Segment Information (Tables)
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9 Months Ended |
Sep. 30, 2018 |
|---|
| Segment Reporting [Abstract] |
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| Schedule of reportable business segment information |
Reportable business segment information is as follows (dollar amounts in thousands):
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net sales: |
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|
|
|
|
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NSP Americas |
$ |
38,512 |
|
|
$ |
41,301 |
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|
$ |
118,769 |
|
|
$ |
125,367 |
|
NSP Russia, Central and Eastern Europe |
8,841 |
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|
7,681 |
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|
27,799 |
|
|
23,286 |
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Synergy WorldWide |
34,497 |
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|
34,470 |
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|
103,034 |
|
|
92,146 |
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NSP China |
6,978 |
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|
5,849 |
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|
17,834 |
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|
12,944 |
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Total net sales |
88,828 |
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|
89,301 |
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|
267,436 |
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|
253,743 |
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Contribution margin (1): |
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NSP Americas |
17,006 |
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|
17,764 |
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|
49,530 |
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|
53,454 |
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NSP Russia, Central and Eastern Europe |
3,098 |
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|
2,592 |
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|
9,437 |
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|
6,173 |
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Synergy WorldWide |
9,652 |
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|
10,160 |
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|
30,915 |
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|
27,769 |
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NSP China |
5,400 |
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|
4,564 |
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|
14,037 |
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|
11,930 |
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Total contribution margin |
35,156 |
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|
35,080 |
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|
103,919 |
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|
99,326 |
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Selling, general and administrative expenses (2) |
31,643 |
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|
32,926 |
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|
97,339 |
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|
95,098 |
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Operating income |
3,513 |
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|
2,154 |
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|
6,580 |
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|
4,228 |
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Other income (loss), net |
(353 |
) |
|
193 |
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(1,420 |
) |
|
1,909 |
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Income before provision for income taxes |
$ |
3,160 |
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$ |
2,347 |
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$ |
5,160 |
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|
$ |
6,137 |
|
_________________________________________
(1) Contribution margin consists of net sales less cost of sales and volume incentives expense.
(2) Service fees in the NSP China segment related to sales in China, occurring after the Company’s receipt of its direct selling license and pre-opening product sales through Hong Kong, totaled $2.7 million and $6.7 million for the three and nine-month periods ended September 30, 2018, respectively, compared to $2.1 million and $4.7 million for the three and nine-month periods ended September 30, 2017. These service fees are included in the Company’s selling, general and administrative expenses.
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| Schedule of consolidated net sales revenue by geographical locations |
From an individual country perspective, the United States and South Korea comprise 10 percent or more of consolidated net sales for the three and nine-month periods ended September 30, 2018 and 2017, as follows (dollar amounts in thousands):
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|
Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Net sales: |
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United States |
$ |
33,182 |
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$ |
35,124 |
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$ |
101,322 |
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$ |
106,664 |
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South Korea |
18,271 |
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|
14,371 |
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|
52,463 |
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|
38,203 |
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Other |
37,375 |
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|
39,806 |
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|
113,651 |
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|
108,876 |
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|
$ |
88,828 |
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|
$ |
89,301 |
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$ |
267,436 |
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$ |
253,743 |
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| Schedule of revenue generated by each of the Company's product lines |
Net sales generated by each of the Company’s product lines is set forth below (dollar amounts in thousands):
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Three Months Ended
September 30, |
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Nine Months Ended
September 30, |
|
2018 |
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2017 |
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2018 |
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2017 |
NSP Americas: |
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General health |
$ |
16,706 |
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$ |
18,211 |
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$ |
51,506 |
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$ |
56,258 |
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Immune |
4,304 |
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|
4,938 |
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|
13,693 |
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|
13,180 |
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Cardiovascular |
3,000 |
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|
3,434 |
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|
8,974 |
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|
9,570 |
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Digestive |
11,013 |
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|
11,084 |
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|
33,967 |
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|
34,892 |
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Personal care |
1,735 |
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|
2,114 |
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|
5,070 |
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|
5,487 |
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Weight management |
1,754 |
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|
1,520 |
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|
5,559 |
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|
5,980 |
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|
38,512 |
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41,301 |
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|
118,769 |
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|
125,367 |
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NSP Russia, Eastern and Central Europe: |
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General health |
$ |
3,632 |
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$ |
3,449 |
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$ |
11,883 |
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$ |
10,594 |
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Immune |
886 |
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|
861 |
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|
2,808 |
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|
2,397 |
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Cardiovascular |
681 |
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|
592 |
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|
2,048 |
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|
1,699 |
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Digestive |
2,196 |
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|
2,110 |
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|
7,137 |
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|
6,348 |
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Personal care |
1,222 |
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|
472 |
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|
3,084 |
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|
1,556 |
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Weight management |
224 |
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|
197 |
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|
839 |
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|
692 |
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8,841 |
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7,681 |
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27,799 |
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|
23,286 |
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Synergy WorldWide: |
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General health |
$ |
10,544 |
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$ |
9,268 |
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$ |
29,747 |
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$ |
23,579 |
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Immune |
57 |
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|
119 |
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|
346 |
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|
357 |
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Cardiovascular |
14,798 |
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14,369 |
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43,511 |
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|
38,075 |
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Digestive |
3,803 |
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4,428 |
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|
11,665 |
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12,047 |
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Personal care |
1,520 |
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1,891 |
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|
5,968 |
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5,884 |
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Weight management |
3,775 |
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|
4,395 |
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|
11,797 |
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12,204 |
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34,497 |
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34,470 |
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|
103,034 |
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|
92,146 |
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NSP China: |
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General health |
$ |
627 |
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$ |
1,151 |
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$ |
1,764 |
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$ |
2,470 |
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Immune |
156 |
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|
179 |
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|
312 |
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|
310 |
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Cardiovascular |
850 |
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|
911 |
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|
3,259 |
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|
2,368 |
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Digestive |
3,032 |
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|
2,433 |
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|
8,357 |
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|
5,557 |
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Personal care |
1,128 |
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|
115 |
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|
2,388 |
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|
184 |
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Weight management |
1,185 |
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|
1,060 |
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1,754 |
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|
2,055 |
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|
6,978 |
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5,849 |
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17,834 |
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|
12,944 |
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$ |
88,828 |
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$ |
89,301 |
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$ |
267,436 |
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$ |
253,743 |
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| Schedule of consolidated property, plant and equipment by geographical locations |
From an individual country perspective, only the United States comprised 10 percent or more of consolidated property, plant and equipment as follows (dollar amounts in thousands):
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September 30,
2018 |
|
December 31,
2017 |
Property, plant and equipment: |
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United States |
$ |
62,504 |
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$ |
65,928 |
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Other |
3,027 |
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|
3,178 |
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Total property, plant and equipment |
$ |
65,531 |
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$ |
69,106 |
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