Associate Growth Caps Record Year for USANA

Associate Growth Caps Record Year for USANA

SALT LAKE CITYUSANA Health Sciences Inc. (NASDAQ:USNA) closed its fiscal year 2005 with record results from top tobottom. Revenues for the fourth quarter jumped almost 16 percent to $87 million,on the strength of a nearly 17-percent boost in associates. These gains led torecord fiscal year sales of $327.7 million, up 20 percent from the previousyear. Keeping operational costs in check, earnings achieved record levels inboth the quarter and the fiscal year, reaching $10.5 million or $0.54 per share,and $30 million or $1.98 per share, respectively.

Although we did not open any new international markets during 2005, westill achieved record sales and profits, said Dave Wentz, president, whonoted foreign government obstacles delayed the companys expected operationaldebut in China. Strong Associate growth, including 18.6 percent growth in theUnited States, compared with the fourth quarter of 2004, is the primary driverof our record fourth quarter sales.

We are pleased to report year-over-year sales growth in the fourth quarterin all of our markets, with the exception of South Korea, said Gilbert A.Fuller, chief financial officer (CFO). Our North American markets postedexcellent growth in the fourth quarter, including the United States, which grewsales by 22.9 percent and associates by 18.6 percent, compared with last year.Fuller added the companys functional foods impact increased to 11.6 percentof total product sales in the fourth quarter, compared with 8.8 percent theprior year.