Strong Second Quarterly Results - Report on Natural Health Trends

Aug 06, 2015, 09:20 ET from www.aciassociation.com

NEW YORK, August 6, 2015 /PRNewswire/ --

ACI Association has initiated research coverage on Natural Health Trends Corp. (NYSE: NHTC). Select highlights from the internally released reports are being made available to the general public (included below), with access to the entirety of the research available to new members.

Today, membership is open to readers on a complementary basis at the following URL: http://www.aciassociation.com/?c=NHTC

Highlights from our NHTC Report include:

  • Solid Revenue Growth - On July 28, 2015, Natural Health Trends Corp. released results for the second quarter of 2015. The Company generated total revenue of $69.7 million, reflecting a significant increase of 104% compared to $34.2 million in Q2 2014. Revenue from Hong Kong operations, which represents 93% of total revenue, grew by $33.2 million, or 105% YoY. Whereas, revenue outside Hong Kong rose by $2.4 million, or 91% YoY. Excluding the Commonwealth of Independent States, revenue increased 151% YoY.
  • Improved Profitability - In Q2 2015, gross profit amounted to $55.6 million, higher than $26.7 million in previous year quarter. Operating income increased 99% to $12.3 million, from $6.2 million in the second quarter last year. Net income for the period was almost doubled to $12.3 million, from $6.1 million in prior year quarter. Consequently, the Company's diluted earnings per share increased to $0.98, from $0.49 in same period last year.
  • Year-to-Date Financial Highlights - In first six months of 2015, the Company generated revenue of $110.4 million, an increase of 93% from $57.4 million in first six months of 2014. Net income for the period was recorded at $19.0 million, higher than $9.2 million in previous year period. Diluted earnings per share amounted to $1.52, compared to $0.76 in same period last year. In addition, operating income of the Company grew by 107% YoY to $19.2 million in first six months of 2015.
  • Dividend and Share Repurchases - Along with the results, Board of Directors of the Company declared a cash dividend of $0.04 per share outstanding common stock payable in cash on August 28, 2015 to stockholders of record on August 18, 2015. Furthermore, the Board of Directors approved a stock repurchase plan of up to $15 million of Company's outstanding shares of common stock with the Company's on-going earnings or cash on hand through December 2016, including $5 million repurchases intended to be immediately executed. Since November 2014, the Company has repurchased 638,176 shares of common stock at a cost of $10.6 million.
  • Management Commentary - Discussing the business developments in the quarter, Chris Sharng, President of Natural Health Trends Corp. said, "During the quarter we launched several new products to extend our product line and kicked off additional incentive programs for top performers. The combination of consumer demand supported by our market-leading products and effective sales, leadership and incentive programs are proving to be very successful strategies for expanding our base of consumers and distributors while fortifying an already firm foundation for future growth."

To find out how this influences our rating on Natural Health Trends Corp., read the full report in its entirety here: http://www.aciassociation.com/?c=NHTC

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