Exhibit 99.1

Natural Health Trends Reports First Quarter 2018 Financial Results

•
Second sequential quarterly increase in net sales
•
Declared special dividend of $20.0 million, or $1.76 per share
•
Increased quarterly dividend 8% to $0.14 per share

LOS ANGELES – May 2, 2018 – 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 first quarter ended March 31, 2018.

First Quarter 2018 Financial Highlights

•
Total revenue of $52.4 million decreased 13% compared to $59.9 million in the first quarter of 2017 and increased 14% compared to $46.1 million in the fourth quarter of 2017.
◦
Revenue from the Company’s Hong Kong operations, which represented 91% of total revenue, was $47.6 million, a decrease of 13% compared to $54.6 million in the first quarter of 2017, and an increase of 20% compared to $39.6 million in the fourth quarter of 2017.
◦
Revenue outside of Hong Kong of $4.7 million decreased 11% compared to $5.3 million in the first quarter of 2017 and decreased 28% compared to $6.5 million in the fourth quarter of 2017.
•
Operating income was $10.0 million compared to $13.0 million in the first quarter of 2017 and $8.7 million in the fourth quarter of 2017.
•
Net income was $8.8 million, or $0.78 per diluted share, compared to net income of $10.4 million, or $0.93 per diluted share, in the first quarter of 2017.
•
The number of Active Members1 decreased 1% to 95,040 at March 31, 2018, compared to 95,670 at December 31, 2017, and decreased 16% compared to 113,710 at March 31, 2017.
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 momentum in the back half of 2017 carried into 2018 with our total revenue increasing 14% over the prior quarter, marking our second consecutive quarter of sales growth,” commented Chris Sharng, President of Natural Health Trends Corp. “Our improved top-line performance is a direct result of the enhancements made to our commission plan to better incentivize up-and-coming members and ease rank advancement, along with our effective marketing programs. We also held our international Ambassador Academy in Hong Kong, which attracted over 5,500 people. The orders generated by promotions directly related to the event exceeded those of the last three years.”

Mr. Sharng further commented, “With our revenue for the quarter improved, 2018 is off to a good start. Our leaders remain energized and enthusiastic and we look forward to more productive incentive trips and targeted training programs this year to drive further progress and growth.”

Balance Sheet and Cash Flow

•
Net cash provided by operating activities was $11.1 million, compared to $13.8 million in the first quarter of 2017.
•
On April 17, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.14, which represents an 8% increase over the prior quarter dividend, as well as a special cash dividend of $1.76 per share on outstanding common stock. The dividends will be payable on May 25, 2018 to stockholders of record as of May 15, 2018.

First Quarter 2018 Financial Results Conference Call

Management will host a conference call to discuss the first quarter 2018 financial results today, Wednesday, May 2, 2018 at 11:30 a.m. Eastern Time. The conference call details are as follows:
Date:
Wednesday, May 2, 2018
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:
13678508
Webcast:
http://public.viavid.com/index.php?id=129162
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 May 2, 2018 through 11:59 p.m. Eastern Time on May 16, 2018 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13678508.

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.


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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 27, 2018 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)
 
March 31, 2018
 
December 31, 2017
 
(Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
145,095

 
$
135,311

Inventories
7,944

 
8,398

Other current assets
6,021

 
7,534

Total current assets
159,060

 
151,243

Property and equipment, net
1,040

 
1,149

Goodwill
1,764

 
1,764

Restricted cash
3,279

 
3,167

Deferred tax asset
1,435

 
1,435

Other assets
809

 
796

Total assets
$
167,387

 
$
159,554

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
2,669

 
$
1,751

Income taxes payable
42

 
309

Accrued commissions
10,027

 
11,170

Other accrued expenses
8,549

 
7,605

Deferred revenue
4,112

 
4,455

Amounts held in eWallets
14,623

 
15,152

Other current liabilities
1,756

 
1,479

Total current liabilities
41,778

 
41,921

Income taxes payable
19,052

 
19,052

Deferred tax liability
55

 
56

Long-term incentive
7,596

 
7,904

Total liabilities
68,481

 
68,933

Commitments and contingencies
 
 
 
Stockholders’ equity:
 
 
 
Preferred stock
—

 
—

Common stock
13

 
13

Additional paid-in capital
86,415

 
86,683

Retained earnings
52,253

 
44,908

Accumulated other comprehensive loss
(27
)
 
(413
)
Treasury stock, at cost
(39,748
)
 
(40,570
)
Total stockholders’ equity
98,906

 
90,621

Total liabilities and stockholders’ equity
$
167,387

 
$
159,554



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NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
 
Three Months Ended March 31,
 
2018
 
2017
 
(Unaudited)
Net sales
$
52,367

 
$
59,874

Cost of sales
10,221

 
11,245

Gross profit
42,146

 
48,629

Operating expenses:
 
 
 
Commissions expense
22,980

 
25,965

Selling, general and administrative expenses
9,122

 
9,672

Total operating expenses
32,102

 
35,637

Income from operations
10,044

 
12,992

Other income, net
163

 
156

Income before income taxes
10,207

 
13,148

Income tax provision
1,383

 
2,723

Net income
$
8,824

 
$
10,425

Net income per common share:
 
 
 
Basic
$
0.78

 
$
0.93

Diluted
$
0.78

 
$
0.93

Weighted-average number of common shares outstanding:
 
 
 
Basic
11,286

 
11,229

Diluted
11,288

 
11,251

Cash dividends declared per common share
$
0.13

 
$
0.44



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NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
Three Months Ended March 31,
 
2018
 
2017
 
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net income
$
8,824

 
$
10,425

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
131

 
136

Stock-based compensation
—

 
9

Cumulative translation adjustment realized in net income
—

 
(258
)
Changes in assets and liabilities:
 
 
 
Inventories
473

 
2,091

Other current assets
1,548

 
1,419

Other assets
(5
)
 
(62
)
Accounts payable
920

 
(61
)
Income taxes payable
(275
)
 
1,798

Accrued commissions
(1,119
)
 
(428
)
Other accrued expenses
1,483

 
(1,555
)
Deferred revenue
(333
)
 
(647
)
Amounts held in eWallets
(466
)
 
1,138

Other current liabilities
272

 
314

Long-term incentive
(308
)
 
(508
)
Net cash provided by operating activities
11,145

 
13,811

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Purchases of property and equipment
(17
)
 
(72
)
Net cash used in investing activities
(17
)
 
(72
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Dividends paid
(1,479
)
 
(4,981
)
Net cash used in financing activities
(1,479
)
 
(4,981
)
Effect of exchange rates on cash, cash equivalents and restricted cash
247

 
22

Net increase in cash, cash equivalents and restricted cash
9,896

 
8,780

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period
138,478

 
128,884

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period
$
148,374

 
$
137,664

SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:
 
 
 
Issuance of treasury stock for employee awards, net
554

 
1,393



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