Natural Health Trends Reports Third Quarter 2024 Financial Results
Total net sales increased sequentially and year-over-year during the third quarter of 2024
Improved operating bottom line for three consecutive quarters
Generated cash flows from operations before 2017 Tax Act installment of $514,000 during the first nine months of 2024
Declared a quarterly cash dividend of $0.20 per share
HONG KONG, Oct. 30, 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 September 30, 2024.
Third Quarter 2024 Financial Highlights
Revenue of $10.7 million increased 1% compared to $10.6 million in the third quarter of 2023.
Operating loss was $275,000 compared to $292,000 in the third quarter of 2023.
Net income was $35,000, or breakeven per diluted share, compared to $172,000, or $0.02 per diluted share, in the third quarter of 2023. The decrease was attributable to lower interest income and higher effective tax rate as compared to the third quarter of 2023.
The number of Active Members1 was down 1% to 30,880 at September 30, 2024 compared to 31,110 at June 30, 2024, and decreased 11% compared to 34,660 at September 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 $32.1 million decreased 3% compared to $33.0 million in the first nine months of 2023.
Operating loss improved to $878,000 compared to $1.4 million in the first nine months of 2023.
Net income was $396,000, or $0.03 per diluted share, compared to $210,000, or $0.02 per diluted share, in the first nine months of 2023.
Management Commentary
"Consumer spending in our main market continues to be weak. However, we still managed to achieve sequential growth in net sales, as well as a year-over-year improvement in the third quarter. While the pace of growth is not where we'd like it to be, our customers and leaders continue to demonstrate strong engagement, and we are working closely with them to navigate these changing times with trainings, product roadshows and new products to help drive growth and expand their customer base," commented Chris Sharng, President of Natural Health Trends Corp.
Mr. Sharng continued, "Our ability to adapt, adjust programs, and fine-tune our plans has been instrumental in supporting our customer base while also acting in the best interests of our shareholders. We are maintaining attentive focus on cost control, including expense management, inventory, and product optimization, to ensure the company remains positioned for future success."
Balance Sheet and Cash Flow
Net cash used in operating activities was $3.5 million in the first nine months of 2024 compared to $4.2 million in the first nine 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 $514,000 in the first nine months 2024, versus cash used in operating activities of $1.2 million 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 $46.3 million at September 30, 2024, down from $48.7 million at June 30, 2024.
On October 28, 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 November 22, 2024 to stockholders of record as of November 12, 2024.
Third Quarter 2024 Financial Results Conference Call
Management will host a conference call to discuss the third quarter 2024 financial results today, Wednesday, October 30, 2024 at 11:30 a.m. Eastern Time. The conference call details are as follows:
Date:
Wednesday, October 30, 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:
13749004
Webcast:
https://viavid.webcasts.com/starthere.jsp?ei=1689949&tp_key=eea2c2882e
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 30, 2024 through 11:59 p.m. Eastern Time on November 6, 2024 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13749004.
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.
NATURAL HEALTH TRENDS CORP. CONSOLIDATED BALANCE SHEETS (In thousands, except share data)
September 30, 2024
December 31, 2023
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents
$
22,899
$
56,178
Marketable securities
23,429
—
Inventories
3,684
4,293
Other current assets
3,830
3,758
Total current assets
53,842
64,229
Property and equipment, net
205
266
Operating lease right-of-use assets
2,784
3,319
Restricted cash
38
39
Deferred tax asset
307
369
Other assets
1,115
869
Total assets
$
58,291
$
69,091
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
548
$
990
Income taxes payable
5,032
3,716
Accrued commissions
2,029
2,067
Other accrued expenses
1,350
1,170
Deferred revenue
6,832
6,166
Amounts held in eWallets
3,458
3,945
Operating lease liabilities
1,191
1,146
Other current liabilities
672
784
Total current liabilities
21,112
19,984
Income taxes payable
—
5,054
Deferred tax liability
135
135
Operating lease liabilities
