Natural Health Trends Corp (NASDAQ:NHTC) Q3 2021 Earnings Conference Call November 3, 2021 11:30 AM ET Company Participants Ariel Papermaster - IR Chris Sharng - President & CEO Timothy Davidson - CFO Conference Call Participants Operator Greetings, and welcome to the Natural Health Trends Corporation Third Quarter 2021 Earnings Conference Call. [Operator instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Ariel Papermaster. Thank you, Ariel. You may ...

Financial Performance - Net sales for the year ended December 31, 2020, were $62.071 million, a decrease of 20.1% from $77.614 million in 2019[227] - Gross profit for 2020 was $45.081 million, down from $57.510 million in 2019, reflecting a gross margin decline[227] - The company reported a net income of $843,000 for 2020, compared to a net loss of $5.611 million in 2019, marking a significant turnaround[227] - Comprehensive income for 2020 was $1.771 million, compared to a comprehensive loss of $5.625 million in 2019[229] - Net income for the year ended December 31, 2020, was $843,000, a significant improvement compared to a net loss of $5,611,000 in 2019[234] - Operating activities generated net cash of $1,885,000 in 2020, contrasting with a cash outflow of $18,638,000 in 2019[235] - The primary reporting segment generated net sales of $58.243 million in 2020, down from $73.693 million in 2019, reflecting a decline of approximately 21%[328] - Income from operations for the primary reporting segment was $9.277 million in 2020, slightly down from $9.339 million in 2019[328] - The Company recorded a total income from operations for reportable segments of $9.511 million in 2020, compared to $7.505 million in 2019, indicating an increase of approximately 27%[328] Assets and Liabilities - Total current assets decreased to $99.741 million in 2020 from $108.375 million in 2019, a decline of 7.5%[222] - Total liabilities decreased to $38.245 million in 2020 from $43.433 million in 2019, a reduction of 12.8%[223] - Stockholders' equity decreased to $67.697 million in 2020 from $75.064 million in 2019, a decline of 9.8%[225] - The company had cash and cash equivalents of $92.367 million as of December 31, 2020, down from $96.035 million in 2019[222] - Total cash, cash equivalents, and restricted cash decreased to $92,892,000 at the end of 2020 from $99,425,000 at the end of 2019[235] - Long-lived assets totaled $539,000 as of December 31, 2020, down from $735,000 in 2019, representing a decrease of approximately 27%[333] Expenses and Costs - Commissions expense decreased to $26.204 million in 2020 from $35.549 million in 2019, a reduction of 26.3%[227] - Depreciation and amortization expenses for 2020 were $410,000, compared to $387,000 in 2019[247] - The total lease cost for the year ended December 31, 2020, was $2,015 thousand, a decrease from $2,308 thousand in 2019[289] - Cash paid for operating lease liabilities was $1.6 million in 2020, down from $2.0 million in 2019[289] Dividends and Shareholder Returns - The company declared dividends of $0.80 per share in 2020, up from $0.64 per share in 2019, resulting in total dividends paid of $9,138,000[234] - The Company declared and paid cash dividends of $0.20 per common share during each quarter of 2020, totaling an aggregate of $9.1 million[308] - The stock repurchase program has $21.9 million remaining available for future purchases as of December 31, 2020[313] - The Company purchased 178,324 shares of common stock from the Broady Trust for an aggregate purchase price of $1.9 million as part of its stock repurchase program[323] Market and Operations - The company operates in multiple international markets, including the Americas, Greater China, Southeast Asia, and Europe, enhancing its market presence[237] - The Company generated approximately 79% of its revenue in Hong Kong in 2020, primarily from sales to members in China[258] - The Company has not implemented a direct sales model in China due to regulatory restrictions, impacting its business strategy[259] - The Company operates an e-commerce direct selling platform in Hong Kong, recognizing revenue from sales to both Hong Kong and Chinese members[259] - The Company continually evaluates its business in China and Hong Kong for compliance with applicable laws and regulations, which may impact its operations[260] Taxation - Cash paid for income taxes in 2020 was $(2,097,000), compared to a refund of $1,985,000 in 2019[235] - The income tax provision for 2020 was $647 thousand, significantly higher than the provision of $14 thousand in 2019[296] - The effective income tax rate for the year ended December 31, 2020 was influenced by the CARES Act, allowing the carryback of net operating losses[300] - The Company has no valuation allowance against its U.S. deferred tax assets as of December 31, 2020, indicating a likelihood of realizing tax benefits[301] Inventory and Returns - Inventories increased to $2,700,000 in 2020 from $5,820,000 in 2019, indicating a change in inventory management[235] - Sales returns were recorded at 1% and 2% of sales for 2020 and 2019, respectively[272] - The Company estimates and accrues a reserve for product returns based on historical return rates, which range from 1% to 10% of sales[272] - The decrease in deferred revenue for the year ended December 31, 2020, was primarily due to a decrease of $1.4 million in unshipped product orders and unredeemed product vouchers[274] Other Financial Metrics - The weighted-average number of common shares outstanding for basic earnings per share was 10.630 million in 2020, compared to 10.871 million in 2019[227] - Basic net income available to common stockholders was $843 million for the year ended December 31, 2020, compared to a loss of $5,611 million in 2019, resulting in a per share income of $0.08 versus a loss of $0.52[279] - The Company recognized royalties of $83,000 and $96,000 during 2020 and 2019, respectively, under a royalty agreement with Broady Health Sciences, L.L.C.[321] - The Company has U.S. state net operating loss carryforwards of $3.5 million, expiring in 2039, and foreign net operating loss carryforwards of approximately $2.8 million[302] - As of December 31, 2020, the Company reported net deferred tax assets of $515 million, a decrease from $1.837 billion in 2019[300]

Natural Health Trends Corp (NASDAQ:NHTC) Q4 2020 Earnings Conference Call February 10, 2021 11:30 AM ET Company Participants Kimberly Orlando - ADDO Investor Relations Chris Sharng - President, CEO & Director Timothy Davidson - SVP, CFO, Chief Compliance Officer & Secretary Conference Call Participants Operator Greetings, and welcome to the Natural Health Trends Corp. Fourth Quarter and Full Year 2020 Earnings Call. [Operator Instructions]. As a reminder, this conference is being recorded. I would now like ...

Natural Health Trends Corp. (NASDAQ:NHTC) Q3 2020 Earnings Conference Call November 4, 2020 11:20 AM ET Company Participants Kimberly Orlando - Managing Director, ADDO Investor Relations Chris Sharng - President Scott Davidson - Senior Vice President and Chief Financial Officer Disclaimer: *NEW* We are providing this transcript version in a raw, machine-assisted format and it is unaudited. Please reference the audio for any questions on the content. A standard transcript will be available later on the site ...

Securities registered pursuant to Section 12(b) of the Exchange Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, par value $0.001 per share NHTC The NASDAQ Stock Market LLC 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, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SEC ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2020 was $16.4 million, a decrease of 30% compared to $23.4 million in Q2 2019, primarily due to the COVID-19 pandemic's impact on operations [15] - Operating income was $183,000 compared to an operating loss of $4,000 in Q2 2019, indicating a return to profitability [18] - Net income totaled $34,000 or breakeven per diluted share, down from net income of $397,000 or $0.04 per diluted share in Q2 2019 [18] - Gross profit margin decreased to 70.6% from 76.9% in the prior year due to increased logistics costs and product promotions [16] - Selling, general and administrative expenses decreased by 35% to $4.3 million from $6.6 million a year ago [17] Business Line Data and Key Metrics Changes - The active member base decreased by 4% to 54,400 at June 30 from 56,500 at March 31, and down 31% from 78,300 at June 30 of the previous year [15] - Commission expenses as a percentage of total revenue declined to 43.4% from 48.7% in the prior year quarter due to proactive cost reduction efforts [16] Market Data and Key Metrics Changes - Economic activity in key markets, particularly Greater China, has begun to resume, with some restrictions on travel and gatherings being lifted [15] - Operations in Peru continued to be adversely impacted by COVID-19, although shipping into larger cities resumed in late Q1 [12] Company Strategy and Development Direction - The company is focused on diversifying operations into new and emerging markets, although progress has been delayed due to COVID-19 [11] - New product launches occurred in China, Peru, and India, indicating ongoing efforts to expand product offerings despite challenges [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the improvement of the macroeconomic situation in the second half of 2020 [13] - The company has successfully transitioned to a digital operation, allowing continued engagement with customers through online activities [9] - Management emphasized the importance of health and safety for members, employees, and customers as foundational to success [13] Other Important Information - The company maintained a strong liquidity position with total cash and cash equivalents at $93.2 million and zero debt [18] - A quarterly cash dividend of $0.20 per share was declared, reflecting confidence in the company's financial stability [19] Q&A Session Summary - No specific questions or answers were documented in the provided content, thus this section is not applicable.

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, 2020 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 ...