FALSE000105635800010563582024-05-142024-05-14


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 14, 2024
MANNATECH, INCORPORATED
(Exact Name of Registrant as Specified in its Charter)
Texas000-2465775-2508900
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
1410 Lakeside Parkway, Suite 200
 Flower Mound,Texas75028
(Address of Principal Executive Offices, including Zip Code)
Registrant’s Telephone Number, including Area Code:(972)471-7400
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities Registered Pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock,par value $0.0001 per shareMTEXThe Nasdaq Stock Market LLC
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o



Item 2.02 Results of Operations and Financial Condition.
On May 14, 2024, Mannatech, Incorporated issued a press release announcing financial and operating results for the third quarter ended March 31, 2024. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.    
Exhibit NumberDescription
Press Release, dated May 14, 2024, titled "Mannatech Reports Third Quarter 2023 Financial Results."
*Furnished herewith.
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

May 14, 2024
MANNATECH, INCORPORATED
By:/s/ Landen Fredrick
Landen Fredrick
Chief Executive Officer and Interim Chief Financial Officer




logoa04.jpg
Mannatech Reports Financial Results for First Quarter 2024
Q1 2024 EPS of $0.63 vs. $0.32 in Q1 2023

(FLOWER MOUND, Texas) May 14, 2024 - Mannatech, Incorporated (NASDAQ: MTEX), a global health and wellness company committed to transforming lives to make a better world, today announced financial results for its first quarter of 2024.

First Quarter Highlights
•Net sales for the quarter ended March 31, 2024 were $29.4 million, as compared to $34.1 million for the same period in 2023, a decrease of $4.7 million, or 13.8%. On a Constant dollar basis (see Non-GAAP Measures, below) our net sales decreased $3.9 million, or 11.3%, and unfavorable foreign exchange caused a $0.8 million decrease in GAAP net sales as compared to the same period in 2023. The decline in revenues was principally in our Asia/Pacific region reflecting reduced recruiting of sales associates and preferred customers along with continued weak economic conditions.^
•Gross profit as a percentage of net sales increased to 78.6% for three months ended March 31, 2024, as compared to 78.3% for the same period in 2023, largely due to reduced costs of freight and shipping and other supply chain initiatives.
•Income from operations was $0.8 million for the three months ended March 31, 2024 as compared to $0.7 million in the same period last year. On a Constant dollar basis (see Non-GAAP Measures, below), income from operations was unfavorably affected by $0.3 million due to foreign exchange. Higher gross profit margins coupled with lower selling and administrative expenses resulting from cost reductions, more than offset the profitability impact from the decline in revenues.
•Net income was $1.2 million for the three months ended March 31, 2024, or $0.63 per diluted share, as compared to $0.6 million, or $0.32 per diluted share for the three months ended March 31, 2023.
•As of March 31, 2024, the company's cash and cash equivalents increased 2.3%, or $0.2 million, to $7.9 million from $7.7 million as of December 31, 2023. Cash provided by operating activities was $1.87 million for the first quarter 2024 as compared to $1.35 million in the same period last year.
•The approximate number of new and continuing independent associate and preferred customer positions held by individuals in Mannatech’s network and associated with purchases of its packs or products as of March 31, 2024 and 2023 remained constant at approximately 143,000. Recruiting new associates and preferred customers declined 13.6% in the First quarter of 2024 as compared to the First quarter of 2023.

Landen Fredrick, President and CEO, stated, “Demand remained weak in the first quarter across our world-wide operations but was most pronounced in our Asia/Pacific region where economic conditions did not improve from the fourth quarter last year. We overcame our revenue shortfall with aggressive and effective cost control measures resulting in reducing our SG&A expenses and generating $0.8 million in operating income.”
Mr. Fredrick continued, “We are a multinational company and therefore we are subject to fluctuations in the value of the U.S. Dollar versus other currencies in the countries we operate. In the first quarter we had a $0.8 million foreign exchange gain, reflected in “Other Income” in our Statement of Operations. The foreign exchange gain, coupled with our operating income in the period, had a significant contribution to achieving net income of $1.2 million in the first quarter of this year.”
Mr. Fredrick concluded, “We see continued economic challenges for the remainder of 2024, however, we remain committed to increasing our revenues through increasing the number of our sales associates and preferred customers and while maintaining disciplined cost controls.”

Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this press release and related tables include certain non-GAAP financial measures, including a presentation of Constant dollar measures. The company discloses operating results that


have been adjusted to exclude the impact of changes due to the translation of foreign currencies into U.S. dollars, including changes in: Net Sales, Gross Profit, and Income from Operations.
The company believes that these non-GAAP financial measures provide useful information to investors because they are an indicator of the strength and performance of ongoing business operations. The constant currency figures are financial measures used by management to provide investors an additional perspective on trends. Although management believes the non-GAAP financial measures enhance investors’ understanding of their business and performance, these non-GAAP financial measures should not be considered an exclusive alternative to accompanying GAAP financial measures. Please see the accompanying table entitled "Non-GAAP Financial Measures" for a reconciliation of these non-GAAP financial measures.

Safe Harbor statement
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be identified by use of phrases or terminology such as “may,” “will,” “should,” "hope," “could,” “would,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “approximates,” “predicts,” “projects,” “potential,” and “continues” or other similar words or the negative of such terminology. Similarly, descriptions of Mannatech’s objectives, strategies, plans, goals or targets contained herein are also considered forward-looking statements. Mannatech believes this release should be read in conjunction with all of its filings with the United States Securities and Exchange Commission and cautions its readers that these forward-looking statements are subject to certain events, risks, uncertainties, and other factors. Some of these factors include, among others, Mannatech’s inability to attract and retain associates and members, increases in competition, litigation, regulatory changes, and its planned growth into new international markets. Although Mannatech believes that the expectations, statements, and assumptions reflected in these forward-looking statements are reasonable, it cautions readers to always consider all of the risk factors and any other cautionary statements carefully in evaluating each forward-looking statement in this release, as well as those set forth in its latest Annual Report on Form 10-K, and other filings filed with the United States Securities and Exchange Commission, including its current reports on Form 8-K. All of the forward-looking statements contained herein speak only as of the date of this release.

^ Mannatech operates in China under a cross-border e-commerce platform that is separate from its network marketing model.

Individuals interested in Mannatech's products or in exploring its business opportunity can learn more at Mannatech.com

Contact Information:
Erin K. Barta
General Counsel and Corporate Secretary
972-471-7742
ir@mannatech.com
www.mannatech.com



MANNATECH, INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share information)
ASSETSMarch 31, 2024 (unaudited)December 31, 2023
Cash and cash equivalents$7,911 $7,731 
Restricted cash938 938 
Accounts receivable, net of allowance of $1,200 and $1,278
320 91 
Income tax receivable450 465 
Inventories, net13,679 14,535 
Prepaid expenses and other current assets3,146 1,774 
Deferred commissions1,836 2,130 
Total current assets28,280 27,664 
Property and equipment, net3,769 4,147 
Long-term restricted cash693 718 
Other assets6,711 7,066 
Deferred tax assets, net1,605 1,611 
Total assets$41,058 $41,206 
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Current portion of finance leases$265 $269 
Accounts payable4,882 4,010 
Accrued expenses5,899 6,779 
Commissions and incentives payable8,419 8,175 
Taxes payable1,922 1,521 
Current notes payable525 240 
Deferred revenue4,235 4,786 
Total current liabilities26,147 25,780 
Finance leases, excluding current portion888 956 
Other long-term liabilities3,578 3,986 
Total liabilities30,613 30,722 
Commitments and contingencies
Shareholders’ equity:  
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding— — 
Common stock, $0.0001 par value, 99,000,000 shares authorized, 2,742,857 shares issued and 1,884,814 shares outstanding as of March 31, 2024 and 2,742,857 shares issued and 1,860,154 shares outstanding as of December 31, 2023
— — 
Additional paid-in capital32,948 33,309 
Accumulated deficit(121)(1,301)
Accumulated other comprehensive loss(2,446)(1,015)
Treasury stock, at average cost, 858,043 shares as of March 31, 2024 and 882,703 shares as of December 31, 2023
(19,936)(20,509)
Total shareholders’ equity10,445 10,484 
Total liabilities and shareholders’ equity$41,058 $41,206 



MANNATECH, INCORPORATED AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share information)
 Three Months Ended
March 31,
 20242023
Net sales$29,393 $34,114 
Cost of sales6,296 7,413 
Gross profit23,097 26,701 
Operating expenses:  
Commissions and incentives11,685 13,558 
Selling and administrative expenses10,176 12,043 
Depreciation and amortization expense416 387 
Total operating expenses22,277 25,988 
Income from operations820 713 
Interest income, net18 24 
Other income, net871 333 
Income before income taxes1,709 1,070 
Income tax (provision) (529)(466)
Net income$1,180 $604 
Income per common share:  
Basic$0.63 $0.32 
Diluted$0.63 $0.32 
Weighted-average common shares outstanding:  
Basic1,884 1,872 
Diluted1,884 1,891 




Net sales by region for the three months ended March 31, 2024 and 2023 were as follows (in millions, except percentages):
RegionThree Months Ended
March 31, 2024		Three Months Ended
March 31, 2023
Americas$10.2 34.7 %$10.5 30.8 %
Asia/Pacific17.1 58.2 %21.1 61.9 %
EMEA2.1 7.1 %2.5 7.3 %
Total$29.4 100.0 %$34.1 100.0 %

Non-GAAP Financial Measures (Sales, Gross Profit and Income from Operations in Constant Dollars)
To supplement its financial results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Mannatech discloses operating results that have been adjusted to exclude the impact of changes due to the translation of foreign currencies into U.S. dollars, including changes in: Net Sales, Gross Profit, and Income from Operations. It refers to these adjusted financial measures as Constant dollar items, which are non-GAAP financial measures. The company believes these measures provide investors an additional perspective on trends. To exclude the impact of changes due to the translation of foreign currencies into U.S. dollars, it calculates current year results and prior year results at a constant exchange rate, which is the prior year’s rate. Currency impact is determined as the difference between the actual GAAP results and the recalculated results for the current year at the Constant dollar rates.
The table below reconciles fiscal year 2024 and 2023 Constant dollar net sales, gross profit and income from operations to GAAP net sales, gross profit and income from operations.
Three-month period ended March 31, 2024March 31, 2023Constant $ Change
(in millions, except percentages)GAAP
Measure:
Total $		Translation AdjustmentNon-GAAP
Measure:
Constant $		GAAP
Measure:
Total $		DollarPercent
Net sales$29.4 $0.8 $30.2 $34.1 $(3.9)(11.4)%
Gross profit23.1 0.7 23.8 26.7 (2.9)(10.9)%
Income from operations0.8 0.3 1.1 0.7 0.4 57.1 %











v3.24.1.1.u2
Cover
May 14, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date May 14, 2024
Entity Registrant Name MANNATECH, INCORPORATED
Entity Address, City or Town Flower Mound,
Entity Address, State or Province TX
Entity Address, Postal Zip Code 75028
Local Phone Number 471-7400
City Area Code (972)
Entity Incorporation, State or Country Code TX
Entity File Number 000-24657
Entity Tax Identification Number 75-2508900
Entity Address, Address Line One 1410 Lakeside Parkway, Suite 200
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock,
Trading Symbol MTEX
Security Exchange Name NASDAQ
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0001056358
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