 LEHI, Utah, Aug. 06, 2020 GLOBE NEWSWIRE -- Natures Sunshine Products, Inc. Natures Sunshine NASDAQ: NATR, a leading natural health and wellness company, reported financial results for the second quarter ended June 30, 2020.Second Quarter 2020 Financial Summary vs. Same YearAgo Quarter Net sales were 87.3 million compared to 90.7 million. GAAP net income increased significantly to 6.1 million, or 0.29 per diluted share, compared to 2.6 million, or 0.14 per diluted share. Adjusted net income per diluted share was 0.28, compared to an adjusted net income per diluted share of 0.15. Adjusted EBITDA increased 21 to 9.7 million compared to 8.0 million.Management CommentaryThroughout the second quarter, we continued to navigate the dynamic effects that the COVID-19 pandemic has had on our global markets, said Terrence Moorehead, CEO of Natures Sunshine. Despite mandated lockdowns across many of our geographies during the quarter, our NSP business returned to revenue growth in two key marketsthe U.S. and China. In addition, our commitment to streamlining processes and prudently managing expenses through our Right Stuff strategy has helped us deliver significant consolidated net income and adjusted EBITDA growth. I am proud of our global teams continued hard work and adaptability during this unprecedented time.We are continuously adapting to changes in consumer behavior across our business. Demand for our products surged following the onset of the pandemic in mid-March, especially for our immune product line. While the increased demand slowed temporarily in April through mid-May, buying patterns soon stabilized and even accelerated for the remainder of the quarter, potentially signaling a long-term trend towards continued expansion and better engagement with the health-conscious consumer. Looking ahead, we will continue building upon the strong operational foundation we are putting in place with our five global growth strategies, which we call The Fab Five. These constitute our key areas of operational focus as we prepare for the launch of our revamped business model in the third quarter. Our revitalized go-to-market plan will enhance our customer and distributor experience by improving our brand presence, including the launch of a revamped consumer-facing e-commerce website, expanding our digital and manufacturing capabilities, and streamlining our organizational structure. There remains much work to be done, but we are pleased with the progress we have made so far and look forward to continuing strong results from our global growth initiatives.Second Quarter 2020 Financial Results Net Sales by Operating Segment Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Percent Change Impact of Currency Exchange Percent Change Excluding Impact of Currency Asia32,757 35,162 6.8 872 4.4 Europe15,465 15,075 2.6 232 4.1 North America34,471 34,620 0.4 92 0.2 Latin America and Other4,593 5,867 21.7 311 16.4 87,286 90,724 3.8 1,507 2.1 Net sales in the second quarter were 87.3 million compared to 90.7 million in the same yearago quarter. The decrease was attributable primarily to the effects of COVID-19-related market closures in South Korea and Latin America. Net sales were also negatively impacted by 1.5 million of unfavorable foreign currency exchange rate fluctuations. This was partially offset by growth in China and Europe.Gross margin in the second quarter was 73.6 compared to 73.7 the yearago quarter.Volume incentives as a percentage of net sales were 33.4 compared to 34.5 in the year-ago quarter.Selling, general and administrative expenses in the second quarter decreased 8 to 28.5 million compared to 31.0 million in the yearago quarter. The decrease reflects continued savings from restructuring activities in the U.S. and Latin America, decreases in travel and event-related costs as a result of COVID-19, and an unexpected VAT refund in 2020. As a percentage of net sales, SGA expenses decreased 150 basis points to 32.7 from 34.2 in the second quarter of 2019. Excluding the impact of restructuring and the VAT refund, SGA expenses as a percentage of net sales were 32.8 in the second quarter of 2020 compared to 33.8 in the year-ago quarter.Operating income in the second quarter of 2020 increased 45 to 6.6 million, or 7.6 of net sales, compared to 4.5 million, or 5.0 of net sales, in the second quarter of 2019. Excluding the impact of the unusual items noted above, operating income was 6.5 million, or 7.4 of net sales, compared to 4.9 million, or 5.4 of net sales, in the year-ago quarter.Other income, net, in the second quarter of 2020 was 1.5 million compared to 0.3 million in the second quarter of 2019. Other income, net, primarily consisted of foreign exchange gains as a result of net changes in foreign currencies primarily in Asia, Europe and Latin America. The provision for income taxes was 2.0 million in the second quarter of 2020 compared to 2.2 million for the year-ago quarter.GAAP net income attributable to common shareholders increased significantly to 5.8 million, or 0.29 per diluted common share, compared to 2.7 million, or 0.14 per diluted common share, in the second quarter of 2019. Net income attributable to NSP China was 1.9 million, or 0.10 per diluted common share, for the second quarter of 2020, compared to a loss of 0.3 million, or 0.02 per diluted common share, for the second quarter of 2019.Adjusted net income attributable to common shareholders was 5.6 million, or 0.28 per diluted common share, compared to 2.9 million, or 0.15 per diluted common share, in the prior year period. A reconciliation of adjusted net income to GAAP net income is provided in the attached financial tables.Adjusted EBITDA increased 21 to 9.7 million in the second quarter compared to 8.0 million in the second quarter of 2019. This increase was driven primarily by the aforementioned net reduction in SGA. Adjusted EBITDA, which is a non-GAAP financial measure, is defined here as net income from continuing operations before taxes, depreciation, amortization and other incomeloss adjusted to exclude share-based compensation expense and certain noted adjustments. A reconciliation of Net Income to Adjusted EBITDA is provided in the financial tables below.Balance Sheet and Cash FlowNet cash provided by operating activities was 14.4 million for the six months ended June 30, 2020 compared to 1.1 million used by operating activities in the prior year period. Capital expenditures during the six months ended June 30, 2020 totaled 2.2 million compared to 2.8 million in the comparable period of 2019. As of June 30, 2020, the Company had cash and cash equivalents of 70.3 million and 5.4 million of debt.Active Distributors and Customers by Segment 1 2020 2019 Distributors Customers Managers Distributors Customers Managers Asia 34,500 2,900 38,300 3,000 Europe 88,800 4,900 85,200 4,000 North America 76,700 4,700 78,400 4,700 Latin America and Other 24,100 1,200 30,100 1,200 224,100 13,700 232,000 12,900 1 Active Distributors and Customers include Natures Sunshine Products independent Distributors and Customers who have purchased our products directly for resale andor personal consumption during the previous three months ended as of the date indicated. Total Managers, Distributors and Customers, which includes those who have made a purchase in the last twelve months, was 527,900 as of June 30, 2020.In China, we sell our products through multiple channels, including cross-border e-commerce, wholesale, direct sellers and independent service providers who are compensated for marketing, sales support, and other services.Conference CallThe Company will hold a conference call today at 5:00 p.m. Eastern time to discuss its second quarter 2020 results.Date: Thursday, August 6, 2020 Time: 5:00 p.m. Eastern time 3:00 p.m. Mountain time Toll-free dial-in number: 1-866-548-4713 International dial-in number: 1-323-794-2093 Conference ID: 7890535Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Investor Relations at 1-949-574-3860.The conference call will be broadcast live and available for replay here and via the Events section of the Natures Sunshine website here. A replay of the conference call will be available after 8:00 p.m. Eastern time on the same day through August 20, 2020.Toll-free replay number: 1-844-512-2921 International replay number: 1-412-317-6671 Replay ID: 7890535About Natures Sunshine ProductsNatures Sunshine Products NASDAQ: NATR, a leading natural health and wellness company, markets and distributes nutritional and personal care products in more than 40 countries. Natures Sunshine manufactures most of its products through its own state-of-the-art facilities to ensure its products continue to set the standard for the highest quality, safety and efficacy on the market today. Additional information about the company can be obtained at its website, Note Regarding Forward-Looking StatementsThis press release contains forward-looking statements regarding the Companys future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to the Companys objectives, plans, strategies and financial results. 