Nu Skin Enterprises Inc. (NYSE:NUS) Q4 2018 Earnings Conference Call Transcript

Feb 13, 2019 • 05:00 pm ET


Nu Skin Enterprises Inc. (NYSE:NUS) Q4 2018 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to the Nu Skin Enterprises Fourth Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference call is being recorded.

I would now like to introduce your host for today's conference, Mr. Scott Pond, Vice President of Investor Relations. Sir, you may begin.

Scott Pond

Thank you, Ashley and thanks, everyone for joining us. On the call with me today are Ritch Wood, Chief Executive Officer; Ryan Napierski, President; Mark Lawrence, Chief Financial Officer; and Dr. Joe Chang, Chief Scientific Officer.

On today's call, comments will be made that include some forward-looking statements. These statements involve risks and uncertainties, and actual results may differ materially from those discussed or anticipated. Please refer to today's earnings release and our SEC filings for a complete discussion of these risks.

Also during this call, certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statement. We believe these non-GAAP financial numbers assist in comparing period-to-period results in a more consistent manner. Please refer to our Investor page at for any required reconciliation of non-GAAP numbers.

And I'll turn the time now to Ritch.

Ritch N. Wood

Good afternoon, everyone, and thank you for joining us on this call today. As we completed 2018 and started this new year of 2019, it has given me the opportunity to pause and consider what I've learnt in the past nearly two years since becoming the CEO. I have definitely learned a lot. First, I am fortunate to have a very strong, capable and motivated global management team and we are lucky to work with our global sales force, which we believe are some of the best and most talented people this world has to offer. Our relentless focus on customer -- growing their customer base is working. Two years ago, I truly believe we could grow our business and deliver on our mission to improve lives around the world. Today, I am confident in our capabilities to be successful in this regard and the vision and pathway of how we can unleash our potential is much more clear to me now. We will change the world and I look forward to a great year here in 2019.

I was particularly encouraged as we closed the year with a solid fourth quarter, wherein we generated 7% constant currency revenue growth. Our reported revenue growth was 3%, which included a negative currency impact of 4%. These are very promising results as the prior year included a $130 million of revenue from our LumiSpa product introduction and a quarter in which we reported 25% growth.

For 2018, our annual revenue was $2.68 billion, an 18% improvement for the year and was driven by growth in every region except Japan. And in Japan, we actually showed modest improvements throughout the year. I was especially pleased also with