Mannatech, Incorporated (NASDAQ: MTEX) a pioneer of nutritional glycobiology and leading innovator of naturally-sourced supplements based on Real Food Technology solutions, today reported net sales for the third quarter of 2013 were $44.4 million, an increase of 3.3% as compared to $43.0 million in the third quarter of 2012 and a net loss of $0.8 million, or $0.30 per diluted share, for the third quarter ending September 30, 2013, as compared to a net income of $2.2 million, or $0.83 per diluted share, for the third quarter of 2012.
During the third quarter of 2013, we implemented a global loyalty program for our associates and members who purchase products using a qualified automatic order. Participating associates and members earn loyalty points, which can be applied to future purchases.
The company defers the dollar equivalent in revenue for these loyalty points until the points are applied or forfeited. During the third quarter of 2013, the company deferred net sales of $2.5 million due to the loyalty program.
Net sales for Asia/Pacific increased 23.6% to $22.0 million as compared to $17.8 million in the third quarter 2012 due to an increase in the number of active associates and an increase in the revenue generated per active associate and member. The increases were offset by a net sales deferral of $1.2 million for the loyalty program and a $1.2 million unfavorable impact on net sales due to fluctuations in foreign currency exchange rates.
Net sales for North America declined 9.7% to $18.7 million as compared to $20.7 million in the third quarter of 2012. The decline in revenue is due to the net sales deferral of $1.2 million for the loyalty program in the third quarter of 2013 and a net reduction in active members and associates.
Net sales for Europe, the Middle East and Africa declined 17.8% to $3.7 million as compared to $4.5 million in the third quarter of 2012. This decline was primarily due to a decrease in the average revenue per associate and member. Additionally, the company experienced a $0.4 million unfavorable impact on net sales due to fluctuations in foreign currency exchange rates.
Recruiting increased 4.4% in the third quarter of 2013 as compared to the third quarter of 2012. The number of new independent associates and members for the third quarter of 2013 was approximately 28,800, as compared to 27,600 during the same period in 2012. The total number of independent associates and members based on a 12-month trailing period was approximately 239,000 as of September 30, 2013, as compared to 233,000 as of September 30, 2012.
Dr. Robert Sinnott, CEO & Chief Science Officer, commented,
“We launched a global loyalty program and completed the global launch of our enhanced associate compensation plan in July. These activities, plus the continued net increase in active associates and members, appear to be driving organic growth in markets open for at least a year.”
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 in regions around the globe including North America, Asia/Pacific, and Europe, the Middle East and Africa. For more information, visit Mannatech.com.
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