Mannatech Reports 2015 Q1Net Sales Up 3.3% To $44.4 Million

 

Mannatech, Incorporated, the founder of the M5MSM (Mission 5 MillionSM) social entrepreneurial movement, the pioneer of nutritional glycobiology and the global innovator of naturally sourced supplements based on Real Food Technology solutions, today announced financial results for its first quarter 2015.

First quarter net sales for 2015 were $44.4 million, an increase of 3.3% as compared to $43.0 million in the first quarter of 2014. Mannatech’s net sales increased 7.4% in constant dollars, which is a non-GAAP financial measure that excludes the impact of fluctuations in foreign currency exchange rates.

Net income was $1.1 million, or $0.40 per diluted share, for the first quarter 2015, as compared to net income of $0.2 million, or $0.08 per diluted share, for the first quarter 2014.

Dr. Robert Sinnott, Mannatech’s CEO and Chief Science Officer, said, “We are pleased that our global teams continue making forward progress on multiple fronts. Our mandates for this year remain largely the same; to improve our global sales, keep expenses in line, and increase operational efficiency to improve profitability.”

For the three months ended March 31, 2015, the company’s operations outside of North America accounted for approximately 59.2% of its consolidated net sales, whereas in the same period in 2014, its operations outside of North America accounted for approximately 52.8% of its consolidated net sales.

For the three months ended March 31, 2015, Asia/Pacific net sales increased by $3.7 million, or 19.5%, to $22.7 million, as compared to $19.0 million for the same period in 2014. The increase in net sales is due primarily to an increase in average order size and $0.6 million in UthTM skin care product sales.

For the same period in 2014, Mannatech deferred $0.8 million in revenue from its loyalty program and Uth skin care products had not yet been launched. Fluctuations in Asia/ Pacific foreign currency exchange rates had a $1.3 million unfavorable impact on net sales during the three months ended March 31, 2015.

For the three months ended March 31, 2015, EMEA net sales decreased by $0.1 million, or 2.7%, to $3.6 million, as compared to $3.7 million for the same period in 2014. Active independent associates and members increased 16% as compared to the same period in the prior year.

Fluctuations in EMEA foreign currency exchange rates had a $0.5 million unfavorable impact on net sales during the three months ended March 31, 2015. Uth skin care product sales increased net sales by $0.1 million during the three months ended March 31, 2015. For the same period in 2014, Mannatech deferred $0.2 million in revenue from the loyalty program and Uth skin care product sales had not been launched.

North American net sales decreased by $2.2 million, or 10.8%, to $18.1 million, as compared to $20.3 million for the same period in 2014 due to a 15.7% decline in active independent associates and members. For the same period in 2014, $1.2 million in revenue was deferred from the loyalty program.

Global recruiting decreased 0.4% in the first quarter 2015 as compared to the first quarter of 2014. The number of new independent associates and members for the first quarter of 2015 was approximately 25,500, as compared to 25,600 in 2014. The total number of independent associates and members based on a 12-month trailing period was approximately 230,000 as of March 31, 2015, as compared to 246,000 as of March 31, 2014.

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 childhood 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, 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, Mexico, Namibia, Spain and Hong Kong. For more information, visit Mannatech.com.