Mannatech(US:MTEX)2024-11-12 21:31Financial Performance - Net sales for Q3 2024 were $31.7 million, a decrease of $0.9 million or 2.5% compared to Q3 2023[2] - Net sales for Q3 2024 were $31.725 million, a decrease of 2.5% from $32.553 million in Q3 2023[9] - For the nine months ended September 30, 2024, net sales were $88.858 million, down 10.5% from $99.261 million in the same period of 2023[9] - Constant dollar net sales for Q3 2024 were $32.2 million, reflecting a decrease of 1.2% compared to Q3 2023[11] - The translation adjustment for nine months ended September 30, 2024, resulted in a non-GAAP measure of constant dollar net sales of $90.8 million, down 8.6% from the prior year[12] Profitability - Gross profit margin decreased to 74.5% in Q3 2024 from 79.6% in Q3 2023, attributed to increased freight costs and sales promotions[2] - Gross profit for Q3 2024 was $23.620 million, down 8.9% from $25.928 million in Q3 2023[9] - The gross profit for the nine months ended September 30, 2024, was $68.095 million, a decrease of 12.9% from $78.219 million in 2023[9] - Income from operations increased to $0.9 million in Q3 2024, compared to $0.2 million in the same period last year[2] - The income from operations for the nine months ended September 30, 2024, was $565,000, compared to a loss of $69,000 in the same period of 2023[9] - The company experienced a significant increase in income from operations of 400.0% in Q3 2024 when adjusted for constant dollars[11] Expenses - Commission expenses decreased by 2.0% to $12.2 million in Q3 2024, while commissions as a percentage of net sales increased to 38.3%[2] - Selling and administrative expenses decreased by 21.8% to $9.8 million in Q3 2024, down from $12.6 million in Q3 2023[2] - Operating expenses decreased to $22.733 million in Q3 2024 from $25.756 million in Q3 2023, a reduction of 11.8%[9] Net Income/Loss - Net loss for Q3 2024 was $0.3 million, or $0.17 per diluted share, compared to net income of $18,000, or $0.01 per diluted share in Q3 2023[2] - The company reported a net loss of $328,000 in Q3 2024 compared to a net income of $18,000 in Q3 2023[9] Cash Position - Cash and cash equivalents increased by 57.2% to $12.2 million as of September 30, 2024, from $7.7 million at the end of 2023[2] - Foreign exchange effects decreased the company's cash position by $0.6 million in the nine months ended September 30, 2024, compared to a $2.3 million effect in the same period in 2023[2] Customer Base - The number of independent associates and preferred customers decreased to approximately 136,000, down 28.1% from 146,000 in Q3 2023[2] Future Outlook - The company anticipates continued economic difficulties for the remainder of 2024 but aims to grow revenue by expanding its sales associate team and customer base[3]