Mannatech Reports Q4 And FY 2010 ($0.10) EPS (MTEX)

Mannatech, Incorporated MTEX, a leading developer and provider of nutritional supplements and skin care products based on Real Food Technology® solutions, today reported a net loss of $2.7 million or $0.10 cents per diluted share for the fourth quarter ending December 31, 2010, compared to net income of $2.2 million or $0.08 cents per diluted share for the fourth quarter of 2009.

Fourth quarter net sales for 2010 were $54.9 million, a decrease of 21.7% compared to $70.1 million in the fourth quarter of 2009. North American sales declined 24.4% to $27.5 million compared to $36.4 million in the fourth quarter of 2009. International sales of $27.4 million decreased 18.7% compared to $33.7 million in the fourth quarter of 2009. Fourth quarter 2010 results included essentially level sales compared to third quarter 2010 volumes, and a fourth quarter operating deficit of $2.8 million improved by $0.9 million versus the prior quarter.

Mannatech successfully launched operations in Mexico on January 24, 2011; pre-opening opportunity meetings and extensive road shows were held during the fourth quarter as well as in the January leading up to the actual launch date.

Dr. Robert Sinnott, Co-CEO & chief science officer, commented, “With the success of the Mexico launch, Mannatech is once again firmly committed to continuing prudent international expansion. We wish to provide both the great products and the significant opportunity offered by Mannatech to everyone around the world.”

Stephen Fenstermacher, Co-CEO & chief financial officer, said, “We have been highly focused on returning the company to stability in order to provide a solid platform for growth to our independent Associates and shareholders alike. Our results throughout 2010 have made progress toward achieving that goal, which was met in recording positive EBITDA(1) in the fourth quarter.”

Annual sales for 2010 were $228.1 million, down 21.3% from $289.7 million for the full year 2009. The company reported a net loss for the full year of $10.6 million, an improvement of $6.8 million compared to the full year net loss of $17.4 million in 2009. Pre-tax results for 2010 were improved by $13.0 million despite the sales decline. The loss per share of $0.40 for the full year 2010 improved by $0.26 compared to the loss per share of $0.66 for the full year 2009. Annual 2010 EBITDA results were $0.3 million, compared to negative EBITDA of $12.2 million in 2009. Pre-opening expenses of $1.1 million were incurred in 2010 in preparation for the launch of Mexico, largely in the second half of the year.

New independent Associates and Members for the full year 2010 were 89,000 compared to 145,000 in 2009. New independent Associates and Members totaled 23,196 in the fourth quarter of 2010, compared to 27,527 in the fourth quarter of 2009. Total independent Associate and Member count based on a 12-month trailing period was approximately 403,000 as of December 31, 2010 as compared to 513,000 as of December 31, 2009.