Earnings Labs

Mannatech, Incorporated (MTEX)

Q1 2013 Earnings Call· Tue, May 14, 2013

$4.59

-1.98%

Key Takeaways · AI generated
AI summary not yet generated for this transcript. Generation in progress for older transcripts; check back soon, or browse the full transcript below.

Same-Day

+16.81%

1 Week

+12.86%

1 Month

+9.30%

vs S&P

+10.54%

Transcript

Operator

Operator

Greetings. And welcome to the Mannatech Incorporated First Quarter 2013 Earnings Conference Call. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. Now, I’d like to introduce our moderator for the call today, Mr. Mark Nicholls, Chief Financial Officer. Mr. Nicholls, you may begin.

S. Mark Nicholls

Management

Thank you. Good morning, everyone. This is Mark Nicholls, and welcome to Mannatech’s first quarter 2013 earnings call. Today, you will hear from both me and Mannatech’s CEO and Chief Science Officer, Dr. Rob Sinnott. Before we begin the call, I will first read the Safe Harbor Statement. During this conference call, we may make forward-looking statements, which can involve future events or future financial performance. Forward-looking statements generally can be identified by the use of phrases or terminologies such as will, continue, may, believe, intend, expects, potential, should, and plan, or other similar words or the negative of such terminology. We caution listeners that such forward-looking statements are subject to certain events, risks, uncertainties, and other factors and speak only as of today. We also refer our listeners to review our SEC submissions. At this time, I’d like to make a few brief comments concerning our first quarter of 2013 operating results and our balance sheet at March 31, 2013. We are pleased to announce net income for the first quarter of 2013 at $644,000 or $0.24 a diluted share as compared to a net loss of $1.4 million or $0.53 per diluted share for the first quarter of 2012. Our operating income for the first quarter of 2013 is $655,000 as compared to an operating loss of $2.1 million for the first quarter of 2012. Operating expenses decreased by approximately $5 million as compared to the first quarter of 2012. This decrease is composed of $3.2 million decline due to our continued efforts to increase the efficiencies and reduce operational expenses and $1.8 million from the decrease in depreciation associated with the enterprise resource system, which was placed in service in April 2007 and fully depreciated by March 2012. During the first quarter of 2013, we accrued into…

Robert A. Sinnott

Management

Thank you, Mark. Good morning, everyone. Mannatech’s senior management team has worked together with unprecedented cooperation to craft and execute a strategy that has brought the Company back to profitable operation after several unprofitable years. We fulfilled our profitability commitment during the third and fourth quarters of 2012 and continued that profitability trend in the first quarter of 2013. All of our officers, general managers and corporate management are keenly aware of our financial situation and all areas of the company are proactively managing expenses as we implement our strategy to grow our top line revenue. We fully intend to remain profitable and increase our profitability for many years to come by seeking out and applying best practices to all areas of our business. Our experiences over the past years, both positive and negative, will be turned into improvements that will make Mannatech a world-class company. Recently Mannatech has bolstered our management expertise by the addition of an industry veteran, Mr. Roy Truett, as the Chief Operating Officer and President of International. We believe there are gains to be made in improving our global operations and realigning our international offices to all run efficiently and profitably. We will continue streamlining our global operations and adding appropriate management talent to drive our strategy forward. Mannatech is known for its caring culture and its high-quality innovative products. We have very good customer loyalty because of our strong mission and purpose, which generously rewards customers and independent distributors who champion our cause. I believe that we have virtually all of the building blocks for success in the direct selling industry. It is time to put all of our assets to their best use. From my viewpoint, I believe that during 2013 we will see a reinvigoration of our business. We will see a continuation of the strong recruiting and sales performance in global Asian communities. We will see our investment in Mexico and other recent expansion markets begin to bear fruit. And we will see a moderate, but measurable rekindling of our core business in North America, Europe, and Australia, New Zealand. So I am confident that as our company experiences more quarters of financial performance and have success in increasing global sales, the shareholders, independent associates and employees of Mannatech will all have significant upside benefit. Our goal is to unlock that full potential. So thank you for your continuing interest in Mannatech.

Operator

Operator

This concludes the Mannatech, Incorporated first quarter 2013 earnings conference call.