The following excerpt is from the company's SEC filing.
Declares Special Cash Dividend of $0.35 per Share
Record operating income increased
increased 30% year-over-year to 122,900
Increased quarterly dividend 14% to $0.08 per share
Declared special dividend of $0.35 per share
LOS ANGELES – October 25, 2016 – 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 t he quarter ended
September 30, 2016
Total revenue decreased
, compared to
Revenue from the Company’s Hong Kong operations, which represented
of total revenue, decreased
Revenue outside of Hong Kong decreased
Operating income increased
An additional income tax provision of $2.6 million was recognized in the
quarter of 2016 for the expected partial repatriation of overseas profits, resulting in an overall effective tax rate of 18%.
Net income was
per diluted share, compared to
per diluted share, in the
The number of Active Members
June 30, 2016
, and increased 30% compared to
September 30, 2015
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.
Total revenue increased
in the first
An additional income tax provision of $7.3 million was recognized in the first
months of 2016 for the expected partial repatriation of overseas profits, resulting in an overall effective tax rate of 18%.
per diluted share, in the first
“We had a challenging third quarter characterized by various adverse factors contributing to a 13% year-over-year decline in our total revenue,” commented Chris Sharng, President of Natural Health Trends Corp. “In addition to a tough year-over-year comparison in the third quarter of 2015 due to a highly successful promotion we ran last year during an otherwise seasonally slower quarter, we encountered currency depreciation of the Chinese yuan by 6% against the Hong Kong dollar. This effectively increases the price of our products for our members residing in mainland China. That said, we believe the G20 Summit, which was hosted in Hangzhou, one of our top performing markets, was the significant driver behind the quarter’s decline in revenue. To prepare for the high profile event, the Chinese government implemented special measures such as temporarily relocating city residents, emptying entire districts, blocking urban traffic and shutting down businesses from July through early September. As a result, our local members’ abilities to organize any activity in the Hangzhou metropolitan area were hampered.”
Mr. Sharng further commented, “Despite these factors, we were pleased to have increased our revenues for the first nine months of 2016 by 18% over last year as well as achieve record operating profit for the quarter of $15.2 million, up 3% over last year. To reinvigorate growth in our affected markets, we have developed a strategic plan which includes leader training and motivation, expansion by both geography and product, and technological advancements to support enhanced member communication and productivity. We are working hard to build sustainable, long-term growth and we will strive to get there through execution on our strategic initiatives while simultaneously returning excess cash to our valued stockholders.”
Balance Sheet and Cash Flow
Net cash provided by operating activities in the
. For the first
, net cash provided by operating activities was
On October 23, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.08 per share on outstanding common stock, which represents a 14% increase over the prior quarter dividend, and a special cash dividend of $0.35 per share on outstanding common stock. The dividends will be payable on November 25, 2016 to stockholders of record as of November 15, 2016.
, the Company repurchased $23.7 million of its common stock under its existing $70.0 million stock repurchase program. At
, approximately $32.0 million remained available for repurchases, inclusive of related estimated income tax.
Third Quarter 2016 Financial Results Conference Call
Management will host a conference call to discuss the third quarter 2016 financial results today, Tuesday, October 25, 2016 at 11:30 a.m. Eastern Time. The conference call details are as follows:
11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time
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 October 25, 2016 through 11:59 p.m. Eastern Time on November 8, 2016 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13646039.
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, North America, 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.
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
in Natural Health Trends Corp.’s Annual Report on Form 10-K filed on March 4, 2016 with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
Senior Vice President and Chief Financial Officer
ADDO Investor Relations
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED BALANCE SHEETS
December 31, 2015
Cash and cash equivalents
Other current assets
Total current assets
Property and equipment, net
LIABILITIES AND STOCKHOLDERS’ EQUITY
Income taxes payable
Other accrued expenses
Deferred tax liability
Amounts held in eWallets
Other current liabilities
Total current liabilities
Commitments and contingencies
Additional paid-in capital
Retained earnings (accumulated deficit)
Accumulated other comprehensive loss
Treasury stock, at cost
Total stockholders’ equity
Total liabilities and stockholders’ equity
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
Three Months Ended September 30,
Nine Months Ended September 30,
Cost of sales
Selling, general and administrative expenses
Depreciation and amortization
Total operating expenses
Income from operations
Other income (expense), net
Income before income taxes
Income tax provision
Income per common share:
Weighted-average number of common shares outstanding:
Cash dividends declared per common share
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
CASH FLOWS FROM OPERATING ACTIVITIES:
Adjustments to reconcile net income to net cash provided by operating activities:
Cumulative translation adjustment realized in net income
Changes in assets and liabilities:
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net
Increase in restricted cash
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of warrants
Repurchase of common stock
Net cash used in financing activities
Effect of exchange rates on cash and cash equivalents
Net increase in cash and cash equivalents
CASH AND CASH EQUIVALENTS, beginning of period
CASH AND CASH EQUIVALENTS, end of period
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:
Cash paid for income taxes, net of refunds
Issuance of treasury stock
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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