Nature's Sunshine(US:NATR)2022-11-03 21:11Sales Performance - Consolidated net sales for the three months ended September 30, 2022, were $104.5 million, a decrease of 8.9% compared to $114.7 million for the same period in 2021[111]. - For the nine months ended September 30, 2022, consolidated net sales were $319.2 million, down 2.1% from $326.1 million in the same period in 2021[111]. - Net sales in Asia for the three months ended September 30, 2022, were $47.9 million, a decrease of 1.1%, while for the nine months, sales increased by 10.7% to $141.4 million[112]. - In Europe, net sales for the three months ended September 30, 2022, were $19.3 million, down 11.4%, and for the nine months, sales were $58.2 million, a decrease of 11.1%[118]. - North America reported net sales of $31.5 million for the three months ended September 30, 2022, a decrease of 16.5%, and $101.6 million for the nine months, down 10.0%[119]. - Latin America and Other markets saw net sales of $5.8 million for the three months ended September 30, 2022, a decrease of 14.5%, and $18.0 million for the nine months, down 10.3%[121]. - In the South Korea market, net sales decreased by $1.0 million (6.4%) for the three months ended September 30, 2022, while in Taiwan, net sales increased by $6.1 million (82.9%) for the same period[113][114]. - The company expects continued fluctuations in net sales due to foreign currency exchange rates impacting international operations[109]. Cost and Expenses - Cost of sales as a percentage of net sales increased to 28.4% for the three months ended September 30, 2022, compared to 25.6% for the same period in 2021[123]. - Volume incentives expense as a percent of net sales was 31.6% for the three months ended September 30, 2022, compared to 31.2% for the same period in 2021[124]. - Selling, general and administrative expenses decreased by $2.7 million to $36.8 million for the three months ended September 30, 2022, representing 35.2% of net sales[126]. - Other loss, net, for the three months ended September 30, 2022, was $2.3 million, compared to $0.9 million for the same period in 2021, primarily due to foreign exchange losses[127]. - The provision for income taxes as a percentage of income before income taxes was 92.7% for the three months ended September 30, 2022, compared to 40.2% for the same period in 2021[128]. Cash Flow and Working Capital - Working capital as of September 30, 2022, was $78.9 million, down from $88.0 million as of December 31, 2021[139]. - Operating activities used cash of $2.9 million for the nine months ended September 30, 2022, compared to providing cash of $20.3 million in the same period in 2021[141]. - Investing activities used $4.7 million for the nine months ended September 30, 2022, compared to $4.6 million for the same period in 2021[142]. - Financing activities used $15.3 million for the nine months ended September 30, 2022, compared to $29.5 million in the same period in 2021[143]. Share Repurchase - The company repurchased 834,000 shares of common stock for $12.9 million during the nine months ended September 30, 2022[143]. - As of September 30, 2022, the remaining balance available for share repurchases under the program was $24.6 million[143]. Inventory Valuation - The company incurred incremental valuation charges of $5.0 million related to inventory for the nine months ended September 30, 2022, with $1.7 million attributed to the conflict between Russia and Ukraine[123].