Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 21, 2016 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Entity Registrant Name | NATURAL HEALTH TRENDS CORP. | |
Entity Central Index Key | 912,061 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding (in shares) | 11,287,196 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 114,500 | $ 104,914 |
Accounts receivable | 98 | 57 |
Inventories, net | 14,842 | 10,455 |
Other current assets | 3,540 | 2,286 |
Total current assets | 132,980 | 117,712 |
Property and equipment, net | 1,297 | 894 |
Goodwill | 1,764 | 1,764 |
Restricted cash | 3,090 | 3,166 |
Other assets | 723 | 616 |
Total assets | 139,854 | 124,152 |
Current liabilities: | ||
Accounts payable | 3,114 | 2,862 |
Income taxes payable | 655 | 379 |
Accrued commissions | 18,620 | 19,634 |
Other accrued expenses | 18,443 | 16,703 |
Deferred revenue | 4,236 | 4,011 |
Deferred tax liability | 60 | 60 |
Amounts held in eWallets | 19,510 | 16,414 |
Other current liabilities | 1,543 | 1,510 |
Total current liabilities | 66,181 | 61,573 |
Long-term incentive | 4,945 | 5,770 |
Total liabilities | 71,126 | 67,343 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 50,000,000 shares authorized; 12,979,414 shares issued at September 30, 2016 and December 31, 2015 | 13 | 13 |
Additional paid-in capital | 86,564 | 85,963 |
Retained earnings (accumulated deficit) | 24,342 | (9,647) |
Accumulated other comprehensive loss | (302) | (101) |
Treasury stock, at cost; 1,692,218 and 840,202 shares at September 30, 2016 and December 31, 2015, respectively | (41,889) | (19,419) |
Total stockholders’ equity | 68,728 | 56,809 |
Total liabilities and stockholders’ equity | $ 139,854 | $ 124,152 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,979,414 | 12,979,414 |
Treasury stock, shares | 1,692,218 | 840,202 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 70,679 | $ 80,779 | $ 225,416 | $ 191,204 |
Cost of sales | 13,627 | 16,001 | 42,966 | 39,025 |
Gross profit | 57,052 | 64,778 | 182,450 | 152,179 |
Operating expenses: | ||||
Commissions expense | 30,578 | 40,036 | 103,547 | 93,443 |
Selling, general and administrative expenses (including stock-based compensation expense of $10 and $21 during the three months ended September 30, 2016 and 2015, respectively, and $94 and $56 during the nine months ended September 30, 2016 and 2015, respectively) | 11,170 | 9,867 | 34,505 | 24,571 |
Depreciation and amortization | 96 | 72 | 276 | 181 |
Total operating expenses | 41,844 | 49,975 | 138,328 | 118,195 |
Income from operations | 15,208 | 14,803 | 44,122 | 33,984 |
Other income (expense), net | 48 | (135) | 40 | (112) |
Income before income taxes | 15,256 | 14,668 | 44,162 | 33,872 |
Income tax provision | 2,699 | 137 | 8,124 | 330 |
Net income | $ 12,557 | $ 14,531 | $ 36,038 | $ 33,542 |
Income per common share: | ||||
Basic (in dollars per share) | $ 1.12 | $ 1.19 | $ 3.15 | $ 2.71 |
Diluted (in dollars per share) | $ 1.12 | $ 1.18 | $ 3.14 | $ 2.70 |
Weighted-average number of common shares outstanding: | ||||
Basic (in shares) | 11,209 | 12,239 | 11,437 | 12,364 |
Diluted (in shares) | 11,232 | 12,284 | 11,463 | 12,439 |
Cash dividends declared per share: | ||||
Common (in dollars per share) | $ 0.07 | $ 0.04 | $ 0.18 | $ 0.09 |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Stock-based compensation expense included in selling, general, and administrative expense | $ 10 | $ 21 | $ 94 | $ 56 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 12,557 | $ 14,531 | $ 36,038 | $ 33,542 |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustment | (54) | (118) | (329) | 35 |
Release of cumulative translation adjustment | 0 | 0 | 132 | (82) |
Net change in foreign currency translation adjustment | (54) | (118) | (197) | (47) |
Unrealized (losses) gains on available-for-sale securities | (11) | 0 | (4) | 2 |
Comprehensive income | $ 12,492 | $ 14,413 | $ 35,837 | $ 33,497 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 36,038 | $ 33,542 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 276 | 181 |
Stock-based compensation | 94 | 56 |
Cumulative translation adjustment realized in net income | 132 | (82) |
Changes in assets and liabilities: | ||
Accounts receivable | (36) | (217) |
Inventories, net | (4,382) | (2,904) |
Other current assets | (1,208) | (736) |
Other assets | (91) | (264) |
Accounts payable | 252 | 2,140 |
Income taxes payable | 278 | 190 |
Accrued commissions | (1,045) | 11,832 |
Other accrued expenses | 3,459 | 8,397 |
Deferred revenue | 222 | 1,844 |
Amounts held in eWallets | 3,098 | 11,354 |
Other current liabilities | 26 | 93 |
Long-term incentive | (825) | (229) |
Net cash provided by operating activities | 36,288 | 65,197 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment, net | (679) | (645) |
Increase in restricted cash | 0 | (3,028) |
Net cash used in investing activities | (679) | (3,673) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from exercise of warrants | 0 | 309 |
Repurchase of common stock | (23,704) | (11,079) |
Dividends paid | (2,049) | (1,111) |
Net cash used in financing activities | (25,753) | (11,881) |
Effect of exchange rates on cash and cash equivalents | (270) | 106 |
Net increase in cash and cash equivalents | 9,586 | 49,749 |
CASH AND CASH EQUIVALENTS, beginning of period | 104,914 | 44,816 |
CASH AND CASH EQUIVALENTS, end of period | 114,500 | 94,565 |
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: | ||
Conversion of Stock, Amount Converted | 7,994 | 152 |
Issuance of treasury stock | $ 1,741 | $ 666 |
NATURE OF OPERATIONS AND BASIS
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS AND BASIS OF PRESENTATION | NATURE OF OPERATIONS AND BASIS OF PRESENTATION Nature of Operations Natural Health Trends Corp. (the “Company”), a Delaware corporation, is an international direct-selling and e-commerce company headquartered in Rolling Hills Estates, California. Subsidiaries controlled by the Company sell personal care, wellness, and “quality of life” products under the “NHT Global” brand. In most markets, the Company sells its products to a network of members referred to the Company by other members. The Company’s wholly-owned subsidiaries have an active physical presence in the following markets: North America; Greater China, which consists of Hong Kong, Taiwan and China; South Korea; Singapore; Japan; and Europe. The Company also operates within certain Commonwealth of Independent States (Russia and Kazakhstan) through an engagement with a local service provider. Basis of Presentation |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. The most significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates associated with obsolete inventory, the fair value of goodwill, revenue recognition, as well as those used in the determination of liabilities related to sales returns, commissions and income taxes. Various assumptions and other factors prompt the determination of these significant estimates. The process of determining significant estimates is fact specific and takes into account historical experience and current and expected economic conditions. The actual results may differ materially and adversely from the Company’s estimates. To the extent that there are material differences between the estimates and actual results, future results of operations will be affected. Cash and Cash Equivalents As of September 30, 2016 , cash and cash equivalents include $5.8 million held in banks located within China subject to foreign currency controls. Additionally, as of September 30, 2016 , cash and cash equivalents include the Company’s investments in debt securities, comprising municipal notes and bonds and corporate debt, money market funds and time deposits. The Company considers all highly liquid investments with original maturities of three months or less when purchased and have insignificant interest rate risk to be cash equivalents. Debt securities classified as cash equivalents are required to be accounted for in accordance with ASC 320, Investments - Debt and Equity Securities . As such, the Company determined its investments in debt securities held at September 30, 2016 should be classified as available-for-sale and are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income in stockholders’ equity. The cost of debt securities is adjusted for amortization of premiums and discounts to maturity. This amortization is included in other income. Realized gains and losses, as well as interest income, are also included in other income. The fair values of securities are based on quoted market prices. Cash and cash equivalents at the end of each period were as follows (in thousands): September 30, 2016 December 31, 2015 Cash $ 57,130 $ 47,431 Cash equivalents 57,370 57,483 Total cash and cash equivalents $ 114,500 $ 104,914 Restricted Cash In June 2015, the Company funded a bank deposit account in the amount of CNY 20 million (USD 3.0 million at September 30, 2016 ) in anticipation of submitting a direct selling license application in China. Such deposit is required by Chinese laws to establish a consumer protection fund. Other Accrued Expenses Other accrued expenses at the end of each period were as follows (in thousands): September 30, 2016 December 31, 2015 Sales returns $ 1,215 $ 1,552 Employee-related 14,140 11,064 Warehousing, inventory-related and other 3,088 4,087 Total other accrued expenses $ 18,443 $ 16,703 Income Taxes The Company recognizes income taxes under the liability method of accounting for income taxes. Deferred income taxes are recognized for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be ultimately realized. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. Deferred taxes are not provided on the portion of undistributed earnings of subsidiaries outside of the United States when these earnings are considered permanently reinvested. As a result of capital return activities approved by the Board of Directors during the first quarter of 2016 and anticipated future capital return activities, the Company determined that a portion of its current undistributed foreign earnings are no longer deemed reinvested indefinitely by its non-U.S. subsidiaries. The Company repatriated $19.8 million to the U.S. during the three months ended March 31, 2016, part of which was offset by U.S. net operating losses. Accordingly, the deferred tax liability previously established for undistributed foreign earnings up to its existing U.S. net operating losses was reduced. The excess amount repatriated during the nine months ended September 30, 2016 was generated from current foreign earnings. The Company will continue to periodically reassess the needs of its foreign subsidiaries and update its indefinite reinvestment assertion as necessary. To the extent that additional foreign earnings are not deemed permanently reinvested, the Company expects to recognize additional income tax provision at the applicable U.S. corporate tax rate. The Company and its subsidiaries file income tax returns in the United States, various states, and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2012, and is no longer subject to state income tax examinations for years prior to 2011. No jurisdictions are currently examining any income tax returns of the Company or its subsidiaries. Fair Value of Financial Instruments The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate fair value because of their short maturities. The carrying amount of the noncurrent restricted cash approximates fair value since, absent the restrictions, the underlying assets would be included in cash and cash equivalents. The Company's cash equivalents are valued based on level 1 inputs which consist of quoted prices in active markets. Accounting standards permit companies, at their option, to choose to measure many financial instruments and certain other items at fair value. The Company has elected to not fair value existing eligible items. Available-for-sale investments included in cash equivalents at the end of each period were as follows (in thousands): September 30, 2016 December 31, 2015 Adjusted Cost Gross Unrealized Losses Fair Value Adjusted Cost Gross Unrealized Gains (Losses) Fair Value Municipal bonds and notes $ 36,785 $ (3 ) $ 36,782 $ 35,222 $ 2 $ 35,224 Corporate debt securities 7,035 (3 ) 7,032 5,029 (5 ) 5,024 Financial institution instruments 13,556 — 13,556 17,235 — 17,235 Total available-for-sale investments $ 57,376 $ (6 ) $ 57,370 $ 57,486 $ (3 ) $ 57,483 Financial institution instruments include instruments issued or managed by financial institutions such as money market fund deposits and time deposits. Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component for the first nine months of 2016 were as follows (in thousands): Foreign Currency Translation Adjustment Unrealized Losses on Available-For-Sale Investments Total Balance, December 31, 2015 $ (99 ) $ (2 ) $ (101 ) Other comprehensive loss (329 ) (4 ) (333 ) Amounts reclassified out of accumulated other comprehensive loss 132 — 132 Balance, September 30, 2016 $ (296 ) $ (6 ) $ (302 ) Revenue Recognition Product sales are recorded when the products are shipped and title passes to independent members. Product sales to members are made pursuant to a member agreement that provides for transfer of both title and risk of loss upon the Company’s delivery to the carrier that completes delivery to the members, which is commonly referred to as “F.O.B. Shipping Point.” The Company primarily receives payment by credit card at the time members place orders. Amounts received for unshipped product are recorded as deferred revenue. The Company’s sales arrangements do not contain right of inspection or customer acceptance provisions other than general rights of return. Actual product returns are recorded as a reduction to net sales. The Company estimates and accrues a reserve for product returns based on its return policies and historical experience. Enrollment package revenue, including any nonrefundable set-up fees, is deferred and recognized over the term of the arrangement, generally twelve months. Enrollment packages provide members access to both a personalized marketing website and a business management system. No upfront costs are deferred as the amount is nominal. Shipping charges billed to members are included in net sales. Costs associated with shipments are included in cost of sales. Event and training revenue is deferred and recognized as the event or training occurs. Various taxes on the sale of products and enrollment packages to members are collected by the Company as an agent and remitted to the respective taxing authority. These taxes are presented on a net basis and recorded as a liability until remitted to the respective taxing authority. Income Per Share Diluted income per share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. The dilutive effect of non-vested restricted stock and warrants is reflected by application of the treasury stock method. Under the treasury stock method, the amount of compensation cost for future service that the Company has not yet recognized and the amount of tax benefit that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. Warrants to purchase 88,087 shares of common stock were exercised in April 2015. The following tables illustrates the computation of basic and diluted income per share for the periods indicated (in thousands, except per share data): Three Months Ended September 30, 2016 2015 Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS: Net income available to common stockholders $ 12,557 11,209 $ 1.12 $ 14,531 12,239 $ 1.19 Effect of dilutive securities: Non-vested restricted stock — 23 — 45 Diluted EPS: Net income available to common stockholders plus assumed conversions $ 12,557 11,232 $ 1.12 $ 14,531 12,284 $ 1.18 Nine Months Ended September 30, 2016 2015 Income Shares Per Share Amount Income Shares Per Share Amount Basic EPS: Net income available to common stockholders $ 36,038 11,437 $ 3.15 $ 33,542 12,364 $ 2.71 Effect of dilutive securities: Warrants to purchase common stock — — — 27 Non-vested restricted stock — 26 — 48 Diluted EPS: Net income available to common stockholders plus assumed conversions $ 36,038 11,463 $ 3.14 $ 33,542 12,439 $ 2.70 For the nine months ended September 30, 2016, 42,506 shares of non-vested restricted stock were not included in the computation of diluted income per share as their effect would have been anti-dilutive. Recently Issued and Adopted Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting , that simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those annual years, and early adoption is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , that requires organizations that lease assets, referred to as “lessees”, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. ASU 2016-02 will also require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases and will include qualitative and quantitative requirements. The new standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those annual years, and early application is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. |
STOCK-BASED COMPMENSATION
STOCK-BASED COMPMENSATION | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPMENSATION | STOCK-BASED COMPENSATION Stock-based compensation expense totaled $10,000 and $21,000 for the three months ended September 30, 2016 and 2015 , respectively, and $94,000 and $56,000 for the nine months ended September 30, 2016 and 2015 , respectively. No tax benefits were attributed to the stock-based compensation because a valuation allowance was maintained for substantially all net deferred tax assets. During March 2016, the Company modified the vesting feature of an award granted to a director who decided to not stand for re-election at the Company’s 2016 annual meeting of stockholders. The modification of the award resulted in an additional $64,000 in stock-based compensation expense for the three months ended March 31, 2016. At the Company’s annual meeting of stockholders held on April 7, 2016, the Company’s stockholders approved the Natural Health Trends Corp. 2016 Equity Incentive Plan (the “2016 Plan”) to replace its 2007 Equity Incentive Plan. The 2016 Plan allows for the grant of various equity awards including incentive stock options, non-statutory options, stock, stock units stock appreciation rights and other similar equity-based awards to the Company’s employees, officers, non-employee directors, contractors, consultants and advisors of the Company. Up to 2,500,000 shares of the Company’s common stock (subject to adjustment under certain circumstances) may be issued pursuant to awards granted. On April 8, 2016, the Company initially granted 51,015 shares of restricted common stock under the 2016 Plan to certain employees for the purpose of further aligning their interest with those of its stockholders and settling fiscal 2015 performance incentives. The shares vest on a quarterly basis over three years and are subject to forfeiture in the event of the employee’s termination of service to the Company under specified circumstances. The following table summarizes the Company’s restricted stock activity under the 2016 Plan: Shares Wtd. Avg. Price at Date of Issuance Nonvested at December 31, 2015 — $ — Granted 51,015 34.13 Vested (8,509 ) 34.13 Nonvested at September 30, 2016 42,506 34.13 The following table summarizes the Company’s other restricted stock activity: Shares Wtd. Avg. Price at Date of Issuance Nonvested at December 31, 2015 44,712 $ 12.15 Granted — — Vested (16,773 ) 12.15 Nonvested at September 30, 2016 27,939 12.15 As of September 30, 2016 , total unrecognized stock-based compensation expense related to non-vested restricted stock was $49,000 , which is expected to be recognized over a weighted-average period of 1.3 years |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS’ EQUITY Dividends The following table summarizes the Company’s cash dividend activity for the nine months ended September 30, 2016 (in thousands, except per share data): Declaration Date Per Share Amount Record Date Payment Date July 19, 2016 $ 0.07 $ 787 August 16, 2016 August 26, 2016 April 21, 2016 $ 0.06 $ 686 May 10, 2016 May 20, 2016 March 1, 2016 $ 0.05 $ 576 March 16, 2016 March 24, 2016 $ 0.18 $ 2,049 Treasury Stock On January 12, 2016, the Board of Directors authorized an increase to the Company’s stock repurchase program first approved on July 28, 2015 from $15.0 million to $70.0 million . Repurchases are expected to be executed to the extent that the Company’s earnings and cash-on-hand allow, and will be made in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act. For all or a portion of the authorized repurchase amount, the Company may enter into one or more plans that are compliant with Rule 10b5-1 of the Exchange Act that are designed to facilitate these purchases. The stock repurchase program does not require the Company to acquire a specific number of shares, and may be suspended from time to time or discontinued. During February 2016, pursuant to the stock repurchase program, the Company authorized its broker to proceed with the purchase of shares of the Company’s common stock in the open market. During the nine months ended September 30, 2016 , the Company purchased a total of 903,031 shares of its common stock for an aggregate purchase price of $23.7 million , plus transaction costs. Pursuant to the Company’s stock repurchase program first approved on July 28, 2015, the Company purchased a total of 268,706 shares of its common stock for an aggregate purchase price of $10.0 million during the year ended December 31, 2015. As of September 30, 2016 , $32.0 million of the $70.0 million |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Consumer Indemnity As required by the Door-to-Door Sales Act in South Korea, the Company maintains insurance for consumer indemnity claims with a mutual aid cooperative by possessing a mutual aid contract with Mutual Aid Cooperative & Consumer (the “Cooperative”). The contract secures payment to members in the event that the Company is unable to provide refunds to members. Typically, requests for refunds are paid directly by the Company according to the Company’s normal Korean refund policy, which requires that refund requests be submitted within three months. Accordingly, the Company estimates and accrues a reserve for product returns based on this policy and its historical experience. Depending on the sales volume, the Company may be required to increase or decrease the amount of the contract. The maximum potential amount of future payments the Company could be required to make to address actual member claims under the contract is equivalent to three months of rolling sales. At September 30, 2016 , non-current other assets include KRW 223 million (USD $203,000 ) underlying the contract, which can be utilized by the Cooperative to fund any outstanding member claims. The Company believes that the likelihood of utilizing these funds to provide for members claims is remote. Securities Class Action In January 2016, two purported securities class action complaints were filed against the Company and its top executives. On March 29, 2016, the court consolidated the purported securities class actions, appointed two Lead Plaintiffs, Messrs. Dao and Juan, and appointed the Rosen Law Firm and Levi & Korsinsky LLP as co-Lead Counsel for the purported class in the consolidated action. Plaintiffs filed a consolidated complaint on April 29, 2016. The consolidated complaint purports to assert claims on behalf of certain of our stockholders under Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder against Natural Health Trends Corp., Chris T. Sharng, and Timothy S. Davidson, and to assert claims under Section 20(a) of the Securities Exchange Act of 1934 against Chris T. Sharng, Timothy S. Davidson, and George K. Broady. The consolidated complaint alleges, inter alia, that the Company made materially false and misleading statements regarding the legality of its business operations in China, including running an allegedly illegal multi-level marketing business. The consolidated complaint seeks an indeterminate amount of damages, plus interest and costs. The Company filed a motion to dismiss the consolidated complaint on June 15, 2016 and a reply in support of its motion to dismiss on August 22, 2016. The Court has not ruled on the Company’s motion to dismiss yet. The Company believes that these claims are without merit and intends to vigorously defend against the allegations in the consolidated complaint. Shareholder Derivative Claim In February 2016, a purported shareholder derivative complaint was filed in the Superior Court of the State of California, County of Los Angeles: Zhou v. Sharng . In March 2016, a purported shareholder derivative complaint was filed in the United States District Court for the Central District of California: Kleinfeldt v. Sharng (collectively the “Derivative Complaints”). The Derivative Complaints purport to assert claims for breach of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement and corporate waste against certain of the Company’s officers and directors. The Derivative Complaints also purport to assert fiduciary duty claims based on alleged insider selling and conspiring to enter into several stock repurchase agreements, which allegedly harmed the Company and its assets. The Derivative Complaints allege, inter alia, that the Company made materially false and misleading statements regarding the legality of its business operations in China, including running an allegedly illegal multi-level marketing business, and that certain officers and directors sold common stock on the basis of this allegedly material, adverse non-public information. The Derivative Complaints seek an indeterminate amount of damages, plus interest and costs, as well as various equitable remedies. The derivative cases have been stayed pending the resolution of the motion to dismiss in the securities class action, and the defendants have not yet filed a response. Nevertheless, the defendants believe that these claims are without merit and intend to vigorously defend against the allegations in these derivative actions. The consolidated class action and the Derivative Complaints, or others filed alleging similar facts, could result in monetary or other penalties that may materially affect the Company’s operating results and financial condition. Other Claims |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Product Royalties On April 29, 2015, the Company entered into a Royalty Agreement and License with Broady Health Sciences, L.L.C., a Texas limited liability company, (“BHS”) regarding the manufacture and sale of a product called Soothe ™. George K. Broady, a director of the Company and beneficial owner of more than 5% of its outstanding common stock, is owner of BHS. The Company began selling this product in the fourth quarter of 2012 with the permission of BHS. Under the agreement, the Company agreed to pay BHS a royalty of 2.5% of sales revenue in return for the right to manufacture (or have manufactured), market, import, export and sell this product worldwide. Royalties recognized for the three months ended September 30, 2016 and 2015 were $700 and $1,300 , respectively, and $2,700 and $5,200 for the nine months ended September 30, 2016 and 2015 , respectively. The Company is not required to purchase any product under the agreement, and the agreement may be terminated at any time on 120 days ’ notice. Otherwise, the agreement terminates March 31, 2020. In February 2013, the Company entered into a Royalty Agreement and License with BHS regarding the manufacture and sale of a product called ReStor™. Under the agreement, the Company agreed to pay BHS a royalty of 2.5% of sales revenue in return for the right to manufacture (or have manufactured), market, import, export and sell this product worldwide, with certain rights being exclusive outside the United States. On April 29, 2015, the Company and BHS amended the Royalty Agreement and License to change the royalty to a price per unit instead of 2.5% of sales revenue. Such provision was effective retroactively to January 1, 2015. Such royalties were $106,000 and $154,000 for the three months ended September 30, 2016 and 2015 , respectively, and $386,000 and $410,000 for the nine months ended September 30, 2016 and 2015 , respectively. The Company is not required to purchase any product under the agreement, and the agreement may be terminated at any time on 120 days ’ notice or, under certain circumstances, with no |
SUBSEQUENT EVENT
SUBSEQUENT EVENT | 9 Months Ended |
Sep. 30, 2016 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENT | SUBSEQUENT EVENT On October 23, 2016 , the Board of Directors declared a quarterly cash dividend of $0.08 and a special cash dividend of $0.35 on each share of common stock outstanding. Such dividends are payable on November 25, 2016 to stockholders of record on November 15, 2016 |
SUMMARY OF SIGNIFICANT ACCOUN15
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. |
Use of Estimates | The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. |
Cash and Cash Equivalents | Additionally, as of September 30, 2016 , cash and cash equivalents include the Company’s investments in debt securities, comprising municipal notes and bonds and corporate debt, money market funds and time deposits. The Company considers all highly liquid investments with original maturities of three months or less when purchased and have insignificant interest rate risk to be cash equivalents. Debt securities classified as cash equivalents are required to be accounted for in accordance with ASC 320, Investments - Debt and Equity Securities . As such, the Company determined its investments in debt securities held at September 30, 2016 |
Restricted Cash | In June 2015, the Company funded a bank deposit account in the amount of CNY 20 million (USD 3.0 million at September 30, 2016 |
Income Taxes | The Company recognizes income taxes under the liability method of accounting for income taxes. Deferred income taxes are recognized for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be ultimately realized. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. Deferred taxes are not provided on the portion of undistributed earnings of subsidiaries outside of the United States when these earnings are considered permanently reinvested. As a result of capital return activities approved by the Board of Directors during the first quarter of 2016 and anticipated future capital return activities, the Company determined that a portion of its current undistributed foreign earnings are no longer deemed reinvested indefinitely by its non-U.S. subsidiaries. The Company repatriated $19.8 million to the U.S. during the three months ended March 31, 2016, part of which was offset by U.S. net operating losses. Accordingly, the deferred tax liability previously established for undistributed foreign earnings up to its existing U.S. net operating losses was reduced. The excess amount repatriated during the nine months ended September 30, 2016 was generated from current foreign earnings. The Company will continue to periodically reassess the needs of its foreign subsidiaries and update its indefinite reinvestment assertion as necessary. To the extent that additional foreign earnings are not deemed permanently reinvested, the Company expects to recognize additional income tax provision at the applicable U.S. corporate tax rate. |
Fair Value of Financial Instruments | The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate fair value because of their short maturities. The carrying amount of the noncurrent restricted cash approximates fair value since, absent the restrictions, the underlying assets would be included in cash and cash equivalents. The Company's cash equivalents are valued based on level 1 inputs which consist of quoted prices in active markets. Accounting standards permit companies, at their option, to choose to measure many financial instruments and certain other items at fair value. The Company has elected to not fair value existing eligible items. |
Revenue Recognition | Product sales are recorded when the products are shipped and title passes to independent members. Product sales to members are made pursuant to a member agreement that provides for transfer of both title and risk of loss upon the Company’s delivery to the carrier that completes delivery to the members, which is commonly referred to as “F.O.B. Shipping Point.” The Company primarily receives payment by credit card at the time members place orders. Amounts received for unshipped product are recorded as deferred revenue. The Company’s sales arrangements do not contain right of inspection or customer acceptance provisions other than general rights of return. Actual product returns are recorded as a reduction to net sales. The Company estimates and accrues a reserve for product returns based on its return policies and historical experience. Enrollment package revenue, including any nonrefundable set-up fees, is deferred and recognized over the term of the arrangement, generally twelve months. Enrollment packages provide members access to both a personalized marketing website and a business management system. No upfront costs are deferred as the amount is nominal. Shipping charges billed to members are included in net sales. Costs associated with shipments are included in cost of sales. Event and training revenue is deferred and recognized as the event or training occurs. |
Income Per Share | Diluted income per share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. The dilutive effect of non-vested restricted stock and warrants is reflected by application of the treasury stock method. Under the treasury stock method, the amount of compensation cost for future service that the Company has not yet recognized and the amount of tax benefit that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. |
Recently Issued and Adopted Accounting Pronouncements | In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting , that simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The new standard will be effective for fiscal years beginning after December 15, 2016, including interim periods within those annual years, and early adoption is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, Leases , that requires organizations that lease assets, referred to as “lessees”, to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases with lease terms of more than 12 months. ASU 2016-02 will also require disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases and will include qualitative and quantitative requirements. The new standard will be effective for fiscal years beginning after December 15, 2018, including interim periods within those annual years, and early application is permitted. The Company is currently assessing the impact that this standard will have on its consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN16
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash and cash equivalents at the end of each period were as follows (in thousands): September 30, 2016 December 31, 2015 Cash $ 57,130 $ 47,431 Cash equivalents 57,370 57,483 Total cash and cash equivalents $ 114,500 $ 104,914 |
Schedule of Accrued Expenses | Other accrued expenses at the end of each period were as follows (in thousands): September 30, 2016 December 31, 2015 Sales returns $ 1,215 $ 1,552 Employee-related 14,140 11,064 Warehousing, inventory-related and other 3,088 4,087 Total other accrued expenses $ 18,443 $ 16,703 |
Available-for-sale Securities | Available-for-sale investments included in cash equivalents at the end of each period were as follows (in thousands): September 30, 2016 December 31, 2015 Adjusted Cost Gross Unrealized Losses Fair Value Adjusted Cost Gross Unrealized Gains (Losses) Fair Value Municipal bonds and notes $ 36,785 $ (3 ) $ 36,782 $ 35,222 $ 2 $ 35,224 Corporate debt securities 7,035 (3 ) 7,032 5,029 (5 ) 5,024 Financial institution instruments 13,556 — 13,556 17,235 — 17,235 Total available-for-sale investments $ 57,376 $ (6 ) $ 57,370 $ 57,486 $ (3 ) $ 57,483 |
Schedule of Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive loss by component for the first nine months of 2016 were as follows (in thousands): Foreign Currency Translation Adjustment Unrealized Losses on Available-For-Sale Investments Total Balance, December 31, 2015 $ (99 ) $ (2 ) $ (101 ) Other comprehensive loss (329 ) (4 ) (333 ) Amounts reclassified out of accumulated other comprehensive loss 132 — 132 Balance, September 30, 2016 $ (296 ) $ (6 ) $ (302 ) |
Schedule of Earnings Per Share, Basic and Diluted | The following tables illustrates the computation of basic and diluted income per share for the periods indicated (in thousands, except per share data): Three Months Ended September 30, 2016 2015 Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS: Net income available to common stockholders $ 12,557 11,209 $ 1.12 $ 14,531 12,239 $ 1.19 Effect of dilutive securities: Non-vested restricted stock — 23 — 45 Diluted EPS: Net income available to common stockholders plus assumed conversions $ 12,557 11,232 $ 1.12 $ 14,531 12,284 $ 1.18 Nine Months Ended September 30, 2016 2015 Income Shares Per Share Amount Income Shares Per Share Amount Basic EPS: Net income available to common stockholders $ 36,038 11,437 $ 3.15 $ 33,542 12,364 $ 2.71 Effect of dilutive securities: Warrants to purchase common stock — — — 27 Non-vested restricted stock — 26 — 48 Diluted EPS: Net income available to common stockholders plus assumed conversions $ 36,038 11,463 $ 3.14 $ 33,542 12,439 $ 2.70 |
STOCK-BASED COMPMENSATION (Tabl
STOCK-BASED COMPMENSATION (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Activity | The following table summarizes the Company’s other restricted stock activity: Shares Wtd. Avg. Price at Date of Issuance Nonvested at December 31, 2015 44,712 $ 12.15 Granted — — Vested (16,773 ) 12.15 Nonvested at September 30, 2016 27,939 12.15 Shares Wtd. Avg. Price at Date of Issuance Nonvested at December 31, 2015 — $ — Granted 51,015 34.13 Vested (8,509 ) 34.13 Nonvested at September 30, 2016 42,506 34.13 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of cash dividend activity | The following table summarizes the Company’s cash dividend activity for the nine months ended September 30, 2016 (in thousands, except per share data): Declaration Date Per Share Amount Record Date Payment Date July 19, 2016 $ 0.07 $ 787 August 16, 2016 August 26, 2016 April 21, 2016 $ 0.06 $ 686 May 10, 2016 May 20, 2016 March 1, 2016 $ 0.05 $ 576 March 16, 2016 March 24, 2016 $ 0.18 $ 2,049 |
SUMMARY OF SIGNIFICANT ACCOUN19
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NARRATIVE (Details) $ in Thousands, ¥ in Millions | 3 Months Ended | ||||||
Mar. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2015CNY (¥) | Apr. 30, 2015shares | Dec. 31, 2014USD ($) | |
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | $ 114,500 | $ 104,914 | $ 94,565 | $ 44,816 | |||
Repatriation of foreign earnings | $ 19,800 | ||||||
Warrants, number of securities called by warrants | shares | 88,087 | ||||||
Bank Deposit in Anticipation of Submitting Direct Selling License Application | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Restricted cash and cash equivalents | 3,000 | ¥ 20 | |||||
CHINA | |||||||
Cash and Cash Equivalents [Line Items] | |||||||
Cash and cash equivalents | $ 5,800 |
SUMMARY OF SIGNIFICANT ACCOUN20
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Thousands | 9 Months Ended | |||
Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Cash and Cash Equivalents [Line Items] | ||||
Document Period End Date | Sep. 30, 2016 | |||
Cash and cash equivalents | $ 114,500 | $ 104,914 | $ 94,565 | $ 44,816 |
Cash | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | 57,130 | 47,431 | ||
Cash Equivalents | ||||
Cash and Cash Equivalents [Line Items] | ||||
Cash and cash equivalents | $ 57,370 | $ 57,483 |
SUMMARY OF SIGNIFICANT ACCOUN21
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - OTHER ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Accounting Policies [Abstract] | ||
Document Period End Date | Sep. 30, 2016 | |
Sales returns | $ 1,215 | $ 1,552 |
Employee-related | 14,140 | 11,064 |
Warehousing, inventory-related and other | 3,088 | 4,087 |
Total other accrued expenses | $ 18,443 | $ 16,703 |
SUMMARY OF SIGNIFICANT ACCOUN22
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - AVAILABLE-FOR-SALE INVESTMENTS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Document Period End Date | Sep. 30, 2016 | |
Adjusted Cost | $ 57,376 | $ 57,486 |
Gross Unrealized Gains (Losses) | (6) | (3) |
Fair Value | 57,370 | 57,483 |
Municipal Bonds and Notes | ||
Debt Instrument [Line Items] | ||
Adjusted Cost | 36,785 | 35,222 |
Gross Unrealized Gains (Losses) | (3) | 2 |
Fair Value | 36,782 | 35,224 |
Corporate Debt Securities | ||
Debt Instrument [Line Items] | ||
Adjusted Cost | 7,035 | 5,029 |
Gross Unrealized Gains (Losses) | (3) | (5) |
Fair Value | 7,032 | 5,024 |
Financial Institution Instruments | ||
Debt Instrument [Line Items] | ||
Adjusted Cost | 13,556 | 17,235 |
Gross Unrealized Gains (Losses) | 0 | 0 |
Fair Value | $ 13,556 | $ 17,235 |
SUMMARY OF SIGNIFICANT ACCOUN23
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CHANGES IN ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2016USD ($) | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | $ 56,809 |
Ending balance | 68,728 |
AOCI Attributable to Parent | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (101) |
Other comprehensive loss | (333) |
Amounts reclassified out of accumulated other comprehensive loss | 132 |
Ending balance | (302) |
Accumulated Foreign Currency Adjustment Attributable to Parent | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (99) |
Other comprehensive loss | (329) |
Amounts reclassified out of accumulated other comprehensive loss | 132 |
Ending balance | (296) |
Accumulated Net Investment Gain (Loss) Attributable to Parent | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |
Beginning balance | (2) |
Other comprehensive loss | (4) |
Amounts reclassified out of accumulated other comprehensive loss | 0 |
Ending balance | $ (6) |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Accounting Policies [Abstract] | ||||
Document Period End Date | Sep. 30, 2016 | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 42,506 | |||
Net income available to common stockholders | $ 12,557 | $ 14,531 | $ 36,038 | $ 33,542 |
Net income allocated to common stockholders (in shares) | 11,209,000 | 12,239,000 | 11,437,000 | 12,364,000 |
Net income allocated to common stockholders (in dollars per share) | $ 1.12 | $ 1.19 | $ 3.15 | $ 2.71 |
Warrants to purchase common stock (in shares) | 0 | 27,000 | ||
Non-vested restricted stock (in shares) | 23,000 | 45,000 | 26,000 | 48,000 |
Net income allocated to common stockholders plus assumed conversions | $ 12,557 | $ 14,531 | $ 36,038 | $ 33,542 |
Net income allocated to common stockholders plus assumed conversions (in shares) | 11,232,000 | 12,284,000 | 11,463,000 | 12,439,000 |
Net income allocated to common stockholders plus assumed conversions (in dollars per share) | $ 1.12 | $ 1.18 | $ 3.14 | $ 2.70 |
STOCK-BASED COMPMENSATION - NAR
STOCK-BASED COMPMENSATION - NARRATIVE (Details) - USD ($) | Apr. 08, 2016 | Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Apr. 07, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 10,000 | $ 21,000 | $ 94,000 | $ 56,000 | |||
Tax benefit attributable to stock-based compensation expense | 0 | $ 0 | $ 0 | $ 0 | |||
Additional stock-based compensation expense | $ 64,000 | ||||||
Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 51,015 | 0 | |||||
Award vesting period (in years) | 3 years | ||||||
Share-based compensation expense not yet recognized | $ 49,000 | $ 49,000 | |||||
Recognition period for compensation costs not yet recognized (in years) | 1 year 3 months 18 days | ||||||
Equity Incentive Plan 2016 | Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized | 2,500,000 | ||||||
Equity Incentive Plan 2016 | Restricted Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted (in shares) | 51,015 |
STOCK-BASED COMPMENSATION - RES
STOCK-BASED COMPMENSATION - RESTRICTED STOCK ACTIVITY (Details) - Restricted Stock - $ / shares | Apr. 08, 2016 | Sep. 30, 2016 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested, beginning balance (in shares) | 44,712 | |
Granted (in shares) | 51,015 | 0 |
Vested (in shares) | (16,773) | |
Nonvested, ending balance (in shares) | 27,939 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Nonvested, beginning balance (in dollars per share) | $ 12.15 | |
Granted (in dollars per share) | 0 | |
Vested (in dollars per share) | 12.15 | |
Nonvested, ending balance (in dollars per share) | $ 12.15 | |
Equity Incentive Plan 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested, beginning balance (in shares) | 0 | |
Granted (in shares) | 51,015 | |
Vested (in shares) | (8,509) | |
Nonvested, ending balance (in shares) | 42,506 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Nonvested, beginning balance (in dollars per share) | $ 0 | |
Granted (in dollars per share) | 34.13 | |
Vested (in dollars per share) | 34.13 | |
Nonvested, ending balance (in dollars per share) | $ 34.13 |
STOCKHOLDERS' EQUITY - NARRATIV
STOCKHOLDERS' EQUITY - NARRATIVE (Detail) - USD ($) | Aug. 26, 2016 | May 20, 2016 | Mar. 24, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Jan. 12, 2016 | Jul. 28, 2015 |
Equity [Abstract] | |||||||
Dividends paid (in dollars per share) | $ 0.07 | $ 0.06 | $ 0.05 | $ 0.18 | |||
Dividends, cash | $ 787,000 | $ 686,000 | $ 576,000 | $ 2,049,000 | |||
Stock repurchase program, amount authorized | $ 70,000,000 | $ 15,000,000 | |||||
Treasury stock, shares acquired (in shares) | 903,031 | 268,706 | |||||
Treasury stock, value, acquired, cost method | $ 23,700,000 | $ 10,000,000 | |||||
Stock repurchase program, amounts available for future purchases | $ 32,000,000 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - NARRATIVE (Details) ₩ in Millions | 1 Months Ended | ||
Jan. 31, 2016complaint | Sep. 30, 2016USD ($) | Sep. 30, 2016KRW (₩) | |
Securities Class Action | |||
Loss Contingencies [Line Items] | |||
Number of complaints | 2 | ||
Korean Business Segment | Other Noncurrent Assets | |||
Loss Contingencies [Line Items] | |||
Distributor claims reserve | $ 203,000 | ₩ 223 |
RELATED PARTY TRANSACTIONS - NA
RELATED PARTY TRANSACTIONS - NARRATIVE (Detail) - Broady Health Sciences - USD ($) | Apr. 29, 2015 | Feb. 28, 2013 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Soothe | ||||||
Related Party Transaction [Line Items] | ||||||
Royalty rate | 2.50% | |||||
Royalty expense | $ 700 | $ 1,300 | $ 2,700 | $ 5,200 | ||
Number of days for termination notice | 120 days | |||||
ReStore | ||||||
Related Party Transaction [Line Items] | ||||||
Royalty rate | 2.50% | |||||
Royalty expense | $ 106,000 | $ 154,000 | $ 386,000 | $ 410,000 | ||
Number of days for termination notice | 120 days |
SUBSEQUENT EVENT - NARRATIVE (D
SUBSEQUENT EVENT - NARRATIVE (Details) - $ / shares | Oct. 23, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 |
Subsequent Event [Line Items] | |||||
Common stock, cash dividends declared (in dollars per share) | $ 0.07 | $ 0.04 | $ 0.18 | $ 0.09 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Common stock, cash dividends declared (in dollars per share) | $ 0.08 | ||||
CommonStockSpecialDividendsPerShareDeclared | $ 0.35 |