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 C ...

Natural Health Trends Corp (NASDAQ:NHTC) Q3 2023 Earnings Conference Call November 1, 2023 11:30 AM ET Company Participants Michelle Glidewell - Senior Manager of NHT Global Corp Chris Sharng - President and Director Timothy Davidson - Senior VP, CFO and Secretary Operator Greetings. Welcome to Natural Health Trends Corp. Third Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to Michelle Glidewell with Natural ...

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 September 30, 2023 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) D ...

Natural Health Trends Corp. (NASDAQ:NHTC) Q2 2023 Earnings Conference Call August 2, 2023 11:30 AM ET Company Participants Michelle Glidewell - Senior Manager, NHT Global Corp Chris Sharng - President Scott Davidson - SVP & CFO Conference Call Participants Operator Greetings, and welcome to the Natural Health Trends Corp. Second Quarter 2023 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 ...

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, 2023 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 ...

Natural Health Trends Corp. (NASDAQ:NHTC) Q1 2023 Results Earnings Conference Call May 3, 2023 11:30 AM ET Company Participants Michelle Glidewell - Senior Manager, NHT Global Corp Chris Sharng - President Scott Davidson - Senior Vice President and Chief Financial Officer Conference Call Participants Operator Greetings. Welcome to the Natural Health Trends Corp. First Quarter 2023 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions]. Please note, this c ...

Financial Performance - Net sales for the three months ended March 31, 2023, were $11,861,000, an increase from $11,546,000 in the same period of 2022, representing a growth of 2.7%[15] - Gross profit for the same period was $8,830,000, compared to $8,638,000 in the prior year, indicating a slight increase of 2.2%[15] - Net income for the three months ended March 31, 2023, was $257,000, a turnaround from a net loss of $105,000 in the same period of 2022[15] - The company reported a comprehensive income of $157,000 for the three months ended March 31, 2023, compared to a comprehensive loss of $333,000 in the same period of 2022[18] - Product sales for the three months ended March 31, 2023, were $11.048 million, compared to $10.322 million for the same period in 2022, reflecting an increase of 7.0%[41] - The primary reporting segment's income from operations for the three months ended March 31, 2023, was $1.827 million, compared to $1.915 million for the same period in 2022, reflecting a decrease of 4.6%[83] - Other income increased to $681,000 for the three months ended March 31, 2023, compared to $110,000 in the same period last year[118] Assets and Liabilities - Total current assets decreased to $75,012,000 as of March 31, 2023, down from $77,551,000 at the end of 2022, reflecting a decline of 3.3%[13] - Total liabilities decreased to $32,132,000 as of March 31, 2023, compared to $32,666,000 at the end of 2022, a reduction of 1.6%[13] - Cash and cash equivalents as of March 31, 2023, were $66,610,000, down from $69,667,000 at the end of 2022, a decrease of 4.0%[13] - Working capital decreased by $2.1 million to $55.0 million as of March 31, 2023, compared to December 31, 2022[121] Expenses - Operating expenses for the three months ended March 31, 2023, totaled $9,224,000, slightly higher than $9,021,000 in the same period of 2022, an increase of 2.3%[15] - Selling, general and administrative expenses decreased to $4.2 million for the three months ended March 31, 2023, from $4.3 million in the same period last year[117] - Compensation expense related to phantom shares for the three months ended March 31, 2023, was $127,000, down from $196,000 for the same period in 2022[73] - Commissions expense was 42.1% of net sales for the three months ended March 31, 2023, up from 41.0% in the prior year[116] Cash Flow - The company reported a net cash used in operating activities of $696,000 for the three months ended March 31, 2023, significantly improved from $2.348 million used in the same period of 2022[24] - Cash, cash equivalents, and restricted cash at the end of the period were $66.648 million, down from $79.464 million at the end of March 31, 2022[24] - The effect of exchange rates on cash, cash equivalents, and restricted cash resulted in a loss of $91,000 for the three months ended March 31, 2023[24] Market and Operations - The company operates in multiple international markets, including the Americas, Greater China, Southeast Asia, and Europe, with a focus on direct-selling and e-commerce for personal care and wellness products[26] - The company generated approximately 94% of its net sales from subsidiaries located outside the Americas, with the Hong Kong subsidiary accounting for 82% of net sales in the latest fiscal quarter[91] - The company plans to focus resources on investing in Greater China and other key markets, including Southeast Asia, India, South America, and Europe[126] Challenges and Outlook - The company anticipates continued adverse impacts on financial performance in the near term due to ongoing challenges in the market[101] - The Chinese government has not issued any new direct selling licenses since the 100-day campaign began in January 2019, which has negatively affected the company's operations[94] - Recent political and social developments in Hong Kong have adversely affected operations, leading to the cessation of member meetings and events in the region[99] - The COVID-19 pandemic and related government control measures have significantly disrupted operations, particularly in 2022, but there are signs of improvement in 2023[97] Shareholder Returns - The company declared and paid cash dividends of $0.20 per common share during the first quarter of 2023, totaling $2.3 million[75] - The company has $21.9 million remaining available for future purchases under its stock repurchase program, which was authorized for a total of $70.0 million[76] Tax and Regulatory Matters - The effective income tax rate for the three months ended March 31, 2023, includes estimates for foreign income inclusions such as global intangible low-taxed income (GILTI)[59] - The company has a valuation allowance against deferred tax assets in certain foreign jurisdictions with an overall net operating loss as of March 31, 2023[59] - The Company does not expect a material impact on its financial statements from the finalized U.S. tax regulations effective March 7, 2022[135] Membership and Commissions - As of March 31, 2023, the company had 38,330 active members, a decrease from 38,660 at December 31, 2022, and 44,490 at March 31, 2022[90] - Member commissions represented 42% of net sales in the first three months of 2023, compared to 41% in the same period of 2022[107]

Membership and Revenue - The total number of active members decreased from 45,760 in 2021 to 38,660 in 2022, representing a decline of approximately 15.4%[33] - Approximately 78% of the company's revenue was generated in Hong Kong, with substantially all derived from sales to members in China[79] - Net sales for the year ended December 31, 2022, were $49,134,000, a decrease of 18.2% from $60,005,000 in 2021[247] - The company experienced a 16% decrease in active members at the end of 2022 compared to the end of 2021, contributing to a decline in year-over-year sales[104] - The company reported a net income of $313,000 for 2022, a decline of 71.1% from $1,085,000 in 2021[247] Operational Challenges - Revenue from Hong Kong, primarily derived from product sales delivered to members in China, has been significantly impacted by regulatory changes and market conditions[35] - Recent disruptions, including the COVID-19 pandemic and political developments in Hong Kong, have adversely affected business operations and market performance[35] - The ongoing 100-day campaign in China is expected to negatively impact the company's business in the near term but may benefit the market in the long term by eliminating substandard products[68] - The business environment in China remains challenging due to regulatory scrutiny and negative social media sentiment towards health product companies[68] - The company has ceased conducting member meetings and events in Hong Kong due to political unrest and COVID-19, negatively affecting marketing and distribution efforts[82] Regulatory Environment - The regulatory environment in China imposes restrictions on multi-level compensation and member recruitment activities, impacting the company's operations in that market[56] - The company is subject to extensive governmental regulations regarding product marketing and safety, including compliance with FDA and FTC requirements in the U.S.[59] - The product registration process in China can take from nine months to over 18 months, affecting the launch of new products in that market[62] - The company is subject to various regulatory issues, including foreign exchange control and scrutiny from government authorities regarding compliance with local laws[69] - The company is subject to evolving privacy and data protection laws, including the Data Security Law enacted in China in September 2021, which imposes significant compliance obligations[130] Financial Performance - Gross profit for 2022 was $36,473,000, down 18.9% from $44,995,000 in the previous year[247] - Total operating expenses decreased to $36,743,000 in 2022, compared to $43,424,000 in 2021, reflecting a reduction of 15.4%[247] - Basic net income per common share for 2022 was $0.03, down from $0.10 in 2021[247] - Total assets decreased to $82,817,000 as of December 31, 2022, from $98,355,000 at the end of 2021, a reduction of 15.7%[245] - The company experienced a foreign currency translation adjustment loss of $514,000 in 2022, compared to a loss of $149,000 in 2021[250] Compensation and Member Engagement - The compensation plan allows members to earn income through commissions based on bonus volume points from product purchases made by their down-line members, with commissions paid weekly[45] - Members can earn commissions based on the accumulated bonus volume from product purchases, with specific requirements for eligibility, including potential nominal monthly purchases[46] - Compensation to members represented approximately 42% of net sales in 2022, which poses a risk to profitability if increased[110] - The company employs a binary compensation plan with unilevel features, allowing members to sponsor others across different countries, enhancing global reach[45] - The marketing strategy includes sponsoring promotional meetings and training events to educate members about products and marketing plans, fostering community engagement[34] Product and Supply Chain - The company sources products from various global suppliers, ensuring compliance with regulatory requirements and maintaining product quality[24] - The company continues to innovate by sourcing unique and proprietary products based on market trends and scientific findings, enhancing its product portfolio[22] - The introduction of new products is critical for member productivity; failure to do so may harm business results[93] - The company relies on a limited number of independent third parties for manufacturing, which poses risks related to supply chain disruptions[94] - At least 10% of total revenue is derived from Premium Noni Juice, Enhanced Essential Probiotics, and Triotein™ products, all sourced from a single supplier[89] Market Competition - The company faces competitive risks from larger multinational corporations and local operators in the network marketing industry[74] - The company competes with other direct selling organizations for member recruitment, which may affect its ability to attract and retain members[99] - The company faces significant competition from larger organizations with more resources and a wider array of products, impacting member recruitment and retention[91] - Political and economic risks in foreign markets may impede growth and profitability[95] - Trade tensions between the United States and China may adversely affect global economic conditions and the company's financial results[123] Technology and Data Security - The company utilizes a proprietary web-based system for order processing and has automated financial reporting through Oracle's E-Business Suite, improving operational efficiency[36] - The company has implemented technical and administrative safeguards to maintain the security of its information technology systems, but risks of data breaches and system disruptions remain[166] - The company relies on third-party vendors for hosting most of its systems and data, exposing it to risks related to disruptions or intrusions of those servers[170] - Any interruption in information technology systems could have a material adverse effect on the company's business and financial results[162] - The company is exposed to regulatory scrutiny and potential fines due to compliance with privacy and data protection laws, which could adversely affect its financial condition[169]

Natural Health Trends Corp. (NASDAQ:NHTC) Q4 2022 Earnings Conference Call February 8, 2023 11:30 AM ET Company Participants Michelle Glidewell – Senior Manager, NHT Global Corp Chris Sharng – President Scott Davidson – Senior Vice President and Chief Financial Officer Conference Call Participants Operator Greetings. Welcome to the Natural Health Trends Corp. Fourth Quarter 2022 Earnings Conference Call. At this time all participants are in a listen-only mode. [Operator Instructions] I will now turn the con ...

Natural Health Trends Corp. (NASDAQ:NHTC) Q3 2022 Earnings Conference Call November 2, 2022 11:30 AM ET Company Participants Michelle Glidewell - Senior Manager, NHT Global Corp Chris Sharng - President and Director Scott Davidson - Senior VP and Chief Financial Officer Operator Greetings, and welcome to the Natural Health Trends Corp. Third Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Michelle ...