Exhibit 99.1

Natural Health Trends Reports Third Quarter 2019 Financial Results

Repurchased $2.9 million of common stock
Declared a special dividend of $0.40 per share

HONG KONG – November 1, 2019 – 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, 2019.

Third Quarter 2019 Financial Highlights

Revenue of $17.0 million decreased 64% compared to $47.0 million in the third quarter of 2018.
Gross profit was $12.7 million compared to $37.1 million in the third quarter of 2018. As a percent of total revenue, gross profit was 74% compared to 79% in the third quarter of 2018.
Operating loss was $1.1 million compared to operating income of $7.8 million in the third quarter of 2018.
Net loss was $1.2 million, or $0.12 per diluted share, compared to net income of $7.6 million, or $0.67 per diluted share, in the third quarter of 2018.
The number of Active Members1 decreased 13% to 68,150 at September 30, 2019, compared to 78,280 at June 30, 2019, and decreased 30% compared to 97,160 at September 30, 2018.
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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 2019 Financial Highlights

Revenue of $59.8 million decreased 60% compared to $150.3 million in the first nine months of 2018.
Gross profit was $44.8 million compared to $119.8 million in the first nine months of 2018. As a percent of total revenue, gross profit was 75% compared to 80% in the first nine months of 2018.
Operating loss was $3.8 million compared to operating income of $28.0 million in the first nine months of 2018.
Net loss was $2.8 million, or $0.25 per diluted share, compared to net income of $25.5 million, or $2.25 per diluted share, in the first nine months of 2018.


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Management Commentary

“The business environment in China continued to present broad challenges during the third quarter,” commented Chris Sharng, President of Natural Health Trends Corp. “In addition, protests in Hong Kong posed new complications. As a result, we suspended company-sponsored meetings in Hong Kong as current conditions are not conducive to hosting visitors.”

Mr. Sharng further commented, “Beyond the elements that are not within our control, we remain pleased with our leaders’ abilities to adapt our business strategy and to continue performing under these circumstances. Subsequent to quarter end, we held a successful event in Macau which was traditionally held during the third quarter. Our fourth quarter order volume trends are already improving following this major event which is a promising development. Lastly, in light of the current business environment, we are implementing cost reduction measures to focus resources on our members and markets. We expect to realize an annualized $5.7 million in savings by the first quarter of 2020.”

Balance Sheet and Cash Flow

Net cash used in operating activities was $3.7 million compared to net cash provided by operating activities of $8.8 million in the third quarter of 2018. For the first nine months of 2019, net cash used in operating activities was $18.7 million, compared to net cash provided by operating activities of $25.3 million in the first nine months of 2018.
Total cash and cash equivalents were $101.1 million as of September 30, 2019, down from $132.7 million as of December 31, 2018.
On October 29, 2019, the Company’s Board of Directors declared a special cash dividend of $0.40 per share on outstanding common stock. The dividend will be payable on November 29, 2019 to stockholders of record as of November 19, 2019.
During the three months ended September 30, 2019, the Company purchased a total of 383,127 shares of its common stock for an aggregate purchase price of $2.9 million, plus transaction costs. As of September 30, 2019, $22.4 million of the stock repurchase program remained available for future purchases, inclusive of related estimated income tax.

Third Quarter 2019 Financial Results Conference Call

Management will host a conference call to discuss the third quarter 2019 financial results today, Friday November 1, 2019 at 11:30 a.m. Eastern Time. The conference call details are as follows:
Date:
Friday, November 1, 2019
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:
13695076
Webcast:
http://public.viavid.com/index.php?id=136315
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, 2019 through 11:59 p.m. Eastern Time on November 15, 2019 by

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dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13695076.

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 April 26, 2019 with the Securities and Exchange Commission (SEC), as well as in subsequent reports filed this year with the SEC. 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 (Hong Kong): +852-3107-0800
Tel (U.S.): 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, except share data) 

 
September 30, 2019
 
December 31, 2018
 
(Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
101,113

 
$
132,653

Inventories
7,999

 
12,165

Other current assets
6,997

 
5,369

Total current assets
116,109

 
150,187

Property and equipment, net
821

 
934

Operating lease right-of-use assets
3,515

 

Goodwill
1,764

 
1,764

Restricted cash
2,881

 
2,998

Deferred tax asset
1,210

 
1,207

Other assets
807

 
831

Total assets
$
127,107

 
$
157,921

LIABILITIES AND STOCKHOLDERS’ EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
627

 
$
1,631

Accrued commissions
3,798

 
12,502

Other accrued expenses
3,392

 
6,121

Deferred revenue
3,302

 
6,795

Amounts held in eWallets
13,090

 
14,611

Operating lease liabilities
1,689

 

Other current liabilities
1,188

 
1,424

Total current liabilities
27,086

 
43,084

Income taxes payable
15,365

 
16,982

Deferred tax liability
186

 
186

Long-term incentive

 
7,808

Operating lease liabilities
1,903

 

Total liabilities
44,540

 
68,060

Stockholders’ equity:
 
 
 
Preferred stock

 

Common stock
13

 
13

Additional paid-in capital
86,102

 
86,415

Retained earnings
23,567

 
44,431

Accumulated other comprehensive loss
(1,764
)
 
(1,250
)
Treasury stock, at cost
(25,351
)
 
(39,748
)
Total stockholders’ equity
82,567

 
89,861

Total liabilities and stockholders’ equity
$
127,107

 
$
157,921



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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,
 
2019
 
2018
 
2019
 
2018
Net sales
$
17,023

 
$
47,043

 
$
59,779

 
$
150,320

Cost of sales
4,371

 
9,926

 
15,002

 
30,546

Gross profit
12,652

 
37,117

 
44,777

 
119,774

Operating expenses:
 
 
 
 
 
 
 
Commissions expense
7,362

 
22,001

 
28,258

 
67,291

Selling, general and administrative expenses
6,354

 
7,269

 
20,296

 
24,484

Total operating expenses
13,716

 
29,270

 
48,554

 
91,775

Income (loss) from operations
(1,064
)
 
7,847

 
(3,777
)
 
27,999

Other income, net
323

 
249

 
1,128

 
465

Income (loss) before income taxes
(741
)
 
8,096

 
(2,649
)
 
28,464

Income tax provision
502

 
467

 
120

 
2,988

Net income (loss)
$
(1,243
)
 
$
7,629

 
$
(2,769
)
 
$
25,476

Net income (loss) per common share:
 
 
 
 
 
 
 
Basic
$
(0.12
)
 
$
0.67

 
$
(0.25
)
 
$
2.25

Diluted
$
(0.12
)
 
$
0.67

 
$
(0.25
)
 
$
2.25

Weighted-average number of common shares outstanding:
 
 
 
 
 
 
 
Basic
10,623

 
11,309

 
11,010

 
11,298

Diluted
10,623

 
11,322

 
11,010

 
11,307



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NATURAL HEALTH TRENDS CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)
 
 
Nine Months Ended September 30,
 
2019
 
2018
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
Net income (loss)
$
(2,769
)
 
$
25,476

Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
 
 
 
Depreciation and amortization
290

 
332

Noncash lease expense
1,336

 

Deferred income taxes
(3
)
 

Changes in assets and liabilities:
 
 
 
Inventories
4,104

 
(2,828
)
Other current assets
(1,674
)
 
2,548

Other assets
2

 
(83
)
Accounts payable
(1,002
)
 
967

Accrued commissions
(8,683
)
 
2,003

Other accrued expenses
(1,779
)
 
314

Deferred revenue
(3,485
)
 
26

Amounts held in eWallets
(1,508
)
 
(930
)
Operating lease liabilities
(1,392
)
 

Income taxes payable
(1,617
)
 
(2,201
)
Other current liabilities
(235
)
 
438

Long-term incentive
(333
)
 
(800
)
Net cash provided by (used in) operating activities
(18,748
)
 
25,262

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
Purchases of property and equipment
(181
)
 
(176
)
Net cash used in investing activities
(181
)
 
(176
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
Repurchase of common stock
(9,564
)
 

Dividends paid
(2,736
)
 
(27,644
)
Net cash used in financing activities
(12,300
)
 
(27,644
)
Effect of exchange rates on cash, cash equivalents and restricted cash
(428
)
 
(711
)
Net decrease in cash, cash equivalents and restricted cash
(31,657
)
 
(3,269
)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period
135,651

 
138,478

CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period
$
103,994

 
$
135,209

SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION:
 
 
 
Issuance of treasury stock for employee awards, net
$
8,289

 
$
554

Right-of-use assets obtained in exchange for operating lease liabilities
$
5,058

 
$



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