USANA Health Sciences Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>USANA Health Sciences Inc. has filed its 2023 10-K annual report detailing its financial performance and business operations.</b>

AI Summary

USANA HEALTH SCIENCES INC (USNA) filed a Annual Report (10-K) with the SEC on February 27, 2024. USANA Health Sciences Inc. filed its 10-K report for the fiscal year ending December 30, 2023. The company is incorporated in Utah and operates within the Medicinal Chemicals & Botanical Products sector (SIC 2833). The filing covers the period from January 1, 2023, to December 30, 2023. USANA's principal business address is 3838 West Parkway Blvd., Salt Lake City, UT 84120-6336. The report includes financial data for the fiscal years 2021, 2022, and 2023.

Why It Matters

For investors and stakeholders tracking USANA HEALTH SCIENCES INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of USANA's financial health, operational performance, and strategic positioning for the fiscal year 2023, which is crucial for investors to assess the company's stability and growth prospects. Understanding the details within this report allows stakeholders to evaluate USANA's compliance with regulatory requirements and its adherence to accounting standards, ensuring transparency and accountability.

Risk Assessment

Risk Level: low — USANA HEALTH SCIENCES INC shows low risk based on this filing. The filing is a standard 10-K annual report, which is a routine disclosure for publicly traded companies and does not contain any immediate red flags or unexpected information.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand USANA's performance and outlook for the upcoming fiscal year.

Key Numbers

• 2023-12-30 — Fiscal Year End (Conformed period of report)
• 2024-02-27 — Filing Date (Filed as of date)
• 2833 — SIC Code (Standard Industrial Classification)
• UT — State of Incorporation (State of incorporation)

Key Players & Entities

• USANA HEALTH SCIENCES INC (company) — Filer name
• USANA INC (company) — Former company name
• SALT LAKE CITY (company) — Business address city
• UT (company) — Business address state

FAQ

Industry Context

USANA Health Sciences operates in the health and wellness industry, focusing on nutritional supplements and personal care products.

Regulatory Implications

The filing is a 10-K, an annual report required by the Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Review the consolidated financial statements for the fiscal year ended December 30, 2023.
2. Analyze the Management's Discussion and Analysis of Financial Condition and Results of Operations section.
3. Examine the Risk Factors section for potential business challenges and uncertainties.

Key Dates

• 2023-12-30: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-27: Filing Date — Date the 10-K report was officially filed with the SEC.

Year-Over-Year Comparison

This is the 2023 10-K filing, providing the latest annual financial overview compared to previous filings.

Key Financial Figures

• $0.001 — ich registered Common Stock, Par Value $0.001 per share USNA New York Stock Exchange
• $63.04 — ,000 based on a closing market price of $63.04 per share. There were 19,240,514 share
• $921 million — wellness company. In 2023, we generated $921 million in net sales and finished the year with

Filing Documents

• usna-20231230.htm (10-K) — 1777KB
• subsidiaries-exhibit21.htm (EX-21) — 21KB
• usna-20231230xexhibit231.htm (EX-23.1) — 2KB
• usna-20231230xex311.htm (EX-31.1) — 10KB
• usna-20231230xex312.htm (EX-31.2) — 10KB
• usna-20231230xex321.htm (EX-32.1) — 4KB
• usna-20231230xex322.htm (EX-32.2) — 4KB
• ex-97usanaxclawbackpolicy.htm (EX-97) — 17KB
• usna-20231230_g1.jpg (GRAPHIC) — 127KB
• 0000896264-24-000093.txt (&nbsp;) — 9704KB
• usna-20231230.xsd (EX-101.SCH) — 64KB
• usna-20231230_cal.xml (EX-101.CAL) — 104KB
• usna-20231230_def.xml (EX-101.DEF) — 269KB
• usna-20231230_lab.xml (EX-101.LAB) — 847KB
• usna-20231230_pre.xml (EX-101.PRE) — 540KB
• usna-20231230_htm.xml (XML) — 1413KB

Business

Business 3 General 3 Current Focus and Growth Strategy 3 Products 5 Geographic Presence 6 Research and Development 6 Manufacturing and Quality Assurance 7 Distribution and Marketing 9 Operating Strengths 12 Competition 14 Product Returns 14 Major Customers 14 Associate Compliance 14 Information Technology 15 Regulatory Matters 15 Intellectual Property 18 Seasonality 19 Backlog 19 Working Capital Practices 19 Environment Laws 19 Our Values and Culture 19 Information About Our Executive Officers and Directors 21 Additional Available Information 22 Item 1A

Risk Factors

Risk Factors 23 Item 1B Unresolved Staff Comments 38 Item 1C Cybersecurity 39 Item 2

Properties

Properties 40 Item 3

Legal Proceedings

Legal Proceedings 40 Item 4 Mine Safety Disclosures 40 Part II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 41 Item 6 Reserved 42 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 42 Item 7A

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 49 Item 8

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 49 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 49 Item 9A

Controls and Procedures

Controls and Procedures 49 Item 9B Other Information 53 I tem 9C Disclosure regarding Foreign Jurisdictions that Prevent Inspections 53 Table of Contents Part III Item 10 Directors, Executive Officers and Corporate Governance 53 Item 11

Executive Compensation

Executive Compensation 53 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 53 Item 13 Certain Relationships and Related Transactions, and Director Independence 53 Item 14 Principal Accounting Fees and Services 53 Part IV Item 15 Exhibits, Financial Statement Schedules 53

Signatures

Signatures 56 Table of Contents Cautionary Note Regarding Forward-Looking Statements and Certain Risks This report contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new products; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include, but are not limited to, statements regarding future financial results, long-term value creation goals, productivity, raw material prices and related costs, supply chain, asset impairment, litigation, sustainability and environmental, social and governance ("ESG") efforts, compliance with current or proposed international laws and regulations, the impact of COVID-19 or other pandemics, or geo-political tensions, conflicts or wars on our operations. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Becaus

Business

Item 1. Business General USANA Health Sciences, Inc. is a global direct-selling nutrition, personal health and wellness company. In 2023, we generated $921 million in net sales and finished the year with approximately 483,000 active Customers worldwide. We were founded in 1992 by Myron W. Wentz, Ph.D. and since that time, we have developed and manufactured high quality, science-based nutritional, personal care and skincare products with a primary focus on promoting long-term health and wellness. In so doing, we are committed to continuous product innovation and sound scientific research. We have operations in 25 geographic markets worldwide, where we distribute and sell our products by way of direct selling. Mainland China ("China") is our largest market and single largest source of revenue, representing approximately 46.4% of net sales and approximately 48.9% of active Customers. Late in the fourth quarter of 2023, we commenced operations in our newest market, India. We distribute our products through the direct selling channel, because we believe it is the most conducive sales channel to meeting our vision, which is improving the overall health and nutrition of individuals and families around the world. As a U.S.-based multi-national corporation with an expanding international presence, our operating results are sensitive to currency fluctuations, as well as economic and political conditions in markets throughout the world. Additionally, we are subject to the various laws and regulations in the United States, China, and the other markets in which we operate with respect to the products that we manufacture, and sell, and our method of distribution. We are a U.S. public company listed on the New York Stock Exchange ("NYSE") and subject to the rules of the SEC. Our customer base is primarily comprised of two types of customers: "Associates" and "Preferred Customers" referred to collectively as "active Customers." Our Associates also sell our products to retail cu

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View this 10-K filing on SEC EDGAR