Mannatech Reports Fourth Quarter and Year End Results

Mannatech Reports Fourth Quarter and Year End Results

COPPELL, Texas--(BUSINESS WIRE)-- Mannatech, Incorporated(NASDAQ: MTEX), a leading developer and provider of nutritional supplements and skin care products based on Real Food Technology® solutions, today announced financial results for its fourth quarter and year end 2012.

Fourth Quarter Results


Fourth quarter net sales for 2012 were $42.3 million, a decrease of 11.7% compared to $47.9 million in the fourth quarter of 2011. Net sales for United States and Canada declined 14.4% to $20.2 million compared to $23.6 million in the fourth quarter of 2011. International net sales of $22.1 million decreased 9.1% compared to $24.3 million in the fourth quarter of 2011.

Net income was $0.3 million, or $0.10 per diluted share, for the fourth quarter of 2012, compared to net loss of ($7.0 million), or ($2.63) per diluted share, for the fourth quarter of 2011.

Dr. Robert Sinnott, CEO & Chief Science Officer, commented, "Mannatech has achieved profitability in the last half of 2012. This is an important milestone in our financial recovery. We believe our strategies for 2013 will continue to increase our cash flow and improve the current sales trends."

Year End Results

Annual net sales for 2012 were $173.4 million, down 13.6% from $200.7 million for 2011. The company reported a net loss for 2012 of $1.4 million, compared to a net loss of $20.7 million in 2011. The loss per share was $0.52 in 2012, compared to the loss per share of $7.80 in 2011.

The total number of independent associates and members based on a 12-month trailing period was approximately 229,000 as of each of December 31, 2012 and 2011. The number of new independent associates and members for 2012 was 97,000, compared to 77,000 in 2011, which was an increase of 20,000 over the previous year.

Dr. Robert Sinnott further commented, "We are pleased our consumers and independent business builders have accepted our newest product, NutriVerus, which was launched globally during 2012. We believe this product acceptance, as well as the increase in the number of new independent associates and members recruited in 2012 over 2011, illustrates our field's dedication to the Mannatech brand."

Investors interested in additional information about our financial results for 2012 and upcoming strategy for 2013 can access our Quarterly Earnings Archive at http://ir.mannatech.com.

Individuals interested in Mannatech's products or in exploring its business opportunity can learn more at mannatech.com.

About Mannatech

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, Namibia, Australia, New Zealand, Austria, Denmark, Germany, Norway, Sweden, the Netherlands, the United Kingdom, Japan, Taiwan, Singapore, Estonia, Finland, the Republic of Ireland, the 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" 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 this release.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share and per share information)

December 31,

2012

2011

ASSETS

Cash and cash equivalents

$

14,377

$

18,057

Restricted cash

1,515

1,263

Accounts receivable, net of allowance of $20 and $22 in 2012 and 2011, respectively

324

304

Income tax receivable

884

888

Inventories, net

15,154

17,786

Prepaid expenses and other current assets

2,487

2,497

Deferred tax assets

561

936

Total current assets

35,302

41,731

Property and equipment, net

4,825

9,566

Construction in progress

8

Long-term restricted cash

3,736

3,386

Other assets

3,187

2,815

Long-term deferred tax assets

502

772

Total assets

$

47,560

$

58,270

LIABILITIES AND SHAREHOLDERS' EQUITY

Current portion of capital leases

$

780

$

852

Accounts payable

4,154

4,825

Accrued expenses

6,348

10,514

Commissions and incentives payable

7,373

8,567

Taxes payable

3,901

3,364

Current deferred tax liability

179

185

Deferred revenue

1,486

1,569

Total current liabilities

24,221

29,876

Capital leases, excluding current portion

938

1,358

Long-term deferred tax liabilities

2

1

Other long-term liabilities

2,178

5,382

Total liabilities

27,339

36,617

Commitments and contingencies

Shareholders' equity:

Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding

Common stock, $0.0001 par value, 99,000,000 shares authorized, 2,759,858 shares issued and
2,647,735 shares outstanding as of December 31, 2012 and 2,769,756 shares issued and
2,648,518 shares outstanding as of December 31, 2011

Additional paid-in capital

42,614

42,408

Accumulated Deficit

(6,920

)

(5,532

)

Accumulated other comprehensive loss

(677

)

(427

)

Less treasury stock, at cost, 121,237 shares in 2012 and 2011

(14,796

)

(14,796

)

Total shareholders' equity

20,221

21,653

Total liabilities and shareholders' equity

$

47,560

$

58,270

CONSOLIDATED STATEMENTS OF OPERATIONS - (UNAUDITED)

(in thousands, except per share information)

Three months ended
December 31,

Twelve months ended
December 31,

2012

2011

2012

2011

Net sales

$

42,285

$

47,906

$

173,447

$

200,689

Cost of sales

8,817

10,247

34,641

38,515

Gross profit

33,468

37,659

138,806

162,174

Operating expenses:

Commissions and incentives

17,544

20,782

73,823

87,426

Selling and administrative

8,936

10,555

37,176

47,821

Depreciation and amortization

673

2,565

4,755

10,697

Other operating (1)

4,922

9,847

24,032

33,119

Total operating expenses

32,075

43,749

139,786

179,063

Income/(Loss) from operations

1,393

(6,090

)

(980

)

(16,889

)

Interest income

76

120

50

117

Other income (expense), net

88

(12

)

630

(1,106

)

Income/(Loss) before income taxes

1,557

(5,982

)

(300

)

(17,878

)

(Provision) benefit for income taxes

(1,303

)

(986

)

(1,088

)

(2,781

)

Net Income/(Loss)

$

254

$

(6,968

)

$

(1,388

)

$

(20,659

)

Income/(Loss) per common share:

Basic

$

0.10

$

(2.63

)

$

(0.52

)

$

(7.80

)

Diluted

$

0.10

$

(2.63

)

$

(0.52

)

$

(7.80

)

Weighted-average common shares outstanding:

Basic

2,648

2,649

2,648

2,649

Diluted

2,648

2,649

2,648

2,649

(1) Mannatech recorded a reduction to the long-term accrued royalty liability in the fourth quarter which favorably impacted other operating expenses by $0.8 million in 2012 and $0.1 million in 2011.

The approximate number of new and continuing independent associates and members who purchased our packs or products during the twelve months ended December 31 was as follows:

2012

2011

New

97,000

42

%

77,000

33

%

Continuing

132,000

58

%

152,000

66

%

Total

229,000

100

%

229,000

100

%



Mannatech, Incorporated
Brett Duncan, 972-471-7367
bduncan@mannatech.com
or
Donna Giordano, 972-471-6512
Manager, Executive Office Administration
ir@mannatech.com
www.mannatech.com

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS:

The article Mannatech Reports Fourth Quarter and Year End Results originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.