CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Thousands | 3 Months Ended
Mar. 31, 2010 | 12 Months Ended
Dec. 31, 2009 |
ASSETS | ||
Cash and cash equivalents | $14,709 | $17,367 |
Restricted cash | 1,287 | 1,288 |
Accounts receivable, net of allowance of $26 and $17 in 2010 and 2009, respectively | 453 | 664 |
Income tax receivable | 8,973 | 8,075 |
Inventories, net | 30,944 | 31,290 |
Prepaid expenses and other current assets | 3,644 | 3,139 |
Deferred tax assets | 2,762 | 2,662 |
Total current assets | 62,772 | 64,485 |
Property and equipment, net | 24,698 | 27,144 |
Construction in progress | 304 | 317 |
Long-term restricted cash | 6,159 | 7,201 |
Other assets | 2,348 | 2,503 |
Long-term deferred tax assets | 555 | 652 |
Total assets | 96,836 | 102,302 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Current portion of capital leases | 1,162 | 847 |
Accounts payable | 7,526 | 11,319 |
Accrued expenses | 13,591 | 14,231 |
Commissions and incentives payable | 11,934 | 10,624 |
Taxes payable | 2,160 | 2,577 |
Current deferred tax liability | 423 | 274 |
Deferred revenue | 2,325 | 2,807 |
Total current liabilities | 39,121 | 42,679 |
Capital leases, excluding current portion | 777 | 1,068 |
Long-term deferred tax liabilities | 3,070 | 3,923 |
Other long-term liabilities | 5,110 | 3,348 |
Total liabilities | 48,078 | 51,018 |
Commitments and contingencies | ||
Shareholders' equity | ||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $0.0001 par value, 99,000,000 shares authorized, 27,695,482 shares issued and 26,488,388 shares outstanding in 2010 and 27,687,882 shares issued and 26,480,788 shares outstanding in 2009 | 3 | 3 |
Additional paid-in capital | 41,672 | 41,442 |
Retained earnings | 22,962 | 25,743 |
Accumulated other comprehensive loss | (1,088) | (1,113) |
Less treasury stock, at cost, 1,207,094 shares in 2010 and 2009 | (14,791) | (14,791) |
Total shareholders' equity | 48,758 | 51,284 |
Total liabilities and shareholders' equity | $96,836 | $102,302 |
PARENTHETICAL DATA TO THE CONSO
PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $) | ||
In Thousands, except Share data | Mar. 31, 2010
| Dec. 31, 2009
|
ASSETS | ||
Allowance for Doubtful Accounts Receivable | $26 | $17 |
Shareholders' equity | ||
Preferred stock, par value | 0.01 | 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | 0.0001 | 0.0001 |
Common stock, shares authorized | 99,000,000 | 99,000,000 |
Common stock, shares issued | 27,695,482 | 27,687,882 |
Common stock, shares outstanding | 26,488,388 | 26,480,788 |
Treasury stock, shares | 1,207,094 | 1,207,094 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED (USD $) | ||
In Thousands, except Per Share data | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
Income Statement [Abstract] | ||
Net sales | $60,665 | $70,701 |
Cost of sales | 8,625 | 11,731 |
Commissions and incentives | 26,999 | 33,726 |
Total Cost of Sales | 35,624 | 45,457 |
Gross profit | 25,041 | 25,244 |
Operating expenses: | ||
Selling and administrative expenses | 16,471 | 18,215 |
Depreciation and amortization | 2,917 | 3,146 |
Other operating costs | 8,545 | 9,562 |
Total operating expenses | 27,933 | 30,923 |
Loss from operations | (2,892) | (5,679) |
Interest income (expense) | (29) | 74 |
Other income (expense), net | 140 | (1,418) |
Loss before income taxes | (2,781) | (7,023) |
(Provision) benefit for income taxes | 0 | 2,248 |
Net loss | ($2,781) | ($4,775) |
Loss per share: | ||
Basic | -0.11 | -0.18 |
Diluted | -0.11 | -0.18 |
Weighted-average common shares outstanding: | ||
Basic | 26,482 | 26,461 |
Diluted | 26,482 | 26,461 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS EQUITY AND COMPREHENSIVE INCOME (LOSS) - UNAUDITED (USD $) | ||||||
In Thousands | Common Stock Outstanding
| Additional paid in capital
| Retained Earnings
| Accumulated Other Comprehensive Income
| Treasury stock
| Total
|
Balance - beginning of period (in shares) at Dec. 31, 2009 | 26,481 | 1,207 | ||||
Balance - beginning of period at Dec. 31, 2009 | $3 | $41,442 | $25,743 | ($1,113) | ($14,791) | $51,284 |
Proceeds from stock options exercised | 21 | 21 | ||||
Proceeds from stock options exercised (in shares) | 7 | |||||
Charge related to stock based compensation | 209 | 209 | ||||
Components of comprehensive loss: | ||||||
Foreign currency translations | 25 | 25 | ||||
Net Loss | (2,781) | (2,781) | ||||
Total comprehensive loss | 0 | 0 | 0 | 0 | 0 | (2,756) |
Balance - end of period at Mar. 31, 2010 | $3 | $41,672 | $22,962 | ($1,088) | ($14,791) | $48,758 |
Balance - end of period (in shares) at Mar. 31, 2010 | 26,488 | 1,207 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED (USD $) | ||
In Thousands | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | ($2,781) | ($4,775) |
Adjustments to reconcile net loss to net cash used in operating ativities: | ||
Depreciation and amortization | 2,917 | 3,146 |
Provision for inventory losses | 101 | 250 |
Provision for doubtful accounts | 15 | (12) |
Loss on disposal of assets | 7 | 0 |
Accounting charge related to stock-based compensation expense | 209 | 139 |
Deferred income taxes | (709) | (53) |
Changes in operating assets and liabilities: | ||
Accounts receivable | 198 | 8 |
Income tax receivable | (893) | (2,164) |
Inventories | 347 | 628 |
Prepaid expenses and other current assets | (146) | (374) |
Other assets | 170 | 24 |
Accounts payable | (3,800) | 781 |
Accrued expenses | 1,104 | (2,916) |
Taxes payable | (445) | (868) |
Commissions and incentives payable | 1,276 | 2,664 |
Deferred revenue | (482) | (162) |
Net cash used in operating activities | (2,912) | (3,684) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (371) | (718) |
Change in restricted cash | 1,237 | (204) |
Net cash provided by (used in) investing activities | 866 | (922) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from stock options exercised | 21 | 0 |
Payment of cash dividends | 0 | 529 |
Repayment of capital lease obligations | 406 | 34 |
Net cash used in financing activities | (385) | (563) |
Effect of currency exchange rate changes on cash and cash equivalents | (227) | 625 |
Net decrease in cash and cash equivalents | (2,658) | (4,544) |
Cash and cash equivalents at the beginning of period | 17,367 | 30,945 |
Cash and cash equivalents at the end of period | 14,709 | 26,401 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Income taxes paid | 543 | 625 |
Interest paid on capital leases | $21 | $4 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
3 Months Ended
Mar. 31, 2010 | |
Notes To Financial Statements [Abstract] | |
Organization And Summary Of Significant Accounting Policies | NOTE 1: ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Mannatech, Incorporated (together with its subsidiaries, the Company), headquartered in Coppell, Texas, was incorporated in the state of Texas on November 4, 1993 and is listed on the NASDAQ Global Select Market under the symbol MTEX. The Company develops, markets, and sells high-quality, proprietary nutritional supplements, topical and skin care products, and weight-management products that are primarily sold to independent associates and members located in the United States, Canada, Australia, the United Kingdom, Japan, New Zealand, the Republic of Korea, Taiwan, Denmark, Germany, South Africa, Singapore, Austria, the Netherlands, Norway, and Sweden. Independent associates purchase the Companys products at published wholesale prices to either sell to retail customers or consume personally. Members purchase the Companys products at a discount from published retail prices primarily for personal consumption. The Company cannot distinguish its personal consumption sales from its other sales because it has no involvement in its products after delivery, other than usual and customary product warranties and returns. Only independent associates are eligible to earn commissions and incentives. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with instructions for Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the Companys consolidated financial statements and footnotes contained herein do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) to be considered complete financial statements. However, in the opinion of the Companys management, the accompanying unaudited consolidated financial statements and footnotes contain all adjustments, including normal recurring adjustments, considered necessary for a fair presentation of the Companys consolidated financial information as of, and for, the periods presented. The Company cautions that its consolidated results of operations for an interim period are not necessarily indicative of its consolidated results of operations to be expected for its fiscal year. The December 31, 2009 consolidated balance sheet was included in the audited consolidated financial statements in the Companys annual report on Form 10-K for the year ended December 31, 2009 and filed with the United States Securities and Exchange Commission on March 11, 2010 (the 2009 Annual Report), which includes all disclosures required by GAAP. Therefore, these unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2009 Annual Report. Principles of Consolidation The consolidated financial statements and footnotes include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the Companys consolida |
Organization | Mannatech, Incorporated (together with its subsidiaries, the Company), headquartered in Coppell, Texas, was incorporated in the state of Texas on November 4, 1993 and is listed on the NASDAQ Global Select Market under the symbol MTEX. The Company develops, markets, and sells high-quality, proprietary nutritional supplements, topical and skin care products, and weight-management products that are primarily sold to independent associates and members located in the United States, Canada, Australia, the United Kingdom, Japan, New Zealand, the Republic of Korea, Taiwan, Denmark, Germany, South Africa, Singapore, Austria, the Netherlands, Norway, and Sweden. Independent associates purchase the Companys products at published wholesale prices to either sell to retail customers or consume personally. Members purchase the Companys products at a discount from published retail prices primarily for personal consumption. The Company cannot distinguish its personal consumption sales from its other sales because it has no involvement in its products after delivery, other than usual and customary product warranties and returns. Only independent associates are eligible to earn commissions and incentives. The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with instructions for Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, the Companys consolidated financial statements and footnotes contained herein do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (GAAP) to be considered complete financial statements. However, in the opinion of the Companys management, the accompanying unaudited consolidated financial statements and footnotes contain all adjustments, including normal recurring adjustments, considered necessary for a fair presentation of the Companys consolidated financial information as of, and for, the periods presented. The Company cautions that its consolidated results of operations for an interim period are not necessarily indicative of its consolidated results of operations to be expected for its fiscal year. The December 31, 2009 consolidated balance sheet was included in the audited consolidated financial statements in the Companys annual report on Form 10-K for the year ended December 31, 2009 and filed with the United States Securities and Exchange Commission on March 11, 2010 (the 2009 Annual Report), which includes all disclosures required by GAAP. Therefore, these unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2009 Annual Report. |
Summary of Significant Accounting Policies | Principles of Consolidation The consolidated financial statements and footnotes include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the Companys consolidated financial statements in accordance with GAAP requires the use of estimates that affect the reported value of assets, liabilities, revenues and expenses. These estimates are based on historical experience and various other factors. The Company continually evaluates the information used to make these estimates as the business and economic environment changes. Historically, actual results have not varied materially from the Companys estimates and the Company does not currently anticipate a significant change in its assumptions related to these estimates. Actual results may differ from these estimates under different assumptions or conditions. The use of estimates is pervasive throughout the consolidated financial statements, but the accounting policies and estimates considered to be the most significant are described in this note to the consolidated financial statements,Organization and Summary of Significant Accounting Policies. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company includes in its cash and cash equivalents credit card receivables due from its credit card processor, as the cash proceeds from credit card receivables are generally received within 24 to 72 hours. As of March 31, 2010 and December 31, 2009, credit card receivables were $2.2 million and $2.8 million, respectively. Additionally, as of March31, 2010 and December 31, 2009, cash and cash equivalents held in bank accounts in foreign countries totaled $10.4 million and $10.2 million, respectively. Restricted Cash The Company is required to restrict cash for (i) direct selling insurance premiums and credit card sales in the Republic of Korea, (ii) reserve on credit card sales in the United States and Canada, and (iii) Australia building lease collateral. As of March 31, 2010 and December 31, 2009, our total restricted cash was $7.4 million and $8.5 million, respectively. The decrease in restricted cash was primarily related to the partial refund of direct selling insurance premiums in Korea. Accounts Receivable Accounts receivable are carried at their estimated collectible amounts. Receivables are created upon shipment of an order if the credit card payment is rejected or does not match the order total. As of March 31, 2010 and December 31, 2009, receivables consisted primarily of amounts due from members and independent associates. The Company periodically evaluates its receivables for collectability based on historical experience, recent account activities, and the length of time receivables are past due, and writes-off receivables when they become uncollectible. At March 31, 2010 and December 31, 2009, the Company held an allowance for doubtful accounts of less than $0.1 million. Inventories Inventories consist of raw materials, finished goods, and |
INVENTORIES
INVENTORIES | |
3 Months Ended
Mar. 31, 2010 | |
Notes To Financial Statements [Abstract] | |
Inventories | NOTE 2: INVENTORIES Inventories consist of raw materials and finished goods, including promotional materials. The Company provides an allowance for any slow-moving or obsolete inventories. Inventories at March 31, 2010 and December 31, 2009, consisted of the following (in thousands): March 31, 2010 December 31, 2009 Raw materials $ 9,999 $ 10,819 Finished goods 22,229 21,844 Inventory reserves for obsolescence (1,284 ) (1,373 ) $ 30,944 $ 31,290 |
INCOME TAXES
INCOME TAXES | |
3 Months Ended
Mar. 31, 2010 | |
Notes To Financial Statements [Abstract] | |
Income Taxes | NOTE 3: INCOME TAXES For the three-months ended March 31, 2010 and 2009, the Companys effective tax rate was 0% and 32%, respectively. For the three-months ended March 31, 2010 and 2009,the Companys effective income tax rate was determined based on the estimated annual effective incometax rate. The effective tax rate for the three-months ended March 31, 2010 was lower than what would have been expected if the federal statutory rate were applied to income before taxes. Items reducing the effective income tax rate included reductions due to the mix of income between tax jurisdictions, the change in the valuation allowances associated with certain deferred tax assets, and the change in reserves related to uncertain income tax positions. Items increasing the effective income tax rate included recognition of additional tax benefits in 2010 attributed to prior year and tax credit refund claims filed during the current quarter. |
LOSS PER SHARE
LOSS PER SHARE | |
3 Months Ended
Mar. 31, 2010 | |
Notes To Financial Statements [Abstract] | |
Loss Per Share | NOTE 4: LOSS PER SHARE Basic Earnings (Loss) Per Share (EPS) calculations are based on the weighted-average number of the Companys common shares outstanding during the period. Diluted EPS calculations are based on the calculated weighted-average number of common shares and dilutive common share equivalents outstanding during each period. The following data shows the amounts used in computing the Companys EPS and their effect on the Companys weighted-average number of common shares and dilutive common share equivalents for the three months ended March 31, 2010 and 2009. As of March 31, 2010, approximately 1.6 million shares of the Companys common stock subject to options were excluded from diluted EPS calculations using an average closing price of $3.32 per share, as their effect was antidilutive. As of March 31, 2009, 1.5 million of the Companys common stock subject to options were excluded from diluted EPS calculations using an average closing price of $3.14 per share, as their effect was antidilutive. The amounts below are rounded to the nearest thousands, except for per share amounts. For the three months ended March 31, 2010 2009 Loss (numerator) Shares (denominator) Per share amount Loss (numerator) Shares (denominator) Per share amount Basic EPS: Net loss available to common shareholders $ (2,781 ) 26,482 $ (0.11 ) $ (4,775 ) 26,461 $ (0.18 ) Effect of dilutive securities: Stock options Diluted EPS: Net loss available to common shareholders plus assumed conversions $ (2,781 ) 26,482 $ (0.11 ) $ (4,775 ) 26,461 $ (0.18 ) |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | |
3 Months Ended
Mar. 31, 2010 | |
Notes To Financial Statements [Abstract] | |
Stock-Based Compensation | NOTE 5: STOCK-BASED COMPENSATION The Company currently has one active stock-based compensation plan, which was approved by shareholders. The Company generally grants stock options to employees, consultants, and board members at the fair market value of its common stock, on the date of grant, with a term no greater than ten years. The stock options generally vest over two or three years. Shareholders who own 10% or more of the Companys outstanding stock are granted incentive stock options at an exercise price that may not be less than 110% of the fair market value of the Companys common stock on the date of grant and have a term no greater than five years. In February 2008, the Companys Board of Directors approved the Mannatech, Incorporated 2008 Stock Incentive Plan (the 2008 Plan), which reserved, for issuance of stock options and restricted stock to employees, board members, and consultants, up to 1,000,000 shares of common stock plus any shares reserved under the Companys then-existing, unexpired stock plan for which options had not yet been issued plus any shares underlying outstanding options under the then-existing stock option plan that terminate without having been exercised in full. The 2008 Plan was approved by the Companys shareholders at the 2008 Annual Shareholders Meeting held on June 18, 2008. As of March 31, 2010, the 2008 Plan had 301,819 stock options available for grant before the plan expires on February 20, 2018. The Company records stock-based compensation expense related to granting stock options in selling and administrative expenses. For the three months ended March 31, 2010 and 2009, the Company granted 136,500 and 125,000 stock options, respectively. The fair value of stock options granted during the three months ended March 31, 2010 was $2.03 per share. During the three months ended March 31, 2009 the fair value ranged from $1.24 to $1.64 per share. The Company recognized compensation expense as follows for the three months ended March 31 (in thousands): 2010 2009 Total gross compensation expense $ 209 $ 139 Total tax benefit associated with compensation expense 19 27 Total net compensation expense $ 190 $ 112 As of March 31, 2010, the Company expects to record compensation expense in the future as follows: Nine months ending December 31, 2010 Year ending December 31, 2011 2012 Total gross unrecognized compensation expense $ 348 $ 326 $ 52 Tax benefit associated with unrecognized compensation expense 45 40 1 Total net unrecognized compensation expense $ 303 $ 286 $ 51 |
LITIGATION
LITIGATION | |
3 Months Ended
Mar. 31, 2010 | |
Notes To Financial Statements [Abstract] | |
Litigation | NOTE 6: LITIGATION Patent Infringement Litigation Mannatech, Inc. v. Country Life, LLC, et al., Case No. 3:10-cv-00533-O, United States District Court, Northern District of Texas, Dallas Division On March 16, 2010, the Company filed a patent infringement lawsuit against Country Life, LLC; Country Life Manufacturing, LLC; EvenBetterNow, LLC; Micro Health Solutions, LLC; New Sun, Inc.; Oasis Advanced Wellness, LLC; Roex, Inc.; VDF FutureCeuticals, Inc.; and John Does 1-20, alleging the defendants infringed United States Patent Nos. 6,929,807, 7,157,431, 7,196,064, 7,199,104, and 7,202,220, all entitled Compositions of Plant Carbohydrates as Dietary Supplements, and seeking to stop their manufacture, offer, and sale of infringing glyconutritional dietary supplement products. All named defendants have been served with summons or are in the process of being served; three defendants have sought unopposed extensions of their answer deadlines; and two defendants have agreed to judgments against them for their infringement of the Patents-in-Suit.Specifically, VDF FutureCeuticals, Roex, and New Sun filed unopposed motions to extend their answer deadline; the Court granted their motions, and their answers are now due on April 26, May 7, and May 17, respectively. On April 8, 2010, Mannatech filed a Motion for Entry of Agreed Judgment against EvenBetterNow.On April 15, 2010, the Court granted the motion and entered judgment for Mannatech against EvenBetterNow, finding that EvenBetterNow infringed the 807, 431, and 220 Patents by offering for sale and selling, in the United States, the product named EvenBetterNow Glyconutrients.The Agreed Judgment enjoins EvenBetterNow, for the term of the Patents-in-Suit, from (a) making, using, offering to sell, or otherwise distributing within the United States, or importing into the United States, the infringing product or colorable imitations thereof (the Enjoined Products); (b) inducing infringement of the Patents-in-Suit by assisting others in making, using, offering to sell, selling, or otherwise distributing, within the United States, the Enjoined Products; and (c) supplying or causing to be supplied in or from the United States all or a substantial portion of the components of the Enjoined Products. On April 19, 2010, Mannatech filed a Motion for Entry of Agreed Judgment against Oasis Advanced Wellness, which proposes the same terms as found in the Agreed Judgment against EvenBetterNow, but with respect to 431, 104, and 220 Patents. Business Arbitration and Litigation Marinova Pty. Limited v. Mannatech, Incorporated Mannatech (International) Limited, Case No. 50-122-T-00635-09, International Centre for Dispute Resolution, a division of the American Arbitration Association On December 10, 2009, Marinova Pty. Limited (Marinova), a company organized and operating under the laws of Australia, filed a Notice of Arbitration and Statement of Claim with the International Centre for Dispute Resolution, which is a division of the American Arbitration Association, against Mannatech Incorporated and Mannatech (International) Limited (collectively, Mannatech).Marinovas claims stem from the parties April 2 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | |
3 Months Ended
Mar. 31, 2010 | |
Notes To Financial Statements [Abstract] | |
Recent Accounting Pronouncements | NOTE 7: RECENT ACCOUNTING PRONOUNCEMENTS In October 2009, the FASB issued Accounting Standards Update No.2009-13, Revenue RecognitionMultiple Deliverable Revenue Arrangements (ASU 2009-13). ASU 2009-13 updates the existing multiple-element revenue arrangements guidance currently included in FASB ASC 605-25. The revised guidance provides for two significant changes to the existing multiple element revenue arrangements guidance. The first change relates to the determination of when the individual deliverables included in a multiple-element arrangement may be treated as separate units of accounting. The second change modifies the manner in which the transaction consideration is allocated across the separately identified deliverables. The revised guidance also expands the disclosures required for multiple-element revenue arrangements. The revised multiple-element revenue arrangements guidance will be effective for the first annual reporting period beginning on or after June15, 2010. The adoption of ASU 2009-13 is not expected to have a material impact on the Companys financial position or results of operations. In May 2009, the FASB issued ASC Topic 855, Subsequent Events, which establishes general standards of accounting for disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. In February2010, the FASB issued amended guidance to Topic 855 which no longer requires that an SEC filer disclose the date through which subsequent events have been evaluated. The amended guidance did not change the requirement to evaluate subsequent events through the filing dates. The adoption of the new guidance did not have a material impact on the Companys consolidated financial statements and disclosures. In January2009, the Securities and Exchange Commission issued Release No.33-9002, Interactive Data to Improve Financial Reporting. The final rule requires companies to provide their financial statements and financial statement schedules to the Securities and Exchange Commission in interactive data format using the eXtensible Business Reporting Language (XBRL). The rule was adopted by the Securities and Exchange Commission to improve the ability of financial statement users to access and analyze financial data. The Securities and Exchange Commission adopted a phase-in schedule indicating when registrants must furnish interactive data. Under this schedule, the Company will be required to submit filings with financial statement information using XBRL commencing with our June30, 2011 quarterly report on Form 10-Q. We began furnishing financial information in XBRL format starting with our quarterly report on Form 10-Q for the period ended September 30, 2009. As an early XBRL adopter, the Company may choose to discontinue furnishing XBRL data in the future until the required compliance date of June 30, 2011. |
FAIR VALUE
FAIR VALUE | |
3 Months Ended
Mar. 31, 2010 | |
Notes To Financial Statements [Abstract] | |
Fair Value | NOTE 8: FAIR VALUE Fair Value Measurements and Disclosure Topic of the FASB ASC establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories: Level 1 Quoted unadjusted prices for identical instruments in active markets. Level 2 Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets. Level 3 Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company. The primary objective of the Companys investment activities is to preserve principal while maximizing yields without significantly increasing risk. The investment instruments held by the Company are money market funds and interest bearing deposits for which quoted market prices are readily available. The Company considers these highly liquid investments to be cash equivalents. These investments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The table below presents the recorded amount of financial assets measured at fair value (in thousands) on a recurring basis as of March 31, 2010. The Company does not have any material financial liabilities that were required to be measured at fair value on a recurring basis at March 31, 2010. Asset Level 1 Level 2 Level 3 Total Money Market Funds Fidelity, US $ 2,023 $ $ $ 2,023 Interest bearing deposits various banks, Korea 5,214 5,214 Total assets $ 7,237 $ $ $ 7,237 Amounts included in: Cash and cash equivalents $ 2,045 $ $ $ 2,045 Long-term restricted cash 5,192 5,192 Total $ 7,237 $ $ $ 7,237 |
SEGMENT INFORMATION
SEGMENT INFORMATION | |
3 Months Ended
Mar. 31, 2010 | |
Notes To Financial Statements [Abstract] | |
Segment Information | NOTE 9: SEGMENT INFORMATION The Company conducts its business as a single operating segment, consolidating all of its business units into a single reportable entity, as a seller of proprietary nutritional supplements, topical and skin care products, and weight-management products through its network marketing distribution channels operating in sixteen countries. Each of the Companys business units sells similar packs and products and possesses similar economic characteristics, such as selling prices and gross margins. In each country, the Company markets its products and pays commissions and incentives in similar market environments. The Companys management reviews its financial performance by country and analyzes consolidated revenues by packs and product sales. The Company sells its products through its independent associates and distributes its products through similar distribution channels in each country. No single independent associate has ever accounted for more than 10% of the Companys consolidated net sales. The Company operates in nine physical locations and sells products in sixteen different countries around the world. The nine physical locations are the United States, Canada, Switzerland, Australia, the United Kingdom, Japan, the Republic of Korea (South Korea), Taiwan, and South Africa. Each of the Companys physical locations services different geographic areas. The United States, Canada, Australia, United Kingdom and Japan offices provide administrative support to its local markets and act as meeting locations for independent associates. The South Africa location, when opened for use in late May 2010, will also provide administrative support to its local market and act as a meeting location for independent associates. The United States location processes orders for the United States, Canada, and South Africa. The Australian location processes orders for Australia, New Zealand, and Singapore. The United Kingdom location processes orders for the United Kingdom, Denmark, Germany, Austria, the Netherlands, Norway, and Sweden. The Japan, Republic of Korea, and Taiwan locations process orders for their local markets only. The Switzerland office was created to manage certain day-to-day business needs of certain international markets and coordinates our continued global expansion. Consolidated net sales shipped to customers in these locations, along with pack and product information for the three months ended March 31, 2010 and 2009 are as follows (in millions, except percentages): Country 2010 2009 United States $ 27.8 45.8 % $ 36.5 51.5 % Japan 8.7 14.3 % 10.9 15.4 % Republic of Korea 5.4 8.9 % 5.5 7.8 % Canada 4.4 7.2 % 5.3 7.5 % Australia 5.2 8.6 % 5.2 7.4 % South Africa 3.2 5.3 % 2.3 3.3 % Taiwan 2.2 3.6 % 1.6 2.3 % New Zealand 1.0 1.6 % 1.0 1.4 % Germany 0.6 1.0 % 0.9 1.3 % United Kingdom 0.6 1.0 % 0.8 1.1 % Denmark 0.2 0.3 % 0.4 0.6 % Singapore 0.6 1.0 % 0.3 0.4 % Austria(1) 0.3 0.5 % |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | |
3 Months Ended
Mar. 31, 2010 | |
Notes To Financial Statements [Abstract] | |
Subsequent Events | NOTE 10: SUBSEQUENT EVENT In April 2010, the Company received a Federal income tax refund of $8.1 million. As of March 31, 2010, the Company recorded the anticipated refund in the income tax receivable line item on its Consolidated Balance Sheet. |
Document Information
Document Information | |
3 Months Ended
Mar. 31, 2010 | |
Document Information [Text Block] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | 2010-03-31 |
Entity Information
Entity Information (USD $) | |||
3 Months Ended
Mar. 31, 2010 | Apr. 30, 2010
| Jun. 30, 2009
| |
Entity [Text Block] | |||
Entity Registrant Name | MANNATECH INC | ||
Entity Central Index Key | 0001056358 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | Yes | ||
Entity Current Reporting Status | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $51,972,297 | ||
Entity Common Stock, Shares Outstanding | 26,490,466 | ||
Document Fiscal Year Focus | 2,010 | ||
Document Fiscal Period Focus | Q1 |