Nature's Sunshine(US:NATR)2021-11-04 21:10Financial Performance - Consolidated net sales for the three months ended September 30, 2021, were $114.7 million, representing a 14.5% increase compared to $100.3 million for the same period in 2020[112] - For the nine months ended September 30, 2021, consolidated net sales were $326.1 million, an increase of 15.1% from $283.5 million in the same period in 2020[112] - The company experienced notable product sales growth across all operating segments for the three and nine months ended September 30, 2021[112] - The increase in net sales was primarily attributed to product promotions and an increase in demand for nutritional supplements[118] Regional Sales Performance - Net sales in Asia for the three months ended September 30, 2021, were $48.4 million, a 27.1% increase from $38.1 million in 2020[113] - In Europe, net sales for the three months ended September 30, 2021, were $21.8 million, reflecting a 21.1% increase from $18.0 million in 2020[118] - North America net sales for the three months ended September 30, 2021, were $37.7 million, a slight increase of 0.5% from $37.6 million in 2020[119] - Latin America and Other markets reported net sales of $6.8 million for the three months ended September 30, 2021, a 2.9% increase from $6.6 million in 2020[121] Cost and Expenses - Cost of sales as a percentage of net sales decreased to 25.6% for the three months ended September 30, 2021, compared to 27.1% for the same period in 2020[123] - Volume incentives as a percentage of net sales were 31.2% for the three months ended September 30, 2021, down from 34.2% in the same period in 2020[124] - Selling, general and administrative expenses increased by $6.2 million to $39.5 million for the three months ended September 30, 2021, and by $15.8 million to $108.7 million for the nine months ended September 30, 2021, compared to the same periods in 2020[126] - Selling, general and administrative expenses represented 34.4% and 33.3% of net sales for the three and nine months ended September 30, 2021, compared to 33.2% and 32.8% for the same periods in 2020[126] Other Income and Taxes - Other income (loss), net, for the three and nine months ended September 30, 2021, were losses of $0.9 million and $2.3 million, respectively, compared to gains of $0.7 million and losses of $0.2 million during the same periods in 2020[127] - The provision for income taxes as a percentage of income before income taxes was 40.2% for the three months ended September 30, 2021, compared to (16.7)% for the same period in 2020[128] - The effective tax rate difference for the three months ended September 30, 2021, was primarily due to an increase in tax liability associated with transfer pricing adjustments and non-deductible executive compensation[129] Cash Flow and Financing - Operating activities provided cash of $20.3 million for the nine months ended September 30, 2021, compared to $26.8 million in the same period in 2020[141] - Investing activities used $4.6 million for the nine months ended September 30, 2021, compared to $3.5 million for the same period in 2020[142] - Financing activities used $29.5 million for the nine months ended September 30, 2021, compared to providing $5.0 million in cash for the same period in 2020[143] - Cash held as of September 30, 2021, was $75.5 million, with $13.7 million in the U.S. and $61.8 million in foreign markets[139] - The company repurchased 350,000 shares of common stock for $6.0 million during the nine months ended September 30, 2021[144]