Mannatech Reports Fourth Quarter 2024 Financial Results
Quarter End Results
Fourth quarter net sales for 2024 were
Gross profit as a percentage of net sales improved to
Commissions as a percentage of net sales were
For the three months ended December 31, 2024, overall selling and administrative expenses decreased by
Fourth quarter operating income for 2024 was
Fourth quarter net income was
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 its packs or products as of December 31, 2024 and 2023 was approximately 133,000 and 145,000, respectively. Recruiting decreased
Year End Results
Net sales for 2024 was
Gross profit as a percentage of net sales decreased to
Commissions as a percentage of net sales were
For the years ended December 31, 2024 and 2023, overall selling and administrative expenses were
Operating income was
For the year ended December 31, 2024, the company's tax provision was
Net income for 2024 was
As of December 31, 2024, the company's cash and cash equivalents increased to
Landen Fredrick, President and CEO, acknowledged that "2024 was a challenging year for Mannatech, particularly in the
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. The company discloses operating results that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into
The company believes 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 with an additional perspective on trends. Although it believes the non-GAAP financial measures enhance investors’ understanding of their 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. Mannatech believes this release should be read in conjunction with all of its filings with the United States Securities and Exchange Commission and cautions its readers that these forward-looking statements are subject to certain events, risks, uncertainties, and other factors. Some of these factors include, among others, Mannatech’s inability to attract and retain associates and members, increases in competition, litigation, regulatory changes, and its planned growth into new international markets. Although Mannatech believes that the expectations, statements, and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its latest Annual Report on Form 10-K, and other filings filed with the United States Securities and Exchange Commission, including its current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.
^ Mannatech operates in
Individuals interested in Mannatech's products or in exploring its business opportunity can learn more at Mannatech.com.
MANNATECH, INCORPORATED AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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(in thousands, except share information) |
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|
December 31, 2024 |
|
December 31, 2023 |
||||
ASSETS |
|
|
|
||||
Cash and cash equivalents |
$ |
11,396 |
|
|
$ |
7,731 |
|
Restricted cash |
|
550 |
|
|
|
938 |
|
Accounts receivable, net of allowance of credit losses of |
|
19 |
|
|
|
91 |
|
Income tax receivable |
|
737 |
|
|
|
465 |
|
Inventories, net |
|
10,405 |
|
|
|
14,535 |
|
Prepaid expenses and other current assets |
|
1,755 |
|
|
|
1,774 |
|
Deferred commissions |
|
1,259 |
|
|
|
2,130 |
|
Total current assets |
|
26,121 |
|
|
|
27,664 |
|
Property and equipment, net |
|
2,858 |
|
|
|
4,147 |
|
Operating lease right-of-use assets |
|
2,094 |
|
|
|
3,315 |
|
Other assets |
|
2,644 |
|
|
|
3,751 |
|
Deferred tax assets, net |
|
1,770 |
|
|
|
1,611 |
|
Long-term restricted cash |
|
569 |
|
|
|
718 |
|
Total assets |
$ |
36,056 |
|
|
$ |
41,206 |
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
||||
Commissions and incentives payable |
$ |
8,642 |
|
|
$ |
8,175 |
|
Accrued expenses |
|
3,832 |
|
|
|
5,119 |
|
Deferred revenue |
|
3,027 |
|
|
|
4,786 |
|
Accounts payable |
|
2,070 |
|
|
|
4,010 |
|
Current portion of operating lease liabilities |
|
1,178 |
|
|
|
1,660 |
|
Taxes payable |
|
1,788 |
|
|
|
1,521 |
|
Current notes payable |
|
84 |
|
|
|
240 |
|
Current portion of finance lease liabilities |
|
275 |
|
|
|
269 |
|
Total current liabilities |
|
20,896 |
|
|
|
25,780 |
|
Long-term notes payable, excluding current portion |
|
2,900 |
|
|
|
— |
|
Operating lease liabilities, excluding current portion |
|
1,576 |
|
|
|
2,582 |
|
Other long-term liabilities |
|
1,390 |
|
|
|
1,404 |
|
Finance lease liabilities, excluding current portion |
|
680 |
|
|
|
956 |
|
Total liabilities |
|
27,442 |
|
|
|
30,722 |
|
Commitments and contingencies (Note 12) |
|
|
|
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Shareholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Common stock, |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
33,027 |
|
|
|
33,309 |
|
Retained earnings (accumulated deficit) |
|
1,189 |
|
|
|
(1,301 |
) |
Accumulated other comprehensive loss |
|
(5,666 |
) |
|
|
(1,015 |
) |
Treasury stock, at average cost, 858,043 shares as of December 31, 2024 and 882,703 shares as of December 31, 2023 |
|
(19,936 |
) |
|
|
(20,509 |
) |
Total shareholders’ equity |
|
8,614 |
|
|
|
10,484 |
|
Total liabilities and shareholders’ equity |
$ |
36,056 |
|
|
$ |
41,206 |
MANNATECH, INCORPORATED AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(in thousands, except per share information) |
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|
For the three months ended
|
|
For the years ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net sales |
$ |
29,007 |
|
|
$ |
32,694 |
|
|
$ |
117,866 |
|
|
$ |
131,955 |
|
Cost of sales |
|
5,643 |
|
|
|
8,048 |
|
|
|
26,406 |
|
|
|
29,090 |
|
Gross profit |
|
23,364 |
|
|
|
24,646 |
|
|
|
91,460 |
|
|
|
102,865 |
|
Operating expenses: |
|
|
|
|
|
|
|
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Commissions and incentives |
|
12,072 |
|
|
|
13,389 |
|
|
|
48,309 |
|
|
|
53,588 |
|
Selling and administrative expenses |
|
10,428 |
|
|
|
12,152 |
|
|
|
41,722 |
|
|
|
50,241 |
|
Total operating expenses |
|
22,500 |
|
|
|
25,541 |
|
|
|
90,031 |
|
|
|
103,829 |
|
Income (loss) from operations |
|
864 |
|
|
|
(895 |
) |
|
|
1,429 |
|
|
|
(964 |
) |
Interest (expense) income, net |
|
(83 |
) |
|
|
7 |
|
|
|
(279 |
) |
|
|
4 |
|
Other income (expense), net |
|
2,095 |
|
|
|
(973 |
) |
|
|
2,590 |
|
|
|
(170 |
) |
Income (loss) before income taxes |
|
2,876 |
|
|
|
(1,861 |
) |
|
|
3,740 |
|
|
|
(1,130 |
) |
Income tax (provision) benefit |
|
(614 |
) |
|
|
105 |
|
|
|
(1,250 |
) |
|
|
(1,109 |
) |
Net income (loss) |
$ |
2,262 |
|
|
$ |
(1,756 |
) |
|
$ |
2,490 |
|
|
$ |
(2,239 |
) |
Income (loss) per common share: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
1.20 |
|
|
$ |
(0.94 |
) |
|
$ |
1.32 |
|
|
$ |
(1.20 |
) |
Diluted |
$ |
1.20 |
|
|
$ |
(0.94 |
) |
|
$ |
1.32 |
|
|
$ |
(1.20 |
) |
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
Basic |
|
1,885 |
|
|
|
1,860 |
|
|
|
1,885 |
|
|
|
1,866 |
|
Diluted |
|
1,885 |
|
|
|
1,860 |
|
|
|
1,885 |
|
|
|
1,866 |
|
Non-GAAP Financial Measures (Sales, Gross Profit and Income From Operations in Constant Dollars)
To supplement its financial results presented in accordance with generally accepted accounting principles in
The table below reconciles fourth quarter 2024 constant dollar sales to GAAP sales.
|
Sales - Q4 2024 |
|
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|
GAAP
|
|
Non-GAAP
|
|
Constant $
|
|
||||
|
$ |
9.3 |
|
$ |
9.4 |
|
$ |
0.1 |
|
|
|
$ |
17.4 |
|
$ |
18.1 |
|
|
0.7 |
|
|
EMEA |
$ |
2.3 |
|
$ |
2.2 |
|
|
(0.1 |
) |
|
Total |
$ |
29.0 |
|
$ |
29.7 |
|
$ |
0.7 |
|
|
The table below reconciles fiscal year 2024 and 2023 constant dollar net sales, gross profit and income from operations to GAAP net sales, gross profit and income from operations.
|
2024 |
|
|
2023 |
|
|
Constant Dollar Change |
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|
GAAP Measure: Total $ |
|
Non-GAAP Measure: Constant $ |
|
GAAP Measure: Total $ |
|
Dollar |
|
Percent |
||||
Net sales |
117.9 |
|
120.6 |
|
$ |
132.0 |
|
|
(11.4 |
) |
|
(8.6 |
)% |
Gross profit |
91.5 |
|
93.7 |
|
|
102.9 |
|
|
(9.2 |
) |
|
(8.9 |
)% |
Income (loss) from operations |
1.4 |
|
2.2 |
|
|
(1.0 |
) |
|
3.2 |
|
|
(320.0 |
)% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250326495457/en/
Erin K. Barta
General Counsel and Corporate Secretary
214-724-3378
ir@mannatech.com
www.mannatech.com
Source: Mannatech, Incorporated