Mannatech Reports Fourth Quarter and Year End Results
Fourth Quarter Results
Fourth quarter net sales for 2012 were
Net income was
Dr.
Year End Results
Annual net sales for 2012 were
The total number of independent associates and members based on a
12-month trailing period was approximately 229,000 as of each of
Dr.
Investors interested in additional information about our financial results for 2012 and upcoming strategy for 2013 can access our Quarterly Earnings Archive at http://ir.mannatech.com.
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” 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.
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CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share information) |
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| December 31, | ||||||||
| 2012 | 2011 | |||||||
|
ASSETS |
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| Cash and cash equivalents | $ | 14,377 | $ | 18,057 | ||||
| Restricted cash | 1,515 | 1,263 | ||||||
| Accounts receivable, net of allowance of $20 and $22 in 2012 and 2011, respectively | 324 | 304 | ||||||
| Income tax receivable | 884 | 888 | ||||||
| Inventories, net | 15,154 | 17,786 | ||||||
| Prepaid expenses and other current assets | 2,487 | 2,497 | ||||||
| Deferred tax assets | 561 | 936 | ||||||
| Total current assets | 35,302 | 41,731 | ||||||
| Property and equipment, net | 4,825 | 9,566 | ||||||
| Construction in progress | 8 | — | ||||||
| Long-term restricted cash | 3,736 | 3,386 | ||||||
| Other assets | 3,187 | 2,815 | ||||||
| Long-term deferred tax assets | 502 | 772 | ||||||
| Total assets | $ | 47,560 | $ | 58,270 | ||||
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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| Current portion of capital leases | $ | 780 | $ | 852 | ||||
| Accounts payable | 4,154 | 4,825 | ||||||
| Accrued expenses | 6,348 | 10,514 | ||||||
| Commissions and incentives payable | 7,373 | 8,567 | ||||||
| Taxes payable | 3,901 | 3,364 | ||||||
| Current deferred tax liability | 179 | 185 | ||||||
| Deferred revenue | 1,486 | 1,569 | ||||||
| Total current liabilities | 24,221 | 29,876 | ||||||
| Capital leases, excluding current portion | 938 | 1,358 | ||||||
| Long-term deferred tax liabilities | 2 | 1 | ||||||
| Other long-term liabilities | 2,178 | 5,382 | ||||||
| Total liabilities | 27,339 | 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,
2,759,858 shares issued and |
— | — | ||||||
| Additional paid-in capital | 42,614 | 42,408 | ||||||
| Accumulated Deficit | (6,920 | ) | (5,532 | ) | ||||
| Accumulated other comprehensive loss | (677 | ) | (427 | ) | ||||
| Less treasury stock, at cost, 121,237 shares in 2012 and 2011 | (14,796 | ) | (14,796 | ) | ||||
| Total shareholders’ equity | 20,221 | 21,653 | ||||||
| Total liabilities and shareholders’ equity | $ | 47,560 | $ | 58,270 | ||||
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CONSOLIDATED STATEMENTS OF OPERATIONS – (UNAUDITED) (in thousands, except per share information) |
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Three months ended December 31, |
Twelve months ended December 31, |
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| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Net sales | $ | 42,285 | $ | 47,906 | $ | 173,447 | $ | 200,689 | ||||||||
| Cost of sales | 8,817 | 10,247 | 34,641 | 38,515 | ||||||||||||
| Gross profit | 33,468 | 37,659 | 138,806 | 162,174 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Commissions and incentives | 17,544 | 20,782 | 73,823 | 87,426 | ||||||||||||
| Selling and administrative | 8,936 | 10,555 | 37,176 | 47,821 | ||||||||||||
| Depreciation and amortization | 673 | 2,565 | 4,755 | 10,697 | ||||||||||||
| Other operating (1) | 4,922 | 9,847 | 24,032 | 33,119 | ||||||||||||
| Total operating expenses | 32,075 | 43,749 | 139,786 | 179,063 | ||||||||||||
| Income/(Loss) from operations | 1,393 | (6,090 | ) | (980 | ) | (16,889 | ) | |||||||||
| Interest income | 76 | 120 | 50 | 117 | ||||||||||||
| Other income (expense), net | 88 | (12 | ) | 630 | (1,106 | ) | ||||||||||
| Income/(Loss) before income taxes | 1,557 | (5,982 | ) | (300 | ) | (17,878 | ) | |||||||||
| (Provision) benefit for income taxes | (1,303 | ) | (986 | ) | (1,088 | ) | (2,781 | ) | ||||||||
| Net Income/(Loss) | $ | 254 | $ | (6,968 | ) | $ | (1,388 | ) | $ | (20,659 | ) | |||||
| Income/(Loss) per common share: | ||||||||||||||||
| Basic | $ | 0.10 | $ | (2.63 | ) | $ | (0.52 | ) | $ | (7.80 | ) | |||||
| Diluted | $ | 0.10 | $ | (2.63 | ) | $ | (0.52 | ) | $ | (7.80 | ) | |||||
| Weighted-average common shares outstanding: | ||||||||||||||||
| Basic | 2,648 | 2,649 | 2,648 | 2,649 | ||||||||||||
| Diluted | 2,648 | 2,649 | 2,648 | 2,649 | ||||||||||||
(1)
The approximate number of new and continuing independent associates and
members who purchased our packs or products during the twelve months
ended
| 2012 | 2011 | ||||||||||||||
| New | 97,000 | 42 | % | 77,000 | 33 | % | |||||||||
| Continuing | 132,000 | 58 | % | 152,000 | 66 | % | |||||||||
| Total | 229,000 | 100 | % | 229,000 | 100 | % | |||||||||
Source:
Mannatech, Incorporated
Brett Duncan, 972-471-7367
bduncan@mannatech.com
or
Donna
Giordano, 972-471-6512
Manager, Executive Office Administration
ir@mannatech.com
www.mannatech.com