HONG KONG, July 24, 2024 (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 second quarter ended June 30, 2024 on Wednesday, July 31, 2024 at 9:00 a.m. Eastern Time. Chris Sharng, Natural Health Trends’ President, and Scott Davidson, Senior Vice President and Chief Fi ...

Zacks Investment Research has recently initiated coverage of Natural Health Trends Corp. (NHTC) , assigning a "Neutral" recommendation to the company's shares. This assessment comes amid a mixed outlook for the company, which has demonstrated a resilient market presence despite recent industry challenges.Natural Health Trends (trading as NHT Global), based in Delaware and having corporate headquarters in Hong Kong, specializes in marketing personal care, wellness, and quality-of-life products. It has an ext ...

Natural Health Trends Corp. (NASDAQ:NHTC) Q1 2024 Earnings Conference Call May 1, 2024 11:30 AM ET Company Participants Michelle Glidewell - Investor Relations Chris Sharng - President Scott Davidson - Chief Financial Officer Operator Ladies and gentlemen, good morning, and welcome to the Natural Health Trends Corp First Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Michelle Glidewell. Please go ...

Financial Performance - Net sales for the three months ended March 31, 2024, were $10,951,000, a decrease of 7.7% compared to $11,861,000 for the same period in 2023[15]. - Gross profit for the first quarter of 2024 was $8,039,000, down from $8,830,000 in the same quarter of 2023, reflecting a decline of approximately 9.0%[15]. - Net income for the three months ended March 31, 2024, was $188,000, compared to $257,000 for the same period in 2023, indicating a decrease of approximately 26.9%[15]. - The company reported a comprehensive income of $36,000 for Q1 2024, significantly lower than $157,000 in Q1 2023, reflecting a decline of about 77.1%[18]. - The company reported total net sales of $10.951 million for the three months ended March 31, 2024, down from $11.861 million in the same period of 2023, representing a decrease of approximately 7.66%[81]. - The primary reporting segment generated net sales of $10.466 million for the three months ended March 31, 2024, compared to $11.331 million in the prior year[81]. - In Q1 2024, net sales were $11.0 million, a decrease of $910,000 or 8% compared to $11.9 million in Q1 2023[108]. - Hong Kong net sales decreased by $499,000 or 5% year-over-year, primarily due to changes in deferred revenue, which increased by $1.0 million in Q1 2024[108]. Assets and Liabilities - Total current assets decreased to $62,733,000 as of March 31, 2024, down from $64,229,000 on December 31, 2023, representing a decline of approximately 2.3%[13]. - Total liabilities increased to $28,269,000 as of March 31, 2024, compared to $27,491,000 on December 31, 2023, marking an increase of approximately 2.8%[13]. - Stockholders' equity decreased to $39,370,000 as of March 31, 2024, down from $41,600,000 at the end of 2023, representing a decline of about 5.4%[13]. - Cash and cash equivalents decreased to $25,825,000 as of March 31, 2024, down from $56,178,000 on December 31, 2023, a decline of approximately 54.0%[13]. - The company had $25.862 million in cash, cash equivalents, and restricted cash at the end of the period, a decrease from $66.648 million at the end of the previous year[25]. - Working capital as of March 31, 2024, was $41.9 million, a decrease of $2.4 million compared to December 31, 2023[115]. - The ratio of current assets to current liabilities was 3.0 to 1.0 as of March 31, 2024[115]. Expenses - Total operating expenses decreased to $8,404,000 in Q1 2024 from $9,224,000 in Q1 2023, a reduction of about 8.9%[15]. - Selling, general and administrative expenses decreased to $3.9 million for the three-month period ended March 31, 2024, compared to $4.2 million in the same period a year ago, primarily due to lower employee-related costs and professional fees[111]. - The company experienced a decrease in share-based compensation expenses, which were $37 million for the three months ended March 31, 2024, compared to $46 million in the prior year[25]. - Commissions expense represented 41.0% of net sales in Q1 2024, compared to 42.1% in Q1 2023, attributed to lower weekly commissions outside of Hong Kong[110]. Cash Flow - The company reported a net cash provided by operating activities of $549 million, a significant improvement compared to a net cash used of $696 million in the prior year[25]. - Cash provided by operations was $549,000 for the first three months of 2024, an improvement from cash used in operations of $696,000 for the same period in 2023, reflecting increased order volume and better management of operating costs[116]. - Total cash, cash equivalents, and marketable securities decreased by $1.7 million from December 31, 2023, to $54.4 million as of March 31, 2024, due to dividends paid during the first three months of 2024[115]. - Cash flows used in investing activities totaled $28.5 million for the first three months of 2024, primarily for purchasing marketable securities[116]. Dividends and Stock Repurchase - The company declared dividends of $0.20 per share, totaling $2,303,000 for the quarter[21]. - Cash dividends of $0.20 per common share were declared and paid, totaling $2.3 million for each quarter in 2024 and 2023[73]. - As of March 31, 2024, $21.9 million of the $70.0 million stock repurchase program remained available for future purchases[74]. - As of March 31, 2024, $21.9 million of the $70.0 million stock repurchase program remained available for future purchases[118]. Market and Operations - Active members decreased to 31,620 as of March 31, 2024, from 32,410 at December 31, 2023, and 38,330 at March 31, 2023[88]. - Approximately 95% of net sales are generated from subsidiaries located outside the Americas, with the Hong Kong subsidiary accounting for 84% of net sales in the latest fiscal quarter[89]. - The company operates an e-commerce direct selling platform in Hong Kong, with substantial revenues derived from sales to members in China[90]. - The business environment in China remains challenging due to ongoing government scrutiny and negative social media sentiment towards health product companies[93]. - The company has resumed in-person member events in China, Hong Kong, and Macau since Q1 2023, indicating a gradual normalization of operations[94]. - The company plans to continue adapting its marketing programs to overcome physical restrictions and is hopeful for sustained recovery in operations[94]. Tax and Deferred Revenue - The effective income tax rate for the three months ended March 31, 2024, includes estimates for foreign income inclusions, with a total income taxes payable of $9,000,000 related to the repatriation tax[62]. - Deferred revenue increased to $5.5 million as of March 31, 2024, from $4.4 million at the end of 2023, primarily due to $4.2 million of cash received for unshipped product orders[40]. - As of March 31, 2024, deferred revenue was $7.2 million, consisting of $5.5 million in unshipped product orders and $1.7 million in auto ship advances[108]. Investments and Future Plans - The company aims to invest in Greater China and other markets, focusing on establishing manufacturing capabilities and increasing brand awareness[121]. - The company plans to reapply for a direct selling license in China when circumstances are favorable, which could incrementally benefit existing business operations[90].

Exhibit 99.1 Natural Health Trends Reports First Quarter 2024 Financial Results – For the first time in six years, first quarter orders exceeded the preceding fourth quarter's, up 11%. Compared to a year ago, orders were up 1%. – Reported positive cash flows from operations during the quarter, first time in five quarters – Declared a quarterly cash dividend of $0.20 per share HONG KONG – May 1, 2024 – Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling and e-commerce company that markets pr ...

HONG KONG, April 24, 2024 (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 first quarter ended March 31, 2024 on Wednesday, May 1, 2024 at 9:00 a.m. Eastern Time. Chris Sharng, Natural Health Trends’ President, and Scott Davidson, Senior Vice President and Chief Fin ...

HONG KONG, April 24, 2024 (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 first quarter ended March 31, 2024 on Wednesday, May 1, 2024 at 9:00 a.m. Eastern Time. Chris Sharng, Natural Health Trends’ President, and Scott Davidson, Senior Vice President and Chief Fin ...

Membership and Revenue Trends - Total active members decreased from 38,660 in 2022 to 32,410 in December 2023, representing a decline of approximately 16.2%[33] - Revenue from Hong Kong, which includes members residing in China, decreased from 28,550 to 23,490, a decline of about 17.7%[33] - In 2023, approximately 79% of the company's revenue was generated in Hong Kong, with most sales delivered to members in China[82] - The company experienced negative operating cash flows in 2023 and 2022, primarily due to revenue declines exceeding managed expenditure reductions[84] - The company experienced a 16% decrease in active members at the end of 2023 compared to the end of 2022, which significantly contributed to the decline in year-over-year sales[110] - Total net sales for the year ended December 31, 2023, were $43,924,000, a decrease of 10.0% from $49,134,000 in 2022[242] Operational and Regulatory Challenges - The company’s operations have been affected by recent political and social developments in Hong Kong and regulatory changes in China[37] - The regulatory environment in China imposes restrictions on multi-level compensation and member recruitment activities, impacting the company's operations[58] - The company is subject to extensive governmental regulations regarding product marketing and safety, including compliance with FDA and FTC requirements[61] - The product registration process in China can take from nine months to over 18 months, affecting product launches[64] - The company has increased its internal regulatory staff to comply with evolving dietary supplement regulations and ensure product safety[65] - The company is subject to various regulatory issues, including foreign exchange control and compliance with local direct selling laws, which may lead to scrutiny from government authorities[71] - The company is subject to ongoing scrutiny by Chinese government regulators, which has previously impacted member activities and could lead to enforcement actions[122] - The Chinese government's 100-day campaign targeting health product companies continues to affect the business environment, with potential long-term benefits as substandard products are driven from the market[126] Financial Performance and Risks - Gross profit for 2023 was $32,749,000, down from $36,473,000 in 2022, reflecting a gross margin of 74.5%[242] - Net income for 2023 increased to $568,000, compared to $313,000 in 2022, resulting in a net income per share of $0.05[242][245] - Total current assets decreased to $64,229,000 in December 2023 from $77,551,000 in December 2022, a decline of 17.1%[240] - Total liabilities decreased to $27,491,000 in December 2023 from $32,666,000 in December 2022, a reduction of 15.5%[240] - Stockholders' equity as of December 31, 2023, was $41,600,000, down from $50,151,000 in 2022, a decrease of 17.1%[240] - Operating expenses for 2023 totaled $34,420,000, a decrease of 6.5% from $36,743,000 in 2022[242] - The company reported a loss from operations of $1,671,000 for 2023, compared to a loss of $270,000 in 2022[242] - Deferred revenue increased to $6,166,000 in December 2023 from $5,597,000 in December 2022, an increase of 10.2%[240] Marketing and Compensation Structure - The company has implemented a hybrid marketing strategy combining in-person and virtual events due to disruptions from the COVID-19 pandemic[36] - The company’s marketing and distribution strategy relies on a network marketing system, emphasizing personal recommendations and customer service[30] - The compensation plan allows members to earn income through commissions based on bonus volume points from product purchases made by their down-line members[47] - Members can earn commissions weekly, with eligibility potentially requiring nominal monthly purchases of products[48] - The company employs a binary compensation plan with unilevel features, enabling members to sponsor others across different countries[47] Product and Supply Chain Management - The company sources products from manufacturers primarily located in the United States, South Korea, Hong Kong, Taiwan, Europe, and China[24] - The company relies on a limited number of independent third-party manufacturers, which poses risks related to product quality and timely supply[102] - The introduction of new products is critical for member engagement; failure to gain market acceptance could adversely affect the company's operations[99] Compliance and Legal Risks - The company faces risks from potential non-compliance with direct selling regulations, which could result in substantial fines and restrictions on business operations[128] - The company is subject to anti-bribery laws, and violations could result in significant expenses and reputational damage[164] - The company does not have a comprehensive product liability insurance program, which could expose it to various product liability claims[166] - The company faces risks from potential lawsuits, claims, and governmental proceedings that could harm its business[142] Cybersecurity and IT Risks - The company's operations are highly dependent on the accuracy and reliability of its information technology systems, with any interruptions potentially having a material adverse effect on its financial condition[171] - Cybersecurity risks are a significant concern, with potential disruptions or breaches possibly harming the company's reputation and financial results[174] - The company has implemented a cybersecurity risk management program, including third-party vendor engagement for monitoring and threat detection[185] - The company maintains cybersecurity insurance, but costs related to cybersecurity threats may not be fully covered[186] Market Competition - The company faces competitive risks from larger multinational corporations and local operators in the network marketing industry, which may affect its market position[77] - The company faces significant competition from larger direct selling organizations, which may hinder its ability to recruit and retain members effectively[97] - The company competes with other direct selling organizations for member recruitment, which is challenging due to high attrition rates[110] Economic and Geopolitical Factors - Political and economic risks in foreign markets may impede the company's growth and expansion efforts[103] - Ongoing geopolitical tensions between the United States and China may adversely affect trade relations and the company's operations in these markets[130] - The company has significant foreign exchange exposure, particularly if the Hong Kong dollar were no longer pegged to the U.S. dollar[145]

Natural Health Trends Corp. (NASDAQ:NHTC) Q4 2023 Earnings Conference Call February 7, 2024 11:30 AM ET Company Participants Michelle Glidewell – Senior Manager Chris Sharng – President and Director Scott Davidson – Senior Vice President and Chief Financial Officer Conference Call Participants Operator Greetings. Welcome to Natural Health Trends Corp. Fourth Quarter 2023 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions] Please note this conference is ...

HONG KONG, Jan. 31, 2024 (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, 2023 on Wednesday, February 7, 2024 at 9:00 a.m. Eastern Time. Chris Sharng, Natural Health Trends' President, and Scott Davidson, Senior Vice President and Ch ...