Mannatech Q1 Sales Down 8.2% To $38 Million
Mannatech, Incorporated (NASDAQ: MTEX), a global health and wellness company committed to transforming lives to make a better world, today announced financial results for its first quarter of 2019.
Quarter End Results
First quarter net sales for 2019 were $38.0 million, a decrease of $3.4 million, or 8.2%, as compared to $41.4 million in the first quarter of 2018.
Income from operations increased to $1.1 million for the first quarter 2019, from a loss of $0.9 million in the same period in 2018.
Net income was $0.7 million, or $0.28 per diluted share, for the first quarter 2019, as compared to a net loss of $0.3 million, or $0.10 per diluted share, for the first quarter 2018.
Gross profit as a percentage of sales improved to 80.4% for the three months ended March 31, 2019, as compared to 80.1% for the same period in 2018.
Commission and incentives, as a percentage of net sales was 40.0% for the three months ended March 31, 2019, as compared to 41.0% for the same period in the prior year.
For the three months ended March 31, 2019, overall selling and administrative expenses decreased by $0.4 million to $7.6 million, as compared to $8.0 million for the same period in 2018. The decrease in selling and administrative expenses consisted primarily of a $0.7 million decrease in marketing costs partially offset by a $0.3 million increase in payroll related costs.
For the three months ended March 31, 2019, other operating costs decreased by $2.4 million to $6.1 million, as compared to $8.5 million for the same period in 2018 attributed to a $0.8 million decrease in travel and entertainment costs associated with our corporate sponsored events and a $0.2 million decrease in legal and consulting fees. Finally, last year the Company incurred the $1.1 million one-time costs of moving the headquarters during the first quarter.
For lack of participation, the Company will not conduct quarterly conference calls; the Company intends to continue its practice of issuing earnings releases in connection with the filing of its quarterly and annual reports.
The approximate number of new and continuing independent associate and preferred customer positions held by individuals in Mannatech’s network and associated with purchases of our packs or products as of March 31, 2019 and 2018 were approximately 203,000 and 210,000, respectively. Recruiting increased 12.0% in the first quarter of 2019 as compared to the first quarter of 2018. The number of new independent associate and preferred customer positions in the company’s network for the first quarter of 2019 was approximately 20,363 as compared to 18,180 in 2018.
Mannatech, Incorporated, offers a profound wellness experience that makes a difference in the lives of people across the world. Through its innovative Glyconutrition products, Mannatech changes lives, providing an unprecedented level of natural wellness, freedom and purpose. With 25 years of experience and operations in 26 markets^, Mannatech is committed to changing lives.
For more information, visit Mannatech.com.
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