Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion in the last quarter[7] - The company expects a revenue growth guidance of 10-12% for the next fiscal year[7] - A new product line is set to launch in Q2 2024, projected to contribute an additional $200 million in revenue[7] - The company completed the acquisition of Hiya Health Products, which is expected to enhance its product portfolio and increase revenue by 5%[7] User Growth - User data showed a growth in active users by 20%, totaling 5 million users[7] - The backlog of orders has increased by 40%, indicating strong demand for existing products[21] Investment and Development - Investment in R&D increased by 25%, focusing on new product development and innovation[8] - The company is focused on the effective utilization and development of artificial intelligence technology to enhance its operations[20] Market Expansion - The company plans to expand its market presence in Asia, targeting a 30% increase in market share by 2025[7] - The company faces challenges related to planned expansion into new international markets, including delays in sales commencement and compliance with local regulations[20] Supply Chain and Operations - The company is implementing new distribution strategies to improve supply chain efficiency, aiming for a 15% reduction in delivery times[7] - The company reported a 10% decrease in product returns, reflecting improved quality assurance measures[7] - There are risks associated with supply chain disruptions, including shortages of raw materials and significant price increases of key components[20] Economic and Geopolitical Risks - Macroeconomic conditions such as inflationary pressures and slower economic growth may negatively impact consumer spending and discretionary income[20] - The company is exposed to geopolitical tensions, including conflicts involving Russia and Ukraine, which could affect foreign relations and market stability[20] Compliance and Risk Management - The company must ensure compliance with debt covenants in its credit facility agreement to maintain financial stability[20] - Acquisition-related risks are present, particularly concerning the acquisition of Hiya Health Products, LLC and other past or future acquisitions[20] - Human capital risks exist, particularly in attracting and retaining key management personnel essential for product sales[20] - The company must effectively protect and enforce its intellectual property and proprietary technology to maintain competitive advantage[20] - There are ongoing risks related to information technology system failures and cybersecurity threats that could impact operations[20]

Core Insights - USANA Executive Chairman Kevin Guest emphasizes the importance of listening during March's Listening Awareness Month, highlighting its role in enhancing personal and professional relationships [1][5][6] Company Overview - USANA Health Sciences, a nutritional supplement company, operates in 25 countries and focuses on health and wellness products [2][8] - The company has a long-standing commitment to social wellness, recognizing its significance in building a successful business [7] Key Principles of Listening - Guest outlines three essential steps for active listening: 1. **Seek First to Understand**: Focus on empathetic listening to fully grasp the other person's thoughts and emotions [7] 2. **Listen to Your Inner Voice**: Be aware of personal biases and distractions to enhance clarity in listening [7] 3. **Lead with Empathy**: Engage with compassion by imagining oneself in the other person's position [7] Community Engagement - Guest encourages participation in Listening Awareness Month initiatives, promoting the idea that intentional listening can lead to personal and professional success [5][6] - Proceeds from Guest's book, "All the Right Reasons," contribute to feeding hungry children, with each purchase providing 40 meals [6]

Core Viewpoint - USANA Health Sciences, Inc. is conducting its Fourth Quarter and fiscal year 2024 earnings conference call, highlighting the company's financial performance and future outlook [1][3]. Group 1: Company Overview - The conference call is hosted by Andrew Masuda, Director of Investor Relations, and includes key executives such as Jim Brown (President and CEO), Brent Neidig (Chief Commercial Officer), Doug Hekking (CFO), and Walter Noot (COO) [1][2][3]. - The call is being broadcast live and will be available for replay on the company's website shortly after the call [3]. Group 2: Financial Performance - Management will discuss forward-looking statements regarding the company's strategies and outlook for fiscal year 2025, along with the economic and operating environment uncertainties [4][5].

Financial Data and Key Metrics Changes - USANA reported a 7% sequential growth in net sales for Q4 2024, with adjusted diluted EPS increasing by 14% [13] - The company finished the year with solid results that exceeded expectations, driven by positive promotional activities, particularly in the United States where net sales grew 16% sequentially [14] Business Line Data and Key Metrics Changes - The acquisition of Hyatt, a direct-to-consumer company focused on children's health, was completed with a 78.8% ownership stake for $405 million, although its contribution to USANA's consolidated 2024 results was minimal due to the timing of the acquisition [11][12] - Hyatt generated $112 million in revenue for fiscal 2024 with an adjusted EBITDA margin over 20%, and is projected to grow between 29% to 42% in 2025 [21][40] Market Data and Key Metrics Changes - Notable strength was observed in Australia and New Zealand, with combined net sales growing 9% year over year [14] - The company anticipates continued aggressive promotional activity across all markets in 2025, building on the success seen in the U.S. and Canada [51] Company Strategy and Development Direction - USANA is focused on a customer growth strategy for 2025, which includes over 20 product launches and reformulations planned globally [16] - The company aims to enhance its brand message and value proposition to improve its overall brand reputation and differentiation in the market [18] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about USANA's future and emphasized the need to pivot in key areas to return to growth [8] - The management team is optimistic about the performance in various regions, including expectations for improved results in China despite a challenging environment [36] Other Important Information - The company is hosting a global convention in Salt Lake City in August 2025, which is expected to be a significant event for product launches and associate engagement [17] - Management highlighted the importance of engaging associates through training and recognition events throughout the year [19] Q&A Session Summary Question: What is driving the sales increases in the U.S., Australia, and New Zealand? - Management attributed the sales increases to a combination of increased promotional activity and tailored offerings created by local market leaders [25][30] Question: Can the successful strategies in the U.S. and Canada be replicated in other markets? - Management confirmed that the intention is to replicate successful strategies globally, with adjustments to the incentive structure planned for the second half of the year [31][33] Question: What is the revenue guidance for the core business by region in 2025? - Management expects recent trends to continue, with some regions showing potential for improvement, particularly in China [35][36] Question: How is the Hyatt acquisition performing compared to expectations? - Management reported that the Hyatt acquisition is going well, with strong leadership and operational advantages being integrated gradually [64][66] Question: What new product categories can be expected in 2025? - Management refrained from providing specifics but indicated that there will be upgrades and a focus on flagship products, particularly in skincare and nutritional supplements [70][72] Question: What is the outlook for the balance sheet in 2025? - Management stated that the company remains in a solid position with plans to retire $23 million in debt by midyear and maintain cash balances around $182 million [78][80]

Financial Data and Key Metrics Changes - USANA reported a 7% sequential growth in net sales for Q4 2024, with adjusted diluted EPS increasing by 14% [13][14] - The acquisition of Hyatt for $405 million is expected to enhance USANA's market position, although its contribution to 2024 results was minimal due to the timing of the acquisition [11][12] Business Line Data and Key Metrics Changes - The direct sales business showed solid results, particularly in the United States, where net sales grew 16% sequentially [14] - Australia and New Zealand also demonstrated strength, with combined net sales growing 9% year over year [14] Market Data and Key Metrics Changes - The U.S. market's positive response to promotional activities was a key driver for sales growth [14] - The company anticipates continued strong performance in various regions, including potential improvements in China despite a challenging environment [36][37] Company Strategy and Development Direction - USANA is focusing on a customer growth strategy for 2025, which includes over 20 product launches and reformulations planned globally [16][18] - The company aims to enhance its brand message and improve associate engagement activities to support growth [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about USANA's future and the foundational changes made in 2024 to position the company for long-term growth [7][10] - The management team is optimistic about Hyatt's growth plan and its potential to drive revenue in 2025 [21][22] Other Important Information - The company has appointed Dr. Katherine Armstrong as Chief Scientific Officer to lead global research and development efforts [16] - Hyatt generated $112 million in revenue with an adjusted EBITDA margin over 20% in fiscal 2024, with expectations for continued strong growth [21] Q&A Session Summary Question: What is driving the sales gains in the U.S., Australia, and New Zealand? - Management indicated that increased promotional activity and tailored offerings by local leaders contributed to the sales increases [25][30] Question: Can the sales performance be replicated in other markets? - Management confirmed that the intention is to replicate successful strategies in other markets [31][33] Question: What is the revenue guidance for the core business by region in 2025? - Management expects recent trends to continue, with improvements anticipated in previously challenging regions [35][36] Question: How is the Hyatt acquisition performing compared to expectations? - Management expressed satisfaction with Hyatt's performance and outlined plans for integration and potential margin expansion [64][66] Question: What new product categories can be expected in 2025? - Management refrained from disclosing specifics but indicated that new product launches and upgrades are planned throughout the year [70][72] Question: What is the outlook for the balance sheet in 2025? - Management stated that the company remains in a solid position with plans to retire debt and continue investing in the business [78][80]

Core Insights - USANA Health Sciences reported quarterly earnings of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.49 per share, but down from $0.87 per share a year ago, indicating a 26.4% year-over-year decline [1] - The company achieved revenues of $213.61 million for the quarter, surpassing the Zacks Consensus Estimate by 2.43%, but down from $221.08 million year-over-year [2] - USANA Health has surpassed consensus EPS estimates three times over the last four quarters and topped revenue estimates twice in the same period [2] Earnings Performance - The earnings surprise for the recent quarter was 30.61%, following a previous surprise of 14.29% when actual earnings were $0.56 against an expectation of $0.49 [1][2] - The current consensus EPS estimate for the upcoming quarter is $0.77, with expected revenues of $238.37 million, and for the current fiscal year, the consensus EPS is $2.89 on revenues of $950.03 million [7] Stock Performance and Outlook - USANA Health shares have declined approximately 8.9% since the beginning of the year, contrasting with a 1.7% gain in the S&P 500 [3] - The company's earnings outlook is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] - The Medical - Drugs industry, to which USANA belongs, is ranked in the top 49% of over 250 Zacks industries, suggesting a relatively strong industry performance [8]

Financial Performance - Q4 2024 net sales decreased by 3% year-over-year to $214 million, while full-year net sales were $855 million, down 7% from the previous year[2][13]. - Q4 2024 net earnings fell 73% year-over-year to $4.5 million, with diluted EPS at $0.23, a decline of 74%[12][13]. - Adjusted diluted EPS for Q4 2024 was $0.64, a 26% decrease year-over-year, while adjusted EBITDA was $25 million, down 21%[12][13]. - Adjusted diluted earnings per share for the twelve months ended December 30, 2023, is $3.30, compared to $2.19 for the previous year, reflecting a 50.23% increase[45]. - Adjusted EBITDA for the twelve months ended December 30, 2023, is $128.068 million, compared to $110.381 million for the previous year, indicating a growth of 16.06%[48]. Guidance and Projections - The company provided fiscal year 2025 guidance, projecting consolidated net sales between $920 million and $1.0 billion, and net earnings between $29 million and $41 million[4][27]. Customer Metrics - Active customers decreased to 454,000 in Q4 2024, down from 483,000 in Q4 2023, reflecting ongoing challenges in key markets[2][13]. Product Innovation and Launches - The company plans to enhance its product innovation strategy with new product launches, including the Celavive Resurfacing Serum and Whey Protein Isolate[10]. - The company plans to launch over 20 new and reformulated products globally in 2025, focusing on core nutritional and beauty products[29]. - The Hiya team is expected to deliver strong growth in 2025, focusing on expanding strategic partnerships and channel expansion[34]. Brand and Marketing Strategy - The company is enhancing its brand messaging and product packaging to align with high standards and improve brand reputation[32]. - The company aims to increase Associate engagement activities significantly in 2025 to support new product launches and incentive modifications[33]. Associate and Incentive Strategy - The company is modernizing its Associate incentive offerings, with changes expected to roll out in the second half of 2025 to drive sales and customer growth[30]. - The company is focused on aligning Associate pay for performance through strategic enhancements to its incentive offerings[30]. Acquisition and Integration Challenges - The management teams of USANA and Hiya are currently diverted from ongoing business operations due to the acquisition process[52]. - Key personnel retention from Hiya is a critical factor for the success of the acquisition[52]. - The realization of benefits from the acquisition, including efficiencies and cost synergies, remains uncertain[52]. - Successful integration of Hiya's business with USANA's business is essential and may face challenges[52]. - The costs, fees, expenses, and charges related to the acquisition are significant and need to be monitored[52]. Regional Performance - The Americas and Europe region saw a 1% increase in net sales year-over-year, with a sequential increase of 11% in Q4 2024[20][25]. Tax and Financial Metrics - The effective tax rate for fiscal 2024 increased to 44.9%, up from 37.7% in fiscal 2023, influenced by acquisition transaction costs[19].

Core Viewpoint - The article emphasizes the importance of value investing and highlights USANA Health Sciences (USNA) as a strong value stock based on its financial metrics and Zacks Rank system [2][3][7] Company Metrics - USNA has a Zacks Rank of 1 (Strong Buy) and a Value grade of A, indicating it is among the highest-quality value stocks currently available [3] - The company has a PEG ratio of 0.83, significantly lower than the industry average of 2.10, suggesting it is undervalued relative to its expected earnings growth [4] - USNA's P/B ratio stands at 1.12, which is attractive compared to the industry's average P/B of 1.27, indicating a favorable market value against its book value [5] - The P/CF ratio for USNA is 7.93, lower than the industry average of 8.73, further supporting the notion that the stock is undervalued based on its cash flow outlook [6] Industry Context - The average PEG ratio for USNA's industry is 2.10, while the average P/B ratio is 1.27, and the average P/CF ratio is 8.73, highlighting the relative attractiveness of USNA's financial metrics [4][5][6]

Core Viewpoint - USANA Health Sciences (USNA) is currently positioned as a better value opportunity compared to Stevanato Group (STVN) based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Earnings Outlook - USNA has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings outlook, while STVN has a Zacks Rank of 4 (Sell) [3]. - The Zacks Rank system emphasizes companies with positive earnings estimate revisions, suggesting that USNA is likely experiencing an improvement in its earnings outlook [3]. Group 2: Valuation Metrics - USNA has a forward P/E ratio of 10.23, significantly lower than STVN's forward P/E of 32.99, indicating that USNA may be undervalued [5]. - The PEG ratio for USNA is 0.85, while STVN's PEG ratio is 6.69, further suggesting that USNA is a more attractive investment based on expected earnings growth [5]. - USNA's P/B ratio is 1.13, compared to STVN's P/B of 4.60, reinforcing the notion that USNA is undervalued relative to its book value [6]. Group 3: Overall Value Assessment - Based on the solid earnings outlook and favorable valuation figures, USNA is assessed as the superior value option compared to STVN [7].

Company Overview - USANA Health Sciences (NYSE: USNA) is a global leader in health and wellness products, operating in 25 countries since its founding in 1992 [7] - The company emphasizes the importance of social wellness and clear communication to build trust with customers and distributors [7] Key Initiatives - Kevin Guest, the Executive Chairman of USANA, is promoting International Boost Self-Esteem Month throughout February, encouraging individuals to prioritize self-esteem and personal empowerment [2][4] - Guest's book, "All the Right Reasons: 12 Timeless Principles for Living a Life in Harmony," shares insights on overcoming setbacks and building confidence, with proceeds supporting feeding hungry children [5] Strategies for Self-Esteem - Guest outlines five effective strategies to enhance self-esteem: 1. Practice Self-Compassion: Treat oneself with kindness and replace self-criticism with supportive affirmations [6] 2. Set Achievable Goals: Focus on celebrating progress through small, actionable steps [6] 3. Challenge Negative Thoughts: Replace negative self-talk with positive affirmations based on strengths [6] 4. Practice Daily Gratitude: Write down three things to be grateful for each day to foster optimism [6] 5. Learn Assertiveness Skills: Communicate thoughts and needs confidently to promote self-respect [6]