In its second quarter financial results, Natural Health Trends documented its third consecutive quarter of positive cash flow from operations and its fifth consecutive quarter of positive operating income and net income. Revenue for the quarter totaled $16.2 million, a 20% increase over the previous quarter, but a 2% decrease from the same quarter in 2020.
Operating income increased to $385,000, compared to $220,000 in the previous quarter and $183,000 in the same quarter in 2020. Active members, or those who have placed at least one product order during the previous 12 months, decreased 5% to 46,860. This is a 14% decrease from the same quarter in 2020.
“We were pleased with our second quarter financial performance which reflected sequential growth despite ongoing macroeconomic challenges,” said Chris Sharng, President of Natural Health Trends Corp. “Revenue of $16.2 million increased 20% compared to the first quarter of 2021 driven by multiple in-person events and roadshows which are helping to rejuvenate momentum in our core markets. Partially offsetting our growth were sporadic outbreaks hampering meeting turnout and global supply chain constraints lengthening lead times, which contributed to a $1.5 million increase in our deferred revenue balance from March to June.”
Year-to-date revenue for 2021 totaled $29.6 million, a 6% decrease as compared to the $31.4 million of revenue within the first six months of 2020. Price per diluted share is $0.03.
Total cash and cash equivalents equaled $88.1 million at the end of the quarter, slightly down from the first quarter’s report of $90.2 million.
“We are still navigating through the complexities associated with the COVID-19 pandemic around the world and the occasional pockets of outbreaks that occur in Asia,” Sharng said. “Aside from these challenges, we reported our fifth consecutive quarter of positive operating income and net income, in addition to our third consecutive quarter of positive cash flow generation. Looking ahead, we remain cautiously optimistic that the continued easing of pandemic-related restrictions will be positive development for our business.”