Natures Sunshine Products (NASDAQ:NATRE)
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From Jun 2019 to Jun 2024
Nature's Sunshine Products, Inc. (NASDAQ:NATRE)
announced today that it expects to report an approximate 4 percent
increase in sales for the fourth quarter ended December 31, 2005 as
compared to the fourth quarter of 2004. Operating income is
anticipated to be approximately 3 percent higher for the fourth
quarter ended December 31, 2005 as compared to the fourth quarter of
2004. Operating results were negatively impacted by increased expenses
in Synergy Worldwide and Brazil, and expenses related to a previously
announced ongoing review of selected financial information with
respect to certain foreign operations, which resulted in operating
income being less than anticipated.
In addition, the fourth quarter net income will be reduced
significantly by a tax rate higher than the 35 percent statutory rate.
The higher tax rate resulted from the strategic transfer last month of
certain assets from the United States to international locations, a
move that is expected to result in reduced rates in future periods,
beginning in 2006. This tax strategy has been implemented to position
the Company to achieve its future profitability objectives. This
transfer will result, for financial reporting purposes, in a tax
expense above the statutory rate for the year ended December 31, 2005.
However, because of existing foreign income tax credits, the asset
transfer is not expected to significantly affect actual cash taxes to
be paid for the year. As a result of the higher taxes, the Company
anticipates reporting a fourth quarter net loss of approximately $3.2
million.
With respect to the ongoing review of selected financial
information regarding certain foreign operations, the related expenses
were incurred for professional fees and related costs. The Company
continues to believe that unaudited consolidated financial statements
contained in the 10-Q filed on November 22, 2005, for which the
Company's independent auditors have not completed their review, are a
fair presentation for the three and nine month periods ended September
30, 2005.
Nature's Sunshine said that it expects to report complete
operating results for the fourth quarter and 12 months ended December
31, 2005 later in February 2006, at which time it also will hold its
regular quarterly conference call.
About Nature's Sunshine
Nature's Sunshine Products manufactures and markets through direct
sales encapsulated and tableted herbal products, high quality natural
vitamins, and other complementary products. In addition to the United
States, the Company has operations in Japan, Mexico, Central America,
South Korea, Canada, Dominican Republic, Venezuela, Ecuador, Peru, the
United Kingdom and Ireland, Colombia, Brazil, Thailand, Israel,
Singapore and Taiwan. The Company also has exclusive distribution
agreements with selected companies in Argentina, Australia, Chile, New
Zealand, Norway, and the Russian Federation.
Statements in this press release concerning the Company's business
outlook, the ongoing review of selected financial information of
certain operations, or future economic performance, anticipated
profitability, revenues, expenses or other financial items, and
product line growth, together with other statements that are not
historical facts, are "forward-looking statements" as that term is
defined under Federal Securities Laws. "Forward-looking statements"
are subject to risks, uncertainties and other factors, which could
cause actual results to differ materially from those set forth in such
statements. Such risks, uncertainties, and factors include, but are
not limited to, foreign business risks, industry cyclicality,
fluctuations in customer demand and order pattern, changes in pricing
and general economic conditions, as well as other risks detailed in
the Company's filings with the Securities and Exchange Commission. The
Company disclaims any obligations to update any forward-looking
statement as a result of developments occurring after the date of this
press release.