☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _____________ TO _____________ |
NU SKIN ENTERPRISES, INC. | ||
(Exact name of registrant as specified in its charter) |
Delaware | 87-0565309 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
75 West Center Street Provo, Utah 84601 | ||
(Address of principal executive offices, including zip code) |
(801) 345-1000 | ||
(Registrant’s telephone number, including area code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
Class A Common Stock, $.001 par value | NUS | New York Stock Exchange |
Large accelerated filer ☑ | Accelerated filer ☐ |
Non-accelerated filer ☐ | Smaller reporting company ☐ |
Emerging growth company ☐ |
Page | |||
Part I. | Financial Information | ||
Item 1. | |||
1 | |||
2 | |||
3 | |||
4 | |||
5 | |||
6 | |||
Item 2. | 17 | ||
Item 3. | 25 | ||
Item 4. | 25 | ||
Part II. | Other Information | ||
Item 1. | 26 | ||
Item 1A. | 26 | ||
Item 2. | 26 | ||
Item 3. | 26 | ||
Item 4. | 26 | ||
Item 5. | 26 | ||
Item 6. | 27 | ||
28 |
March 31, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | |||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | 302,216 | $ | 339,593 | $ | 229,941 | $ | 264,725 | ||||||||
Current investments | 15,313 | 15,221 | 16,774 | 13,784 | ||||||||||||
Accounts receivable, net | 52,171 | 41,299 | 60,008 | 47,360 | ||||||||||||
Inventories, net | 381,585 | 399,931 | 366,537 | 346,183 | ||||||||||||
Prepaid expenses and other | 97,923 | 76,906 | 100,302 | 87,816 | ||||||||||||
Total current assets | 849,208 | 872,950 | 773,562 | 759,868 | ||||||||||||
Property and equipment, net | 448,822 | 453,674 | 437,986 | 444,806 | ||||||||||||
Operating lease right-of-use assets | 132,949 | 120,973 | 98,683 | 98,734 | ||||||||||||
Goodwill | 206,432 | 206,432 | 206,432 | 206,432 | ||||||||||||
Other intangible assets, net | 74,874 | 76,991 | 64,711 | 66,701 | ||||||||||||
Other assets | 179,964 | 175,460 | 243,271 | 244,429 | ||||||||||||
Total assets | $ | 1,892,249 | $ | 1,906,480 | $ | 1,824,645 | $ | 1,820,970 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | $ | 40,719 | $ | 49,993 | $ | 49,494 | $ | 53,963 | ||||||||
Accrued expenses | 343,737 | 372,201 | 275,774 | 280,280 | ||||||||||||
Current portion of long-term debt | 110,000 | 107,500 | 47,500 | 25,000 | ||||||||||||
Total current liabilities | 494,456 | 529,694 | 372,768 | 359,243 | ||||||||||||
Operating lease liabilities | 100,844 | 88,759 | 78,776 | 76,540 | ||||||||||||
Long-term debt | 258,995 | 268,781 | 372,609 | 377,466 | ||||||||||||
Other liabilities | 103,754 | 106,474 | 107,522 | 110,425 | ||||||||||||
Total liabilities | 958,049 | 993,708 | 931,675 | 923,674 | ||||||||||||
�� | ||||||||||||||||
Commitments and contingencies (Notes 5 and 11) | 0 | 0 | ||||||||||||||
Stockholders’ equity: | ||||||||||||||||
Class A common stock – 500 million shares authorized, $0.001 par value, 90.6 million shares issued | 91 | 91 | 91 | 91 | ||||||||||||
Additional paid-in capital | 599,258 | 601,703 | 611,483 | 613,278 | ||||||||||||
Treasury stock, at cost – 40.4 million and 40.7 million shares | (1,526,778 | ) | (1,526,860 | ) | ||||||||||||
Treasury stock, at cost – 40.7 million and 41.1 million shares | (1,559,080 | ) | (1,569,061 | ) | ||||||||||||
Accumulated other comprehensive loss | (69,528 | ) | (73,896 | ) | (91,005 | ) | (86,509 | ) | ||||||||
Retained earnings | 1,931,157 | 1,911,734 | 1,931,481 | 1,939,497 | ||||||||||||
Total stockholders’ equity | 934,200 | 912,772 | 892,970 | 897,296 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 1,892,249 | $ | 1,906,480 | $ | 1,824,645 | $ | 1,820,970 |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Revenue | $ | 604,899 | $ | 677,026 | $ | 481,462 | $ | 604,899 | ||||||||
Cost of sales | 161,499 | 170,566 | 133,588 | 161,499 | ||||||||||||
Gross profit | 443,400 | 506,460 | 347,874 | 443,400 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling expenses | 242,699 | 275,965 | 188,124 | 242,699 | ||||||||||||
General and administrative expenses | 148,556 | 167,582 | 133,899 | 148,556 | ||||||||||||
Restructuring and impairment expenses | 9,787 | — | ||||||||||||||
Total operating expenses | 391,255 | 443,547 | 331,810 | 391,255 | ||||||||||||
Operating income | 52,145 | 62,913 | 16,064 | 52,145 | ||||||||||||
Other income (expense), net | (1,453 | ) | 1,582 | (1,476 | ) | (1,453 | ) | |||||||||
Income before provision for income taxes | 50,692 | 64,495 | 14,588 | 50,692 | ||||||||||||
Provision for income taxes | 11,976 | 17,065 | 3,212 | 11,976 | ||||||||||||
Net income | $ | 38,716 | $ | 47,430 | $ | 11,376 | $ | 38,716 | ||||||||
Net income per share (Note 6): | ||||||||||||||||
Basic | $ | 0.77 | $ | 0.94 | $ | 0.23 | $ | 0.77 | ||||||||
Diluted | $ | 0.76 | $ | 0.91 | $ | 0.23 | $ | 0.76 | ||||||||
Weighted-average common shares outstanding (000s): | ||||||||||||||||
Basic | 49,991 | 50,706 | 49,644 | 49,991 | ||||||||||||
Diluted | 51,066 | 52,172 | 50,058 | 51,066 |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Net income | $ | 38,716 | $ | 47,430 | $ | 11,376 | $ | 38,716 | ||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||||
Foreign currency translation adjustment, net of taxes of $(7) and $(2) for the three months ended March 31, 2022 and 2021, respectively | (1,960 | ) | (9,919 | ) | ||||||||||||
Net unrealized gains/(losses) on foreign currency cash flow hedges, net of taxes of $(1,743) and $(839) for the three months ended March 31, 2022 and 2021, respectively | 6,314 | 3,040 | ||||||||||||||
Reclassification adjustment for realized losses/(gains) in current earnings, net of taxes of $(4) and $(6) for the three months ended March 31, 2022 and 2021, respectively | 14 | 21 | ||||||||||||||
Foreign currency translation adjustment, net of taxes of $(68) and $(7) for the three months ended March 31, 2023 and 2022, respectively | (2,139 | ) | (1,960 | ) | ||||||||||||
Net unrealized gains/(losses) on cash flow hedges, net of taxes of $175 and $(1,743) for the three months ended March 31, 2023 and 2022, respectively | (635 | ) | 6,314 | |||||||||||||
Reclassification adjustment for realized losses/(gains) in current earnings, net of taxes of $475 and $(4) for the three months ended March 31, 2023 and 2022, respectively | (1,722 | ) | 14 | |||||||||||||
4,368 | (6,858 | ) | (4,496 | ) | 4,368 | |||||||||||
Comprehensive income | $ | 43,084 | $ | 40,572 | $ | 6,880 | $ | 43,084 |
For the Three Months Ended March 31, 2022 | For the Three Months Ended March 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total | Class A Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | 91 | $ | 601,703 | $ | (1,526,860 | ) | $ | (73,896 | ) | $ | 1,911,734 | $ | 912,772 | ||||||||||||||||||||||||||||||||||
Balance at January 1, 2023 | $ | 91 | $ | 613,278 | $ | (1,569,061 | ) | $ | (86,509 | ) | $ | 1,939,497 | $ | 897,296 | ||||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 0 | 38,716 | 38,716 | — | — | — | — | 11,376 | 11,376 | ||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | 0 | 0 | 0 | 4,368 | 0 | 4,368 | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (4,496 | ) | — | (4,496 | ) | ||||||||||||||||||||||||||||||||||||||||
Repurchase of Class A common stock (Note 6) | 0 | 0 | (10,006 | ) | 0 | 0 | (10,006 | ) | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||
Exercise of employee stock options (0.4 million shares)/vesting of stock awards | 0 | (6,572 | ) | 10,088 | 0 | 0 | 3,516 | — | (5,797 | ) | 9,981 | — | — | 4,184 | ||||||||||||||||||||||||||||||||||
Stock-based compensation | 0 | 4,127 | 0 | 0 | 0 | 4,127 | — | 4,002 | — | — | — | 4,002 | ||||||||||||||||||||||||||||||||||||
Cash dividends | 0 | 0 | 0 | 0 | (19,293 | ) | (19,293 | ) | — | — | — | — | (19,392 | ) | (19,392 | ) | ||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | 91 | $ | 599,258 | $ | (1,526,778 | ) | $ | (69,528 | ) | $ | 1,931,157 | $ | 934,200 | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2023 | $ | 91 | $ | 611,483 | $ | (1,559,080 | ) | $ | (91,005 | ) | $ | 1,931,481 | $ | 892,970 |
For the Three Months Ended March 31, 2021 | For the Three Months Ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Class A Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total | Class A Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||||||||||||
Balance at January 1, 2021 | $ | 91 | $ | 579,801 | $ | (1,461,593 | ) | $ | (64,768 | ) | $ | 1,840,740 | $ | 894,271 | ||||||||||||||||||||||||||||||||||
Balance at January 1, 2022 | $ | 91 | $ | 601,703 | $ | (1,526,860 | ) | $ | (73,896 | ) | $ | 1,911,734 | $ | 912,772 | ||||||||||||||||||||||||||||||||||
Net income | 0 | 0 | 0 | 0 | 47,430 | 47,430 | — | — | — | — | 38,716 | 38,716 | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss, net of tax | 0 | 0 | 0 | (6,858 | ) | 0 | (6,858 | ) | ||||||||||||||||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | 4,368 | — | 4,368 | ||||||||||||||||||||||||||||||||||||||||||
Repurchase of Class A common stock (Note 6) | 0 | 0 | (50,406 | ) | 0 | 0 | (50,406 | ) | — | — | (10,006 | ) | — | — | (10,006 | ) | ||||||||||||||||||||||||||||||||
Exercise of employee stock options (0.3 million shares)/vesting of stock awards | 0 | (7,400 | ) | 6,923 | 0 | 0 | (477 | ) | ||||||||||||||||||||||||||||||||||||||||
Exercise of employee stock options (0.4 million shares)/vesting of stock awards | — | (6,572 | ) | 10,088 | — | — | 3,516 | |||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | 0 | 6,803 | 0 | 0 | 0 | 6,803 | — | 4,127 | — | — | — | 4,127 | ||||||||||||||||||||||||||||||||||||
Cash dividends | 0 | 0 | 0 | 0 | (19,289 | ) | (19,289 | ) | — | — | — | — | (19,293 | ) | (19,293 | ) | ||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | 91 | $ | 579,204 | $ | (1,505,076 | ) | $ | (71,626 | ) | $ | 1,868,881 | $ | 871,474 | ||||||||||||||||||||||||||||||||||
Balance at March 31, 2022 | $ | 91 | $ | 599,258 | $ | (1,526,778 | ) | $ | (69,528 | ) | $ | 1,931,157 | $ | 934,200 |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 38,716 | $ | 47,430 | $ | 11,376 | $ | 38,716 | ||||||||
Adjustments to reconcile net income to cash flows from operating activities: | ||||||||||||||||
Depreciation and amortization | 17,130 | 18,344 | 16,983 | 17,130 | ||||||||||||
Non-cash lease expense | 10,581 | 13,298 | 8,566 | 10,581 | ||||||||||||
Stock-based compensation | 4,127 | 6,803 | 4,002 | 4,127 | ||||||||||||
Foreign currency losses | 370 | 970 | ||||||||||||||
Loss on disposal of assets | 517 | 506 | ||||||||||||||
Foreign currency (gains)/losses | (2,102 | ) | 370 | |||||||||||||
(Gain)/loss on disposal of assets | (17 | ) | 517 | |||||||||||||
Deferred taxes | 3,292 | 3,363 | (72 | ) | 3,292 | |||||||||||
Changes in operating assets and liabilities: | ||||||||||||||||
Accounts receivable, net | (12,463 | ) | 436 | (15,336 | ) | (12,463 | ) | |||||||||
Inventories, net | 17,212 | (53,776 | ) | (19,734 | ) | 17,212 | ||||||||||
Prepaid expenses and other | (18,110 | ) | (19,241 | ) | (12,895 | ) | (18,110 | ) | ||||||||
Other assets | 941 | (2,786 | ) | (864 | ) | 941 | ||||||||||
Accounts payable | (5,663 | ) | 1,869 | (4,495 | ) | (5,663 | ) | |||||||||
Accrued expenses | (40,270 | ) | (36,779 | ) | (4,129 | ) | (40,270 | ) | ||||||||
Other liabilities | (8,839 | ) | 707 | (3,360 | ) | (8,839 | ) | |||||||||
Net cash provided by/(used in) operating activities | 7,541 | (18,856 | ) | |||||||||||||
Net cash (used in) / provided by operating activities | (22,077 | ) | 7,541 | |||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Purchases of property and equipment | (10,279 | ) | (19,373 | ) | (11,487 | ) | (10,279 | ) | ||||||||
Proceeds on investment sales | 4,076 | 7,550 | 4,986 | 4,076 | ||||||||||||
Purchases of investments | (3,930 | ) | (6,973 | ) | (8,195 | ) | (3,930 | ) | ||||||||
Net cash used in investing activities | (10,133 | ) | (18,796 | ) | (14,696 | ) | (10,133 | ) | ||||||||
Cash flows from financing activities: | ||||||||||||||||
Exercise of employee stock options and taxes paid related to the net shares settlement of stock awards | 3,516 | (477 | ) | 4,184 | 3,516 | |||||||||||
Payment of cash dividends | (19,293 | ) | (19,289 | ) | (19,392 | ) | (19,293 | ) | ||||||||
Repurchases of shares of common stock | (10,006 | ) | (50,406 | ) | — | (10,006 | ) | |||||||||
Finance lease principal payments | (476 | ) | (483 | ) | (912 | ) | (476 | ) | ||||||||
Payments of debt | (7,500 | ) | (17,500 | ) | (2,500 | ) | (7,500 | ) | ||||||||
Proceeds from debt | 0 | 70,000 | 20,000 | — | ||||||||||||
Net cash used in financing activities | (33,759 | ) | (18,155 | ) | ||||||||||||
Net cash provided by/(used in) financing activities | 1,380 | (33,759 | ) | |||||||||||||
Effect of exchange rate changes on cash | (1,026 | ) | (7,777 | ) | 609 | (1,026 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | (37,377 | ) | (63,584 | ) | ||||||||||||
Net decrease in cash and cash equivalents | (34,784 | ) | (37,377 | ) | ||||||||||||
Cash and cash equivalents, beginning of period | 339,593 | 402,683 | 264,725 | 339,593 | ||||||||||||
Cash and cash equivalents, end of period | $ | 302,216 | $ | 339,099 | $ | 229,941 | $ | 302,216 |
1. | The Company |
2. | Summary of Significant Accounting Policies |
March 31, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | |||||||||||||
Raw materials | $ | 163,746 | $ | 179,891 | $ | 175,579 | $ | 163,797 | ||||||||
Finished goods | 217,839 | 220,040 | 190,958 | 182,386 | ||||||||||||
Total Inventory, net | $ | 381,585 | $ | 399,931 | $ | 366,537 | $ | 346,183 |
3. | Goodwill |
March 31, 2022 | December 31, 2021 | March 31, 2023 | December 31, 2022 | |||||||||||||
Nu Skin | ||||||||||||||||
Americas | $ | 9,449 | $ | 9,449 | ||||||||||||
South Korea | 29,261 | 29,261 | ||||||||||||||
Mainland China | $ | 32,179 | $ | 32,179 | 32,179 | 32,179 | ||||||||||
Americas | 9,449 | 9,449 | ||||||||||||||
Southeast Asia/Pacific | 18,537 | 18,537 | 18,537 | 18,537 | ||||||||||||
South Korea | 29,261 | 29,261 | ||||||||||||||
Japan | 16,019 | 16,019 | 16,019 | 16,019 | ||||||||||||
EMEA | 2,875 | 2,875 | 2,875 | 2,875 | ||||||||||||
Hong Kong/Taiwan | 6,634 | 6,634 | 6,634 | 6,634 | ||||||||||||
Rhyz Investments | ||||||||||||||||
Manufacturing | 78,875 | 78,875 | 78,875 | 78,875 | ||||||||||||
Rhyz Other | 12,603 | 12,603 | 12,603 | 12,603 | ||||||||||||
Total | $ | 206,432 | $ | 206,432 | $ | 206,432 | $ | 206,432 |
4. | Debt |
Facility or Arrangement | Original Principal Amount | Balance as of March 31, 2023 (1)(2) | Balance as of December 31, 2022 (1)(2) | Interest Rate | Repayment Terms | ||||||||
Credit Agreement term loan facility | $ | 400.0 million | $ | $ | Variable 30 day: | ||||||||
Credit Agreement revolving credit facility | $ | $10.0 million | Variable 30 day: | Revolving line of credit expires |
(1) | As of March 31, |
(2) | The carrying value of the debt reflects the amounts stated in the above table, less debt issuance costs of |
5. | Leases |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Operating lease expense | ||||||||||||||||
Operating lease cost | $ | 10,439 | $ | 12,815 | $ | 8,161 | $ | 10,439 | ||||||||
Variable lease cost | 1,157 | 1,368 | 1,075 | 1,157 | ||||||||||||
Short-term lease cost | 30 | 339 | — | 30 | ||||||||||||
Sublease income | 0 | (1,984 | ) | |||||||||||||
Finance lease expense | ||||||||||||||||
Amortization of right-of-use assets | 556 | 611 | 1,000 | 556 | ||||||||||||
Interest on lease liabilities | 66 | 88 | 134 | 66 | ||||||||||||
Total lease expense | $ | 12,248 | $ | 13,237 | $ | 10,370 | $ | 12,248 |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||
Operating cash outflow from operating leases | $ | 10,405 | $ | 14,149 | $ | 8,150 | $ | 10,405 | ||||||||
Operating cash outflow from finance leases | $ | 68 | $ | 89 | $ | 132 | $ | 68 | ||||||||
Financing cash outflow from finance leases | $ | 476 | $ | 483 | $ | 912 | $ | 476 | ||||||||
Right-of-use assets obtained in exchange for operating lease obligations | $ | 23,730 | $ | 10,891 | $ | 7,981 | $ | 23,730 | ||||||||
Right-of-use assets obtained in exchange for finance lease obligations | $ | 0 | $ | 49 | $ | 520 | $ | — |
Year Ending December 31 | Operating Leases | Finance Leases | Operating Leases | Finance Leases | ||||||||||||
2022 | $ | 28,595 | $ | 1,578 | ||||||||||||
2023 | 28,298 | 2,032 | $ | 18,542 | $ | 2,875 | ||||||||||
2024 | 21,657 | 1,924 | 20,249 | 3,474 | ||||||||||||
2025 | 15,507 | 1,361 | 14,916 | 3,400 | ||||||||||||
2026 | 8,559 | 260 | 10,241 | 3,305 | ||||||||||||
2027 | 7,885 | 2,953 | ||||||||||||||
Thereafter | 49,766 | 0 | 43,851 | — | ||||||||||||
Total | 152,382 | 7,155 | 115,684 | 16,007 | ||||||||||||
Less: Finance charges | 19,577 | 473 | 15,200 | 1,269 | ||||||||||||
Total principal liability | $ | 132,805 | $ | 6,682 | $ | 100,484 | $ | 14,738 |
6. | Capital Stock |
7. | Fair Value and Equity Investments |
Level 1 – quoted prices in active markets for identical assets or liabilities; |
Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and |
Level 3 – unobservable inputs based on the Company’s own assumptions. |
Fair Value at March 31, 2022 | Fair Value at March 31, 2023 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Financial assets (liabilities): | ||||||||||||||||||||||||||||||||
Cash equivalents and current investments | $ | 57,647 | $ | 0 | $ | 0 | $ | 57,647 | $ | 46,632 | $ | — | $ | — | $ | 46,632 | ||||||||||||||||
Derivative financial instruments asset | 0 | 14,664 | 0 | 14,664 | — | 16,731 | — | 16,731 | ||||||||||||||||||||||||
Life insurance contracts | 0 | 0 | 46,450 | 46,450 | — | — | 42,053 | 42,053 | ||||||||||||||||||||||||
Contingent consideration | 0 | 0 | (10,226 | ) | (10,226 | ) | — | — | (6,271 | ) | (6,271 | ) | ||||||||||||||||||||
Total | $ | 57,647 | $ | 14,664 | $ | 36,224 | $ | 108,535 | $ | 46,632 | $ | 16,731 | $ | 35,782 | $ | 99,145 |
Fair Value at December 31, 2021 | Fair Value at December 31, 2022 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Financial assets (liabilities): | ||||||||||||||||||||||||||||||||
Cash equivalents and current investments | $ | 66,477 | $ | 0 | $ | 0 | $ | 66,477 | $ | 55,356 | $ | — | $ | — | $ | 55,356 | ||||||||||||||||
Derivative financial instruments asset | 0 | 6,590 | 0 | 6,590 | — | 19,738 | — | 19,738 | ||||||||||||||||||||||||
Life insurance contracts | 0 | 0 | 49,851 | 49,851 | — | — | 40,055 | 40,055 | ||||||||||||||||||||||||
Contingent consideration | 0 | 0 | (10,341 | ) | (10,341 | ) | — | — | (6,364 | ) | (6,364 | ) | ||||||||||||||||||||
Total | $ | 66,477 | $ | 6,590 | $ | 39,510 | $ | 112,577 | $ | 55,356 | $ | 19,738 | $ | 33,691 | $ | 108,785 |
2022 | 2021 | 2023 | 2022 | |||||||||||||
Beginning balance at January 1 | $ | 49,851 | $ | 45,453 | $ | 40,055 | $ | 49,851 | ||||||||
Actual return on plan assets | (3,401 | ) | 1,153 | 1,998 | (3,401 | ) | ||||||||||
Purchase and issuances | 0 | 7,016 | ||||||||||||||
Sales and settlements | 0 | (7,016 | ) | |||||||||||||
Transfers into Level 3 | 0 | 0 | ||||||||||||||
Ending balance at March 31 | $ | 46,450 | $ | 46,606 | $ | 42,053 | $ | 46,450 |
2022 | 2021 | 2023 | 2022 | |||||||||||||
Beginning balance at January 1 | $ | (10,341 | ) | $ | (3,125 | ) | $ | (6,364 | ) | $ | (10,341 | ) | ||||
Additions from acquisitions | 0 | 0 | ||||||||||||||
Changes in fair value of contingent consideration | 115 | (139 | ) | 93 | 115 | |||||||||||
Ending balance at March 31 | $ | (10,226 | ) | $ | (3,264 | ) | $ | (6,271 | ) | $ | (10,226 | ) |
8. | Income Taxes |
9. | Derivatives and Hedging Activities |
Fair Values of Derivative Instruments | Fair Values of Derivative Instruments | ||||||||||||||||
Derivatives in Cash flow Hedging Relationships: | Balance Sheet Location | March 31, 2022 | December 31, 2021 | Balance Sheet Location | March 31, 2023 | December 31, 2022 | |||||||||||
Interest Rate Swap - Asset | Prepaid expenses and other | $ | 3,207 | $ | 557 | Prepaid expenses and other | $ | 8,814 | $ | 9,156 | |||||||
Interest Rate Swap - Asset | Other assets | $ | 11,457 | $ | 6,033 | Other assets | $ | 7,917 | $ | 10,582 |
Amount of Gain (Loss) Recognized in OCI on Derivatives | Amount of Gain (Loss) Recognized in OCI on Derivatives | |||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||
Derivatives in Cash flow | March 31, | March 31, | ||||||||||||
Hedging Relationships: | 2022 | 2021 | 2023 | 2022 | ||||||||||
Interest Rate Swaps | $ | 8,057 | $ | 3,879 | $ | (810 | ) | $ | 8,057 |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | ||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||
Derivatives in Cash flow | Income Statement | March 31, | Income Statement | March 31, | |||||||||||||
Hedging Relationships: | Location | 2022 | 2021 | Location | 2023 | 2022 | |||||||||||
Interest Rate Swaps | Other income (expense), net | $ | (18) | $ | (27) | Other income (expense), net | $ | 2,197 | $ | (18 | ) |
10. | Segment Information |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
(U.S. dollars in thousands) | 2022 | 2021 | 2023 | 2022 | ||||||||||||
Nu Skin | ||||||||||||||||
Americas | $ | 101,157 | $ | 123,580 | ||||||||||||
South Korea | 70,324 | 72,133 | ||||||||||||||
Mainland China | $ | 124,495 | $ | 149,593 | 67,976 | 124,495 | ||||||||||
Americas | 123,580 | 133,761 | ||||||||||||||
Southeast Asia/Pacific | 90,236 | 83,289 | 67,810 | 90,236 | ||||||||||||
South Korea | 72,133 | 81,131 | ||||||||||||||
Japan | 61,791 | 69,864 | 52,606 | 61,791 | ||||||||||||
EMEA | 52,968 | 76,180 | 47,444 | 52,968 | ||||||||||||
Hong Kong/Taiwan | 38,494 | 36,345 | 34,548 | 38,494 | ||||||||||||
Other | 620 | 878 | (115 | ) | 620 | |||||||||||
Total Nu Skin | 564,317 | 631,041 | 441,750 | 564,317 | ||||||||||||
Rhyz Investments | ||||||||||||||||
Manufacturing (1) | 40,341 | 45,985 | 35,767 | 40,341 | ||||||||||||
Rhyz other | 241 | 0 | 3,945 | 241 | ||||||||||||
Total Rhyz Investments | 40,582 | 45,985 | 39,712 | 40,582 | ||||||||||||
Total | $ | 604,899 | $ | 677,026 | $ | 481,462 | $ | 604,899 |
(1) | The Rhyz Investments Manufacturing segment had $11.8 |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
(U.S. dollars in thousands) | 2022 | 2021 | 2023 | 2022 | ||||||||||||
Nu Skin | ||||||||||||||||
Americas | $ | 16,250 | $ | 21,951 | ||||||||||||
South Korea | 23,575 | 21,998 | ||||||||||||||
Mainland China | $ | 28,995 | $ | 39,439 | 13,612 | 28,995 | ||||||||||
Americas | 25,123 | 28,745 | ||||||||||||||
Southeast Asia/Pacific | 23,406 | 19,648 | 12,471 | 20,996 | ||||||||||||
South Korea | 22,743 | 26,525 | ||||||||||||||
Japan | 15,313 | 17,981 | 12,908 | 14,420 | ||||||||||||
EMEA | 3,836 | 8,896 | 3,638 | 2,622 | ||||||||||||
Hong Kong/Taiwan | 8,690 | 7,348 | 7,834 | 8,086 | ||||||||||||
Nu Skin contribution | 128,106 | 148,582 | 90,288 | 119,068 | ||||||||||||
Rhyz Investments | ||||||||||||||||
Manufacturing | 3,292 | 5,826 | (1,373 | ) | 3,292 | |||||||||||
Rhyz other | (1,046 | ) | 0 | (1,960 | ) | (1,046 | ) | |||||||||
Total Rhyz Investments | 2,246 | 5,826 | (3,333 | ) | 2,246 | |||||||||||
Total segment contribution | 130,352 | 154,408 | 86,955 | 121,314 | ||||||||||||
Corporate and other | (78,207 | ) | (91,495 | ) | (70,891 | ) | (69,169 | ) | ||||||||
Operating income | 52,145 | 62,913 | 16,064 | 52,145 | ||||||||||||
Other income (expense) | (1,453 | ) | 1,582 | |||||||||||||
Other income (expense), net | (1,476 | ) | (1,453 | ) | ||||||||||||
Income before provision for income taxes | $ | 50,692 | $ | 64,495 | $ | 14,588 | $ | 50,692 |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
(U.S. dollars in thousands) | 2022 | 2021 | 2023 | 2022 | ||||||||||||
Nu Skin | ||||||||||||||||
Americas | $ | 66 | $ | 199 | ||||||||||||
South Korea | 453 | 388 | ||||||||||||||
Mainland China | $ | 2,884 | $ | 3,339 | 2,775 | 2,884 | ||||||||||
Americas | 199 | 231 | ||||||||||||||
Southeast Asia/Pacific | 381 | 354 | 280 | 381 | ||||||||||||
South Korea | 388 | 990 | ||||||||||||||
Japan | 277 | 253 | 1,054 | 277 | ||||||||||||
EMEA | 230 | 286 | 282 | 230 | ||||||||||||
Hong Kong/Taiwan | 691 | 885 | 453 | 691 | ||||||||||||
Total Nu Skin | 5,050 | 6,338 | 5,363 | 5,050 | ||||||||||||
Rhyz Investments | ||||||||||||||||
Manufacturing | 3,330 | 2,688 | 3,424 | 3,330 | ||||||||||||
Rhyz other | 592 | 0 | 592 | 592 | ||||||||||||
Total Rhyz Investments | 3,922 | 2,688 | 4,016 | 3,922 | ||||||||||||
Corporate and other | 8,158 | 9,318 | 7,604 | 8,158 | ||||||||||||
Total | $ | 17,130 | $ | 18,344 | $ | 16,983 | $ | 17,130 |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||
(U.S. dollars in thousands) | 2022 | 2021 | 2023 | 2022 | ||||||||||||
Nu Skin | ||||||||||||||||
Americas | $ | 100 | $ | 42 | ||||||||||||
South Korea | 154 | 362 | ||||||||||||||
Mainland China | $ | 4,068 | $ | 8,517 | 4,035 | 4,068 | ||||||||||
Americas | 42 | 112 | ||||||||||||||
Southeast Asia/Pacific | 68 | 565 | 64 | 68 | ||||||||||||
South Korea | 362 | 490 | ||||||||||||||
Japan | 0 | 91 | 5 | — | ||||||||||||
EMEA | 393 | 172 | 119 | 393 | ||||||||||||
Hong Kong/Taiwan | 263 | 0 | 260 | 263 | ||||||||||||
Total Nu Skin | 5,196 | 9,947 | 4,737 | 5,196 | ||||||||||||
Rhyz Investments | ||||||||||||||||
Manufacturing | 1,208 | 3,338 | 1,481 | 1,208 | ||||||||||||
Rhyz other | 0 | 0 | — | — | ||||||||||||
Total Rhyz Investments | 1,208 | 3,338 | 1,481 | 1,208 | ||||||||||||
Corporate and other | 3,875 | 6,088 | 5,269 | 3,875 | ||||||||||||
Total | $ | 10,279 | $ | 19,373 | $ | 11,487 | $ | 10,279 |
11. | Commitments and Contingencies |
12. |
Restructuring |
(U.S. dollars in thousands) | Three Months Ended March 31, 2023 | |||
Nu Skin | ||||
Americas | $ | 918 | ||
South Korea | 422 | |||
Mainland China | 1,352 | |||
Southeast Asia/Pacific | 131 | |||
Japan | 1,515 | |||
EMEA | (113 | ) | ||
Hong Kong/Taiwan | (201 | ) | ||
Total Nu Skin | 4,024 | |||
Rhyz Investments | ||||
Manufacturing | 13 | |||
Rhyz other | — | |||
Total Rhyz Investments | 13 | |||
Corporate and other | 5,750 | |||
Total | $ | 9,787 |
13. | Subsequent Events |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended March 31, | Constant-Currency | Three Months Ended March 31, | Constant- Currency | |||||||||||||||||||||||||||||
2022 | 2021 | Change | Change(1) | 2023 | 2022 | Change | Change(1) | |||||||||||||||||||||||||
Nu Skin | ||||||||||||||||||||||||||||||||
Americas | $ | 101,157 | $ | 123,580 | (18 | )% | (15 | )% | ||||||||||||||||||||||||
South Korea | 70,324 | 72,133 | (3 | )% | 3 | % | ||||||||||||||||||||||||||
Mainland China | $ | 124,495 | $ | 149,593 | (17 | )% | (18 | )% | 67,976 | 124,495 | (45 | )% | (41 | )% | ||||||||||||||||||
Americas | 123,580 | 133,761 | (8 | )% | (6 | )% | ||||||||||||||||||||||||||
Southeast Asia/Pacific | 90,236 | 83,289 | 8 | % | 11 | % | 67,810 | 90,236 | (25 | )% | (21 | )% | ||||||||||||||||||||
South Korea | 72,133 | 81,131 | (11 | )% | (4 | )% | ||||||||||||||||||||||||||
Japan | 61,791 | 69,864 | (12 | )% | (3 | )% | 52,606 | 61,791 | (15 | )% | (3 | )% | ||||||||||||||||||||
EMEA | 52,968 | 76,180 | (30 | )% | (25 | )% | 47,444 | 52,968 | (10 | )% | (6 | )% | ||||||||||||||||||||
Hong Kong/Taiwan | 38,494 | 36,345 | 6 | % | 6 | % | 34,548 | 38,494 | (10 | )% | (5 | )% | ||||||||||||||||||||
Other | 620 | 878 | (29 | )% | (29 | )% | (115 | ) | 620 | (119 | )% | (119 | )% | |||||||||||||||||||
Total Nu Skin | 564,317 | 631,041 | (11 | )% | (8 | )% | 441,750 | 564,317 | (22 | )% | (17 | )% | ||||||||||||||||||||
Rhyz Investments | ||||||||||||||||||||||||||||||||
Manufacturing | 40,341 | 45,985 | (12 | )% | (12 | )% | 35,767 | 40,341 | (11 | )% | (11 | )% | ||||||||||||||||||||
Rhyz other | 241 | — | 3,945 | 241 | 1,537 | % | 1,537 | % | ||||||||||||||||||||||||
Total Rhyz Investments | 40,582 | 45,985 | (12 | )% | (12 | )% | 39,712 | 40,582 | (2 | )% | (2 | )% | ||||||||||||||||||||
Total | $ | 604,899 | $ | 677,026 | (11 | )% | (8 | )% | $ | 481,462 | $ | 604,899 | (20 | )% | (16 | )% |
(1) | Constant-currency revenue change is a non-GAAP financial measure. See “Non-GAAP Financial Measures,” below. |
Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||||||||||
2022 | 2021 | Change | 2023 | 2022 | Change | |||||||||||||||||||
Nu Skin | ||||||||||||||||||||||||
Americas | $ | 16,250 | $ | 21,951 | (26 | )% | ||||||||||||||||||
South Korea | 23,575 | 21,998 | 7 | % | ||||||||||||||||||||
Mainland China | $ | 28,995 | $ | 39,439 | (26 | )% | 13,612 | 28,995 | (53 | )% | ||||||||||||||
Americas | 25,123 | 28,745 | (13 | )% | ||||||||||||||||||||
Southeast Asia/Pacific | 23,406 | 19,648 | 19 | % | 12,471 | 20,996 | (41 | )% | ||||||||||||||||
South Korea | 22,743 | 26,525 | (14 | )% | ||||||||||||||||||||
Japan | 15,313 | 17,981 | (15 | )% | 12,908 | 14,420 | (10 | )% | ||||||||||||||||
EMEA | 3,836 | 8,896 | (57 | )% | 3,638 | 2,622 | 39 | % | ||||||||||||||||
Hong Kong/Taiwan | 8,690 | 7,348 | 18 | % | 7,834 | 8,086 | (3 | )% | ||||||||||||||||
Total Nu Skin | 128,106 | 148,582 | (14 | )% | 90,288 | 119,068 | (24 | )% | ||||||||||||||||
Rhyz Investments | ||||||||||||||||||||||||
Manufacturing | 3,292 | 5,826 | (43 | )% | (1,373 | ) | 3,292 | (142 | )% | |||||||||||||||
Rhyz other | (1,046 | ) | — | (1,960 | ) | (1,046 | ) | (87 | )% | |||||||||||||||
Total Rhyz Investments | 2,246 | 5,826 | (61 | )% | (3,333 | ) | 2,246 | (248 | )% |
● |
● | “Paid Affiliates” are any Brand Affiliates, as well as members of our sales |
● | “Sales Leaders” are the three-month average of our monthly Brand Affiliates, as well as sales employees and independent marketers in Mainland China, who |
Three Months Ended March 31, | ||||||||||||||||||||||||
Three Months Ended March 31, | 2023 | 2022 | Change | |||||||||||||||||||||
Customers | 2022 | 2021 | Change | |||||||||||||||||||||
Americas | 266,378 | 318,458 | (16 | )% | ||||||||||||||||||||
South Korea | 120,907 | 140,648 | (14 | )% | ||||||||||||||||||||
Mainland China | 289,060 | 316,000 | (9 | )% | 217,101 | 289,060 | (25 | )% | ||||||||||||||||
Americas | 318,458 | 374,867 | (15 | )% | ||||||||||||||||||||
Southeast Asia/Pacific | 165,657 | 185,435 | (11 | )% | 117,266 | 165,657 | (29 | )% | ||||||||||||||||
South Korea | 140,648 | 152,390 | (8 | )% | ||||||||||||||||||||
Japan | 122,616 | 126,525 | (3 | )% | 115,161 | 122,616 | (6 | )% | ||||||||||||||||
EMEA | 216,037 | 296,001 | (27 | )% | 190,313 | 216,037 | (12 | )% | ||||||||||||||||
Hong Kong/Taiwan | 68,975 | 66,042 | 4 | % | 56,410 | 68,975 | (18 | )% | ||||||||||||||||
Total | 1,321,451 | 1,517,260 | (13 | )% | ||||||||||||||||||||
Total Customers | 1,083,536 | 1,321,451 | (18 | )% | ||||||||||||||||||||
Paid Affiliates | ||||||||||||||||||||||||
Americas | 38,707 | 46,317 | (16 | )% | ||||||||||||||||||||
South Korea | 40,599 | 49,474 | (18 | )% | ||||||||||||||||||||
Mainland China | 24,522 | 22,783 | 8 | % | ||||||||||||||||||||
Southeast Asia/Pacific | 36,431 | 43,347 | (16 | )% | ||||||||||||||||||||
Japan | 37,155 | 38,096 | (2 | )% | ||||||||||||||||||||
EMEA | 27,654 | 33,914 | (18 | )% | ||||||||||||||||||||
Hong Kong/Taiwan | 16,286 | 17,928 | (9 | )% | ||||||||||||||||||||
Total Paid Affiliates | 221,354 | 251,859 | (12 | )% | ||||||||||||||||||||
Sales Leaders | ||||||||||||||||||||||||
Americas | 8,242 | 9,548 | (14 | )% | ||||||||||||||||||||
South Korea | 6,242 | 6,072 | 3 | % | ||||||||||||||||||||
Mainland China(1) | 10,034 | 14,146 | (29 | )% | ||||||||||||||||||||
Southeast Asia/Pacific | 6,337 | 8,012 | (21 | )% | ||||||||||||||||||||
Japan | 5,688 | 5,977 | (5 | )% | ||||||||||||||||||||
EMEA | 4,524 | 5,455 | (17 | )% | ||||||||||||||||||||
Hong Kong/Taiwan | 2,688 | 3,253 | (17 | )% | ||||||||||||||||||||
Total Sales Leaders | 43,755 | 52,463 | (17 | )% |
Three Months Ended March 31, | ||||||||||||
Paid Affiliates | 2022 | 2021 | Change | |||||||||
Mainland China | 22,762 | 41,944 | (46 | )% | ||||||||
Americas | 46,281 | 52,767 | (12 | )% | ||||||||
Southeast Asia/Pacific | 43,262 | 45,871 | (6 | )% | ||||||||
South Korea | 49,328 | 51,006 | (3 | )% | ||||||||
Japan | 38,059 | 38,283 | (1 | )% | ||||||||
EMEA | 33,834 | 43,696 | (23 | )% | ||||||||
Hong Kong/Taiwan | 17,910 | 17,885 | — | |||||||||
Total | 251,436 | 291,452 | (14 | )% |
(1) | The March 31, 2023 number reflects a modified Sales Leader definition. See “Mainland China,” below. |
Three Months Ended March 31, | ||||||||||||
Sales Leaders | 2022 | 2021 | Change | |||||||||
Mainland China | 14,146 | 23,013 | (39 | )% | ||||||||
Americas | 9,547 | 11,394 | (16 | )% | ||||||||
Southeast Asia/Pacific | 8,012 | 8,446 | (5 | )% | ||||||||
South Korea | 6,072 | 6,682 | (9 | )% | ||||||||
Japan | 5,977 | 6,135 | (3 | )% | ||||||||
EMEA | 5,455 | 7,479 | (27 | )% | ||||||||
Hong Kong/Taiwan | 3,253 | 3,755 | (13 | )% | ||||||||
Total | 52,462 | 66,904 | (22 | )% |
● | purchases and expenditures for computer systems and equipment, software, and application development; |
● | the expansion and upgrade of facilities in our various markets; and |
● | a new manufacturing plant in Mainland China. |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
(a) | (b) | (c) | (d) | |||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)(1) | ||||||||||||
January 1 - 31, 2022 | 68,636 | $ | 52.14 | 68,636 | $ | 241.8 | ||||||||||
February 1 - 28, 2022 | 74,732 | 50.88 | 74,732 | $ | 238.0 | |||||||||||
March 1 - 31, 2022 | 57,120 | 45.97 | 57,120 | $ | 235.4 | |||||||||||
Total | 200,488 | $ | 49.91 | 200,488 |
(a) | (b) | (c) | (d) | |||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (in millions)(1) | ||||||||||||
January 1 - 31, 2023 | — | $ | — | — | $ | 175.4 | ||||||||||
February 1 - 28, 2023 | — | — | — | $ | 175.4 | |||||||||||
March 1 - 31, 2023 | — | — | — | $ | 175.4 | |||||||||||
Total | — | $ | — | — |
(1) | In August 2018, we announced that our board of directors approved a stock repurchase plan. Under this plan, our board of directors authorized the repurchase of up to $500 million of our outstanding Class A common stock on the open market or in privately negotiated transactions. |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES |
ITEM 4. | MINE SAFETY DISCLOSURES |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
Exhibits Regulation S-K Number | Description | |
Certification by Ryan S. Napierski, Chief Executive Officer, pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||
Certification by | ||
Certification by Ryan S. Napierski, Chief Executive Officer, pursuant to Section 1350, Chapter 63 of Title 18, United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||
Certification by | ||
101.INS | Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) | |
101.SCH | Inline XBRL Taxonomy Extension Schema Document | |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |
May 3, 2023 | ||
NU SKIN ENTERPRISES, INC. | ||
By: | /s/ | |
Chief Financial Officer | ||
(Duly Authorized Officer and Principal Financial Officer) |