如新 (NUS) 2023 Q4 法說會逐字稿

Thank you for standing by, and welcome to Nu Skin Enterprises Q4 2023 earnings conference call. At this time, all participants are on a listen only. The speakers' presentation there will be a question and answer. We ask a question. At that time, please press star one on your telephone. Please be advised today's call is being recorded. I will now turn the conference over to your host, Mr. Scott Pond, Vice President of Investor Relations. Please go ahead.

感謝您的支持，歡迎參加如新企業 2023 年第四季財報電話會議。此時，所有參與者都只能聆聽。演講者的演講將有一個問答環節。我們問一個問題。屆時，請按手機上的星號一。請注意，今天的通話正在錄音。現在我將會議交給東道主投資者關係副總裁史考特龐德先生。請繼續。

Valerie, and good afternoon, everyone. Today on the call with me are Ryan Napierski, President and CEO; and James Thomas, CFO.

瓦萊麗，大家下午好。今天與我通話的是總裁兼執行長 Ryan Napierski；和首席財務官詹姆斯托馬斯。

On today's call, comments will be made that include some forward-looking statements. These statements involve risks and uncertainties, and actual results may differ materially from those discussed or anticipated. Please refer to today's earnings release and our SEC filings for a complete discussion of these risks.

在今天的電話會議上，將發表評論，其中包括一些前瞻性陳述。這些陳述涉及風險和不確定性，實際結果可能與討論或預期的結果有重大差異。請參閱今天的收益報告和我們向 SEC 提交的文件，以了解對這些風險的完整討論。

Also during the call, certain financial numbers may be discussed that differ from comparable numbers obtained in our financial statements. We believe these non-GAAP numbers assist in comparing period-to-period results in a more consistent manner. Please refer to our investor website for any required reconciliation of non-GAAP numbers.

此外，在電話會議期間，可能會討論某些與我們財務報表中獲得的可比較數據不同的財務數據。我們相信這些非公認會計原則數字有助於以更一致的方式比較不同時期的結果。請參閱我們的投資者網站，以了解任何所需的非 GAAP 資料調整。

And with that, I'll turn the call over to Ryan.

然後，我會將電話轉給瑞安。

Thank Scott.

謝謝斯科特。

Hello, everyone.

大家好。

Thanks for joining our call today. We have a lot to cover in today's call.

感謝您今天加入我們的電話會議。我們在今天的電話會議中有很多內容要討論。

So let's jump into business performance and then onto expanded enterprise vision and strategy. We are pleased to deliver fourth quarter at quarter revenue above our latest guidance range, driven by the continued rollout of ageLOC Welspun IO in many markets, seasonal promotion in China and the continued strong performance of our RISE businesses this quarter further demonstrated that while we continue to make progress towards our long-term vision. Much of our headway was concealed by the persistent macroeconomic pressures, impacting consumer spending and customer acquisition around the globe as well as disruptions associated with the ongoing transformation of our core business. This was particularly evident in the fourth quarter results, which were down in our Americas, South Korea and Europe and Africa segments. This was offset by seasonal promotions in Mainland China, stabilization in Japan and modest growth in our Hong Kong Taiwan segment. In addition, we actually achieved over 100% growth in our rice businesses, which accounted for 13% of our revenue in the fourth quarter and continued to become a more meaningful part of our and end users are achieving their desired results with this more personalized approach. Whilst Bio has been a strong addition to our number one beauty device systems brand and is generating consumer interest with the demonstrable results, Welspun IO is scheduled to launch in Mainland China in Q2, and we'll be launching a similar device renew spot IO in the U.S. later this quarter.

因此，讓我們先討論業務績效，然後再討論擴展的企業願景和策略。我們很高興第四季度營收高於我們最新的指導範圍，這得益於ageLOC Welspun IO在許多市場的持續推出、中國的季節性促銷以及本季度我們RISE業務的持續強勁表現，這進一步表明，儘管我們繼續朝著我們的長期願景取得進展。我們所取得的大部分進展都被持續的宏觀經濟壓力所掩蓋，這些壓力影響了全球的消費者支出和客戶獲取，以及與我們核心業務持續轉型相關的干擾。這在第四季業績中尤其明顯，美洲、韓國、歐洲和非洲業務部門的業績都出現下滑。這被中國大陸的季節性促銷、日本的穩定以及香港和台灣業務的適度增長所抵消。此外，我們的大米業務實際上實現了超過100% 的成長，占我們第四季度收入的13%，並繼續成為我們更有意義的一部分，最終用戶正在透過這種更個性化的方法實現他們期望的結果。雖然Bio 已成為我們第一大美容設備系統品牌的有力補充，並以明顯的結果引起了消費者的興趣，但Welspun IO 計劃於第二季度在中國大陸推出，我們將在2019 年推出類似的設備更新現貨IO。本季稍後在美國。

Moving into 2024, we are preparing to enter, enter the rapidly growing $10 billion brain health market stress, sleep and mental acuity are all growing concerns for consumers around the world and our unique approach to holistic wellness positions us to provide integrated solutions to help our consumers find better balance in their lives. We will be introducing this new division and brand at our live events in Q3 we also continue to focus on deepening connectivity with customers and affiliates through enhanced capabilities and feature sets in the Vera and Stella apps, which we believe will enable deeper connections with our customers to meet their personalized needs. Geographically, we continue to see near term pressures on consumer spending related to extended hyperinflationary conditions around the globe. The Americas, South Korea, Europe and Southeast Asia all experienced a more difficult year as consumers shifted purchasing habits towards lower-priced goods and services. In the meantime, we will be introducing new affordable luxury products targeting the mass each customer segments, including a series of new product regimens being rolled out in the U.S. and South Korea this quarter, together with well SPAR renew spot and our TRET. line, we anticipate leveling trends in the business moving into the second half of 2024 for Mainland China experienced stabilization in our business in the fourth quarter, which was associated with seasonal promotions. While we continue to believe in the potential of this great market, we anticipate ongoing challenges as the economy works to recover over the coming year. We are introducing a new go-to market model, partnering with dosing in a systemic app of TikTok, which will begin being tested and refined in the first half of '24, Japan, Hong Kong and Taiwan each showed favorable outcomes in 2023, and we anticipate these trends to continue moving into 2024.

進入2024 年，我們正準備進入快速成長的100 億美元大腦健康市場，壓力、睡眠和精神敏銳度都成為世界各地消費者日益關注的問題，我們獨特的整體健康方法使我們能夠提供綜合解決方案來幫助我們的大腦健康。消費者在生活中找到了更好的平衡。我們將在第三季的現場活動中介紹這個新部門和品牌，我們也將繼續專注於透過Vera 和Stella 應用程式中增強的功能和功能集加深與客戶和附屬公司的聯繫，我們相信這將有協助與客戶建立更深入的聯繫以滿足他們的個人化需求。從地理上看，我們繼續看到與全球範圍內長期惡性通膨狀況相關的消費者支出近期面臨壓力。由於消費者的購買習慣轉向低價商品和服務，美洲、韓國、歐洲和東南亞都經歷了更困難的一年。同時，我們將針對大眾客戶群推出新的平價奢侈品，包括本季在美國和韓國推出的一系列新產品方案，以及well SPAR更新點和我們的TRET。我們預計，由於中國大陸的業務在第四季度經歷了穩定，這與季節性促銷有關，因此進入 2024 年下半年，我們的業務將呈現趨於平穩的趨勢。雖然我們仍然相信這個巨大市場的潛力，但我們預計隨著經濟在來年復甦，挑戰將持續存在。我們正在引入一種新的進入市場模式，與TikTok 的系統應用程式中的劑量合作，該模式將於24 年上半年開始測試和完善，日本、香港和台灣在2023 年均顯示出良好的結果，而我們預計這些趨勢將持續到 2024 年。

Next, let me discuss our expanded enterprise ecosystem, vision and strategy. Including RISE, which is becoming a more substantial part of our business as consumers discovery and purchasing behavior shift further from traditional media into social media, influencer and affiliate marketing continues to grow at an accelerating pace. A recent statistics study estimates influencer marketing in the US to grow from $6 billion to around $69 billion by 2029. We believe that we are well positioned to capitalize upon this shift as we expand our enterprise vision towards becoming the world's leading integrated beauty, wellness and lifestyle ecosystem. This implies an even broader opportunity in the mid to long term as we further build out our RISE business segments and seek synergistic opportunities across our business units. By applying our nearly 40 years of learnings in affiliate marketing from our core business with new capabilities and learnings from our RISE businesses, we see greater potential for driving enterprise value over time via this expansive beauty, wellness and lifestyle ecosystem. In order to further enable this expanded vision, we have been reviewing all aspects of our business and reassessing our approach to capital allocation to invest in long-term growth and business evolution. This includes rebalancing our dividend payout ratio to be more in line with or better than our industry peers. This move will provide increased financial flexibility, enabling us to effectively seize forthcoming opportunities. This was a difficult decision for our management team and the Board and one that we don't take lightly. However, after extensive analysis and careful deliberation, we believe this move is in the best interest of all stakeholders as we pursue our long-term enterprise system vision for growth. This capital reallocation will free up approximately $65 million annually. That will be directed towards high-potential growth investments, which in the near term, will be relatively evenly spread across the following three areas. Number one, accelerate accelerating the growth opportunities in our RISE ecosystem which grew 41% last year and is becoming a more substantial portion of the overall enterprise.

接下來，讓我討論一下我們擴展的企業生態系統、願景和策略。隨著消費者發現和購買行為進一步從傳統媒體轉向社群媒體，RISE 正在成為我們業務中更重要的一部分，影響者和聯盟行銷繼續加速成長。最近的一項統計研究估計，到 2029 年，美國網紅行銷的價值將從 60 億美元增長到約 690 億美元。我們相信，隨著我們擴大企業願景，成為世界領先的綜合美容、健康和生活方式生態系統，我們已做好充分利用這一轉變的準備。這意味著中長期來看，隨著我們進一步建立 RISE 業務部門並尋求跨業務部門的協同機會，我們將獲得更廣泛的機會。透過將我們在核心業務中近40 年的聯盟行銷經驗與RISE 業務的新能力和經驗相結合，我們看到了透過這個廣闊的美容、健康和生活方式生態系統隨著時間的推移推動企業價值的更大潛力。為了進一步實現這一擴展的願景，我們一直在審查我們業務的各個方面，並重新評估我們的資本配置方法，以投資長期成長和業務發展。這包括重新平衡我們的股息支付率，使其與行業同行更加一致或更好。此舉將提高財務靈活性，使我們能夠有效抓住即將到來的機會。對於我們的管理團隊和董事會來說，這是一個艱難的決定，我們不會掉以輕心。然而，經過廣泛分析和仔細考慮，我們相信，在我們追求長期企業系統成長願景的過程中，此舉符合所有利害關係人的最佳利益。此次資本重新分配每年將釋放約 6,500 萬美元。這將針對高潛力成長投資，短期內將相對均勻地分佈在以下三個領域。第一，加速我們的 RISE 生態系統的成長機會，該生態系統去年成長了 41%，並且正在成為整個企業中更重要的一部分。

Number two, facilitating a progressive new market expansion model for our core Nu Skin business beginning with India anticipated in 2025 and number three, furthering the build-out of our Digital First affiliate opportunity platform with an extended technology partnership with emphasis given the importance of the up of our updates to strategy and capital allocation. I want to spend a few minutes diving deeper into the areas we are now targeting for stepping up investment. I'll start with RISE, which was established back in 2018 as part of our enterprise diversification strategy raises a synergistic ecosystem of consumer technology and manufacturing companies focused on innovation within the beauty, wellness and lifestyle space. These companies synergistically support our core business and or have capabilities that provide greater growth potential to our expanding ecosystem. Vision rises, experienced healthy organic and acquisition-led growth and most of the businesses are still very early in their life cycles. In the fourth quarter, RISE revenues were up over 100% or 87%, excluding last year's beauty bio acquisition, right segments accounted for 13% of total enterprise revenue in the fourth quarter, and we anticipate this growing to 20% to 25% by 2025 with an increased investment in RISE, we plan to increase manufacturing capabilities and capacity to service Nu Skin as well as additional consumer goods and indie brands, expand technology capabilities for Maple Leaf, which is rapidly becoming a leading affiliate brand marketplace and technology provider for our other businesses and develop a creator led indie beauty brand incubator, including new and acquired brands for the incubator, we will be able to leverage the beauty bio integration and acceleration framework that we developed last year. For the past several years, we've been building the infrastructure necessary to incubate launch and support creator brands with an array of services, including product R&D, manufacturing and packaging, technology, logistics and internationalization. These additional rise investments will enable us to delve further into the influencer creator economy and has far-reaching opportunities in the beauty, wellness and lifestyle space. We are well positioned to service the creator economy and indie brand markets by leveraging our vast array of resources on our way to becoming the world's leading integrated beauty, wellness and lifestyle ecosystem.

第二，促進我們核心如新業務的漸進式新市場擴張模式，預計將於 2025 年從印度開始；第三，鑑於我們對策略和資本配置的更新。我想花幾分鐘更深入探討我們現在要加大投資的目標領域。我將從 RISE 開始，它成立於 2018 年，是我們企業多元化策略的一部分，旨在建立一個由消費技術和製造公司組成的協同生態系統，專注於美容、健康和生活方式領域的創新。這些公司協同支持我們的核心業務，或擁有為我們不斷擴大的生態系統提供更大成長潛力的能力。願景不斷提升，經歷了健康的有機成長和收購主導的成長，大多數業務仍處於生命週期的早期階段。第四季度，RISE收入成長超過100%或87%，剔除去年的美容生物收購，正確的細分市場佔第四季企業總收入的13%，我們預計這一增長至20%至25%到2025年，隨著對RISE 的投資增加，我們計劃提高製造能力和為如新以及其他消費品和獨立品牌提供服務的能力，擴大楓葉的技術能力，楓葉正在迅速成為領先的附屬品牌市場和技術提供商我們的其他業務並開發一個以創作者為主導的獨立美容品牌孵化器，包括孵化器的新品牌和收購品牌，我們將能夠利用我們去年開發的美容生物整合和加速框架。在過去的幾年裡，我們一直在建立必要的基礎設施，透過一系列服務孵化和支援創作者品牌，包括產品研發、製造和包裝、技術、物流和國際化。這些額外的投資將使我們能夠進一步深入研究影響者創造者經濟，並在美容、健康和生活方式領域擁有深遠的機會。我們處於有利地位，能夠利用我們豐富的資源，服務創作者經濟和獨立品牌市場，成為世界領先的綜合美容、健康和生活方式生態系統。

Next, new market expansion beginning with India. This vibrant country is rapidly becoming the world's fastest growing economy with 1.4 billion people, a growing middle class and the highest per capita digital and mobile adoption. We see India as a market holding great potential for us. Nu Skin has a rich history of international expansion that has fueled our growth into nearly 50 markets around the globe. We plan to reinvent the way we go to market with a progressive digital-first model, which will enable us to expand our global footprint more quickly and cost, effectively accelerating our ability to bring Nu Skin to people around the world who are seeking to look feel and live better. We will be aligning with our global sales leaders around an anticipated 2025 entry into this strategically important market at our annual team lead trip this April and third, our third area of focus is further investment in our digital first affiliate opportunity platform. We aim to provide our brand affiliates with a simpler, faster and easier way to engage in our businesses around the globe. Through our expanded partnership with emphasis, we plan to enhance our digital ecosystem, accelerate our global Equinox rollout and streamline the affiliate journey to minimize friction and accelerate growth.

接下來，新的市場擴張從印度開始。這個充滿活力的國家正迅速成為世界上成長最快的經濟體，擁有 14 億人口、不斷壯大的中產階級以及最高的人均數字和行動普及率。我們認為印度是一個對我們來說具有巨大潛力的市場。如新擁有豐富的國際擴張歷史，推動我們在全球近 50 個市場的發展。我們計劃透過漸進的數位優先模式重塑我們進入市場的方式，這將使我們能夠更快、更經濟地擴大我們的全球足跡，從而有效地加快我們將如新帶給世界各地尋求關注的人們的能力。感覺並生活得更好。我們將在今年4 月的年度團隊領導旅行中與我們的全球銷售領導者就預計2025 年進入這個具有重要戰略意義的市場進行協調，第三，我們的第三個重點領域是對我們的數字第一聯屬機會平台的進一步投資。我們的目標是為我們的品牌附屬公司提供一種更簡單、更快捷、更輕鬆的方式來參與我們在全球的業務。透過重點擴大合作夥伴關係，我們計劃增強我們的數位生態系統，加速我們的全球 Equinox 推出並簡化聯盟行銷流程，以最大程度地減少摩擦並加速成長。

So in summary, 2024 will be another year filled with transformation of our core Nu Skin business to win in the future and further our build-out of the RISE ecosystem.

總而言之，2024 年將是如新核心業務轉型的另一年，以贏得未來並進一步建立 RISE 生態系統。

Our initial outlook for 2024 reflects further macro challenges in the core lessening throughout the year, partially offset by continued double digit growth from the right segments throughout these challenging times. We remain optimistic in our future growth potential as we continue to reposition the enterprise towards becoming the world's leading integrated beauty, wellness and lifestyle ecosystem.

我們對 2024 年的初步展望反映了全年核心資源減少的進一步宏觀挑戰，但在這些充滿挑戰的時期，正確細分市場的持續兩位數成長部分抵消了這一挑戰。我們對未來的成長潛力保持樂觀，我們將繼續重新定位企業，致力於成為世界領先的綜合美容、健康和生活方式生態系統。

And with that, I'll turn the call over to James to dive deeper into our guidance and the financials games.

接下來，我將把電話轉給詹姆斯，讓他更深入地了解我們的指導和財務遊戲。

Thank you, Ryan, and thanks to all of you for joining today. I'll provide a brief Q4 and 2023 full year financial review and then give Q1 and 2024 projections. For additional details. Please visit our Investor Relations website.

謝謝瑞安，也謝謝大家今天的加入。我將提供簡短的第四季和 2023 年全年財務回顧，然後給出第一季和 2024 年的預測。如需了解更多詳情。請造訪我們的投資者關係網站。

For 2023, we generated revenue of $1.97 billion with a negative foreign currency impact of 3% or $60 million and earnings per share for the year were $0.17 or $1.85, excluding restructuring and other charges compared to $2.7 or $2.90, excluding restructuring and impairment charges. For the fourth quarter, we posted revenue of $488.6 million, which was ahead of our previous guidance range and included a negative foreign currency impact of 1% or $7.2 million. Reported earnings, which also came in slightly ahead of previous guidance, were $0.15 or $0.37, excluding restructuring and other charges compared to $1.15 or $0.89, excluding restructuring impairment charges and a favorable tax rate in Q4 2022, our gross margin was 72.1% compared to 71.7% fourth quarter. Gross margin for the core Nu Skin business was 77.4% compared to 74.9% in the prior year quarter. The 250 basis point improvement in our core business was primarily driven by the strategic decision to rebalance our product portfolio, reduced product promotions and the intentional focus on higher margin products.

2023 年，我們的收入為19.7 億美元，外匯負面影響為3%，即6,000 萬美元，當年每股收益為0.17 美元或1.85 美元（不包括重組和其他費用），而每股收益為2.7 美元或2.90 美元（不含重組和減損費用）。第四季度，我們公佈的營收為 4.886 億美元，高於我們先前的指導範圍，其中包括 1% 的負面匯率影響（即 720 萬美元）。報告收益也略高於先前的指導，為0.15 美元或0.37 美元，不包括重組和其他費用，而同期為1.15 美元或0.89 美元，不包括重組減損費用和2022 年第四季的優惠稅率，我們的毛利率為72.1%，相較之下第四季為 71.7%。如新核心業務的毛利率為 77.4%，去年同期為 74.9%。我們的核心業務實現了 250 個基點的改善，主要是由於重新平衡產品組合的策略決策、減少產品促銷以及有意關注利潤率更高的產品而推動的。

Selling expenses as a percentage of revenue decreased to 37.1% compared to 38.5% in the prior year quarter. The lower selling expenses due in large part to growth in our RISE manufacturing segment, which carries a lower selling expense for the new core Nu Skin business, selling expense was 40.8% compared to 40.5% in line with expectations. General and administrative expenses as a percentage of revenue were 29.7% compared to 24.4%. The increase percentage can largely be attributed to lower quarterly revenue levels and increased promotional campaigns set in the quarter. As previously discussed, during the fourth quarter we made the decision to street strategically reevaluate our Nu Skin core business and align our operating costs to be in line with revenue. In the fourth quarter, we incurred an initial $10 million charge in severance and made the determination to extend our restructuring and cost efficiency program through to Q2 of 2024 with an anticipated additional $15 million of restructuring charges, we expect the cost efficiency program to deliver annual savings of between $40,000 and $65 million before taxes in the core Nu Skin operating plan, excluding investments in right. We will continue to seek business efficiencies in all areas and believe these actions will help us maximize cash flows, Target, improved margins and enhanced earnings per share going forward.

銷售費用佔收入的百分比從去年同期的 38.5% 下降至 37.1%。銷售費用下降很大程度上是由於我們的RISE製造部門的成長，該部門為新核心如新業務帶來了較低的銷售費用，銷售費用為40.8%，而40.5%符合預期。一般及管理費用佔收入的比例為 29.7%，去年同期為 24.4%。成長百分比主要歸因於季度收入水準下降以及本季促銷活動的增加。如前所述，在第四季度，我們決定對如新核心業務進行策略性重新評估，並使我們的營運成本與收入保持一致。在第四季度，我們支付了1000 萬美元的初始遣散費，並決定將我們的重組和成本效率計劃延長至2024 年第二季度，預計額外支付1500 萬美元的重組費用，我們預計成本效率計劃將實現年度如新核心運營計劃（不包括權利投資）稅前節省 40,000 至 6500 萬美元。我們將繼續在所有領域尋求業務效率，並相信這些行動將有助於我們最大限度地提高現金流、目標、提高利潤率和提高每股收益。

Our operating margin for the quarter was 3.3% or 6.4%, excluding restructuring and other charges compared to 5.3% or 8.8% excluding restructuring and impairment charges in the prior year. The other income expense line reflects a $6.7 million expense compared to a $3.1 million expense in the prior year quarter.

我們本季的營業利潤率為 3.3% 或 6.4%（不包括重組和其他費用），而上一年的營業利潤率為 5.3% 或 8.8%（不包括重組和減損費用）。其他收入支出項目反映了 670 萬美元的支出，而去年同期的支出為 310 萬美元。

We generated strong cash from operations for the fourth quarter of $54 million compared to $26 million in the prior year period. This was mainly driven by focused efforts in improving existing inventory levels and tightening our supply chain. We paid $19.3 million in dividends and did not repurchase any stock. We have $162.4 million remaining on the current authorization.

我們第四季的營運產生了 5,400 萬美元的強勁現金，而去年同期為 2,600 萬美元。這主要是由於我們致力於改善現有庫存水準和收緊供應鏈。我們支付了 1930 萬美元的股息，並且沒有回購任何股票。目前的授權還剩 1.624 億美元。

Our tax rate for the quarter was 21.9% or 24.9%, excluding restructuring and impairment charges compared to negative 134.9% or negative 3.7%, excluding restructuring impairment charges in the prior year period. For the first quarter, we anticipate an elevated tax rate in the range of 60% to 70% due to rate impacts from stock awards and anticipate a projected 2024 annual tax rate of 25% to 35%. This annual rate reflects an anticipated higher global effective tax rate, primarily due to the expected geographical mix of earnings during the year and the rate impact from our stock awards in Q1, as Ryan mentioned and as part of our long-term transformational goals today, we announced an update to our capital allocation strategy, rebalancing the quarterly dividend of $0.06 per share. We remain in a strong financial position and will continue to generate healthy cash flow. This dividend change puts our overall payout ratio more in line more in line with or better than our industry peers and will provide approximately $65 million in capital that can be used to fund growth opportunities. This action also enables us to prioritize responsible debt management, actively pursue inorganic growth opportunities and enhance shareholder value through opportunistic share repurchases.

我們本季的稅率為 21.9% 或 24.9%（不包括重組和減損費用），而去年同期的稅率為負 134.9% 或負 3.7%（不包括重組減損費用）。由於股票獎勵的稅率影響，我們預計第一季的稅率將上漲 60% 至 70%，並預計 2024 年的年度稅率為 25% 至 35%。這一年稅率反映了預期更高的全球有效稅率，這主要是由於本年度收益的預期地理組合以及我們第一季股票獎勵的稅率影響，正如瑞安所提到的，也是我們今天長期轉型目標的一部分，我們宣布更新資本配置策略，重新平衡每股 0.06 美元的季度股息。我們仍保持強勁的財務狀況，並將繼續產生健康的現金流。此次股息變化使我們的整體派息率與行業同行更加一致或更好，並將提供約 6500 萬美元的資本，可用於為成長機會提供資金。這項行動也使我們能夠優先考慮負責任的債務管理，積極尋求無機成長機會，並透過機會性股票回購提高股東價值。

Shifting focus now to guidance, taking into account the aforementioned economic conditions and challenges associated with transforming our business, we are projecting 2024 revenue in the $1.73 million to 1.87 billion range. We anticipate earnings per share of $0.75 to $1.15 or adjusted earnings of $0.95 to $1.35. Our guidance assumes a negative foreign currency impact of approximately 1% and assumes a higher effective tax rate of 25% to 35%, primarily due to the expected geographic mix of earnings during the year. We are projecting first quarter revenue of $400 million to $435 million, assuming a foreign currency headwind of approximately 3%, with reported earnings per share of negative $0.07 to $0.03, which is $0 to $0.1 excluding restructuring charges.

現在將重點轉向指導，考慮到上述經濟狀況以及與業務轉型相關的挑戰，我們預計 2024 年的收入將在 173 萬至 18.7 億美元之間。我們預計每股收益為 0.75 美元至 1.15 美元，調整後收益為 0.95 美元至 1.35 美元。我們的指引假設外匯負面影響約為 1%，並假設有效稅率較高，為 25% 至 35%，這主要是由於年內預期收益的地域組合。我們預計第一季營收為 4 億至 4.35 億美元，假設外匯逆風約為 3%，報告每股收益為負 0.07 至 0.03 美元，不包括重組費用為 0 至 0.1 美元。

In closing, as we realign the Company for success by transforming our core Nu Skin business and expand our RISE ecosystem, we are structuring ourselves to increase investments in promising high-growth opportunities that will benefit all stakeholders as we implement our comprehensive enterprise vision and strategy. Our dedication to generating lasting value for the enterprise remains steadfast as we position ourselves for future growth.

最後，當我們透過轉變我們的核心業務並擴展我們的RISE 生態系統來重新調整公司以取得成功時，我們正在建立自己，以增加對有前景的高成長機會的投資，這將在我們實施全面的企業願景和策略時使所有利害關係人受益。我們堅定不移地致力於為企業創造持久價值，為未來的發展做好準備。

And with that, operator, we'll now open the call up for questions.

接線員，現在我們將開始提問。

Thank you again, ladies and gentlemen, I'd like to ask a question please press star one on your telephone. Again, to ask a question, please press star one moment first. Our first question comes from the line of Doug Lane of Water Tower Research. Your line is open.

再次感謝各位，女士們先生們，我想問一個問題，請按電話上的星號一。再次強調，要問，請先按星號鍵片刻。我們的第一個問題來自 Water Tower Research 的 Doug Lane。您的線路已開通。

Yes, hi. Good afternoon, everybody. What going on here at Orion, but let's focus on the capital allocation. It seems to be the big news here on I don't have a cash flow yet, but what was capital spending in 2023.

是的，嗨。大家下午好。Orion 發生了什麼，但讓我們專注於資本配置。這似乎是這裡的大新聞，我還沒有現金流，但 2023 年的資本支出是多少。

Yes, Doug, thanks for. Thanks for the question yet. So capital allocation and overall capital spend, James is in 2023, we're looking at?

是的，道格，謝謝。謝謝你的提問。那麼詹姆斯在 2023 年的資本配置和整體資本支出，我們正在關注什麼？

$58 million.

5800萬美元。

Yeah, $58 million.

是的，5800萬美元。

CapEx.

資本支出。

And what kind of directionally where you think that's going in 2024 for the same ROE to our gas operations.

您認為 2024 年我們的天然氣業務的淨資產收益率相同時會發生什麼方向？

No, the capital allocation is actually in our forward plan. We're estimating between $50 million and $60 million in our capital spend.

不，資本配置其實已經在我們的遠期計畫中了。我們估計我們的資本支出在 5000 萬至 6000 萬美元之間。

Okay. Okay. That's help sell them with the freed up $65 million from the dividends, we should probably be modeling in free cash positive in 2024 for correct?

好的。好的。這有助於出售它們，並從股息中釋放出 6500 萬美元，我們可能應該在 2024 年以自由現金為正數進行建模，對嗎？

Yes.

是的。

Yes, that's the plan going forward.

是的，這就是未來的計劃。

And then just to wrap it up, what would be the priorities for use of free cash flow under the new policy?

最後總結一下，新政策下自由現金流的使用優先順序是什麼？

Yes.

是的。

So I think Doug, the way, as I said in my in my remarks, we're really seeking for opportunities, are those investment opportunities? I mentioned around the rise investments, looking at India growth prospects, ad affiliate opportunity platform build out technology wise.

所以我認為道格，正如我在發言中所說，我們真正在尋找機會，這些是投資機會嗎？我提到了投資的成長，著眼於印度的成長前景，廣告聯盟行銷機會平台在技術方面的建構。

So reinvestment in the business is really priority one at this point and even to the point of not even paying down debt, just really focused on those investment opportunities in your business?

因此，在這一點上，對業務的再投資確實是第一要務，甚至到了甚至不償還債務的程度，只是真正專注於您業務中的那些投資機會？

Yes, Doug, as we as we look at the landscape of our cash position, we typically in Q1 have tighter pressures coming through Q1. But yes, as Ryan outlined, that's the capital allocation strategy and we're going after those growth opportunities, which you see significant growth in Q4 and debt. Our management of debt will go after that as well in terms of how do we manage that while we look for opportunities both inside our business and outside to grow in the future.

是的，道格，當我們審視我們的現金部位狀況時，我們通常會在第一季面臨更緊張的壓力。但是，是的，正如瑞安所概述的那樣，這就是資本配置策略，我們正在尋求這些成長機會，您將看到第四季度和債務的顯著增長。我們的債務管理也將遵循我們如何管理這一點，同時我們在業務內部和外部尋找未來成長的機會。

Okay, that makes sense. Thanks for the clarification. And just shifting gears, you report on your customers and affiliates and sales leaders, which is very helpful because your business is evolving and getting more complex, if you will, but it seems that customers are really consumers and affiliates are social media influencers to oversimplify and sales leaders are your traditional entrepreneurs, micro entrepreneurs and business builders and yet each was down 10% to 15%. Is it that those numbers tend to run in tandem or could they diverge at some point depending upon what's going on at the Company?

好吧，這是有道理的。感謝您的澄清。只需換檔，您就可以報告您的客戶、附屬機構和銷售領導者，這非常有幫助，因為您的業務正在發展並變得更加複雜（如果您願意的話），但似乎客戶實際上是消費者，而附屬機構是社群媒體影響者，過度簡化銷售領導者是傳統企業家、微型企業家和企業建立者，但均下降了 10% 至 15%。這些數字是否傾向於同時出現，或者它們是否會根據公司的情況在某個時候出現分歧？

Yes.

是的。

I mean there, they're interrelated. I mean that the important thing to note, we've pointed this out before with affiliates, you can consider our affiliates is kind of the yes, there partially socially driven, but they're more kind of the early in early out type of more flexible, engaged people. We're in a in a process of reclassifying affiliates that we do segment by segment. So each year, we've done a few of the segments. And so that's where that number flexes a little bit differently than the consumers in the US and the sales leaders, but there are relationships. And we see, for example, customers being down further than the channel over this past year in Q4 as we saw is more related to pricing pressure in the broader economy and just affordability where consumers are buying and how the sales leads or leaders are selling, whether they're selling to registered customers or more to retail customers. And so there's always going to be some mix shift between that because of how the affiliates and the sales leaders actually are selling the products. Again, if they go direct to customer through a retail model versus registered customers with us and we do both. So there's a correlation, but there's not there's not a perfect correlation.

我的意思是，它們是相互關聯的。我的意思是，需要注意的重要一點是，我們之前已經與附屬公司指出過這一點，您可以認為我們的附屬公司是一種是的，部分是社會驅動的，但他們更像是早進早出類型的更靈活、敬業的員工。我們正在對我們逐部門的附屬公司進行重新分類。所以每年，我們都會完成一些部分。因此，這個數字與美國消費者和銷售領導者的情況略有不同，但還是有關係的。例如，我們看到，去年第四季的客戶數量比通路下降得更多，因為我們看到，這與更廣泛的經濟中的定價壓力以及消費者購買的承受能力以及銷售主管或領導者的銷售方式更相關，無論他們是向註冊客戶銷售還是向零售客戶銷售更多產品。因此，由於附屬公司和銷售領導者實際銷售產品的方式不同，這之間總是會存在一些混合變化。再說一次，如果他們透過零售模式直接接觸客戶，而不是透過我們的註冊客戶，我們就會兩者兼具。所以存在相關性，但不存在不完美的相關性。

Okay. That helps me understand that it makes sense for those numbers to be directionally close.

好的。這幫助我理解這些數字在方向上接近是有意義的。

Yes, that's right.

恩，那就對了。

Yes, generally.

是的，一般來說。

That's helpful. Thanks, Ray.

這很有幫助。謝謝，雷。

Thanks, Doug.

謝謝，道格。

Thank you again, ladies and gentlemen, if you like to ask a question, please press star one on your telephone. Again to ask a question, please press star one moment. I'm showing no further questions at this time.

再次感謝各位，女士們、先生們，如果您想提問，請在電話上按一號星星。再次提問，請按星號鍵片刻。我目前沒有提出任何進一步的問題。

Ladies and gentlemen, this does conclude today's call. You are participating. You may now disconnect.

女士們先生們，今天的電話會議到此結束。你正在參與。您現在可以斷開連線。