Earnings Labs

Mannatech, Incorporated (MTEX)

Q4 2013 Earnings Call· Wed, Mar 19, 2014

$4.59

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Transcript

Operator

Operator

Greetings, and welcome to the Mannatech Incorporated Fourth Quarter and Year End 2013 Earnings Conference Call. As a reminder, this conference is being recorded. Now, I would like to introduce our moderator for the call today, Mr. Mark Nicholls, Chief Financial Officer. Mr. Nicholls, you may begin, sir.

Mark Nicholls

Management

Thank you. Good morning, everyone. This is Mark Nicholls, and welcome to Mannatech's fourth quarter and year end 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 terminology 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 would like to make a few comments regarding the year end 2013. For the year ended December 31, 2013, we reported net income of 3.2 million or $1.18 per diluted share compared to a net loss of 1.4 million or $0.52 loss per diluted share for 2013. Net sales for 2013 increased by 4 million to 177.4 million as compared to 173.4 million for 2012. We have supplemented our financial results presented in accordance with generally accepted accounting principles in the United States or GAAP, and disclosed operating results that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into U.S. dollars including net sales, deferred revenue, gross profit and income from operations. We refer to these adjusted financial measures as constant dollar items, which are non-GAAP financial measures. We use these non-GAAP measures to provide investors with an additional perspective on trends. To exclude the impact of changes due to the…

Robert Sinnott

Management

Thank you, Mark. Good morning to Mannatech's investors, customers, associates and employees. Mannatech is continuing its long march forward. In the fourth quarter of 2013, we continued our year-over-year sales increases. Fourth quarter net sales for 2013 were $46.5 million, an increase of 9.9% compared to $42.3 million in the fourth quarter of 2012. Continuing our global sales growth has been one of the key goals that we have been driving towards with our global initiatives. Mannatech's current management team takes the long-term approach as being most beneficial for our shareholders, associates and employees. We value organic revenue growth and continually improving organizational efficiency to keep our business vibrant and healthy over the long-term. Sustainable sales growth combined with expense discipline is the chosen path forward for Mannatech. We plan to continue our growth through making wise investments in projects that have the most probability for success. In the fourth quarter of 2013 we launched Uth Skin Care Cream in the United States and Canada. The quality, benefits and positioning of this product were spot on with our customer's desires. New features of proprietary glyconutrient technology that is very much in line with Mannatech's core Ambrotose technology. The story around this product is fresh and new, yet the technology is well developed and familiar to our associate leaders. The pre-marketing and launch activities which started in the fourth quarter of 2013 generated an immediate [ground flow] (ph) of activity in many of our associate leaders, and resulted in strong incremental sales for these two North American test markets. During 2014, we plan to launch Uth Skin Care Cream in many of our major markets globally. We will apply the lessons learned during the launch of Uth Skin Care Cream in North America to optimize the experience for our independent and…

Operator

Operator

Thank you presenters, and thank you ladies and gentlemen. This does conclude today's call. Thank you for your participation, and have a wonderful day. Attendees, you may log off at this time.