Natural Health Trends Corp (NHTC) Reports Q3 2023 Earnings: Cash Flows Improve by $1.4 Million
Natural Health Trends Corp (NASDAQ:NHTC) reports Q3 2023 earnings with cash flows from operations improving by $1.4 million.
The company declared a quarterly cash dividend of $0.20 per share.
Orders grew 3% at a constant exchange rate compared to Q3 2022, while year-to-date 2023 orders increased 8% compared to the prior year.
Signs of momentum are seen in several markets including Taiwan, Peru, North America, and Japan.
On November 1, 2023, Natural Health Trends Corp (NASDAQ:NHTC) released its financial results for the third quarter ending September 30, 2023. Despite the challenges of a stronger dollar and cautious consumer sentiment, the company managed to keep its total orders roughly flat.
Financial Highlights
The company's cash flows from operations improved by $1.4 million. A quarterly cash dividend of $0.20 per share was declared. Despite the reported decrease in revenue, which was largely due to changes in deferred revenue, orders grew 3% at a constant exchange rate compared to the third quarter of 2022. Year-to-date 2023 orders increased 8% compared to the prior year.
Management Commentary
Adapting to the current environment in which Chinese consumers are reluctant to spend or invest, we managed to generate orders on pace with those of last year. Importantly, our members remained responsive to our programs, demonstrating that our promotions, incentives, and high-quality product offerings continue to resonate," commented Chris Sharng, President of Natural Health Trends Corp.
Noteworthy to highlight are the signs of momentum extending to several of our other markets including Taiwan, Peru, North America, and Japan, each of which delivered strong performance during the quarter. Were hopeful that these signs of growth will continue supported by careful planning and execution to our strategies around digital enhancements, new product launches, geographic diversification, and superior member support," Sharng continued.
Balance Sheet and Cash Flow
As of September 30, 2023, the company had cash and cash equivalents of $58.4 million. The total current assets were $66.9 million, while total assets were $71.8 million. The total current liabilities were $20.7 million, with total liabilities amounting to $28.5 million. The total stockholders' equity was $43.3 million.
Income Statement
For the third quarter of 2023, the company reported net sales of $10.6 million, a decrease from $11.7 million in the same period in 2022. The gross profit was $7.9 million. The net income was $172,000, resulting in a net income per common share of $0.02.
Cash Flow Statement
The net cash used in operating activities for the nine months ended September 30, 2023, was $4.2 million. The net decrease in cash, cash equivalents, and restricted cash was $11.3 million. The cash, cash equivalents, and restricted cash at the end of the period were $58.4 million.
Explore the complete 8-K earnings release (here) from Natural Health Trends Corp for further details.
This article first appeared on GuruFocus.
