Reinstatement of Quarterly Cash Dividend:
The Company's Board of Directors authorized a regular quarterly cash dividend of $0.05 per share, or $0.20 per share on an annual basis, payable on May 29, 2012 to shareholders of record as of the close of business on May 18, 2012. The Company suspended its dividend to shareholders on August 10, 2009, having previously paid a dividend every quarter since 1988. Michael Dean, Chief Executive Officer, stated: "We are pleased with the stability of our revenue, the improvement in our cash flow and the restoration of our strong balance sheet. These factors, combined with our growth prospects, have positioned us to reinstate the dividend to our shareholders on the occasion of Nature's Sunshine's 40th anniversary."
For the First Quarter of 2012:
-- Net sales were $92.9 million, compared with $92.8 million in the same quarter a year ago. -- As of March 31, 2012, active Managers worldwide were 29,800, a decrease of 1.7 percent from March 31, 2011, while active Distributors and customers worldwide were 675,400, a decrease of 3.0 percent from the end of the quarter a year ago. -- Operating income was $9.2 million, compared with $7.6 million in the same quarter a year ago, an increase of 20.4 percent. -- Adjusted EBITDA, defined here as net income before taxes, depreciation and amortization, and other income, adjusted to exclude share-based compensation expense, was $10.9 million, compared with $8.8 million in the same quarter a year ago, an increase of 24.3 percent. -- Net income was $7.2 million, compared with $6.6 million in the same quarter a year ago, an increase of 9.2 percent. -- Basic and diluted net income per share was $0.46 compared to $0.43 for the same quarter a year ago. -- As of March 31, 2012, shareholders' equity was $95.8 million, compared to $87.4 million on December 31, 2011, an increase of 9.6 percent.
Synergy Worldwide Results for the First Quarter:
-- Net sales were $23.3 million, compared with $20.7 million in the same quarter a year ago, an increase of 13.0 percent. In local currencies, net sales increased 15.5 percent. Active Managers within Synergy Worldwide totaled approximately 3,000 and 2,600 at March 31, 2012 and 2011, respectively. Active Distributors and customers within Synergy Worldwide totaled approximately 97,200 and 81,600 at March 31, 2012 and 2011, respectively. Synergy Worldwide is more network-marketing oriented, and the increase in net sales was primarily due to strong recruiting and retention of Managers and Distributors in our Korean and European markets. -- Operating income was $1.7 million, compared with $1.8 million for the same quarter in the prior year, a decrease of 8.8 percent. This decrease was primarily due to unusually high product returns during the quarter related to a specific promotion which contributed significantly to reduced net sales revenue in Japan. The products returns were not related to product quality.
