Maker of nutritional and weight management products Usana Health Sciences said it achieved record sales of $34.8 million (€35.5m) for the third quarter ended 28 September 2002 , an increase of 18.6 per cent on the same period in 2001.
Earnings per share increased 267 per cent on a year-over-year basis to $0.22 in the third quarter of 2002 from $0.06 in the 2001 third quarter. Earnings per share exceeded the third quarter pre-release high estimate of $0.20 by $0.02 due to an adjustment of the company's effective tax rate calculation for fiscal year 2002.
Sales for the first nine months of 2002 were $95.5 million, an increase of 11.6 per cent over sales of $85.6 million during the same period of 2001.
Dave Wentz, president of Usana, said: "Third quarter sales represent the highest quarterly sales ever reported by the company, and reflect improved sales in all of our markets. I am pleased with Usana's renewed focus on issues critical to our overall mission. That focus has allowed us to keep our associate incentives among the highest in our industry while at the same time delivering strong earnings growth to our shareholders."
Gilbert A. Fuller, chief financial officer, added: "As we continue our efforts to contain costs and expand margins, we will see further incremental earnings improvements. Our repricing efforts are expanding our operating margins while increasing compensation to our associates. We believe this combination will drive continuing sales growth, providing further economies of scale."
Fuller added that depending on the initial sales levels from the Taiwan market which officially opens this week, Usana, which also sells its products to the United States, Canada, Australia, New Zealand, Hong Kong, Japan and the United Kingdom, expects to see 2002 sales of approximately $130 million.
"We anticipate Taiwan adding top line growth in the fourth quarter and contributing to the bottom line in 2003. As 2003 begins to come into focus, we anticipate revenue in the range of $140 and $150 million for the year."
Usana executives will hold a conference call to discuss the announcement today at 09:00 EST. The call will be broadcast over the Internet at www.usanahealthsciences.com.