Attached files
| file | filename |
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| 8-K - FORM 8-K - NATURAL HEALTH TRENDS CORP | nhtc20131105_8k.htm |
Exhibit 99.1
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Company Contact |
Investor Contact |
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Scott Davidson |
Brett Maas |
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Chief Financial Officer |
Managing Partner |
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Natural Health Trends Corp. |
Hayden IR |
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Tel: 972-241-4080 |
Tel: 646-536-7331 |
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scott.davidson@nthglobal.com |
brett@haydenir.com |
FOR IMMEDIATE RELEASE
Natural Health Trends Reports Third Quarter 2013 Financial Results
DALLAS, TX, November 6, 2013 -- Natural Health Trends Corp. (OTCQB: NHTC), a leading direct selling company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, today announced financial results for the quarter and nine months ended September 30, 2013.
Third Quarter Financial Highlights
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Total revenues were $14.2 million, up 52% compared to $9.3 million for the third quarter last year, and up 34% sequentially from the $10.6 million for the second quarter this year. This was the third consecutive sequential quarterly increase in revenues. |
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Operating income was $1.3 million, an increase of 68% compared to $789,000 last year, and an increase of 40% sequentially compared to the $948,000 in the second quarter this year. |
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Net income was $1.3 million, or $0.12 per diluted share, compared to $747,000, or $0.07 per diluted share last year. |
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Cash and cash equivalents increased to $9.1 million as of September 30, 2013 from $4.2 million at December 31, 2012 and $6.7 million at June 30, 2013. |
“Expanded promotions, successful product launches, effective training and enhanced leadership development programs are propelling our strong sales momentum for the third quarter and on a year-to-date basis got us caught up to a more expected pace of growth,” commented Chris Sharng, President of Natural Health Trends Corp. “As we have indicated before, we are well positioned to deliver growth for the full year with a strong second-half of the year, and the results for the third quarter reinforce that confidence.”
Year-to-Date 2013 Financial Highlights
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Total revenues for the nine months ended September 30, 2013 increased 14% to $33.4 million from $29.4 million in the same period last year. |
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Operating income for the first nine months was $2.6 million compared to $2.2 million in the same period last year. |
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Year-to-date net income increased 20% to $2.5 million, or $0.22 per diluted share, compared to $2.1 million, or $0.19 per diluted share, in the same period last year. |
“We have strong momentum leading into the fourth quarter as we place great emphasis on our marketing plan, promotions, incentives and product initiatives for the balance of the year,” said Mr. Sharng. “Our members continue to reach new milestones in our International Recognition Program, more qualifiers are traveling to exciting international destinations, and we are committed to providing new, high quality products as the tools for our members to achieve success. There has never been a better time to be a part of our business and to take advantage of the many rewards we offer.”
Shareholder Conference Call
Management will conduct a conference call to discuss these results today. Details of the call are as follows:
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Date: Wednesday, November 6, 2013 |
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Time: 4:30 p.m. ET/3:30 p.m. CT |
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Dial-in number: 1-877-941-8416 (domestic) 1-480-629-9808 (international) |
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Webcast link: http://public.viavid.com/index.php?id=106536 |
A replay will be available from 7:30 p.m. ET on November 6 through 11:59 p.m. ET on November 13, by dialing 1-877-870-5176 (domestic) and 1-858-384-5517 (international) and referencing replay pin number 4646919.
About Natural Health Trends Corp.
Natural Health Trends Corp. is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, North America, and Europe. The company markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand. Additional information can be found on the company's website, www.naturalhealthtrendscorp.com.
Forward Looking Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this release do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption "Risk Factors" in our Annual Report on Form 10-K filed on March 12, 2013, with the Securities and Exchange Commission. We assume no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
-- Tables follow --
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share Data)
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December 31, 2012 |
September 30, 2013 |
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(Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
$ | 4,207 | $ | 9,131 | ||||
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Accounts receivable |
122 | 293 | ||||||
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Inventories, net |
867 | 1,201 | ||||||
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Other current assets |
641 | 557 | ||||||
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Total current assets |
5,837 | 11,182 | ||||||
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Property and equipment, net |
121 | 125 | ||||||
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Goodwill |
1,764 | 1,764 | ||||||
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Restricted cash |
239 | 325 | ||||||
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Other assets |
258 | 296 | ||||||
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Total assets |
$ | 8,219 | $ | 13,692 | ||||
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
$ | 1,385 | $ | 2,068 | ||||
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Income taxes payable |
10 | 58 | ||||||
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Accrued distributor commissions |
1,308 | 2,288 | ||||||
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Other accrued expenses |
1,688 | 2,386 | ||||||
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Deferred revenue |
836 | 1,539 | ||||||
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Deferred tax liability |
92 | 92 | ||||||
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Other current liabilities |
991 | 793 | ||||||
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Total current liabilities |
6,310 | 9,224 | ||||||
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Commitments and contingencies |
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Stockholders’ equity: |
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Preferred stock |
124 | 111 | ||||||
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Common stock |
11 | 11 | ||||||
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Additional paid-in capital |
80,584 | 80,647 | ||||||
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Accumulated deficit |
(78,708 | ) | (76,196 | ) | ||||
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Accumulated other comprehensive loss: |
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Foreign currency translation adjustments |
(102 | ) | (105 | ) | ||||
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Total stockholders’ equity |
1,909 | 4,468 | ||||||
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Total liabilities and stockholders’ equity |
$ | 8,219 | $ | 13,692 | ||||
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, Except Per Share Data)
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Three Months Ended September 30, |
Nine Months Ended September 30, |
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2012 |
2013 |
2012 |
2013 |
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Net sales |
$ | 9,333 | $ | 14,177 | $ | 29,403 | $ | 33,426 | ||||||||
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Cost of sales |
2,384 | 3,362 | 7,667 | 8,160 | ||||||||||||
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Gross profit |
6,949 | 10,815 | 21,736 | 25,266 | ||||||||||||
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Operating expenses: |
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Distributor commissions |
3,897 | 6,259 | 12,474 | 14,376 | ||||||||||||
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Selling, general and administrative expenses |
2,255 | 3,216 | 7,005 | 8,270 | ||||||||||||
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Depreciation and amortization |
8 | 13 | 28 | 53 | ||||||||||||
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Total operating expenses |
6,160 | 9,488 | 19,507 | 22,699 | ||||||||||||
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Income from operations |
789 | 1,327 | 2,229 | 2,567 | ||||||||||||
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Other income (expense), net |
(27 | ) | 15 | (88 | ) | (6 | ) | |||||||||
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Income before income taxes |
762 | 1,342 | 2,141 | 2,561 | ||||||||||||
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Income tax provision |
15 | 21 | 41 | 49 | ||||||||||||
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Net income |
747 | 1,321 | 2,100 | 2,512 | ||||||||||||
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Preferred stock dividends |
(4 | ) | (4 | ) | (12 | ) | (12 | ) | ||||||||
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Net income available to common stockholders |
$ | 743 | $ | 1,317 | $ | 2,088 | $ | 2,500 | ||||||||
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Income per share – basic and diluted |
$ | 0.07 | $ | 0.12 | $ | 0.19 | $ | 0.22 | ||||||||
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Weighted-average number of shares outstanding: |
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Basic |
10,970 | 11,181 | 10,918 | 11,128 | ||||||||||||
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Diluted |
11,232 | 11,312 | 11,225 | 11,294 | ||||||||||||
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In Thousands)
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Nine Months Ended September 30, |
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2012 |
2013 |
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CASH FLOWS FROM OPERATING ACTIVITIES: |
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Net income |
$ | 2,100 | $ | 2,512 | ||||
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization |
28 | 53 | ||||||
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Stock-based compensation |
60 | 82 | ||||||
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Changes in assets and liabilities: |
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Accounts receivable |
(69 | ) | (174 | ) | ||||
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Inventories, net |
(163 | ) | (346 | ) | ||||
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Other current assets |
93 | 68 | ||||||
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Other assets |
(4 | ) | (35 | ) | ||||
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Accounts payable |
(416 | ) | 683 | |||||
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Income taxes payable |
68 | 49 | ||||||
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Accrued distributor commissions |
108 | 994 | ||||||
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Other accrued expenses |
51 | 704 | ||||||
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Deferred revenue |
(205 | ) | 708 | |||||
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Other current liabilities |
(56 | ) | (195 | ) | ||||
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Net cash provided by operating activities |
1,595 | 5,103 | ||||||
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CASH FLOWS FROM INVESTING ACTIVITIES: |
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Purchases of property and equipment, net |
(88 | ) | (57 | ) | ||||
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Decrease (increase) in restricted cash |
493 | (82 | ) | |||||
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Net cash provided by (used in) investing activities |
405 | (139 | ) | |||||
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CASH FLOWS FROM FINANCING ACTIVITIES: |
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Repurchase of common stock |
– |
(32 | ) | |||||
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Net cash used in financing activities |
– |
(32 | ) | |||||
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Effect of exchange rates on cash and cash equivalents |
34 | (8 | ) | |||||
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Net increase in cash and cash equivalents |
2,034 | 4,924 | ||||||
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CASH AND CASH EQUIVALENTS, beginning of period |
1,617 | 4,207 | ||||||
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CASH AND CASH EQUIVALENTS, end of period |
$ | 3,651 | $ | 9,131 | ||||
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