Mannatech Inc. (MTEX, Financial) filed Quarterly Report for the period ended 2009-03-31.
Mannatech Inc is a wellness solution provider that sells its products through a global network-marketing system throughout the United States and the international markets of Canada Australia the United Kingdom Japan and New Zealand. Mannatech Inc. has a market cap of $119.9 million; its shares were traded at around $4.53 with and P/S ratio of 0.4. The dividend yield of Mannatech Inc. stocks is 1.8%. Mannatech Inc. had an annual average earning growth of 14.4% over the past 5 years.
We remain committed to adding value to our independent associates. In January 2009, we announced a new simplified offering, which features a $499 Premium/All-Star Pack, in North America and South Africa. This $499 Premium/All-Star Pack provides income opportunities for business builders seeking a second income stream along with our leading wellness products. Developed in response to current economic pressures, this more affordable pack allows independent sales associates to start their business building opportunity in the wellness industry at a lower cost while providing faster access to leadership qualification. The new $499 Premium/All-Star Pack has proven to be popular and is responsible for an improvement in domestic pack sales as well as recruiting, in the first quarter of 2009, as described in detail below.
Consolidated net sales for the three months ended March 31, 2009 decreased by $20.8 million, or 22.7%, to $70.7 million as compared to the same period in 2008. Domestic sales decreased by $16.0 million, while international sales decreased $4.8 million for the three months ended March 31, 2009 as compared to the same period in 2008. The overall decrease in net sales is a result of independent associate and member concerns about certain negative publicity as well as a weakened economy. Our recent expansion to South Africa partially offset the decrease by generating net sales of $2.3 million for the three months ended March 31, 2009. In the first quarter of 2009, as compared to the same period in 2008, all foreign currencies to which we are exposed appreciated against the U.S. dollar (USD), with the exception of the Japanese yen. This fluctuation in foreign currency exchange rates had an overall unfavorable impact on our net sales of approximately $5.1 million for the quarter ended March 31, 2009. The net sales impact is calculated as the difference between 1) the current period’s net sales in USD and 2) the current period’s net sales in local currencies converted to USD by applying average exchange rates for the quarter ended March 31, 2008.
Product sales for the three months ended March 31, 2009 decreased $18.4 million, or 25.4%, as compared to the same period in 2008. The decrease of $18.4 million was comprised of a decrease in existing product sales of $18.9 million, which was partially offset by a $0.5 million increase attributable to the introduction of new products, as set forth below. We believe the decrease in product sales was primarily related to the economic downturn and independent associate and
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Mannatech Inc is a wellness solution provider that sells its products through a global network-marketing system throughout the United States and the international markets of Canada Australia the United Kingdom Japan and New Zealand. Mannatech Inc. has a market cap of $119.9 million; its shares were traded at around $4.53 with and P/S ratio of 0.4. The dividend yield of Mannatech Inc. stocks is 1.8%. Mannatech Inc. had an annual average earning growth of 14.4% over the past 5 years.
Highlight of Business Operations:
In August 2008, our Board of Directors reduced the amount of our quarterly cash dividend to $0.02 per common share in response to lower sales and instability in the capital markets. The decrease represents a reduction of $0.07 per share from the dividend paid in the first and second quarters of 2008. Given the challenging outlook and the expectation of a slower recovery, our Board decided to keep quarterly cash dividends at the same level for the first quarter of 2009. Strong liquidity is an important factor in our on-going efforts to weather the current economic downturn and we believe this initiative has made an important contribution. See “Risk Factors—We are not required to pay dividends, and our Board of Directors could decide not to declare a dividend or could reduce the amount of the dividend at any time” in item 1A ofWe remain committed to adding value to our independent associates. In January 2009, we announced a new simplified offering, which features a $499 Premium/All-Star Pack, in North America and South Africa. This $499 Premium/All-Star Pack provides income opportunities for business builders seeking a second income stream along with our leading wellness products. Developed in response to current economic pressures, this more affordable pack allows independent sales associates to start their business building opportunity in the wellness industry at a lower cost while providing faster access to leadership qualification. The new $499 Premium/All-Star Pack has proven to be popular and is responsible for an improvement in domestic pack sales as well as recruiting, in the first quarter of 2009, as described in detail below.
Consolidated net sales for the three months ended March 31, 2009 decreased by $20.8 million, or 22.7%, to $70.7 million as compared to the same period in 2008. Domestic sales decreased by $16.0 million, while international sales decreased $4.8 million for the three months ended March 31, 2009 as compared to the same period in 2008. The overall decrease in net sales is a result of independent associate and member concerns about certain negative publicity as well as a weakened economy. Our recent expansion to South Africa partially offset the decrease by generating net sales of $2.3 million for the three months ended March 31, 2009. In the first quarter of 2009, as compared to the same period in 2008, all foreign currencies to which we are exposed appreciated against the U.S. dollar (USD), with the exception of the Japanese yen. This fluctuation in foreign currency exchange rates had an overall unfavorable impact on our net sales of approximately $5.1 million for the quarter ended March 31, 2009. The net sales impact is calculated as the difference between 1) the current period’s net sales in USD and 2) the current period’s net sales in local currencies converted to USD by applying average exchange rates for the quarter ended March 31, 2008.
Product sales for the three months ended March 31, 2009 decreased $18.4 million, or 25.4%, as compared to the same period in 2008. The decrease of $18.4 million was comprised of a decrease in existing product sales of $18.9 million, which was partially offset by a $0.5 million increase attributable to the introduction of new products, as set forth below. We believe the decrease in product sales was primarily related to the economic downturn and independent associate and
Read the The complete Report
