• skype
  • Skype: philippinediver / PH (63) 927-300-6948
  • editormlminsider@yahoo.com
Available Banner

USANA Health Sciences, Inc. (USNA) FORM 10-Q | Quarterly Report |

Seeking Alpha
USANA Health Sciences, Inc. (USNA)  FORM 10-Q | Quarterly Report  |

View as PDF

Aug. 4, 2020 3:05 PM

 

Q2: 07-21-20 Earnings Summary

 

 

EPS of $1.32 beats by $0.13

 

 

 

Revenue of $258.99M (1.16% Y/Y) misses by $-8.81M

CHIEF EXECUTIVE OFFICER CERTIFICATION

 

I, Kevin G. Guest, certify that:

 

1.

 

I have reviewed this Quarterly Report on Form 10-Q of USANA Health Sciences, Inc. (the “Registrant”);

 

2.

 

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

 

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

 

4.

 

The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

 

a)

 

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)

 

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

 

Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)

 

Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

 

5.

 

The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

 

a)

 

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

 

b)

 

Any fraud, whether or not material, that involves management or other employees who have a significant role in the the Registrant’s internal control over financial reporting.

 

 

 

Date: August 4, 2020

/s/ Kevin G. Guest

 

Kevin G. Guest

 

Chief Executive Officer

(Principal Executive Officer)

 

 

 


 

EXHIBIT 31.2

 

CHIEF FINANCIAL OFFICER CERTIFICATION

 

I, G. Douglas Hekking, certify that:

 

1.

 

I have reviewed this Quarterly Report on Form 10-Q of USANA Health Sciences, Inc. (the “Registrant”);

 

2.

 

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

 

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

 

4.

 

The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

 

a)

 

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

b)

 

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

c)

 

Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

d)

 

Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

 

5.

 

The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent functions):

 

a)

 

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

 

b)

 

Any fraud, whether or not material, that involves management or other employees who have a significant role in the the Registrant’s internal control over financial reporting.

 

 

 

Date: August 4, 2020

/s/ G. Douglas Hekking

 

G. Douglas Hekking

 

Chief Financial Officer

(Principal Accounting and Financial Officer)

 

 

 

 


 

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

The undersigned hereby certifies that the Quarterly Report on Form 10-Q of USANA Health Sciences, Inc. for the period ended June 27, 2020 as filed August 4, 2020 with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of The Securities Exchange Act of 1934 (15 U.S.C. 78m) and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of USANA Health Sciences, Inc.

 

 

 

 

Date: August 4, 2020

/s/ Kevin G. Guest

 

Kevin G. Guest

 

Chief Executive Officer

(Principal Executive Officer)

 

 

 

 

 

 

 


 

EXHIBIT 32.2

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

The undersigned hereby certifies that the Quarterly Report on Form 10-Q of USANA Health Sciences, Inc. for the period ended June 27, 2020 as filed August 4, 2020 with the Securities and Exchange Commission, fully complies with the requirements of Section 13(a) or 15(d) of The Securities Exchange Act of 1934 (15 U.S.C. 78m) and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of USANA Health Sciences, Inc.

 

 

 

 

Date: August 4, 2020

/s/ G. Douglas Hekking

 

G. Douglas Hekking

 

Chief Financial Officer

(Principal Accounting and Financial Officer)

 

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________

 

FORM 10-Q

(Mark One)

x  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 27, 2020

 

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: 001-35024

______________________

 

USANA HEALTH SCIENCES, INC.

(Exact name of registrant as specified in its charter)

 

 

 

Utah

87-0500306

(State or other jurisdiction

(I.R.S. Employer

of incorporation or organization)

Identification No.)

______________________

 

3838 West Parkway Blvd., Salt Lake City, Utah 84120

(Address of principal executive offices) (Zip Code)

______________________

 

(801) 954-7100

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock

USNA

New York Stock Exchange

 

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 for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x   No ¨

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x   No ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

 

 

Large accelerated filer x

Accelerated filer ¨

Non-accelerated filer ¨

Smaller reporting company ¨

 

Emerging growth company ¨

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨   No x

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of July 31, 2020, 21,020,007 shares of common stock, $.001 par value, of the registrant were outstanding.

 

USANA HEALTH SCIENCES, INC.

 

FORM 10-Q

 

For the Quarterly Period Ended June 27, 2020

 

TABLE OF CONTENTS

 

 

 

 

 

 

Page

Cautionary Note Regarding Forward-Looking Statements and Certain Risks

1

PART I. FINANCIAL INFORMATION

Item 1

Financial Statements (unaudited)

2

 

Condensed Consolidated Balance Sheets

2

 

Condensed Consolidated Statements of Comprehensive Income

3

 

Condensed Consolidated Statements of Stockholders’ Equity

4

 

Condensed Consolidated Statements of Cash Flows

6

 

Notes to Condensed Consolidated Financial Statements

7 - 13

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

14 - 21

Item 3

Quantitative and Qualitative Disclosures About Market Risk

21

Item 4

Controls and Procedures

21

PART II. OTHER INFORMATION

Item 1

Legal Proceedings

22

Item 1A

Risk Factors

22

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

22

Item 3

Defaults Upon Senior Securities

22

Item 4

Mine Safety Disclosures

22

Item 5

Other Information

22

Item 6

Exhibits

22

Signatures

 

23

 

 


 

 

 

Cautionary Note Regarding Forward-Looking Statements and Certain Risks

 

This report contains, “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new products; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements can be identified by words such as: “anticipate,” “intend,” “plan,” “seek,” “believe,” “project,” “estimate,” “expect,” “strategy,” “future,” “likely,” “may,” “should,” “will” and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements.

 

Although we believe that the expectations reflected in our forward-looking statements are reasonable, actual results could differ materially from those we project or assume in our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in our filings with the Securities and Exchange Commission (“SEC”). Any forward-looking statement made by us in this report is based only on information currently available to us and speaks only as of the date hereof. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments, the occurrence of unanticipated events or otherwise. Important factors that could cause our actual results, performance and achievements to differ materially from estimates or projections contained in our forward-looking statements in this report include, among others, the following:

 

Our dependence upon the direct selling business model to distribute our products and the activities of our independent Associates;

Extensive regulation of our business model and uncertainties relating to the interpretation and enforcement of applicable laws and regulations governing direct selling and anti-pyramiding, particularly in the United States and China;

The operation and expansion of our business in China through our subsidiary, BabyCare Holdings, Ltd. (“BabyCare”), including risks related to (i) operating in China in general, (ii) engaging in direct selling in China, (iii) BabyCare’s business model in China, and (iv) changes in the Chinese economy, marketplace or consumer environment;

Unanticipated effects of changes to our Compensation Plan;

Challenges associated with our planned expansion into new international markets, delays in commencement of sales or product offerings in such markets, delays in compliance with local marketing or other regulatory requirements, or changes in target markets;

Uncertainty related to the magnitude, scope and duration of the impact of the novel strain coronavirus COVID-19 pandemic (“COVID-19” or the “COVID-19 pandemic”) to our business, operations and financial results, including, for example, additional regulatory measures or voluntary actions that may be put in place to limit the spread of COVID-19 in the markets where we operate, such as restrictions on business operations, shelter at home, or social distancing requirements;

Political events, natural disasters, pandemics, epidemics or other health crises including, and in addition to, COVID-19 or other events that may negatively affect economic conditions, consumer spending or consumer behavior;

Changes to trade policies and tariffs, the impact of customs, duties, taxation, and transfer pricing regulations, as well as regulations governing distinctions between and our responsibilities to employees and independent contractors;

Volatile fluctuation in the value of foreign currencies against the U.S. dollar;

Shortages of raw materials, disruptions in the business of our contract manufacturers, significant price increases of key raw materials, and other disruptions to our supply chain, and;

Our continued compliance with debt covenants in our credit facility.

 

Unless otherwise indicated or otherwise required by the context, the terms “we,” “our,” “it,” “its,” “Company,” and “USANA” refer to USANA Health Sciences, Inc. and its subsidiaries.

 

 

 

 

PART I.  FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

 

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands, except par value)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of

 

As of

 

 

June 27,

 

December 28,

 

 

2020

 

2019

ASSETS

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$

227,368

 

$

234,830

Inventories

 

 

69,279

 

 

68,905

Prepaid expenses and other current assets

 

 

28,302

 

 

25,544

Total current assets

 

 

324,949

 

 

329,279

Property and equipment, net

 

 

98,435

 

 

95,233

Goodwill

 

 

16,521

 

 

16,636

Intangible assets, net

 

 

29,008

 

 

29,840

Deferred tax assets

 

 

3,741

 

 

3,090

Other assets

 

 

39,497

 

 

42,856

 

 

$

512,151

 

$

516,934

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Accounts payable

 

$

10,942

 

$

12,525

Other current liabilities

 

 

128,775

 

 

123,573

Total current liabilities

 

 

139,717

 

 

136,098

Deferred tax liabilities

 

 

6,584

 

 

10,282

Other long-term liabilities

 

 

16,774

 

 

18,842

Stockholders' equity

 

 

 

 

 

 

Common stock, $0.001 par value; Authorized -- 50,000 shares,

 

 

 

 

 

 

issued and outstanding 21,017 as of June 27, 2020

 

 

 

 

 

 

and 21,655 as of December 28, 2019

 

 

21

 

 

22

Additional paid-in capital

 

 

55,526

 

 

59,445

Retained earnings

 

 

312,659

 

 

306,146

Accumulated other comprehensive income (loss)

 

 

(19,130)

 

 

(13,901)

Total stockholders' equity

 

 

349,076

 

 

351,712

 

 

$

512,151

 

$

516,934

 

The accompanying notes are an integral part of these statements.


 

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in thousands, except per share data)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended

 

Six Months Ended

 

 

June 27,

 

June 29,

 

June 27,

 

June 29,

 

 

2020

 

2019

 

2020

 

2019

Net sales

 

$

258,991

 

$

256,016

 

$

525,610

 

$

529,006

Cost of sales

 

 

47,674

 

 

46,494

 

 

93,733

 

 

92,395

Gross profit

 

 

211,317

 

 

209,522

 

 

431,877

 

 

436,611

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Associate incentives

 

 

110,852

 

 

111,511

 

 

226,921

 

 

234,041

Selling, general and administrative

 

 

60,879

 

 

66,854

 

 

126,358

 

 

136,409

Total operating expenses

 

 

171,731

 

 

178,365

 

 

353,279

 

 

370,450

Earnings from operations

 

 

39,586

 

 

31,157

 

 

78,598

 

 

66,161

Other income (expense):

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

435

 

 

1,301

 

 

1,419

 

 

2,785

Interest expense

 

 

(217)

 

 

(10)

 

 

(238)

 

 

(22)

Other, net

 

 

175

 

 

64

 

 

(637)

 

 

(118)

Other income (expense), net

 

 

393

 

 

1,355

 

 

544

 

 

2,645

Earnings before income taxes

 

 

39,979

 

 

32,512

 

 

79,142

 

 

68,806

Income taxes

 

 

12,002

 

 

11,134

 

 

24,613

 

 

23,256

Net earnings

 

$

27,977

 

$

21,378

 

$

54,529

 

$

45,550

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

1.33

 

$

0.92

 

$

2.56

 

$

1.95

Diluted

 

$

1.32

 

$

0.91

 

$

2.56

 

$

1.93

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

21,034

 

 

23,245

 

 

21,265

 

 

23,364

Diluted

 

 

21,129

 

 

23,370

 

 

21,340

 

 

23,648

 

 

 

 

 

 

 

 

 

 

 

 

 

Comprehensive income:

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings

 

$

27,977

 

$

21,378

 

$

54,529

 

$

45,550

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustment

 

 

1,861

 

 

(5,592)

 

 

(4,376)

 

 

(818)

Tax benefit (expense) related to foreign currency

 

 

 

 

 

 

 

 

 

 

 

 

translation adjustment

 

 

(1,892)

 

 

242

 

 

(853)

 

 

(1,052)

Other comprehensive income (loss), net of tax

 

 

(31)

 

 

(5,350)

 

 

(5,229)

 

 

(1,870)

Comprehensive income

 

$

27,946

 

$

16,028

 

$

49,300

 

$

43,680

 

The accompanying notes are an integral part of these statements.


 

 

 

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For six months ended June 29, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

 

 

 

 

Common Stock

 

Paid-in

 

Retained

 

Comprehensive

 

 

 

 

 

Shares

 

Value

 

Capital

 

Earnings

 

Income (Loss)

 

Total

Balance at December 29, 2018

 

23,567

 

$

24

 

$

72,008

 

$

329,501

 

$

(10,387)

 

$

391,146

Net earnings

 

 

 

 

 

 

 

 

 

 

45,550

 

 

 

 

 

45,550

Other comprehensive income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,870)

 

 

(1,870)

Equity-based compensation expense

 

 

 

 

 

 

 

8,601

 

 

 

 

 

 

 

 

8,601

Common stock repurchased and retired

 

(651)

 

 

(1)

 

 

(10,115)

 

 

(47,507)

 

 

 

 

 

(57,623)

Common stock issued under equity award plans

 

64

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax withholding for net-share settled equity awards

 

 

 

 

 

 

 

(1,648)

 

 

 

 

 

 

 

 

(1,648)

Balance at June 29, 2019

 

22,980

 

$

23

 

$

68,846

 

$

327,544

 

$

(12,257)

 

$

384,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For six months ended June 27, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

 

 

 

 

Common Stock

 

Paid-in

 

Retained

 

Comprehensive

 

 

 

 

 

Shares

 

Value

 

Capital

 

Earnings

 

Income (Loss)

 

Total

Balance at December 28, 2019

 

21,655

 

$

22

 

$

59,445

 

$

306,146

 

$

(13,901)

 

$

351,712

Net earnings

 

 

 

 

 

 

 

 

 

 

54,529

 

 

 

 

 

54,529

Other comprehensive income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,229)

 

 

(5,229)

Equity-based compensation expense

 

 

 

 

 

 

 

6,991

 

 

 

 

 

 

 

 

6,991

Common stock repurchased and retired

 

(785)

 

 

(1)

 

 

(9,012)

 

 

(48,016)

 

 

 

 

 

(57,029)

Common stock issued under equity award plans

 

147

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax withholding for net-share settled equity awards

 

 

 

 

 

 

 

(1,898)

 

 

 

 

 

 

 

 

(1,898)

Balance at June 27, 2020

 

21,017

 

$

21

 

$

55,526

 

$

312,659

 

$

(19,130)

 

$

349,076

 

The accompanying notes are an integral part of these statements.


 

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June 29, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

 

 

 

 

Common Stock

 

Paid-in

 

Retained

 

Comprehensive

 

 

 

 

 

Shares

 

Value

 

Capital

 

Earnings

 

Income (Loss)

 

Total

Balance at March 30, 2019

 

23,335

 

$

23

 

$

69,100

 

$

329,001

 

$

(6,907)

 

$

391,217

Net earnings

 

 

 

 

 

 

 

 

 

 

21,378

 

 

 

 

 

21,378

Other comprehensive income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

(5,350)

 

 

(5,350)

Equity-based compensation expense

 

 

 

 

 

 

 

4,769

 

 

 

 

 

 

 

 

4,769

Common stock repurchased and retired

 

(367)

 

 

 

 

(4,788)

 

 

(22,835)

 

 

 

 

 

(27,623)

Common stock issued under equity award plans

 

12

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax withholding for net-share settled equity awards

 

 

 

 

 

 

 

(235)

 

 

 

 

 

 

 

 

(235)

Balance at June 29, 2019

 

22,980

 

$

23

 

$

68,846

 

$

327,544

 

$

(12,257)

 

$

384,156

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended June 27, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

Other

 

 

 

 

 

Common Stock

 

Paid-in

 

Retained

 

Comprehensive

 

 

 

 

 

Shares

 

Value

 

Capital

 

Earnings

 

Income (Loss)

 

Total

Balance at March 28, 2020

 

20,995

 

$

21

 

$

52,004

 

$

284,682

 

$

(19,099)

 

$

317,608

Net earnings

 

 

 

 

 

 

 

 

 

 

27,977

 

 

 

 

 

27,977

Other comprehensive income (loss), net of tax

 

 

 

 

 

 

 

 

 

 

 

 

 

(31)

 

 

(31)

Equity-based compensation expense

 

 

 

 

 

 

 

3,597

 

 

 

 

 

 

 

 

3,597

Common stock issued under equity award plans

 

22

 

 

 

 

 

 

 

 

 

 

 

 

 

Tax withholding for net-share settled equity awards

 

 

 

 

 

 

 

(75)

 

 

 

 

 

 

 

 

(75)

Balance at June 27, 2020

 

21,017

 

$

21

 

$

55,526

 

$

312,659

 

$

(19,130)

 

$

349,076

 

The accompanying notes are an integral part of these statements.


 

 

USANA HEALTH SCIENCES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

June 27,

 

June 29,

 

 

2020

 

2019

Cash flows from operating activities

 

 

 

 

 

 

Net earnings

 

$

54,529 

 

$

45,550 

Adjustments to reconcile net earnings to net cash provided by (used in) operating activities

 

 

 

 

 

 

Depreciation and amortization

 

 

7,044 

 

 

7,654 

Right-of-use asset amortization

 

 

4,355 

 

 

3,977 

(Gain) loss on sale of property and equipment

 

 

116 

 

 

26 

Equity-based compensation expense

 

 

6,991 

 

 

8,601 

Deferred income taxes

 

 

(5,326)

 

 

(10,722)

Changes in operating assets and liabilities:

 

 

 

 

 

 

Inventories

 

 

(1,950)

 

 

(6,026)

Prepaid expenses and other assets

 

 

(4,890)

 

 

3,334 

Accounts payable

 

 

(1,120)

 

 

1,379 

Other liabilities

 

 

3,675 

 

 

(33,094)

Net cash provided by (used in) operating activities

 

 

63,424 

 

 

20,679 

Cash flows from investing activities

 

 

 

 

 

 

Receipts on notes receivable

 

 

179 

 

 

92 

Proceeds from the settlement of net investment hedges

 

 

1,935 

 

 

1,936 

Payments for net investment hedge

 

 

(1,089)

 

 

(1,660)

Maturities of investment securities held-to-maturity

 

 

 

 

60,540 

Proceeds from sale of property and equipment

 

 

 

 

6 

Purchases of property and equipment

 

 

(10,821)

 

 

(7,130)

Net cash provided by (used in) investing activities

 

 

(9,796)

 

 

53,784 

Cash flows from financing activities

 

 

 

 

 

 

Repurchase of common stock

 

 

(57,029)

 

 

(57,623)

Borrowings on line of credit

 

 

60,000 

 

 

5,000 

Payments on line of credit

 

 

(60,000)

 

 

(5,000)

Payments related to tax withholding for net-share settled equity awards

 

 

(1,898)

 

 

(1,648)

Net cash provided by (used in) financing activities

 

 

(58,927)

 

 

(59,271)

Effect of exchange rate changes on cash, cash equivalents, and restricted cash

 

 

(2,195)

 

 

1,839 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

 

(7,494)

 

 

17,031 

Cash, cash equivalents, and restricted cash at beginning of period

 

 

237,688 

 

 

217,234 

Cash, cash equivalents, and restricted cash at end of period

 

$

230,194 

 

$

234,265 

Reconciliation of cash, cash equivalents, and restricted cash to the condensed consolidated balance sheets

Cash and cash equivalents

 

$

227,368 

 

$

231,353 

Restricted cash included in other assets

 

 

2,826 

 

 

2,912 

Total cash, cash equivalents, and restricted cash

 

$

230,194