Nature's Sunshine(US:NATR)2023-03-16 17:30Financial Performance - Consolidated net sales for the year ended December 31, 2022, were $421.9 million, a decrease of approximately 5.0% compared to $444.1 million in 2021[173] - Net sales in Asia increased by 5.3% to $186.3 million for the year ended December 31, 2022, with a local currency increase of 16.1%[175] - In Europe, net sales decreased by 13.7% to $79.0 million, primarily due to the conflict between Russia and Ukraine and inflationary pressures[181] - North America net sales were $133.2 million, a decrease of 11.0%, with a reduction in average order size attributed to customer sensitivity due to inflation[182][183] - Latin America and Other markets saw net sales decrease by 9.7% to $23.4 million, driven by a reduction in average order size due to inflation[184] - Fluctuations in foreign exchange rates had a $23.1 million unfavorable impact on consolidated net sales for the year ended December 31, 2022[173] Cost and Expenses - Cost of sales as a percentage of net sales increased to 29.0% in 2022 from 26.0% in 2021, influenced by inflation and increased raw material costs[186] - Volume incentives as a percentage of net sales decreased to 30.9% in 2022 from 31.5% in 2021, reflecting changes in market mix and cost savings from a new compensation plan[187] - Selling, general and administrative expenses decreased by $1.0 million to $153.1 million, representing 36.3% of net sales in 2022[189] Taxation - The effective tax rate increased to 96.4% in 2022 from 5.1% in 2021, primarily due to a valuation allowance against deferred tax assets[191] - The effective tax rate was impacted by adjustments related to foreign operations, increasing the rate by 4.3 percentage points in 2022[29] Cash Flow and Working Capital - As of December 31, 2022, working capital was $83.9 million, a decrease from $88.0 million as of December 31, 2021[195] - For the year ended December 31, 2022, operating activities generated cash of $0.7 million, a significant decrease from $34.6 million in 2021[197] - Cash used in investing activities for the year ended December 31, 2022, was $7.6 million, compared to $6.7 million in 2021[198] - Financing activities used $16.2 million in cash for the year ended December 31, 2022, down from $31.7 million in 2021, primarily due to a special dividend declared in 2021 that did not recur[199] - As of December 31, 2022, the company had $60.0 million in cash and cash equivalents, with $51.2 million held in foreign markets subject to withholding taxes[195] Shareholder Actions - The company repurchased 909,000 shares of common stock for $13.6 million under the share repurchase program, with a remaining balance of $24.0 million available for future repurchases[200] Obligations and Liabilities - The company has a total of $22.6 million in contractual obligations as of December 31, 2022, with $6.7 million due within one year[207] - The company maintains product liability coverage and has accrued $0.3 million for probable liabilities related to product liability claims[208] - The company entered into long-term agreements with third parties, resulting in aggregate payments of $12,000 in 2022, down from $26,000 in 2021[210]