• Natural Health Trends Reports Fourth Quarter and Full Year 2024 Financial Results

    Source: Nasdaq GlobeNewswire / 05 Feb 2025 09:00:00   America/New_York

    – Net sales from our most important Hong Kong business up sequentially and year-over-year during the 4th quarter
    – Positive cash flows from operations before 2017 Tax Act installment for the 4th quarter as well as the full year of 2024
    – Declared a quarterly cash dividend of $0.20 per share

    LOS ANGELES, Feb. 05, 2025 (GLOBE NEWSWIRE) -- 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 fourth quarter and full year ended December 31, 2024.

    Fourth Quarter 2024 Financial Highlights

    • Revenue of $10.8 million was roughly unchanged compared to $10.9 million in the fourth quarter of 2023. Revenue from our Hong Kong business increased 9% sequentially and 7% compared to the fourth quarter of 2023.
    • Operating loss was $421,000, compared to $292,000 in the fourth quarter of 2023. The increase primarily can be attributed to the timing of expenses incurred year-over-year.
    • Net income was $176,000, or $0.02 per diluted share, compared to $358,000, or $0.03 per diluted share, in the fourth quarter of 2023.
    • The number of Active Members1 were 30,870 at December 31, 2024, roughly unchanged compared to 30,880 at September 30, 2024, and decreased 5% compared to 32,410 at December 31, 2023.
    1Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve-month period.
      

    Full Year 2024 Financial Highlights

    • Revenue of $43.0 million decreased 2% compared to $43.9 million in 2023.
    • Operating loss was $1.3 million, compared to $1.7 million in 2023.
    • Net income was $572,000, or $0.05 per diluted share, compared to $568,000, or $0.05 per diluted share, in 2023.

    Management Commentary

    "Our fourth quarter performance was steady as our business in Greater China achieved a 7% increase in net sales compared to the fourth quarter of 2023 and a 9% increase compared to last quarter, despite ongoing tepid consumer sentiment. Overall, our results for the fourth quarter and the full year were tempered by the performance of other markets, particularly Taiwan and North America, where we implemented strategic price adjustments in 2023 and offered fewer product promotions throughout 2024. However, these changes position us for long-term benefits of safeguarding margins and reinforcing market discipline."

    Corporate Development

    In February 2025, the Company relocated its corporate headquarters from Hong Kong back to Rolling Hills Estates, California.

    Balance Sheet and Cash Flow

    • Net cash provided operating activities was $88,000 in the fourth quarter of 2024, compared net cash used in operating activities of $69,000 in the fourth quarter of 2023. Net cash used in operating activities was $3.4 million in 2024, compared to $4.3 million in 2023. Before tax installment payments, the liability of which arises from the 2017 U.S. Tax Cuts and Jobs Act (the “Act Act”), cash provided by operating activities was $602,000 in 2024, versus cash used in operations of $1.2 million a year ago. Of the total Tax Act liability of $20.2 million, $15.1 million has been paid to date.
    • Total cash, cash equivalents and marketable securities were $43.9 million as of December 31, 2024, down from $46.3 million as of September 30, 2024.
    • On February 3, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.20 on each share of common stock outstanding. The dividend will be payable on February 28, 2025 to stockholders of record as of February 18, 2025.

    The Company expects to issue its 2024 audited financial results in late February with its Annual Report on Form 10-K to be filed with the United States Securities and Exchange Commission. These financial results are preliminary and the accompanying financial statements have not been audited or have not yet been reviewed by the Company’s independent accountants. Significant updates and revisions may be required before the release of the Company’s 2024 audited financial results.

    Fourth Quarter and Full Year 2024 Financial Results Conference Call

    Management will host a conference call to discuss the fourth quarter and full year 2024 financial results today, Wednesday, February 5, 2025 at 11:30 a.m. Eastern Time. The conference call details are as follows:

    Date:Wednesday, February 5, 2025
    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:13750282
    Webcast:https://viavid.webcasts.com/starthere.jsp?ei=1698806&tp_key=ccfcb08f42
      

    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 February 5, 2025 through 11:59 p.m. Eastern Time on February 12, 2025 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number:  13750282.

    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 February 28, 2024 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.

       
    NATURAL HEALTH TRENDS CORP.
    CONSOLIDATED BALANCE SHEETS
    (In thousands, except share data)
       
     December 31, 
     2024  2023 
     (Unaudited)  
    ASSETS       
    Current assets:       
    Cash and cash equivalents$13,533  $56,178 
    Marketable securities 30,407   — 
    Inventories 3,272   4,293 
    Other current assets 3,771   3,758 
    Total current assets 50,983   64,229 
    Property and equipment, net 190   266 
    Operating lease right-of-use assets 2,498   3,319 
    Restricted cash 34   39 
    Deferred tax asset 382   369 
    Other assets 1,272   869 
    Total assets$55,359  $69,091 
    LIABILITIES AND STOCKHOLDERS’ EQUITY       
    Current liabilities:       
    Accounts payable$895  $990 
    Income taxes payable 4,908   3,716 
    Accrued commissions 2,021   2,067 
    Other accrued expenses 1,425   1,170 
    Deferred revenue 6,428   6,166 
    Amounts held in eWallets 3,286   3,945 
    Operating lease liabilities 1,127   1,146 
    Other current liabilities 709   784 
    Total current liabilities 20,799   19,984 
    Income taxes payable —   5,054 
    Deferred tax liability 174   135 
    Operating lease liabilities 1,514   2,318 
    Total liabilities 22,487   27,491 
    Stockholders’ equity:       
    Preferred stock —   — 
    Common stock 13   13 
    Additional paid-in capital 84,901   84,695 
    Accumulated deficit (26,344)  (17,703)
    Accumulated other comprehensive loss (1,301)  (1,069)
    Treasury stock, at cost (24,397)  (24,336)
    Total stockholders’ equity 32,872   41,600 
    Total liabilities and stockholders’ equity$55,359  $69,091 
            
            



          
    NATURAL HEALTH TRENDS CORP. 
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except per share data)
          
     Three Months Ended December 31,  Year Ended December 31, 
     2024  2023  2024  2023 
     (Unaudited)  (Unaudited)     
    Net sales$10,846  $10,937  $42,963  $43,924 
    Cost of sales 2,802   2,789   11,178   11,175 
    Gross profit 8,044   8,148   31,785   32,749 
    Operating expenses:               
    Commissions expense 4,549   4,553   17,571   18,414 
    Selling, general and administrative expenses 3,916   3,837   15,513   16,006 
    Total operating expenses 8,465   8,390   33,084   34,420 
    Loss from operations (421)  (242)  (1,299)  (1,671)
    Other income, net 396   708   1,919   2,416 
    Income (loss) before income taxes (25)  466   620   745 
    Income tax provision (benefit) (201)  108   48   177 
    Net income$176  $358  $572  $568 
    Net income per common share:               
    Basic$0.02  $0.03  $0.05  $0.05 
    Diluted$0.02  $0.03  $0.05  $0.05 
    Weighted-average number of common shares outstanding:               
    Basic 11,478   11,448   11,467   11,436 
    Diluted 11,486   11,461   11,490   11,456 
                    
                    



       
    NATURAL HEALTH TRENDS CORP.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
       
     Year Ended December 31, 
     2024  2023 
    CASH FLOWS FROM OPERATING ACTIVITIES: (Unaudited)     
    Net income$572  $568 
    Adjustments to reconcile net income to net cash used in operating activities:       
    Depreciation and amortization 131   164 
    Net accretion of marketable securities (441)  — 
    Share-based compensation 145   161 
    Noncash lease expense 1,087   1,109 
    Deferred income taxes 17   (178)
    Changes in assets and liabilities:       
    Inventories 1,000   228 
    Other current assets (113)  (452)
    Other assets (421)  (270)
    Accounts payable (94)  181 
    Income taxes payable (3,862)  (3,299)
    Accrued commissions (19)  (866)
    Other accrued expenses 271   (4)
    Deferred revenue 245   565 
    Amounts held in eWallets (672)  (947)
    Operating lease liabilities (1,151)  (1,119)
    Other current liabilities (62)  (119)
    Net cash used in operating activities (3,367)  (4,278)
    CASH FLOWS FROM INVESTING ACTIVITIES:       
    Purchases of property and equipment (57)  (46)
    Purchases of marketable securities (70,431)  — 
    Proceeds from maturities of marketable securities 40,413   — 
    Net cash used in investing activities (30,075)  (46)
    CASH FLOWS FROM FINANCING ACTIVITIES:       
    Dividends paid (9,213)  (9,215)
    Net cash used in financing activities (9,213)  (9,215)
    Effect of exchange rates on cash, cash equivalents and restricted cash 5   10 
    Net decrease in cash, cash equivalents and restricted cash (42,650)  (13,529)
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period 56,217   69,746 
    CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period$13,567  $56,217 
    SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:       
    Right-of-use assets obtained in exchange for operating lease liabilities$124  $147 
            
            

    CONTACT:

    Scott Davidson
    Senior Vice President and Chief Financial Officer
    Natural Health Trends Corp.
    Tel (U.S.): 310-541-0888
    investor.relations@nhtglobal.com


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