Incorporated (NASDAQ: MTEX),
a leading developer and provider of nutritional supplements and skin
care products based on Real
Food Technology® solutions, today reported net income of
$2.2 million, or $0.83 per diluted share, for the third quarter ending
September 30, 2012, compared to a net loss of $3.7 million, or $1.38 per
diluted share, for the third quarter of 2011.
In achieving net income of $2.2 million for the third quarter of 2012,
non-cash items impacting profitability included a reduction in a
previously recognized deferred tax asset valuation allowance of
approximately $1.0 million, a release of reserves related to transaction
taxes of $0.8 million due to the expiration of statutes of limitations,
and income from foreign currency exchange rate fluctuations of $0.5
million. Third quarter operating profitability, net income adjusted for
the non-cash items listed above, was near even as we move closer to our
goal of profitability. We expect our continuation of targeted expense
reductions to have a positive impact on profitability and cash flow.
Net sales for the third quarter of 2012 were $43.0 million, a decrease
of 14.8%, compared to $50.5 million in the third quarter of 2011. Net
sales for the United States and Canada declined 16.3% to $20.5 million,
compared to $24.5 million in the third quarter of 2011. International
net sales of $22.5 million decreased 13.5%, compared to $26.0 million in
the third quarter of 2011.
Recruiting increased 38.4% as compared to the third quarter of 2011. New
independent associates and members for the third quarter of 2012 were
27,610 compared to 19,950 in 2011. Total active independent associates
and members were approximately 233,000 as of the 12-month trailing
period ended September 30, 2012, compared to 239,000 as of the 12-month
trailing period ended September 30, 2011.
Dr. Robert Sinnott, CEO and Chief Science Officer, commented, "Our
global sales force continues to gain strength as evidenced by the
increased levels of recruitment. I traveled to several national
conventions in North America, Japan, Taiwan and Australia where I had
the opportunity to share with our new and existing associate leaders the
exciting new product, NutriVerus™ powder and how this product positions
Mannatech to introduce many more customers to the world of high-quality,
Mannatech will hold a conference call and webcast to discuss this
announcement with investors on Thursday, November 8, 2012 at 9:00 a.m.
Central Standard Time/10:00 a.m. Eastern Standard Time. Investors may
listen to the call by accessing Mannatech's website at Mannatech.com.
For those unable to listen to the live broadcast, a replay will be
available shortly after the call. The toll-free replay number is
855-859-2056 (International: 404-537-3406); the Conference ID to access
the call is 37606108.
Individuals interested in Mannatech's products or in exploring its
business opportunity can learn more at Mannatech.com.
Mannatech, Incorporated, develops high-quality health, weight and
fitness, and skin care products that are based on the solid foundation
of nutritional science and development standards. Mannatech is dedicated
to its platform of social entrepreneurship based on the foundation of
promoting, aiding and optimizing nutrition where it is needed most
around the world. Mannatech's proprietary products are available through
independent sales associates around the globe including the United
States, Canada, South Africa, the Republic of Namibia, Australia, New
Zealand, Austria, Denmark, Germany, Norway, Sweden, the Netherlands, the
United Kingdom, Japan, Taiwan, Singapore, Estonia, Finland, the Republic
of Ireland, Czech Republic, the Republic of Korea and Mexico. For more
information, visit Mannatech.com.
Please Note: This release contains "forward-looking statements"
within the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as amended,
and the Private Securities Litigation Reform Act of 1995. These
forward-looking statements generally can be identified by use of phrases
or terminology such as "anticipate," "believe," "will," "intend" or
other similar words or the negative of such terminology. Similarly,
descriptions of Mannatech's objectives, strategies, plans, goals or
targets contained herein are also considered forward-looking statements.
Mannatech believes this release should be read in conjunction with all
of its filings with the United States Securities and Exchange Commission
and cautions its readers that these forward-looking statements are
subject to certain events, risks, uncertainties, and other factors. Some
of these factors include, among others, Mannatech's inability to attract
and retain associates and members, increases in competition, litigation,
regulatory changes, and its planned growth into new international
markets. Although Mannatech believes that the expectations, statements,
and assumptions reflected in these forward-looking statements are
reasonable, it cautions readers to always consider all of the risk
factors and any other cautionary statements carefully in evaluating each
forward-looking statement in this release, as well as those set forth in
its latest Annual Report on Form 10-K and Quarterly Report on Form 10-Q,
and other filings filed with the United States Securities and Exchange
Commission, including its current reports on Form 8-K. All of the
forward-looking statements contained herein speak only as of the date of
CONSOLIDATED BALANCE SHEETS - (UNAUDITED)
(in thousands, except share and per share amounts)
CONSOLIDATED STATEMENTS OF OPERATIONS - (UNAUDITED)
(in thousands, except per share information)
The approximate number of new and continuing associates who purchased
our packs or products during the twelve months ended September 30, 2012
and 2011, plus member accounts eligible to purchase products were as
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