Nu Skin(NUS)2024-11-08 01:17Revenue Performance - Revenue for Q3 2024 decreased 14% to 498.8 million in Q3 2023, and for the first nine months of 2024, revenue decreased 13% to 1.5 billion in the prior-year period[85]. - The total revenue for Nu Skin in Q3 2024 was 438.245 million in Q3 2023[90]. - The Americas segment revenue decreased by 15.8% in Q3 2024 and 21.1% in the first nine months[90]. - Mainland China segment revenue decreased by 24.5% in Q3 2024 and 21.1% in the first nine months[90]. - Total customers decreased by 15% year-over-year to 831,768 as of September 30, 2024, down from 978,907[97]. - Customer, Paid Affiliates, and Sales Leaders declined 15%, 20%, and 19% year-over-year, respectively[85]. - The company faced macroeconomic pressures impacting consumer spending and customer acquisition, contributing to revenue declines[86]. - Seasonal factors, such as local New Year celebrations in Asian markets, negatively impact revenue in the first quarter, while the third quarter is affected by vacation patterns[150]. Profitability and Earnings - Earnings per share for Q3 2024 increased to (0.74) in Q3 2023, while EPS for the first nine months decreased to 0.03 in the prior-year period[87]. - Net income for Q3 2024 was 37.0 million in the prior-year period[129]. - Gross profit as a percentage of revenue increased to 70.1% for the third quarter of 2024, compared to 58.6% for the prior-year period[118]. - Selling expenses as a percentage of revenue increased to 39.0% for the third quarter of 2024, compared to 37.6% for the prior-year period[120]. - Interest expense decreased to 7.5 million in the prior-year period, primarily due to reduced borrowings on the revolving credit facility[126]. Investments and Capital Expenditures - Total Rhyz Investments revenue for Q3 2024 was 60.5 million in Q3 2023[90]. - Capital expenditures for the nine months ended September 30, 2024, were 35 million to 27.8 million in revenue for the first nine months of 2024[100]. Foreign Currency and Economic Factors - The company may reduce exposure to foreign currency fluctuations through foreign currency exchange contracts and intercompany loans, but does not use derivative financial instruments for trading or speculative purposes[158]. - The reported revenue and earnings are positively impacted by a weakening of the U.S. dollar and negatively impacted by a strengthening of the U.S. dollar due to a significant portion of business derived from outside the United States[156]. - The company's revenue and profitability forecasts for goodwill impairment assessments considered recent and historical performance, strategic initiatives, industry trends, and macroeconomic factors[148]. Impairment Charges - The company recorded a non-cash goodwill impairment charge of 10.1 million was recognized for the BeautyBio retail asset group in Q2 2024, as its carrying value exceeded the estimated fair value[125]. Cash Flow and Financial Position - Cash generated from operations in the first nine months of 2024 was 64.5 million in the same period of 2023[130]. - As of September 30, 2024, the company had 267.8 million at the end of 2023[130]. - The company had 365.0 million in outstanding borrowings under its revolving credit facility and term loan facility, respectively, as of September 30, 2024[134]. - The effective tax rate for the nine-month period ended September 30, 2024, was 5.8% of pre-tax income, influenced by goodwill impairment and restructuring charges[128]. Investor Relations - The company's Investor Relations website provides access to financial reports and other material information for investors[153].