Exhibit 99.1

Natural Health Trends Reports First Quarter 2017 Financial Results

•
Expanded operating income margin to 21.7%
•
Increased quarterly dividend 11% to $0.10 per share
•
Declared special dividend of $0.35 per share

LOS ANGELES – April 27, 2017 – 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 March 31, 2017.

First Quarter 2017 Financial Highlights

•
Total revenue decreased 19% to $59.9 million, compared to $74.3 million in the first quarter of 2016.

◦
Revenue from the Company’s Hong Kong operations, which represented 91% of total revenue, decreased 20% to $54.6 million, compared to $68.2 million in the first quarter of 2016.

◦
Outside of Hong Kong, revenue in China decreased 47% year-over-year and was offset by increases in North America and Europe of 37% and 297% year-over-year, respectively.

•
Operating income decreased 7% to $13.0 million, compared to $14.0 million in the first quarter of 2016. As a percent of total revenue, operating income was 21.7%, compared to 18.8% in the first quarter of 2016.

•
Net income was $10.4 million, or $0.93 per diluted share, compared to $11.3 million, or $0.95 per diluted share, in the first quarter of 2016.

•
The number of Active Members1 decreased 4% to 113,710 at March 31, 2017, compared to 118,960 at December 31, 2016, and decreased 5% compared to 119,800 at March 31, 2016.

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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Management Commentary

“Our first quarter 2017 revenue declined year-over-year as we are still working to overcome the slowdown we have been experiencing since the third quarter of 2016,” commented Chris Sharng, President of Natural Health Trends Corp. “We also moved our first half major event from early January in prior years, to March this year, making the year-over-year comparison challenging. In addition, the stronger dollar made our products more expensive for our Chinese consumers. Partially offsetting the factors affecting our top-line was heightened productivity in March, following our successful Ambassador Academy in Macau, which attracted over 6,000 members and guests. We were very pleased with the record turnout after moving the event to after the Chinese New Year, which we believe will improve the member experience longer-term.”

Mr. Sharng further commented, “Our strong balance sheet and working capital management afford us the ability to focus on our growth initiatives while simultaneously returning capital to our valued stockholders. I am pleased to announce our Board of Directors declared a special dividend in the amount of $0.35 per share as well as an 11% increase in our quarterly dividend to $0.10 per share, compared to the prior quarter. While it will take time for the results of our strategic initiatives to bear fruit, we are confident in our ability to attract, motivate and retain a strong member base as well as to expand our product offering into new geographies and categories.”

Balance Sheet and Cash Flow

•
Net cash provided by operating activities in the first quarter of 2017 was $13.8 million, consistent with the first quarter of 2016.

•
On April 24, 2017, the Company's Board of Directors declared a quarterly dividend of $0.10 per share on outstanding common stock, which represents an 11% 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 May 19, 2017 to stockholders of record as of May 9, 2017.

First Quarter 2017 Financial Results Conference Call

Management will host a conference call to discuss the first quarter 2017 financial results today, Thursday, April 27, 2017 at 11:30 a.m. Eastern Time. The conference call details are as follows:
Date:
Thursday, April 27, 2017
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:
13657892
Webcast:
http://public.viavid.com/index.php?id=123414

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 April 27, 2017 through 11:59 p.m. Eastern Time on May 11, 2017 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13657892.


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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 10, 2017 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)
 
March 31, 2017
 
December 31, 2016
 
(Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
134,672

 
$
125,921

Inventories
9,170

 
11,257

Other current assets
2,687

 
4,066

Total current assets
146,529

 
141,244

Property and equipment, net
1,330

 
1,388

Goodwill
1,764

 
1,764

Restricted cash
2,992

 
2,963

Other assets
776

 
692

Total assets
$
153,391

 
$
148,051

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
2,085

 
$
2,145

Income taxes payable
2,464

 
663

Accrued commissions
13,196

 
13,611

Other accrued expenses
12,048

 
14,989

Deferred revenue
4,301

 
4,948

Amounts held in eWallets
20,261

 
19,165

Other current liabilities
1,954

 
1,633

Total current liabilities
56,309

 
57,154

Deferred tax liability
266

 
268

Long-term incentive
7,720

 
8,190

Total liabilities
64,295

 
65,612

Commitments and contingencies
 
 
 
Stockholders’ equity:
 
 
 
Preferred stock
—

 
—

Common stock
13

 
13

Additional paid-in capital
86,657

 
86,574

Retained earnings
43,992

 
38,548

Accumulated other comprehensive loss
(996
)
 
(807
)
Treasury stock, at cost
(40,570
)
 
(41,889
)
Total stockholders’ equity
89,096

 
82,439

Total liabilities and stockholders’ equity
$
153,391

 
$
148,051



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NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
 
Three Months Ended March 31,
 
2017
 
2016
 
(Unaudited)
Net sales
$
59,874

 
$
74,346

Cost of sales
11,245

 
14,280

Gross profit
48,629

 
60,066

Operating expenses:
 
 
 
Commissions expense
25,965

 
35,086

Selling, general and administrative expenses
9,536

 
10,904

Depreciation and amortization
136

 
89

Total operating expenses
35,637

 
46,079

Income from operations
12,992

 
13,987

Other income (expense), net
156

 
(24
)
Income before income taxes
13,148

 
13,963

Income tax provision
2,723

 
2,683

Net income
$
10,425

 
$
11,280

Net income per common share:
 
 
 
Basic
$
0.93

 
$
0.96

Diluted
$
0.93

 
$
0.95

Weighted-average number of common shares outstanding:
 
 
 
Basic
11,229

 
11,773

Diluted
11,251

 
11,817

Cash dividends declared per common share
$
0.44

 
$
0.05



5


NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
Three Months Ended March 31,
 
2017
 
2016
 
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net income
$
10,425

 
$
11,280

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
136

 
89

Stock-based compensation
9

 
74

Cumulative translation adjustment realized in net income
(258
)
 
—

Changes in assets and liabilities:
 
 
 
Inventories
2,091

 
189

Other current assets
1,419

 
(45
)
Other assets
(62
)
 
5

Accounts payable
(61
)
 
(840
)
Income taxes payable
1,798

 
2,620

Accrued commissions
(428
)
 
(2,923
)
Other accrued expenses
(1,555
)
 
925

Deferred revenue
(647
)
 
2,445

Amounts held in eWallets
1,138

 
280

Other current liabilities
314

 
(157
)
Long-term incentive
(508
)
 
(120
)
Net cash provided by operating activities
13,811

 
13,822

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Purchases of property and equipment
(72
)
 
(240
)
Net cash used in investing activities
(72
)
 
(240
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Repurchase of common stock
—

 
(18,319
)
Dividends paid
(4,981
)
 
(576
)
Net cash used in financing activities
(4,981
)
 
(18,895
)
Effect of exchange rates on cash and cash equivalents
(7
)
 
30

Net increase (decrease) in cash and cash equivalents
8,751

 
(5,283
)
CASH AND CASH EQUIVALENTS, beginning of period
125,921

 
104,914

CASH AND CASH EQUIVALENTS, end of period
$
134,672

 
$
99,631

SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:
 
 
 
Issuance of treasury stock for employee awards, net
1,393

 
—


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