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Mannatech Q1 Revenue Up 4.7% To $38.3 Million

Mannatech, Incorporated, a global health and wellness company committed to transforming lives to make a better world, recently announced financial results for its first quarter of 2021.

First Quarter End Results

First quarter net sales for 2021 were $38.3 million, an increase of $1.7 million, or 4.7%, as compared to $36.6 million in the first quarter of 2020. Income from operations increased to $2.8 million for the first quarter of 2021, from $2.0 million in the same period in 2020.

Net income was $2.2 million, or $1.04 per diluted share, for the first quarter of 2021, as compared to net income of $2.8 million, or $1.15 per diluted share, for the first quarter of 2020.

Gross profit as a percentage of sales increased to 81.2% for the three months ended March 31, 2021, as compared to 80.9% for the same period in 2020.

Commission and incentives as a percentage of net sales remained constant at 40.7% for each of the three months ended March 31, 2021 and 2020.

For the three months ended March 31, 2021, overall selling and administrative expenses increased by $0.2 million to $7.1 million, as compared to $6.9 million for the same period in 2020. The increase in selling and administrative expenses was due to a $0.3 million increase in payroll costs, a $0.1 million increase in marketing costs, which was partially offset by a $0.1 million decrease in stock-based compensation and a $0.1 million decrease in contract labor costs.

For the three months ended March 31, 2021, other operating costs decreased by $0.2 million, or 4.4%, to $5.1 million, as compared to $5.3 million for the same period in 2020. The decrease in operating costs was primarily due to a $0.3 million decrease in travel and entertainment and a $0.1 million decrease in office expenses, which was partially offset by a $0.2 million increase in consulting fees.

For the three months ended March 31, 2021, provision for taxes was $0.3 million, or an effective rate of 13.3%. For the three months ended March 31, 2020, taxes were a $0.9 million benefit. The effective tax rate for the three months ended March 31, 2021 was different from the federal statutory rate due primarily to the mix of earnings across jurisdictions and the associated valuation allowance recorded on losses in certain jurisdictions.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 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, 2021 and 2020 were approximately 187,000 and 166,000, respectively. Recruitment increased 4.6% in the first quarter of 2021 as compared to the first quarter of 2020. The number of new independent associate and preferred customer positions in the company’s network for the first quarter of 2021 was approximately 19,538 as compared to 18,687 in 2020.

About Mannatech

Mannatech, Incorporated is committed to transforming lives through the development of high-quality integrated health, weight management, fitness and skin care products distributed through its global network of independent associates and members. The company has been operating for more than 25 years with operations in 25 markets. For more information, visit Mannatech.com.

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

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