USANA Health Sciences Reports Second Quarter 2024 Results
Key Financial & Operating Results
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Second quarter net sales were
$213 million versus$238 million during Q2 2023. -
Second quarter diluted EPS was
$0.54 as compared with$0.89 during Q2 2023. -
Company updates fiscal year 2024 net sales and diluted EPS outlook to
$850 million to$880 million and$2.40 to$2.55 (previously$850 million to$920 million and$2.40 to$3.00 ).
Q2 2024 Financial Performance
Consolidated Results |
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Diluted EPS |
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Active Customers |
468,000 |
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“Second quarter operating results were below our expectations,” said
“Ongoing macroeconomic pressures in several of our key markets continue to impact consumer spending. This in turn creates challenges in our ability to attract and engage new customers and generate sales momentum. To counter these challenges, we have made several strategic changes in our business over the past few quarters, including (i) restructuring our commercial team, (ii) heightening our focus on product innovation, (iii) increasing our efforts to engage our sales leaders with an Associate-first approach, (iv) expanding into
“Next month, we will be hosting our
Q2 2024 Regional Results:
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Active Customers |
369,000 |
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Asia Pacific Sub-Regions |
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Active Customers |
250,000 |
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Active Customers |
42,000 |
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Active Customers |
77,000 |
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Active Customers |
99,000 |
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Balance Sheet and Share Repurchase Activity
The Company generated
Fiscal Year 2024 Outlook
The Company is updating its net sales and earnings per share outlook for fiscal year 2024, as follows:
Fiscal Year 2024 Outlook |
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Consolidated |
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Diluted EPS |
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“While we anticipated lower sequential operating results following a successful promotional period in the first quarter, lower than anticipated active customer counts negatively impacted our second quarter results,” said
Management Commentary Document and Conference Call
For further information on the USANA’s operating results, please see the Management Commentary document, which has been posted on the Company’s website (http://ir.usana.com) under the Investor Relations section. USANA’s management team will hold a conference call and webcast to discuss today’s announcement with investors on
Non-GAAP Financial Measures
The Company prepares its financial statements using
About USANA
USANA develops and manufactures high-quality nutritional supplements, functional foods and personal care products that are sold directly to Associates and Preferred Customers throughout
Safe Harbor
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. Our actual results could differ materially from those projected in these forward-looking statements, which involve a number of risks and uncertainties, including: global economic conditions generally, including continued inflationary pressure around the world and negative impact on our operating costs, consumer demand and consumer behavior in general; reliance upon our network of independent Associates; risk associated with governmental regulation of our products, manufacturing and direct selling business model in
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) |
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Quarter Ended |
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Net sales |
$ |
212,869 |
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$ |
238,202 |
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Cost of sales |
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40,333 |
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43,326 |
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Gross profit |
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172,536 |
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194,876 |
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Operating expenses: |
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Associate incentives |
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90,371 |
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102,380 |
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Selling, general and administrative |
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64,325 |
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68,096 |
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Total operating expenses |
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154,696 |
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170,476 |
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Earnings from operations |
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17,840 |
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24,400 |
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Other income (expense): |
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Interest income |
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2,763 |
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2,224 |
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Interest expense |
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(51 |
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(43 |
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Other, net |
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(349 |
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229 |
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Other income (expense), net |
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2,363 |
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2,410 |
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Earnings before income taxes |
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20,203 |
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26,810 |
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Income taxes |
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9,771 |
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9,518 |
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Net earnings |
$ |
10,432 |
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$ |
17,292 |
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Earnings per common share |
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Basic |
$ |
0.55 |
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$ |
0.89 |
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Diluted |
$ |
0.54 |
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$ |
0.89 |
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Weighted average common shares outstanding |
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Basic |
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19,073 |
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19,321 |
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Diluted |
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19,159 |
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19,427 |
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CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) |
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As of
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As of
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ASSETS |
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Current assets |
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Cash and cash equivalents |
$ |
332,423 |
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$ |
330,420 |
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Inventories |
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61,832 |
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61,454 |
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Prepaid expenses and other current assets |
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24,826 |
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25,872 |
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Total current assets |
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419,081 |
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417,746 |
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Property and equipment, net |
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97,686 |
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99,814 |
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16,837 |
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17,102 |
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Intangible assets, net |
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28,637 |
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29,919 |
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Deferred tax assets |
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18,190 |
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13,284 |
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Other assets* |
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50,988 |
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54,892 |
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Total assets |
$ |
631,419 |
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$ |
632,757 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities |
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Accounts payable |
$ |
6,648 |
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$ |
10,070 |
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Line of credit - short term |
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— |
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786 |
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Other current liabilities |
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97,248 |
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107,989 |
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Total current liabilities |
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103,896 |
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118,845 |
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Deferred tax liabilities |
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4,653 |
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4,552 |
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Other long-term liabilities |
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10,662 |
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12,158 |
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Stockholders' equity |
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512,208 |
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497,202 |
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Total liabilities and stockholders' equity |
$ |
631,419 |
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$ |
632,757 |
*Other assets include noncurrent inventories of
SALES BY REGION (in thousands) (unaudited) |
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Quarter Ended |
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Change from
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Percent
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Currency
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% change
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$ |
115,513 |
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54.3 |
% |
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$ |
128,749 |
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54.1 |
% |
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$ |
(13,236 |
) |
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(10.3 |
%) |
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$ |
(3,085 |
) |
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(7.9 |
%) |
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35,402 |
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16.6 |
% |
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$ |
39,337 |
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16.5 |
% |
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(3,935 |
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(10.0 |
%) |
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(1,221 |
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(6.9 |
%) |
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19,710 |
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9.3 |
% |
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$ |
25,529 |
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10.7 |
% |
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(5,819 |
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(22.8 |
%) |
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(870 |
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(19.4 |
%) |
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Asia Pacific Total |
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170,625 |
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80.2 |
% |
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193,615 |
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81.3 |
% |
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(22,990 |
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(11.9 |
%) |
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(5,176 |
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(9.2 |
%) |
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42,244 |
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19.8 |
% |
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44,587 |
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18.7 |
% |
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(2,343 |
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(5.3 |
%) |
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(94 |
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(5.0 |
%) |
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$ |
212,869 |
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100.0 |
% |
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$ |
238,202 |
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100.0 |
% |
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$ |
(25,333 |
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(10.6 |
%) |
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$ |
(5,270 |
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(8.4 |
%) |
ACTIVE ASSOCIATES AND ACTIVE PREFERRED CUSTOMERS BY REGION (unaudited) |
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(unaudited) |
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As of
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As of
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68,000 |
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35.2 |
% |
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71,000 |
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34.1 |
% |
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52,000 |
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27.0 |
% |
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57,000 |
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27.4 |
% |
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28,000 |
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14.5 |
% |
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33,000 |
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15.9 |
% |
Asia Pacific Total |
148,000 |
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76.7 |
% |
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161,000 |
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77.4 |
% |
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45,000 |
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23.3 |
% |
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47,000 |
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22.6 |
% |
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193,000 |
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100.0 |
% |
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208,000 |
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100.0 |
% |
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Active Preferred Customers by Region(2) |
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(unaudited) |
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As of
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As of
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182,000 |
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66.2 |
% |
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180,000 |
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64.5 |
% |
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25,000 |
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9.1 |
% |
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25,000 |
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9.0 |
% |
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14,000 |
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5.1 |
% |
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18,000 |
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6.4 |
% |
Asia Pacific Total |
221,000 |
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80.4 |
% |
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223,000 |
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79.9 |
% |
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54,000 |
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19.6 |
% |
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56,000 |
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20.1 |
% |
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275,000 |
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100.0 |
% |
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279,000 |
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100.0 |
% |
(1) Associates are independent distributors of our products who also purchase our products for their personal use. We only count as active those Associates who have purchased from us any time during the most recent three-month period, either for personal use or resale.
(2) Preferred Customers purchase our products strictly for their personal use and are not permitted to resell or to distribute the products. We only count as active those Preferred Customers who have purchased from us any time during the most recent three-month period.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240723833865/en/
Investor contact:
Investor Relations
(801) 954-7201
investor.relations@usanainc.com
Media contact:
Public Relations
(801) 954-7280
Source: