ex99-1.htm

DALLAS, TX, November 14, 2011 -- Natural Health Trends Corp. (Pink Sheets: NHTC) announced today that it has filed with the Securities and Exchange Commission periodic reports covering periods ended after September 30, 2009, including a comprehensive Annual Report on Form 10-K for each of the fiscal years ended December 31, 2009 and 2010 (in lieu of filing separate reports for each of those years), and separate Quarterly Reports on Form 10-Q for each of the quarters ended March 31, 2011 through September 30, 2011. The Company does not intend to file separate Quarterly Reports on Form 10-Q for any of the quarters ended March 31, 2010 through September 30, 2010, because that information is included in the comprehensive Annual Report.

Focusing on its most recent results, the Company announced $1.8 million of net income, or $0.17 income per share, on $22.9 million of sales during the first nine months of 2011, compared to $2.1 million of net loss, or $0.20 loss per share, on $17.4 million during the comparable period in 2010. Year on year sales increased 32%, while selling, general and administrative expenses decreased 15%.

Chris Sharng, president of Natural Health Trends, said, “In the last two years, we have completely changed our culture and re-built a competitive business model based on dedicated field leaders, enhanced commission structure, systemic training, attentive services, effective promotions and high-quality products. Our operating costs are way down after aggressive restructuring and will enable us to benefit from revived revenue, particularly in Greater China.”

“The third quarter’s results were bolstered by our 10th anniversary celebration and shipments of orders received in the prior quarter. Our business is still expected to be significantly influenced by seasonality factors, such as the Chinese New Year, the Chinese Golden Week (in early October) and the summertime. The cash we generate will have to be re-invested in the business to support existing operations and pursue opportunities we have in our markets.”

Natural Health Trends Corp. 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, and management encourages interested parties to register for updated corporate information via email on the company’s home page, www.naturalhealthtrendscorp.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this release do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause our actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption “Risk Factors” in our Annual Report on Form 10-K filed on November 14, 2011, with the Securities and Exchange Commission. We assume no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

	December 31, 2010			March 31, 2011			June 30, 2011			September 30, 2011
				(Unaudited)			(Unaudited)			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$648			$958			$1,437			$1,727
Restricted cash		422			495			500			496
Accounts receivable		105			161			133			91
Inventories, net		751			715			1,193			1,105
Other current assets		639			984			1,235			576
Total current assets		2,565			3,313			4,498			3,995
Property and equipment, net		203			174			158			131
Goodwill		1,764			1,764			1,764			1,764
Intangible assets, net		200			–			–			–
Restricted cash		225			231			237			217
Other assets		406			321			336			237
Total assets		$5,363			$5,803			$6,993			$6,344

LIABILITIES AND STOCKHOLDERS’ DEFICIT

Current liabilities:
Accounts payable		$3,115			$3,130			$2,614			$2,452
Income taxes payable		330			341			376			325
Accrued distributor commissions		723			694			727			1,031
Other accrued expenses		1,792			1,680			1,702			1,086
Deferred revenue		1,029			1,633			2,696			1,458
Deferred tax liability		178			177			177			177
Advance from related party		4			237			237			123
Other current liabilities		1,013			1,097			1,019			1,046
Total liabilities		8,184			8,989			9,548			7,698
Commitments and contingencies
Stockholders’ deficit:
Natural Health Trends stockholders’ deficit:
Preferred stock		124			124			124			124
Common stock		11			11			11			11
Additional paid-in capital		80,414			80,428			80,449			80,471
Accumulated deficit		(83,643	)		(84,115	)		(83,446	)		(81,813	)
Accumulated other comprehensive income:
Foreign currency translation adjustments		366			469			427			(39	)
Total Natural Health Trends stockholders’ deficit		(2,728	)		(3,083	)		(2,435	)		(1,246	)
Noncontrolling interest		(93	)		(103	)		(120	)		(108	)
Total stockholders’ deficit		(2,821	)		(3,186	)		(2,555	)		(1,354	)
Total liabilities and stockholders’ deficit		$5,363			$5,803			$6,993			$6,344

	Three Months Ended March 31,						Three Months Ended June 30,
	2010			2011			2010			2011

Net sales		$6,233			$5,175			$5,935			$7,208
Cost of sales		1,831			1,529			1,679			1,977
Gross profit		4,402			3,646			4,256			5,231
Operating expenses:
Distributor commissions		2,252			1,762			1,980			2,714
Selling, general and administrative expenses		2,676			2,030			2,716			1,836
Depreciation and amortization		312			232			406			26
Total operating expenses		5,240			4,024			5,102			4,576
Income (loss) from operations		(838	)		(378	)		(846	)		655
Other income (expense), net:
Loss on foreign exchange		20			(98	)		260			25
Interest income		–			1			7			1
Interest expense		(9	)		(1	)		(1	)		–
Other		(2	)		3			47			–
Total other income (expense), net		9			(95	)		313			26
Income (loss) before income taxes		(829	)		(473	)		(533	)		681
Income tax provision (benefit)		11			7			(28	)		13
Net income (loss)		(840	)		(480	)		(505	)		668
Plus: Net loss attributable to the noncontrolling interest		7			8			–			1
Net income (loss) attributable to Natural Health Trends		(833	)		(472	)		(505	)		669

Preferred stock dividends		(4	)		(4	)		(4	)		(4	)
Net income (loss) attributable to common stockholders of Natural Health Trends		$(837	)		$(476	)		$(509	)		$665

Income (loss) per share of Natural Health Trends – basic and diluted		$(0.08	)		$(0.04	)		$(0.05	)		$0.06

Weighted-average number of shares outstanding – basic		10,418			10,635			10,485			10,675
Weighted-average number of shares outstanding – diluted		10,418			10,635			10,485			10,706

	Three Months Ended September 30,						Nine Months Ended September 30,
	2010			2011			2010			2011

Net sales		$5,216			$10,562			$17,384			$22,945
Cost of sales		1,565			2,536			5,075			6,042
Gross profit		3,651			8,026			12,309			16,903
Operating expenses:
Distributor commissions		2,081			4,166			6,313			8,642
Selling, general and administrative expenses		2,194			2,613			7,586			6,479
Depreciation and amortization		249			23			967			281
Total operating expenses		4,524			6,802			14,866			15,402
Income (loss) from operations		(873	)		1,224			(2,557	)		1,501
Other income, net:
Loss on foreign exchange		141			428			421			355
Interest income		–			1			7			3
Interest expense		(1	)		(13	)		(11	)		(14	)
Other		24			9			69			12
Total other income, net		164			425			486			356
Income (loss) before income taxes		(709	)		1,649			(2,071	)		1,857
Income tax provision		29			16			12			36
Net income (loss)		(738	)		1,633			(2,083	)		1,821
Plus: Net (income) loss attributable to the noncontrolling interest		(4	)		–			3			9
Net income (loss) attributable to Natural Health Trends		(742	)		1,633			(2,080	)		1,830

Preferred stock dividends		(4	)		(4	)		(12	)		(12	)
Net income (loss) attributable to common stockholders of Natural Health Trends		$(746	)		$1,629			$(2,092	)		$1,818

Income (loss) per share of Natural Health Trends – basic and diluted		$(0.07	)		$0.15			$(0.20	)		$0.17

Weighted-average number of shares outstanding – basic		10,536			10,732			10,480			10,669
Weighted-average number of shares outstanding – diluted		10,536			10,898			10,480			10,699