The following excerpt is from the company's SEC filing.
Quarter 2019 Financial Results
Repurchased $2.9 million of common stock
Declared a special dividend of $0.40 per share
HONG KONG –
November 1, 2019
– 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
September 30, 2019
Gross profit was
quarter of 2018. As a percent of total revenue, gross profit was
Operating loss was
compared to operating income of
Net loss was
per diluted share, compared to net income of
per diluted share, in the
The number of Active Members
decreased 13% to 68,150 at
, compared to 78,280 at June 30, 2019, and
30% compared to 97,160 at
September 30, 2018
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 2019 Financial Highlights
decreased 60% compared to
in the first
months of 2018.
months of 2018. As a percent of total revenue, gross profit was
per diluted share, in the first
“The business environment in China continued to present broad challenges during the third quarter,” commented Chris Sharng, President of Natural Health Trends Corp. “In addition, protests in Hong Kong posed new complications. As a result, we suspended company-sponsored meetings in Hong Kong as current conditions are not conducive to hosting visitors.”
Mr. Sharng further commented, “Beyond the elements that are not within our control, we remain pleased with our leaders’ abilities to adapt our business strategy and to continue performing under these circumstances. Subsequent to quarter end, we held a successful event in Macau which was traditionally held during the third quarter. Our fourth quarter order volume trends are already improving following this major event which is a promising development. Lastly, in light of the current business environment, we are implementing cost reduction measures to focus resources on our members and markets. We expect to realize an annualized $5.7 million in savings by the first quarter of 2020.”
Balance Sheet and Cash Flow
Net cash used in operating activities was $3.7 million compared to net cash provided by operating activities of $8.8 million in the
. For the first
months of 2019, net cash used in operating activities was
, compared to net cash provided by operating activities of
in the first
months of 2018.
Total cash and cash equivalents were
, down from
as of December 31, 2018.
On October 29, 2019, the Company’s Board of Directors declared a special cash dividend of $0.40 per share on outstanding common stock. The dividend will be payable on November 29, 2019 to stockholders of record as of November 19, 2019.
During the three months ended September 30, 2019, the Company purchased a total of 383,127 shares of its common stock for an aggregate purchase price of $2.9 million, plus transaction costs. As of
, $22.4 million of the stock repurchase program remained available for future purchases, inclusive of related estimated income tax.
Quarter 2019 Financial Results Conference Call
Management will host a conference call to discuss the
quarter 2019 financial results today, Friday November 1, 2019 at 11:30 a.m. Eastern Time. The conference call details are as follows:
Friday, November 1, 2019
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 November 1, 2019 through 11:59 p.m. Eastern Time on November 15, 2019 by
dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13695076.
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.
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 April 26, 2019 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.
Senior Vice President and Chief Financial Officer
Tel (Hong Kong): +852-3107-0800
Tel (U.S.): 310-541-0888
ADDO Investor Relations
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
December 31, 2018
Cash and cash equivalents
Other current assets
Total current assets
Property and equipment, net
Operating lease right-of-use assets
Deferred tax asset
LIABILITIES AND STOCKHOLDERS’ EQUITY
Other accrued expenses
Amounts held in eWallets
Operating lease liabilities
Other current liabilities
Total current liabilities
Income taxes payable
Deferred tax liability
Additional paid-in capital
Accumulated other comprehensive loss
Treasury stock, at cost
Total stockholders’ equity
Total liabilities and stockholders’ equity
NATURAL HEALTH TRENDS CORP.
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
Total operating expenses
Income (loss) from operations
Other income, net
Income (loss) before income taxes
Income tax provision
Net income (loss)
Net income (loss) per common share:
Weighted-average number of common shares outstanding:
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
CASH FLOWS FROM OPERATING ACTIVITIES:
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization
Noncash lease expense
Deferred income taxes
Changes in assets and liabilities:
Net cash provided by (used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of common stock
Net cash used in financing activities
Effect of exchange rates on cash, cash equivalents and restricted cash
Net decrease in cash, cash equivalents and restricted cash
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:
Issuance of treasury stock for employee awards, net
Right-of-use assets obtained in exchange for operating lease liabilities
The above information was disclosed in a filing to the SEC. To see the filing, click here.
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