Mannatech Reports Fourth Quarter 2020 Financial Results
Quarter End Results
Fourth quarter net sales for 2020 were
Gross profit as a percentage of net sales decreased to 73.3% for the three months ended
Commissions as a percentage of net sales were 39.0% for the three months ended
For the three months ended
For the three months ended
The approximate number of new and continuing independent associate and preferred customer positions held by individuals in Mannatech’s network and associated with purchases of our packs or products as of
Year End Results
Overall net sales decreased
Gross profit as a percentage of net sales decreased to 76.5% for 2020, as compared to 80.0% for 2019.
Commission expenses decreased for the year ended
Incentive costs increased for the year ended
For the year ended
For the year ended
For the year ended
As of
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 dollar measures. We disclose operating results that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into
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 non-GAAP financial measures enhance investors’ understanding of our business and performance, these non-GAAP financial measures should not be considered an exclusive alternative to accompanying GAAP financial measures. Please see the accompanying table entitled "Non-GAAP Financial Measures" for a reconciliation of these non-GAAP financial measures.
Safe Harbor statement
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 “may,” “will,” “should,” "hope," “could,” “would,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “approximates,” “predicts,” “projects,” “potential,” and “continues” 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.
Individuals interested in
CONSOLIDATED BALANCE SHEETS (in thousands, except share information) |
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|
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|
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ASSETS |
|
|
|
||||||
Cash and cash equivalents |
$ |
22,207 |
|
|
|
$ |
24,762 |
|
|
Restricted cash |
944 |
|
|
|
943 |
|
|
||
Accounts receivable, net of allowance of |
186 |
|
|
|
955 |
|
|
||
Income tax receivable |
1,008 |
|
|
|
220 |
|
|
||
Inventories, net |
12,827 |
|
|
|
10,152 |
|
|
||
Prepaid expenses and other current assets |
2,962 |
|
|
|
2,239 |
|
|
||
Deferred commissions |
2,343 |
|
|
|
1,758 |
|
|
||
Total current assets |
42,477 |
|
|
|
41,029 |
|
|
||
Property and equipment, net |
4,494 |
|
|
|
5,261 |
|
|
||
Construction in progress |
864 |
|
|
|
865 |
|
|
||
Long-term restricted cash |
4,346 |
|
|
|
5,295 |
|
|
||
Other assets |
11,977 |
|
|
|
9,592 |
|
|
||
Deferred tax assets, net |
1,178 |
|
|
|
881 |
|
|
||
Total assets |
$ |
65,336 |
|
|
|
$ |
62,923 |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
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Current portion of finance leases |
$ |
76 |
|
|
|
$ |
87 |
|
|
Accounts payable |
4,797 |
|
|
|
3,526 |
|
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||
Accrued expenses |
8,691 |
|
|
|
8,209 |
|
|
||
Commissions and incentives payable |
10,998 |
|
|
|
9,728 |
|
|
||
Taxes payable |
1,400 |
|
|
|
2,187 |
|
|
||
Current notes payable |
553 |
|
|
|
739 |
|
|
||
Deferred revenue |
5,472 |
|
|
|
4,416 |
|
|
||
Total current liabilities |
31,987 |
|
|
|
28,892 |
|
|
||
Finance leases, excluding current portion |
129 |
|
|
|
176 |
|
|
||
Deferred tax liabilities |
3 |
|
|
|
3 |
|
|
||
Long-term notes payable |
— |
|
|
|
363 |
|
|
||
Other long-term liabilities |
7,245 |
|
|
|
6,214 |
|
|
||
Total liabilities |
39,364 |
|
|
|
35,648 |
|
|
||
Commitments and contingencies (Note 11) |
|
|
|
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Shareholders’ equity: |
|
|
|
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Preferred stock, |
— |
|
|
|
— |
|
|
||
Common stock, |
— |
|
|
|
— |
|
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||
Additional paid-in capital |
33,795 |
|
|
|
34,143 |
|
|
||
Retained Earnings (accumulated deficit) |
2,213 |
|
|
|
(690 |
) |
|
||
Accumulated other comprehensive income |
5,150 |
|
|
|
3,757 |
|
|
||
|
(15,186 |
) |
|
|
(9,935 |
) |
|
||
Total shareholders’ equity |
25,972 |
|
|
|
27,275 |
|
|
||
Total liabilities and shareholders’ equity |
$ |
65,336 |
|
|
|
$ |
62,923 |
|
|
CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share information) |
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For the three months
|
|
For the years ended
|
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|
2020 |
|
|
2019 |
|
|
2020 |
|
2019 |
|
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Net sales |
$ |
39,189 |
|
|
|
$ |
39,388 |
|
|
|
$ |
151,407 |
|
|
$ |
157,728 |
|
|
Cost of sales |
10,461 |
|
|
|
8,297 |
|
|
|
35,505 |
|
|
31,550 |
|
|
||||
Gross profit |
28,728 |
|
|
|
31,091 |
|
|
|
115,902 |
|
|
126,178 |
|
|
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Operating expenses: |
|
|
|
|
|
|
|
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Commissions and incentives |
16,041 |
|
|
|
16,064 |
|
|
|
61,349 |
|
|
64,254 |
|
|
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Selling and administrative expenses |
7,186 |
|
|
|
5,916 |
|
|
|
27,845 |
|
|
30,824 |
|
|
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Depreciation and amortization |
465 |
|
|
|
524 |
|
|
|
1,990 |
|
|
2,088 |
|
|
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Other operating costs |
5,047 |
|
|
|
5,858 |
|
|
|
20,227 |
|
|
22,579 |
|
|
||||
Total operating expenses |
28,739 |
|
|
|
28,362 |
|
|
|
111,411 |
|
|
119,745 |
|
|
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Income (loss) from operations |
(11 |
) |
|
|
2,729 |
|
|
|
4,491 |
|
|
6,433 |
|
|
||||
Interest income (expense) |
10 |
|
|
|
67 |
|
|
|
83 |
|
|
(16 |
) |
|
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Other income (expense), net |
945 |
|
|
|
(1,235 |
) |
|
|
1,151 |
|
|
(681 |
) |
|
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Income before income taxes |
944 |
|
|
|
1,561 |
|
|
|
5,725 |
|
|
5,736 |
|
|
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Income tax (provision) benefit |
(217 |
) |
|
|
544 |
|
|
|
536 |
|
|
(2,447 |
) |
|
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Net income |
$ |
727 |
|
|
|
$ |
2,105 |
|
|
|
$ |
6,261 |
|
|
$ |
3,289 |
|
|
Income per common share: |
|
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|
|
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|
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Basic |
$ |
0.35 |
|
|
|
$ |
0.88 |
|
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|
$ |
2.80 |
|
|
$ |
1.38 |
|
|
Diluted |
$ |
0.34 |
|
|
|
$ |
0.87 |
|
|
|
$ |
2.77 |
|
|
$ |
1.35 |
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|||||||||||
Basic |
2,085 |
|
|
|
2,385 |
|
|
|
2,235 |
|
|
2,391 |
|
|
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Diluted |
2,121 |
|
|
|
2,415 |
|
|
|
2,264 |
|
|
2,441 |
|
|
Non-GAAP Financial Measures (Sales, Gross Profit and Income From Operations in
To supplement our financial results presented in accordance with generally accepted accounting principles in
The table below reconciles fourth quarter 2020 constant dollar sales to GAAP sales.
|
Sales - Q4 2020 |
|
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GAAP
|
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Non-GAAP
|
|
Constant $
|
|
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|
$ |
10.8 |
|
|
$ |
10.9 |
|
|
$ |
0.1 |
|
|
|
|
$ |
24.2 |
|
|
$ |
23.2 |
|
|
(1.0 |
) |
|
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|
EMEA |
$ |
4.2 |
|
|
$ |
4.3 |
|
|
0.1 |
|
|
|
|
Total |
$ |
39.2 |
|
|
$ |
38.4 |
|
|
$ |
(0.8 |
) |
|
|
The table below reconciles fiscal year 2019 and 2020 constant dollar net sales, gross profit and income from operations to GAAP net sales, gross profit and income from operations.
|
2020 |
|
2019 |
|
Constant Dollar Change |
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|
GAAP
|
|
Non-GAAP
|
|
GAAP
|
|
Dollar |
|
Percent |
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Net sales |
151.4 |
|
|
153.5 |
|
|
$ |
157.7 |
|
|
(4.2 |
) |
|
|
(2.7 |
) |
% |
Product |
146.2 |
|
|
148.2 |
|
|
154.6 |
|
|
(6.4 |
) |
|
|
(4.1 |
) |
% |
|
Pack and associate fees |
4.2 |
|
|
4.2 |
|
|
2.3 |
|
|
1.9 |
|
|
|
82.6 |
|
% |
|
Other |
1.0 |
|
|
1.1 |
|
|
0.8 |
|
|
0.3 |
|
|
|
37.5 |
|
% |
|
Gross profit |
115.9 |
|
|
117.3 |
|
|
126.2 |
|
|
(8.9 |
) |
|
|
(7.1 |
) |
% |
|
Income (loss) from operations |
4.5 |
|
|
4.8 |
|
|
6.4 |
|
|
(1.6 |
) |
|
|
(25.0 |
) |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20210319005068/en/
Manager,
972-471-6512
ir@mannatech.com
www.mannatech.com
Source: