Mannatech Reports Third Quarter 2012 Financial Results
In achieving net income of
Net sales for the third quarter of 2012 were
Recruiting increased 38.4% as compared to the third quarter of 2011. New
independent associates and members for the third quarter of 2012 were
27,610 compared to 19,950 in 2011. Total active independent associates
and members were approximately 233,000 as of the 12-month trailing
period ended
Dr.
Conference Call
Individuals interested in Mannatech’s products or in exploring its business opportunity can learn more at Mannatech.com.
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,” “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, INCORPORATED AND SUBSIDIARIES | |||||||||||
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CONSOLIDATED BALANCE SHEETS – (UNAUDITED) |
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(in thousands, except share and per share amounts) |
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September 30, 2012 |
December 31, 2011 |
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| ASSETS | (unaudited) | ||||||||||
| Cash and cash equivalents | $ | 12,781 | $ | 18,057 | |||||||
| Restricted cash | 1,513 | 1,263 | |||||||||
| Accounts receivable, net of allowance of $30 and $22 in 2012 and 2011, respectively | 310 | 304 | |||||||||
| Income tax receivable | 891 | 888 | |||||||||
| Inventories, net | 18,088 | 17,786 | |||||||||
| Prepaid expenses and other current assets | 2,149 | 2,497 | |||||||||
| Deferred tax assets | 994 | 936 | |||||||||
| Total current assets | 36,726 | 41,731 | |||||||||
| Property and equipment, net | 5,449 | 9,566 | |||||||||
| Construction in progress | 4 | — | |||||||||
| Long-term restricted cash | 3,614 | 3,386 | |||||||||
| Other assets | 3,270 | 2,815 | |||||||||
| Long-term deferred tax assets | 810 | 772 | |||||||||
| Total assets | $ | 49,873 | $ | 58,270 | |||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
| Current portion of capital leases | $ | 636 | $ | 852 | |||||||
| Accounts payable | 4,899 | 4,825 | |||||||||
| Accrued expenses | 7,755 | 10,514 | |||||||||
| Commissions and incentives payable | 6,422 | 8,567 | |||||||||
| Taxes payable | 2,330 | 3,364 | |||||||||
| Current deferred tax liability | 203 | 185 | |||||||||
| Deferred revenue | 2,187 | 1,569 | |||||||||
| Total current liabilities | 24,432 | 29,876 | |||||||||
| Capital leases, excluding current portion | 1,006 | 1,358 | |||||||||
| Long-term deferred tax liabilities | 2 | 1 | |||||||||
| Other long-term liabilities | 4,800 | 5,382 | |||||||||
| Total liabilities | 30,240 | 36,617 | |||||||||
| 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, | |||||||||||
| 2,768,972 shares issued and 2,647,735 shares outstanding as of | |||||||||||
| September 30, 2012 and 2,769,756 shares issued and 2,648,518 | |||||||||||
| shares outstanding as of December 31, 2011 | — | — | |||||||||
| Additional paid-in capital | 42,572 | 42,408 | |||||||||
| Accumulated deficit | (7,174 | ) | (5,532 | ) | |||||||
| Accumulated other comprehensive loss | (969 | ) | (427 | ) | |||||||
| Less treasury stock, at cost, 121,237 shares in 2012 and 2011 | (14,796 | ) | (14,796 | ) | |||||||
| Total shareholders’ equity | 19,633 | 21,653 | |||||||||
| Total liabilities and shareholders’ equity | $ | 49,873 | $ | 58,270 | |||||||
| MANNATECH, INCORPORATED AND SUBSIDIARIES | |||||||||||||||||||
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CONSOLIDATED STATEMENTS OF OPERATIONS – (UNAUDITED) |
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(in thousands, except per share information) |
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Three months ended September 30, |
Nine months ended September 30, |
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| 2012 | 2011 | 2012 | 2011 | ||||||||||||||||
| Net sales | $ | 43,049 | $ | 50,520 | $ | 131,162 | $ | 152,782 | |||||||||||
| Cost of sales | 6,755 | 7,407 | 20,038 | 22,164 | |||||||||||||||
| Commissions and incentives | 18,658 | 22,041 | 56,280 | 66,644 | |||||||||||||||
| 25,413 | 29,448 | 76,318 | 88,808 | ||||||||||||||||
| Gross profit | 17,636 | 21,072 | 54,844 | 63,974 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Selling and administrative | 10,516 | 12,373 | 33,793 | 43,202 | |||||||||||||||
| Depreciation and amortization | 703 | 2,644 | 4,082 | 8,132 | |||||||||||||||
| Other operating costs | 5,328 | 7,627 | 19,342 | 23,439 | |||||||||||||||
| Total operating expenses | 16,547 | 22,644 | 57,217 | 74,773 | |||||||||||||||
| Income (loss) from operations | 1,089 | (1,572 | ) | (2,373 | ) | (10,799 | ) | ||||||||||||
| Interest income (expense) | 6 | (4 | ) | (26 | ) | (3 | ) | ||||||||||||
| Other income (expense), net | 455 | (1,557 | ) | 542 | (1,094 | ) | |||||||||||||
| Income (loss) before income taxes | 1,550 | (3,133 | ) | (1,857 | ) | (11,896 | ) | ||||||||||||
| Provision for income taxes | 663 | (530 | ) | 215 | (1,795 | ) | |||||||||||||
| Net income (loss) | $ | 2,213 | $ | (3,663 | ) | $ | (1,642 | ) | $ | (13,691 | ) | ||||||||
| Net income (loss) per share: | |||||||||||||||||||
| Basic | $ | .84 | $ | (1.38 | ) | $ | (.62 | ) | $ | (5.17 | ) | ||||||||
| Diluted | $ | .83 | $ | (1.38 | ) | $ | (.62 | ) | $ | (5.17 | ) | ||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||
| Basic | 2,648 | 2,649 | 2,648 | 2,649 | |||||||||||||||
| Diluted | 2,681 | 2,649 | 2,648 | 2,649 | |||||||||||||||
The approximate number of new and continuing associates who purchased
our packs or products during the twelve months ended
| 2012 | 2011 | |||||||||||||||
| New | 95,000 | 40.8 | % | 82,000 | 34.3 | % | ||||||||||
| Continuing | 138,000 | 59.2 | % | 157,000 | 65.7 | % | ||||||||||
| Total | 233,000 | 100.0 | % | 239,000 | 100.0 | % | ||||||||||
Source:
Mannatech, Incorporated
Donna Giordano, 972-471-6512
Manager,
Executive Office Administration
ir@mannatech.com
Mannatech.com