February 11, 2015 Leave a comment
Strong salesforce incentives proved to be a significant contributor to USANA’s (USNA—NYSE) positive results for fourth quarter 2014, not only in customer sales but also associate growth. USANA’s revenue was up 22.3 percent at $227.9 million for the quarter, while earnings were $21.3 million, or $1.65 per share, an increase of 17.0 percent, though lower than the Capital IQ Consensus Estimate of $1.92.
Sales incentives introduced in the quarter drove the number of active Associates up 31.7 percent, particularly in the company’s Asia Pacific region, which contributed to a sales surge of 34.1 percent to $163.3 million in the region, compared with $121.8 million for the fourth quarter of the prior year. Net sales also increased by 25.4 percent on a sequential quarter basis.
Full-year results included a profit of $76.6 million, or $5.60 per share, with revenue of $790.5 million, compared with $718.2 million the previous year.
Net earnings for 2014 decreased by 3.0 percent to $76.6 million, compared with $79.0 million in 2013, due primarily to the pricing and compensation plan changes implemented during the third quarter of 2013. Earnings per share for the year increased by 0.7 percent to $5.60, compared with $5.56 in the prior year.
“2014 was another exceptional year for USANA,” said Kevin Guest, USANA’s President. “Our vision as a Company continues to center on improving the overall health and nutrition of individuals and families around the world through our world-class product offering. To further this vision in 2015, we will continue to execute our overall strategy, which focuses on promoting customer loyalty, enjoyment and success with USANA.”
USANA’s full-year outlook for 2015 includes revenue in the range of $850 million to $870 million and earnings between $6.40 to $6.70 per share.