Mannatech Reports Third Quarter 2019 Financial Results
Third Quarter Results
Third quarter net sales for 2019 were
For the nine-month period ending
For the three months ended
Other operating costs, decreased by
Income from operations was
For the three months ended
Net loss was
The approximate number of new and continuing active independent associates and preferred customers who purchased our products or paid associate fees during the twelve months ended
Non-GAAP Measures
In addition to results presented in accordance with GAAP, this press release and related tables include certain non-GAAP financial measures, which reconcile net income (loss), as reported to net earnings, as adjusted. This presentation isolates the effects of some items that vary from period to period without any correlation to core operating performance and eliminates certain items that management believes do not reflect the Company’s operations and underlying operational performance. Please see Schedule A: Reconciliation of Non-GAAP Financial Measures (Net Earnings, as Adjusted).
Safe Harbor statement
Forward-looking statements generally can be identified by the use of phrases or terminologies such as “may,” “will,” “should,” “could,” “would,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “approximates,” “predicts,” “projects,” “hopes,” “potential,” and “continues” or other similar words or the negative of such terminology.
We caution readers that such forward-looking statements are subject to certain events, risks, uncertainties, and other factors and speak only as of today. We also refer our readers to review our
Individuals interested in
MANNATECH, INCORPORATED AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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(in thousands, except share and per share amounts) |
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ASSETS |
September 30,
|
|
December 31,
|
||||
Cash and cash equivalents |
$ |
25,753 |
|
|
$ |
21,845 |
|
Restricted cash |
1,452 |
|
|
1,514 |
|
||
Accounts receivable, net of allowance of $740 and $770 in 2019 and 2018, respectively |
176 |
|
|
106 |
|
||
Income tax receivable |
119 |
|
|
291 |
|
||
Inventories, net |
12,162 |
|
|
12,821 |
|
||
Prepaid expenses and other current assets |
1,937 |
|
|
3,361 |
|
||
Deferred commissions |
2,356 |
|
|
2,449 |
|
||
Total current assets |
43,955 |
|
|
42,387 |
|
||
Property and equipment, net |
5,563 |
|
|
5,860 |
|
||
Construction in progress |
830 |
|
|
904 |
|
||
Long-term restricted cash |
5,096 |
|
|
7,225 |
|
||
Other assets |
10,433 |
|
|
3,894 |
|
||
Long-term deferred tax assets, net |
929 |
|
|
1,928 |
|
||
Total assets |
$ |
66,806 |
|
|
$ |
62,198 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Current portion of finance leases |
$ |
99 |
|
|
$ |
75 |
|
Accounts payable |
4,675 |
|
|
6,724 |
|
||
Accrued expenses |
10,193 |
|
|
5,995 |
|
||
Commissions and incentives payable |
10,335 |
|
|
12,189 |
|
||
Taxes payable |
3,099 |
|
|
2,655 |
|
||
Current notes payable |
715 |
|
|
702 |
|
||
Deferred revenue |
5,702 |
|
|
5,274 |
|
||
Total current liabilities |
34,818 |
|
|
33,614 |
|
||
Finance leases, excluding current portion |
201 |
|
|
72 |
|
||
Long-term deferred tax liabilities |
3 |
|
|
3 |
|
||
Long-term notes payable |
495 |
|
|
883 |
|
||
Other long-term liabilities |
6,644 |
|
|
2,302 |
|
||
Total liabilities |
42,161 |
|
|
36,874 |
|
||
|
|
|
|
||||
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, 2,742,857 shares issued and 2,385,787 shares outstanding as of September 30, 2019 and 2,742,857 shares issued and 2,381,149 shares outstanding as of December 31, 2018 |
— |
|
|
— |
|
||
Additional paid-in capital |
34,061 |
|
|
33,939 |
|
||
Retained earnings (deficit) |
(2,499 |
) |
|
(2,782 |
) |
||
Accumulated other comprehensive income |
2,944 |
|
|
4,337 |
|
||
Treasury stock, at average cost, 357,070 shares as of September 30, 2019 and 361,708 shares as of December 31, 2018 |
(9,861 |
) |
|
(10,170 |
) |
||
Total shareholders’ equity |
24,645 |
|
|
25,324 |
|
||
Total liabilities and shareholders’ equity |
$ |
66,806 |
|
|
$ |
62,198 |
|
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
|
|
Nine Months Ended
|
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Net sales |
$ |
39,656 |
|
|
$ |
43,014 |
|
|
$ |
118,340 |
|
|
$ |
129,534 |
|
Cost of sales |
7,711 |
|
|
9,037 |
|
|
23,253 |
|
|
25,426 |
|
||||
Gross profit |
31,945 |
|
|
33,977 |
|
|
95,087 |
|
|
104,108 |
|
||||
|
|
|
|
|
|
|
|
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Operating expenses: |
|
|
|
|
|
|
|
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Commissions and incentives |
16,696 |
|
|
18,054 |
|
|
48,190 |
|
|
54,361 |
|
||||
Selling and administrative expenses |
8,951 |
|
|
8,111 |
|
|
24,908 |
|
|
25,706 |
|
||||
Depreciation and amortization expense |
519 |
|
|
475 |
|
|
1,564 |
|
|
1,521 |
|
||||
Other operating costs |
5,214 |
|
|
5,667 |
|
|
16,721 |
|
|
22,086 |
|
||||
Total operating expenses |
31,380 |
|
|
32,307 |
|
|
91,383 |
|
|
103,674 |
|
||||
Income from operations |
565 |
|
|
1,670 |
|
|
3,704 |
|
|
434 |
|
||||
Interest income (expense), net |
(12 |
) |
|
50 |
|
|
(83 |
) |
|
212 |
|
||||
Other income (expense), net |
(430 |
) |
|
(83 |
) |
|
554 |
|
|
681 |
|
||||
Income before income taxes |
123 |
|
|
1,637 |
|
|
4,175 |
|
|
1,327 |
|
||||
Income tax provision |
(1,613 |
) |
|
(3,300 |
) |
|
(2,991 |
) |
|
(3,637 |
) |
||||
Net income (loss) |
$ |
(1,490 |
) |
|
$ |
(1,663 |
) |
|
$ |
1,184 |
|
|
$ |
(2,310 |
) |
|
|
|
|
|
|
|
|
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Earnings (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
(0.62 |
) |
|
$ |
(0.69 |
) |
|
$ |
0.50 |
|
|
$ |
(0.89 |
) |
Diluted |
$ |
(0.62 |
) |
|
$ |
(0.69 |
) |
|
$ |
0.47 |
|
|
$ |
(0.89 |
) |
|
|
|
|
|
|
|
|
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Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
2,391 |
|
|
2,396 |
|
|
2,393 |
|
|
2,595 |
|
||||
Diluted |
2,391 |
|
|
2,396 |
|
|
2,450 |
|
|
2,595 |
|
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Schedule A: Reconciliation of Non-GAAP Financial Measures (Net Earnings, as Adjusted)
(Unaudited and unreviewed), (Table provides Dollars in thousands)
In addition to its reported results and guidance calculated in accordance with GAAP, the Company has included adjusted net earnings, a performance measure that the
The following is a reconciliation of net income or loss, presented and reported in accordance with GAAP, to net earnings, as adjusted for certain items:
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
2019 |
|
2018 |
|
2019 |
|
2018 |
||||||||
Net Income (loss), as reported |
$ |
(1,490 |
) |
|
$ |
(1,663 |
) |
|
$ |
1,184 |
|
|
$ |
(2,310 |
) |
Expenses related to moving the corporate headquarters |
— |
|
|
— |
|
|
— |
|
|
1,305 |
|
||||
Net earnings (loss), as adjusted |
$ |
(1,490 |
) |
|
$ |
(1,663 |
) |
|
$ |
1,184 |
|
|
$ |
(1,005 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20191108005136/en/
Source:
Donna Giordano
Manager, Executive Office Administration
972-471-6512
ir@mannatech.com
www.mannatech.com