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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Mannatech Inc | NASDAQ:MTEX | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 7.30 | 7.32 | 8.30 | 8.20 | 8.20 | 8.20 | 242 | 22:00:00 |
Mannatech, Incorporated (NASDAQ: MTEX), a global health and wellness company committed to transforming lives to make a better world, today announced financial results for its fourth quarter and year ended December 31, 2023.
Fourth Quarter Highlights
J. Stanley Fredrick, Chairman of the Board of Mannatech, stated, “Demand remained weak in the fourth quarter as reflected in our sales decline from last year's fourth quarter. However, our revenues were essentially flat to our third quarter this year. Although we incurred an operating loss in the current quarter, we mitigated our loss through active supply chain management and reduction of selling and administrative expenses.”
“We incurred a foreign exchange loss of approximately $1.0 million in the fourth quarter, reflected in 'Other Expense' in our Statement of Operations. We had a similar experience in the fourth quarter last year. We are a multinational company and therefore we are subject to fluctuations in the value of the U.S. Dollar versus other currencies in the countries we operate. These losses had a significant impact on our net loss in the fourth quarter of this year and last year,” said Mr. Fredrick.
Total Year 2023 Highlights
Excluding the startup loss of NEMO from the consolidated operating loss on a Constant dollar basis, we would have generated an operating profit of approximately $0.7 million in 2023, as compared to an operating loss of $0.4 million in 2022.
“Careful supply chain cost controls, price adjustments and favorable product mix contributed to a 210 basis point improvement in gross profit margin in the current year as compared to last year,” said Mr. Fredrick.
Mr. Fredrick continued, “We overcame economic challenges throughout our world-wide footprint in 2023, as well as issues and significant start-up costs related to a new product launch. We believe we are emerging from the severe economic decline of the past few years and the long-term outlook for our business is favorable. In the short term, we expect that we will continue to face challenges of a slow rate of growth in demand in certain markets we operate while other regions will recover at a faster rate. However, we are resolved to continue to focus on growing our customer and associate base, as well as improving our revenues and profitability in 2024.”
Non-GAAP Measures
In addition to results presented in accordance with GAAP, this press release and related tables include certain non-GAAP financial measures, including a presentation of constant dollar measures. The company discloses operating results that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into U.S. dollars, including changes in: Net Sales, Gross Profit, and Income from Operations.
The company believes that these non-GAAP financial measures provide useful information to investors because they are an indicator of the strength and performance of ongoing business operations. The constant currency figures are financial measures used by management to provide investors an additional perspective on trends. Although it believes the non-GAAP financial measures enhance investors’ understanding of their business and performance, these non-GAAP financial measures should not be considered an exclusive alternative to accompanying GAAP financial measures. Please see the accompanying table entitled "Non-GAAP Financial Measures" for a reconciliation of these non-GAAP financial measures.
Safe Harbor statement
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of phrases or terminology such as “may,” “will,” “should,” "hope," “could,” “would,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “approximates,” “predicts,” “projects,” “potential,” and “continues” or other similar words or the negative of such terminology. Similarly, descriptions of Mannatech’s objectives, strategies, plans, goals or targets contained herein are also considered forward-looking statements. Mannatech believes this release should be read in conjunction with all of its filings with the United States Securities and Exchange Commission and cautions its readers that these forward-looking statements are subject to certain events, risks, uncertainties, and other factors. Some of these factors include, among others, the impact of COVID-19 on Mannatech's business, Mannatech’s inability to attract and retain associates and members, increases in competition, litigation, regulatory changes, and its planned growth into new international markets. Although Mannatech believes that the expectations, statements, and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its latest Annual Report on Form 10-K, and other filings filed with the United States Securities and Exchange Commission, including its current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.
Individuals interested in Mannatech's products or in exploring its business opportunity can learn more at Mannatech.com.
MANNATECH, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands, except share information)
December 31, 2023
December 31, 2022
ASSETS
Cash and cash equivalents
$
7,731
$
13,777
Restricted cash
938
944
Accounts receivable, net of allowance of $1,278 and $973 in 2023 and 2022, respectively
91
218
Income tax receivable
465
423
Inventories, net
14,535
14,726
Prepaid expenses and other current assets
1,774
2,389
Deferred commissions
2,130
2,476
Total current assets
27,664
34,953
Property and equipment, net
4,147
3,759
Long-term restricted cash
718
476
Other assets
7,066
8,439
Deferred tax assets, net
1,611
1,501
Total assets
$
41,206
$
49,128
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current portion of finance leases
$
269
$
61
Accounts payable
4,010
4,361
Accrued expenses
6,779
7,510
Commissions and incentives payable
8,175
9,256
Taxes payable
1,521
3,281
Current notes payable
240
263
Deferred revenue
4,786
5,106
Total current liabilities
25,780
29,838
Finance leases, excluding current portion
956
88
Other long-term liabilities
3,986
5,026
Total liabilities
30,722
34,952
Commitments and contingencies (Note 11)
Shareholders’ equity:
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding
—
—
Common stock, $0.0001 par value, 99,000,000 shares authorized, 2,742,857 shares issued and 1,860,154 shares outstanding as of December 31, 2023 and 2,742,857 shares issued and 1,858,800 shares outstanding as of December 31, 2022
—
—
Additional paid-in capital
33,309
33,377
Retained earnings (accumulated deficit)
(1,301
)
1,686
Accumulated other comprehensive (loss)
(1,015
)
(208
)
Treasury stock, at average cost, 882,703 shares as of December 31, 2023 and 884,057 shares as of December 31, 2022
(20,509
)
(20,679
)
Total shareholders’ equity
10,484
14,176
Total liabilities and shareholders’ equity
$
41,206
$
49,128
MANNATECH, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share information)
For the three months ended December 31
For the years ended December 31
2023
2022
2023
2022
$000
%
$000
%
$000
%
$000
%
Net sales
$
32,694
100.0
%
$
34,335
100.0
%
$
131,955
100.0
%
$
137,208
100.0
%
Cost of sales
8,048
24.6
10,633
31.0
29,090
22.0
33,060
24.1
Gross profit
24,646
75.4
23,702
69.0
102,865
78.0
104,148
75.9
Operating expenses:
Commissions and incentives
13,389
41.0
13,996
40.8
53,588
40.6
55,483
40.4
Selling and administrative expenses
11,748
35.9
12,078
35.2
48,613
36.8
47,443
34.6
Depreciation and amortization
404
1.2
278
0.8
1,628
1.2
1,627
1.2
Total operating expenses
25,541
78.1
26,352
76.8
103,829
78.7
104,553
76.2
Income (loss) from operations
(895
)
(2.7
)
(2,650
)
(7.7
)
(964
)
(0.7
)
(405
)
(0.3
)
Interest income
7
—
31
0.1
4
—
88
0.1
Other expense, net
(973
)
(3.0
)
(450
)
(1.3
)
(170
)
(0.1
)
(162
)
(0.1
)
Income before income taxes
(1,861
)
(5.7
)
(3,069
)
(8.9
)
(1,130
)
(0.9
)
(479
)
(0.3
)
Income tax (provision) benefit
105
0.3
(3,440
)
(10.0
)
(1,109
)
(0.8
)
(4,011
)
(2.9
)
Net loss
$
(1,756
)
(5.4
)%
$
(6,509
)
(19.0
)%
$
(2,239
)
(1.7
)%
$
(4,490
)
(3.3
)%
(Loss) per common share:
Basic
$
(0.94
)
$
3.50
$
(1.20
)
$
(2.35
)
Diluted
$
(0.94
)
$
3.50
$
(1.20
)
$
(2.35
)
Weighted-average common shares outstanding:
Basic
1,860
1,859
1,866
1,913
Diluted
1,860
1,859
1,866
1,913
Non-GAAP Financial Measures (Sales, Gross Profit and Income From Operations in Constant Dollars)
To supplement its financial results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Mannatech discloses operating results that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into U.S. dollars, including changes in: Net Sales, Gross Profit, and Income from Operations. It refers to these adjusted financial measures as constant dollar items, which are non-GAAP financial measures. The company believes these measures provide investors an additional perspective on trends. To exclude the impact of changes due to the translation of foreign currencies into U.S. dollars, it calculates current year results and prior year results at a constant exchange rate, which is the prior year’s rate. Currency impact is determined as the difference between actual growth rates and constant currency growth rates.
The table below reconciles fourth quarter 2023 constant dollar sales to GAAP sales.
Sales - Q4 2023
GAAP
Measure:
Total $
Non-GAAP Measure:
Constant $
Constant $ Change
Americas
$
11.0
$
10.8
$
(0.2
)
Asia Pacific
$
19.4
$
19.3
$
(0.1
)
EMEA
$
2.3
$
2.4
$
0.1
Total
$
32.7
$
32.5
$
(0.2
)
The table below reconciles fiscal year 2023 and 2022 constant dollar net sales, gross profit and income from operations to GAAP net sales, gross profit and income from operations.
2023
2022
Constant Dollar Change
GAAP
Measure:
Total $
Non-GAAP Translation Adjustment
Non-GAAP Measure:
Constant $
GAAP
Measure:
Total $
Dollar
Percent
Net sales
$
132.0
$
2.3
$
134.3
$
137.2
$
(2.9
)
(2.1
)%
Gross profit
$
102.9
$
1.7
$
104.6
$
104.1
$
0.5
0.5
%
Loss from operations
$
(1.0
)
$
0.6
$
(0.4
)
$
(0.4
)
$
—
—
%
View source version on businesswire.com: https://www.businesswire.com/news/home/20240327903891/en/
Erin K. Barta General Counsel and Corporate Secretary 972-471-7742 ir@mannatech.com www.mannatech.com
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