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2013 Annual and Quarterly Results
Primerica Inc. (PRI—NYSE) announced financial results for the quarter ended Dec. 31, 2013. Total revenues were $327.2 million in the fourth quarter of 2013 and net income was $37.2 million, or 67 cents per diluted share. For the full year 2013, total revenues were $1.27 billion and net income was $162.7 million, or $2.83 per diluted share.
In the fourth quarter, operating revenues increased by 8 percent to $326.3 million and net operating income increased by 12 percent to $46.8 million compared with $303.4 million and $41.6 million, respectively, in the year ago period.
In the fourth quarter, net operating income per diluted share increased 22 percent to 84 cents and ROAE expanded to 16.4 percent.
For the full year 2013, net operating income declined to $171.0 million in 2013 from $174.5 million in 2012, primarily reflecting higher legal fees and expenses related to FRS. Results also reflect lower yield on invested assets and lower invested assets following the repurchase of $154.7 million of shares of common stock and warrants during the year to enhance shareholder value. Year-over-year, return of capital to stockholders drove a 9 percent increase in diluted operating EPS to $2.97 and a 70 basis points increase in ROAE to 15.0 percent compared with 2012.
As of Dec. 31, 2013, investments and cash totaled $1.98 billion compared with $1.91 billion as of Sept. 30, 2013. The company’s invested asset portfolio had a net unrealized gain of $100.0 million (net of unrealized losses of $17.0 million) at Dec. 31, 2013, down from $112.9 million at Sept. 30, 2013 due to rising interest rates.
The Primerica board of directors has authorized a share repurchase program, and the company expects to repurchase up to $150 million of common stock in 2014.
USANA Health Sciences Inc.
USANA Health Sciences Inc. (USNA—NYSE) announced financial results for its fiscal fourth quarter and full year ended Dec. 28, 2013.
2013 Fourth Quarter Results
For the fourth quarter of 2013, net sales increased by 10.5 percent to $186.3 million, compared with $168.5 million in the prior-year period. The company’s Asia Pacific and North America/Europe regions both reported sales and customer growth for the quarter. Unfavorable changes in currency exchange rates reduced net sales in the quarter by $2.9 million.
Net earnings for the fourth quarter increased to $20.3 million, a 9.9 percent improvement, compared with the prior-year period. Earnings per share for the quarter increased by 11 percent to $1.41 compared with $1.27 in the fourth quarter of the prior year. Weighted average diluted shares outstanding were 14.4 million in the fourth quarter of 2013 compared with 14.5 million in the prior-year period.
Net sales in the Asia Pacific region increased by 13.0 percent to $121.8 million, compared with $107.8 million for the fourth quarter of the prior year. This improvement was due primarily to sales growth in the Greater China and Southeast Asia Pacific regions with China and Singapore experiencing the most meaningful growth.
Net sales in North America/Europe increased by 6.1 percent to $64.5 million, compared with $60.7 million in the prior-year period. Every market in the region achieved top-line growth, with Mexico and Canada experiencing the largest increases.
2013 Annual Results
For the year ended Dec. 28, 2013, net sales increased by 10.7 percent to $718.2 million, compared with $648.7 million in the prior year. Net sales for the full year were negatively impacted by $2.8 million due to changes in currency exchange rates.
Net earnings for 2013 increased by 19.0 percent to $79.0 million, or $5.56 per share, compared with $4.45 per share in the prior year. Weighted average diluted shares outstanding were 14.2 million at fiscal year-end 2013, compared with 14.9 in the prior-year period.
Cash generated from operations totaled $99.9 million for the year ended Dec. 28, 2013. The company repurchased 414,000 shares in 2013 for a total investment of $18.1 million. The company ended the year debt-free with a remaining share repurchase authorization of approximately $13.6 million.
Avon Products Inc.
Avon Products Inc. (AVP—NYSE) reported fourth quarter and full-year 2013 results.
2013 Fourth Quarter Results
For the fourth quarter of 2013, total revenue of $2.7 billion decreased 10 percent, or 4 percent in constant dollars. Beauty sales declined 11 percent, or 4 percent in constant dollars. Fashion & Home sales declined 8 percent, or 2 percent in constant dollars.
Fourth quarter 2013 gross margin was 61.0 percent. Gross margin included a $5 million charge associated with highly inflationary accounting for the 32 percent devaluation of Venezuelan currency that occurred in the first quarter of 2013. Adjusted gross margin was 61.2 percent, 140 basis points higher than the prior-year quarter.
Operating loss was $17 million and operating margin was (0.6) percent in the quarter. Adjusted operating profit was $219 million and adjusted operating margin was 8.2 percent, down 100 basis points from the fourth quarter of 2012. The decline in adjusted operating margin was driven by the impact of the revenue decline with respect to fixed expenses.
Fourth quarter 2013’s net loss from continuing operations was $68 million, or 16 cents per diluted share, compared with a net loss from continuing operations of $36 million, or 8 cents per diluted share, in the fourth quarter of 2012. Fourth quarter 2013’s adjusted net income from continuing operations was $151 million, or 34 cents per diluted share, compared with $154 million, or 36 cents per diluted share, in the fourth quarter of 2012.
Latin America’s fourth quarter 2013 revenue was $1.24 billion, down 7 percent year over year or up 4 percent in constant dollars. Q4 revenue in Europe, Middle East & Africa was $867.7 million, down 4 percent, or down 2 percent in constant dollars. North America’s fourth quarter revenue was $370.8 million, down 21 percent, or down 20 percent in constant dollars, and Asia Pacific’s revenue was $192.4 million, down 22 percent year over year, or down 18 percent in constant dollars.
2013 Annual Results
Total revenue of $10.0 billion decreased 6 percent, or 1 percent in constant dollars. Total Beauty sales declined 7 percent, or 2 percent in constant dollars. Fashion & Home sales declined 4 percent, or were up 1 percent in constant dollars.
Operating profit was $427 million and operating margin was 4.3 percent, down 70 basis points from 2012. Adjusted operating profit was $791 million, and adjusted operating margin was 7.9 percent, up 130 basis points from 2012.
Full-year net loss from continuing operations was $1 million, or 1 cent per diluted share, compared with net income from continuing operations of $93 million, or 20 cents per diluted share, in 2012. Adjusted net income from continuing operations was $451 million, or $1.02 per share, compared with $373 million, or 84 cents per share, in 2012.
Cash flow from operations was $540 million for the 12 months ended Dec. 31, 2013, $4 million lower than in the same period in 2012.
Avon’s net debt (total debt less cash) as of Dec. 31, 2013 was $1.6 billion, down $376 million from Dec. 31, 2012. For the 12 months ended Dec. 31, 2013, the company reduced the overall debt balance by $475 million.
Nu Skin Enterprises Inc.
Nu Skin Enterprises Inc. (NUS—NYSE) announced preliminary fourth quarter results, with estimated revenue of $1.075 billion. Revenue was negatively impacted 4 percent by foreign currency fluctuations. Earnings per share for the quarter are estimated to be approximately $2.00 to $2.02.
“We are pleased with our 2013 results and are focused on sustaining growth in 2014,” said CEO Truman Hunt. “Given the current review of our business in China and our desire to provide the most informed guidance possible, we are rescheduling our full earnings release and investor call to later in the month. We look forward to discussing our 2013 results and our business plan and guidance for 2014 at that time.”
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