Wednesday 30 August 2017
MFG.com named to Top 100 Great Supply Chain Partner list by SupplyChainBrain
MFG.com, the online manufacturing marketplace, has been named to SupplyChainBrain’s list of 100 Great Supply Chain Partners.
For 15 consecutive years, the Great Supply Chain Partners list has recognized service providers whose technology, logistics, transportation or consulting solutions have made a significant impact on their customers’ efficiency, customer service and overall supply chain performance.
Bo Hagler, chief executive officer, MFG.com, said, “We are very thankful to both our customers and SupplyChainBrain for this recognition. Being named to this prestigious list directly demonstrates the impact of our customer-centric approach at MFG.com and further solidifies our company’s commitment to extraordinary service.”
SupplyChainBrain gathers nominations through a six-month online poll of supply chain professionals, asking them to nominate vendors and service providers whose solutions have made a significant impact on their company.
Brad Berger, publisher, SupplyChainBrain, said, “This year’s field of nominees was abundant and very strong, hailing from all aspects of supply chain management. MFG.com should be proud to be named amongst the 100 Great!”
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source http://news.statii.co.uk/mfg-com-named-to-top-100-great-supply-chain-partner-list-by-supplychainbrain/
IBM And SAP Leverage Local Insights To Improve Store Planning
Using near real-time data from multiple sources, a new solution co-innovated by IBM and SAP is designed to help retailers address key challenges such as on-shelf product availability and demand forecasting accuracy.
The solution channels data sources such as IBM’s Metro Pulse through the SAP Cloud Platform to provide insights that retailers and CPG companies can act on almost immediately. IBM Metro Pulse provides hyperlocal data around weather, events, traffic and demographics. Trials of this cognitive technology across more than 100 stores in multiple U.S. markets improved forecasting accuracy of volatile, hard-to-forecast products by 75%.
“Through this exciting collaboration between SAP and IBM, retailers and consumer product companies today can respond with speed, precision and confidence to locally relevant events,” said Lori Mitchell-Keller, Global General Manger, Consumer Industries at SAP in a statement.
This industry-focused solution is the first plan resulting from the two companies’ digital transformation partnership, which was announced in April 2016. It is one of several currently in development, expanding on the investment IBM has made in retail and CPG with SAP S/4HANA industry solutions.
For Full Story, Please click here.
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source http://news.statii.co.uk/ibm-and-sap-leverage-local-insights-to-improve-store-planning/
Tuesday 29 August 2017
Monday 28 August 2017
Friday 25 August 2017
Pack Your Company DNA in The ERP Suitcase and Conquer The World!
ERP – a powerful tool for internationalization of companies!
Startups often have an international approach from the very beginning when building their value chain. This was not the case 20 years ago, when the established growth-model was “Establish initially a solid domestic presence, followed by a cautious export to neighboring countries, and if successful then maybe an establishment of subsidiaries abroad.”
THE GLOBAL OPPORTUNITIES AND CHALLENGES
Open borders, removal of custom barriers, much better and cheaper infrastructure and communication, the internet has made the world much more accessible, much easier to reach and easier to integrate the company.
Generally, it is indeed very positive that the world is now so open and accessible, with endless amble opportunities for startups as well as for mature companies. This “international highway” provides access to new markets, it provides a basis for the establishment of production and services abroad that might be more favorable, cheaper, better or closer to your customers than your domestic set-up.
INCREASED COMPETITION
Some of the challenges with internationalization or globalization are increased competition in the market where you sell your products or services also, on the labor you employ. Many companies are challenged in their own market and have recognized the need to implement an internationalization process, if they are to survive long term. But how do you go about such a process?
VISIBILITY
Another challenge, is the high visibility created by the open borders and the intensive information sharing that takes place today. For good and bad it makes decision-makers far more knowledgeable, than before. The professionalization of markets, increased supply, changes in the competitive pattern are all conditions that make the ability to find and use information key.
KEY ELEMENTS IN COMPANY’S INTERNATIONALIZATION
There is nothing to suggest that the above trends will diminish, only an indication that this development will escalate. Structure along with the ability to rapidly adapt, are also key aspects to take into consideration. This makes the skill to find, process and use information central and business critical!
It will create another type of “security” by making the company agile and able to respond and react adequately to a changing world. By having structure, you will be able to make quick changeovers and enable the company to react immediately to changes and keep your competitive advantage!
ERP – THE BACKBONE OF THE COMPANY’S INTERNATIONALIZATION
This is where a modern ERP system comes in play as it is designed to create the structure business critical company information, consolidate it and make it readily available to the right people at the right time.
It is also the framework that embraces the company’s infrastructure, its business model as well as “best practice”. It integrates or frequently also contain BI, CRM, Supply Chain Management, Big Data Management, WEB shop etc. and is the backbone of the company’s operations and transactions.
ERP is also a great facilitator of the company’s internationalization process if you choose the right ERP system and if you design and apply it to support the company’s international ambitions. “The right ERP system” in an international context is a system built for international use and therefore includes localizations (language and local regulatory requirements) in the countries where the company expects to establish themselves. It is also important that the ERP system allows for integration of local payroll modules, banking modules and that it can support local business practice.
For the corporate HQ, it is also important that the ERP system enables consolidation of data so that consolidated performance can be monitored and are readily available.
So regardless of whether you are a startup or a mature company who have acquired a new company abroad, you can with the right ERP solution immediately take your entire enterprise infrastructure , business model and best practice with you and deploy it abroad . It reduces risk and makes establishment abroad lean and efficient when you can bring and immediately implement your own DNA with you. It reduces cost and saves the company a lot of time.
So, choose an ERP system designed for international business, because this is most likely the “play-ground” on which you have to play in the future. And make sure that you apply an adequate account schedule and reporting routines that can support and embrace future international establishments.
By investing time and money in a good international ERP system you have a tool on the shelf that can be put into use immediately when a new international opportunity presents itself. If you furthermore maintain the solution with the upgrades provided by the manufacturer, you have a long-term framework that always contains the latest functionality, business practices and regulatory requirements at home as well as abroad!
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source http://news.statii.co.uk/pack-your-company-dna-in-the-erp-suitcase-and-conquer-the-world/
How To Better Manage The Challenges of Software Applications
Managing complexity, aligning IT with the business, and enabling agility are top priorities for CIOs who must deliver on software development projects. So, how can software applications be managed more efficiently? Introducing Integrated Application Lifecycle Management (ALM) within your organization helps you plan, manage, and execute the long-term maintenance of a software solution – from both a business and IT perspective. It helps companies manage resources spent on an application efficiently, by addressing the challenges.
FOUR KEY CHALLENGES OF APPLICATION MANAGEMENT
Management issues that are commonly faced across most international organization projects include;
- Lack of visibility into project status
- Ineffective team communication across functions and borders
- Balancing business demands with project risk
- Unpredictable delivery times and quality assurance
Addressing these challenges requires special integrated management principles that promote attention to detail, good visibility, effective communication, and business demands that are balanced with project risks. Integrated ALM is the solution.
THE LIFECYCLE OF AN APPLICATION & THE ELEMENTS OF ALM
An application’s lifecycle is the entire time during which an organization spends money developing, governing, and maintaining a given computer program. Integrated ALM helps companies manage resources spent on developing and managing an application more efficiently, because all the tools and stakeholders are synchronized. Everyone knows who, what, when, where, and why changes were made ‒ resulting in increased integration between IT and the business.
HOW CAN YOU SOLVE THE KEY CHALLENGES?
Integrated ALM proactively manages the elements that typically disrupt processes. It transforms customized software into a standardized solution, offering a framework for significant business benefits.
Better collaboration
Increased collaboration between business and IT means better alignment of business and IT.
Shared best practices and process learning results in shorter development cycles and increased productivity.
Increased efficiency
Through improved project management, there’s less scope creep. Strengthened integration means that the IT department increases its ability to build and adapt applications that support dynamically changing business requirements, rapidly.
Improved quality and decision-making
Quality improvements mean that the final application meets the service-quality requirements of your customers. Increased accountability enables stricter compliance with governance initiatives.
The post How To Better Manage The Challenges of Software Applications appeared first on Statii News.
source http://news.statii.co.uk/how-to-better-manage-the-challenges-of-software-applications/
Thursday 24 August 2017
Wednesday 23 August 2017
Employer demand for graduates remains high
This year’s graduates are heading into a robust recruitment market, with eight out of ten employers (79%) taking on new recruits in 2017/2018, a study by HR website XpertHR shows.
But it also reveals that starting salaries have been frozen for the past nine years, with data from previous surveys in the annual series showing no change since 2008/2009.
Key findings from the survey of 186 public and private sector employers show that:
- Employers are typically taking on as many or more graduates than in previous years;
- Median starting salaries are £24,000; and
- Nine out of ten (87.1%) are having problems finding suitable graduate recruits.
The survey shows that nearly half (49%) of organisations are aiming to recruit the same number of graduates as they did last year, with almost as many (44.2%) taking on more; just 6.8% are planning to decrease the number of graduate recruits.
Large employers – those with 1,000 or more employees – are most likely to be cutting back, with 12.1% aiming to take on fewer graduates than last year.
Despite the lack of movement in starting pay, the overall range of salaries on offer is wide, running from £15,000 at the lower end to £48,000 at the top of the range. The middle half of all salaries (the interquartile range) runs from £20,000 to £26,000.
Not surprisingly, the best pay rates are on offer at the largest organisations and in the private sector.
By organisation size, the survey found median starting salaries of:
- £22,000 at organisations with fewer than 250 employees;
- £23,000 at those with 250 to 999 employees; and
- £25,000 at those with 1,000 or more employees.
Despite their obvious enthusiasm to take on recent graduates, many employers were critical of the calibre of applicants, with more than two-fifths (44.2%) complaining about the poor quality of knowledge, skills and experience on offer.
One respondent commented: “Despite the high volume of graduates, the level of genuine talent is low.”
The perception that candidates were ill-equipped for the task is particularly acute in the manufacturing sector, where more than half (54.1%) of respondents identified it as an issue.
However, not all comments were negative. One respondent commented: “Graduates provide a higher, more consistent return to a business both short term and long term. Their application is great – conscientious and professional with a desire to learn more, so why would we not want to hire more?”
XpertHR managing editor for pay and HR practice Sheila Attwood said: “There is good news for recent graduates in our survey. Employers are generally keen to take them on and recognise the value that they have to offer. But the evidence does show that pay has not kept pace with rising prices over recent years, and in common with other employees, they will feel the squeeze. It is also interesting to note that employers who report the greatest difficulties recruiting typically also pay below the median. In contrast, the median graduate starting salary on offer from the minority of employers that say they have not experienced any issues with graduate recruitment is in line with the survey median of £24,000.”
The annual XpertHR graduate recruitment survey draws on data from 186 organisations which together employ a total of 387,269 people.
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Tuesday 22 August 2017
Friday 18 August 2017
Wednesday 16 August 2017
Sigma 3 implements IFS Applications 9 to support strong business growth
IFS, the global enterprise applications company, has announced that Sigma 3, the kitchen manufacturer and retailer, will implement IFS Applications 9 to improve planning and support business growth.
The implementation will be carried out by systems integration specialist Cooper Software, one of IFS’s authorised channel and services partners in the UK.
Operating from Llantrisant in South Wales since 1975, Sigma 3 is a market leading designer, manufacturer, and retailer of high-quality kitchens and bedrooms, with eight stores and a network of third-party retailers. Over the past five years, Sigma 3 has doubled its revenue, and has plans for further expansion and growth.
With production tools incorporating over 20,000 different cabinet configurations alone, Sigma 3’s IT infrastructure must deal with a high degree of complexity through its manufacturing, sales ordering, and finance systems. The company’s intricate and distributed IT architecture, coupled with its rapid growth, meant Sigma 3 needed to implement a single system that could support its growth over the next ten years. With IFS Applications 9, Sigma 3 will have a highly configurable and scalable, consolidated enterprise application suite, which will enable the business to deal confidently with its manufacturing and assembling processes.
Cooper Software was selected by Sigma 3 to implement the project, which commenced in March 2017. Cooper Software will provide the company with a dedicated project management team as well as functional and technical consulting support in order to facilitate the integration, set up and configuration of IFS Applicatons 9. Furthermore, the company will give Sigma 3 access to its dedicated support desk, providing an additional level of support to the business throughout the implementation process and beyond.
“At the moment, we have a number of systems, including a bespoke manufacturing and sales ordering system, and a separate finance package. These systems have served us well, however our business is outgrowing them,” said Chris Toozer, Finance Director at Sigma 3. “Throughout our search for the efficiency gains that one unified system would bring, IFS and Cooper Software demonstrated that IFS Applications 9 would be a perfect fit to deal with our complicated manufacturing and assembling processes. This is not just an implementation, this will affect our entire business, and we’re going into this fully committed. We look forward to working very closely with IFS and Cooper Software once the project begins.”
Frank Cooper, Managing Director at Cooper Software, said, “As we learned about Sigma 3’s business, we knew that IFS would be a good fit—especially with our understanding of the complex nature of the manufacturing industry. IFS Applications 9 has a flexible, open architecture that enables users to configure the product and adapt it to their business. This will ensure Sigma 3 are able to get exactly what they need from the solution to meet the individual challenges of their business. We have delivered many IFS implementation projects, 15 in the past year alone, and as a result, we have the knowledge and experience required to really understand what is required to deliver a robust solution, on time and on budget. We’ve really enjoyed working with Sigma 3 so far, and are looking forward to starting this project.”
Antony Bourne, Global Industry Director for Manufacturing at IFS added, “IFS works extensively in the manufacturing industry and we are delighted that, Sigma 3 has chosen to replace its existing enterprise application suite with IFS Applications 9. Sigma 3 will be making full use of the modules within the IFS package, including manufacturing, payroll, finance and CRM. IFS Applications 9 will provide Sigma 3 with greater visibility and transparency into performance and financial reporting, as well as an increase in productivity due to the efficiency gains of a single integrated system.”
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source http://news.statii.co.uk/sigma-3-implements-ifs-applications-9-to-support-strong-business-growth/
The Industrial Internet 2.0: driving profitability
By Jason Dies, President, Document Messaging Technologies, Pitney Bowes.
From toasters to dog collars, thermostats to hair brushes, our hyperconnected world is transforming the way we live.
By 2025, there will be more than 82 billion IoT-connected endpoints, according to IDC1. Take the smart fridge, probably one of the connected Internet’s earliest innovations. Now widely available, many of these have internal cameras which take a photo of your fridge’s contents every time the door closes, so you can see what you need to stock up from the office. You can use an app to create a shopping list. You can listen to music or watch TV through your appliance, and integrate it with smart Bluetooth speakers. It’s fun, it’s great for household management, and – let’s face it – it will really impress your friends.
The Industrial Internet – the wiser older brother to the IoT
The Industrial Internet is the more sensible older brother to the Internet of Things, although it’s just as gamechanging, innovative and exciting. The Industrial Internet takes the Internet of Things and turbocharges it.
Across industry sectors from manufacturing to agriculture, aerospace to transportation, it brings together powerful machines, smart processes, skilled people and advanced analytics, connecting them across a global network. The Industrial Internet fuels the development of next-generation devices and technologies, and facilitates far-reaching change with a huge potential impact on society – more powerful engines, safer cars, better wind turbines creating cleaner energy. And it is built on data.
The fourth Industrial Revolution
The more connected we become, the more data we generate. This is particularly true in an industrial environment in which huge volumes of data are produced and analytics extracted – the result of fitting sensors onto products and equipment. A sensor is a remarkable feat of engineering, and has become the foundation on which the Industrial Internet is built.
Mining this data for key insights – and acting on those insights – is transforming businesses, creating new opportunities and optimising operations. Organisations can:
- Deliver an enhanced, differentiated customer experience
- Drive growth in productivity
- Boost operational excellence through intelligent operations
- Improve worker safety
- Produce real-time analysis
- Enhance efficiency
- Overhaul processes
- Generate decisions based on real-time intelligence
- Improve visibility and transparency across the business
- Accelerate innovation and product development cycles
- Minimise risk through data-driven decision-making
- Protect against fraud and
- Drive compliance
Now, businesses have the potential to shift gears, moving their organisations from enhancing their operations with the Industrial Internet, to diversifying revenue streams. This exciting next stage of the Industrial Internet, coined as the fourth Industrial Revolution or the Industrial Internet 2.0, will be disruptive and transformative, as businesses use the industrial internet as a springboard to create new revenue opportunities.
Unlocking value from new revenue streams
Today’s agile businesses are regenerating themselves, seeking new ways of creating revenue. Think of petrol stations pairing up with supermarket chains; and book shops selling toys, coffee and cakes. Unlocking value from an organisation’s data creates crucial new revenue streams, with minimal risk and needing no major capital investment: the information is to hand, it’s just a matter of extracting from it meaningful insights – and acting on them, in real-time. Data has become a corporate asset, often cited as ‘the new oil’, generating rewards for those who maximise its untapped potential.
Gartner, Inc calls the monetising of data ‘infonomics’. The global analyst firm states, “Monetizing information is part of a growing demand for infonomics, or giving economic significance to information. In fact, we estimate that 80% of successful CDOs will have value creation or revenue generation as their Number 1 priority through 2021, up from less than 50% in 2016. Infonomics provides the framework businesses need to monetize, manage, and measure information as a real asset, thereby improving its benefits to the organization”2.
The shift towards outcomes generating income
Access to in-depth, real-time industrial analytics enables organisations to integrate an outcome- based approach to their business models, so businesses will shift from product-led organisations to service-led companies.The ability to forecast results with accuracy is a very strong business proposition. A report from the World Economic Forum states, “In recent years, pressure has been mounting for manufacturers to look downstream to uncover new value creation opportunities by helping customers use their products to meet specific outcomes, such as optimizing transportation of people across long distances, increasing crop yield and providing lighting only when it is needed”. The report continues, “Such outcomes may range from guaranteed machine uptimes on factory floors, to actual amounts of energy savings in commercial buildings, to guaranteed crop yields from a specific parcel of farmland”3.
Guaranteed outcomes are immensely powerful. They can be packaged and sold ‘as a service’, improving profitability by:
- removing guesswork and assumptions from forecasting, enabling accurate forecasting of trends and behaviours
- achieving operational excellence through predictive maintenance, capacity planning and performance optimisation
- boosting service levels
- Creating a truly differentiated customer experience
The Industrial Internet is still at a fairly early stage of adoption, but is accelerating rapidly, showing huge potential: Accenture forecast that it could add $14.2 trillion to 20 of the world’s major economies over the next 15 years4. 84% of respondents in the Accenture report felt the Industrial Internet would generate new, service-based income streams, but only 73% felt their companies were making progress in this area.
For many businesses, optimising their operations is the most compelling reason for rolling out the Industrial Internet. Having the power to facilitate predictive maintenance, network optimisation, demand forecasting and capacity planning is gamechanging.
Add to this the opportunity to generate revenue and become a service-led business, and the vast potential of the Industrial Internet begins to emerge. It’s the Industrial Internet 2.0, and has the power to transform the industrial landscape as we know it.
1 Source: IDC Market Forecast Worldwide Internet of Things Installed Base by Connectivity Forecast, 2017–2021
2 Smarter with Gartner, Keys to success for chief data officers, February 17, 2017, http://www.gartner.com/smarterwithgartner/keys-to-success-for-chief-data-officers/
3 Source: World Economic Forum in collaboration with Accenture – Industrial Internet of Things, Unleashing the Potential of Connected Products and Services.
4 Source: Accenture report cited in The Telegraph
The post The Industrial Internet 2.0: driving profitability appeared first on Statii News.
source http://news.statii.co.uk/the-industrial-internet-2-0-driving-profitability/
Tuesday 15 August 2017
Monday 14 August 2017
Friday 11 August 2017
Thursday 10 August 2017
NYC Health’s ERP System to Bring Business Ops to Digital Age
NYC Health + Hospitals plans to implement an enterprise resource planning (ERP) system to digitize business operations while saving the system $65 million.
August 08, 2017 – From payroll and workload management to orders and purchasing, health systems manage a myriad of back-end business operations, using a combination of automated systems as well as manual processes associated with each function.
The web of disparate systems and processes may leave health systems struggling to evaluate their financial performance in a timely manner. However, NYC Health + Hospitals recently announced its solution to inefficient business operations.
The largest municipal health system in the country will eliminate manual processes and standardize healthcare supply chain management, payroll, time-keeping, budget, and a slew of other business functions by installing a common PeopleSoft enterprise resource planning (ERP) solution across its 11 hospitals.
“Financial performance overall will improve because we are going to get all of the financial data into one central system, allowing us to get reports in a much timelier manner,” he said. “It will be a click of a button to get reports, such as payer information or revenue-generated costs associated with services, whereas today it takes quite a few people to cobble data together from four different systems to get that same information.”
After EHR Adoption, Revenue Cycle Technology Modernization Begins
Like many other health systems and hospitals, NYC Health + Hospitals relies on four separate systems to manage several business operations.
An ERP tool will replace the four systems and allow the health system to access an integrated view of back-end business processes, including payroll, orders and purchasing, workload forecasting and management, customer services, and accounting.
While ERP solutions are not a new product in the healthcare industry, adoption is low among hospitals. Only 27 percent of hospitals have implemented an ERP solution, according to recent data from Definitive Healthcare.
Instead, hospitals and health systems are opting to use a combination of revenue cycle and business intelligence tools for business operations, with an average of 3.3 implementations per care site.
But using a combination of systems to gather and analyze performance data prevented NYC Health + Hospitals from getting a good handle on financial reports, Guido explained.
Preparing the Healthcare Revenue Cycle for Value-Based Care
“The new ERP system will provide detailed profit and loss reports (P&Ls) in almost real-time, giving us the ability to compare departmental P&Ls from a granular level using revenue, cost, and payer and billing from a single system throughout NYC Health + Hospitals,” he stated.
The ERP solution will also eliminate several manual approval processes currently in place at the health system.
“It will be a click of a button to get reports…whereas today it takes quite a few people to cobble data together from four different systems to get that same information.”
“Most of our procurements were done by paper with manual approvals,” he elaborated. “This system actually streamlines that process electronically. Our payroll and time capture system is done on paper timesheets right now, and that’s for every one of our resources throughout our enterprise. What the ERP system does is eliminate all of that manual process from a time capture standpoint and put it in electronically.”
“Our business processes really needed to be strengthened and with the ERP system, it actually has the controls in the system itself for approval processes and budget control,” he continued. “It allows us to put controls in place from an operational standpoint.”
How Business Intelligence, CDI Focus Sharpens Revenue Cycle
With ERP implementation, Guido not only expects the health system to gain clearer insight into its financial performance, but increase efficiencies in healthcare supply chain management processes.
Each department within the health system manages their own budget and with the ERP solution, all controls and approvals for budget operation will be electronic. Ordering and purchasing will also become streamlined with online ordering through the solution.
With healthcare supply chain management data in one system, each department should be able to conveniently access inventory information. Through the ERP system, when inventory is delivered, it will automatically be scanned and inventory data will be tied to the appropriate requisitioner and budget.
To complement healthcare supply chain efficiencies in the ERP tool, NYC Health + Hospitals also plans to implement an automated inventory management system.
“From an inventory management standpoint, we will install something called a ‘Blue Bin’ over the life of this project that actually allows us to do inventory management on a much more effective scale,” Guido remarked. “Instead of doing manual inventory, the ‘Blue Bin’ system will allow us to keep track based on weight for certain products, and will allow us to reorder when products are needed, instead of having a large supply of inventory.”
The ERP implementation project should also allow the health system to better connect clinical care with the revenue it generates, he added.
“The ERP system is a central repository for all incoming information,” he said. “If you look at clinical documentation and ICD-10 or how we code the clinical services, we could now start matching that with the revenue coming in, based on the services, and manage that piece much more effectively.”
In total, NYC Health + Hospital leaders expect the solution to save $65 million over the next five years as the health system realizes business operation efficiencies and avoids expenses related to running four separate systems.
“Standardizing processes across our system from a revenue cycle standpoint is critical.”
To implement the new system, NYC Health + Hospitals plans to gradually install the ERP tool across its hospitals, starting with two facilities in July 2017.
“We started deploying in NYC Health + Hospitals/Queens and NYC Health + Hospitals/Lincoln,” Guido explained. “Those are the first two facilities where we implemented supply chain changes because of their capabilities from a technical standpoint using in-health scanners and things like that. Their maturity in this supply chain work also was a determining factor for us.”
“Every two months, two additional acute care facilities plus their clinics will go live with the solution,” he added.
By using a phased-in approach to ERP implementation, the health system aims to avoid potential disruptions that could threaten patient care as well as financial performance.
“We are being truly aggressive with it, but obviously we want them to do it in an approach that is not disruptive to the whole environment, and in a controlled manner,” he stated. “The two facilities allow us to manage it, make sure we train everyone on the system and make sure we have support during those go-lives.”
Ensuring each facility has access to appropriate support during the implementation process is also key to preventing clinical and financial issues. To boost support, the health system chose certain staff to become experts with the tool.
“We took some of the people within the facilities and made them what we call ‘super-users,’” he stated. “They had much more intense training than everyone else. Each one of the facilities, based on the function, has two or three super-users, and we have support at each of the facilities for three weeks before and three weeks after go-live, just to make sure everyone is comfortable with the system before we move the support to the next facility.”
With the additional support, NYC Health + Hospitals anticipates the ERP implementation project to finish in the summer of 2018, right around the scheduled launch date of another digital transformation initiative. The health system is currently in the process of installing a healthcare revenue cycle management solution from Epic Systems.
“We are the largest public healthcare system in the nation and we really need to manage our revenue cycle in a much more effective manner.”
“The Epic revenue cycle project just got approved in May and was approved by the health system’s board of directors,” Guido said. “Right now, we are going through what I’ll call our discovery phase, as well as starting to get some of the critical components built out within Epic.”
Like the ERP tool, the health system intends for the revenue cycle management application to bring business operations into the digital era.
“It will allow us to eliminate a lot of the manual processes that we have in place right now—part of our digital transformation,” he stated. “We are the largest public healthcare system in the nation and we really need to manage our revenue cycle in a much more effective manner.”
The revenue cycle management system will also allow the health system to standardize business practices across its 11 hospitals and over 70 community-based facilities.
“Standardizing processes across our system from a revenue cycle standpoint is critical,” he continued. “Having an integrated system from a clinical and financial standpoint, will allow us to streamline our business processes for both clinical and revenue cycle considerations.”
The Epic revenue cycle management system is slated to save NYC Health + Hospitals up to $142 million based on 2016 patient volume. Leaders also expect the system to advance clinical documentation, reduce claim denials, and speed up claims reimbursement times.
Similar to ERP’s gradual implementation plan, the health system will invest $289 million over the next five years to implement the Epic solution. Leaders anticipate the system to launch by the fourth quarter of 2018. Although, the project is not slated to be completely finished until the end of 2020.
Guido remarked that the ERP and Epic revenue cycle management systems should be able to communicate data. As part of its digital transformation, the health system intends for all its business and clinical tools to provide an integrated view into both the clinical and revenue cycle aspects of the system.
NYC Health + Hospital’s digital transformation may have started over a year and a half ago with an Epic EHR system launch, but the health system’s recent focus has been on automating its revenue cycle management and financial functions.
While the health system plans to continue to strengthen its business operations using technology, Guido stated that its next target will be to align the system with value-based purchasing.
“We want to look at value-based purchasing and how we actually tie the financials into that, along with the payers,” he stated. “Those will be some of the tools we will be implementing next.”
The post NYC Health’s ERP System to Bring Business Ops to Digital Age appeared first on Statii News.
source http://news.statii.co.uk/nyc-healths-erp-system-to-bring-business-ops-to-digital-age/
Nature’s Sunshine Products Reports Second Quarter 2017 Financial Results
- Second quarter net sales of $81.3 million were down 9.0% year-over-year
- Net loss of $0.2 million attributable to common shareholders, or $0.01 per diluted common share during the second quarter
- Second quarter Adjusted EBITDA of $3.1 million
LEHI, Utah, Aug. 08, 2017 (GLOBE NEWSWIRE) — Nature’s Sunshine Products, Inc. (NASDAQ:NATR), a leading natural health and wellness company engaged in the manufacture and direct selling of nutritional and personal care products, today reported its financial results for the second quarter ended June 30, 2017.
Management Commentary
“Second quarter financial results were negatively impacted by disruptions associated with the implementation of the Company’s Oracle ERP system and the incremental costs of the system, as well as continued pressure in Korea,” commented Gregory L. Probert, Chairman and Chief Executive Officer. “The ERP implementation primarily impacted sales in North America and we are working to address the issues. While we are disappointed that sales and profits have been impacted during the initial phase of implementation, I am confident that the long-term benefits of the enhanced ERP system will be evident over the coming years. In Korea, the combination of geopolitical and economic challenges and lower distributor engagement have impacted business activity. We are focused on activities to enhance distributor engagement and improve sales trends.”
Mr. Probert continued, “We are pleased with the sequential growth in China during the second quarter. Following the receipt of our China direct selling license in May, we progressed through the initial steps following licensure and saw a positive impact on our sales. While it remains early in the process, we are now in a position to expand our sales efforts and look for further sequential growth as our direct selling efforts build in this key growth market. As we expand our efforts in China, we will focus on re-energizing NSP Americas revenue following the disruption encountered during the second quarter and work to enhance distributor business activity in Korea.”
Second Quarter 2017 Financial Highlights
- Net sales of $81.3 million decreased 9.0% compared to $89.4 million in the second quarter of 2016. On a local currency basis, net sales decreased 8.9% as compared to the second quarter of 2016. NSP Russia, Central and Eastern Europe net sales increased approximately 6.3 percent compared to the same period in 2016. NSP Americas net sales decreased approximately 11.9 percent compared to the same period in 2016 (or 11.5 percent in local currencies). Synergy WorldWide net sales decreased approximately 8.0 percent compared to the same period in 2016 (or 8.2 percent in local currencies). China and New Markets net sales decreased approximately 8.6 percent compared to the same period in 2016. Net sales were impacted by $0.1 million of unfavorable foreign currency exchange rate fluctuations.The Company began the initial implementation of its Oracle ERP system on April 2, 2017, for the Company’s NSP Americas segment as well other corporate operations. The implementation of Oracle ERP negatively impacted net sales and profitability during the second quarter of 2017, primarily by causing wait times for calls into the Company’s call center to be longer than usual and by causing difficulties within the Company’s on-line product ordering system. The Company is addressing these issues and other issues relating to the implementation of the Oracle ERP system. The Company anticipates that the implementation of the Oracle ERP system may continue to negatively impact net sales and profitability throughout the remainder of 2017.
In the second quarter of 2016, the Company began making pre-opening product sales through Hong Kong while awaiting its direct selling license in China. During the second quarter of 2017, the Company received its direct selling license in China, which allows the Company to expand its business scope in China to include direct selling activities.
- Net loss attributable to common shareholders was $0.2 million, or $0.01 per diluted common share, compared to net income of $2.6 million attributable to common shareholders, or $0.14 per diluted common share, in the second quarter of 2016.
- The Company’s net loss in China attributable to common shareholders was approximately $0.06 per share.
- Adjusted EBITDA was $3.1 million, compared to $6.2 million in the second quarter of 2016. Adjusted EBITDA, which is a non-GAAP financial measure, is defined here as net income/loss from continuing operations before income taxes, depreciation, amortization, share-based compensation expense and other income/loss.
First Six Months of 2017 Financial Highlights
- Net sales of $164.4 million decreased 4.3%, compared to $171.8 million in 2016. On a local currency basis, net sales decreased 4.4% compared to 2016. NSP Russia, Central and Eastern Europe net sales increased approximately 13.1 percent compared to the same period in 2016. China and New Markets net sales increased approximately 32.2 percent compared to the same period in 2016. NSP Americas net sales decreased approximately 6.5 percent compared to the same period in 2016 (or 6.3 percent in local currencies). Synergy WorldWide net sales decreased approximately 8.2 percent compared to the same period in 2016 (or 8.9 percent in local currencies). A modest overall weakening of the U.S. dollar versus local currencies resulted in an approximate 0.2 percent or $0.3 million increase of its net sales during the quarter.
- Net income attributable to common shareholders was $2.0 million, or $0.10 per diluted common share, compared to $4.6 million, or $0.24 per diluted common share, in 2016.
- The Company’s net loss in China attributable to common shareholders was approximately $0.14 per share.
- Adjusted EBITDA was $7.4 million compared to $10.4 million in 2016.
Second Quarter 2017 and 2016 Regional Sales by Operating Segment
| Net Sales by Operating Segment | |||||||||||||||||
| Three Months Ended June 30, 2017 |
Three Months Ended June 30, 2016 |
Percent Change |
Impact of Currency Exchange |
Percent Change Excluding Impact of Currency |
|||||||||||||
| NSP Americas: | |||||||||||||||||
| NSP North America | $ | 33,190 | $ | 37,439 | (11.3 | )% | $ | (117 | ) | (11.0 | )% | ||||||
| NSP Latin America | 6,231 | 7,286 | (14.5 | )% | (37 | ) | (14.0 | )% | |||||||||
| 39,421 | 44,725 | (11.9 | )% | (154 | ) | (11.5 | )% | ||||||||||
| NSP Russia, Central and Eastern Europe | 6,662 | 6,269 | 6.3 | % | 12 | 6.1 | % | ||||||||||
| Synergy WorldWide: | |||||||||||||||||
| Synergy Asia Pacific | 21,271 | 23,397 | (9.1 | )% | 217 | (10.0 | )% | ||||||||||
| Synergy Europe | 6,097 | 6,738 | (9.5 | )% | (165 | ) | (7.1 | )% | |||||||||
| Synergy North America | 2,995 | 2,878 | 4.1 | % | — | 4.1 | % | ||||||||||
| 30,363 | 33,013 | (8.0 | )% | 52 | (8.2 | )% | |||||||||||
| China and New Markets | 4,898 | 5,359 | (8.6 | )% | — | (8.6 | )% | ||||||||||
| $ | 81,344 | $ | 89,366 | (9.0 | )% | $ | (90 | ) | (8.9 | )% | |||||||
First Six Months of 2017 and 2016 Regional Sales by Operating Segment
| Net Sales by Operating Segment | |||||||||||||||||
| Six Months Ended June 30, 2017 |
Six Months Ended June 30, 2016 |
Percent Change |
Impact of Currency Exchange |
Percent Change Excluding Impact of Currency |
|||||||||||||
| NSP Americas: | |||||||||||||||||
| NSP North America | $ | 71,236 | $ | 75,745 | (6.0 | )% | $ | (21 | ) | (5.9 | )% | ||||||
| NSP Latin America | 12,830 | 14,163 | (9.4 | )% | (121 | ) | (8.6 | )% | |||||||||
| 84,066 | 89,908 | (6.5 | )% | (142 | ) | (6.3 | )% | ||||||||||
| NSP Russia, Central and Eastern Europe | 14,269 | 12,621 | 13.1 | % | (17 | ) | 13.2 | % | |||||||||
| Synergy WorldWide: | |||||||||||||||||
| Synergy Asia Pacific | 40,052 | 44,213 | (9.4 | )% | 810 | (11.2 | )% | ||||||||||
| Synergy Europe | 12,022 | 12,994 | (7.5 | )% | (380 | ) | (4.6 | )% | |||||||||
| Synergy North America | 5,602 | 5,654 | (0.9 | )% | — | (0.9 | )% | ||||||||||
| 57,676 | 62,861 | (8.2 | )% | 430 | (8.9 | )% | |||||||||||
| China and New Markets | $ | 8,431 | $ | 6,378 | 32.2 | % | $ | — | 32.2 | % | |||||||
| $ | 164,442 | $ | 171,768 | (4.3 | )% | $ | 271 | (4.4 | )% | ||||||||
Active Distributors and Customers by Segment (1)
| 2017 | 2016 | |||||||||||
| Distributors & Customers |
Managers | Distributors & Customers |
Managers | |||||||||
| NSP Americas | 105,500 | 6,400 | 129,700 | 7,000 | ||||||||
| NSP Russia, Central and Eastern Europe | 60,000 | 2,700 | 62,600 | 2,400 | ||||||||
| Synergy WorldWide | 49,000 | 4,100 | 56,600 | 3,800 | ||||||||
| Total | 214,500 | 13,200 | 248,900 | 13,200 | ||||||||
(1) Active Distributors and customers include Nature’s Sunshine Products’ independent Distributors and customers who have purchased products directly from the Company for resale and/or personal consumption during the previous three months ended as of the date indicated. Total Managers, Distributors and Customers, which include those who have made a purchase in the last twelve months, was 516,000 as of June 30, 2017.
In China, the Company does not sell its products through Managers and Distributors, but rather through independent service providers who are compensated for marketing, sales support, and other services.
Cash Flow and Balance Sheet Highlights
- Net cash used by operating activities was $0.7 million for the six months ended June 30, 2017, as compared to $6.4 million provided by operating activities for the six months ended June 30, 2016.
- Total assets on June 30, 2017 were $208.6 million, compared to $205.6 million on December 31, 2016.
Conference Call
Nature’s Sunshine Products will host a conference call to discuss its second quarter 2017 results on August 8, 2017 at 5:30 PM Eastern Time. The toll-free dial-in number for callers in the U.S. and Canada is 1-877-423-9813, conference ID: 13668190. International callers can dial 1-201-689-8573, conference ID: 13668190. A replay will be available from August 8, 2017 at 8:30 PM Eastern Time through August 22, 2017 at 11:59 PM Eastern Time by dialing 1-844-512-2921 (U.S. and Canada) or 1-412-317-6671 (International), replay PIN: 13668190. The call will also be webcast live and will be available on the Investors section of Nature’s Sunshine Products’ website at www.naturessunshine.com for 90 days.
About Nature’s Sunshine Products
Nature’s Sunshine Products (NASDAQ:NATR), a leading natural health and wellness company, markets and distributes nutritional and personal care products through a global direct sales force of approximately 516,000 independent Managers, Distributors and Customers in more than 40 countries. Nature’s Sunshine manufactures most of its products through its own state-of-the-art facilities to ensure its products continue to set the standard for the highest quality, safety and efficacy on the market today. The Company has four reportable business segments that are divided based on the characteristics of their Distributor base, similarities in compensation plans, as well as the internal organization of NSP’s officers and their responsibilities (NSP Americas; NSP Russia, Central and Eastern Europe; Synergy WorldWide; and China and New Markets). The Company also supports health and wellness for children around the world through its partnership with the Sunshine Heroes Foundation. Additional information about the Company can be obtained at its website,
www.naturessunshine.com.
Cautionary Statement Regarding Forward-Looking Statements
This press release contains forward-looking statements regarding the Company’s future business expectations, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to the Company’s objectives, plans and strategies. All statements (other than statements of historical fact) that address activities, events or developments that the Company intends, expects, projects, believes or anticipates will or may occur in the future are forward-looking statements. These statements are often characterized by terminology such as “believe,” “hope,” “may,” “anticipate,” “should,” “intend,” “plan,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy” and similar expressions, and are based on assumptions and assessments made by management in light of their experience and their perception of historical trends, current conditions, expected future developments and other factors they believe to be appropriate. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, including the following.
- changes in laws and regulations, or their interpretation, applicable to direct selling or the nutritional supplement industry may prohibit or restrict the Company’s ability to sell its products in some markets or require the Company to make changes to its business model in some markets;
- legal challenges to its direct selling program or to the classification of its independent distributors;
- complex legal and regulatory requirements in China, including the failure to obtain the necessary approvals and licenses to expand its direct sales activities in China;
- extensive government regulations to which its products, business practices and manufacturing activities are subject;
- the impact of anti-bribery laws, including the U.S. Foreign Corrupt Practices Act;
- the full implementation of its joint venture for operations in China with Fosun Industrial Co., Ltd.;
- registration of products for sale in China, or difficulty or increased cost of importing products into China;
- its business practices in some of the jurisdictions in which it operates, including China and South Korea, where the business practices may be legal and compliant with local and foreign law, but still draw unnecessary media or regulatory attention;
- its ability to attract and retain independent distributors;
- the effect of fluctuating foreign exchange rates;
- negative consequences resulting from difficult economic conditions, including the availability of liquidity or the willingness of its customers to purchase products;
- geopolitical issues and conflicts;
- restrictions on the repatriation of money;
- uncertainties relating to the application of transfer pricing, duties, value-added taxes, and other tax regulations, and changes thereto;
- changes in tax laws, treaties or regulations, or their interpretation;
- taxation relating to its independent distributors;
- high levels of inflation in one or more of the countries in which the Company operates;
- cyber security threats and exposure to data loss;
- reliance on information technology infrastructure;
- liabilities and obligations arising from improper activity by its agents, employees or independent distributors;
- its relationship with, and its inability to influence the actions of, its independent distributors, and other third parties with whom it does business;
- its reliance upon, or the loss or departure of any member of, its senior management team;
- challenges in managing rapid growth in China;
- the slowing of the Chinese economy;
- negative effects from its independent distributor promotions or compensation plans;
- risks associated with the manufacturing of the Company’s products;
- availability and integrity of raw materials;
- obsolescence of product inventory;
- changing consumer preferences and demands;
- the competitive nature of its business and the nutritional supplement industry;
- negative publicity related to its products, ingredients, or direct selling organization and the nutritional supplement industry;
- product liability claims;
- the sufficiency of trademarks and other intellectual property rights; and
- reliance on third-parties to distribute its products and provide support services to independent distributors.
These and other risks and uncertainties that could cause actual results to differ from predicted results are more fully detailed under the caption “Risk Factors” in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K and Quarterly Reports filed on Forms 10-Q.
All forward-looking statements speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in or incorporated by reference into this press release. Except as is required by law, the Company expressly disclaims any obligation to publicly release any revisions to forward-looking statements to reflect events after the date of this press release.
Non-GAAP Financial Measures
The Company has included information which has not been prepared in accordance with generally accepted accounting principles (GAAP), such as information concerning Adjusted EBITDA and net sales excluding the impact of foreign currency exchange fluctuations. Management utilizes the non-GAAP measure Adjusted EBITDA in the evaluation of its operations and believes that this measure is a useful indicator of the Company’s ability to fund its business. This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, U.S. GAAP net income (loss) as an indicator of the Company’s operating performance. Moreover, Adjusted EBITDA, as presented by the Company, may not be comparable to similarly titled measures reported by other companies.
In addition, the Company believes presenting the impact of foreign currency fluctuations is useful to investors because it allows a more meaningful comparison of net sales of its foreign operations from period to period. Net sales excluding the impact of foreign currency fluctuations should not be considered in isolation or as an alternative to net sales in U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP.
Other companies may use the same or similarly named measures, but exclude different items, which may not provide investors with a comparable view of Nature’s Sunshine Products’ performance in relation to other companies. The Company has included a reconciliation of Adjusted EBITDA to net income (loss), the most comparable GAAP measure, in the attached financial tables.
| NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Amounts in thousands, except per share information) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended June 30, | ||||||||
| 2017 | 2016 | |||||||
| Net sales | $ | 81,344 | $ | 89,366 | ||||
| Cost of sales | 21,197 | 23,078 | ||||||
| Gross profit | 60,147 | 66,288 | ||||||
| Operating expenses: | ||||||||
| Volume incentives | 28,288 | 30,791 | ||||||
| Selling, general and administrative | 31,836 | 31,249 | ||||||
| Operating income | 23 | 4,248 | ||||||
| Other income (expense),net | 441 | (622 | ) | |||||
| Income before provision for income taxes | 464 | 3,626 | ||||||
| Provision for income taxes | 884 | 1,260 | ||||||
| Net income (loss) | (420 | ) | 2,366 | |||||
| Net loss attributable to noncontrolling interests | (233 | ) | (202 | ) | ||||
| Net income (loss) attributable to common shareholders | $ | (187 | ) | $ | 2,568 | |||
| Basic and diluted net income (loss) per common share: | ||||||||
| Basic earnings (loss) per share attributable to common shareholders | $ | (0.01 | ) | $ | 0.14 | |||
| Diluted earnings (loss) per share attributable to common shareholders | $ | (0.01 | ) | $ | 0.14 | |||
| Weighted average basic common shares outstanding | 18,876 | 18,723 | ||||||
| Weighted average diluted common shares outstanding | 18,876 | 18,940 | ||||||
| NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (Amounts in thousands, except per share information) | ||||||||
| (Unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2017 | 2016 | |||||||
| Net sales | $ | 164,442 | $ | 171,768 | ||||
| Cost of sales | 42,925 | 45,098 | ||||||
| Gross profit | 121,517 | 126,670 | ||||||
| Operating expenses: | ||||||||
| Volume incentives | 57,271 | 60,668 | ||||||
| Selling, general and administrative | 62,172 | 59,634 | ||||||
| Operating income | 2,074 | 6,368 | ||||||
| Other income, net | 1,716 | 937 | ||||||
| Income before provision for income taxes | 3,790 | 7,305 | ||||||
| Provision for income taxes | 2,347 | 3,150 | ||||||
| Net income | 1,433 | 4,155 | ||||||
| Net loss attributable to noncontrolling interests | (530 | ) | (482 | ) | ||||
| Net income attributable to common shareholders | $ | 1,973 | $ | 4,637 | ||||
| Basic and diluted net income per common share: | ||||||||
| Basic earnings per share attributable to common shareholders | $ | 0.10 | $ | 0.25 | ||||
| Diluted earnings per share attributable to common shareholders | $ | 0.10 | $ | 0.24 | ||||
| Weighted average basic common shares outstanding | 18,861 | 18,708 | ||||||
| Weighted average diluted common shares outstanding | 19,251 | 18,946 | ||||||
| NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (Amounts in thousands) | ||||||||
| (Unaudited) | ||||||||
| June 30, 2017 | December 31, 2016 |
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 31,821 | $ | 32,284 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $190 and $205, respectively | 9,220 | 7,738 | ||||||
| Investments available for sale | — | 1,776 | ||||||
| Assets held for sale | — | 521 | ||||||
| Inventories | 50,958 | 47,597 | ||||||
| Prepaid expenses and other | 5,902 | 4,585 | ||||||
| Total current assets | 97,901 | 94,501 | ||||||
| Property, plant and equipment, net | 72,662 | 73,272 | ||||||
| Investment securities – trading | 1,786 | 1,391 | ||||||
| Intangible assets, net | 1,007 | 976 | ||||||
| Deferred income tax assets | 21,391 | 21,590 | ||||||
| Other assets | 13,816 | 13,840 | ||||||
| $ | 208,563 | $ | 205,570 | |||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 5,361 | $ | 5,305 | ||||
| Accrued volume incentives and service fees | 17,654 | 16,264 | ||||||
| Accrued liabilities | 21,798 | 24,400 | ||||||
| Deferred revenue | 5,258 | 3,672 | ||||||
| Revolving credit facility | 11,954 | 9,919 | ||||||
| Income taxes payable | 2,795 | 3,475 | ||||||
| Total current liabilities | 64,820 | 63,035 | ||||||
| Liability related to unrecognized tax benefits | 6,966 | 6,755 | ||||||
| Deferred compensation payable | 1,786 | 1,391 | ||||||
| Other liabilities | 1,307 | 1,991 | ||||||
| Total liabilities | 74,879 | 73,172 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, no par value; 50,000 shares authorized, 18,893 and 18,757 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively | 131,008 | 129,654 | ||||||
| Retained earnings | 12,805 | 12,718 | ||||||
| Noncontrolling interests | 756 | 1,286 | ||||||
| Accumulated other comprehensive loss | (10,885 | ) | (11,260 | ) | ||||
| Total shareholders’ equity | 133,684 | 132,398 | ||||||
| $ | 208,563 | $ | 205,570 | |||||
| NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| (Amounts in thousands) | ||||||||
| (Unaudited) | ||||||||
| Six Months Ended June 30, | ||||||||
| 2017 | 2016 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 1,443 | $ | 4,155 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Provision for doubtful accounts | (22 | ) | 62 | |||||
| Depreciation and amortization | 3,585 | 2,396 | ||||||
| Share-based compensation expense | 1,762 | 1,586 | ||||||
| (Gain) loss on sale of property and equipment | (10 | ) | 78 | |||||
| Deferred income taxes | 263 | 311 | ||||||
| Purchase of trading investment securities | (367 | ) | (252 | ) | ||||
| Proceeds from sale of trading investment securities | 73 | 56 | ||||||
| Realized and unrealized gains on investments | (79 | ) | (60 | ) | ||||
| Foreign exchange gains | (1,882 | ) | (546 | ) | ||||
| Changes in assets and liabilities: | ||||||||
| Accounts receivable | (1,429 | ) | (164 | ) | ||||
| Inventories | (2,359 | ) | (6,177 | ) | ||||
| Prepaid expenses and other | (1,221 | ) | (912 | ) | ||||
| Other assets | 358 | (1,027 | ) | |||||
| Accounts payable | 109 | 2,402 | ||||||
| Accrued volume incentives and service fees | 1,082 | 2,798 | ||||||
| Accrued liabilities | (3,542 | ) | 950 | |||||
| Deferred revenue | 1,586 | 735 | ||||||
| Income taxes payable | (636 | ) | (150 | ) | ||||
| Liability related to unrecognized tax positions | 207 | 231 | ||||||
| Deferred compensation payable | 395 | (9 | ) | |||||
| Net cash provided by (used in) operating activities | (684 | ) | 6,463 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchases of property, plant and equipment | (3,134 | ) | (4,592 | ) | ||||
| Proceeds from sale of property, plant and equipment | 522 | — | ||||||
| Proceeds from sale/maturities of investments available for sale | 1,776 | — | ||||||
| Net cash used in investing activities | (836 | ) | (4,592 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Payments of cash dividends | (1,886 | ) | (3,756 | ) | ||||
| Net borrowings on revolving credit facility | 2,035 | 1,224 | ||||||
| Proceeds from exercise of stock options | 104 | 59 | ||||||
| Payment of withholding taxes related to the vesting of restricted stock units | (512 | ) | (169 | ) | ||||
| Net cash used in financing activities | (259 | ) | (2,642 | ) | ||||
| Effect of exchange rates on cash and cash equivalents | 1,316 | 779 | ||||||
| Net increase (decrease) in cash and cash equivalents | (463 | ) | 8 | |||||
| Cash and cash equivalents at beginning of the year | 32,284 | 41,420 | ||||||
| Cash and cash equivalents at end of the year | $ | 31,821 | $ | 41,428 | ||||
| NATURE’S SUNSHINE PRODUCTS, INC. AND SUBSIDIARIES | ||||||||
| RECONCILIATION OF NET INCOME (LOSS) TO ADJUSTED EBITDA | ||||||||
| (Amounts in thousands) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended June 30, | ||||||||
| 2017 | 2016 | |||||||
| Net income (loss) | $ | (420 | ) | $ | 2,366 | |||
| Adjustments: | ||||||||
| Depreciation and amortization | 2,134 | 1,226 | ||||||
| Share-based compensation expense | 984 | 704 | ||||||
| Other (income) loss, net* | (441 | ) | 622 | |||||
| Provision for income taxes | 884 | 1,260 | ||||||
| Adjusted EBITDA | $ | 3,141 | $ | 6,178 | ||||
| Six Months Ended June 30, | ||||||||
| 2017 | 2016 | |||||||
| Net income | $ | 1,443 | $ | 4,155 | ||||
| Adjustments: | ||||||||
| Depreciation and amortization | 3,585 | 2,396 | ||||||
| Share-based compensation expense | 1,762 | 1,586 | ||||||
| Other income, net* | (1,716 | ) | (937 | ) | ||||
| Provision for income taxes | 2,347 | 3,150 | ||||||
| Adjusted EBITDA | $ | 7,421 | $ | 10,350 | ||||
* Other income, net is primarily comprised of foreign exchange gains (losses), interest income, and interest expense.
CONTACT: Contact: Scott Van Winkle Managing Director ICR (617) 956-6736 scott.vanwinkle@icrinc.com
Source: Nasdaq GlobeNewswire
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