Mannatech Reports third Quarter Results

Cost of sales and commission costs continue in line at lower sales levels

(COPPELL, Texas) November 3, 2010 –Mannatech, Incorporated (NASDAQ: MTEX - News), a global pioneer in the development of high-quality health, weight and fitness and skin care solutions based on nutritional science, today reported a net loss of $1.3 million or $0.05 cents per diluted share for the third quarter ending September 30, 2010, compared to a net loss of $9.2 million or $0.35 cents per diluted share for the third quarter of 2009. The company reported an operating loss of $3.7 million for the third quarter 2010 compared to an operating loss of $8.6 million in the third quarter of 2009.

Third quarter net sales for 2010 were $54.9 million, a decrease of 23.0%, compared to $71.3 million in the third quarter of 2009. International sales were essentially flat with the second quarter of 2010, while North American sales declined 8% compared to the second quarter of 2010.

For the nine months ended September 30, 2010, net sales were $173.1 million, down 21.2% from $219.6 million for the same period in 2009. The company reported a net loss for the nine month period of $7.9 million, compared to last year’s nine month net loss of $19.5 million. The loss per share was $0.30, compared to a loss per share of $0.74 for the nine months ended September 2009.

“Our third quarter new Associate and Member recruiting levels were almost equal to second quarter levels. Historically, second quarter recruitment levels are bolstered by our annual sales incentive, so this year's third quarter recruiting results are encouraging metrics showing that our Associates are excited again about what Mannatech offers,” said Dr. Robert Sinnott, co-CEO and chief science officer. “The recruiting performance also contributed to third quarter sales levels down slightly to that of second quarter 2010 sales levels.” Dr. Sinnott continued, “At our major convention in early September, we commenced our official partnership with the International Sport Karate Association (ISKA), launched our unique Mannatech LIFT skin care line, and delivered exceptional selling tools. Our Associates are embracing these new products, partnerships and tools with great enthusiasm and excitement.”

“We continue to manage our cost of sales, commission costs and operating expenses at efficient levels,” said Stephen Fenstermacher, Co-CEO and chief financial officer. “Our balance sheet reflects higher cash and cash equivalents as well as lower outstanding payables compared to the second quarter of 2010, with essentially no long-term debt. Also, Associate excitement continues to build in anticipation of our launch of operations in Mexico on track for the first quarter of 2011.”

New independent Associates and Members totaled 22,296 in the third quarter compared to 22,775 in the second quarter of 2010, and 36,689 in the third quarter of 2009. Total independent Associate and Member count based on a 12-month trailing period was approximately 422,000 as of September 30, 2010, as compared to 534,000 as of September 30, 2009.

Conference Call

Mannatech will hold a conference call and webcast to discuss this announcement with investors on Thursday, November 4, 2010 at 9:00 a.m. Central Daylight Time, 10:00 a.m. Eastern Daylight Time. Investors may listen to the call by accessing Mannatech’s website at http://phx.corporateir.net/phoenix.zhtml?p=iroleventDetails&c=62253&eventID=3419590.


Individuals interested in Mannatech’s products or in exploring its business opportunity can learn more at http://www.mannatech.com.

Download entire Third Quarter Results PDF