- For the first time in six years, first quarter orders exceeded the preceding fourth quarter's, up 11%. Compared to a year ago, orders were up 1%.
- Reported positive cash flows from operations during the quarter, first time in five quarters
- Declared a quarterly cash dividend of
$0.20 per share
First Quarter 2024 Financial Highlights
- Revenue of $11.0 million decreased 8% compared to
$11.9 million in the first quarter of 2023. The decrease was entirely due to changes in the differences in deferred revenue between the two periods. Deferred revenue increased$1.0 million in the first quarter this year and remained flat in the comparable period last year. - Operating loss was $365,000 compared to
$394,000 in the first quarter of 2023. - Net income was
$188,000 , or$0 .02 per diluted share, compared to$257,000 , or$0.02 per diluted share, in the first quarter of 2023. - The number of Active Members1 was down 2% to 31,620 at March 31, 2024 compared to 32,410 at
December 31, 2023 , and decreased 18% compared to 38,330 atMarch 31, 2023 .
1
Management Commentary
“Our financial results reflect a
Balance Sheet and Cash Flow
- Net cash provided by operating activities was
$549 ,000 in the first three months of 2024 compared to net cash used in operating activities of$696 ,000 in the first three months of 2023. - Total cash, cash equivalents and marketable securities were
$54 .4 million atMarch 31, 2024 , down from$56 .2 million atDecember 31, 2023 . - On
April 29, 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 May 24, 2024 to stockholders of record as ofMay 14, 2024 .
First Quarter 2024 Financial Results Conference Call
Management will host a conference call to discuss the first quarter 2024 financial results today, Wednesday, May 1, 2024 at 11:30 a.m. Eastern Time. The conference call details are as follows:
Date: | |
Time: | |
Dial-in: | 1-877-407-0789 (Domestic) 1-201-689-8562 (International) |
Conference ID: | 13745331 |
Webcast: | https://viavid.webcasts.com/starthere.jsp?ei=1662841&tp_key=a0bd3854bf |
For those unable to participate during the live broadcast, a replay of the call will also be available from
About
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
CONSOLIDATED BALANCE SHEETS (In thousands, except share data) | ||||||||
(Unaudited) | ||||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 25,825 | $ | 56,178 | ||||
Marketable securities | 28,608 | — | ||||||
Inventories | 4,899 | 4,293 | ||||||
Other current assets | 3,401 | 3,758 | ||||||
Total current assets | 62,733 | 64,229 | ||||||
Property and equipment, net | 241 | 266 | ||||||
Operating lease right-of-use assets | 3,272 | 3,319 | ||||||
Restricted cash | 37 | 39 | ||||||
Deferred tax asset | 397 | 369 | ||||||
Other assets | 959 | 869 | ||||||
Total assets | $ | 67,639 | $ | 69,091 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 749 | $ | 990 | ||||
Income taxes payable | 3,758 | 3,716 | ||||||
Accrued commissions | 2,262 | 2,067 | ||||||
Other accrued expenses | 1,357 | 1,170 | ||||||
Deferred revenue | 7,174 | 6,166 | ||||||
Amounts held in eWallets | 3,727 | 3,945 | ||||||
Operating lease liabilities | 1,199 | 1,146 | ||||||
Other current liabilities | 636 | 784 | ||||||
Total current liabilities | 20,862 | 19,984 | ||||||
Income taxes payable | 5,054 | 5,054 | ||||||
Deferred tax liability | 134 | 135 | ||||||
Operating lease liabilities | 2,219 | 2,318 | ||||||
Total liabilities | 28,269 | 27,491 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock | — | — | ||||||
Common stock | 13 | 13 | ||||||
Additional paid-in capital | 84,732 | 84,695 | ||||||
Accumulated deficit | (19,818 | ) | (17,703 | ) | ||||
Accumulated other comprehensive loss | (1,221 | ) | (1,069 | ) | ||||
(24,336 | ) | (24,336 | ) | |||||
Total stockholders’ equity | 39,370 | 41,600 | ||||||
Total liabilities and stockholders’ equity | $ | 67,639 | $ | 69,091 |
NATURAL HEALTH TRENDS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In thousands, except per share data) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
Net sales | $ | 10,951 | $ | 11,861 | ||||
Cost of sales | 2,912 | 3,031 | ||||||
Gross profit | 8,039 | 8,830 | ||||||
Operating expenses: | ||||||||
Commissions expense | 4,486 | 4,992 | ||||||
Selling, general and administrative expenses | 3,918 | 4,232 | ||||||
Total operating expenses | 8,404 | 9,224 | ||||||
Loss from operations | (365 | ) | (394 | ) | ||||
Other income, net | 563 | 681 | ||||||
Income before income taxes | 198 | 287 | ||||||
Income tax provision | 10 | 30 | ||||||
Net income | $ | 188 | $ | 257 | ||||
Net income per common share: | ||||||||
Basic | $ | 0.02 | $ | 0.02 | ||||
Diluted | $ | 0.02 | $ | 0.02 | ||||
Weighted average common shares outstanding: | ||||||||
Basic | 11,456 | 11,424 | ||||||
Diluted | 11,474 | 11,428 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands) | ||||||||
Three Months Ended | ||||||||
2024 | 2023 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 188 | $ | 257 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 35 | 46 | ||||||
Share-based compensation | 37 | 46 | ||||||
Noncash lease expense | 272 | 280 | ||||||
Deferred income taxes | (32 | ) | (57 | ) | ||||
Changes in assets and liabilities: | ||||||||
Inventories | (640 | ) | (490 | ) | ||||
Other current assets | 189 | (78 | ) | |||||
Other assets | (101 | ) | (18 | ) | ||||
Accounts payable | (239 | ) | 338 | |||||
Income taxes payable | 42 | 40 | ||||||
Accrued commissions | 212 | (465 | ) | |||||
Other accrued expenses | 191 | (76 | ) | |||||
Deferred revenue | 1,029 | 43 | ||||||
Amounts held in eWallets | (208 | ) | (215 | ) | ||||
Operating lease liabilities | (284 | ) | (301 | ) | ||||
Other current liabilities | (142 | ) | (46 | ) | ||||
Net cash provided by (used in) operating activities | 549 | (696 | ) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Purchases of property and equipment | (11 | ) | (7 | ) | ||||
Purchases of marketable securities | (28,514 | ) | — | |||||
Net cash used in investing activities | (28,525 | ) | (7 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Dividends paid | (2,303 | ) | (2,304 | ) | ||||
Net cash used in financing activities | (2,303 | ) | (2,304 | ) | ||||
Effect of exchange rates on cash, cash equivalents and restricted cash | (76 | ) | (91 | ) | ||||
Net decrease in cash, cash equivalents and restricted cash | (30,355 | ) | (3,098 | ) | ||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 56,217 | 69,746 | ||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ | 25,862 | $ | 66,648 | ||||
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
Right-of-use assets obtained in exchange for operating lease liabilities | $ | 251 | $ | (78 | ) | |||
CONTACT:
Senior Vice President and Chief Financial Officer
Tel (
Tel (
investor.relations@nhtglobal.com
Source:
2024 GlobeNewswire, Inc., source