Wow NHTC posts a whopper. Q2 earnings of .49/share! This is like the good ole days of scammy China stocks reporting numbers that were too good to be true. Except NHTC's numbers are real. I think.
NHTC Reports Quarterly Revenue More Than Tripled to $34.2 Million; $0.49 in Diluted EPS; Dividend Increased GlobeNewswire Natural Health Trends Corp. 3 hours ago
Year-to-Date Revenue Almost Tripled, Net Income Increased 671% Both Exceed Full Year 2013
DALLAS, July 30, 2014 (GLOBE NEWSWIRE) -- Natural Health Trends Corp. (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 financial results for the quarter and six month periods ended June 30, 2014.
Second Quarter Financial Highlights
Total revenues were $34.2 million, up 223% compared to $10.6 million in the second quarter last year. Operating income was $6.2 million, up 551% compared to $948,000 in the second quarter last year. Net income was $6.1 million, or $0.49 per diluted share, compared to $904,000, or $0.08 per diluted share, in the second quarter last year.
Year-to-Date Financial Highlights
Year-to-date revenues were $57.4 million, up 198% compared to $19.2 million in the first six months last year. Operating income was $9.3 million, up 649% compared to $1.2 million in the first six months last year. Net income was $9.2 million, or $0.76 per diluted share, compared to net income of $1.2 million, or $0.11 per diluted share, in the first six months last year.
"This was another excellent quarter for Natural Health Trends," remarked Chris Sharng, President of Natural Health Trends Corp. "Orders taken during the second quarter were very strong. In addition, the quarter's financial results also benefited from delivering significant orders taken but unshipped in March, with shipments made during the second quarter."
"For the first six months of 2014, the Company generated more revenue and net income than it did for the entire 2013 year," added Mr. Sharng. "The strong results so far in 2014 clearly demonstrate that our efforts to enhance our leadership development and training programs, and expand our products, services and promotions, can effectively drive strong results. The result has been a more informed base of members, and this has translated to higher average sales per member. We have focused particularly on investments in China, Hong Kong and Taiwan, where we think we have the most promising opportunities. Our programs aim for long-term growth. We are very pleased with the recent performance but are more excited about what we can accomplish in the long run."
Dividend
Yesterday, the Board of Directors declared its third consecutive quarterly dividend. The declared dividend included a cash dividend of $0.0274 per share on outstanding Series A preferred stock, which represents the accrued unpaid dividends through the declaration date, and a cash dividend of $0.01 per share on common stock outstanding, totaling aggregate dividends of $124,000, payable in cash on August 27, 2014 to stockholders of record on August 19, 2014.
Shareholder Conference Call
Management will conduct a conference call to discuss its second quarter financial results. Details of the call are as follows:
A replay will be available from 1 p.m. ET on July 30 through 11:59 p.m. ET on August 6, by dialing 1-877-870-5176 (domestic) and 1-858-384-5517 (international) and referencing replay pin number 8591701.
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.
Forward Looking Statement
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this release do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption "Risk Factors" in our Annual Report on Form 10-K filed on March 7, 2014, with the Securities and Exchange Commission. We assume no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.
-- Tables follow -- NATURAL HEALTH TRENDS CORP.
CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share Data)
December 31, 2013 June 30, 2014
(Unaudited) ASSETS
Current assets:
Cash and cash equivalents $14,550 $29,622 Accounts receivable 134 109 Inventories, net 1,828 4,321 Other current assets 658 754 Total current assets 17,170 34,806 Property and equipment, net 265 305 Goodwill 1,764 1,764 Restricted cash 328 340 Other assets 300 323 Total assets $19,827 $37,538
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $3,058 $4,641 Income taxes payable 25 111 Accrued distributor commissions 3,962 5,224 Other accrued expenses 3,146 5,599 Deferred revenue 2,569 3,171 Deferred tax liability 108 108 Other current liabilities 882 1,030 Total current liabilities 13,750 19,884 Commitments and contingencies
Stockholders' equity:
Preferred stock 111 82 Common stock 11 12 Additional paid-in capital 80,655 83,284 Accumulated deficit (74,619) (65,658) Accumulated other comprehensive loss:
Foreign currency translation adjustments (81) (66) Total stockholders' equity 6,077 17,654 Total liabilities and stockholders' equity $19,827 $37,538
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In Thousands, Except Per Share Data)
Three Months Ended June 30, Six Months Ended June 30,
Distributor commissions 4,443 15,458 8,117 25,881 Selling, general and administrative expenses 2,609 5,031 5,054 9,378 Depreciation and amortization 28 23 40 44 Total operating expenses 7,080 20,512 13,211 35,303 Income from operations 948 6,168 1,240 9,287 Other income (expense), net (28) 1 (21) (8) Income before income taxes 920 6,169 1,219 9,279 Income tax provision 16 59 28 98 Net income 904 6,110 1,191 9,181 Preferred stock dividends (4) (3) (8) (7) Net income available to common stockholders $900 $6,107 $1,183 $9,174
Common $-- $0.005 $-- $0.010 Series A preferred stock $-- $0.020 $-- $0.835
NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In Thousands)
Six Months Ended June 30,
2013 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $1,191 $9,181 Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 40 44 Stock-based compensation 53 34 Changes in assets and liabilities:
Accounts receivable (60) 24 Inventories, net (183) (2,502) Other current assets 110 (104) Other assets (1) (16) Accounts payable 242 1,586 Income taxes payable 28 86 Accrued distributor commissions 483 1,268 Other accrued expenses 382 2,466 Deferred revenue 297 606 Other current liabilities (4) 152 Net cash provided by operating activities 2,578 12,825
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net (57) (97) Net cash used in investing activities (57) (97)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of warrants -- 2,630 Dividends paid -- (195) Repurchase of common stock (21) (63) Net cash provided by (used in) financing activities (21) 2,372
Effect of exchange rates on cash and cash equivalents (12) (28) Net increase in cash and cash equivalents 2,488 15,072 CASH AND CASH EQUIVALENTS, beginning of period 4,207 14,550 CASH AND CASH EQUIVALENTS, end of period $6,695 $29,622
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Contact:
Company Contact Scott Davidson Chief Financial Officer Natural Health Trends Corp. Tel: 972-241-4080 scott.davidson@nhtglobal.com Investor Contact Brett Maas Managing Partner Hayden IR Tel: 646-536-7331 brett@haydenir.com