Mannatech Q1 Sales $36.6 Million

Mannatech Q1 Sales $36.6 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 2020.

Quarter End Results

First quarter net sales for 2020 were $36.6 million, a decrease of $1.4 million, or 3.6%, as compared to $38.0 million in the first quarter of 2019. Income from operations increased to $2.0 million for the first quarter 2020, from $1.1 million in the same period in 2019.

Net income was $2.8 million, or $1.15 per diluted share, for the first quarter 2020, as compared to a net income of $0.7 million, or $0.28 per diluted share, for the first quarter 2019.

Gross profit as a percentage of sales improved to 80.9% for the three months ended March 31, 2020, as compared to 80.4% for the same period in 2019.

Commission and incentives as a percentage of net sales was 40.7% for the three months ended March 31, 2020, as compared to 40.0% for the same period in the prior year.

For the three months ended March 31, 2020, overall selling and administrative expenses decreased by $0.7 million to $6.9 million, as compared to $7.6 million for the same period in 2019. The decrease in selling and administrative expenses were due to a $0.7 million decrease in payroll costs.

For the three months ended March 31, 2020, other operating costs decreased by $0.8 million to $5.3 million, as compared to $6.1 million for the same period in 2019 primarily due to a $0.3 million decrease in office expenses, a $0.3 million decrease in legal and consulting fees and a $0.2 million decrease in travel and entertainment.

For the three months ended March 31, 2020, taxes were a $0.9 million benefit, compared to the same period in the prior year, which had a $0.3 million provision. The effective tax rate for the three months ended March 31, 2020 was different from the federal statutory rate due primarily to the $1.2 million benefit recorded in connection with the carryback of U.S. net operating losses as allowed by the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), enacted March 27, 2020. The effective tax rate for the three months ended March 31, 2019 was different from the federal statutory rate due primarily to the associated valuation allowance recorded on losses in certain jurisdictions.

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 products as of March 31, 2020 and 2019 were approximately 166,000 and 203,000, respectively.

As the novel coronavirus (“COVID-19”) spread into our markets, recruiting decreased 8.2% in the first quarter of 2020 as compared to the first quarter of 2019. The number of new independent associate and preferred customer positions in the company’s network for the first quarter of 2020 was approximately 18,687 as compared to 20,363 in 2019.

About Mannatech

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 please visit www.mannatech.com

 

Get more information, facts and figures about Mannatech, click here for the Mannatech overview.

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