NHT Global(NHTC) - 2020 Q3 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for Q3 2020 was $14.1 million, a decrease of 17% compared to $17 million in Q3 2019, primarily due to the ongoing challenges from the COVID-19 pandemic [9] - The active member base decreased by 2% to 43,300 as of September 30, down 22% from 68,150 a year ago [9] - Net income was $635,000 or $0.06 per diluted share, compared to a net loss of $1.2 million or $0.12 per diluted share in the same quarter last year [10] Business Line Data and Key Metrics Changes - Revenue outside of Hong Kong increased by 10% over the prior quarter, with notable strength in Peru, Taiwan, Malaysia, and India [5] - The company achieved double-digit revenue growth in emerging markets despite the pandemic's adverse impact [8] Market Data and Key Metrics Changes - Order volume in Hong Kong and China remained under pressure, but there were signs of improving business conditions as the economy began to reopen [5] - The company saw a rebound in Peru, which was one of the most affected markets by the pandemic, exceeding first-quarter levels [7] Company Strategy and Development Direction - The company has adapted its marketing programs to overcome physical restrictions, including virtual training opportunities and smaller in-person events [6] - A preferred customer program has been launched in several markets, with plans for further expansion by the end of the year [7] - The company remains committed to supporting its members and prioritizing health and safety while aiming for profitable, sustainable growth [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the ongoing adverse impact of the pandemic but expressed optimism about members adapting to technology and the positive economic trends in many markets [9] - The company is hopeful about holding larger in-person member events in the summer of the following year [6] Other Important Information - Gross profit margin was 74.3%, consistent with the previous year, while selling, general, and administrative expenses decreased by 34% to $4.2 million [10] - The board declared a quarterly cash dividend of $0.20 per share, payable on November 27 [11] Q&A Session Summary - No specific questions or answers were provided in the transcript, as the call concluded without a Q&A segment [12]