Mannatech Q3 Sales Up 3.9% To $39.4 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 third quarter of 2021.
Third Quarter End Results
Third quarter net sales for 2021 were $39.4 million, an increase of $1.4 million, or 3.9%, as compared to $38.0 million in the third quarter of 2020. Income from operations increased to $3.3 million for the third quarter of 2021, from $1.4 million in the same period in 2020.
Net income was $2.9 million, or $1.44 per diluted share, for the third quarter of 2021, as compared to net income of $1.6 million, or $0.76 per diluted share, for the third quarter of 2020.
For the three months ended September 30, 2021, overall selling and administrative expenses increased by $0.5 million to $7.1 million, as compared to $6.6 million for the same period in 2020. The increase in selling and administrative expenses consisted of a $0.9 million increase in payroll costs, which was partially offset by a $0.3 million decrease in marketing costs and a $0.1 million decrease in contract labor.
For the three months ended September 30, 2021, other operating costs decreased by $0.1 million, or 2.0%, to $5.0 million, as compared to $5.1 million for the same period in 2020. The decrease in operating costs was primarily due to a $0.3 million increase in consulting fees, which was offset by a $0.2 million decrease in bad debt expense and a $0.2 million decrease in sales tax expenses resulting from less utilization of the loyalty program and a sales tax audit refund.
For the three months ended September 30, 2021, provision for taxes was $0.4 million, or an effective rate of 10.7%, which is different from the federal statutory rate due primarily to the Company taking the IRC 250 deduction and applying foreign tax credits. For the three months ended September 30, 2020, provision for taxes was $22,000, or an effective rate of 1.3%. The effective tax rate for the three months ended September 30, 2021 and 2020 was determined based on the estimated annual effective income tax rate.
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 September 30, 2021 and 2020 were approximately 166,000 and 180,000, respectively.
Recruitment of new independent associates and preferred customers decreased by 1.4% to 25,036 in the third quarter of 2021 as compared to 25,388 in the third quarter of 2020.
Mannatech, Incorporated is committed to transforming lives through the development of high-quality integrated health, weight management, fitness, and skincare 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 www.Mannatech.com.
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