Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, recently announced its financial results for the quarter ended September 30, 2022.
Third Quarter 2022 Financial Highlights
- Revenue of $11.7 million decreased 12% compared to $13.4 million in the second quarter of 2022 and decreased 18% compared to $14.3 million in the third quarter of 2021.
- Operating loss was $145,000 compared to operating income of $215,000 in the second quarter of 2022 and operating income of $479,000 in the third quarter of 2021.
- Net income was $47,000, or breakeven per diluted share, compared to net income of $183,000, or $0.02 per diluted share, in the second quarter of 2022 and net income of $471,000, or $0.04 per diluted share, in the third quarter of 2021.
- The number of Active Members1 decreased 4% to 41,170 at September 30, 2022 compared to 43,020 at June 30, 2022, and decreased 10% compared to 45,950 at September 30, 2021.
Year-to-Date 2022 Financial Highlights
- Revenue of $36.6 million decreased 17% compared to $43.9 million in the first nine months of 2021.
- Operating loss was $313,000 compared to operating income of $1.1 million in the first nine months of 2021.
- Net income was $125,000, or $0.01 per diluted share, compared to $853,000, or $0.07 per diluted share, in the first nine months of 2021.
“Our third quarter results were adversely impacted by extended and ongoing COVID-related measures in China,”
commented Chris Sharng, President of Natural Health Trends Corp.
“Despite the unpredictable environment our members must navigate through, they continue to work hard to share our superior health, wellness and beauty products and we continue to support them with new reward programs, virtual events, promotions and cautiously planned and executed incentive trips and trainings.”
Mr. Sharng continued,
“We recently kicked off digital initiatives to improve our customer acquisition, member onboarding and overall shopping experience.
We believe this online focus will be a key driver for future growth and enhanced productivity, in support of shareholder value.”
Balance Sheet and Cash Flow
- Net cash used in operating activities was $5.8 million in the first nine months of 2022, compared to $557,000 in the first nine months of 2021.
- Total cash and cash equivalents were $70.7 million at September 30, 2022, down from $75.6 million at June 30, 2022.
- On October 31, 2022, 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 25, 2022 to stockholders of record as of November 15, 2022.
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.
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