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Published byAnnice Rogers Modified over 9 years ago
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Nu Skin Enterprises, Inc. November 12, 2001
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Corey B. Lindley, EVP & CFO
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Nu Skin Enterprises Operational Overview Premium quality consumer products 500,000 distributors worldwide 33 countries and expanding More than $100 million EBITDA in 2001
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Asia The Americas Europe Nu Skin Enterprises Global Operations
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$442 mil Premium quality 35% Skin treatment $384 mil 50 world class scientists LifePak: $150 mil $54 mil Founded in 1998 I-Link: Top Seller Nu Skin Enterprises, Inc.
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27th largest global personal care company Top 10 in Asia Larger than Elizabeth Arden & Paul Mitchell Innovative Specialty Skin Treatment Nu Skin 180 Anti-Aging Skin Therapy™ Galvanic Skin Treatment™
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The Pharmanex Difference Pharmaceutical approach to nutrition: Differentiated products Lifestyle products Lifepak - $150 million family of products Targeted nutrition Weight management
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Nu Skin’s IPO Deal Shares offered:7.6 million shares Target price:$20 - 22 per share Amount:$160 million Exchange:NYSE Lead:Merrill Lynch & Co. Co-Managers:Morgan Stanley Dean Witter Nomura Securities
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Why Nu Skin Went Public Distributor equity incentives Management incentives/benefits Currency for acquisitions & expansion Estate planning
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IPO Process June 1996Decision to go public Prepare company business plan July 1996Select investment bankers - Lead bank & Co-Leaders Aug. 1996Prepare Registration Statement Research analyst presentation Management decisions Sept. 1996File Registration Statement 30-40 day SEC review
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IPO Process - Continued Oct. 1996Receive SEC comments Respond to SEC comments Oct. 24, 1999Print Red Herring Nov. 4, 1996Roadshow begins (3 weeks) Nov. 21, 1996Roadshow ends Nov. 21, 1996Pricing Nov. 22, 1996 Open on NYSE
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Selecting Investment Banks Strength of distribution –Institutional shareholders –Retail shareholders Standing in industry Reputation of research analyst After deal support
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NYSE vs. Nasdaq Specialist - One market maker More efficient trading environment Prestige of listing on NYSE More selective
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Challenges of being Public Fluctuations in stock price Extent of public disclosure Managing expectations Regulation FD
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Stock price Earnings per share Stock Price Impact of Earnings Per Share Stock price Earnings per share
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Advantages of being Public Discipline in operations Currency for acquisitions Broad institutional ownership Greater access to capital markets
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Access to Capital Markets Limited local access to credit Banking contacts provide access Relationship-based transactions
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Recent Credit Facility $90 million long-term debt 3% annual interest rate Yen-based facility 10 year money - 7 year life
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