Mannatech Reports Third Quarter 2013 Financial Results
During the third quarter of 2013, we implemented a global loyalty
program for our associates and members who purchase products using a
qualified automatic order. Participating associates and members earn
loyalty points, which can be applied to future purchases. The company
defers the dollar equivalent in revenue for these loyalty points until
the points are applied or forfeited. During the third quarter of 2013,
the company deferred net sales of
Net sales for
Net sales for
Net sales for
Recruiting increased 4.4% in the third quarter of 2013 as compared to
the third quarter of 2012. The number of new independent associates and
members for the third quarter of 2013 was approximately 28,800, as
compared to 27,600 during the same period in 2012. The total number of
independent associates and members based on a 12-month trailing period
was approximately 239,000 as of
Dr.
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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 | ||||||||||
| CONSOLIDATED BALANCE SHEETS – (UNAUDITED) | ||||||||||
|
(in thousands, except share and per share amounts) |
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| PART I – FINANCIAL INFORMATION | ||||||||||
| September 30, | December 31, | |||||||||
| 2013 | 2012 | |||||||||
| ASSETS | (unaudited) | |||||||||
| Cash and cash equivalents | $ | 19,441 | $ | 14,377 | ||||||
| Restricted cash | 1,527 | 1,515 | ||||||||
| Accounts receivable, net of allowance of $40 and $20 in 2013 and 2012, respectively | 402 | 324 | ||||||||
| Income tax receivable | 188 | 884 | ||||||||
| Inventories, net | 14,733 | 15,154 | ||||||||
| Prepaid expenses and other current assets | 3,614 | 2,487 | ||||||||
| Deferred commissions | 2,240 | 562 | ||||||||
| Deferred tax assets | 647 | 561 | ||||||||
| Total current assets | 42,792 | 35,864 | ||||||||
| Property and equipment, net | 3,614 | 4,825 | ||||||||
| Construction in progress | 30 | 8 | ||||||||
| Long-term restricted cash | 5,035 | 3,736 | ||||||||
| Other assets | 2,938 | 3,187 | ||||||||
| Long-term deferred tax assets | 633 | 502 | ||||||||
| Total assets | $ | 55,042 | $ | 48,122 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||
| Current portion of capital leases | $ | 653 | $ | 780 | ||||||
| Accounts payable | 6,784 | 4,154 | ||||||||
| Accrued expenses | 7,598 | 6,348 | ||||||||
| Commissions and incentives payable | 9,195 | 7,935 | ||||||||
| Taxes payable | 1,972 | 3,901 | ||||||||
| Current deferred tax liability | 291 | 179 | ||||||||
| Deferred revenue | 5,284 | 1,486 | ||||||||
| Total current liabilities | 31,777 | 24,783 | ||||||||
| Capital leases, excluding current portion | 583 | 938 | ||||||||
| Long-term deferred tax liabilities | 10 | 2 | ||||||||
| Other long-term liabilities | 1,706 | 2,178 | ||||||||
| Total liabilities | 34,076 | 27,901 | ||||||||
| 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, 2,773,972 shares issued and 2,653,913 shares outstanding as of September 30, 2012 and 2,768,972 shares issued and 2,647,735 shares outstanding as of December 31, 2012 | — | — | ||||||||
| Additional paid-in capital | 42,556 | 42,614 | ||||||||
| Accumulated deficit | (6,293 | ) | (6,920 | ) | ||||||
| Accumulated other comprehensive loss | (646 | ) | (677 | ) | ||||||
| Less treasury stock, at cost, 120,059 and 121,237 shares in 2013 and 2012, respectively | (14,651 | ) | (14,796 | ) | ||||||
| Total shareholders’ equity | 20,966 | 20,221 | ||||||||
| Total liabilities and shareholders’ equity | $ | 55,042 | $ | 48,122 | ||||||
| MANNATECH, INCORPORATED AND SUBSIDIARIES | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS – (UNAUDITED) | |||||||||||||||||||
|
(in thousands, except per share information) |
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| Three months ended | Nine months ended | ||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||||||
| Net sales | $ | 44,432 | $ | 43,049 | $ | 130,899 | $ | 131,162 | |||||||||||
| Cost of sales | 9,225 | 8,698 | 25,616 | 25,824 | |||||||||||||||
| Gross profit | 35,207 | 34,351 | 105,283 | 105,338 | |||||||||||||||
| Operating expenses: | |||||||||||||||||||
| Commissions and incentives | 19,640 | 18,658 | 56,362 | 56,280 | |||||||||||||||
| Selling and administrative | 8,497 | 8,640 | 25,669 | 28,240 | |||||||||||||||
| Depreciation and amortization | 474 | 703 | 1,699 | 4,082 | |||||||||||||||
| Other operating costs | 6,167 | 5,261 | 18,919 | 19,109 | |||||||||||||||
| Total operating expenses | 34,778 | 33,262 | 102,649 | 107,711 | |||||||||||||||
| Income (loss) from operations | 429 | 1,089 | 2,634 | (2,373 | ) | ||||||||||||||
| Interest income (expense) | 25 | 6 | 29 | (26 | ) | ||||||||||||||
| Other income (expense), net | (275 | ) | 455 | (1,278 | ) | 542 | |||||||||||||
| Income (loss) before income taxes | 179 | 1,550 | 1,385 | (1,857 | ) | ||||||||||||||
| (Provision for) benefit from income taxes | (980 | ) | 663 | (758 | ) | 215 | |||||||||||||
| Net income (loss) | $ | (801 | ) | $ | 2,213 | $ | 627 | $ | (1,642 | ) | |||||||||
| Income (loss) per share: | |||||||||||||||||||
| Basic | $ | (0.30 | ) | $ | 0.84 | $ | 0.24 | $ | (0.62 | ) | |||||||||
| Diluted | $ | (0.30 | ) | $ | 0.83 | $ | 0.23 | $ | (0.62 | ) | |||||||||
| Weighted-average common shares outstanding: | |||||||||||||||||||
| Basic | 2,650 | 2,648 | 2,649 | 2,648 | |||||||||||||||
| Diluted | 2,650 | 2,681 | 2,717 | 2,648 | |||||||||||||||
The approximate number of new and continuing associates and members who
purchased our packs or products during the twelve months ended
| 2013 | 2012 | ||||||||||||||
| New | 109,000 | 46.0 | % | 95,000 | 41.0 | % | |||||||||
| Continuing | 130,000 | 54.0 | % | 138,000 | 59.0 | % | |||||||||
| Total | 239,000 | 100.0 | % | 233,000 | 100.0 | % | |||||||||
Source:
Mannatech, Incorporated
Donna Giordano, 972-471-6512
Manager,
Executive Office Administration
ir@mannatech.com
www.mannatech.com