 million for the three months ended
March 31, 2001, an increase of 20.2 percent compared to the same period in the
prior year. The sales growth experienced in the Company's Asia Pacific markets
is the result of continued sales increases experienced in South Korea, as well
as sales increases generated from Synergy Japan, which the Company acquired on
October 31, 2000.
Sales in the Company's other markets were $5.5 million for the three
months ended March 31, 2001, an increase of 18 percent compared to the same
period in the prior year. The sales growth
11
experienced in the Company's other markets is primarily due to the results of
its operations in Russia and 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 March 31, 2001 was approximately 18,900 compared to approximately
16,100 at December 31, 2000. The number of Distributors at March 31, 2001 was
approximately 585,000 compared to approximately 589,000 at December 31, 2000.
COST OF GOODS SOLD
For the three months ended March 31, 2001, 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 was primarily
the result of the currency devaluations in certain international markets, as
well as the increase in international sales where cost of goods sold is
slightly higher than in the Company's United States operation. Management
expects cost of goods sold to remain relatively constant as a percent of sales
during the remainder of 2001, compared to the three months ended March 31, 2001.
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, on a percentage basis, by product due to the Company's
pricing policies. For the three months ended March 31, 2001, the Company
experienced a slight decrease in volume incentives, as a percentage of sales,
compared to the same period the prior year. The decrease in volume incentives is
primarily the result of the increase in international sales
12
where volume incentives are lower than in the United States operation.
Management expects volume incentives to remain relatively constant, as a
percent of sales, during the remainder of 2001, compared to the three months
ended March 31, 2001.
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
Selling, general and administrative expenses for the three months ended
March 31, 2001, increased as a percent of sales compared to the same period of
the prior year as a result of the decrease in sales in the Company's United
States market and increased expenditures associated with the integration of
Synergy. Management expects selling, general and administrative expenses to
decrease slightly as a percent of sales for the remainder of 2001, compared to
the three months ended March 31, 2001.
SEGMENT INFORMATION
See information included in the condensed consolidated financial
statements under Item 1 Note 5.
BALANCE SHEET
ACCRUED VOLUME INCENTIVES
Accrued volume incentives increased approximately $2.6 million as of
March 31, 2001, compared to December 31, 2000, as a result of increased domestic
sales during March 2001 in anticipation of a price increase of approximately 1.5
percent which became effective April 1, 2001.
LIQUIDITY AND CAPITAL RESOURCES
Cash and cash equivalents increased approximately $4.3 million for the
three months ended March 31, 2001 compared to December 31, 2000. The increase in
cash and cash equivalents is primarily the result of net income as well as the
increases in accrued volume incentives and other accrued liabilities. During the
three months ended March 31, 2001, cash totaling $1.1 million was used to
repurchase approximately 162 shares of common stock.
13
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, 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 operating activities, 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.
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. Construction began during the third quarter of 2000.
The cost of this project is expected to be approximately $14.0 million of which
$4.0 million had been paid as of March 31, 2001. Completion of this project is
scheduled for the second quarter of 2002, and the Company anticipates this
expansion as well as other capital projects to be funded from working capital.
On May 10, 2001, the Company announced that it had entered into an
agreement with Cetalon Corporation to manufacture a proprietary, uniquely
formulated, line of herbs and vitamins. Terms of the agreement include
Innovative Botanical Solutions acquiring approximately 460,000 Cetalon common
shares, or approximately 10 percent of the company's outstanding stock.
Innovative Botanical Solutions also has the option to invest an additional
$1.5 million in Cetalon. In exchange, Nature's Sunshine granted a warrant to
Cetalon to purchase up to 5 percent of Nature's Sunshine's common stock at
$11.13 per share, of which 20 percent of the warrant becomes exercisable each
year that Cetalon meets its minimum annual product purchase requirements.
LEGAL PROCEEDINGS
The Company is a defendant in various lawsuits which are incidental to
the Company's business. Management, after consultation with 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
Management's Discussion and Analysis of Financial Condition and Results
of Operations and other sections 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,
14
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 "Management's Discussion and
Analysis of Financial Condition and Results of Operations", and 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 conducts its business in several countries and intends to
continue to expand its foreign operations. Sales revenue, operating income and
net income are affected by fluctuations in currency exchange rates, interest
rates and other uncertainties inherent in doing business and selling product in
more than one currency. In addition, the Company's operations are exposed to
risks associated with changes in social, political and economic conditions
inherent in foreign operations, including changes in the laws and policies that
govern foreign investment in countries where it has operations as well as, to a
lesser extent, changes in United States laws and regulations relating to foreign
trade and investment.
FOREIGN CURRENCY RISK
During the three months ended March 31, 2001, approximately 44 percent of
the Company's revenue and expenses were realized outside of the United States.
Inventory purchases are transacted primarily in U.S. dollars from vendors
located in the United States. The local currency of each international
subsidiary is considered the functional currency, and all sales and expenses are
translated at average exchange rates for the reported periods. Therefore, the
Company's sales and expenses will be positively impacted by a weakening of the
U.S. dollar and will be negatively impacted by a
15
strengthening of the U.S. dollar. Given the uncertainty of exchange rate
fluctuations, the Company cannot estimate the affect of these fluctuations on
the Company's future business, product pricing, results of operations or
financial condition. Changes in currency exchange rates affect the relative
prices at which the Company sells its products. The Company regularly
monitors its foreign currency risks and periodically takes measures to reduce
the impact of foreign exchange rate fluctuations on the Company's operating
results. The Company does not use derivative instruments for hedging, trading
or speculating on foreign exchange rate fluctuations.
The following table sets forth average currency exchange rates of one
U.S. dollar into local currency for each of the countries in which sales revenue
exceeded $10.0 million during any of the previous two years.
- ------------------------------------------------------------------------------
Three Months Ended March 31 2001 2000
- ------------------------------------------------------------------------------
Brazil 2.0 1.8
Japan 118.1 107.0
Mexico 9.7 9.4
South Korea 1,270.6 1,124.9
Venezuela 702.2 659.2
- ------------------------------------------------------------------------------
INTEREST RATE RISK
The Company has investments, which by nature are subject to market
risk. At March 31, 2001, the Company had investments totaling $15.9 million of
which $7.3 million were equity investments and $8.6 million were municipal
obligations, which carry a fixed interest rate of 5.4 percent and mature between
one and five years. A hypothetical one percent change in interest rates would
not have a material affect on the Company's liquidity, financial condition or
results of operations.
16
PART II OTHER INFORMATION
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 11, 2001 /s/ Daniel P. Howells
----------------------------------------
Daniel P. Howells, President &
Chief Executive Officer
Date: May 11, 2001 /s/ Craig D. Huff
----------------------------------------
Craig D. Huff, Chief Financial Officer
17