Exhibit 99.1

Natural Health Trends Reports Strong Second Quarter 2016 Financial Results

•
Revenue increased 15% year-over-year to $80.4 million
•
Record operating income increased 22% year-over-year to $14.9 million
•
Increased quarterly dividend by 17% to $0.07 per share
•
Repurchased $5.4 million of common stock during the quarter

LOS ANGELES – July 27, 2016 – 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, today announced its financial results for the quarter ended June 30, 2016.

Second Quarter 2016 Financial Highlights

•
Total revenue increased 15% to $80.4 million, compared to $69.7 million in the second quarter of 2015.

◦
Revenue from the Company’s Hong Kong operations, which represented 91% of total revenue, increased 13% to $73.3 million, compared to $64.8 million in the second quarter of 2015.

◦
Revenue outside of Hong Kong increased 43% to $7.0 million, compared to $4.9 million in the second quarter of 2015.

•
Operating income increased 22% to $14.9 million, compared to $12.3 million in the second quarter of 2015.

•
Additional income tax provision of $2.4 million was recognized in the second quarter of 2016 for the expected partial repatriation of overseas profits, resulting in an overall effective tax rate of 18%.

•
Net income was $12.2 million, or $1.07 per diluted share, compared to $12.3 million, or $0.98 per diluted share, in the second quarter of 2015. Net income, excluding the impact of the additional tax provision, would have increased 19% to $14.6 million, or $1.29 per diluted share.

•
The number of Active Members1 increased 6% to 126,440 at June 30, 2016, compared to 119,800 at March 31, 2016, and increased 65% compared to 76,400 at June 30, 2015.

1 
Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve month period.


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Year-to-Date 2016 Financial Highlights

•
Total revenue increased 40% to $154.7 million, compared to $110.4 million in the first six months of 2015.

•
Operating income increased 51% to $28.9 million, compared to $19.2 million in the first six months of 2015.

•
Additional income tax provision of $4.8 million was recognized in the first six months of 2016 for the expected partial repatriation of overseas profits, resulting in an overall effective tax rate of 19%.

•
Net income was $23.5 million, or $2.03 per diluted share, compared to $19.0 million, or $1.52 per diluted share, in the first six months of 2015. Net income, excluding the impact of the additional tax provision, would have increased 49% to $28.2 million, or $2.44 per diluted share.

Management Commentary

“We had an excellent second quarter characterized by record product orders and operating profit,” commented Chris Sharng, President of Natural Health Trends Corp. “We once again achieved a double-digit, year-over-year increase in revenue growth driven by our emphasis on products, training, services and marketing.”

Mr. Sharng further commented, “Going forward, we will remain focused on expanding our global footprint, continuing to acquire members in new and existing markets, as well as our product development initiatives to drive sustainable, long-term growth. Through our strong cash generation, we are very well positioned to grow our business organically while simultaneously returning value to our stockholders through quarterly cash dividends and execution on our $70 million stock repurchase program.”

Balance Sheet and Cash Flow

•
At June 30, 2016, cash and cash equivalents totaled $109.6 million, compared to $99.6 million at March 31, 2016.

•
Net cash provided by operating activities in the second quarter of 2016 was $16.6 million, compared to $22.9 million in the second quarter of 2015. For the first six months of 2016, net cash provided by operating activities was $30.4 million, compared to $39.5 million in the first six months of 2015.

•
On July 19, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.07 per share on outstanding common stock, which represents a 17% increase over the prior quarter dividend. The dividend will be payable on August 26, 2016 to stockholders of record as of August 16, 2016.

•
During the six months ended June 30, 2016, the Company repurchased $23.7 million of its common stock under its existing $70.0 million stock repurchase program. At June 30, 2016, approximately $32.0 million remained available for repurchases, inclusive of related estimated income tax.

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Second Quarter 2016 Financial Results Conference Call

Management will host a conference call to discuss the second quarter 2016 financial results today, Wednesday, July 27, 2016 at 11:30 a.m. Eastern Time. The conference call details are as follows:
Date:
Wednesday, July 27, 2016
Time:
11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time
Dial-in:
1-877-407-0789 (Domestic)
1-201-689-8562 (International)
Conference ID:
13639821
Webcast:
http://public.viavid.com/index.php?id=120028

For those unable to participate during the live broadcast, a replay of the call will also be available from 2:30 p.m. Eastern Time on July 27, 2016 through 11:59 p.m. Eastern Time on August 10, 2016 by dialing 1-877-870-5176 (domestic) and 1-858-384-5517 (international) and referencing the replay pin number: 13639821.

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, North America, and Europe. The Company markets premium quality personal care products under the NHT Global brand. Additional information can be found on the Company’s website at www.naturalhealthtrendscorp.com.

Forward-Looking Statements

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this press release do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption “Risk Factors” in Natural Health Trends Corp.’s Annual Report on Form 10-K filed on March 4, 2016 with the Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

CONTACTS:

Company Contact:
Scott Davidson
Senior Vice President and Chief Financial Officer
Natural Health Trends Corp.
Tel: 310-541-0888
scott.davidson@nhtglobal.com
         
Investors:
ADDO Investor Relations
Tel: 310-829-5400
investor.relations@nhtglobal.com

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NATURAL HEALTH TRENDS CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands)
 
June 30, 2016
 
December 31, 2015
 
(Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
109,649

 
$
104,914

Accounts receivable
93

 
57

Inventories, net
12,302

 
10,455

Other current assets
2,893

 
2,286

Total current assets
124,937

 
117,712

Property and equipment, net
1,236

 
894

Goodwill
1,764

 
1,764

Restricted cash
3,097

 
3,166

Other assets
620

 
616

Total assets
$
131,654

 
$
124,152

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
3,525

 
$
2,862

Income taxes payable
862

 
379

Accrued commissions
18,651

 
19,634

Other accrued expenses
17,570

 
16,703

Deferred revenue
8,832

 
4,011

Deferred tax liability
60

 
60

Amounts held in eWallets
18,162

 
16,414

Other current liabilities
1,715

 
1,510

Total current liabilities
69,377

 
61,573

Long-term incentive
5,264

 
5,770

Total liabilities
74,641

 
67,343

Commitments and contingencies
 
 
 
Stockholders’ equity:
 
 
 
Preferred stock
—

 
—

Common stock
13

 
13

Additional paid-in capital
86,554

 
85,963

Retained earnings (accumulated deficit)
12,572

 
(9,647
)
Accumulated other comprehensive loss
(237
)
 
(101
)
Treasury stock, at cost
(41,889
)
 
(19,419
)
Total stockholders’ equity
57,013

 
56,809

Total liabilities and stockholders’ equity
$
131,654

 
$
124,152



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NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2016
 
2015
 
2016
 
2015
Net sales
$
80,391

 
$
69,716

 
$
154,737

 
$
110,425

Cost of sales
15,059

 
14,094

 
29,339

 
23,024

Gross profit
65,332

 
55,622

 
125,398

 
87,401

Operating expenses:
 
 
 
 
 
 
 
Commissions expense
37,883

 
35,010

 
72,969

 
53,407

Selling, general and administrative expenses
12,431

 
8,281

 
23,335

 
14,704

Depreciation and amortization
91

 
68

 
180

 
109

Total operating expenses
50,405

 
43,359

 
96,484

 
68,220

Income from operations
14,927

 
12,263

 
28,914

 
19,181

Other income (expense), net
16

 
132

 
(8
)
 
23

Income before income taxes
14,943

 
12,395

 
28,906

 
19,204

Income tax provision
2,742

 
122

 
5,425

 
193

Net income
$
12,201

 
$
12,273

 
$
23,481

 
$
19,011

Income per common share:
 
 
 
 
 
 
 
Basic
$
1.08

 
$
0.99

 
$
2.03

 
$
1.53

Diluted
$
1.07

 
$
0.98

 
$
2.03

 
$
1.52

Weighted-average number of common shares outstanding:
 
 
 
 
 
 
 
Basic
11,333

 
12,403

 
11,553

 
12,428

Diluted
11,359

 
12,461

 
11,579

 
12,513

Cash dividends declared per common share
$
0.06

 
$
0.03

 
$
0.11

 
$
0.05



5


NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
 
Six Months Ended June 30,
 
2016
 
2015
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net income
$
23,481

 
$
19,011

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
180

 
109

Stock-based compensation
84

 
35

Cumulative translation adjustment realized in net income
132

 
(82
)
Changes in assets and liabilities:
 
 
 
Accounts receivable
(34
)
 
(186
)
Inventories, net
(1,865
)
 
(1,524
)
Other current assets
(578
)
 
(672
)
Other assets
2

 
(232
)
Accounts payable
665

 
849

Income taxes payable
487

 
56

Accrued commissions
(989
)
 
5,471

Other accrued expenses
2,597

 
4,674

Deferred revenue
4,816

 
5,459

Amounts held in eWallets
1,759

 
6,468

Other current liabilities
203

 
186

Long-term incentive
(506
)
 
(141
)
Net cash provided by operating activities
30,434

 
39,481

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Purchases of property and equipment, net
(524
)
 
(333
)
Increase in restricted cash
—

 
(3,272
)
Net cash used in investing activities
(524
)
 
(3,605
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Proceeds from exercise of warrants
—

 
309

Repurchase of common stock
(23,704
)
 
(6,082
)
Dividends paid
(1,262
)
 
(621
)
Net cash used in financing activities
(24,966
)
 
(6,394
)
Effect of exchange rates on cash and cash equivalents
(209
)
 
124

Net increase in cash and cash equivalents
4,735

 
29,606

CASH AND CASH EQUIVALENTS, beginning of period
104,914

 
44,816

CASH AND CASH EQUIVALENTS, end of period
$
109,649

 
$
74,422

NON-CASH FINANCING ACTIVITY:
 
 
 
Issuance of treasury stock
$
1,741

 
$
666


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