Mannatech Q4 2011 – Revenue Minus 12.8% To $48 Milllion
Mannatech Reports Fourth Quarter and Year End Results
- Annual net sales for 2011 were $200.7 million, down 12.0% from $228.1 million for the full year 2010
- Distributors down from 372,000 in 2011 compared to 403,000 in 2010
- Net loss of $7.0 million
COPPELL, Texas, USA March 28, 2012– Mannatech, Incorporated (NASDAQ: MTEX), a leading developer and provider of nutritional supplements and skin care products based on Real Food Technology solutions, today reported a net loss of $7.0 million, or $2.63 per diluted share, for the fourth quarter ending December 31, 2011, compared to net loss of $2.7 million, or $1.04 per diluted share, for the fourth quarter of 2010.
Included in the fourth quarter results was a $2.6 million settlement in the previously disclosed lawsuit with a supplier related to contractual purchase commitments.
Fourth quarter net sales for 2011 were $47.9 million, a decrease of 12.8% compared to $54.9 million in the fourth quarter of 2010. Net sales for United States and Canada declined 14.6% to $23.5 million compared to $27.5 million in the fourth quarter of 2010. International net sales of $24.4 million decreased 10.9% compared to $27.4 million in the fourth quarter of 2010.
Annual net sales for 2011 were $200.7 million, down 12.0% from $228.1 million for the full year 2010. The company reported a net loss for the full year of $20.7 million, compared to the full year net loss of $10.6 million in 2010. The loss per share, as adjusted for a 1-for-10 reverse stock split, was of $7.80 for the full year 2011 compared to the loss per share of $4.01 for the full year 2010.
Mark Nicholls, Chief Financial Officer, said, “Our losses during 2011 were primarily non-cash in nature as the cash from operations declined $2.9 million in comparison to the net loss of $20.7 million. The largest non-cash item is depreciation associated with the 2007 launch of our Enterprise Resource Planning system. It is anticipated future depreciation expenses will decline during 2012 to historical levels.”
Total independent Associates and Members based on a 12-month trailing period was approximately 372,000 as of December 31, 2011 compared to 403,000 as of December 31, 2010. New independent Associates and Members for the full year 2011 were 77,000 compared to 89,000 in 2010.
Mr. Nicholls adds, “During 2011, we continued addressing the challenges from an overall reduction in recruiting. In June 2011, we announced a restructuring of our U.S. operations and elimination of 98 work force positions. Additionally, as opportunities were identified, other operating costs were reduced internationally. As a result, we were able to increase cash by $736,000 in the last 6 months of 2011 despite the reduction in revenues.”
Dr. Robert Sinnott, CEO & Chief Science Officer, commented, “We launched five new countries, including Mexico, during 2011. We launched sales and marketing initiatives designed to support our Associates in growing their businesses at our annual MannaQuest event in Seattle. We continue to support the accelerating growth of our business among ethnic markets, particularly the Chinese and Korean ethnic markets in Canada and the United States. We also introduced our Omega-3 with Vitamin D3 supplement to our customers. We believe these activities, along with the collaborative research being conducted on our products, continue to add value to the company.”
About Mannatech
Mannatech, Incorporated, develops high-quality health, weight and fitness, and skin care products that are based on the solid foundation of nutritional science and development standards. Mannatech is dedicated to its platform of Social Entrepreneurship based on the foundation of promoting, aiding and optimizing nutrition where it is needed most around the world.
Mannatech’s proprietary products are available through independent sales Associates around the globe including the United States, Canada, South Africa, Namibia, Australia, New Zealand, Austria, Denmark, Germany, Norway, Sweden, the Netherlands, the United Kingdom, Japan, Taiwan, Singapore, Estonia, Finland, the Republic of Ireland, Czech Republic, the Republic of Korea and Mexico. For more information, visit Mannatech.com.
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Even with depreciation (as outlined as the major cash loss) the figures show that Mannatech is going backwards Ted. Worrying times ahead for this company (again) it would seem. Good info as always!
Neil
Time for new Leadership at Mannatech. They need a CEO with creative thinking that can add value to the Company. They have declined 50% in sales over the last 5 years and initiatives in 2012 will not change that slide. Time for the Doctor to go back to being a Doctor and bring in a business person to turn this thing around.
Yes Ted, Mannatech has had better financial statement years, no question. However, the Company ranks #55 for 2011 on the top 100 MLM’s. Could be worse!! For the Mannatech Associates who absolutely love the products and see people’s lives change as a result of them, they continue to grow and share these products and our businesses continue to grow. Yes, Mannatech could improve in marketing and social media integration and they are working on it. A new legendary product launch in April may be the impulse that shifts the trends. Along with many, I believe in the products, love the people but mostly love the incredible lifestyle change experienced as a result of this company. So yes, Ted, I see you are not really a pro Mannatech person as in your last few posts but there are many Associates who do love this company, what it stands for and who continue to achieve financial successes.. Trendy it’s not but Manatech continues to provide science based cutting edge food technology products for health and beauty all built on the foundation of 100% plant based food nutrition and the glyconutrient product Ambrotose© . Netherlands associates are growing by leaps and bounds, Hopefully we can change your opinion of this great company in the future.
I’ve been into nutrition & supplements since 1974, and have done extensive study & research. In 1997, I joined Mannatech, and in the last 15 years I’ve personally witnessed hundreds of lives saved as a result of taking these products….what I mean by that statement is that the people were told by their doctor there was nothing more that could be done, then they started taking the Mannatech products and they got well, and are still well as of today. My biggest worry is that if the company continue’s to lose money and goes out of business,that Ambrotose will no longer be available, and I’m convinced that every person needs Ambrotose.
I got into Mannatech in 2008 at my first attempt at network marketing. I won a few incentives but was not able to reproduce growth in others. I enjoyed the products and thought they had great value but as I continued to look at the business side I had frustration after frustration. I find it remarkable that with new products having been introduced since 2008, price increases and new countries opening up that Mannatech has as many loyal customers as it does. This is a testament to product loyalty but the same cannot be said for the other major piece and that is that this is supposed to be a network marketing company where people can make a living. My 2 upline leaders continue to sing the praises of Mannatech and when asked how many people are making money in their downline, the answer for the one with a downline of well over 1,000 is none and the other one with a downline of over 3,000 is 5. Ambrotose is a great product but the company has managed to mismanage their marketing and comp plan so badly that fewer and fewer people will ever get to enjoy it’s benefits.