Mannatech Reports Fourth Quarter and Year End Results
- 2014 Net Sales increase 7.1%
- 2014 Operating Income increase 167.9%
- 2014 Net Income increase 104.7%
Fourth Quarter Results
Fourth quarter net sales for 2014 were
Net income was
For the three months ended
For the three months ended
For the three months ended
For the three months ended
Year End Results
Annual net sales for the year ended 2014 were
We reported net income for 2014 of
For the year ended
For the year ended
For the year ended
For the year ended
In connection with our loyalty program, we recognize the dollar
equivalent in revenue of loyalty points as the points are applied or
forfeited. During 2014, we recognized
The total number of active new and continuing independent associates and
members who purchased our packs or products during the twelve months
ended
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.
Conference Call
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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 “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.
CONSOLIDATED BALANCE SHEETS – (UNAUDITED) |
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December 31,
2014 |
December 31,
2013 |
|||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 27,999 | $ | 20,395 | ||||
Restricted cash | 1,511 | 1,519 | ||||||
Accounts receivable, net of allowance | 504 | 423 | ||||||
Income tax receivable | 4 | 4 | ||||||
Inventories, net | 10,591 | 13,988 | ||||||
Prepaid expenses and other current assets | 3,069 | 3,061 | ||||||
Deferred commissions | 4,544 | 2,706 | ||||||
Deferred tax assets, net | 1,141 | 1,578 | ||||||
Total current assets | 49,363 | 43,674 | ||||||
Property and equipment, net | 2,481 | 3,170 | ||||||
Construction in progress | 1,622 | 69 | ||||||
Long-term restricted cash | 7,045 | 4,254 | ||||||
Other assets | 3,567 | 3,591 | ||||||
Long-term deferred tax assets, net | 3,320 | 1,303 | ||||||
Total assets | $ | 67,398 | $ | 56,061 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current portion of capital leases | $ | 901 | $ | 704 | ||||
Accounts payable | 4,252 | 4,996 | ||||||
Accrued expenses | 6,356 | 5,796 | ||||||
Commissions and incentives payable | 7,908 | 10,210 | ||||||
Taxes payable | 2,578 | 1,858 | ||||||
Current deferred tax liability | 123 | 114 | ||||||
Deferred revenue | 10,890 | 6,380 | ||||||
Total current liabilities | 33,008 | 30,058 | ||||||
Capital leases, excluding current portion | 852 | 450 | ||||||
Long-term deferred tax liabilities | 26 | 9 | ||||||
Other long-term liabilities | 2,136 | 2,092 | ||||||
Total liabilities | 36,022 | 32,609 | ||||||
Shareholders’ equity: | ||||||||
Preferred stock | — | — | ||||||
Common stock | — | — | ||||||
Additional paid-in capital | 40,672 | 42,592 | ||||||
Retained earnings (deficit) | 2,750 | (3,746 | ) | |||||
Accumulated other comprehensive loss | (109 | ) | (743 | ) | ||||
Treasury stock | (11,937 | ) | (14,651 | ) | ||||
Total shareholders’ equity | 31,376 | 23,452 | ||||||
Total liabilities and shareholders’ equity | $ | 67,398 | $ | 56,061 | ||||
CONSOLIDATED STATEMENTS OF OPERATIONS – (UNAUDITED) (in thousands, except per share information) |
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For the years ended December 31, | ||||||||
2014 | 2013 | |||||||
Net sales | $ | 190,081 | $ | 177,423 | ||||
Cost of sales | 38,350 | 36,097 | ||||||
Gross profit | 151,731 | 141,326 | ||||||
Operating expenses: | ||||||||
Commissions and incentives | 75,240 | 75,633 | ||||||
Selling and administrative expenses | 36,193 | 33,758 | ||||||
Depreciation and amortization | 1,608 | 2,120 | ||||||
Other operating costs | 25,948 | 25,059 | ||||||
Total operating expenses | 138,989 | 136,570 | ||||||
Income from operations | 12,742 | 4,756 | ||||||
Interest income | 121 | 22 | ||||||
Other expense, net | (3,042 | ) | (1,969 | ) | ||||
Income before income taxes | 9,821 | 2,809 | ||||||
Income tax benefit (provision) | (3,325 | ) | 365 | |||||
Net income | $ | 6,496 | $ | 3,174 | ||||
Earnings per common share: |
||||||||
Basic | $ | 2.44 | $ | 1.20 | ||||
Diluted | $ | 2.40 | $ | 1.18 | ||||
Weighted-average common shares outstanding: |
||||||||
Basic | 2,663 | 2,650 | ||||||
Diluted | 2,706 | 2,683 |
Non-GAAP Financial Measures
To supplement our financial results presented in accordance with
generally accepted accounting principles in
2014 | 2013 | Reconciliation – Constant $ | ||||||||
GAAP
|
Non-GAAP
|
GAAP
|
Dollar |
Percent |
||||||
Net Sales | $ 190.1 | $ 191.5 | $ 177.4 | 14.1 | 7.9% | |||||
Product | 155.3 | 156.7 | 143.5 | 13.2 | 9.2% | |||||
Pack | 27.8 | 27.7 | 26.2 | 1.5 | 5.7% | |||||
Other | 7.0 | 7.1 | 7.7 | (0.6) | (7.8)% | |||||
Deferred Revenue | 10.9 | 11.0 | 6.4 | 4.6 | 71.9% | |||||
Gross Profit | 151.7 | 152.5 | 141.3 | 11.2 | 7.9% | |||||
Income/(Loss) from Operations | 12.7 | 12.0 | 4.8 | 7.2 | 150.0% | |||||
The approximate number of new and continuing independent associates and
members who purchased our packs or products during the twelve months
ended
2014 | 2013 | |||||||||||
New | 108,000 | 47.0 | % | 116,000 | 47.3 | % | ||||||
Continuing | 122,000 | 53.0 | % | 129,000 | 52.7 | % | ||||||
Total | 230,000 | 100.0 | % | 245,000 | 100.0 | % |
Source:
Mannatech, Incorporated
Donna Giordano, 972-471-6512
Manager,
Executive Office Administration
ir@mannatech.com
www.mannatech.com