Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v2.4.0.8
Segment Information
 3 Months Ended
Mar. 31, 2014
Segment Information  
Segment Information

(8)                     Segment Information

 

The Company has three business segments. These business segments are components of the Company for which separate information is available that is evaluated regularly by the chief executive officer in deciding how to allocate resources and in assessing relative performance.

 

The Company has two business segments that operate under the Nature’s Sunshine Products brand and 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, Asia Pacific and Europe and NSP Russia, Central and Eastern Europe). The Company’s third business segment operates under the Synergy WorldWide brand, which distributes its products through different selling and Distributor compensation plans and has products with formulations that are sufficiently different from those of the NSP Americas, Asia Pacific and Europe and NSP Russia, Central and Eastern Europe to warrant accounting for these operations as a separate business segment. Net sales revenues for each segment have been reduced by intercompany sales as they are not included in the measure of segment profit or loss reviewed by the chief executive officer. The Company evaluates performance based on contribution margin (loss) by segment before consideration of certain inter-segment transfers and expenses.

 

Reportable business segment information is as follows:

 

 

 

Three Months Ended
March 31,

 

 

 

2014

 

2013

 

Net sales revenue:

 

 

 

 

 

NSP Americas, Asia Pacific and Europe

 

$

50,673

 

$

53,137

 

NSP Russia, Central and Eastern Europe

 

15,037

 

16,140

 

Synergy WorldWide

 

30,043

 

27,202

 

Total net sales revenue

 

95,753

 

96,479

 

 

 

 

 

 

 

Contribution margin (1):

 

 

 

 

 

NSP Americas, Asia Pacific and Europe

 

20,921

 

21,956

 

NSP Russia, Central and Eastern Europe

 

5,396

 

5,983

 

Synergy WorldWide

 

10,613

 

9,120

 

Total contribution margin

 

36,930

 

37,059

 

 

 

 

 

 

 

Selling, general and administrative

 

29,758

 

30,117

 

Operating income

 

7,172

 

6,942

 

 

 

 

 

 

 

Other income (expense), net

 

(1,115

)

330

 

Income before provision for income taxes

 

$

6,057

 

$

7,272

 

 

 

(1)              Contribution margin consists of net sales revenue less cost of sales and volume incentives expense.

 

From an individual country perspective, only the United States and South Korea comprise 10 percent or more of consolidated net sales revenue for the three-month periods ended March 31, 2014 and 2013 as follows:

 

 

 

Three Months Ended
March 31,

 

 

 

2014

 

2013

 

Net sales revenue:

 

 

 

 

 

United States

 

$

37,615

 

$

39,148

 

South Korea

 

12,371

 

6,721

 

Other

 

45,767

 

50,610

 

 

 

$

95,753

 

$

96,479

 

 

Revenue generated by each of the Company’s product lines is set forth below:

 

 

 

Three Months Ended
March 31,

 

 

 

2014

 

2013

 

NSP Americas, Asia Pacific and Europe:

 

 

 

 

 

General health

 

$

21,311

 

$

22,472

 

Immune

 

6,582

 

6,986

 

Cardiovascular

 

3,491

 

3,435

 

Digestive

 

14,911

 

15,446

 

Personal care

 

1,052

 

1,481

 

Weight management

 

3,326

 

3,317

 

 

 

50,673

 

53,137

 

NSP Russia, Eastern and Central Europe:

 

 

 

 

 

General health

 

$

5,545

 

$

5,760

 

Immune

 

1,968

 

2,101

 

Cardiovascular

 

938

 

1,138

 

Digestive

 

3,947

 

4,046

 

Personal care

 

1,868

 

2,359

 

Weight management

 

771

 

736

 

 

 

15,037

 

16,140

 

Synergy WorldWide:

 

 

 

 

 

General health

 

$

10,753

 

$

8,668

 

Immune

 

211

 

392

 

Cardiovascular

 

10,444

 

11,089

 

Digestive

 

5,017

 

4,864

 

Personal care

 

1,736

 

1,742

 

Weight management

 

1,882

 

447

 

 

 

30,043

 

27,202

 

 

 

$

95,753

 

$

96,479

 

 

From an individual country perspective, only the United States and Venezuela comprise 10 percent or more of consolidated property, plant and equipment as follows:

 

 

 

March 31,
2014

 

December 31,
2013

 

Property, plant and equipment:

 

 

 

 

 

United States

 

$

29,233

 

$

25,713

 

Venezuela

 

3,130

 

3,207

 

Other

 

2,920

 

3,102

 

Total property, plant and equipment

 

$

35,283

 

$

32,022