Business
Mannatech Reports Third Quarter End 2022 Financial Results
FLOWER MOUND, Texas--(BUSINESS WIRE)-- Mannatech, Incorporated (NASDAQ: MTEX), a global health and wellness company committed to transforming lives to make a
About this update from Mannatech, Incorporated
[{"type":"text","content":" FLOWER MOUND, Texas--(BUSINESS WIRE)--\nMannatech, Incorporated (NASDAQ: MTEX), a global health and wellness company committed to transforming lives to make a better world, today announced financial results for its third quarter of 2022.\n\nThird Quarter End Results\n\nThird quarter net sales for 2022 were $35.5 million, a decrease of $3.9 million, or 10.0%, as compared to $39.4 million in the third quarter of 2021. Our net sales declined 1.3% on a constant dollar basis (see Non-GAAP Measures, below) as foreign exchange decreased GAAP net sales by $3.4 million, mostly due to the decline of the Korean Won and Japanese Yen.\n\nThird quarter operating income for 2022 was $1.4 million as compared to $3.3 million for the third quarter of 2021.\n\nNet income was $1.2 million, or $0.61 per diluted share, for the third quarter of 2022, as compared to net income of $2.9 million, or $1.44 per diluted share, for the third quarter of 2021.\n\nFor the three months ended September 30, 2022, overall selling and administrative expenses decreased by $0.5 million to $6.7 million, as compared to $7.2 million for the same period in 2021. The decrease in selling and administrative expenses consisted of a $0.7 million decrease in payroll costs, and a $0.1 million decrease in warehouse costs, which was partially offset by a $0.3 million increase in marketing costs.\n\nFor the three months ended September 30, 2022, other operating costs increased by $0.1 million to $5.1 million, as compared to $5.0 million for the same period in 2021. The increase in operating costs was primarily due to a $0.1 million increase in travel and entertainment.\n\nThe approximate number of new and continuing independent associate and preferred customer positions held by individuals in Mannatech’s network and associated with purchases of products as of September 30, 2022 and 2021 were approximately 150,000 and 166,000, respectively. Recruitment of new independent associates and preferred customers decreased by 23.0% to 19,273 in the third quarter of 2022 as compared to 25,036 in the third quarter of 2021.\n\nYear-to-date Third Quarter Results\n\nFor the nine months ended September 30, 2022, net sales were $102.9 million, a decrease of $17.4 million, or 14.5%, as compared to $120.3 million for the same period in 2021. Our net sales declined 8.2% on a constant dollar basis (se...