Nature's Sunshine Products Inc. (NASDAQ:NATR) Q3 2019 Earnings Conference Call - Final Transcript
Nov 07, 2019 • 05:00 pm ET
Greetings and welcome to the Nature's Sunshine Products Third Quarter 2019 Conference Call. All participants are in a listen-only mode and this conference is being recorded.
I'd now like to turn the conference over to your host, Mr. Nate Brower, General Counsel of Nature's Sunshine Products. Thank you, Mr. Brower, you now have the floor.
Good afternoon. Thanks to all of you for joining our conference call to discuss our third quarter 2019 financial results. This call is available for replay in a live webcast that will be posted on our website at naturessunshine.com in the Investors section. The information on this call may contain forward-looking statements. These statements are often characterized by terminologies such as believe, hope, may, anticipate, expect, will and other similar expressions. Forward-looking statements are not guarantees of future performance, and the actual results may be materially different from the results implied by the forward-looking statements. Factors that could cause results to differ materially from those implied herein include, but are not limited to, both factors disclosed in the company's Annual Report on Form 10-K under the caption Risk Factors, and other reports filed with the Securities and Exchange Commission. The information on this call speaks only as of today's date, and the company disclaims any duty to update the information provided herein.
I will now turn the call over to Terrence Moorehead, Chief Executive Officer of Nature's Sunshine Products.
Thank you Nate and good afternoon, everyone and thank you for joining us for today's call. I'm pleased to be with you today to discuss our third quarter results and some of the progress that we've made transforming our business. With me today is our Chief Financial Officer, Joe Baty, who will walk you through our financials in greater detail, but I'm going to kick things off today with a brief overview of the business.
Now as you know, earlier this year, we launched a new global strategy designed to strengthen our business by improving our consumer appeal and dramatically improving profitability. We're only about seven months into the process, but so far, I'm very pleased with our progress through the third quarter. Already, we're seeing significant improvement to our margins, which are up 300 basis points versus Q3 prior year, excluding nonrecurring items, while net income was up 60% versus Q3 prior year.
Our efforts to restructure the business, including the new leadership structure we launched in July and a leaner, more efficient organization, has helped drive profitability, while strengthening our ability to focus and more effectively execute our strategies. Our new operating business units, or as we call them, OBUs, are more focused on addressing local consumer needs, improving market effectiveness and building the capabilities needed to drive results.
During the third quarter, we made significant progress against each of our five global strategies, and I'd like to briefly discuss our progress on each one of those. Our first strategy, that we call brand power is about creating a more aspirational brand that excites, inspires