Revenue during the quarter went up marginally by 0.84 percent to $83.10 million from $82.40 million in the previous year period. Gross margin for the quarter expanded 58 basis points over the previous year period to 73.85 percent. Total expenses were 97.53 percent of quarterly revenues, up from 97.43 percent for the same period last year. That has resulted in a contraction of 10 basis points in operating margin to 2.47 percent.

Operating income for the quarter was $2.05 million, compared with $2.12 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $4.28 million compared with $4.17 million in the prior year period. At the same time, adjusted EBITDA margin improved 9 basis points in the quarter to 5.15 percent from 5.06 percent in the last year period.

"First quarter revenue was up modestly year-over-year, as resurgent growth in NSP Russia, Central and Eastern Europe helped to offset unanticipated weakness in Synergy Asia driven by economy-related challenges in South Korea" commented Gregory L. Probert, Chairman and Chief Executive Officer. "The pre-tax earnings decline versus the prior year reflects the continued costs associated with infrastructure built in anticipation of a potential market opportunity in China that remains dependent upon completion of the regulatory process.

Operating cash flow drops significantly
Nature’s Sunshine Products, Inc. has generated cash of $0.77 million from operating activities during the quarter, down 72.96 percent or $ 2.09 million, when compared with the last year period.

The company has spent $2.19 million cash to meet investing activities during the quarter as against cash outgo of $1.30 million in the last year period. It has incurred capital expenditure of $2.19 million on net basis during the quarter, up 68.64 percent or $0.89 million from year ago period.

Cash flow from financing activities was $0.94 million for the quarter, down 66.95 percent or $1.91 million, when compared with the last year period.

Cash and cash equivalents stood at $33.06 million as on Mar. 31, 2017, down 28.80 percent or $13.37 million from $46.43 million on Mar. 31, 2016.

Working capital drops significantly
Nature’s Sunshine Products, Inc. has witnessed a decline in the working capital over the last year. It stood at $31.03 million as at Mar. 31, 2017, down 35.02 percent or $16.72 million from $47.76 million on Mar. 31, 2016. Current ratio was at 1.47 as on Mar. 31, 2017, down from 1.77 on Mar. 31, 2016.

Cash conversion cycle (CCC) has decreased to 86 days for the quarter from 143 days for the last year period. Days sales outstanding were almost stable at 9 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 102 days for the quarter compared with 165 days for the previous year period. At the same time, days payable outstanding went down to 25 days for the quarter from 31 for the same period last year.