NHT Global(NHTC) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $10,700,000, a 2% decrease compared to $11,000,000 in the first quarter of 2024, attributed to the timing of incentive calendars [5][8] - Gross profit margin increased slightly to 73.6% from 73.4% in the first quarter last year [9] - Net income for the first quarter was $122,000 or $0.01 per diluted share, compared to $188,000 or $0.02 per diluted share in the first quarter of 2024 [10] Business Line Data and Key Metrics Changes - Active member base decreased slightly to 30,180 at March 31 from 30,870 at December 31, down 5% from 31,620 at March [8] - Commissions expense as a percent of total revenue for the first quarter was 41.8% compared with 41% a year ago, primarily due to higher weekly commissions earned by members [10] Market Data and Key Metrics Changes - In China and Hong Kong, a Night City Roadshow was completed, marketing wellness products with expert insights, and new products in the Twin Slim weight management line received strong feedback [6] Company Strategy and Development Direction - The company is actively working to streamline its supply chain and bring manufacturing closer to primary markets in Asia to weather international trade uncertainties and improve long-term efficiency [7][11] - The opening of a new office in Bogota, Colombia, will serve as a central hub for customer services and showcasing brands and products [6] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need to assess the potential impact of tariffs on operations and respond with strategic actions to optimize the supply chain [11] - The focus remains on executing strategic initiatives and providing exceptional support to members [11] Other Important Information - Total cash, cash equivalents, and marketable securities were $41,900,000 at March 31, down from $43,900,000 at December 31, 2024, due to quarterly dividend payments [11] - A quarterly cash dividend of $0.20 per share was declared, payable on May 23 to stockholders of record as of May 13 [11] Q&A Session Summary - No specific questions or answers were recorded in the provided content.