Natural Health Trends Announces First Quarter 2009 Results
DALLAS, TX -- (MARKET WIRE) -- 05/14/09 -- Natural Health Trends Corp. (NASDAQ: BHIP) today announced its financial results for the quarter ended March 31, 2009. The company reported sales of $9.9 million and an operating loss of $808,000 for the quarter.
Chris Sharng, president of Natural Health Trends, said, "In the past year, we have brought costs down significantly and focused on members' productivity in fewer core markets. From the cash flow statement, we can tell that our operational ability to preserve cash in a traditionally lighter-volume quarter has greatly improved year over year. Meanwhile, a number of new products were successfully launched. Along with the progress we have made in resolving legacy legal issues, our strategies are taking some time but are paying off. We believe that we are on track to position Natural Health Trends to grow in markets that we targeted as having incredible potentials."
The company plans to host a conference call at 11:30 a.m. EDT, May 15, 2009. Those who wish to participate may call telephone number (866) 672-2663, or (973) 582-2772 for international callers, 15 minutes before 11:30 a.m. EDT. Callers will need to give the conference identification number, 10178044. If you cannot participate in the call, but wish to hear it, you may log in to the company's homepage at www.naturalhealthtrendscorp.com and click on the conference call 1 1/2 hours after the completion of the call.
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 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 March 23, 2009, 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.
NATURAL HEALTH TRENDS CORP. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share Data) December March 31, 2008 31, 2009 ----------- ----------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 3,491 $ 2,636 Restricted cash 340 390 Accounts receivable 71 102 Inventories, net 2,141 2,057 Other current assets 735 792 ----------- ----------- Total current assets 6,778 5,977 Property and equipment, net 1,173 1,096 Goodwill 1,764 1,764 Intangible assets, net 1,800 1,600 Restricted cash 3,646 3,268 Other assets 1,464 1,169 ----------- ----------- Total assets $ 16,625 $ 14,874 =========== =========== LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: Accounts payable $ 1,746 $ 2,722 Income taxes payable 187 281 Accrued distributor commissions 554 903 Other accrued expenses 2,456 2,837 Deferred revenue 2,841 1,098 Current portion of convertible debentures, net of discount of $2,320 and $1,677 at December 31, 2008 and March 31, 2009, respectively 1,534 1,687 Deferred tax liability 351 351 Other current liabilities 1,170 1,062 ----------- ----------- Total liabilities 10,839 10,941 Commitments and contingencies Stockholders equity: Preferred stock, $0.001 par value; 5,000,000 shares authorized; 1,761,900 shares designated Series A convertible preferred stock, 138,400 shares issued and outstanding at December 31, 2008 and March 31, 2009, aggregate liquidation value of $267 124 124 Common stock, $0.001 par value; 50,000,000 shares authorized; 10,691,582 and 10,728,714 shares issued and outstanding at December 31, 2008 and March 31, 2009, respectively 11 11 Additional paid-in capital 79,711 79,822 Accumulated deficit (74,853) (76,597) Accumulated other comprehensive income: Foreign currency translation adjustments 759 562 ----------- ----------- Total Natural Health Trends stockholders equity 5,752 3,922 Noncontrolling interest 34 11 ----------- ----------- Total stockholders equity 5,786 3,933 ----------- ----------- Total liabilities and stockholders equity $ 16,625 $ 14,874 =========== =========== NATURAL HEALTH TRENDS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In Thousands, Except Per Share Data) Three Months Ended March 31, ---------------------------- 2008 2009 ------------- ------------- Net sales $ 11,395 $ 9,869 Cost of sales 3,090 2,797 ------------- ------------- Gross profit 8,305 7,072 Operating expenses: Distributor commissions 3,997 3,779 Selling, general and administrative expenses (including stock-based compensation expense of $164 and $111 during 2008 and 2009, respectively) 4,596 3,771 Depreciation and amortization 386 330 Impairment of long-lived assets 24 - ------------- ------------- Total operating expenses 9,003 7,880 ------------- ------------- Loss from operations (698) (808) Other income (expense), net: Gain (loss) on foreign exchange 371 (2) Interest income 35 14 Interest expense (including amortization of debt issuance costs and accretion of debt discount of $362 and $775 during 2008 and 2009, respectively (387) (866) Other 8 11 ------------- ------------- Total other income (expense), net 27 (843) ------------- ------------- Loss before income taxes (671) (1,651) Income tax provision (37) (114) ------------- ------------- Net loss (708) (1,765) Plus: Net loss attributable to the noncontrolling interest - 21 ------------- ------------- Net loss attributable to Natural Health Trends $ (708) $ (1,744) ============= ============= NATURAL HEALTH TRENDS CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In Thousands) Three Months Ended March 31, ---------------------------- 2008 2009 ------------- ------------- CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (708) $ (1,765) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization of property and equipment 186 130 Amortization of intangibles 200 200 Amortization of debt issuance costs 62 132 Accretion of debt discount 300 643 Stock-based compensation 164 111 Impairment of long-lived assets 24 - Changes in assets and liabilities: Accounts receivable 50 (34) Inventories, net 781 31 Other current assets (399) (61) Other assets 59 96 Accounts payable (293) 977 Income taxes payable 18 114 Accrued distributor commissions (374) 362 Other accrued expenses (389) 396 Deferred revenue (938) (1,723) Other current liabilities (127) (95) ------------- ------------- Net cash used in operating activities (1,384) (486) ------------- ------------- CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property and equipment (6) (58) Decrease in restricted cash 93 266 ------------- ------------- Net cash provided by investing activities 87 208 ------------- ------------- CASH FLOWS FROM FINANCING ACTIVITIES Payments on debt - (490) ------------- ------------- Net cash used in financing activities - (490) ------------- ------------- Effect of exchange rates on cash and cash equivalents (328) (87) ------------- ------------- Net decrease in cash and cash equivalents (1,625) (855) CASH AND CASH EQUIVALENTS, beginning of period 6,282 3,491 ------------- ------------- CASH AND CASH EQUIVALENTS, end of period $ 4,657 $ 2,636 ============= =============
Contact: Jean Bono Natural Health Trends Corp. Email Contact
Released May 14, 2009