Natural Health Trends Corp. announced financial results for its fourth quarter and full year performance. Fourth quarter revenue increased 17% compared to the previous quarter, reaching $16.6 million.
Operating income for the fourth quarter was $1.3 million—a striking contrast to the operating loss of $3.2 million in the fourth quarter of 2019, which included an impairment charge of $1.8 million with the adoption of a new accounting standard that arose from a merger in 2004.
Net income was $747,000, or $0.07 per diluted share, compared to $635,000, or $0.06 per diluted share, in the previous quarter. Active member numbers decreased slightly, totaling 52,230 by year end.
Full-year financial reports for 2020 revealed a 20% decrease in revenue from 2019, resulting in $62.1 million, and a net income of $843,000, or $0.07 per diluted share.
“2020 revenue of $62.1 million decreased 20% compared to $77.6 million in 2019 as elements such as government-mandated travel restrictions, shutdowns and limitations surrounding in-person events and activities hindered our leaders’ ability to conduct business,” commented Chris Sharng, President of Natural Health Trends Corp. “However, for the fourth quarter of 2020, revenue of $16.6 million increased 17% over the third quarter of 2020 with orders improving 14% as restrictions began to ease in our key markets.”
The company’s net cash flow provided by operating activities was $1.9 million in 2020, compared to net cash used in operating activities of $18.6 million in 2019. Total cash and cash equivalents were $92.4 million, down from $96 million in 2019.
“The cost savings initiatives we implemented in the second half of 2019 resulted in 2020 cost reductions of over $9.0 million year-over-year,” Sharng said. “As a result, we reported positive operating income for both the full year and the third consecutive quarter which helped fuel positive cash provided by operating activities in 2020.”
