Nu Skin 2010 Annual Report - Direct Selling News

ITEM 6.
SELECTED FINANCIAL DATA
The following selected consolidated financial data as of and for the years ended December 31, 2006, 2007, 2008, 2009 and 2010 have been
derived from the audited consolidated financial statements.
Year Ended December 31,
2006 2007 2008 2009 2010
(U.S. dollars in thousands, except per share data and cash dividends)
Income Statement Data:
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,115,409 $ 1,157,667 $ 1,247,646 $ 1,331,058 $ 1,537,259
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 195,203 209,283 228,597 243,648 272,431
Gross profit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 920,206 948,384 1,019,049 1,087,410 1,264,828
Operating expenses:
Selling expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 482,931 499,095 533,151 559,605 646,348
General and administrative expenses . . . . . . . . . . . . . . . . . . . . 350,617 358,601 360,470 369,368 401,418
Restructuring charges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,115 19,775 — 10,724 —
Impairment of assets and other . . . . . . . . . . . . . . . . . . . . . . . . . . 20,840 — — — —
Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 865,503 877,471 893,621 939,697 1,047,766
Operating income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54,703 70,913 125,428 147,713 217,062
Other income (expense), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,027) (2,435) (24,775) (6,589) (9,449)
Income before provision for income taxes . . . . . . . . . . . . . . . . . 52,676 68,478 100,653 141,124 207,613
Provision for income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,859 24,606 35,306 51,279 71,562
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 32,817 $ 43,872 $ 65,347 $ 89,845 $ 136,051
Net income per share:
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.47 $ 0.68 $ 1.03 $ 1.42 $ 2.18
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.47 $ 0.67 $ 1.02 $ 1.40 $ 2.11
Weighted-average common shares outstanding (000s):
Basic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,418 64,783 63,510 63,333 62,370
Diluted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70,506 65,584 64,132 64,296 64,547
Balance Sheet Data (at end of period):
Cash and cash equivalents and current investments . . . . . . $ 121,353 $ 92,552 $ 114,586 $ 158,045 $ 230,337
Working capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 109,418 95,175 124,036 152,731 206,078
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 664,849 683,243 709,772 748,449 892,224
Current portion of long-term debt . . . . . . . . . . . . . . . . . . . . . . . . 26,652 31,441 30,196 35,400 27,865
Long-term debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 136,173 169,229 158,760 121,119 133,013
Stockholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318,980 275,009 316,180 375,687 471,249
Cash dividends declared . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.40 0.42 0.44 0.46 0.50
Supplemental Operating Data (at end of period):
Approximate number of active distributors (1) . . . . . . . . . . . . . . 761,000 755,000 761,000 761,000 799,000
Number of executive distributors (1) . . . . . . . . . . . . . . . . . . . . . . . . 29,756 30,002 30,588 32,939 35,676
(1)
Active distributors include preferred customers and distributors purchasing products directly from us during the three months ended as of the date indicated. An executive
distributor is an active distributor who has achieved required personal and group sales volumes.
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