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Mannatech Reports Fourth Quarter and Year End Results
Positive EBITDA for 2010

COPPELL, Texas, Mar 09, 2011 (BUSINESS WIRE) --

Mannatech, Incorporated(NASDAQ: MTEX), a leading developer and provider of nutritional supplements and skin care products based on Real Food Technology(R) solutions, today reported a net loss of $2.7 million or $0.10 cents per diluted share for the fourth quarter ending December 31, 2010, compared to net income of $2.2 million or $0.08 cents per diluted share for the fourth quarter of 2009.

Fourth quarter net sales for 2010 were $54.9 million, a decrease of 21.7% compared to $70.1 million in the fourth quarter of 2009. North American sales declined 24.4% to $27.5 million compared to $36.4 million in the fourth quarter of 2009. International sales of $27.4 million decreased 18.7% compared to $33.7 million in the fourth quarter of 2009. Fourth quarter 2010 results included essentially level sales compared to third quarter 2010 volumes, and a fourth quarter operating deficit of $2.8 million improved by $0.9 million versus the prior quarter.

Mannatech successfully launched operations in Mexico on January 24, 2011; pre-opening opportunity meetings and extensive road shows were held during the fourth quarter as well as in the January leading up to the actual launch date.

Dr. Robert Sinnott, Co-CEO & chief science officer, commented, "With the success of the Mexico launch, Mannatech is once again firmly committed to continuing prudent international expansion. We wish to provide both the great products and the significant opportunity offered by Mannatech to everyone around the world."

Stephen Fenstermacher, Co-CEO & chief financial officer, said, "We have been highly focused on returning the company to stability in order to provide a solid platform for growth to our independent Associates and shareholders alike. Our results throughout 2010 have made progress toward achieving that goal, which was met in recording positive EBITDA(1) in the fourth quarter."

Annual sales for 2010 were $228.1 million, down 21.3% from $289.7 million for the full year 2009. The company reported a net loss for the full year of $10.6 million, an improvement of $6.8 million compared to the full year net loss of $17.4 million in 2009. Pre-tax results for 2010 were improved by $13.0 million despite the sales decline. The loss per share of $0.40 for the full year 2010 improved by $0.26 compared to the loss per share of $0.66 for the full year 2009. Annual 2010 EBITDA results were $0.3 million, compared to negative EBITDA of $12.2 million in 2009. Pre-opening expenses of $1.1 million were incurred in 2010 in preparation for the launch of Mexico, largely in the second half of the year.

New independent Associates and Members for the full year 2010 were 89,000 compared to 145,000 in 2009. New independent Associates and Members totaled 23,196 in the fourth quarter of 2010, compared to 27,527 in the fourth quarter of 2009. Total independent Associate and Member count based on a 12-month trailing period was approximately 403,000 as of December 31, 2010 as compared to 513,000 as of December 31, 2009.

Conference Call

Mannatech will hold a conference call and webcast to discuss this announcement with investors on Thursday, March 10, 2011 at 9:00 a.m. Central Standard Time, 10:00 a.m. Eastern Standard Time. Investors may listen to the call by accessing Mannatech's website at www.mannatech.com.

_________________________

(1) To supplement Mannatech's consolidated financial statements presented in accordance with the generally accepted accounting principles ("GAAP"), in this press release Mannatech uses the non-GAAP financial measure of EBITDA (defined by the company as earnings before interest, taxes, depreciation and amortization). This measure is not in accordance with, or an alternative to, GAAP. Mannatech's management reviews this non-GAAP measure internally to evaluate its performance and manage its operations. Mannatech believes that the inclusion of EBITDA results provides investors useful and important information regarding Mannatech's operating results.

The following is a tabular presentation of the non-GAAP financial measure EBITDA, including a reconciliation to GAAP net income (loss), which Mannatech believes to be the most directly comparable GAAP financial measure.

Three months ended
December 31,
Twelve months ended
December 31,
2010 2009 2010 2009
Net income (loss) $ (2,742 ) $ 2,151 $ (10,616 ) $ (17,368 )
Interest income (172 ) (291 ) (173 ) (473 )
Income taxes 558 (1,922 ) (424 ) (6,707 )
Depreciation and amortization 2,826 2,976 11,517 12,333
EBITDA $ 470 $ 2,914 $ 304 $ (12,215 )

Many of Mannatech's products are based on Real Food Technology solutions, which provide consumers with products that contain standardized levels of natural and plant-sourced nutrients. Food-sourced ingredients are chosen from those scientifically proven to most benefit the human body.

Individuals interested in Mannatech's products or in exploring its business opportunity can learn more at mannatech.com.

About Mannatech

Mannatech, Incorporated, develops high-quality health, weight and fitness, and skin care products that are based on the solid foundation of nutritional science and development standards. These proprietary products are available through independent sales Associates around the globe including the United States, Canada, South Africa, Australia, New Zealand, Austria, Denmark, Germany, Norway, Sweden, the Netherlands, the United Kingdom, Japan, Taiwan, Singapore, the Republic of Korea and Mexico. For more information, visit mannatech.com.

Please Note: This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of phrases or terminology such as "intend" or other similar words or the negative of such terminology. Similarly, descriptions of Mannatech's objectives, strategies, plans, goals or targets contained herein are also considered forward-looking statements. Mannatech believes this release should be read in conjunction with all of its filings with the United States Securities and Exchange Commission and cautions its readers that these forward-looking statements are subject to certain events, risks, uncertainties, and other factors. Some of these factors include, among others, Mannatech's inability to attract and retain independent associates and members, increases in competition, litigation, regulatory changes, and its planned growth into new international markets. Although Mannatech believes that the expectations, statements, and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q, and other filings filed with the United States Securities and Exchange Commission, including its current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.

Net Sales in Dollars and as a Percentage of Consolidated Net Sales

(In millions, except percentages)

For the three months ended December 31,
2010 2009 Dollar
change
Percentage
change
United States $ 23.0 42.0 % $ 31.0 44.2 % $ (8.0 ) (25.8

)%

Japan 8.5 15.5 % 10.6 15.1 % (2.1 ) (19.8

)%

Republic of Korea 5.8 10.5 % 7.2 10.3 % (1.4 ) (19.4

)%

Australia 5.2 9.5 % 6.2 8.8 % (1.0 ) (16.1

)%

Canada 4.5 8.2 % 5.4 7.8 % (0.9 ) (16.7

)%

South Africa 3.0 5.3 % 3.8 5.4 % (0.8 ) (21.1

)%

Taiwan 1.4 2.5 % 1.8 2.6 % (0.4 ) (22.2

)%

United Kingdom 0.7 1.3 % 0.9 1.3 % (0.2 ) (22.2

)%

New Zealand 0.6 1.1 % 1.1 1.6 % (0.5 ) (45.5

)%

Singapore 0.6 1.1 % 0.5 0.7 % 0.1 20.0

%

Germany 0.5 0.9 % 0.7 1.0 % (0.2 ) (28.6

)%

Norway(1) 0.5 0.9 % 0.3 0.4 % 0.2 66.7

%

Austria(1) 0.2 0.4 % 0.2 0.3 % -- --

%

The Netherlands(1) 0.2 0.4 % 0.1 0.1 % 0.1 100.0

%

Denmark 0.1 0.2 % 0.2 0.3 % (0.1 ) (50.0

)%

Sweden(1) 0.1 0.2 % 0.1 0.1 % -- --

%

Totals $ 54.9 100 % $ 70.1 100 % $ (15.2 ) (21.7

)%

For the year ended December 31,
2010 2009 Dollar
change
Percentage
change
United States $ 100.8 44.1 % $ 140.7 48.6 % $ (39.9 ) (28.4

)%

Japan 34.2 15.0 % 42.0 14.5 % (7.8 ) (18.6

)%

Republic of Korea 22.0 9.6 % 26.4 9.1 % (4.4 ) (16.7

)%

Australia 20.0 8.8 % 22.9 7.9 % (2.9 ) (12.7

)%

Canada 18.5 8.1 % 23.0 7.9 % (4.5 ) (19.6

)%

South Africa 12.0 5.3 % 13.2 4.6 % (1.2 ) (9.1

)%

Taiwan 6.4 2.8 % 6.6 2.3 % (0.2 ) (3.0

)%

New Zealand 3.1 1.4 % 4.3 1.5 % (1.2 ) (27.9

)%

United Kingdom 2.4 1.1 % 3.3 1.0 % (0.9 ) (27.3

)%

Germany 2.3 1.0 % 3.2 1.1 % (0.9 ) (28.1

)%

Singapore 2.1 0.9 % 1.5 0.5 % 0.6 40.0

%

Norway(1) 1.6 0.7 % 0.3 0.1 % 1.3 433.3

%

Austria(1) 1.1 0.5 % 0.3 0.1 % 0.8 266.7

%

The Netherlands(1) 0.6 0.3 % 0.2 0.1 % 0.4 200.0

%

Denmark 0.5 0.2 % 1.6 0.6 % (1.1 ) (68.8

)%

Sweden(1) 0.5 0.2 % 0.2 0.1 % 0.3 150.0

%

Totals $ 228.1 100 % $ 289.7 100 % $ (61.6 ) (21.3 )%

_________________________

(1) Austria, the Netherlands, Norway, and Sweden began operations in September 2009.

MANNATECH, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share information)

December 31,
2010 2009

ASSETS

Cash and cash equivalents $ 21,584 $ 17,367
Restricted cash 1,265 1,288
Accounts receivable, net of allowance of $21 and $16 in 2010 and 2009, respectively 416 664
Income tax receivable 917 8,075
Inventories, net 24,070 31,290
Prepaid expenses and other current assets 4,356 3,139
Deferred tax assets 2,607 2,662
Total current assets 55,215 64,485
Property and equipment, net 18,449 27,144
Construction in progress 524 317
Long-term restricted cash 3,532 7,201
Other assets 3,054 2,503
Long-term deferred tax assets 649 652
Total assets $ 81,423 $ 102,302

LIABILITIES AND SHAREHOLDERS' EQUITY

Current portion of capital leases $ 1,328 $ 847
Accounts payable 5,534 11,319
Accrued expenses 10,318 14,231
Commissions and incentives payable 9,166 10,624
Taxes payable 3,721 2,577
Current deferred tax liability 243 274
Deferred revenue 1,930 2,807
Total current liabilities 32,240 42,679
Capital leases, excluding current portion 1,204 1,068
Long-term deferred tax liabilities 1,903 3,923
Other long-term liabilities 4,996 3,348
Total liabilities 40,343 51,018
Commitments and contingencies
Shareholders' equity:
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding -- --
Common stock, $0.0001 par value, 99,000,000 shares authorized, 27,697,560 shares issued and 26,490,466 shares outstanding as of December 31, 2010 and 27,687,882 shares issued and 26,480,788 shares outstanding as of December 31, 2009 3 3
Additional paid-in capital 42,049 41,442
Retained earnings 15,127 25,743
Accumulated other comprehensive loss (1,308 ) (1,113 )
Less treasury stock, at cost, 1,207,094 shares in 2010 and 2009 (14,791 ) (14,791 )
Total shareholders' equity 41,080 51,284
Total liabilities and shareholders' equity $ 81,423 $ 102,302

MANNATECH, INCORPORATED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS - (UNAUDITED)

(in thousands, except per share information)

Three months ended
December 31,
Twelve months ended
December 31,
2010 2009 2010 2009
Net sales $ 54,951 $ 70,065 $ 228,088 $ 289,705
Cost of sales 8,114 10,869 32,754 46,813
Commissions and incentives 22,702 31,002 97,319 146,415
30,816 41,871 130,073 193,228
Gross profit 24,135 28,194 98,015 96,477
Operating expenses:
Selling and administrative 15,078 16,594 62,657 69,997
Depreciation and amortization 2,826 2,976 11,517 12,333
Other operating 9,030 8,910 35,322 39,741
Total operating expenses 26,934 28,480 109,496 122,071
Loss from operations (2,799 ) (286 ) (11,481 ) (25,594 )
Interest income 172 291 173 473
Other income, net 443 224 268 1,046
Income (loss) before income taxes (2,184 ) 229 (11,040 ) (24,075 )
(Provision) benefit for income taxes (558 ) 1,922 424 6,707
Net income (loss) $ (2,742 ) $ 2,151 $ (10,616 ) $ (17,368 )
Earnings (loss) per share:
Basic $ (0.10 ) $ 0.08 $ (0.40 ) $ (0.66 )
Diluted $ (0.10 ) $ 0.08 $ (0.40 ) $ (0.66 )
Weighted-average common shares outstanding:
Basic 26,490 26,481 26,488 26,467
Diluted 26,490 26,530 26,488 26,467

The number of new and continuing independent associates and members who purchased our packs or products during the twelve months ended December 31, were as follows:

2010 2009
New 89,000 22 % 145,000 28 %
Continuing 314,000 78 % 368,000 72 %
Total 403,000 100 % 513,000 100 %

SOURCE: Mannatech, Incorporated

for Mannatech, Incorporated
Allison Lowe Burum, 972-499-6631
Allison.Lowe@hck2.com
ir@mannatech.com