Natural Health Trends Corp. (NHTC)

[roger wilco]

NHTC Announces 104% Revenue Increase, 101% Net Income Increase,
for Second Quarter of 2015

Record Revenue increases to $69.7 Million while Net Income reaches $12.3 Million;
Company Increases Dividend by 33% to $0.04 Per Share, Authorizes $15 Million Share Repurchase

DALLAS, TX, July 28, 2015 -- Natural Health Trends Corp. (Nasdaq: NHTC), a leading direct selling company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, today announced continued growth for the quarter and six month periods ended June 30, 2015.

Second Quarter Highlights

Total revenues increased 104% to $69.7 million, compared to $34.2 million in the second quarter last year. Net income was $12.3 million, or $0.98 per diluted share, compared to $6.1 million, or $0.49 per diluted share, in the second quarter last year.

Revenue from Hong Kong operations, which represents 93% of total revenue, increased $33.2 million, or 105% over the same period last year

Revenue outside of Hong Kong increased $2.4 million, or 91% over the same period last year; excluding the Commonwealth of Independent States, revenue increased 151% over the same period last year

Operating income increased 99% to $12.3 million, compared to $6.2 million in the second quarter last year.

Total number of active distributors increased 23% to 76,400 at June 30, 2015 compared to March 31, 2015.

The Company’s common stock joined the Russell Global, Russell 3000® and the Russell Microcap® Indices.

Year-to-Date Financial Highlights

Revenues were $110.4 million, up 93%, compared to $57.4 million in the first six months of last year. Net income was $19.0 million, or $1.52 per diluted share, compared to $9.2 million, or $0.76 per diluted share, in the first six months of last year.

Operating income was $19.2 million, up 107% compared to $9.3 million in the first six months of last year.

“We delivered another quarter of solid top-line growth and doubled our net income as we continue to leverage the strength and utility of our Hong Kong infrastructure to meet the increasing consumer demand for our health and wellness products,” commented Chris Sharng, President of Natural Health Trends Corp. “During the quarter we launched several new products to extend our product line and kicked off additional incentive programs for top performers. The combination of consumer demand supported by our market-leading products and effective sales, leadership and incentive programs are proving to be very successful strategies for expanding our base of consumers and distributors while fortifying an already firm foundation for future growth.”

“Our Hong Kong business continues to excel, and to date, the economic slowdown in China has not impacted us,” continued Mr. Sharng. “In the long term, we feel that the re-orientation of the Chinese economy toward consumption is good for businesses like ours, as we work to introduce high-quality consumer products to the increasingly affluent Chinese consumers. We are in the Chinese market for the long haul and are bullish on its prospect.”

“Further, during the quarter, we funded the required deposit for the consumer protection fund in China, which is a prerequisite to submitting our direct selling license application,” concluded Mr. Sharng. “We view applying for a direct selling license as strategically valuable to help us drive incremental growth as our brand recognition continues to grow in China and Asia.”

Balance Sheet

At June 30, 2015, cash and cash equivalents totaled $74.4 million, compared to $59.9 million as of March 31, 2015 and $44.8 million as of December 31, 2014.

Dividend and Share Repurchase

Today, the Board of Directors declared a cash dividend of $0.04 per share on outstanding common stock payable in cash on August 28, 2015 to stockholders of record on August 18, 2015.

Also today, the Board of Directors approved a stock repurchase plan of up to $15 million of Company’s outstanding shares of common stock with the Company’s on-going earnings or cash on hand through December 2016, including $5 million repurchases intended to be immediately executed. Since November 2014, the Company has repurchased 638,176 shares of common stock at a cost of $10.6 million.

“We are confident in our ability to consistently generate solid free cash flow to support future growth, while also rewarding our stockholders with capital return in the forms of both dividends and the repurchase of stock,” added Mr. Sharng.

Shareholder Conference Call

Management will conduct a conference call to discuss its second quarter financial results. Details of the call are as follows:

Date: Wednesday July 29, 2015

Time: 10 a.m. ET/9 a.m. CT/7 a.m. PT

Dial-in number: 1-888-455-2296 FREE (domestic) 1-719-457-2627 (international)

Webcast link: http://public.viavid.com/index.php?id=115429

A replay will be available from 1 p.m. ET on July 29, 2015 through 11:59 p.m. ET on August 5, 2015 by dialing 1-877-870-5176 FREE (domestic) and 1-858-384-5517 (international) and referencing replay pin number 3259700.

About Natural Health Trends Corp.

Natural Health Trends Corp. is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, North America, and Europe. The company markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand. Additional information can be found on the company's website, www.naturalhealthtrendscorp.com.