Exhibit 99.1

Natural Health Trends Reports Third Quarter 2017 Financial Results

•
Positive sales momentum in emerging international markets
•
Maintained strong gross profit and operating income margins
•
Announced market entry into Malaysia
•
Increased quarterly dividend 9% to $0.12 per share
•
Declared special dividend of $0.15 per share

LOS ANGELES – November 1, 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 September 30, 2017.

Third Quarter 2017 Financial Highlights

•
Total revenue decreased 43% to $40.1 million, compared to $70.7 million in the third quarter of 2016.

◦
Revenue from the Company’s Hong Kong operations, which represented 87% of total revenue, decreased 47% to $35.0 million, compared to $65.9 million in the third quarter of 2016.

◦
Revenue outside of Hong Kong increased 6% to $5.1 million, compared to $4.8 million in the third quarter of 2016.

•
Operating income decreased 44% to $8.5 million, compared to $15.2 million in the third quarter of 2016. As a percent of total revenue, operating income was 21%, compared to 22% in the third quarter of 2016.

•
Net income was $7.3 million, or $0.65 per diluted share, compared to $12.6 million, or $1.12 per diluted share, in the third quarter of 2016.

•
The number of Active Members1 decreased 7% to 99,690 at September 30, 2017, compared to 107,290 at June 30, 2017, and decreased 19% compared to 122,900 at September 30, 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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Year-to-Date 2017 Financial Highlights

•
Total revenue decreased 33% to $151.5 million, compared to $225.4 million in the first nine months of 2016.

•
Operating income decreased 22% to $34.4 million, compared to $44.1 million in the first nine months of 2016. As a percent of total revenue, operating income was 23%, compared to 20% in the first nine months of 2016.

•
Net income was $28.1 million, or $2.49 per diluted share, compared to $36.0 million, or $3.14 per diluted share, in the first nine months of 2016.

Management Commentary

“While we made progress during the third quarter to revitalize sales growth, certain short-term factors exerted significant adverse effects and masked a quarter that was otherwise indicative of positive developments,” commented Chris Sharng, President of Natural Health Trends Corp. “The difficult market conditions we have been experiencing since the third quarter of 2016 were further compounded by the 20th anniversary of Hong Kong’s handover in July, as well as China’s Communist Party’s 19th National Congress in October, which tempered economic activities. These events impacted the operations of our logistics partners and detracted from our leaders’ ability to organize meetings, which hindered our progress in comparison to the prior quarter. As we view both occurrences as short-term issues, we are working to revitalize sales in Asia through enhancements to our incentive programs as well as adjustments to our bonus and reward programs in an effort to provide more resources to up-and-coming members.”

Mr. Sharng further commented, “Partially offsetting the year-over-year decline in net sales was strength in our emerging international markets including: Peru, Northern Europe, Southeast Asia and Japan. We also received positive responses from our members to our most recent product introductions during the quarter, notably OcuFocus, NaturalGlo and CogniMax. Further, after receiving approval for a direct selling license in Malaysia, on-site and follow-up orders at our Kuala Lumpur event in August were substantially greater than those of the Macau event in March. Despite challenging market conditions, we were able to maintain a healthy gross profit margin of nearly 80% and an operating income margin of over 21% due to strong consumer allegiance to our products and proactive expense management.”

Balance Sheet and Cash Flow

•
Net cash used in operating activities was $5.3 million, compared to $16.6 million in net cash provided by operating activities in the third quarter of 2016. For the first nine months of 2017, net cash provided by operating activities was $15.3 million, compared to $36.3 million in the first nine months of 2016.

•
On October 30, 2017, the Company’s Board of Directors declared a quarterly cash dividend of $0.12, which represents a 9% increase over the prior quarter dividend, as well as a special cash dividend of $0.15 per share on outstanding common stock. The dividends will be payable on November 24, 2017 to stockholders of record as of November 14, 2017.

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Third Quarter 2017 Financial Results Conference Call

Management will host a conference call to discuss the third quarter 2017 financial results today, Wednesday, November 1, 2017 at 11:30 a.m. Eastern Time. The conference call details are as follows:
Date:
Wednesday, November 1, 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:
13671086
Webcast:
http://public.viavid.com/index.php?id=126351

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 November 1, 2017 through 11:59 p.m. Eastern Time on November 15, 2017 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13671086.

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, the Americas, 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
         
Investor Contact:
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, 2017
 
December 31, 2016
 
(Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
126,953

 
$
125,921

Inventories
10,632

 
11,257

Other current assets
2,961

 
4,066

Total current assets
140,546

 
141,244

Property and equipment, net
1,225

 
1,388

Goodwill
1,764

 
1,764

Restricted cash
3,092

 
2,963

Other assets
772

 
692

Total assets
$
147,399

 
$
148,051

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
1,023

 
$
2,145

Income taxes payable
1,064

 
663

Accrued commissions
10,443

 
13,611

Other accrued expenses
8,545

 
14,989

Deferred revenue
3,568

 
4,948

Amounts held in eWallets
16,178

 
19,165

Other current liabilities
1,705

 
1,633

Total current liabilities
42,526

 
57,154

Deferred tax liability
285

 
268

Long-term incentive
6,730

 
8,190

Total liabilities
49,541

 
65,612

Commitments and contingencies
 
 
 
Stockholders’ equity:
 
 
 
Preferred stock
—

 
—

Common stock
13

 
13

Additional paid-in capital
86,674

 
86,574

Retained earnings
52,457

 
38,548

Accumulated other comprehensive loss
(716
)
 
(807
)
Treasury stock, at cost
(40,570
)
 
(41,889
)
Total stockholders’ equity
97,858

 
82,439

Total liabilities and stockholders’ equity
$
147,399

 
$
148,051



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NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
(Unaudited)
Net sales
$
40,132

 
$
70,679

 
$
151,471

 
$
225,416

Cost of sales
8,183

 
13,627

 
29,221

 
42,966

Gross profit
31,949

 
57,052

 
122,250

 
182,450

Operating expenses:
 
 
 
 
 
 
 
Commissions expense
15,802

 
30,578

 
63,842

 
103,547

Selling, general and administrative expenses
7,495

 
11,170

 
23,621

 
34,505

Depreciation and amortization
138

 
96

 
414

 
276

Total operating expenses
23,435

 
41,844

 
87,877

 
138,328

Income from operations
8,514

 
15,208

 
34,373

 
44,122

Other (expense) income, net
(12
)
 
48

 
224

 
40

Income before income taxes
8,502

 
15,256

 
34,597

 
44,162

Income tax provision
1,164

 
2,699

 
6,531

 
8,124

Net income
$
7,338

 
$
12,557

 
$
28,066

 
$
36,038

Net income per common share:
 
 
 
 
 
 
 
Basic
$
0.65

 
$
1.12

 
$
2.50

 
$
3.15

Diluted
$
0.65

 
$
1.12

 
$
2.49

 
$
3.14

Weighted-average number of common shares outstanding:
 
 
 
 
 
 
 
Basic
11,258

 
11,209

 
11,244

 
11,437

Diluted
11,276

 
11,232

 
11,269

 
11,463

Cash dividends declared per common share
$
0.36

 
$
0.07

 
$
1.25

 
$
0.18



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NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
Nine Months Ended September 30,
 
2017
 
2016
 
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net income
$
28,066

 
$
36,038

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
414

 
276

Stock-based compensation
26

 
94

Cumulative translation adjustment realized in net income
(258
)
 
132

Changes in assets and liabilities:
 
 
 
Inventories
590

 
(4,382
)
Other current assets
1,164

 
(1,244
)
Other assets
(61
)
 
(91
)
Accounts payable
(1,121
)
 
252

Income taxes payable
392

 
278

Accrued commissions
(3,143
)
 
(1,045
)
Other accrued expenses
(5,064
)
 
3,459

Deferred revenue
(1,364
)
 
222

Amounts held in eWallets
(2,856
)
 
3,098

Other current liabilities
51

 
26

Long-term incentive
(1,498
)
 
(825
)
Net cash provided by operating activities
15,338

 
36,288

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Purchases of property and equipment
(238
)
 
(679
)
Net cash used in investing activities
(238
)
 
(679
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Repurchase of common stock
—

 
(23,704
)
Dividends paid
(14,157
)
 
(2,049
)
Net cash used in financing activities
(14,157
)
 
(25,753
)
Effect of exchange rates on cash and cash equivalents
89

 
(270
)
Net increase in cash and cash equivalents
1,032

 
9,586

CASH AND CASH EQUIVALENTS, beginning of period
125,921

 
104,914

CASH AND CASH EQUIVALENTS, end of period
$
126,953

 
$
114,500

SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:
 
 
 
Cash paid for income taxes, net of refunds
$
5,690

 
$
7,994

Issuance of treasury stock for employee awards, net
1,393

 
1,741


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