Exhibit 99.1

Natural Health Trends Reports Third Quarter 2018 Financial Results

•
Total revenue increased 17% year-over-year to $47.0 million
•
Year-to-date cash flow from operations increased 65% year-over-year to $25.3 million
•
Declared special dividend of $0.18 per share
•
Increased quarterly dividend 7% to $0.16 per share

LOS ANGELES – October 30, 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 third quarter ended September 30, 2018.

Third Quarter 2018 Financial Highlights

•
Total revenue of $47.0 million increased 17% compared to $40.1 million in the third quarter of 2017, and decreased 8% compared to $50.9 million in the second quarter of 2018.
◦
Revenue from the Company’s Hong Kong operations, which represented 88% of total revenue, was $41.4 million, an increase of 18% compared to $35.0 million in the third quarter of 2017.
◦
Revenue outside of Hong Kong of $5.6 million increased 10% compared to $5.1 million in the third quarter of 2017.
•
Gross profit was $37.1 million compared to $31.9 million in the third quarter of 2017, and $40.5 million in the second quarter of 2018. As a percent of total revenue, gross profit was 79% compared to 80% in the third quarter of 2017 and 80% in the second quarter of 2018.
•
Operating income was $7.8 million compared to $8.5 million in the third quarter of 2017, and $10.1 million in the second quarter of 2018. As a percent of total revenue, operating income was 17% compared to 21% in the third quarter of 2017 and 20% in the second quarter of 2018.
•
Net income was $7.6 million, or $0.67 per diluted share, compared to net income of $7.3 million, or $0.65 per diluted share, in the third quarter of 2017, and $9.0 million, or $0.80 per diluted share, in the second quarter of 2018.
•
The number of Active Members1 increased 4% to 97,160 at September 30, 2018, compared to 93,000 at June 30, 2018, and decreased 3% compared to 99,690 at September 30, 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.

Year-to-Date 2018 Financial Highlights

•
Total revenue of $150.3 million decreased 1% compared to $151.5 million in the first nine months of 2017.
•
Gross profit was $119.8 million compared to $122.3 million in the first nine months of 2017. As a percent of total revenue, gross profit was 80% compared to 81% in the first nine months of 2018.

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•
Operating income was $28.0 million compared to $34.4 million in the first nine months of 2017. As a percent of total revenue, operating income was 19% compared to 23% in the first nine months of 2017.
•
Net income was $25.5 million, or $2.25 per diluted share, compared to net income of $28.1 million, or $2.49 per diluted share, in the first nine months of 2017.

Management Commentary

“Despite a generally difficult trading environment, our performance in the third quarter was driven by the momentum we created since the beginning of the year,” commented Chris Sharng, President of Natural Health Trends. “So far in 2018, both a rapidly depreciating Chinese yuan, down 10% since February, and the seasonality associated with the summer months, contributed to an 8% decline in our revenue from the second quarter to the third quarter this year. Without the adverse effect of the yuan devaluation, our third quarter revenue would have been flat with the second quarter. While we have no control over these conditions, I believe we have been doing a good job navigating in an increasingly difficult and unpredictable setting.”

Balance Sheet and Cash Flow

•
Net cash provided by operating activities was $8.8 million, compared to $5.3 million in net cash used in operating activities in the third quarter of 2017. For the first nine months of 2018, net cash provided by operating activities was $25.3 million, compared to $15.3 million in the first nine months of 2017.
•
On October 21, 2018, the Company’s Board of Directors declared a quarterly cash dividend of $0.16, which represents a 7% increase over the prior quarter dividend, as well as a special cash dividend of $0.18 per share on outstanding common stock. The dividends will be payable on November 23, 2018 to stockholders of record as of November 13, 2018.

Third Quarter 2018 Financial Results Conference Call

Management will host a conference call to discuss the third quarter 2018 financial results today, Tuesday, October 30, 2018 at 11:30 a.m. Eastern Time. The conference call details are as follows:
Date:
Tuesday, October 30, 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:
13683905
Webcast:
http://public.viavid.com/index.php?id=131653
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 30, 2018 through 11:59 p.m. Eastern Time on November 13, 2018 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13683905.


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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, 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 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)
 
September 30, 2018
 
December 31, 2017
 
(Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
132,206

 
$
135,311

Inventories
11,119

 
8,398

Other current assets
4,918

 
7,534

Total current assets
148,243

 
151,243

Property and equipment, net
988

 
1,149

Goodwill
1,764

 
1,764

Restricted cash
3,003

 
3,167

Deferred tax asset
1,435

 
1,435

Other assets
859

 
796

Total assets
$
156,292

 
$
159,554

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
2,715

 
$
1,751

Income taxes payable
168

 
309

Accrued commissions
13,125

 
11,170

Other accrued expenses
7,341

 
7,605

Deferred revenue
4,462

 
4,455

Amounts held in eWallets
14,196

 
15,152

Other current liabilities
1,906

 
1,479

Total current liabilities
43,913

 
41,921

Income taxes payable
16,982

 
19,052

Deferred tax liability
75

 
56

Long-term incentive
7,104

 
7,904

Total liabilities
68,074

 
68,933

Commitments and contingencies
 
 
 
Stockholders’ equity:
 
 
 
Preferred stock
—

 
—

Common stock
13

 
13

Additional paid-in capital
86,415

 
86,683

Retained earnings
42,740

 
44,908

Accumulated other comprehensive loss
(1,202
)
 
(413
)
Treasury stock, at cost
(39,748
)
 
(40,570
)
Total stockholders’ equity
88,218

 
90,621

Total liabilities and stockholders’ equity
$
156,292

 
$
159,554



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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,
 
2018
 
2017
 
2018
 
2017
 
(Unaudited)
Net sales
$
47,043

 
$
40,132

 
$
150,320

 
$
151,471

Cost of sales
9,926

 
8,183

 
30,546

 
29,221

Gross profit
37,117

 
31,949

 
119,774

 
122,250

Operating expenses:
 
 
 
 
 
 
 
Commissions expense
22,001

 
15,802

 
67,291

 
63,842

Selling, general and administrative expenses
7,269

 
7,633

 
24,484

 
24,035

Total operating expenses
29,270

 
23,435

 
91,775

 
87,877

Income from operations
7,847

 
8,514

 
27,999

 
34,373

Other income (expense), net
249

 
(12
)
 
465

 
224

Income before income taxes
8,096

 
8,502

 
28,464

 
34,597

Income tax provision
467

 
1,164

 
2,988

 
6,531

Net income
$
7,629

 
$
7,338

 
$
25,476

 
$
28,066

Net income per common share:
 
 
 
 
 
 
 
Basic
$
0.67

 
$
0.65

 
$
2.25

 
$
2.50

Diluted
$
0.67

 
$
0.65

 
$
2.25

 
$
2.49

Weighted-average number of common shares outstanding:
 
 
 
 
 
 
 
Basic
11,309

 
11,258

 
11,298

 
11,244

Diluted
11,322

 
11,276

 
11,307

 
11,269

Cash dividends declared per common share
$
0.40

 
$
0.36

 
$
2.43

 
$
1.25



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NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
 
Nine Months Ended September 30,
 
2018
 
2017
 
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net income
$
25,476

 
$
28,066

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
332

 
414

Stock-based compensation
—

 
26

Cumulative translation adjustment realized in net income
—

 
(258
)
Changes in assets and liabilities:
 
 
 
Inventories
(2,828
)
 
590

Other current assets
2,548

 
1,164

Other assets
(83
)
 
(61
)
Accounts payable
967

 
(1,121
)
Income taxes payable
(2,201
)
 
392

Accrued commissions
2,003

 
(3,143
)
Other accrued expenses
314

 
(5,064
)
Deferred revenue
26

 
(1,364
)
Amounts held in eWallets
(930
)
 
(2,856
)
Other current liabilities
438

 
51

Long-term incentive
(800
)
 
(1,498
)
Net cash provided by operating activities
25,262

 
15,338

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Purchases of property and equipment
(176
)
 
(238
)
Net cash used in investing activities
(176
)
 
(238
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Dividends paid
(27,644
)
 
(14,157
)
Net cash used in financing activities
(27,644
)
 
(14,157
)
Effect of exchange rates on cash, cash equivalents and restricted cash
(711
)
 
218

Net (decrease) increase in cash, cash equivalents and restricted cash
(3,269
)
 
1,161

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

 
128,884

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period
$
135,209

 
$
130,045

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

 
1,393



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