The Free Business For Home App: Direct Selling News, Company Analysis and Market Data

Download for free:

NHT Global Q3 Revenue Down 17% to $14.1 Million

NHT Global Q3 Revenue Down 17% to $14.1 Million

Natural Health Trends Corp., a direct-selling company that markets under the NHT Global brand, announced revenue decreased 14 percent for the third quarter ended September 30, 2020.

Revenue of $14.1 million compared to $16.4 million in the second quarter of 2020 and decreased 17 percent compared to $17.0 million in the third quarter of 2019.

“The challenging macroeconomic conditions inherent in the global economy as a result of the COVID-19 pandemic continued to weigh on our financial performance with third quarter revenue of $14.1 million down 14 percent compared to the prior quarter,” commented Chris Sharng, president of Natural Health Trends Corp.

“Our total third quarter orders were relatively consistent with both the prior quarter and the first quarter of 2020 with our deferred revenue balance increasing by $832,000 from June to September 2020.”

 

” Additionally, there were a number of bright spots in certain markets with third quarter order volume exceeding that of the first two quarters of the year and revenue outside of Hong Kong increasing 10 percent over the prior quarter. When coupled with our proactive cost reduction efforts, we were able to maintain our profitability on reduced sales in the third quarter.”

For the year, revenue of $45.5 million decreased 24% compared to $59.8 million in the first nine months of 2019.

Third Quarter 2020 Financial Highlights:

  • Revenue of $14.1 million decreased 14% compared to $16.4 million in the second quarter of 2020 and decreased 17% compared to $17.0 million in the third quarter of 2019.
  • Operating income was $668,000 compared to $183,000 in the second quarter of 2020 and a loss of $1.1 million in the third quarter of 2019.
  • Net income was $635,000, or $0.06 per diluted share, compared to $34,000, or break-even per diluted share, in the second quarter of 2020 and net loss of $1.2 million, or $0.12 per diluted share, in the third quarter of 2019.
  • The number of Active Members1 decreased 2% to 53,300 at September 30, 2020 compared to 54,370 at June 30, 2020, and decreased 22% compared to 68,150 at September 30, 2019.
  • Revenue of $45.5 million decreased 24% compared to $59.8 million in the first nine months of 2019.
  • Operating loss was $597,000 compared to a loss of $3.8 million in the first nine months of 2019
  • Net income was $96,000, or $0.01 per diluted share, compared to a net loss of $2.8 million, or $0.25 per diluted share, in the first nine months of 2019.

Management Commentary

“The challenging macroeconomic conditions inherent in the global economy as a result of the COVID-19 pandemic continued to weigh on our financial performance with third quarter revenue of $14.1 million down 14% compared to the prior quarter,” commented Chris Sharng, President of Natural Health Trends Corp.

“Our total third quarter orders were relatively consistent with both the prior quarter and the first quarter of 2020 with our deferred revenue balance increasing by $832,000 from June to September 2020.  Additionally, there were a number of bright spots in certain markets with third quarter order volume exceeding that of the first two quarters of the year and revenue outside of Hong Kong increasing 10% over the prior quarter. When coupled with our proactive cost reduction efforts, we were able to maintain our profitability on reduced sales in the third quarter.”

Mr. Sharng concluded, “We have continued to manage the elements of our business that are within our control to preserve our profitability and leader base which we view as critical to our success. Further, we were pleased to remain in a position to return value to our stockholders through our quarterly cash dividend, made possible by our strong balance sheet. I’d like to extend my thanks to all of our leaders, members, preferred customers and shareholders for their ongoing commitment to NHT Global. Through all of the challenges 2020 has presented, we are very grateful to continue supporting our mission of improving health and quality of life through our superior products and global opportunity.”

Balance Sheet and Cash Flow

  • Net cash used in operating activities was $1.5 million in the first nine months of 2020, compared to $18.7 million in the first nine months of 2019.
  • Total cash and cash equivalents were $90.8 million at September 30, 2020, down slightly from $93.2 million at June 30, 2020.
  • On November 2, 2020, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 on each share of common stock outstanding. The dividend will be payable on November 27, 2020 to stockholders of record as of November 17, 2020.

About Natural Health Trends Corp.

Natural Health Trends Corp. (NASDAQ: NHTC) is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, the Americas, and Europe. The Company markets premium quality personal care products under the NHT Global brand.

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

Load more