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HONG KONG, Aug. 07, 2019 (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 second quarter ended June 30, 2019.
Second Quarter 2019 Financial Highlights
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 2019 Financial Highlights
“While we continued to face challenges in China that placed significant pressure on our top-line, we were pleased with the high level of commitment shown by our members through the difficult operating environment,” commented Chris Sharng, President of Natural Health Trends Corp. “As a result, our second quarter revenue was up 21% compared to the first quarter of 2019. Though the Chinese government’s 100-day campaign expired in late April, there has been no official conclusion to formally end the program. As such, we continued our voluntary suspension of member activities in China through the entirety of the second quarter as our cooperation with the Chinese government is a top priority. We continue to believe this proactive approach is the best way to position our company for longer-term success and support the actions taken by the Chinese government to protect Chinese consumers.”
Mr. Sharng further commented, “We are encouraged by our progress in other key markets, especially Latin America, led by Peru; Southeast Asia; India and Europe. Further, we deployed several different promotions throughout the quarter to encourage product purchases which were very well received by our members.”
Balance Sheet and Cash Flow
Second Quarter 2019 Financial Results Conference Call
Management will host a conference call to discuss the second quarter 2019 financial results today, Wednesday, August 7, 2019 at 11:30 a.m. Eastern Time. The conference call details are as follows:
|Date:||Wednesday, August 7, 2019|
|Time:||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 August 7, 2019 through 11:59 p.m. Eastern Time on August 21, 2019 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13691790.
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. 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, 2019||December 31, 2018|
|Cash and cash equivalents||$||108,106||$||132,653|
|Other current assets||6,127||5,369|
|Total current assets||124,576||150,187|
|Property and equipment, net||887||934|
|Operating lease right-of-use assets||3,796||—|
|Deferred tax asset||1,210||1,207|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Other accrued expenses||3,676||6,121|
|Amounts held in eWallets||13,879||14,611|
|Operating lease liabilities||1,741||—|
|Other current liabilities||1,116||1,424|
|Total current liabilities||31,528||43,084|
|Income taxes payable||15,365||16,982|
|Deferred tax liability||187||186|
|Operating lease liabilities||2,128||—|
|Additional paid-in capital||86,249||86,415|
|Accumulated other comprehensive loss||(1,192||)||(1,250||)|
|Treasury stock, at cost||(45,887||)||(39,748||)|
|Total stockholders’ equity||79,352||89,861|
|Total liabilities and stockholders’ equity||$||136,091||$||157,921|
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,|
|Cost of sales||5,407||10,399||10,631||20,620|
|Selling, general and administrative expenses||6,627||8,093||13,942||17,215|
|Total operating expenses||18,025||30,403||34,838||62,505|
|Income (loss) from operations||(4||)||10,108||(2,713||)||20,152|
|Other income, net||373||53||805||216|
|Income (loss) before income taxes||369||10,161||(1,908||)||20,368|
|Income tax provision (benefit)||(28||)||1,138||(382||)||2,521|
|Net income (loss)||$||397||$||9,023||$||(1,526||)||$||17,847|
|Net income (loss) per common share:|
|Weighted-average number of common shares outstanding:|
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
|Six Months Ended June 30,|
|CASH FLOWS FROM OPERATING ACTIVITIES:|
|Net income (loss)||$||(1,526||)||$||17,847|
|Adjustments to reconcile net income (loss) to net cash provided by (used in)
|Depreciation and amortization||189||235|
|Noncash lease expense||914||—|
|Deferred income taxes||(3||)||—|
|Changes in assets and liabilities:|
|Other current assets||(752||)||1,955|
|Other accrued expenses||(1,946||)||1,119|
|Amounts held in eWallets||(765||)||(192||)|
|Operating lease liabilities||(964||)||—|
|Income taxes payable||(1,617||)||(1,657||)|
|Other current liabilities||(318||)||(72||)|
|Net cash provided by (used in) operating activities||(15,059||)||16,490|
|CASH FLOWS FROM INVESTING ACTIVITIES:|
|Purchases of property and equipment||(141||)||(113||)|
|Net cash used in investing activities||(141||)||(113||)|
|CASH FLOWS FROM FINANCING ACTIVITIES:|
|Repurchase of common stock||(6,682||)||—|
|Net cash used in financing activities||(9,418||)||(23,093||)|
|Effect of exchange rates on cash, cash equivalents and restricted cash||73||(381||)|
|Net decrease in cash, cash equivalents and restricted cash||(24,545||)||(7,097||)|
|CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period||135,651||138,478|
|CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period||$||111,106||$||131,381|
|SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:|
|Issuance of treasury stock for employee awards, net||$||377||$||554|
|Right-of-use assets obtained in exchange for operating lease liabilities||$||4,697||$||—|
Senior Vice President and Chief Financial Officer
Natural Health Trends Corp.
Tel (Hong Kong): +852-3107-0800
Tel (U.S.): 310-541-0888
ADDO Investor Relations