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NATURAL HEALTH TRENDS ANNOUNCES SEC FILINGS AND FINANCIAL RESULTS
DALLAS, TX, November 14, 2011 -- Natural Health Trends Corp. (Pink Sheets: NHTC) announced today that it has filed with the Securities and Exchange Commission periodic reports covering periods ended after September 30, 2009, including a comprehensive Annual Report on Form 10-K for each of the fiscal years ended December 31, 2009 and 2010 (in lieu of filing separate reports for each of those years), and separate Quarterly Reports on Form 10-Q for each of the quarters ended March 31, 2011 through September 30, 2011. The Company does not intend to file separate Quarterly Reports on Form 10-Q for any of the quarters ended March 31, 2010 through September 30, 2010, because that information is included in the comprehensive Annual Report.
Focusing on its most recent results, the Company announced $1.8 million of net income, or $0.17 income per share, on $22.9 million of sales during the first nine months of 2011, compared to $2.1 million of net loss, or $0.20 loss per share, on $17.4 million during the comparable period in 2010. Year on year sales increased 32%, while selling, general and administrative expenses decreased 15%.
Chris Sharng, president of Natural Health Trends, said, “In the last two years, we have completely changed our culture and re-built a competitive business model based on dedicated field leaders, enhanced commission structure, systemic training, attentive services, effective promotions and high-quality products. Our operating costs are way down after aggressive restructuring and will enable us to benefit from revived revenue, particularly in Greater China.”
“The third quarter’s results were bolstered by our 10th anniversary celebration and shipments of orders received in the prior quarter. Our business is still expected to be significantly influenced by seasonality factors, such as the Chinese New Year, the Chinese Golden Week (in early October) and the summertime. The cash we generate will have to be re-invested in the business to support existing operations and pursue opportunities we have in our markets.”
About Natural Health Trends Corp.
Natural Health Trends Corp. 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, and management encourages interested parties to register for updated corporate information via email on the company’s home page, www.naturalhealthtrendscorp.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this release do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption “Risk Factors” in our Annual Report on Form 10-K filed on November 14, 2011, with the Securities and Exchange Commission. We assume 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)
|
December 31, 2010 |
|
March 31, 2011 |
|
June 30, 2011 |
|
September 30, 2011 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
$648 |
|
$958 |
|
$1,437 |
|
$1,727 |
Restricted cash |
422 |
|
495 |
|
500 |
|
496 |
Accounts receivable |
105 |
|
161 |
|
133 |
|
91 |
Inventories, net |
751 |
|
715 |
|
1,193 |
|
1,105 |
Other current assets |
639 |
|
984 |
|
1,235 |
|
576 |
Total current assets |
2,565 |
|
3,313 |
|
4,498 |
|
3,995 |
Property and equipment, net |
203 |
|
174 |
|
158 |
|
131 |
Goodwill |
1,764 |
|
1,764 |
|
1,764 |
|
1,764 |
Intangible assets, net |
200 |
|
– |
|
– |
|
– |
Restricted cash |
225 |
|
231 |
|
237 |
|
217 |
Other assets |
406 |
|
321 |
|
336 |
|
237 |
Total assets |
$5,363 |
|
$5,803 |
|
$6,993 |
|
$6,344 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ DEFICIT |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Accounts payable |
$3,115 |
|
$3,130 |
|
$2,614 |
|
$2,452 |
Income taxes payable |
330 |
|
341 |
|
376 |
|
325 |
Accrued distributor commissions |
723 |
|
694 |
|
727 |
|
1,031 |
Other accrued expenses |
1,792 |
|
1,680 |
|
1,702 |
|
1,086 |
Deferred revenue |
1,029 |
|
1,633 |
|
2,696 |
|
1,458 |
Deferred tax liability |
178 |
|
177 |
|
177 |
|
177 |
Advance from related party |
4 |
|
237 |
|
237 |
|
123 |
Other current liabilities |
1,013 |
|
1,097 |
|
1,019 |
|
1,046 |
Total liabilities |
8,184 |
|
8,989 |
|
9,548 |
|
7,698 |
Commitments and contingencies |
|
|
|
|
|
|
|
Stockholders’ deficit: |
|
|
|
|
|
|
|
Natural Health Trends stockholders’ deficit: |
|
|
|
|
|
|
|
Preferred stock |
124 |
|
124 |
|
124 |
|
124 |
Common stock |
11 |
|
11 |
|
11 |
|
11 |
Additional paid-in capital |
80,414 |
|
80,428 |
|
80,449 |
|
80,471 |
Accumulated deficit |
(83,643) |
|
(84,115) |
|
(83,446) |
|
(81,813) |
Accumulated other comprehensive income: |
|
|
|
|
|
|
|
Foreign currency translation adjustments |
366 |
|
469 |
|
427 |
|
(39) |
Total Natural Health Trends stockholders’ deficit |
(2,728) |
|
(3,083) |
|
(2,435) |
|
(1,246) |
Noncontrolling interest |
(93) |
|
(103) |
|
(120) |
|
(108) |
Total stockholders’ deficit |
(2,821) |
|
(3,186) |
|
(2,555) |
|
(1,354) |
Total liabilities and stockholders’ deficit |
$5,363 |
|
$5,803 |
|
$6,993 |
|
$6,344 |
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In Thousands, Except Per Share Data)
|
Three Months Ended March 31, |
|
Three Months Ended
June 30, |
|
2010 |
|
2011 |
|
2010 |
|
2011 |
|
|
|
|
|
|
|
|
Net sales |
$6,233 |
|
$5,175 |
|
$5,935 |
|
$7,208 |
Cost of sales |
1,831 |
|
1,529 |
|
1,679 |
|
1,977 |
Gross profit |
4,402 |
|
3,646 |
|
4,256 |
|
5,231 |
Operating expenses: |
|
|
|
|
|
|
|
Distributor commissions |
2,252 |
|
1,762 |
|
1,980 |
|
2,714 |
Selling, general and administrative expenses |
2,676 |
|
2,030 |
|
2,716 |
|
1,836 |
Depreciation and amortization |
312 |
|
232 |
|
406 |
|
26 |
Total operating expenses |
5,240 |
|
4,024 |
|
5,102 |
|
4,576 |
Income (loss) from operations |
(838) |
|
(378) |
|
(846) |
|
655 |
Other income (expense), net: |
|
|
|
|
|
|
|
Loss on foreign exchange |
20 |
|
(98) |
|
260 |
|
25 |
Interest income |
– |
|
1 |
|
7 |
|
1 |
Interest expense |
(9) |
|
(1) |
|
(1) |
|
– |
Other |
(2) |
|
3 |
|
47 |
|
– |
Total other income (expense), net |
9 |
|
(95) |
|
313 |
|
26 |
Income (loss) before income taxes |
(829) |
|
(473) |
|
(533) |
|
681 |
Income tax provision (benefit) |
11 |
|
7 |
|
(28) |
|
13 |
Net income (loss) |
(840) |
|
(480) |
|
(505) |
|
668 |
Plus: Net loss attributable to the noncontrolling interest |
7 |
|
8 |
|
– |
|
1 |
Net income (loss) attributable to Natural Health Trends |
(833) |
|
(472) |
|
(505) |
|
669 |
|
|
|
|
|
|
|
|
Preferred stock dividends |
(4) |
|
(4) |
|
(4) |
|
(4) |
Net income (loss) attributable to common stockholders of Natural Health Trends |
$(837) |
|
$(476) |
|
$(509) |
|
$665 |
|
|
|
|
|
|
|
|
Income (loss) per share of Natural Health Trends – basic and diluted |
$(0.08) |
|
$(0.04) |
|
$(0.05) |
|
$0.06 |
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding – basic |
10,418 |
|
10,635 |
|
10,485 |
|
10,675 |
Weighted-average number of shares outstanding – diluted |
10,418 |
|
10,635 |
|
10,485 |
|
10,706 |
|
Three Months Ended September 30, |
|
Nine Months Ended
September 30, |
|
2010 |
|
2011 |
|
2010 |
|
2011 |
|
|
|
|
|
|
|
|
Net sales |
$5,216 |
|
$10,562 |
|
$17,384 |
|
$22,945 |
Cost of sales |
1,565 |
|
2,536 |
|
5,075 |
|
6,042 |
Gross profit |
3,651 |
|
8,026 |
|
12,309 |
|
16,903 |
Operating expenses: |
|
|
|
|
|
|
|
Distributor commissions |
2,081 |
|
4,166 |
|
6,313 |
|
8,642 |
Selling, general and administrative expenses |
2,194 |
|
2,613 |
|
7,586 |
|
6,479 |
Depreciation and amortization |
249 |
|
23 |
|
967 |
|
281 |
Total operating expenses |
4,524 |
|
6,802 |
|
14,866 |
|
15,402 |
Income (loss) from operations |
(873) |
|
1,224 |
|
(2,557) |
|
1,501 |
Other income, net: |
|
|
|
|
|
|
|
Loss on foreign exchange |
141 |
|
428 |
|
421 |
|
355 |
Interest income |
– |
|
1 |
|
7 |
|
3 |
Interest expense |
(1) |
|
(13) |
|
(11) |
|
(14) |
Other |
24 |
|
9 |
|
69 |
|
12 |
Total other income, net |
164 |
|
425 |
|
486 |
|
356 |
Income (loss) before income taxes |
(709) |
|
1,649 |
|
(2,071) |
|
1,857 |
Income tax provision |
29 |
|
16 |
|
12 |
|
36 |
Net income (loss) |
(738) |
|
1,633 |
|
(2,083) |
|
1,821 |
Plus: Net (income) loss attributable to the noncontrolling interest |
(4) |
|
– |
|
3 |
|
9 |
Net income (loss) attributable to Natural Health Trends |
(742) |
|
1,633 |
|
(2,080) |
|
1,830 |
|
|
|
|
|
|
|
|
Preferred stock dividends |
(4) |
|
(4) |
|
(12) |
|
(12) |
Net income (loss) attributable to common stockholders of Natural Health Trends |
$(746) |
|
$1,629 |
|
$(2,092) |
|
$1,818 |
|
|
|
|
|
|
|
|
Income (loss) per share of Natural Health Trends – basic and diluted |
$(0.07) |
|
$0.15 |
|
$(0.20) |
|
$0.17 |
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding – basic |
10,536 |
|
10,732 |
|
10,480 |
|
10,669 |
Weighted-average number of shares outstanding – diluted |
10,536 |
|
10,898 |
|
10,480 |
|
10,699 |
Contact:
Natural Health Trends Corp.
[email protected]
SOURCE: Natural Health Trends Corp.
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