Q1 2025 Natural Health Trends Corp Earnings Call

And when should require operator assistance. Please press star zero on your telephone keypad and as a reminder, this conference is being recorded it is now my pleasure to introduce to you Michelle guide well with natural health trends Corp. Thank you you may begin.

Speaker Change: Thank you and welcome to natural health trends first quarter 2025 earnings conference call.

Speaker Change: During today's call there may be statements made relating to the future results of the company that are forward looking statements as defined in the private Securities Litigation Reform Act of 1995.

Speaker Change: Actual results performance or achievements to differ materially from those anticipated in such forward looking statements through the result of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission.

Speaker Change: Greetings and welcome to the Natural Health Trends Corp first quarter 2025 earnings conference call.

Speaker Change: It should also be noted that today's call will be webcast live and can be found on the investors section of the company's corporate website at natural health trends Corp Dot com.

At this time, all participants are in a listen only mode.

Speaker Change: If anyone should require operator assistance, please press star zero on your telephone key. They call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the private security litigation reform act of 1995.

Speaker Change: Instructions for accessing the archived version of the conference call can be found in today's financial results press release, which was issued at approximately nine o'clock am eastern time.

Speaker Change: At this time I'd like to turn the call over to Chris yarn President of natural health trends.

Speaker Change: Actual results, performance, or achievements could differ materially from those anticipated and such forward-looking statements through the results of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission.

Speaker Change: Thank you Michelle.

Speaker Change: Thanks to everyone for joining us this morning to discuss our first quarter 2025 financial results.

Speaker Change: With me today is Scott Davidson, our senior Vice President and Chief Financial Officer.

Speaker Change: It should also be noted that today's call will be webcast live and can be found on the investor's section of the company's corporate website at naturalhealthtrendscorp.com.

Speaker Change: During the first quarter revenue was $10 7, million% to 2% decrease compared to the first quarter of 2024.

Speaker Change: Attributable to the timing of our incentive calendars between the two periods.

Speaker Change: However, we managed to sequentially increase our orders taken by 9% over the fourth quarter of 2024, demonstrating sustained interest for our products.

Speaker Change: The first quarter extended our positive progress in the second half of 2024.

Speaker Change: In China and Hong Kong.

Speaker Change: We completed a nice city roadshow.

Speaker Change: Marketing, our wellness products with extra insights from Dr. Lyle Wilson.

Speaker Change: We also introduced new additions to our two insulin weight management line to.

Speaker Change: To insulin coffee and to insulin tomato soup, both of which received strong feedback from customers and few years.

Speaker Change: In April we hosted nearly 200 qualifiers unearned incentive trip to Paris, where they enjoy cultural and culinary experiences that strengthened team camaraderie.

Speaker Change: In March we opened our new office in Bogota, Colombia.

Speaker Change: This facility will serve as the central hub for our newest market delivering customer services and showcasing our brand and products.

Speaker Change: As soon as the first quarter was behind us.

Speaker Change: International trade environment change significantly.

Speaker Change: While the impact is difficult to gauge with the support of our product partners. We are actively working to streamline our supply chain.

Speaker Change: Bring manufacturing closer to our primary markets in Asia, and simplify logistics to weather the uncertainty and improve our long term efficiency.

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

Speaker Change: Scott.

Scott Davidson: Thank you Chris total revenue for the first quarter was $10 7 million, a modest decrease of 2% compared to $11 million in the first quarter of 2024.

Scott Davidson: Our active member base decreased slightly to 30180 at March 31 from 38.

Scott Davidson: 870 at December 31, and was down 5% from 31620 at March 31 last year.

Scott Davidson: Turning to our cost and operating expenses.

Scott Davidson: Gross profit margin increased slightly to 73, 6% from 73, 4% in the first quarter of last year.

Scott Davidson: Commissions expense as a percent of total revenue for the first quarter was 41, 8% compared.

Scott Davidson: There were 41% a year ago, primarily due to higher weekly commissions earned by our members during the first quarter of this year.

Scott Davidson: Selling general and administrative expenses for the quarter were $3 8 million a decrease of 156000 compared to a year ago.

Scott Davidson: As a result operating loss for the quarter was 345000 compared to 365000 in the first quarter last year.

Scott Davidson: Net income for the first quarter was 122000 or <unk> <unk> per diluted share compared to 188000 or <unk> <unk> per diluted share in the first quarter of 2024.

Scott Davidson: Now I'll turn to our balance sheet and cash flow.

Net cash provided by operating activities was 484000 during the first three months of 2025.

Scott Davidson: Compared to 549000 during the first quarter a year ago.

Scott Davidson: Total cash cash equivalents in marketable securities were $41 9 million at March 31.

Scott Davidson: Down from $43 9 million at December 31, 2024, due to our quarterly dividend payment.

Scott Davidson: As returning capital to our stockholders remains a top priority I am pleased to announce that on April 28.

Scott Davidson: Our board of directors declared another quarterly cash dividend of <unk> 20 per share, which will be payable on may 20, <unk> to stockholders of record as of May 13th.

Scott Davidson: Looking forward our immediate priority is assessing the potential impact of tariffs on our operations and responding swiftly with strategic actions to optimize our supply chain and streamline logistics, ensuring we continue to meet the needs of our markets. While also remaining focused on the execution of our strategic initiatives.

Scott Davidson: And on providing exceptional support to our members every step of the way.

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

Speaker Change: Thank you and ladies and gentlemen that does conclude today's teleconference. We thank you for your participation you may disconnect your lines at this time.

Speaker Change: Okay.

Speaker Change: [music].