Exhibit 99.1

Natural Health Trends Reports Third Quarter 2016 Financial Results and
Declares Special Cash Dividend of $0.35 per Share

•
Record operating income increased 3% year-over-year to $15.2 million
•
Active Members1 increased 30% year-over-year to 122,900
•
Increased quarterly dividend 14% to $0.08 per share
•
Declared special dividend of $0.35 per share

LOS ANGELES – October 25, 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 September 30, 2016.

Third Quarter 2016 Financial Highlights

•
Total revenue decreased 13% to $70.7 million, compared to $80.8 million in the third quarter of 2015.

◦
Revenue from the Company’s Hong Kong operations, which represented 93% of total revenue, decreased 13% to $65.9 million, compared to $75.9 million in the third quarter of 2015.

◦
Revenue outside of Hong Kong decreased 2% to $4.8 million, compared to $4.9 million in the third quarter of 2015.

•
Operating income increased 3% to $15.2 million, compared to $14.8 million in the third quarter of 2015.

•
An additional income tax provision of $2.6 million was recognized in the third quarter of 2016 for the expected partial repatriation of overseas profits, resulting in an overall effective tax rate of 18%.

•
Net income was $12.6 million, or $1.12 per diluted share, compared to $14.5 million, or $1.18 per diluted share, in the third quarter of 2015.

•
The number of Active Members1 decreased 3% to 122,900 at September 30, 2016, compared to 126,440 at June 30, 2016, and increased 30% compared to 94,700 at September 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.


1


Year-to-Date 2016 Financial Highlights

•
Total revenue increased 18% to $225.4 million, compared to $191.2 million in the first nine months of 2015.

•
Operating income increased 30% to $44.1 million, compared to $34.0 million in the first nine months of 2015.

•
An additional income tax provision of $7.3 million was recognized in the first nine months of 2016 for the expected partial repatriation of overseas profits, resulting in an overall effective tax rate of 18%.

•
Net income was $36.0 million, or $3.14 per diluted share, compared to $33.5 million, or $2.70 per diluted share, in the first nine months of 2015.

Management Commentary

“We had a challenging third quarter characterized by various adverse factors contributing to a 13% year-over-year decline in our total revenue,” commented Chris Sharng, President of Natural Health Trends Corp. “In addition to a tough year-over-year comparison in the third quarter of 2015 due to a highly successful promotion we ran last year during an otherwise seasonally slower quarter, we encountered currency depreciation of the Chinese yuan by 6% against the Hong Kong dollar. This effectively increases the price of our products for our members residing in mainland China. That said, we believe the G20 Summit, which was hosted in Hangzhou, one of our top performing markets, was the significant driver behind the quarter’s decline in revenue. To prepare for the high profile event, the Chinese government implemented special measures such as temporarily relocating city residents, emptying entire districts, blocking urban traffic and shutting down businesses from July through early September. As a result, our local members’ abilities to organize any activity in the Hangzhou metropolitan area were hampered.”

Mr. Sharng further commented, “Despite these factors, we were pleased to have increased our revenues for the first nine months of 2016 by 18% over last year as well as achieve record operating profit for the quarter of $15.2 million, up 3% over last year. To reinvigorate growth in our affected markets, we have developed a strategic plan which includes leader training and motivation, expansion by both geography and product, and technological advancements to support enhanced member communication and productivity. We are working hard to build sustainable, long-term growth and we will strive to get there through execution on our strategic initiatives while simultaneously returning excess cash to our valued stockholders.”


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Balance Sheet and Cash Flow

•
Net cash provided by operating activities in the third quarter of 2016 was $5.9 million, compared to $25.7 million in the third quarter of 2015. For the first nine months of 2016, net cash provided by operating activities was $36.3 million, compared to $65.2 million in the first nine months of 2015.

•
On October 23, 2016, the Company’s Board of Directors declared a quarterly cash dividend of $0.08 per share on outstanding common stock, which represents a 14% increase over the prior quarter dividend, and a special cash dividend of $0.35 per share on outstanding common stock. The dividends will be payable on November 25, 2016 to stockholders of record as of November 15, 2016.

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

Third Quarter 2016 Financial Results Conference Call

Management will host a conference call to discuss the third quarter 2016 financial results today, Tuesday, October 25, 2016 at 11:30 a.m. Eastern Time. The conference call details are as follows:
Date:
Tuesday, October 25, 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:
13646039
Webcast:
http://public.viavid.com/index.php?id=121213

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 October 25, 2016 through 11:59 p.m. Eastern Time on November 8, 2016 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13646039.

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.


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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)
 
September 30, 2016
 
December 31, 2015
 
(Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
114,500

 
$
104,914

Accounts receivable
98

 
57

Inventories, net
14,842

 
10,455

Other current assets
3,540

 
2,286

Total current assets
132,980

 
117,712

Property and equipment, net
1,297

 
894

Goodwill
1,764

 
1,764

Restricted cash
3,090

 
3,166

Other assets
723

 
616

Total assets
$
139,854

 
$
124,152

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
3,114

 
$
2,862

Income taxes payable
655

 
379

Accrued commissions
18,620

 
19,634

Other accrued expenses
18,443

 
16,703

Deferred revenue
4,236

 
4,011

Deferred tax liability
60

 
60

Amounts held in eWallets
19,510

 
16,414

Other current liabilities
1,543

 
1,510

Total current liabilities
66,181

 
61,573

Long-term incentive
4,945

 
5,770

Total liabilities
71,126

 
67,343

Commitments and contingencies
 
 
 
Stockholders’ equity:
 
 
 
Preferred stock
—

 
—

Common stock
13

 
13

Additional paid-in capital
86,564

 
85,963

Retained earnings (accumulated deficit)
24,342

 
(9,647
)
Accumulated other comprehensive loss
(302
)
 
(101
)
Treasury stock, at cost
(41,889
)
 
(19,419
)
Total stockholders’ equity
68,728

 
56,809

Total liabilities and stockholders’ equity
$
139,854

 
$
124,152



5


NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(In thousands, except per share data)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2016
 
2015
 
2016
 
2015
Net sales
$
70,679

 
$
80,779

 
$
225,416

 
$
191,204

Cost of sales
13,627

 
16,001

 
42,966

 
39,025

Gross profit
57,052

 
64,778

 
182,450

 
152,179

Operating expenses:
 
 
 
 
 
 
 
Commissions expense
30,578

 
40,036

 
103,547

 
93,443

Selling, general and administrative expenses
11,170

 
9,867

 
34,505

 
24,571

Depreciation and amortization
96

 
72

 
276

 
181

Total operating expenses
41,844

 
49,975

 
138,328

 
118,195

Income from operations
15,208

 
14,803

 
44,122

 
33,984

Other income (expense), net
48

 
(135
)
 
40

 
(112
)
Income before income taxes
15,256

 
14,668

 
44,162

 
33,872

Income tax provision
2,699

 
137

 
8,124

 
330

Net income
$
12,557

 
$
14,531

 
$
36,038

 
$
33,542

Income per common share:
 
 
 
 
 
 
 
Basic
$
1.12

 
$
1.19

 
$
3.15

 
$
2.71

Diluted
$
1.12

 
$
1.18

 
$
3.14

 
$
2.70

Weighted-average number of common shares outstanding:
 
 
 
 
 
 
 
Basic
11,209

 
12,239

 
11,437

 
12,364

Diluted
11,232

 
12,284

 
11,463

 
12,439

Cash dividends declared per common share
$
0.07

 
$
0.04

 
$
0.18

 
$
0.09



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NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
 
Nine Months Ended September 30,
 
2016
 
2015
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net income
$
36,038

 
$
33,542

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
276

 
181

Stock-based compensation
94

 
56

Cumulative translation adjustment realized in net income
132

 
(82
)
Changes in assets and liabilities:
 
 
 
Accounts receivable
(36
)
 
(217
)
Inventories, net
(4,382
)
 
(2,904
)
Other current assets
(1,208
)
 
(736
)
Other assets
(91
)
 
(264
)
Accounts payable
252

 
2,140

Income taxes payable
278

 
190

Accrued commissions
(1,045
)
 
11,832

Other accrued expenses
3,459

 
8,397

Deferred revenue
222

 
1,844

Amounts held in eWallets
3,098

 
11,354

Other current liabilities
26

 
93

Long-term incentive
(825
)
 
(229
)
Net cash provided by operating activities
36,288

 
65,197

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Purchases of property and equipment, net
(679
)
 
(645
)
Increase in restricted cash
—

 
(3,028
)
Net cash used in investing activities
(679
)
 
(3,673
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Proceeds from exercise of warrants
—

 
309

Repurchase of common stock
(23,704
)
 
(11,079
)
Dividends paid
(2,049
)
 
(1,111
)
Net cash used in financing activities
(25,753
)
 
(11,881
)
Effect of exchange rates on cash and cash equivalents
(270
)
 
106

Net increase in cash and cash equivalents
9,586

 
49,749

CASH AND CASH EQUIVALENTS, beginning of period
104,914

 
44,816

CASH AND CASH EQUIVALENTS, end of period
$
114,500

 
$
94,565

SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:
 
 
 
Cash paid for income taxes, net of refunds
$
7,994

 
$
152

Issuance of treasury stock
$
1,741

 
$
666


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