USANA Health Sciences Reports First Quarter 2024 Results SALT LAKE CITY, April 30, 2024 (BUSINESS WIRE)—USANA Health Sciences, Inc. (NYSE: USNA) today announced financial results for its fiscal first quarter ended March 30, 2024. Key Financial & Operating Results | | | Consolidated Results | | | --- | --- | --- | --- | | Net Sales | $228 million | • | -8% vs. Q1 2023 | | | | • | -5% constant currency vs. Q1 2023 | | | | • | +3% sequentially | | | | • | +2% constant currency sequentially | | | | • | -$7 mill ...

Financial Performance - The company reported a revenue increase of 15% year-over-year, reaching $1.2 billion for the quarter[7] - Operating margin improved to 18%, up from 15% in the previous year[7] - The company projects a revenue growth of 10-12% for the next quarter, driven by new product launches[7] - The company reported a backlog of orders valued at $300 million, indicating strong future demand[7] User Growth and Market Expansion - User base expanded by 20%, with a total of 3 million active users reported[7] - The company plans to enter two new international markets by Q3 2024, aiming for a 5% market share within the first year[7] Product Development - Investment in research and development increased by 25%, totaling $50 million for the year[7] - A new product line is expected to launch in Q2 2024, projected to contribute an additional $100 million in revenue[7] Strategic Moves - The company has completed a strategic acquisition of a competitor for $200 million, enhancing its market position[7] Customer Satisfaction - Customer satisfaction ratings improved to 90%, reflecting enhanced service and product quality[7] Risks and Challenges - The company faces risks from political events, natural disasters, and health crises that may negatively impact economic conditions and consumer behavior[21] - Changes in the legal and regulatory environment, including data security and privacy regulations, could affect operational compliance and costs[21] - Geopolitical tensions, particularly involving Russia, Ukraine, and the Middle East, may disrupt market stability and foreign relations[21] - Fluctuations in foreign currency values against the U.S. dollar could impact financial performance and profitability[21] - Supply chain disruptions, including raw material shortages and price increases, pose risks to production and operational efficiency[21] - The company must ensure compliance with debt covenants in its Credit Facility to maintain financial stability[21] - Legal compliance risks, including litigation and tax-related costs, may differ materially from expected amounts, affecting financial forecasts[21] - Information technology system failures and cybersecurity threats could compromise data security and operational integrity[21] - Risks associated with acquisitions, divestitures, and investments may impact strategic growth and financial outcomes[21]

Financial Data and Key Metrics Changes - The company reported fourth quarter net sales and diluted EPS above expectations, ending the year with $330 million in cash and essentially debt-free, while generating strong free cash flow [4][78]. - The company anticipates flat or declining profit margins for the current year, indicating a cautious outlook on profitability [10]. Business Line Data and Key Metrics Changes - The Greater China region experienced double-digit sequential growth in active customers, reflecting positive responses to incentive offerings [78]. - Malaysia saw a 7% increase in local currency sales, while the Philippines struggled, indicating differing market responses to promotional initiatives [14][86]. Market Data and Key Metrics Changes - Active customer growth was noted in Greater China, with a 5% year-over-year increase, although local currency sales were slightly down, attributed to promotional spending [43][87]. - The Philippines market has been significantly impacted by socioeconomic factors, leading to weaker performance compared to Malaysia [86]. Company Strategy and Development Direction - The company plans to focus on increasing engagement with associate leaders, enhancing incentive opportunities, and expanding operations in India, alongside product innovation and potential acquisitions [19][60]. - The strategy for 2024 includes a renewed focus on executing a global growth strategy aimed at consistent active customer growth [60]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging operating environment in 2023 due to inflation and other economic factors but expressed optimism about long-term growth in the global health and wellness market [78][20]. - The company is committed to investing in its direct selling business and exploring M&A opportunities within the wellness industry [83][110]. Other Important Information - The company has returned to a regular cadence of meetings and events in China, which had been restricted during the COVID era, indicating a positive shift in operational dynamics [117]. - The company is monitoring transportation costs closely, particularly in light of potential impacts from global events like the Suez Canal situation [104][106]. Q&A Session Summary Question: What is the outlook for pricing in 2024? - Management indicated that pricing adjustments in 2024 will be significantly less than in 2023, with a focus on targeted product pricing rather than broad adjustments [109]. Question: How is the company addressing market opportunities related to reduced food consumption? - The company is well-positioned to address nutritional needs and is exploring M&A opportunities while ensuring that its product offerings align with market demands [113]. Question: What is the company's strategy for promotions in 2024? - The company plans to tailor promotions market by market, moving away from global promotions to more localized strategies that resonate with individual markets [103]. Question: How is the regulatory environment in China affecting business? - The company has resumed regular interactions with government agencies post-COVID and is optimistic about future growth in the Chinese market [116][117]. Question: What are the capital allocation priorities given the strong balance sheet? - The company is considering various opportunities for capital allocation, including investments in organic growth and potential acquisitions in the wellness sector [67][110].

Table of Contents 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 September 30, 2023 or o 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 registra ...

USANA Health Sciences, Inc. (NYSE:USNA) Q3 2023 Earnings Conference Call October 25, 2023 11:00 AM ET Company Participants Andrew Masuda – Investor Relations Jim Brown – President and Chief Executive Officer Doug Hekking – Chief Financial Officer Brent Neidig – Chief Commercial Officer Conference Call Participants Anthony Lebiedzinski – Sidoti Doug Lane – Water Tower Research Ivan Feinseth – Tigress Financial Partners Operator Hello and welcome to USANA Health Sciences' Third Quarter Earnings Call. My name ...

Linda Bolton-Weiser So I'm not sure I'm understanding. So the China promotion that was better than expected occurred in the second quarter and that high gross margin business. So that helps the gross margin. Is that what you're trying to say? Doug Hekking Yes, that's what I'm saying. Linda Bolton-Weiser Okay. So then maybe going forward, we should be a little a little lower in our expectation maybe for gross margin. Doug Hekking Yes. Yes. I think you saw something is probably a little bit better than what w ...

USANA Health Sciences, Inc. (NYSE:USNA) Q1 2023 Earnings Conference Call April 26, 2023 11:00 AM ET Company Participants Andrew Masuda - Director of Investor Relations Kevin Guest - Chief Executive Officer Jim Brown - President Doug Hekking - Chief Financial Officer Walter Noot - Chief Operating Officer Brent Neidig - Chief Officer and Managing Director of China David Mulham - Chief Sales Officer Conference Call Participants Linda Bolton Weiser - D. A. Davidson & Co. Operator Good day and welcome to today’s ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 or o 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 registra ...

USANA Health Sciences, Inc. (NYSE:USNA) Q4 2022 Earnings Conference Call February 8, 2023 11:00 AM ET Company Participants Andrew Masuda - Investor Relations Kevin Guest - Chairman and Chief Executive Officer Jim Brown - President Doug Hekking - Chief Financial Officer Brent Neidig - Chief Officer and Managing Director, China Conference Call Participants Linda Bolton-Weiser - D.A. Davidson Susan Anderson - Canaccord Genuity Ivan Feinseth - Tigress Financial Partners Operator Good day and welcome to today’s ...

USANA Health Sciences, Inc. (NYSE:USNA) Q3 2022 Earnings Conference Call October 26, 2022 11:00 AM ET Company Participants Andrew Masuda – Investor Relations Kevin Guest – Chief Executive Officer and Chairman of the Board Doug Hekking – Chief Financial Officer Conference Call Participants Linda Bolton-Weiser – D.A. Davidson Operator Hello, and welcome to USANA Health Sciences Third Quarter Earnings Call. My name is Sarah, and I will be your coordinator for today's event. Please note, this conference is bein ...