USNA · USANA Health Sciences, Inc.

Summary

Revenue increased modestly to $250.2M, but gross profit, operating income, and net income all declined year-over-year, reflecting margin compression that outweighed top-line stability.

Key takeaways

• Gross profit was $190.8M (down 3.2% YoY), and gross margin was 76.2%, with profitability affected by sales mix between recurring and retail customers.
• Operating income was $13.9M (down 11.5% YoY), and operating margin was 5.5%, influenced by both cost realignment benefits and production inefficiencies in Core Nutritional.
• Net income was $7.5M (down 20.1% YoY) and diluted EPS was $0.41 (down 16.3% YoY), driven by lower operating income and tax expense.
• Free cash flow was $7.1M, derived from $9.8M of operating cash flow less $2.6M of capital expenditures.
• Management affirms that current cash balances, future cash from operations, and availability under the line of credit are sufficient for operating and capital needs in the ordinary course of business.