NHTC - Earnings call transcript Q2 2022 | Natural Health Trends Corp.

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Operator

Greetings, and welcome to Natural Health Trends Corp Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Kim Orlando with ADDO Investor Relations. Thank you.

begin. may You

Kim Orlando

welcome earnings and Health second Trends' Thank call. to XXXX conference quarter you, Natural

today's During version be and may of was President are call, Reform results defined today's be the financial there approximately the that Act the Health of I'd the relating in like call of for results, the future of should results Instructions company's of live to XXXX. section found company materially website those set at Eastern At including be corporate from differ such over and filings found performance could factors, at Securities which naturalhealthtrendscorp.com. conference call that noted of Private can the call Sharng, anticipated in will company's the forward-looking can It release, Actual as press Investors to archived forward-looking this issued in on the Time. certain the Exchange statements today's achievements those be Chris through the also statements Natural to with Litigation be statements time, Securities webcast the a.m. or made X:XX Commission. result in forth Trends. turn accessing

Chris Sharng

as Senior with to social increase we year-over-year recognize attributed second event sales promotional strongly Thank as a prior incentive recognized our which an disruptions hard that quarter especially we restrictions, initial responded. of members President and us that event is XXXX $XX.X challenges, quarter activities. can multiple the of the and virtual excitement discuss We well late ago XXXX. second virtual to million a held these a given and regulations bottlenecks The since was and of our face Despite our continued better is live and and ever-changing new everyone over to implemented comparison million, financial our of China. XXXX. $XX.X training and we today admittedly quarter In increase well-attended incorporates you, challenging in was second appreciate ongoing as work from Chief business, product compared system to leadership able supply net the training difficult of XX% Officer. and in We quarter results. in-person first were revenue outbreak hold motivational year Macau the for events. our Collaborating and Vice and persisted June, the training, along the adapt held be in to chain our company-sponsored this significant Michelle, coronavirus to The our teams It and to member-led Davidson, replicate in other we social to engagement to first lockdowns Scott members. to greater leaders, quarter restrictions. major thanks that which generated Financial joining morning the in-person to continued With with energy COVID-related development support me a comes online

more to Turning held we China In our successful our to managed of market training to a European Hong outside product by Sweden. April business return growth markets event we in Kong, XXX our and fueled with attendees. in than

future markets markets, impacting topline bottom-line general business of detail. committed of driving to efforts our insights the advancements provide pleased management technology sales. global celebrated economic alignment sessions, our I’d Peru, many results we experience, call India, improved ongoing anniversary May fundamentals trainings, to joining profitability elements growth Despite the to the our our level support financial to of and In the we a sequential on members level our of to Davidson over virtual America, our performance product to local North the Mexico, Additionally, Japan CIS. and and activities strategy deliver and included in business with enhance through to second XXX to ongoing manage local growth quarter achieve continued and trips. user training, in are commemorate be designed to activities Scott Peru’s the summary, milestone. fifth due initiatives, in-person plus virtual CFO, to for turn like with to that, costs and financial downturn remain we incentive and education to to at With leadership and promotional self-initiatives development These coupled development session market key the greater discuss leader Scott? the new expansion. In

Scott Davidson

you, Total a of million to of with an China, compared the government along of million, and XXXX. our the quarter bans quarter $XX.X second the impacted in XXXX. strong The first compared measures, increase half of of a quarter second results for in spread $XX.X XX% revenue greater decrease in COVID-XX momentarily Chris. first XX% XXXX Thank control was the to of million $XX.X

As was the in designed held Chris greater The June and to throughout China quarter year-over-year was challenging busy revenue XXXX. the due of quarter calendar mentioned, sales and training increase activities revenue in due virtual new a event-intensive encourage to in event incentive of in decline in-person special to second sequential engagement. a primarily member

that measures Many will navigate continue financial more results through disruptive is impacted be pandemic, unpredictable. in environment potential this for operating continue As the restrictions and we given expect effect adversely remains to our still the continue to we fragile.

XXth decreased at base from XX,XXX last at from member active XXth, year. Our at June was and to XX,XXX XXst XX,XXX March X% X% June down

operating and revenue. as quarter total for year cost to of in were June relatively for XX.X% Commissions a $X level quarter The last the the reflects in to our fixed SG&A well of second expense million we cost fees. on major year from quarter. XXXX, as quarter from lower sales, event administrative decrease our a as card to prior a lower due professional second held decreased well increased the XX.X% impact expense a as fee from expenses. XX.X% Selling the decrease XX.X% in million revenues the credit $X.X of lower of administrative and in percent compared net quarter a costs event as general margin the Gross as profit to year ago. Turning prior in and

a the the tax or share of operating $XX,XXX $X.XX year. second quarter result, last to income for totaled for As quarter the the for second or XXXX. $XXX,XXX the the $XXX,XXX of share to was diluted diluted $X.XX Net quarter $XXX,XXX $XXX,XXX second compared quarter in in quarter quarter per income last income to $XXX,XXX per compared We in second recorded compared year. provision

to Net flow. cash million and $X.X million of provided cash by activities $XXX,XXX was equivalents used turn operating will activities our balance the down last quarter in the to quarter March I operating XX. second net cash at cash XX, year. and sheet million $XX.X in in at cash Now June compared from Total $XX.X were second

As announce will XX X, returning of am of August cash on pleased another Board Directors a be as August I to to of per quarterly capital to our top stockholders payable dividend XX. declared that remains which share, August record on stockholders $X.XX priority, of

environment. and hone our this tune fine efforts operating to continue complex navigating We while

now That this deliver back operator. I continuing forward growth performance quarter our turn revitalize improvement, we will the represents to the trend over to top completes and look and prepared financial in While to in remarks. a beyond. call improved line positive XXXX

Operator

Ladies and does participation. you conclude this Thank gentlemen, your today’s for teleconference.

wonderful You this and disconnect a time at may lines your have day.

Natural Health Trends (NHTC) 5 Aug 222022 Q2 Earnings call transcript