Nu Skin(NUS) - 2020 Q1 - Quarterly Report

Report Information Nu Skin Enterprises, Inc. filed its Q1 2020 quarterly report (Form 10-Q), classified as a Large Accelerated Filer, detailing company specifics - Nu Skin Enterprises, Inc. submitted its quarterly report (Form 10-Q) for the period ended March 31, 2020[1] - The company is classified as a "Large accelerated filer"[2] Company Basic Information | Indicator | Details | | :--- | :--- | | Company Name | NU SKIN ENTERPRISES, INC. | | State of Incorporation | Delaware | | Stock Symbol | NUS | | Listing Exchange | New York Stock Exchange | | Shares Outstanding as of May 1, 2020 | 51,899,031 Class A Common Shares | Part I. Financial Information The company's unaudited consolidated financial statements for Q1 2020 show decreased revenue and net income, offset by improved operating cash flow Item 1. Financial Statements (Unaudited) This section presents the company's unaudited consolidated financial statements for Q1 2020, detailing balance sheets, income, comprehensive income, equity, and cash flows, with accompanying notes Consolidated Balance Sheets Presents the company's consolidated balance sheets as of March 31, 2020, and December 31, 2019, detailing assets, liabilities, and equity Consolidated Balance Sheet Key Data (as of March 31, 2020 vs December 31, 2019) | Indicator (thousands of dollars) | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Total Assets | 1,746,319 | 1,769,006 | | Total Liabilities | 945,821 | 893,717 | | Total Stockholders' Equity | 800,498 | 875,289 | | Cash and Cash Equivalents | 352,578 | 335,630 | | Inventories, Net | 257,474 | 275,891 | | Total Current Liabilities | 420,104 | 356,760 | | Long-Term Debt | 327,197 | 334,461 | Consolidated Statements of Income Details the company's consolidated statements of income for the three months ended March 31, 2020, and 2019, showing revenue, cost of sales, gross profit, operating income, income tax provision, and net income Consolidated Statements of Income Key Data (for the three months ended March 31) | Indicator (thousands of dollars) | 2020 | 2019 | | :--- | :--- | :--- | | Revenue | 518,028 | 623,623 | | Cost of Sales | 125,793 | 146,664 | | Gross Profit | 392,235 | 476,959 | | Operating Income | 36,565 | 68,653 | | Income Tax Provision | 10,661 | 22,803 | | Net Income | 19,730 | 43,002 | | Basic Net Income Per Share | 0.36 | 0.78 | | Diluted Net Income Per Share | 0.36 | 0.77 | Consolidated Statements of Comprehensive Income Presents the company's consolidated statements of comprehensive income for the three months ended March 31, 2020, and 2019, including net income and other comprehensive income (loss) Consolidated Statements of Comprehensive Income Key Data (for the three months ended March 31) | Indicator (thousands of dollars) | 2020 | 2019 | | :--- | :--- | :--- | | Net Income | 19,730 | 43,002 | | Other Comprehensive (Loss) Income, Net of Tax | (14,997) | 4,140 | | Comprehensive Income | 4,733 | 47,142 | Consolidated Statements of Stockholders' Equity Details changes in the company's consolidated stockholders' equity for the three months ended March 31, 2020, and January 1, 2020, including total equity, treasury stock, and retained earnings Stockholders' Equity Changes Key Data (for the three months ended March 31) | Indicator (thousands of dollars) | March 31, 2020 | January 1, 2020 | | :--- | :--- | :--- | | Total Stockholders' Equity | 800,498 | 875,289 | | Treasury Stock | (1,384,036) | (1,324,826) | | Retained Earnings | 1,726,816 | 1,727,772 | | Cash Dividends | (20,686) | (20,531) | | Repurchase of Class A Common Stock | (60,886) | (825) | Consolidated Statements of Cash Flows Presents the company's consolidated statements of cash flows for the three months ended March 31, 2020, and 2019, detailing cash flows from operating, investing, and financing activities Consolidated Statements of Cash Flows Key Data (for the three months ended March 31) | Indicator (thousands of dollars) | 2020 | 2019 | | :--- | :--- | :--- | | Net Cash from Operating Activities | 69,027 | (8,186) | | Net Cash from Investing Activities | (19,184) | (18,142) | | Net Cash from Financing Activities | (22,979) | (52,967) | | Net Increase (Decrease) in Cash and Cash Equivalents | 16,948 | (76,623) | | Cash and Cash Equivalents at End of Period | 352,578 | 310,288 | Notes to Consolidated Financial Statements Provides detailed notes to the consolidated financial statements, explaining significant accounting policies, goodwill, debt, leases, capital stock, fair value, income taxes, segment information, commitments, contingencies, and restructuring Note 1. The Company Describes Nu Skin Enterprises, Inc. as a holding company operating globally through its direct selling business, focusing on personal care and wellness products - Nu Skin Enterprises, Inc. is a holding company, with its primary operating unit being the global direct selling company Nu Skin[15] - The company develops and distributes personal care and wellness products under brands like Nu Skin, Pharmanex, and ageLOC[15] - The company reports nine operating segments: seven geographic regions (Mainland China, South Korea, Southeast Asia, Americas/Pacific, Japan, Hong Kong/Taiwan, EMEA), a Manufacturing segment, and a Grow Tech segment[15] Note 2. Summary of Significant Accounting Policies Outlines the company's significant accounting policies, including US GAAP compliance, potential COVID-19 impacts, and the adoption of new accounting standards - Financial statements are prepared in accordance with US Generally Accepted Accounting Principles (US GAAP) and include management's necessary adjustments[16] - The COVID-19 pandemic may impact future estimates for goodwill, other long-lived asset impairments, income tax provisions, and inventory recoverability[16] - The adoption of new accounting standards ASU 2016-13, ASU 2018-13, and ASU 2018-15 did not have a material impact on the company's consolidated financial statements[17][18][19] Net Inventory (thousands of dollars) | Indicator | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Raw Materials | 85,167 | 87,942 | | Finished Goods | 172,307 | 187,949 | | Total Inventories, Net | 257,474 | 275,891 | - Contract liabilities (deferred revenue) related to customer loyalty programs were $11.9 million as of March 31, 2020, and $12.5 million as of December 31, 2019[21][22] Note 3. Goodwill Details the company's goodwill by reporting segment as of March 31, 2020, and December 31, 2019 Goodwill by Reporting Segment (thousands of dollars) | Segment | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Mainland China | 32,179 | 32,179 | | South Korea | 29,261 | 29,261 | | Americas/Pacific | 9,449 | 9,449 | | Southeast Asia | 18,537 | 18,537 | | Japan | 16,019 | 16,019 | | Hong Kong/Taiwan | 6,634 | 6,634 | | EMEA | 2,875 | 2,875 | | Manufacturing | 72,469 | 72,469 | | Grow Tech | 9,150 | 9,150 | | Total | 196,573 | 196,573 | Note 4. Debt Provides information on the company's debt facilities, including a credit agreement from April 2018, and confirms compliance with all covenants as of March 31, 2020 - The company entered into a credit agreement in April 2018, including a $400 million term loan and a $350 million revolving credit facility[24] - As of March 31, 2020, the company was in compliance with all covenants under its credit agreement[24] Summary of Debt Facilities (thousands of dollars) | Facility or Arrangement | Balance as of March 31, 2020 | Balance as of December 31, 2019 | | :--- | :--- | :--- | | Credit Agreement Term Loan | 360,000 | 365,000 | | Credit Agreement Revolving Credit Facility | 65,000 | 0 | | Current Portion of Debt | 95,000 | 27,500 | Note 5. Leases Describes the company's operating and finance leases for various facilities and equipment, including weighted-average lease terms and discount rates - The company holds operating and finance leases for regional offices, manufacturing facilities, retail centers, distribution centers, and certain equipment[27] - As of March 31, 2020, the weighted-average remaining lease term for operating leases was 6.4 years, with a weighted-average discount rate of 4.8%[28] Lease Expense (thousands of dollars) | Lease Expense | Three Months Ended March 31, 2020 | Three Months Ended March 31, 2019 | | :--- | :--- | :--- | | Operating Lease Cost | 13,136 | 12,861 | | Variable Lease Cost | 974 | 1,052 | | Short-Term Lease Cost | — | 52 | | Sublease Income | (1,131) | (1,593) | | Total Lease Expense | 13,024 | 12,372 | Lease Liability Maturities (thousands of dollars) | Year Ended December 31 | Operating Leases | | :--- | :--- | | 2020 | 37,395 | | 2021 | 43,231 | | 2022 | 28,941 | | 2023 | 20,119 | | 2024 | 15,597 | | Thereafter | 30,881 | | Total | 176,164 | | Less: Imputed Interest | 27,563 | | Total Principal Liability | 148,601 | Note 6. Capital Stock Details capital stock activities, including the declaration and payment of quarterly cash dividends and share repurchases under the company's stock repurchase program - In February 2020, the Board of Directors declared a quarterly cash dividend of $0.375 per share, paid on March 11, 2020, totaling $20.7 million[33] - In the first quarter of 2020, the company repurchased 2.6 million shares of Class A common stock for $60.9 million under its stock repurchase program[33] - As of March 31, 2020, $409.3 million remained available for repurchase under the stock repurchase program[33] Note 7. Fair Value Explains the company's measurement of certain financial assets at fair value according to a fair value hierarchy (Level 1, Level 2, Level 3) - The company measures certain financial assets at fair value according to a fair value hierarchy (Level 1, Level 2, Level 3)[35] Financial Assets Measured at Fair Value by Level (thousands of dollars) | Financial Asset | Total as of March 31, 2020 | Total as of December 31, 2019 | | :--- | :--- | :--- | | Cash Equivalents and Current Investments | 49,670 | 54,642 | | Other Long-Term Assets | 202 | 3,216 | | Life Insurance Contracts | 35,339 | 41,707 | | Total | 85,211 | 99,565 | Note 8. Income Taxes Provides key income tax data, including income tax provision, effective tax rate, and deferred tax assets, and discusses the impact of the CARES Act Income Tax Key Data (thousands of dollars, percentage) | Indicator | Q1 2020 | Q1 2019 | | :--- | :--- | :--- | | Income Tax Provision | 10,700 | 22,800 | | Effective Tax Rate | 35.1% | 34.7% | | Net Deferred Tax Assets | 19,500 | 20,000 | | Undistributed Indefinitely Reinvested Foreign Earnings | 60,000 (as of December 31, 2019) | - | - The company expects the total unrecognized tax benefits (net of foreign currency adjustments) to potentially decrease by approximately $0.5 million to $1.5 million within the next 12 months[43] - The CARES Act is not expected to have a material impact on the company's effective tax rate for 2020[89] Note 9. Segment Information Presents detailed segment information, including revenue, contribution, and capital expenditures across the company's geographic and operational segments - The company reports revenue based on seven geographic regions, a Manufacturing segment, and a Grow Tech segment[45] - Segment contribution is a key measure of profitability controllable by segment managers, excluding certain intercompany expenses[46] Revenue by Segment (thousands of dollars) | Segment | March 2020 | March 2019 | | :--- | :--- | :--- | | Mainland China | 137,696 | 208,488 | | South Korea | 75,719 | 83,853 | | Americas/Pacific | 74,573 | 86,456 | | Southeast Asia | 69,586 | 72,495 | | Japan | 61,300 | 62,109 | | Hong Kong/Taiwan | 35,827 | 40,558 | | EMEA | 35,403 | 41,818 | | Total Nu Skin | 490,877 | 594,351 | | Manufacturing | 27,147 | 29,272 | | Grow Tech | 4 | — | | Total | 518,028 | 623,623 | Contribution by Segment (thousands of dollars) | Segment | March 2020 | March 2019 | | :--- | :--- | :--- | | Mainland China | 37,387 | 59,167 | | South Korea | 24,099 | 25,668 | | Americas/Pacific | 10,585 | 12,019 | | Southeast Asia | 16,718 | 17,992 | | Japan | 14,592 | 14,106 | | Hong Kong/Taiwan | 6,938 | 7,474 | | EMEA | 631 | 1,351 | | Total Nu Skin Contribution | 110,950 | 137,777 | | Manufacturing | 2,849 | 3,646 | | Grow Tech | (6,850) | (3,629) | | Total Segment Contribution | 106,949 | 137,794 | Capital Expenditures by Segment (thousands of dollars) | Segment | 2020 | 2019 | | :--- | :--- | :--- | | Mainland China | 2,861 | 1,681 | | Manufacturing | 10,505 | 1,602 | | Grow Tech | 178 | 2,985 | | Corporate and Other | 4,159 | 6,411 | | Total | 19,387 | 13,765 | Note 10. Commitments and Contingencies Discusses the company's exposure to government regulations, lawsuits, investigations, and tax audits, and management's assessment of potential financial impact - The company is subject to government regulations (product formulation, labeling, advertising, direct selling systems) and foreign tax and customs authorities[55] - The company is a defendant in various lawsuits, investigations, and other proceedings, but management believes the ultimate liability will not materially adversely affect its financial position[55] - The company is regularly audited by federal, state, and foreign tax authorities, which may result in additional tax liabilities[56] Note 11. Restructuring Outlines the strategic restructuring plan initiated in Q4 2018 to align resources and capabilities, noting no restructuring activities in Q1 2020 - In the fourth quarter of 2018, the company initiated a strategic plan to align resources and capabilities to support its vision of becoming the world's leading business platform[57] - The restructuring plan resulted in a $48.6 million non-cash information technology asset impairment charge and $22.1 million in cash charges, including $20.1 million for employee severance[57] - No restructuring activities occurred during the three months ended March 31, 2020[58] Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses Q1 2020 financial condition and operating results, highlighting revenue and EPS declines from regulatory review and COVID-19, despite improved operating cash flow Overview Provides an overview of the company's performance for the three months ended March 31, 2020, highlighting revenue and EPS declines due to regulatory review and COVID-19 - For the three months ended March 31, 2020, revenue decreased by 17% year-over-year to $518 million, with foreign currency fluctuations having a 2% negative impact[61] - The number of sales leaders decreased by 22%, and the number of customers decreased by 5%[61] - The decline in revenue and sales leaders was primarily impacted by the 2019 regulatory review in Mainland China and the 2020 COVID-19 pandemic[62] - Earnings per share (EPS) decreased by 53% year-over-year to $0.36, mainly due to lower revenue, particularly from the highly profitable Mainland China market[63] Segment Results Analyzes the performance of the company's operating segments, detailing revenue changes, customer and sales leader numbers, and specific regional impacts Revenue Change by Segment (for the three months ended March 31) | Nu Skin Segment | March 2020 Revenue (thousands of dollars) | March 2019 Revenue (thousands of dollars) | Change Rate | Constant Exchange Rate Change Rate | | :--- | :--- | :--- | :--- | :--- | | Mainland China | 137,696 | 208,488 | (34)% | (31)% | | South Korea | 75,719 | 83,853 | (10)% | (4)% | | Americas/Pacific | 74,573 | 86,456 | (14)% | (9)% | | Southeast Asia | 69,586 | 72,495 | (4)% | (3)% | | Japan | 61,300 | 62,109 | (1)% | (2)% | | Hong Kong/Taiwan | 35,827 | 40,558 | (12)% | (13)% | | EMEA | 35,403 | 41,818 | (15)% | (13)% | | Total Nu Skin | 490,877 | 594,351 | (17)% | (15)% | | Manufacturing | 27,147 | 29,272 | (7)% | (7)% | | Grow Tech | 4 | — | — | — | | Total | 518,028 | 623,623 | (17)% | (15)% | Customer and Sales Leader Counts by Segment (as of March 31) | Segment | 2020 Customers | 2020 Sales Leaders | 2019 Customers | 2019 Sales Leaders | Customer Change Rate | Sales Leader Change Rate | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Mainland China | 271,536 | 16,159 | 272,053 | 26,986 | — | (40)% | | South Korea | 174,004 | 6,608 | 181,150 | 6,671 | (4)% | (1)% | | Americas/Pacific | 214,139 | 6,930 | 242,925 | 7,862 | (12)% | (12)% | | Southeast Asia | 145,116 | 6,634 | 138,112 | 7,071 | 5% | (6)% | | Japan | 119,784 | 5,635 | 126,526 | 5,840 | (5)% | (4)% | | Hong Kong/Taiwan | 66,024 | 3,348 | 70,354 | 3,959 | (6)% | (15)% | | EMEA | 140,344 | 4,237 | 162,086 | 4,859 | (13)% | (13)% | | Total | 1,130,947 | 49,551 | 1,193,206 | 63,248 | (5)% | (22)% | - Mainland China's revenue and sales leader decline was primarily due to the 2019 regulatory review and COVID-19 restrictions, with the company responding through technological solutions[71] - The Japan segment achieved growth in segment contribution despite a decline in revenue, driven by successful general and administrative expense savings[77] - Manufacturing segment revenue decreased by 7%, mainly due to supply chain disruptions caused by the pandemic; the Grow Tech segment continues to invest in controlled environment agriculture technology and is expected to incur ongoing losses in 2020[80][82] Consolidated Results Discusses the company's consolidated financial performance, including gross margin, selling expenses, general and administrative expenses, other income (expense), and net income - In Q1 2020, the gross margin was 75.7%, lower than 76.5% in the prior year, primarily due to reduced absorption of fixed overheads from lower revenue, negative foreign exchange impacts, and a higher proportion of lower-margin Manufacturing segment revenue[84] - Selling expenses as a percentage of revenue remained largely consistent with the prior year at 39.8%[85] - General and administrative expenses decreased by $9 million to $149.6 million, mainly due to reduced employee performance incentive compensation and lower travel and sales activities due to the COVID-19 pandemic; however, as a percentage of revenue, they increased from 25.4% to 28.9% due to lower revenue[86] - Net other income (expense) was a negative $6.2 million, compared to a negative $2.8 million in the prior year, primarily due to increased foreign exchange losses and asset disposal losses, partially offset by reduced interest expense[87] - Net income was $19.7 million, compared to $43 million in the prior year[90] Liquidity and Capital Resources Reviews the company's liquidity and capital resources, including cash flow from operations, working capital, capital expenditures, and share repurchases - In the first three months of 2020, operating activities generated $69 million in cash flow, compared to a negative $8.2 million in the prior year, primarily due to improved inventory management and other cost-saving measures[91] Liquidity Key Data (thousands of dollars) | Indicator | March 31, 2020 | December 31, 2019 | | :--- | :--- | :--- | | Cash and Cash Equivalents (including current investments) | 361,700 | 344,000 | | Working Capital | 309,500 | 383,400 | | Capital Expenditures (first three months) | 19,400 | - | | Stock Repurchases (first three months) | 60,900 | - | | Credit Agreement Term Loan Balance | 360,000 | 365,000 | | Credit Agreement Revolving Credit Facility Balance | 65,000 | 0 | | Remaining Available for Stock Repurchase Program | 409,300 | - | | Cash and Cash Equivalents Held by Foreign Operations | 290,400 | 277,900 | - Total capital expenditures for 2020 are projected to be approximately $65 million to $70 million, including $15 million to $18 million for a new manufacturing facility in Mainland China[94] - The company's Board of Directors declared a quarterly cash dividend of $0.375 per share in February 2020, paid in March, and expects to continue paying quarterly dividends[97] - The company believes its existing cash balances, future operating cash flows, and available credit facilities are sufficient to meet short-term and long-term cash needs[100] Contingent Liabilities Refers to Note 10 of the consolidated financial statements for information on contingent liabilities - Contingent liabilities information is referenced in Note 10 to the consolidated financial statements[101] Critical Accounting Policies States that no significant changes occurred in critical accounting policies during the first quarter of 2020 - No significant changes occurred in the company's critical accounting policies during the first quarter of 2020[102] Seasonality and Cyclicality Explains how the company's business is affected by seasonal factors like cultural events and holidays, and the impact of product launches or promotions - The company's business is affected by seasonal factors such as major cultural events (e.g., Asian New Year in Q1) and holiday patterns (e.g., Q3)[103] - Initial product launches or promotional activities may lead to unusual increases in revenue, sales leaders, and/or customer counts in a given quarter, affecting year-over-year and sequential comparisons[104] Currency Risk and Exchange Rate Information Discusses the company's exposure to currency risk, the impact of exchange rate fluctuations on reported revenue and earnings, and strategies for mitigation - A significant portion of the company's revenue and expenses are recognized outside the U.S., with a weaker U.S. dollar positively impacting reported revenue and earnings, and a stronger U.S. dollar having a negative impact[105] - The Argentine subsidiary adopted highly inflationary accounting as of July 1, 2018, changing its functional currency to the U.S. dollar[106] - The company may use foreign currency forward contracts and intercompany foreign currency loans to mitigate foreign exchange fluctuation risks, but held no non-designated hedging derivative contracts as of March 31, 2020[107] Non-GAAP Financial Measures Defines fixed exchange rate revenue change as a non-GAAP financial measure used to eliminate foreign currency fluctuation impacts for performance comparison - Fixed exchange rate revenue change is a non-GAAP financial measure used to eliminate the impact of foreign currency fluctuations for comparable performance analysis[109] Available Information Informs about the availability of company reports on its investor relations website - The company provides annual reports, quarterly reports, 8-K reports, and amendments free of charge on its investor relations website ir.nuskin.com[110] Item 3. Quantitative and Qualitative Disclosures about Market Risk Quantitative and qualitative disclosures about market risk are incorporated by reference into the "Currency Risk and Exchange Rate Information" section of Item 2 - Market risk disclosure information is incorporated by reference into the "Currency Risk and Exchange Rate Information" section of "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations"[112] Item 4. Controls and Procedures Management assessed disclosure controls and procedures as effective on March 31, 2020, with no significant changes in internal financial reporting controls during the quarter - As of March 31, 2020, the effectiveness of the company's disclosure controls and procedures was evaluated by the Chief Executive Officer and Chief Financial Officer and deemed effective[113] - No significant changes in internal control over financial reporting occurred during the fiscal quarter ended March 31, 2020[114] Part II. Other Information This section covers legal proceedings, risk factors, equity security sales, senior securities defaults, mine safety disclosures, other information, and exhibits Item 1. Legal Proceedings The company is in litigation with Don Roberts regarding alleged partnership interest and IP rights in its indoor farming business, actively defending against these claims - The company is involved in litigation with Don Roberts, who claims partnership interest and intellectual property rights in the company's indoor farming business, seeking over $250 million in damages[117] - The company has filed a lawsuit seeking a declaratory judgment that Mr. Roberts is not the inventor of any intellectual property nor a partner in the business[117] - The company believes Mr. Roberts' claims lack merit and intends to vigorously defend itself[117] Item 1A. Risk Factors The company faces significant risks from pandemics (like COVID-19) and other crises, potentially causing sales declines, supply chain disruptions, financial deterioration, and covenant non-compliance - Epidemics (including COVID-19) and other crises have had and may continue to have a negative impact on the company's business, particularly due to the face-to-face nature of direct selling[119][120] - The COVID-19 pandemic has led to economic contraction, global supply chain disruptions, reduced ability for sales teams to hold meetings, event cancellations, and temporary store closures[120] - Any significant decline in future operating results could adversely affect the company's financial condition and liquidity, potentially impacting its ability to comply with credit agreement financial covenants[121] - Regulatory bodies (e.g., FTC) closely scrutinize product and earnings claims made by direct selling companies and their independent distributors, with improper claims potentially leading to investigations and reputational damage[122] Item 2. Unregistered Sales of Equity Securities and Use of Proceeds In Q1 2020, the company repurchased 2.6 million shares of Class A common stock for $60.9 million under its stock repurchase program, with $409.3 million still available Equity Security Repurchases (Q1 2020) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased Under Publicly Announced Plans | Approximate Value of Shares That May Yet Be Purchased Under the Plans (millions of dollars) | | :--- | :--- | :--- | :--- | :--- | | January 1-31 | — | — | — | 470.2 | | February 1-29 | 502,273 | 28.40 | 502,273 | 455.9 | | March 1-31 | 2,135,878 | 21.83 | 2,135,878 | 409.3 | | Total | 2,638,151 | — | 2,638,151 | - | - The company approved a stock repurchase program in August 2018, authorizing the repurchase of up to $500 million of Class A common stock[123] Item 3. Defaults Upon Senior Securities The company reported no defaults upon senior securities during this reporting period - No defaults upon senior securities[124] Item 4. Mine Safety Disclosures This disclosure item is not applicable to the company's business - Not applicable[125] Item 5. Other Information On April 24, 2020, the company drew $50 million from its revolving credit facility, increasing the total outstanding balance to $115 million - On April 24, 2020, the company drew $50 million from its revolving credit facility, bringing the total outstanding balance to $115 million[126] Item 6. Exhibits This section lists the exhibits filed with the quarterly report, including stock certificates, CEO and CFO certifications, and XBRL-related documents - Exhibits include a specimen of the Class A common stock certificate, certifications by the Chief Executive Officer and Chief Financial Officer under the Securities Exchange Act and Sarbanes-Oxley Act[127] - Also included are Inline XBRL Instance Document, Taxonomy Extension Schema Document, Calculation Linkbase Document, Definition Linkbase Document, Label Linkbase Document, and Presentation Linkbase Document[127] Signature This report was signed by Chief Financial Officer Mark H. Lawrence on behalf of Nu Skin Enterprises, Inc. on May 6, 2020 - This report was signed by Chief Financial Officer Mark H. Lawrence on behalf of Nu Skin Enterprises, Inc. on May 6, 2020[129]