Nature's Sunshine(NATR) - 2024 Q2 - Quarterly Results

Financial Performance - Net sales for Q2 2024 decreased by 5% to $110.6 million compared to $116.5 million in Q2 2023, with a 3% decline in constant currency[1][4] - GAAP net income attributable to common shareholders decreased to $1.3 million, or $0.07 per diluted share, down from $2.4 million, or $0.12 per diluted share in the prior year[1][6] - Adjusted EBITDA declined by 8% to $10.4 million compared to $11.3 million in Q2 2023[1][6] - Net sales for the second quarter of 2024 were $110,551, a decrease of 5.7% compared to $116,548 in the same period of 2023[19] - Net income attributable to common shareholders for the second quarter of 2024 was $1,349, compared to $2,422 in the same quarter of 2023, representing a decrease of 44.4%[19] - Basic earnings per share attributable to common shareholders decreased to $0.07 in Q2 2024 from $0.13 in Q2 2023[19] - Net income for the three months ended June 30, 2024, was $1,488,000, a decrease of 44.4% compared to $2,677,000 for the same period in 2023[23] - Non-GAAP net income for the six months ended June 30, 2024, was $3,978,000, compared to $7,566,000 for the same period in 2023, reflecting a decline of 47.5%[24] - Diluted income per share, as reported, was $0.07 for the three months ended June 30, 2024, compared to $0.12 for the same period in 2023[24] Cost and Expenses - Gross margin fell by 125 basis points to 71.4% from 72.6% year-over-year, impacted by inflation and unfavorable foreign exchange[1][4] - SG&A expenses were reduced to $38.6 million from $42.3 million year-over-year, representing 34.9% of net sales compared to 36.3%[1][5] - Depreciation and amortization expenses increased to $3,499,000 for the three months ended June 30, 2024, compared to $2,833,000 for the same period in 2023[23] - Share-based compensation expense was $1,261,000 for the three months ended June 30, 2024, slightly down from $1,437,000 in the same period of 2023[23] - Provision for income taxes for the three months ended June 30, 2024, was $2,935,000, compared to $3,273,000 for the same period in 2023[23] Cash Flow and Assets - Net cash provided by operating activities for the first half of 2024 was $3.5 million, significantly lower than $17.3 million in the same period last year[1][7] - Cash and cash equivalents at the end of the period were $68,695, down from $82,373 at the beginning of the period, a decrease of 16.6%[22] - Net cash provided by operating activities for the six months ended June 30, 2024, was $3,495, compared to $17,264 in the same period of 2023, a decline of 79.8%[22] - Total current assets as of June 30, 2024, were $152,036, down from $165,817 at the end of 2023, a decline of 8.3%[21] - Total liabilities decreased to $79,431 as of June 30, 2024, from $90,233 at the end of 2023, a reduction of 12%[21] Strategic Actions - Nature's Sunshine implemented strategic actions including upgrading its digital platform and streamlining overhead to improve productivity, aiming to reduce annualized expenses by over $5 million[2] - The company expects full-year 2024 net sales to range between $436 million and $445 million, down from a previous estimate of $455 million to $480 million[1][8] - The company incurred $7,040 in capital expenditures for property, plant, and equipment during the first half of 2024, compared to $4,747 in the same period of 2023[22] Other Financial Metrics - Nature's Sunshine reported a loss of $1.2 million in other net losses, primarily due to foreign exchange losses, compared to a loss of $1.1 million in Q2 2023[1][5] - Adjusted EBITDA for the six months ended June 30, 2024, was $19,550,000, down 4.4% from $20,440,000 for the same period in 2023[23] - Total adjustments for the six months ended June 30, 2023, amounted to $3,636,000, impacting the non-GAAP net income attributable to common shareholders[24] - The weighted average diluted common shares outstanding decreased to 19,119 in Q2 2024 from 19,747 in Q2 2023, a reduction of 3.2%[19]