Earnings call transcript Q3 2022

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Operator

Greetings, and welcome to the Natural Health Trends Corp.

Third Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Michelle Glidewell with Natural Health Trends Corp. Thank you, Michelle.

begin. may You

Michelle Glidewell

welcome Earnings and Health Third Trends Thank Call. to XXXX Conference Quarter you, Natural

from and could company's those such set During may are in anticipated call, the forward-looking Reform results defined today's Exchange there the certain Act statements of the performance or relating those in results, of the future of to XXXX. company Securities that including achievements Private through forward-looking Actual as with factors, Securities be statements the Litigation statements filings Commission. differ materially in the result forth made

It version approximately will Instructions found naturalhealthtrendscorp.com. should and X:XX the today's in of at company's also press on be webcast be at archived noted website can that conference which call be the today's can was results of issued corporate be a.m. financial call found the for release, time. section Investors Eastern the live accessing

the of to this to over Chris time, call Trends. President turn Sharng, Health like I'd At Natural

Chris Sharng

to us and me you, for quarter Davidson, is financial results. and Financial this our discuss Officer. our everyone third Scott Chief Thank morning today Vice With to President XXXX Michelle, thanks Senior joining

third quarter, ongoing measures restrictions, adversely customers at navigate But ours. hard work China, environment members and impacted results by unpredictable our COVID-related challenges social and beauty through, extended health, and and wellness mass must businesses the and continued lockdown products. sharing surveillance engaged as such were in testing, they present the consumer-facing In our for superior despite remain the

quarter of of of million, decrease second compared we XX% to quarter, revenue the For $XX.X generated the XXXX. a

system as as team positive put to and into effect gatherings achieve, our small the safely following virtual online signs outcome during full and we of are we While training meet well-structured hope encouraged the not are quarter. attend we conferences local cautiously by our engagement the

better training training, program development support product in an new this training members. of to leadership our and incorporates effort all member-led and business, engagement As motivational a company-sponsored the refresher, online and ongoing

training. incentive to We around Xiamen, have some were We title are, members in further Me] pleased of successfully XXX strengthen domestic and business. Me look their much part [Super future these events deserved where to activities an [Super members the took in of opportunity income products trip holding connect in in domestic to as an to and bonding forward team more with knowledge our hosted Journey],

opportunities. Outside customers of attracting is strategic Kong, Hong China and and events business product of a team to both new in-virtual development calendar our and in-person, lines supporting

Richmond, successful Plus X North Healthy California. Juice. at trainings celebrated Heights Canada; in we in Rowland an Center Noni were our spotlighting for locations attendance In our in XXX America, Metuchen, Premium Lifestyle event with Festival Jersey; more And than Mid-Autumn held in British New the Columbia and

runs we an in quarter, the sail During that qualification all-inclusive QX also cruise XXXX. March to and through the Bahamas launched set will

out all we and held an XXXX by response pleased having in XXX available we're members. Gothenburg, month, January tickets. this very by Sweden sold Last At we European our event event, European teed up event, in-person the wellness attended

cultures our experience world, the and and Around ready teams travel to again. new are locations

traveling to Baikal; During and in team quarter, Cana our Taiwan the Punta to Dominican incentive markets traveling members Russian trips, team to European to Lake the including: traveling Yilan. our embarked Peru several traveling Republic; Croatia; on our Zadar, team our

our retention. engagement strengthen with to teams. to local our training to teams ability their and connection business level designing travel sales We with at helps and drive the members, and product and help experiences initiatives committed remain rewarding Our a couple to peers with support members

be We to recently shareholder experience kicked alike. driver support the focus believe acquisition, for both and for digital and overall worldwide I'm enhance growth productivity improve will our off customer initiatives distributors and pleased shopping and customers future key to our member value. a this we announce online that onboarding

our to many lingering economic impacting factors presents markets strong. global challenges and our COVID-XX our business. regulations While of fundamentals We are believe

continued and performance growth, and expansion, customer run. digital areas new market to Our benefit the product improve innovation initiatives on of enhancement productivity in key us focus the long will

out We thank opportunity line to day our in and our members who want loyal others. NHT sharing incredible to product business build their day and work by with

committed life Our quality of truly health, dedicated are improving and of others. the members wellness to

discuss CFO, our With that, financial Scott? the to over greater like call to in our results I'd turn Scott to Davidson, detail.

Scott Davidson

second the the Thank to $XX.X XXXX $XX.X third XX% and revenue for in compared was million a quarter Total decrease XX% a XXXX. decrease to the you, quarter quarter of Chris. million of third million, of in $XX.X compared

in COVID-related in continue unpredictable. Chris We operating effect third measures for during ongoing as policies results adversely will the the stated, businesses challenges remain extended Zero impact financial environment results our such the And to impacted quarter present ours. China anticipate challenges COVID and of and consumer-facing XXXX. these our as As

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

of Commissions administrative supplemental XX.X% year revenue and expenses. from sales quarter fixed of prior decreased third XX.X% on as as the for fee percent of margin year to Turning in impact quarter net cost profit costs. well from in our total last incentive cost Gross to operating expense the to relatively due a in XX.X% to decreased a lower as of quarter the XX.X% the a level due third decrease of revenue. less

year and general quarter our the million $X.X year card Selling, lower credit a administrative $X.X prior decrease to from professional in were fees. the for The reflects million and compared quarter expenses SG&A ago.

was the last the recorded $XXX,XXX in We quarter the income of third As in last quarter operating $X,XXX year. for compared of the loss income benefit $XXX,XXX quarter to $XX,XXX a tax third to year. result, an quarter compared operating for

of quarter XXXX. $XXX,XXX quarter the third diluted per or breakeven Net $X.XX compared in or totaled income share diluted for $XX,XXX the share per third to

Total down million from quarter June million in compared to operating XX, $X.X million September quarter used at the sheet turn last million third Net were in to cash $XX.X our cash flow. I'll $XX.X cash XX. $X.X Now in third and was year. at the cash equivalents activities balance and

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

balance As well long of support cost in to and run highly we to we productivity the positioned performance financial improve variable strategies devise debt-free continue structure, performance and we our with in are believe and improve sheet to shareholder value. implement

I call operator. the the back over remarks. prepared our now turn completes to That will

Natural Health Trends (NHTC) 2 Nov 222022 Q3 Earnings call transcript