Earnings Labs

Mannatech, Incorporated (MTEX)

Q4 2015 Earnings Call· Wed, Mar 16, 2016

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Transcript

Operator

Operator

Greetings and welcome to the Mannatech Incorporated Fourth Quarter 2015 Earnings conference call. At this time, all participants are in listen-only mode. As a reminder, this conference is being recorded. Now I’d like to introduce our moderator for the call today, Mr. David Johnson, Chief Accounting Officer. Mr. Johnson, you may begin.

David Johnson

Management

Thank you. Good morning everyone. This is David Johnson, and welcome to Mannatech’s fourth quarter 2015 earnings call. Today, you will hear from both me and Mannatech’s President and Chief Executive Officer, Al Bala. 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, expect, potential, should and plan, or other similar words or the negative of such terminologies. 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 will make a few observations concerning our fourth quarter of 2015 operating results. Overall, Mannatech had a strong fourth quarter of 2015. Income from operations increased 7.7% to $2.8 million for the fourth quarter from $2.6 million in the same period of 2014. Net income was $1.5 million or $0.56 per diluted share for the fourth quarter of 2015 as compared to $1.9 million or $0.68 per diluted share for the fourth quarter of 2014. For 2015, net income was $5.8 million or $2.14 per diluted share as compared to net income of $6.5 million or $2.40 per diluted share for 2014. The fourth quarter of 2015 net sales increased $0.1 million or 0.2% to $45.3 million compared to net sales of $45.2 million for the fourth quarter of 2014. The net sales comparison for the quarter was affected by foreign exchange rates. On a constant dollar basis, net sales for fourth quarter 2015 increased by $2.7 million or 6% as compared to…

Alfredo Bala

Management

Thank you, David. Hello everyone and thank you for joining us on our fourth quarter earnings call of 2015. I am Mannatech’s CEO and President, and I would like to discuss Mannatech’s fourth quarter of 2015. My focus as I took on the role of CEO has been to grow the business by increasing our effort on field support systems and international expansion. With that being said, throughout 2014 and 2015, we have been investing in new initiatives that are designed to transform the company, which will enable us to best serve our customers and associates from around the world. Before I go into more details about the new investments Mannatech has been making, I’d like to say a few words on what continues to make Mannatech special. Specifically, Mannatech’s innovative glyconutritional technology which differentiates the company from all of its competitors in the nutritional supplement industry. In the last decade, Mannatech has spent tens of millions of dollars in research and development seeking ways to best leverage its glyconutritional technology. Mannatech’s effort includes intensive industry-standard testing and clinical research to provide its customers and associated with valid science backed product with strong health and wellness benefits. To date, Mannatech’s products have undergone 17 human clinical trials that have been published, 12 of which with double blind placebo controlled studies, the gold standard for product validation. Supporting its proprietary product worldwide is the extensive product patenting effort Mannatech uses to protect its products, value and uniqueness. In 2015, Mannatech reached 100 patents in major global markets, and as of today we have 118 patents on our nutritional technologies. Our strong intellectual property distinguishes Mannatech from most of its nutritional supplement industry competitors as few companies match Mannatech’s unique glyconutritional technology and have patent protection on their product technologies compared to…

Operator

Operator

Operator

Operator

Thank you for listening to Mannatech’s fourth quarter 2015 earnings call. As a reminder, company information and filings can be found at the company’s investor relations website, ir.mannatech.com, or by reviewing SEC submissions. This concludes today’s call.