Earnings Labs

Mannatech, Incorporated (MTEX)

Q2 2017 Earnings Call· Wed, Aug 9, 2017

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Transcript

Operator

Operator

Greetings and welcome to the Mannatech, Incorporated Second Quarter 2017 Earnings Conference Call. At this time, all participants are in a listen only mode, as a reminder, this conference is being recorded. Now, I would 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 second quarter 2017 earnings call. Today, you will hear from both me and Mannatech’s President and Chief Executive Officer, Al Bala. Before we 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, expects, potential, should, could, would, anticipate, estimate, project, predict, hope, feel and plan or other similar words or the negative of such terminology. 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 to results presented in accordance with GAAP, I will discuss a non-GAAP financial measure, constant dollar net sales, which is sales that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into U.S. dollars. I believe that this non-GAAP financial measure provides useful information to investors as it is an indicator of the strength and the performance of our ongoing business operations. This non-GAAP financial measure should not be considered an exclusive alternative to accompanying GAAP financial measures. A reconciliation of this non-GAAP financial measure to the most directly comparable GAAP measure is available on our recently filed 10-Q under the heading Non-GAAP Financial Measures. At this time, I will make a few comments concerning our second quarter 2017 operating results. Net income was $1.8 million or $0.65 per diluted share for the second quarter 2017 as compared to a net loss of $1.3 million or $0.49 per diluted share…

Al Bala

Operator

Thank you, David and hello everyone. Thank you for joining us on our second quarter earning call for 2017. I am Mannatech’s CEO and President and I would like to discuss the company’s second quarter of 2017. We believe the second quarter results, represents a very positive step for Mannatech and demonstrates our commitment to shareholder value. While our overall revenues were down slightly from last year, we exuded strong institutional control that managed costs helping to create a positive profit margin for the second quarter. To this we streamlined operations in a number of regions and adopted business practices to ensure cost management was front and center. I'm very pleased with the quarter's results because while we continue to invest in the companies and ramp up major elements of the new Mannatech we were still able to generate a profit and provide positive results to our shareholders. We were encouraged by the development during our second quarter, starting with our MannaFest event in April which we held for the first time outside of Texas and Las Vegas, Nevada where we assembled thousands of independent associates from around the world and also where we launched two new products. GinMAX, an advanced ginseng product and GlycoCafe, a nutrition pack coffee. During the three-day event, we sold more than $3 million worth of products helping to centre stage for global release of these two new products. The new products GinMAX and GlycoCafe have also been now released in the U.S. and Korea and we're especially pleased with the popularity with our Korean customers and associates which is currently our biggest market. GlycoCafe is building momentum as an impactful consumer friendly product easy to share, easy to taste that comes at a very competitive cost. We are excited about the future prospects for…