Nu Skin Enterprises Issues 3Q04 Results
Revenue for 3Q04 was $283.3 million, a 13 percent increase over revenue of $250.2 million in the third quarter of 2003 (3Q03). The growth was driven by a 25 percent increase in active distributors and a 14 percent increase in executive distributors. Revenue and earnings were also positively impacted by significant year-over-year growth in Greater China, continued momentum in U. S. business, and foreign currency fluctuations.
Net income totaled $20.9 million, and earnings per share were $0.29 for 3Q04, compared to net income of $15.1 million and earnings per share of $0.19 for 3Q03.
The company’s gross margin was 83.2 percent for 3Q04, improving approximately 70 basis points compared to 3Q03. The year-over-year improvement was due to the discontinuation of low-margin Big Planet products and services, strong gross margins in mainland China, as well as favorable foreign currency exchange rates.
“As reported on Oct. 4, we posted positive year-over-year revenue growth in nearly all of our markets around the world,” said Truman Hunt, chief executive officer.
The company’s cash position at the end of the quarter was $123.6 million, with $30.9 million of cash flow generated from operations and $5.6 million paid in dividends for the quarter.
