• Natural Health Trends Reports Second Quarter 2024 Financial Results

    المصدر: Nasdaq GlobeNewswire / 31 يوليو 2024 09:00:00   America/New_York

     –Total net sales were flat compared to the second quarter of 2023; first year-over-year increase in Hong Kong net sales since the first quarter of 2023
     –Cash flows from operations before 2017 Tax Act installment were positive for second consecutive quarter
     –Declared a quarterly cash dividend of $0.20 per share
       

    HONG KONG, July 31, 2024 (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, 2024.

    Second Quarter 2024 Financial Highlights

    • Revenue of $10.5 million is unchanged compared to the second quarter of 2023. 
    • Operating loss improved to $238,000 compared to $743,000 in the second quarter of 2023.
    • Net income was $173,000, or $0.02 per diluted share, compared to net loss of $219,000, or $0.02 per diluted share, in the second quarter of 2023.
    • The number of Active Members1 was down 2% to 31,110 at June 30, 2024 compared to 31,620 at March 31, 2024, and decreased 15% compared to 36,730 at June 30, 2023.

    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 2024 Financial Highlights

    • Revenue of $21.4 million decreased 4% compared to $22.4 million in the first six months of 2023. 
    • Operating loss was $603,000 compared to $1.1 million in the first six months of 2023.
    • Net income was $361,000, or $0.03 per diluted share, compared to $38,000, or breakeven per diluted share, in the first six months of 2023.

    Management Commentary

    “Our results indicate that the programs, promotions and incentives we’ve implemented this year have been effective and are performing as expected, maintaining engagement and driving customer satisfaction. We recognize that we’re still operating in a challenging environment, but believe we’re on the right track supporting our business and field leaders so they can find success. Our strong financial statements reflect positively on our ability to navigate the harder than expected business landscape by efficiently managing costs,” commented Chris Sharng, President of Natural Health Trends Corp.

    Mr. Sharng continued, “In the second half of the year we will continue to execute our strategic plans with an emphasis on comprehensive training, collaborative coordination between our staff, field leaders and members, and implementation of brand building initiatives to take advantage of market opportunities.”

    Balance Sheet and Cash Flow

    • Net cash used in operating activities was $3.0 million in the first six months of 2024 compared to $3.3 million in the first six months of 2023. Before tax installment payments, the liability of which arises from the 2017 U.S. Tax Cuts and Jobs Act (the “Tax Act”), cash provided by operating activities was $950,000 in the first six months 2024, versus cash used in operating activities of $307,000 in the comparable period a year ago. Of the total Tax Act liability of $20.2 million, $15.1 million has been paid to date.
    • Total cash, cash equivalents and marketable securities were $48.7 million at June 30, 2024, down from $54.4 million at March 31, 2024.
    • On July 29, 2024, 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 23, 2024 to stockholders of record as of August 13, 2024.

    Second Quarter 2024 Financial Results Conference Call

    Management will host a conference call to discuss the second quarter 2024 financial results today, Wednesday, July 31, 2024 at 11:30 a.m. Eastern Time. The conference call details are as follows:

    Date:Wednesday, July 31, 2024
    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:13746911
    Webcast:https://viavid.webcasts.com/starthere.jsp?ei=1673848&tp_key=7f60fa0c81
      

    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 July 31, 2024 through 11:59 p.m. Eastern Time on August 7, 2024 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13746911.

    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 28, 2024 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.

    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
    investor.relations@nhtglobal.com

     

     
    NATURAL HEALTH TRENDS CORP.
    CONSOLIDATED BALANCE SHEETS
    (In thousands, except share data)
     
      June 30,
    2024    		  December 31,
    2023    		 
      (Unaudited)     
    ASSETS        
    Current assets:        
    Cash and cash equivalents $15,577  $56,178 
    Marketable securities  33,087   — 
    Inventories  4,250   4,293 
    Other current assets  3,984   3,758 
    Total current assets  56,898   64,229 
    Property and equipment, net  225   266 
    Operating lease right-of-use assets  3,031   3,319 
    Restricted cash  36   39 
    Deferred tax asset  345   369 
    Other assets  956   869 
    Total assets $61,491  $69,091 
    LIABILITIES AND STOCKHOLDERS’ EQUITY        
    Current liabilities:        
    Accounts payable $653  $990 
    Income taxes payable  4,953   3,716 
    Accrued commissions  2,150   2,067 
    Other accrued expenses  1,300   1,170 
    Deferred revenue  7,587   6,166 
    Amounts held in eWallets  3,603   3,945 
    Operating lease liabilities  1,210   1,146 
    Other current liabilities  673   784 
    Total current liabilities  22,129   19,984 
    Income taxes payable  —   5,054 
    Deferred tax liability  135   135 
    Operating lease liabilities  1,977   2,318 
    Total liabilities  24,241   27,491 
    Stockholders’ equity:        
    Preferred stock  —   — 
    Common stock  13   13 
    Additional paid-in capital  84,770   84,695 
    Accumulated deficit  (21,948)  (17,703)
    Accumulated other comprehensive loss  (1,249)  (1,069)
    Treasury stock, at cost  (24,336)  (24,336)
    Total stockholders’ equity  37,250   41,600 
    Total liabilities and stockholders’ equity $61,491  $69,091 


     
    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,    		 
      2024  2023  2024  2023 
    Net sales $10,475  $10,511  $21,426  $22,372 
    Cost of sales  2,699   2,666   5,611   5,697 
    Gross profit  7,776   7,845   15,815   16,675 
    Operating expenses:                
    Commissions expense  4,203   4,508   8,689   9,500 
    Selling, general and administrative expenses  3,811   4,080   7,729   8,312 
    Total operating expenses  8,014   8,588   16,418   17,812 
    Loss from operations  (238)  (743)  (603)  (1,137)
    Other income, net  519   442   1,082   1,123 
    Income (loss) before income taxes  281   (301)  479   (14)
    Income tax provision (benefit)  108   (82)  118   (52)
    Net income (loss) $173  $(219) $361  $38 
    Net income (loss) per common share:                
    Basic $0.02  $(0.02) $0.03  $0.00 
    Diluted $0.02  $(0.02) $0.03  $0.00 
    Weighted average common shares outstanding:                
    Basic  11,464   11,432   11,460   11,428 
    Diluted  11,483   11,432   11,481   11,439 


     
    NATURAL HEALTH TRENDS CORP.
    CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
    (In thousands)
     
      Six Months Ended June 30, 
      2024  2023 
    CASH FLOWS FROM OPERATING ACTIVITIES:        
    Net income $361  $38 
    Adjustments to reconcile net income to net cash used in operating activities:        
    Depreciation and amortization  69   91 
    Net accretion of marketable securities  (215)  — 
    Share-based compensation  75   85 
    Noncash lease expense  545   564 
    Deferred income taxes  16   (82)
    Changes in assets and liabilities:        
    Inventories  6   (228)
    Other current assets  (294)  (362)
    Other assets  (101)  (52)
    Accounts payable  (335)  (82)
    Income taxes payable  (3,817)  (3,076)
    Accrued commissions  106   (374)
    Other accrued expenses  136   68 
    Deferred revenue  1,432   1,270 
    Amounts held in eWallets  (339)  (541)
    Operating lease liabilities  (560)  (595)
    Other current liabilities  (104)  (64)
    Net cash used in operating activities  (3,019)  (3,340)
    CASH FLOWS FROM INVESTING ACTIVITIES:        
    Purchases of property and equipment  (30)  (14)
    Purchases of marketable securities  (36,164)  — 
    Proceeds from maturities of marketable securities  3,307   — 
    Net cash used in investing activities  (32,887)  (14)
    CASH FLOWS FROM FINANCING ACTIVITIES:        
    Dividends paid  (4,606)  (4,608)
    Net cash used in financing activities  (4,606)  (4,608)
    Effect of exchange rates on cash, cash equivalents and restricted cash  (92)  (179)
    Net decrease in cash, cash equivalents and restricted cash  (40,604)  (8,141)
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period  56,217   69,746 
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period $15,613  $61,605 
    SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:        
    Right-of-use assets obtained in exchange for operating lease liabilities $196  $(125)

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