Earnings Labs

Mannatech, Incorporated (MTEX)

Q3 2016 Earnings Call· Wed, Nov 9, 2016

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Transcript

Operator

Operator

Greetings. And welcome to the Mannatech Incorporated Third Quarter 2016 Earnings conference call. At this time all participants are in a listen-only mode. As reminder, this conference is being recorded. Now I'd like to introduce our moderator for the call today, Mr. David Johnson, Chief Financial Officer. Mr. Johnson, you may begin.

David Johnson

Management

Thank you. Good morning everyone. This is David Johnson, and welcome to Mannatech's third quarter 2016 earnings call. Today, you will hear from both me and Mannatech's President and Chief Executive Officer, Al Bala. Before I begin the call, I will first read the Safe Harbor statement. During this conference call, we may make forward-looking statements which can involve future events or future financial performance. Forward-looking statements generally can be identified by the use of phrases or terminologies such as will, continue, may, believe, intend, expect, potential, should, could, would, anticipate, estimate, project, predict, hope, feel and plan, or other similar words or the negative of such terminologies. We caution listeners that such forward-looking statements are subject to certain events, risks, uncertainties and other factors, and speak only as of today. We also refer our listeners to review our SEC submissions. In addition, results presented in accordance with GAAP, I will discuss the non-GAAP financial measure in constant dollar sales, which is sales that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into the US dollars. I believe that this non-GAAP financial measure provides useful information to investors as an indicator of the strength and the performance of our ongoing business operations. This non-GAAP financial measure should not be considered an alternative to US GAAP measures. A reconciliation of these non-GAAP financial measure to net sales is available on our recently filed 10-Q. At this time, I will make a few comments concerning our third quarter of 2016 operating results. Net income was $1.3 million or $0.46 per diluted share for the third quarter of 2016, as compared to $0.1 million net income or $0.03 per diluted share for the third quarter of 2015. Our third quarter of 2016 net sales increased…

Al Bala

Management

Thank you, David. Hello everyone and thank you for joining us on our third quarter earnings call of 2016. I am Mannatech's CEO and Pres and I would like to discuss the company's third quarter of 2016. Overall, we are very pleased with our results for the third quarter of 2016. We're coming off a very strong second quarter where our global Mannafest event and Korea MVP events enable us to launch a new brand and new consumer friendly products. Our third quarter was a positive follow through on those launches and investments. The main take away in a good quarter is about developing a path to consistency, that is, while our second quarter seemed exceptional, as we saw the highest revenue numbers in seven quarters, we are endeavoring to have fewer big revenue swings quarter-to-quarter and create consistent revenue numbers that reflect a strengthening position in a market. Coming off such a positive second quarter, we are satisfied that our third quarter reflect this first step in our goal to create steady, reliable and consistent business results. In the third quarter, we continue to see the results of our planning, investing and efforts in creating a new Mannatech. We experienced an increase in net sales year-over-year, an increase of $4.2 million to $48.1 million, as compared to $43.9 million in the third quarter of last year. And while our net sales, was slightly down from last quarter from $48.8 million to $48.1 million, we are pleased with our third quarter net sales coming off the second quarter, which reflected a spike in net sales compared to several previous quarter. Through our planning product international expansion and field program, we believe our investments has taken the company to a consistent place, continued heavy investments in the company, as well as…

Operator

Operator

Operator Thank you for listening to Mannatech's third quarter 2016 earnings call. As a reminder, company information and filings can be found at the company’s investor relations website, ir.mannatech.com, or by reviewing SEC submissions. This concludes today’s call.