Nature's Sunshine Products, (NATR), a leading natural health and wellness company engaged in the manufacture and direct selling of nutritional and personal care products, reported its consolidated financial results for the first quarter ended March 31, 2014, and declared a quarterly cash dividend of $0.10 per share.
"2014 is off to a strong start with record-setting sales at Synergy Worldwide and continued progress in implementing growth initiatives across our NSP businesses," commented Gregory L. Probert, Chairman and Chief Executive Officer of Nature's Sunshine Products.
Net sales revenue decreased 0.8 percent to $95.8 million, compared to $96.5 million in the first quarter of 2013. In local currencies, net sales revenue increased by 0.3 percent.
Selling, general and administrative expenses decreased 1.2 percent to $29.8 million, compared with $30.1 million in the first quarter of 2013. Selling, general and administrative expenses decreased due to $1.4 million of one-time severance costs and the acceleration of stock option expense incurred related to the resignation of the Company's former Chief Executive Officer that were incurred in 2013, which were partially offset by $1.0 million of increased compensation, health insurance and other benefit costs as a result of the Company's incremental investment in sales, marketing, science and product development personnel and programs in 2014.
Adjusted EBITDA, defined here as net income before taxes, depreciation, amortization and other income adjusted to exclude share-based compensation expense, increased 3.5 percent to $9.5 million, compared to $9.2 million in the first quarter of 2013.
Net income was $9.7 million, or $0.58 per diluted common share, compared to $4.9 million, or $0.30 per diluted common share in the first quarter of 2013, reflecting a one-time tax benefit related to intercompany dividends.
Our clinically-proven prostate balancing product, Equolibrium, which launched at our US National Convention at the end of March, has already reached 20% penetration in our manager base.
Distributor adoption of our IN.FORM weight management program, which also launched in the U.S. in March, has exceeded our early forecasts, continues to gain momentum, and supported a 13% year-over-year growth in sales of weight management products in the quarter.
