ex99-1.htm

Exhibit 99.1

Company Contact	Investor Contact
Scott Davidson	Brett Maas
Chief Financial Officer	Managing Partner
Natural Health Trends Corp.	Hayden IR
Tel: 972-241-4080	Tel: 646-536-7331
scott.davidson@nhtglobal.com	brett@haydenir.com

FOR IMMEDIATE RELEASE

NHTC Reports 76% Increase in First Quarter Revenues to $40.7 Million;

Net Income Increased 119% to $6.7 Million

Board Increases Dividend to $0.03 Per Share;

Announces Special Share Repurchase Program

DALLAS, TX, May 5, 2015 -- Natural Health Trends Corp. (Nasdaq: NHTC), a leading direct selling company that markets premium quality personal care, wellness and “quality of life” products under the NHT Global brand, today announced financial results for the quarter ended March 31, 2015.

First Quarter Highlights

●	Total revenues increased 76% to $40.7 million, compared to $23.2 million in the first quarter last year.

Revenue from Hong Kong operations, which represents 92% of total revenue, increased $16.9 million, or 83% over last year

Revenue outside of Hong Kong increased $619,000, or 23% over last year

●	Operating income increased 122% to $6.9 million, compared to $3.1 million in the first quarter last year.

●	Net income was $6.7 million, or $0.54 per diluted share, compared to $3.1 million, or $0.26 per diluted share, in the first quarter last year.

●	Total number of active distributors increased 14% to 62,010 at March 31, 2015 compared to year end 2014.

“We have delivered a great start for the year,” commented Chris Sharng, President of Natural Health Trends Corp. “Our success in Greater China continues, attributable to the effectiveness of our leadership development, products, training and marketing programs.”

“We are also excited to see significant increases in North America, albeit from a small base,” continued Mr. Sharng. “Along with our initiatives in Southeast Asia, we may develop more sources for growth.”

Balance Sheet

At March 31, 2015, cash and cash equivalents totaled $59.9 million, compared to $44.8 million as of December 31, 2014. At March 31, 2015, the Company had working capital of $30.9 million, an increase of $5.7 million compared to December 31, 2014, resulting in a current ratio of 1.88 to 1.

Dividend and Share Repurchase

Yesterday, the Board of Directors declared a dividend of $0.03 per share, a 50% increase over the prior quarter dividend, on outstanding common stock payable in cash on May 29, 2015 to stockholders of record on May 19, 2015.

Also yesterday, the Board of Directors approved a special stock repurchase of up to $5 million of the Company’s outstanding shares of common stock. Such repurchases are expected to begin soon and be made in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934 (the “Exchange Act”). For all or a portion of the authorized repurchase amount, the Company may enter into a plan that is compliant with Rule 10b5-1 of the Exchange Act that is designed to facilitate these purchases. The repurchase program does not require the Company to acquire a specific number of shares, and may be suspended from time to time or discontinued. The share repurchases will be funded from available working capital.

Shareholder Conference Call

Management will conduct a conference call to discuss its first quarter financial results. Details of the call are as follows:

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Date: Tuesday May 5, 2015

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Time: 10 a.m. ET/9 a.m. CT/7 a.m. PT

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Dial-in number: 1-888-455-2260 (domestic) 1-719-785-1765 (international)

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Webcast link: http://public.viavid.com/index.php?id=114212

A replay will be available from 1 p.m. ET on May 5, 2015 through 11:59 p.m. ET on May 12, 2015 by dialing 1-877-870-5176 (domestic) and 1-858-384-5517 (international) and referencing replay pin number 7712921.

About Natural Health Trends Corp.

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, wellness and “quality of life” products under the NHT Global brand. Additional information can be found on the company's website, www.naturalhealthtrendscorp.com.

Forward Looking Statement

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 March 6, 2015, 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.

-- Tables follow --

NATURAL HEALTH TRENDS CORP.

CONSOLIDATED BALANCE SHEETS

(In Thousands, Except Share Data)

	December 31, 2014			March 31, 2015
				(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	44,816		$	59,866
Accounts receivable		107			178
Inventories, net		3,760			4,859
Other current assets		930			1,179
Total current assets		49,613			66,082
Property and equipment, net		476			699
Goodwill		1,764			1,764
Restricted cash		315			312
Other assets		372			591
Total assets	$	52,540		$	69,448

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:
Accounts payable	$	2,232		$	2,543
Income taxes payable		268			208
Accrued distributor commissions		8,853			7,430
Other accrued expenses		6,743			7,874
Deferred revenue		2,687			10,371
Deferred tax liability		65			65
Amounts held in distributor eWallets		2,064			4,962
Other current liabilities		1,513			1,717
Total current liabilities		24,425			35,170
Long-term incentive		1,665			1,603
Total liabilities		26,090			36,773
Commitments and contingencies
Stockholders’ equity:
Preferred stock	–			–
Common stock		13			13
Additional paid-in capital		85,750			85,608
Accumulated deficit		(54,799	)		(48,359	)
Accumulated other comprehensive income:
Foreign currency translation adjustments		62			199
Treasury stock, at cost		(4,576	)		(4,786	)
Total stockholders’ equity		26,450			32,675
Total liabilities and stockholders’ equity	$	52,540		$	69,448

NATURAL HEALTH TRENDS CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(In Thousands, Except Per Share Data)

	Three Months Ended March 31,
	2014			2015

Net sales	$	23,162		$	40,709
Cost of sales		5,252			8,930
Gross profit		17,910			31,779
Operating expenses:
Distributor commissions		10,423			18,397
Selling, general and administrative expenses		4,347			6,423
Depreciation and amortization		21			41
Total operating expenses		14,791			24,861
Income from operations		3,119			6,918
Other expense, net		(9	)		(109	)
Income before income taxes		3,110			6,809
Income tax provision		39			71
Net income		3,071			6,738
Preferred stock dividends		(4	)	–
Net income available to common stockholders	$	3,067			6,738

Income per common share:
Basic	$	0.27		$	0.54
Diluted	$	0.26		$	0.54

Weighted-average number of common shares outstanding:
Basic		11,361			12,453
Diluted		11,673			12,548

Cash dividends declared per share:
Common	$	0.005		$	0.02
Series A preferred stock	$	0.815		$–

NATURAL HEALTH TRENDS CORP.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(In Thousands)

	Three Months Ended March 31,
	2014			2015

CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$	3,071		$	6,738
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		21			41
Stock-based compensation		25			15
Changes in assets and liabilities:
Accounts receivable		(39	)		(69	)
Inventories, net		(1,527	)		(1,101	)
Other current assets		(1,105	)		(259	)
Other assets	–				(221	)
Accounts payable		1,381			352
Income taxes payable		28			(59	)
Accrued distributor commissions		21			(1,419	)
Other accrued expenses		1,040			1,808
Deferred revenue		5,320			7,683
Amounts held in distributor eWallets	–				2,897
Other current liabilities		47			212
Long-term incentive	–				(62	)
Net cash provided by operating activities		8,283			16,556

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment, net		(63	)		(266	)
Net cash used in investing activities		(63	)		(266	)

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from exercise of warrants		598		–
Repurchase of common stock		(24	)		(1,082	)
Dividends paid	–				(250	)
Net cash provided by (used in) financing activities		574			(1,332	)

Effect of exchange rates on cash and cash equivalents		(10	)		92
Net increase in cash and cash equivalents		8,784			15,050
CASH AND CASH EQUIVALENTS, beginning of period		14,550			44,816
CASH AND CASH EQUIVALENTS, end of period	$	23,334		$	59,866

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