Mannatech Reports Second Quarter End 2023 Financial Results
Second Quarter End Results
Second quarter net sales for 2023 were
Second quarter operating loss for 2023 was
Net loss was
For the three months ended June 30, 2023, overall selling and administrative expenses increased by
For the three months ended June 30, 2023, other operating costs increased by
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 products as of June 30, 2023 and 2022 were approximately 142,000 and 152,000, respectively. Recruitment of new independent associates and preferred customers decreased by
Year-to-date Second Quarter Results
For the six months ended June 30, 2023, net sales were
Operating loss for the six months ended June 30, 2023 was
Net loss was
We will not pay a quarterly dividend this quarter, which will preserve approximately
Non-GAAP Measure
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
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, the impact of COVID-19 on Mannatech’s business, the availability and effectiveness of vaccines on a widespread basis, the impact of any mutations of the COVID-19 virus, the current conflict between
Individuals interested in Mannatech's products or in exploring its business opportunity can learn more at Mannatech.com
MANNATECH, INCORPORATED AND SUBSIDIARIES |
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(in thousands, except share information) |
||||||||
June 30, 2023 |
December 31, |
|||||||
ASSETS |
(unaudited) |
|
2022 |
|||||
Cash and cash equivalents |
$ |
9,374 |
|
|
$ |
13,777 |
|
|
Restricted cash |
|
938 |
|
|
|
944 |
|
|
Accounts receivable, net of allowance of |
|
645 |
|
|
|
218 |
|
|
Income tax receivable |
|
422 |
|
|
|
423 |
|
|
Inventories, net |
|
15,838 |
|
|
|
14,726 |
|
|
Prepaid expenses and other current assets |
|
2,183 |
|
|
|
2,389 |
|
|
Deferred commissions |
|
1,852 |
|
|
|
2,476 |
|
|
Total current assets |
|
31,252 |
|
|
|
34,953 |
|
|
Property and equipment, net |
|
4,689 |
|
|
|
3,759 |
|
|
Long-term restricted cash |
|
460 |
|
|
|
476 |
|
|
Other assets |
|
7,834 |
|
|
|
8,439 |
|
|
Deferred tax assets, net |
|
1,164 |
|
|
|
1,501 |
|
|
Total assets |
$ |
45,399 |
|
|
$ |
49,128 |
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|||||
Current portion of finance leases |
$ |
274 |
|
|
$ |
61 |
|
|
Accounts payable |
|
5,825 |
|
|
|
4,361 |
|
|
Accrued expenses |
|
6,930 |
|
|
|
7,510 |
|
|
Commissions and incentives payable |
|
8,734 |
|
|
|
9,256 |
|
|
Taxes payable |
|
1,738 |
|
|
|
3,281 |
|
|
Current notes payable |
|
411 |
|
|
|
263 |
|
|
Deferred revenue |
|
4,330 |
|
|
|
5,106 |
|
|
Total current liabilities |
|
28,242 |
|
|
|
29,838 |
|
|
Finance leases, excluding current portion |
|
1,115 |
|
|
|
88 |
|
|
Other long-term liabilities |
|
4,400 |
|
|
|
5,026 |
|
|
Total liabilities |
|
33,757 |
|
|
|
34,952 |
|
|
|
|
|
|
|||||
Commitments and contingencies |
|
|
|
|||||
|
|
|
|
|||||
Shareholders’ equity: |
|
|
|
|||||
Preferred stock, |
|
— |
|
|
|
— |
|
|
Common stock, |
|
— |
|
|
|
— |
|
|
Additional paid-in capital |
|
33,294 |
|
|
|
33,377 |
|
|
Retained earnings |
|
437 |
|
|
|
1,686 |
|
|
Accumulated other comprehensive (loss) income |
|
(1,658 |
) |
|
|
(208 |
) |
|
Treasury stock, at average cost, 876,645 shares as of June 30, 2023 and 884,057 shares as of December 31, 2022 |
|
(20,431 |
) |
|
|
(20,679 |
) |
|
Total shareholders’ equity |
|
11,642 |
|
|
|
14,176 |
|
|
Total liabilities and shareholders’ equity |
$ |
45,399 |
|
|
$ |
49,128 |
|
MANNATECH, INCORPORATED AND SUBSIDIARIES |
||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
(in thousands, except per share information) |
||||||||||||||||
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||
June 30, |
|
June 30, |
||||||||||||||
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|||||||||
Net sales |
$ |
32,594 |
|
|
$ |
34,976 |
|
|
$ |
66,708 |
|
|
$ |
67,360 |
|
|
Cost of sales |
|
7,004 |
|
|
|
7,920 |
|
|
|
14,417 |
|
|
|
15,011 |
|
|
Gross profit |
|
25,590 |
|
|
|
27,056 |
|
|
|
52,291 |
|
|
|
52,349 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|||||||||
Commissions and incentives |
|
13,465 |
|
|
|
14,137 |
|
|
|
27,022 |
|
|
|
27,245 |
|
|
Selling and administrative expenses |
|
7,257 |
|
|
|
6,914 |
|
|
|
13,673 |
|
|
|
13,823 |
|
|
Depreciation and amortization expense |
|
387 |
|
|
|
301 |
|
|
|
774 |
|
|
|
633 |
|
|
Other operating costs |
|
5,435 |
|
|
|
4,851 |
|
|
|
11,063 |
|
|
|
9,760 |
|
|
Total operating expenses |
|
26,544 |
|
|
|
26,203 |
|
|
|
52,532 |
|
|
|
51,461 |
|
|
(Loss) income from operations |
|
(954 |
) |
|
|
853 |
|
|
|
(241 |
) |
|
|
888 |
|
|
Interest (expense) income, net |
|
(10 |
) |
|
|
23 |
|
|
|
14 |
|
|
|
38 |
|
|
Other income (expense), net |
|
150 |
|
|
|
(84 |
) |
|
|
483 |
|
|
|
1 |
|
|
(Loss) income before income taxes |
|
(814 |
) |
|
|
792 |
|
|
|
256 |
|
|
|
927 |
|
|
Income tax (provision) |
|
(291 |
) |
|
|
(98 |
) |
|
|
(757 |
) |
|
|
(99 |
) |
|
Net (loss) income |
$ |
(1,105 |
) |
|
$ |
694 |
|
|
$ |
(501 |
) |
|
$ |
828 |
|
|
(Loss) income per common share: |
|
|
|
|
|
|
|
|||||||||
Basic |
$ |
(0.59 |
) |
|
$ |
0.36 |
|
|
$ |
(0.27 |
) |
|
$ |
0.43 |
|
|
Diluted |
$ |
(0.59 |
) |
|
$ |
0.34 |
|
|
$ |
(0.27 |
) |
|
$ |
0.40 |
|
|
Weighted-average common shares outstanding: |
|
|
|
|
|
|
|
|||||||||
Basic |
|
1,870 |
|
|
|
1,942 |
|
|
|
1,871 |
|
|
|
1,944 |
|
|
Diluted |
|
1,870 |
|
|
|
2,031 |
|
|
|
1,871 |
|
|
|
2,052 |
|
Non-GAAP Financial Measures (Sales, Gross Profit and Income from Operations in Constant Dollars)
To supplement our financial results presented in accordance with generally accepted accounting principles in
The table below reconciles second quarter 2023 and year-to-date constant dollar net sales, gross profit and income from operations to our GAAP net sales, gross profit and income from operations.
Three-month period ended |
June 30, 2023 |
|
June 30, 2022 |
|
Constant $ Change |
|||||||||||||
(in millions, except percentages) |
GAAP |
|
Non-GAAP |
|
GAAP |
|
|
|
|
|||||||||
Measure: |
Measure: |
Measure: |
||||||||||||||||
Total $ |
Constant $ |
Total $ |
Dollar |
Percent |
||||||||||||||
Net sales |
$ |
32.6 |
|
|
$ |
33.6 |
|
|
$ |
35.0 |
|
$ |
(1.4 |
) |
|
(4.0 |
)% |
|
Product |
|
31.0 |
|
|
|
32.0 |
|
|
|
33.0 |
|
|
(1.0 |
) |
|
(3.0 |
)% |
|
Pack sales and associate fees |
|
1.4 |
|
|
|
1.4 |
|
|
|
1.8 |
|
|
(0.4 |
) |
|
(22.2 |
)% |
|
Other |
|
0.2 |
|
|
|
0.2 |
|
|
|
0.2 |
|
|
— |
|
|
— |
% |
|
Gross profit |
|
25.6 |
|
|
|
26.4 |
|
|
|
27.1 |
|
|
(0.7 |
) |
|
(2.6 |
)% |
|
(Loss) income from operations |
|
(1.0 |
) |
|
|
(0.8 |
) |
|
|
0.9 |
|
|
(1.7 |
) |
|
(188.9 |
)% |
|
Six-month period ended |
June 30, 2023 |
|
June 30, 2022 |
|
Constant $ Change |
|||||||||||||
(in millions, except percentages) |
GAAP |
|
Non-GAAP |
|
GAAP |
|
|
|
|
|||||||||
Measure: |
Measure: |
Measure: |
||||||||||||||||
Total $ |
Constant $ |
Total $ |
Dollar |
Percent |
||||||||||||||
Net sales |
$ |
66.7 |
|
|
$ |
69.3 |
|
|
$ |
67.4 |
|
$ |
1.9 |
|
|
2.8 |
% |
|
Product |
|
62.9 |
|
|
|
65.3 |
|
|
|
63.8 |
|
|
1.5 |
|
|
2.4 |
% |
|
Pack sales and associate fees |
|
3.5 |
|
|
|
3.7 |
|
|
|
3.1 |
|
|
0.6 |
|
|
19.4 |
% |
|
Other |
|
0.3 |
|
|
|
0.3 |
|
|
|
0.5 |
|
|
(0.2 |
) |
|
(40.0 |
)% |
|
Gross profit |
|
52.3 |
|
|
|
54.3 |
|
|
|
52.3 |
|
|
2.0 |
|
|
3.8 |
% |
|
(Loss) income from operations |
|
(0.2 |
) |
|
|
0.3 |
|
|
|
0.9 |
|
|
(0.6 |
) |
|
(66.7 |
)% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230814475245/en/
Donna Giordano
Manager, Executive Office Administration
972-471-6512
ir@mannatech.com
www.mannatech.com
Source: Mannatech, Incorporated