Mannatech Reports Fourth Quarter and Year End Results
Fourth Quarter Results
Fourth quarter net sales for 2013 were
Net sales for
Net sales for
Net sales for
Net income was
Dr.
Year End Results
Annual net sales for 2013 were
During the third quarter of 2013, we implemented a global loyalty
program for our associates and members who purchase products using a
qualified automatic order. Participating associates and members can earn
loyalty points, which can be applied to future purchases. We defer the
dollar equivalent in revenue for these loyalty points until the points
are applied or forfeited. At
Net sales for
Net sales for
Net sales for
We reported net income for 2013 of
The total number of independent associates and members based on a
12-month trailing period was approximately 245,000 and 229,000 as of
each of
Dr.
Non-GAAP Measures
In addition to results presented in accordance with GAAP, this press release and related tables include certain non-GAAP financial measures, including a presentation of constant currency measures. We disclose operating results that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into U.S. dollars, including changes in: Net Sales, Deferred Revenue, Gross Profit, and Income/(Loss) from Operations. The following tables include a full reconciliation of actual non-GAAP financial measures to the related GAAP financial measures.
We believe that these non-GAAP financial measures provide useful information to investors because they are an indicator of the strength and performance of ongoing business operations. The constant currency figures are financial measures used by management to provide investors an additional perspective on trends. Although we believe the above non-GAAP financial measures enhance investors' understanding of its business and performance, these non-GAAP financial measures should not be considered an exclusive alternative to accompanying GAAP financial measures.
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About
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 “anticipate,” “believe,” “will” 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.
| CONSOLIDATED BALANCE SHEETS – (UNAUDITED) | ||||||||
| (in thousands, except share and per share information) | ||||||||
| December 31, | December 31, | |||||||
| 2013 | 2012 | |||||||
| ASSETS | ||||||||
| Cash and cash equivalents | $ | 20,395 | $ | 14,377 | ||||
| Restricted cash | 1,519 | 1,515 | ||||||
| Accounts receivable, net of allowance of $142 and $20 in 2013 and 2012, respectively | 423 | 324 | ||||||
| Income tax receivable | 4 | 884 | ||||||
| Inventories, net | 13,988 | 15,154 | ||||||
| Prepaid expenses and other current assets | 3,061 | 2,487 | ||||||
| Deferred commissions | 2,706 | 562 | ||||||
| Deferred tax assets, net | 1,578 | 561 | ||||||
| Total current assets | 43,674 | 35,864 | ||||||
| Property and equipment, net | 3,239 | 4,833 | ||||||
| Long-term restricted cash | 4,254 | 3,736 | ||||||
| Other assets | 3,591 | 3,187 | ||||||
| Long-term deferred tax assets, net | 1,303 | 502 | ||||||
| Total assets | $ | 56,061 | $ | 48,122 | ||||
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
||||||||
| Current portion of capital leases | $ | 704 | $ | 780 | ||||
| Accounts payable | 4,996 | 4,154 | ||||||
| Accrued expenses | 5,796 | 6,348 | ||||||
| Commissions and incentives payable | 10,210 | 7,935 | ||||||
| Taxes payable | 1,858 | 3,901 | ||||||
| Current deferred tax liability | 114 | 179 | ||||||
| Deferred revenue | 6,380 | 1,486 | ||||||
| Total current liabilities | 30,058 | 24,783 | ||||||
| Capital leases, excluding current portion | 450 | 938 | ||||||
| Other long-term liabilities | 2,101 | 2,180 | ||||||
| Total liabilities | 32,609 | 27,901 | ||||||
| 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, 2,773,972 shares issued and 2,653,913 shares outstanding as of December 31, 2013 and 2,768,972 shares issued and 2,647,735 shares outstanding as of December 31, 2012 | — | — | ||||||
| Additional paid-in capital | 42,592 | 42,614 | ||||||
| Accumulated deficit | (3,746 | ) | (6,920 | ) | ||||
| Accumulated other comprehensive loss | (743 | ) | (677 | ) | ||||
| Less treasury stock, at cost, 120,059 and 121,237 shares in 2013 and 2012, respectively | (14,651 | ) | (14,796 | ) | ||||
| Total shareholders’ equity | 23,452 | 20,221 | ||||||
| Total liabilities and shareholders’ equity | $ | 56,061 | $ | 48,122 | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS – (UNAUDITED) | |||||
| (in thousands, except per share information) | |||||
| For the years ended December 31, | |||||
| 2013 | 2012 | ||||
| Net sales | $177,423 | $173,447 | |||
| Cost of sales | 36,097 | 34,641 | |||
| Gross profit | 141,326 | 138,806 | |||
| Operating expenses: | |||||
| Commissions and incentives | 75,633 | 73,823 | |||
| Selling and administrative expenses | 33,758 | 37,176 | |||
| Depreciation and amortization | 2,120 | 4,755 | |||
| Other operating costs | 25,059 | 24,032 | |||
| Total operating expenses | 136,570 | 139,786 | |||
| Income from operations | 4,756 | (980 | ) | ||
| Interest income | 22 | 50 | |||
| Other income (expense), net | (1,969) | 630 | |||
| Income (loss) before income taxes | 2,809 | (300 | ) | ||
| Income tax benefit (provision) | 365 | (1,088 | ) | ||
| Net income (loss) | $3,174 | $(1,388 | ) | ||
|
Income / (loss) per common share: |
|||||
| Basic |
$1.20 |
$(0.52 | ) | ||
| Diluted | $1.18 | $(0.52 | ) | ||
|
Weighted-average common shares outstanding: |
|||||
| Basic | 2,650 | 2,648 | |||
| Diluted | 2,683 | 2,648 | |||
Non-GAAP Financial Measures
To supplement our financial results presented in accordance with
generally accepted accounting principles in
| 2013 | 2012 | Reconciliation – Constant $ | ||||||||||||
| Total $ | Constant $ |
|
Total $ |
Dollar | Percent | |||||||||
| Net Sales | $ |
177.4 |
$ |
182.4 |
$ |
173.4 |
9.0 |
5.2 |
% | |||||
| Product | 143.5 | 147.9 | 155.8 |
(7.9) |
(5.1) |
% | ||||||||
| Pack | 26.2 | 26.5 | 11.4 | 15.1 |
132.5 |
% | ||||||||
| Other | 7.7 |
8.0 |
6.2 | 1.8 |
29.0 |
% | ||||||||
| Deferred Revenue | 6.4 | 6.6 | 1.5 | 5.1 |
340.0 |
% | ||||||||
| Gross Profit | 141.3 | 145.2 | 138.8 | 6.4 |
4.6 |
% | ||||||||
| Income/(Loss) from Operations | 4.8 | 4.9 |
(1.0) |
5.9 |
590.0 |
% | ||||||||
The approximate number of new and continuing independent associates and
members who purchased our packs or products during the twelve months
ended
| 2013 | 2012 | ||||||||||
| New | 116,000 |
47.0 |
% | 97,000 |
42.0 |
% | |||||
| Continuing | 129,000 |
53.0 |
% | 132,000 |
58.0 |
% | |||||
| Total | 245,000 |
100.0 |
% | 229,000 |
100.0 |
% | |||||
Source:
Mannatech, Incorporated
Donna Giordano, 972-471-6512
Manager,
Executive Office Administration
ir@mannatech.com
www.mannatech.com