HONG KONG, Jan. 29, 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 the Company will report its financial results for the fourth quarter ended December 31, 2024 on Wednesday, February 5, 2025 at 9:00 a.m. Eastern Time. Chris Sharng, Natural Health Trends' President, and Scott Davidson, Senior Vice President and Ch ...

Core Viewpoint - Natural Health Trends Corp. (NHTC) reported breakeven earnings per share (EPS) for Q3 2024, a decline from the previous year's EPS of 2 cents [1] Revenue Summary - NHTC's revenues for Q3 2024 were $10.7 million, reflecting a year-over-year increase of 0.7% [2] - The Primary Reporting Segment generated revenues of $9.9 million, down 2.9% from the same quarter last year [3] - Revenues from the China region reached $0.6 million, up 136.6% year over year [3] - The Russia and Kazakhstan region contributed $0.1 million, an increase of 24.1% from the prior year [3] Gross Margin Analysis - The gross profit margin for Q3 2024 was 74.1%, a slight decrease from 74.7% in the previous year, primarily due to higher costs associated with the Premium Noni Juice product [4] Operating Expenses - Selling, general and administrative expenses rose by 0.3% to $3.9 million [5] Profitability Insights - The operating loss for Q3 2024 was $0.28 million, an improvement from the operating loss of $0.29 million in the prior year [6] - Net income for the quarter was $0.04 million, down from $0.2 million in the same quarter last year, attributed to lower interest income and higher effective tax rates [6] Liquidity and Debt Management - NHTC ended Q3 2024 with cash and cash equivalents of $22.9 million, up from $15.6 million at the end of Q2 [7] - Cumulative net cash used in operating activities was $3.5 million, compared to $4.2 million a year ago [7] Market Outlook - The company showed encouraging top-line results, particularly in the China and Russia and Kazakhstan regions [8] - Plans to launch new products in Turkey, including Skindulgence revitalizing serum and eye cream, are expected to enhance market presence [8] - However, the decline in bottom-line results and lower revenues from the Primary Reporting Segment are concerning [9] - Management noted weak consumer spending in the main market, which poses challenges for future growth [9]

Natural Health Trends Corp. (NASDAQ:NHTC) Q3 2024 Results Conference Call October 30, 2024 11:30 AM ET Company Participants Michelle Glidewell - IR Chris Sharng - President Scott Davidson - SVP & CFO Operator Greetings, and welcome to Natural Health Trends Corp. Third Quarter 2024 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to your host, Michelle Glidewell, with Natural Health Trends Corp. Thank you. You may begin. Michelle Glidewell Thank you, and welcome ...

Financial Performance - Net sales for Q3 2024 were $10.691 million, slightly up from $10.615 million in Q3 2023[13] - Gross profit for Q3 2024 remained flat at $7.926 million compared to Q3 2023[13] - Net income for Q3 2024 dropped to $35,000 from $172,000 in Q3 2023[13] - Comprehensive income for Q3 2024 was $324,000, up from $150,000 in Q3 2023[16] - Net income for Q1 2024 was $188 thousand, contributing to a total stockholders' equity of $39,370 thousand[19] - Net income for Q2 2024 was $173 thousand, with total stockholders' equity decreasing to $37,250 thousand[19] - Net income for Q3 2024 was $35 thousand, with total stockholders' equity further decreasing to $35,305 thousand[19] - Net income for the nine months ended September 30, 2024, was $396 thousand, compared to $210 thousand in the same period in 2023[22] - Net sales for the three months ended September 30, 2024 were $10,691 thousand, compared to $10,615 thousand for the same period in 2023[40] - Net sales for the nine months ended September 30, 2024 were $32,117 thousand, compared to $32,987 thousand for the same period in 2023[40] - Net sales for the Primary Reporting Segment were $9,951 thousand for the three months ended September 30, 2024, compared to $10,249 thousand in the same period in 2023[77] - Net sales from external customers in Hong Kong were $8,356 thousand for the three months ended September 30, 2024, compared to $8,412 thousand in the same period in 2023[78] - Total net sales for the nine months ended September 30, 2024 were $32,117 thousand, compared to $32,987 thousand in the same period in 2023[78] - Net sales for the three months ended September 30, 2024 were $10.7 million, a 1% increase compared to $10.6 million in the same period last year[100] - Hong Kong net sales, primarily from products shipped to China, decreased by $56,000 (less than 1%) for the three months ended September 30, 2024 compared to the same period last year[100] - Gross profit margin declined to 74.1% for the three months ended September 30, 2024 from 74.7% in the same period last year, primarily due to higher costs related to the Premium Noni Juice product[102] - Commissions expense decreased to 40.5% of net sales for the three months ended September 30, 2024 from 41.1% in the same period last year, mainly due to lower weekly commissions earned outside of Hong Kong[103] - Selling, general and administrative expenses were $3.9 million for both the three months ended September 30, 2024 and 2023[104] - Other income decreased to $441,000 for the three months ended September 30, 2024 from $585,000 in the same period last year, primarily due to less interest income earned[106] - Diluted net income per common share for the nine months ended September 30, 2024, was $0.03, compared to $0.02 in the same period in 2023[30] Cash Flow and Liquidity - Operating cash flows were negative in 2022 and 2023, with only modest positive flows in 2020 and 2021[7] - Net cash used in operating activities for the nine months ended September 30, 2024, was $3.455 million, compared to $4.209 million in the same period in 2023[22] - Net cash used in investing activities for the nine months ended September 30, 2024, was $23.090 million, primarily due to purchases of marketable securities[22] - Dividends paid during the nine months ended September 30, 2024, were $6.909 million, consistent with the same period in 2023[22] - Cash, cash equivalents, and restricted cash decreased by $33.280 million to $22.937 million as of September 30, 2024, compared to $58.449 million as of September 30, 2023[22] - Cash and cash equivalents decreased to $22,937 thousand as of September 30, 2024, from $56,217 thousand as of December 31, 2023[45] - Total investments in cash equivalents and marketable securities were $37,905 thousand as of September 30, 2024, compared to $47,207 thousand as of December 31, 2023[48] - Cash, cash equivalents, and marketable securities totaled $46.3 million as of September 30, 2024, a decrease of $9.9 million from December 31, 2023 due to dividend payments and repatriation tax payments[109] - Working capital decreased by $11.5 million to $32.7 million as of September 30, 2024 compared to December 31, 2023[110] - Cash used in operations improved by $1.7 million for the first nine months of 2024 compared to the same period last year, primarily due to better inventory and operating cost management[111] Dividends and Shareholder Equity - Dividends declared at $0.20 per share resulted in a total payout of $2,303 thousand in Q1 2024[19] - Dividends declared at $0.20 per share resulted in a total payout of $2,303 thousand in Q3 2024[19] - The Company declared and paid cash dividends of $0.20 per common share during each of the first three quarters of 2024, totaling $6.9 million[70] - Quarterly cash dividend of $0.20 per share declared, payable on November 22, 2024[79] - Total stockholders' equity as of September 30, 2024, stood at $35,305 thousand[19] - Accumulated other comprehensive loss decreased from $(1,069) thousand at December 31, 2023 to $(960) thousand at September 30, 2024[72] - As of September 30, 2024, $21.9 million of the $70.0 million stock repurchase program remained available for future purchases[71] Market and Operational Risks - The company experienced a significant loss of members, which is adversely affecting its business[7] - Hong Kong operations, a substantial portion of the business, are being adversely affected by recent political and social developments[7] - The company faces risks from product concentration and lack of revenue diversification[7] - Currency exchange rate fluctuations could lower revenue and net income[8] - The company is subject to extensive government regulation, which could delay or limit product sales in some markets[8] - Sales and net earnings are affected by currency exchange rates, with sales and earnings generally increasing with a weakening U.S. dollar and decreasing with a strengthening U.S. dollar[96] - COVID-19 pandemic and related government measures significantly impacted financial results from 2020 through 2022, with recovery observed in 2023 and the first nine months of 2024[87] - Recent political and social developments in Hong Kong, along with COVID-19, led to the cessation of member meetings and events in Hong Kong in 2020, with partial resumption in recent quarters[88] Share-Based Compensation and Equity Adjustments - Share-based compensation added $38 thousand to equity in Q2 2024[19] - Foreign currency translation adjustments negatively impacted equity by $114 thousand in Q1 2024[19] - Foreign currency translation adjustments positively impacted equity by $252 thousand in Q3 2024[19] - Unrealized gains on available-for-sale securities added $37 thousand to equity in Q3 2024[19] - Share-based compensation expense recognized during the three months ended September 30, 2024 was $34,000, compared to $38,000 in the same period in 2023[64] - Total unrecognized share-based compensation expense related to non-vested restricted stock as of September 30, 2024 was $167,000, expected to be recognized over a weighted-average period of 0.7 years[64] - The Company granted 212,937 phantom shares on February 7, 2023, with 159,702 vested, 26,618 unvested, and 26,617 forfeited as of September 30, 2024[66] - Compensation expense related to the cash settlement of phantom shares was $181,000 for the three months ended September 30, 2024, compared to $144,000 in the same period in 2023[68] Inventory and Contract Liabilities - Inventories decreased to $3,684 thousand as of September 30, 2024, from $4,293 thousand as of December 31, 2023[45] - Contract liabilities increased to $5.2 million as of September 30, 2024, from $4.4 million as of December 31, 2023, due to unshipped product orders and unredeemed product vouchers[38] Geographic and Market Operations - The company operates in multiple markets, including the Americas, Greater China, Southeast Asia, South Korea, Japan, India, and Europe, with additional operations in Russia and Kazakhstan through a local service provider[25] - 93% of net sales generated from subsidiaries outside the Americas, with Hong Kong subsidiary contributing 78% of net sales in the latest fiscal quarter[83] - 79% of revenue in 2023 generated in Hong Kong, substantially all from product sales to members in China[87] - Company operates an e-commerce direct selling platform in Hong Kong and a retail platform in China, with plans to reapply for a direct selling license in China[84] - The company plans to focus resources on investing in Greater China and other key markets, including establishing China-based manufacturing capabilities and increasing brand awareness[116] Lease and Other Expenses - Lease cost for the three months ended September 30, 2024 was $353 thousand, compared to $358 thousand for the same period in 2023[52] - Lease cost for the nine months ended September 30, 2024 was $1,069 thousand, compared to $1,085 thousand for the same period in 2023[52] - The weighted-average remaining lease term as of September 30, 2024 was 3.7 years, with a weighted-average discount rate of 4.3%[53] - The present value of lease liabilities as of September 30, 2024 was $2,930 thousand[54] Tax and Foreign Operations - The company has foreign net operating loss carryforwards of approximately $2.3 million as of September 30, 2024[57] - The company's cash and cash equivalents include $3.8 million held in bank accounts in China subject to foreign currency controls as of September 30, 2024[27] Sales Returns and Commissions - Sales returns were 1% of sales for both the nine months ended September 30, 2024, and 2023[35] - Member commissions represented 41% of net sales for the first nine months of 2024, compared to 42% in the same period of 2023[93] Membership and Sales Trends - Active members decreased to 30,880 as of September 30, 2024, from 32,410 at December 31, 2023, and 34,660 at September 30, 2023[82] Miscellaneous - Not applicable under smaller reporting company disclosure rules[120]

Exhibit 99.1 Natural Health Trends Reports Third Quarter 2024 Financial Results – Total net sales increased sequentially and year-over-year during the third quarter of 2024 – Improved operating bottom line for three consecutive quarters – Generated cash flows from operations before 2017 Tax Act installment of $514,000 during the first nine months of 2024 – Declared a quarterly cash dividend of $0.20 per share HONG KONG – October 30, 2024 – Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling ...

Natural Health Trends Corp. (NHTC) reported earnings per share (EPS) of 2 cents in the second quarter of 2024 against the year-ago loss of 2 cents per share. Revenues in Detail Natural Health registered revenues of $10.5 million in the second quarter, down 0.3% year over year. Lower revenues from the majority of the segments dampened the topline. Segment Details Natural Health derives revenues from three segments — Primary Reporting Segment, China and Russia and Kazakhstan. For the quarter under review, Pri ...

Natural Health Trends Corp. (NASDAQ:NHTC) Q2 2024 Earnings Conference Call July 31, 2024 11:30 AM ET Company Participants Michelle Glidewell - IR Chris Sharng - President Scott Davidson - SVP & CFO Conference Call Participants Operator Greetings, and welcome to the Natural Health Trends Corp. Second Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions]. As a reminder, this conference is being recorded. It is now my pleasure to introduce your ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______ to _______ Commission File Number: 001-36849 NATURAL HEALTH TRENDS CORP. (Exact name of registrant as specified in its charter) Delawa ...

Exhibit 99.1 Natural Health Trends Reports Second Quarter 2024 Financial Results – Total net sales were flat compared to the second quarter of 2023; first year-over-year increase in Hong Kong net sales since the first quarter of 2023 – Cash flows from operations before 2017 Tax Act installment were positive for second consecutive quarter – Declared a quarterly cash dividend of $0.20 per share HONG KONG – July 31, 2024 – Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling and e-commerce comp ...

Core Viewpoint - Natural Health Trends Corp. will report its financial results for the second quarter of 2024 on July 31, 2024, at 9:00 a.m. Eastern Time, followed by a conference call at 11:30 a.m. Eastern Time to discuss these results [1]. Financial Results Announcement - The financial results for the second quarter ended June 30, 2024, will be announced on July 31, 2024 [1]. - The conference call to discuss the financial results will take place on the same day at 11:30 a.m. Eastern Time [1]. Conference Call Details - Date: July 31, 2024 [2]. - Time: 11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time [2]. - Dial-in numbers: 1-877-407-0789 (Domestic) and 1-201-689-8562 (International) [2]. - Conference ID: 13746911 [2]. - Replay availability from 2:30 p.m. Eastern Time on July 31, 2024, until 11:59 p.m. Eastern Time on August 7, 2024 [2]. Company Overview - Natural Health Trends Corp. is an international direct-selling and e-commerce company operating in Asia, the Americas, and Europe [1]. - The company markets premium quality personal care products under the NHT Global brand [1].