Nature's Sunshine Products, Inc (NATR) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $6.65 million, or $ 0.35 a share in the quarter, against a net profit of $3.69 million, or $0.19 a share in the last year period. Revenue during the quarter grew 4.95 percent to $83.95 million from $79.99 million in the previous year period. Gross margin for the quarter contracted 178 basis points over the previous year period to 71.02 percent. Operating margin for the quarter stood at negative 1.65 percent as compared to a positive 2.78 percent for the previous year period.
Operating loss for the quarter was $1.39 million, compared with an operating income of $2.22 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $0.62 million compared with $4.63 million in the prior year period. At the same time, adjusted EBITDA margin contracted 505 basis points in the quarter to 0.73 percent from 5.79 percent in the last year period.
“Fourth quarter financial results were negatively impacted by items related to delay and uncertainty surrounding receipt of a direct selling license in China” commented Gregory L. Probert, chairman and chief executive officer. “While our 2016 financial results have been constrained by the infrastructure built in anticipation of a future market opportunity, we remain steadfast in our belief that the investments are prudent given the potential opportunity that lies ahead of us should the regulatory process in China be completed.”
Operating cash flow drops significantly
Nature's Sunshine Products, Inc has generated cash of $3.42 million from operating activities during the year, down 66.37 percent or $6.75 million, when compared with the last year. The company has spent $11.53 million cash to meet investing activities during the year as against cash outgo of $18.59 million in the last year.
The company has spent $0.29 million cash to carry out financing activities during the year as against cash outgo of $7.58 million in the last year period.
Cash and cash equivalents stood at $32.28 million as on Dec. 31, 2016, down 22.06 percent or $9.14 million from $41.42 million on Dec. 31, 2015.
Working capital declines
Nature's Sunshine Products, Inc has witnessed a decline in the working capital over the last year. It stood at $37.09 million as at Dec. 31, 2016, down 23.35 percent or $11.30 million from $48.38 million on Dec. 31, 2015. Current ratio was at 1.59 as on Dec. 31, 2016, down from 1.91 on Dec. 31, 2015.
Debt increases substantially
Nature's Sunshine Products, Inc has witnessed an increase in total debt over the last one year. It stood at $9.92 million as on Dec. 31, 2016, up 267.92 percent or $7.22 million from $2.70 million on Dec. 31, 2015. Total debt was 4.83 percent of total assets as on Dec. 31, 2016, compared with 1.34 percent on Dec. 31, 2015. Debt to equity ratio was at 0.07 as on Dec. 31, 2016, up from 0.02 as on Dec. 31, 2015.
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