Thursday, January 28, 2016

USANA Should Disclose What The Actual United States of America Net Sales, Active Associates, and Active Preferred Customers Are For The Last 5 Years.

Many may not know, but when USANA Health Sciences (USNA) reports their United States figures in their quarterly and annual financial statements they also include the United Kingdom and the Netherlands. These foreign markets are about 4200 miles apart from the United States, but that hasn't stopped USANA from considering them all part of their domestic market. So when USANA reports net sales for the United States after the closing bell on Tuesday, February 9, 2016 would it mean anything different to investors if the United States of America figures were actually only half of what they are reporting for the United States? I believe I have evidence to suggest this may be the case.

USANA reports in their North American Average Total Earnings for 2011 that the total number of US associates that purchased at least one product (active associate) was 135,590. The next available figure, which was finally disclosed just last November after Fox13 news in Salt Lake City asked USANA if they can provide updated information since 2011 was a bit outdated, shows in their North American Average Total Earnings for 2014 that only 61,400 US associates purchased at least one product. That is a 54.7% decline in the United States of America according to those reports. However, USANA has not made any such disclosure in SEC filings regarding this massive decline of US active associates. In fact, SEC filings only show a slight decline for the United States from 2011 to 2014.

Regarding their SEC filings (10-Q and 10-K), USANA reports only 3 months worth of associate activity for each quarter. In 2011, USANA had on average 47,500 active associates each quarter for their US market. In 2014, USANA had about 40,000 active associates on average each quarter. So according to SEC filings, USANA only declined 15.8%. So why is there a massive discrepancy between a 54.7% decline (undisclosed to investors) versus a 15.8% decline (disclosed to investors)? I believe the answer is the United Kingdom and the Netherlands, which may account for half of the active associates USANA reports for the United States in their SEC Filings.

This begs the question - what are the actual net sales, active associate numbers and active preferred customer numbers for the United States of America? I thought USANA was required by law to disclose their domestic sales figures separately and not sure how they can still be including sales to associates and preferred customers from the United Kingdom or Netherlands as domestic sales. If I am right and a substantial part of USANA's United States sales figures are non-domestic, does this spell trouble for USANA? Are they trying to conceal their massive decline in the US from investors? Does this warrant a SEC investigation? Will class action lawsuits be filed as a result? If I am wrong, then someone please explain what happened to all the active associates they reported in the average total earnings reports.

Below is a table showing each year's total number of US associates and the number of distributors reported in SEC filings for the 4th quarters (except 2014, which was not disclosed in SEC filings, but deduced from statements made regarding % increases or decreases).

YEAR 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
# of US Associates in 4th Quarter Per SEC Filings 51,000 59,000 61,000 63,000 57,000 51,000 45,000 Not Disclosed Not Disclosed 40,000 (Deduced)
Total # US Associates in Year per Average Total Earnings Disclosures 101,361 142,841 126,146 158,934 165,710 146,714 135,590 Not Disclosed Not Disclosed 61,400
Total US sales (in millions) per 10K SEC Filing $134.2 $159.4 $169.6 $161.2 $151.7 $150.9 $148.1 $152.5 $157.5 $143.7
10K SEC Filing 10K-2005 10K-2006 10K-2007 10K-2008 10K-2009 10K-2010 10K-2011 10K-2012 10K-2013 10K-2014
North American Average Total Earnings Disclosure Disclosure 2005 Disclosure 2006 Disclosure 2007 Disclosure 2008 Disclosure 2009 Disclosure 2010 Disclosure 2011 Not Disclosed Not Disclosed Disclosure 2014

To find out when USANA began including the UK and the Netherlands with US domestic data, we must rewind over a decade in time.

USANA states the following in their second quarter 10-Q for 2000:
"Since the beginning of the second quarter of 2000, the Company's United Kingdom market has been serviced from the United States and is now considered a part of the domestic operating segment of the Company." - Q2-2000

In the third quarter 10-Q for 1999, USANA states the following:
"The Company began selling products into the Netherlands in the third quarter of 1999. The Netherlands will be serviced by the Company's United Kingdom administrative facility." - Q3-1999


  1. Yea my friend is trying to get me to join this network marketing company, I have no doubts that the company its self is a legitimate and legal and whatnot but. . . .

    my question is this, is network marketing legitimate business practice???

    1. "Network Marketing" is legitimate if product or services are actually sold or resold to customers outside the distribution or sales force. But many if not most network marketing companies are "multi-level marketing", which primarily focuses on distributor growth rather than real customer growth. Thus, recruiting people into a business opportunity is the real business rather than the sale of product to customers outside the distribution force.

  2. Hmm.. Watchdog.
    You can maybe hinder a teenybit in the USA.. but you cannot stop the world !!!

    Dominican republic is a new market.. and I heard teams are EXPLODING over there!! hahahaha you lose.. because you cannot convert this into spanish or chinese or other language..

    So I'm just feeling sorry for ya. All your work is wasted as you cannot even put a dento in a mento! I don't know what you are doing with your life. fail.. fail.. fail.. again.

    1. Soon enough you will fail! Did you know that most of usana's asian markets drops a lot?

    2. ah... been in doing this passively for like 5 years and still in it. I might not be called a success like diamond or whatever..but definitely not a failure like you.

      Asian market? really? Who cares.. there is still demand. Plus puerto rico is up and running. Do I give 2 shts?

    3. Well, question is. Are their products were effective? Maybe some of the USANA members focuses on their invites. But hard working USANA members were trying to do their thing to sell their products. Well i met some one who is a member of other net working company and i bet he is the worse business man i've ever known. He was like "are you an open minded?" Or like "would you like to have an income?" Haha he sound like failure.

  3. Anyone know why some top usana distributors just stop doing usana and quit..

    These are diamond earners. So do those passive income stay with them after they stop/quit.

    1. As long as they keep personally purchasing the required volume of product every 4 weeks, they can keep receiving whatever commissions their downline generates. Otherwise, they do not receive a commission.

      Top earners (Diamond directors) might stop or quit because all they had was a "title". If their downline drops out or dwindles away, so does the commission. These top earners must keep pressuring people and recruit distributors to replace the ones that quit. The drop out rate is around 80% each year.

      There is no such thing as "residual" income with USANA. That's a myth...

    2. man, you guys don't know wtf you're talking about.

      There is a residual income. They don't quit.. they just 'retired' but they still have the account with them which means the passive income stay with them.

      Plus the downline doesn't dwindle. It only happens when you start out..but once you hit a certain level, the downline grows and dwindles around same rate and hit another level then it will grow NET slowly by itself. Takes time to hit that level that's why many quit early on because they only see what you doggie see.. beginners level. They walk the walk. you just talk the talk. So they know what they are talking about.

      Take proactive, there are about new subscriber/customers and dwindling customers who are out of the teens age so they don't need it. Then there are old customers. But overall it sustain itself because of new > than drop outs once they get a certain level. Try 10 customer of course you will dwindle duh. Try 500000 customers.. chances of ALL going away is slim. It becomes a sustainablish force.

      Therefore you all just seem to know how to complain. But when it comes to making money and business whatever you call legit or you not, you and doggie have no clue. It's common sense.

  4. wow. It's been 4 months and no BAD usana news. I guess usana won the war.

  5. Watchdogs reply on March 28th is 100% correct. Such a depressing business venture. Oh and for the customers, once you became a preferred customer on autoshipment, you used to get 10% off all orders. Now you only get 10% off your auto order, and pay regular price many other time you want to order stuff. In terms of the 4 month gap in new posts, what else does watchdog have to say. Lousy business model, high percentages of drop outs, over priced products. Whats not to love. Oh and look at comp plan, sneaky little devils. They say they pay 20% commissions of your lowest point totals. But they very cleverly disguise it. So if you have 100 points on your right leg and 120 points on left leg, the lowest point total is 100 points so you get 20% on the 100 points. But, any business man with common sense would ask, well what about the other 100 points of product? You were getting paid essentially on only 100 points not 200. So in reality you are only getting paid 10% commissions and usana gets to keep the other 100 points free and clear. Ripoff!

    1. Exactly! You get paid for HALF of the goods sold! and on the lower end! hahahahah

  6.'s been like 5 months and yet doggie has NOTHING bad to talk about usana? NOTHING!!!? what kind of watch dog is this..unless there is nothing bad.

  7. Replies
    1. Yeah, USANA has yet to disclose their actual United States numbers. They have not been honest when they report their Domestic figures for Earnings, Active Associates, and Active Preferred Customers.

      SEC should investigate this matter and shareholders should be consider class action suit. It is against the law for USANA to withhold the actual data from their domestic reporting.

  8. It's been like half a year and you have no negative news that will impact usana greatly. Really? So they won against your website? Meanwhile, the continue to grow compare your one man team.. wow..How you ever going to stop them? Might as well stop wasting your time now.. or did you already stop wasting your time? If so..good job.

  9. To poster above, you are an idiot. Have you seen the new Mysmart food product lineup? Anyone with half a brain can clearly see the Mysmart food shake provides half of the nutrients that the Nutrimeal provided, and costs almost twice as much when you factor in the flavir sticks you now have to get. Seriously, they stripped out all the micro nutrients in the new Mysmart foods. Why one might ask? Good question, call usana and ask their customer service reps who will candidly tell you. The Mysmartfood provides all the macro nutrients (proteins, carbs, fat) and to now get the micronutruents (vitamins abd minerals) you can get the Essential multi vitamins. This was the response I got when I called and questioned the mysmart foods. I called 5 times and got same response from everyone. Really - sounds like awesome deal huh? When i confronted them with so i used to be able to get all the nutrients I needed from Nutrimeal, i now have to get the Mysmartfood and the essential multi vitamin they said YES!. Mysmart food is not a true meal replacement. All it is is clever disguise/trick to get customers to now buy the shake and essential multivitamin which translates into extra dollars/sales/revenue for Usana. Dr. Wentz and his son Dave are brilliant for sure, brilliant in ripping off the consumer!

    1. You're the idiot. Re-read my post above and sense what I'm trying to get it.


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