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Natural Health Trends Reports Second Quarter 2021 Financial Results
المصدر: Nasdaq GlobeNewswire / 04 أغسطس 2021 08:00:00 America/Chicago
- Fifth consecutive quarter of positive operating income and net income
- Strong balance sheet with ample liquidity and $88.1 million in cash and cash equivalents
- Third consecutive quarter of positive cash flow from operations
- Declared a quarterly cash dividend of $0.20 per share
HONG KONG, Aug. 04, 2021 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, today announced its financial results for the quarter ended June 30, 2021.
Second Quarter 2021 Financial Highlights
- Revenue of $16.2 million increased 20% compared to $13.5 million in the first quarter of 2021 and decreased 2% compared to $16.4 million in the second quarter of 2020.
- Operating income was $385,000 compared to $220,000 in the first quarter of 2021 and $183,000 in the second quarter of 2020.
- Net income was $229,000, or $0.02 per diluted share, compared to $153,000, or $0.01 per diluted share, in the first quarter of 2021 and $34,000, or break-even per diluted share, in the second quarter of 2020.
- The number of Active Members1 decreased 5% to 46,860 at June 30, 2021 compared to 49,420 at March 31, 2021, and decreased 14% compared to 54,370 at June 30, 2020.
1 Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve-month period.
Year-to-Date 2021 Financial Highlights
- Revenue of $29.6 million decreased 6% compared to $31.4 million in the first six months of 2020.
- Operating income was $605,000 compared to operating loss of $1.3 million in the first six months of 2020.
- Net income was $382,000, or $0.03 per diluted share, compared to a net loss of $539,000, or $0.05 per diluted share, in the first six months of 2020.
Management Commentary
“We were pleased with our second quarter financial performance which reflected sequential growth despite ongoing macroeconomic challenges,” commented Chris Sharng, President of Natural Health Trends Corp. “Revenue of $16.2 million increased 20% compared to the first quarter of 2021 driven by multiple in-person events and roadshows which are helping to rejuvenate momentum in our core markets. Partially offsetting our growth were sporadic outbreaks hampering meeting turnout and global supply chain constraints lengthening lead times, which contributed to a $1.5 million increase in our deferred revenue balance from March to June.”
Mr. Sharng continued, “We are still navigating through the complexities associated with the COVID-19 pandemic around the world and the occasional pockets of outbreaks that occur in Asia. Aside from these challenges, we reported our fifth consecutive quarter of positive operating income and net income, in addition to our third consecutive quarter of positive cash flow generation. Looking ahead, we remain cautiously optimistic that the continued easing of pandemic-related restrictions will be positive development for our business.”
Balance Sheet and Cash Flow
- Net cash provided by operating activities was $548,000 in the first six months of 2021, compared to cash used of $1.0 million in the first six months of 2020.
- Total cash and cash equivalents were $88.1 million at June 30, 2021, down slightly from $90.2 million at March 31, 2021.
- On August 2, 2021, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 on each share of common stock outstanding. The dividend will be payable on August 27, 2021 to stockholders of record as of August 17, 2021.
Second Quarter 2021 Financial Results Conference Call
Management will host a conference call to discuss the second quarter 2021 financial results today, Wednesday, August 4, 2021 at 11:30 a.m. Eastern Time. The conference call details are as follows:
Date: Wednesday, August 4, 2021 Time: 11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time Dial-in: 1-877-407-0789 (Domestic)
1-201-689-8562 (International)Conference ID: 13721247 Webcast: http://public.viavid.com/index.php?id=145583 For those unable to participate during the live broadcast, a replay of the call will also be available from 2:30 p.m. Eastern Time on August 4, 2021 through 11:59 p.m. Eastern Time on August 18, 2021 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13721247.
About Natural Health Trends Corp.
Natural Health Trends Corp. (NASDAQ: NHTC) is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, the Americas, and Europe. The Company markets premium quality personal care products under the NHT Global brand. Additional information can be found on the Company’s website at www.naturalhealthtrendscorp.com.
Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this press release do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption “Risk Factors” in Natural Health Trends Corp.’s Annual Report on Form 10-K filed on February 26, 2021 with the Securities and Exchange Commission (SEC), as well as in subsequent reports filed this year with the SEC. The Company assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)June 30, 2021 December 31, 2020 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 88,114 $ 92,367 Inventories 3,706 3,779 Other current assets 3,707 3,595 Total current assets 95,527 99,741 Property and equipment, net 528 539 Operating lease right-of-use assets 3,540 3,745 Restricted cash 523 525 Deferred tax asset 702 731 Other assets 586 661 Total assets $ 101,406 $ 105,942 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable $ 1,027 $ 580 Income taxes payable 1,721 1,481 Accrued commissions 3,425 3,496 Other accrued expenses 1,853 1,922 Deferred revenue 5,713 3,091 Amounts held in eWallets 7,305 8,503 Operating lease liabilities 1,219 1,163 Other current liabilities 877 1,270 Total current liabilities 23,140 21,506 Income taxes payable 12,130 13,748 Deferred tax liability 216 216 Operating lease liabilities 2,488 2,775 Total liabilities 37,974 38,245 Stockholders’ equity: Preferred stock — — Common stock 13 13 Additional paid-in capital 86,102 86,102 Retained earnings 3,634 7,822 Accumulated other comprehensive loss (413 ) (336 ) Treasury stock, at cost (25,904 ) (25,904 ) Total stockholders’ equity 63,432 67,697 Total liabilities and stockholders’ equity $ 101,406 $ 105,942 NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Net sales $ 16,152 $ 16,404 $ 29,621 $ 31,352 Cost of sales 3,934 4,817 7,189 9,331 Gross profit 12,218 11,587 22,432 22,021 Operating expenses: Commissions expense 6,927 7,113 12,441 13,716 Selling, general and administrative expenses 4,906 4,291 9,386 9,570 Total operating expenses 11,833 11,404 21,827 23,286 Income (loss) from operations 385 183 605 (1,265 ) Other income (expense), net (59 ) 125 (39 ) 218 Income (loss) before income taxes 326 308 566 (1,047 ) Income tax provision (benefit) 97 274 184 (508 ) Net income (loss) $ 229 $ 34 $ 382 $ (539 ) Net income (loss) per common share: Basic $ 0.02 $ 0.00 $ 0.03 $ (0.05 ) Diluted $ 0.02 $ 0.00 $ 0.03 $ (0.05 ) Weighted average common shares outstanding: Basic 10,968 10,580 10,921 10,532 Diluted 11,424 11,424 11,424 10,532 NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)Six Months Ended June 30, 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net income (loss) $ 382 $ (539 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 156 202 Noncash lease expense 594 834 Deferred income taxes 24 870 Changes in assets and liabilities: Inventories 53 2,314 Other current assets (117 ) 845 Other assets 65 82 Accounts payable 446 402 Income taxes payable (1,376 ) (1,723 ) Accrued commissions (37 ) 212 Other accrued expenses (66 ) (617 ) Deferred revenue 2,629 (1,872 ) Amounts held in eWallets (1,186 ) (1,560 ) Operating lease liabilities (629 ) (811 ) Other current liabilities (390 ) 343 Net cash provided by (used in) operating activities 548 (1,018 ) CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (147 ) (68 ) Net cash used in investing activities (147 ) (68 ) CASH FLOWS FROM FINANCING ACTIVITIES: Dividends paid (4,570 ) (4,570 ) Net cash used in financing activities (4,570 ) (4,570 ) Effect of exchange rates on cash, cash equivalents and restricted cash (86 ) (50 ) Net decrease in cash, cash equivalents and restricted cash (4,255 ) (5,706 ) CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period 92,892 99,425 CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $ 88,637 $ 93,719 SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: Right-of-use assets obtained in exchange for operating lease liabilities $ 400 $ 1,081 CONTACTS:
Company Contact:
Scott Davidson
Senior Vice President and Chief Financial Officer
Natural Health Trends Corp.
Tel (Hong Kong): +852-3107-0800
Tel (U.S.): 310-541-0888
scott.davidson@nhtglobal.comInvestor Contact:
ADDO Investor Relations
Tel: 310-829-5400
investor.relations@nhtglobal.com
- Fifth consecutive quarter of positive operating income and net income