INVESTOR OVERVIEW INVESTOR OVERVIEW NYSE: USNA Forward-Looking Statements. April 2025 This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These forward-looking statements are based on current plans, expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as "expect," "enhance," "drive," "anticipate," "intend," "improve," "promote," "should," " ...

Financial Data and Key Metrics Changes - Consolidated net sales grew 12% year-over-year in constant currency, including the first full quarter of contribution from Hiya [7][8] - Active customers in the direct selling business grew modestly on a sequential basis for the second consecutive quarter [8] Business Line Data and Key Metrics Changes - The direct selling business saw sequential first quarter net sales and active customers in Mainland China grow 6% and 4%, respectively [8] - Hiya business continues to deliver robust results with strong growth in net sales and active monthly subscribers [12][13] Market Data and Key Metrics Changes - Consumer sentiment in key markets remains cautious, but there are pockets of strength observed [8] - Attendance at the China National Sales Meeting in Nanjing was strong, indicating positive engagement [10] Company Strategy and Development Direction - The company continues to execute an Associate first strategy, prioritizing associate engagement through leadership events [9] - Plans for new product launches are in place, with a focus on children's health and wellness [14][28] Management Comments on Operating Environment and Future Outlook - Management expressed uncertainty regarding potential trade policies and tariffs but has not reflected this in financial guidance [15] - The supply chain team has proactively built inventory to mitigate tariff exposure [15][39] Other Important Information - The company is exploring alternative sourcing relationships to address potential tariff impacts [15] - New product introductions are expected to accelerate in the second half of the year [49][50] Q&A Session Summary Question: Plans for additional incentives in China and South Korea - Management confirmed that promotional incentives are planned throughout the year to drive value for distributors and customers [22][23] Question: Update on Hiya's new product launches - New product launches are planned systematically throughout the year, with a significant launch expected in May [26][27] Question: Progress in India - India remains a promising market with high expectations, although growth is currently slow [35][36] Question: Impact of tariffs and inventory levels - The company has built up inventory for nutritional products, which is expected to mitigate tariff impacts [39][40] Question: New product reception in China - New products launched in China, including a chewable calcium product for children, received positive feedback [47][48] Question: Opportunities from the elimination of artificial ingredients - Management believes the company is well-positioned to capitalize on the trend towards more natural products [52][53]

Financial Data and Key Metrics Changes - Consolidated net sales grew 12% year over year in constant currency, including the first full quarter of contribution from Hyatt [6][9] - Active customers in direct selling increased significantly, with Mainland China seeing a sequential growth of 64% in both net sales and active customers [6][9] Business Line Data and Key Metrics Changes - The direct selling business remains on track to meet sales guidance, with successful product launches and promotions contributing to growth [8][9] - The newly acquired Hyatt business continues to deliver robust results, with strong growth in net sales and active monthly subscribers [9][10] Market Data and Key Metrics Changes - Strong attendance at the China National Sales Meeting in Nanjing, with 13,000 attendees, indicating positive momentum in the Chinese market [7][21] - The company is optimistic about the Indian market, which is still in a slow roll but has high expectations for future growth [29] Company Strategy and Development Direction - The company is focused on an "associate first" strategy, prioritizing associate engagement and holding leadership events to drive business [6][8] - Plans for new product launches are in place, with a focus on children's health and wellness, and the company is exploring additional channels for product distribution [23][40] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding potential trade policies and tariffs, noting that they have proactively built inventory to mitigate risks [11][13] - The company is confident in the continued growth of its business and is focused on maintaining operational synergies with Hyatt while not overwhelming their team [26][27] Other Important Information - The company has introduced new products in China, including a chewable calcium product for children, which received positive feedback [39][40] - The management team is actively working on multiple sourcing strategies to lessen the impact of tariffs and ensure supply chain stability [34][35] Q&A Session Summary Question: Plans for additional incentives in China and South Korea - Management confirmed that they are always evaluating promotional incentives and have plans for additional promotions throughout the year [20][21] Question: Timing and specifics of new product launches - New product launches are planned systematically throughout the year, with significant launches expected in May and during the international convention in August [22][40] Question: Update on synergy opportunities with Hyatt - Management is taking a measured approach to synergies, focusing on operational improvements without distracting Hyatt from its strategic goals [26][27] Question: Progress in the Indian market - The Indian market is still seen as promising, with ongoing efforts to increase growth momentum [29] Question: Impact of tariffs and inventory levels - The company has built up inventory for raw materials, particularly for nutritional products, to prepare for potential tariff impacts [32][33]

Group 1: Earnings Performance - USANA Health Sciences reported quarterly earnings of $0.73 per share, exceeding the Zacks Consensus Estimate of $0.70 per share, but down from $0.86 per share a year ago, representing an earnings surprise of 4.29% [1] - The company posted revenues of $249.54 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 2.67%, compared to $227.8 million in the same quarter last year [2] - Over the last four quarters, USANA Health has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2: Stock Performance and Outlook - USANA Health shares have declined approximately 33.6% since the beginning of the year, while the S&P 500 has decreased by 12.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.54 on revenues of $220.37 million, and for the current fiscal year, it is $2.59 on revenues of $941.62 million [7] - The estimate revisions trend for USANA Health is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Medical - Drugs industry, to which USANA Health belongs, is currently in the top 24% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]

Financial Performance - Net sales for Q1 2025 reached $250 million, a 10% increase year-over-year, with a 12% growth in constant currency[4] - Net earnings decreased to $9.4 million, down 43% from $16.5 million in Q1 2024[4] - Diluted EPS fell to $0.49, a 43% decline compared to $0.86 in the previous year[4] - Adjusted diluted EPS was $0.73, down 15% from $0.86 year-over-year[4] - Net sales for the quarter ended March 29, 2025, were $249.539 million, a 9.5% increase from $227.800 million in the same quarter of 2024[30] - Gross profit for the quarter was $197.094 million, representing a gross margin of 79.0% compared to 81.1% in the prior year[30][40] - Earnings from operations were $15.671 million, down 36.5% from $24.673 million in the prior year[30] - Total operating expenses increased to $181.423 million, up from $160.058 million in the same quarter of 2024, an increase of 13.4%[30] Customer Metrics - Active Customers in direct selling decreased to 459,000 from 494,000[4] - Active Direct Selling Associates decreased to 184,000 as of March 29, 2025, down from 197,000 a year earlier, a decline of 6.6%[35] - Active Preferred Customers decreased to 275,000 as of March 29, 2025, down from 297,000 in the prior year, a decline of 7.4%[37] - Hiya reported net sales of $37 million and 224,000 Active Monthly Subscribers[10] Outlook and Projections - The company reiterated its fiscal year 2025 outlook, projecting consolidated net sales between $920 million and $1.0 billion[13] - Expected net earnings for fiscal year 2025 are between $29 million and $41 million[13] - The fiscal year 2025 outlook includes a 53-week year, providing an additional week of sales compared to fiscal 2024[14] Acquisition and Contributions - The acquisition of Hiya Health Products contributed $37.089 million in sales for the quarter, representing 14.9% of total sales[34] - USANA maintains a 78.8% controlling ownership stake in Hiya Health Products, focusing on children's health and wellness[28] Regional Performance - The company reported a 6.3% decline in sales from the Asia Pacific region, with total sales of $173.407 million compared to $185.101 million in the previous year[34] Cash Flow - The company generated $15 million in operating cash flow and ended the quarter with $180 million in cash and cash equivalents[11]

To learn more about USANA and the science behind its products, please visit USANA.com. SALT LAKE CITY, April 14, 2025 /PRNewswire/ -- USANA Health Sciences, Inc., a global leader in cellular nutrition, recently conducted a clinical study on its Celavive Resurfacing Serum to evaluate the efficacy and tolerance of the product. The results showed that Resurfacing Serum was well-tolerated by all subjects and users showed statistically significant improvements in the appearance of their skin in just two weeks. T ...

Company Overview - USANA Health Sciences is a global leader in health and wellness products, founded in 1992, and operates in 25 countries [5] Core Message - The convergence of International Guitar Month and Stress Awareness Month highlights the healing power of music, particularly the guitar, in reducing stress and enhancing mental well-being [1][2] Benefits of Playing Guitar - Playing guitar serves as a stress escape, allowing individuals to find calm through music [6] - Engaging in guitar playing boosts mood by releasing dopamine, the happiness chemical [6] - Focusing on music promotes mindfulness, which helps reduce anxiety and centers the mind [6] - Sharing music fosters social connections and builds emotional bonds [6] - Songwriting provides a creative outlet for expressing emotions and alleviating stress [6] - Relaxing guitar sessions contribute to better sleep quality [6]

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].