NATURAL HEALTH TRENDS CORP Q2 FY2024 earnings call

• Second quarter net sales were flat at $10.5 million. - Implemented targeted programs to attract/retain customers. - Held first two-day training events in Jeju, S. Korea since 2021. - Taiwan orders up 51% QoQ and 16% YoY. - North America orders up 22% QoQ and 7% YoY. - Launched Bio Essence wellness panel in North America. - Peru and India had multicity roadshows. - Board declared quarterly cash dividend of $0.20 per share.

Second quarter net sales were $10.5 million, flat compared to Q2 2023. Active member base decreased 2% to 36,110 at June 30. Gross profit margin declined slightly to 74.2% from 74.6% in Q2 2023. Commissions expense as a percent of net sales declined. Selling, general and administrative expenses declined to $3.8 million from $4.1 million in Q2 2023. Operating loss was $238,000 vs. $743,000 in Q2 2023. Net income was $173,000 or $0.02 per diluted share vs. net loss of $219,000 in Q2 2023. Net cash used in operating activities was $3.6 million. Total cash, etc., was $48.7 million at June 30, down from $54.4 million at March 31.

• Board declared a quarterly cash dividend of $0.20 per share, payable on August 23. - Committed to developing programs, new products, and activities to support member success and business growth while managing costs.

• Downturn in consumer spending continues to be a headwind for the business.

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