Natural Health Trends Corp (NHTC) 2024 Q1 法說會逐字稿

Ladies and gentlemen, good morning, and welcome to the Natural Health Trends Corp first quarter 2024 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded.

女士們、先生們，早安，歡迎參加 Natural Health Trends Corp 2024 年第一季財報電話會議。（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Michelle Glidewell. Please go ahead.

現在我很高興向您介紹主持人米歇爾·格萊德韋爾。請繼續。

Thank you, and welcome to Natural Health Trends first quarter 2024 earnings conference call. During today's call, there may be statements made relating to the future results of the company that are forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995.

謝謝，歡迎參加自然健康趨勢 2024 年第一季財報電話會議。在今天的電話會議中，可能會做出與公司未來業績相關的聲明，這些聲明屬於 1995 年《私人證券訴訟改革法案》中定義的前瞻性聲明。

Actual results, performance or achievements could differ materially from those anticipated in such forward-looking statements. To the result of certain factors, including those set forth in the company's filings with the Securities and Exchange Commission.

實際結果、績效或成就可能與此類前瞻性陳述中的預期有重大差異。這是某些因素的結果，包括該公司向美國證券交易委員會提交的文件中列出的因素。

It should also be noted that today's call will be webcast live and can be found on the Investors section of the company's corporate website at naturalhealthtrendscorp.com. Instructions for accessing the archived version of the conference call can be found in today's financial results press release, which was issued at approximately 9:00 AM Eastern Time.

還應該指出的是，今天的電話會議將進行網路直播，並且可以在該公司網站naturalhealthtrendscorp.com的投資者部分找到。有關存取電話會議存檔版本的說明，請參閱今天的財務業績新聞稿，該新聞稿於東部時間上午 9:00 左右發布。

At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.

現在，我想將電話轉交給自然健康趨勢總裁 Chris Sharng。

Thank you, Michelle, and thanks to everyone for joining us this morning to discuss our first quarter 2024 financial results. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer.

謝謝米歇爾，也謝謝大家今天早上加入我們討論我們 2024 年第一季的財務表現。今天與我在一起的是我們的高級副總裁兼財務長 Scott Davidson。

Our financial performance for the quarter reflects a $1 million rise in deferred revenue, resulting in a decrease in recognized revenue, compared to the same period last year. We expect gradual recognition of this deferred revenue in the coming months as we fulfill orders to our value customers.

我們本季的財務表現反映出遞延收入增加了 100 萬美元，導致確認收入與去年同期相比有所下降。我們預計，隨著我們向重要客戶履行訂單，我們將在未來幾個月內逐步確認這筆遞延收入。

It's noteworthy that this quarter, we achieved sequential increase in orders taken during the first quarter over the preceding fourth quarter for the first time in six years. Additionally, we achieved positive cash flow from operations highlight the robustness of our business model and the resilience of our balance sheet.

值得注意的是，本季我們的訂單量六年來首次較上一季較上季成長。此外，我們實現了正的營運現金流，凸顯了我們業務模式的穩健性和資產負債表的彈性。

While we approach the Year of the Dragon with guarded optimism, these results underscore the effectiveness of our current strategies. We continue to emphasize innovation, customer satisfaction, leadership development and operational efficiency, as we navigate our forward progress.

雖然我們對龍年抱持謹慎樂觀的態度，但這些結果凸顯了我們當前策略的有效性。在我們前進的過程中，我們繼續強調創新、客戶滿意度、領導力發展和營運效率。

We believe that our core programs and initiatives started to show some positive effect in the first quarter. Members have thus far responded favorably to our year-long achiever bonus program, which provides them additional opportunities for cash rewards and qualification to attend future travel incentives.

我們相信，我們的核心計劃和舉措在第一季開始顯現出一些正面效果。到目前為止，會員對我們為期一年的成就者獎金計劃反應良好，該計劃為他們提供了額外的現金獎勵機會和參加未來旅行獎勵的資格。

In addition, the effectiveness of our corporate driven train the trainer program, focus on building loyal product consumers and leaders of the future has been well received and attended. In early March, we hosted 120 attendees in Shaman, and we look forward to the upcoming session planned for the second quarter.

此外，我們的企業驅動型培訓師計畫的有效性，專注於培養忠實的產品消費者和未來的領導者，也受到了好評和參與。3 月初，我們在 Shaman 接待了 120 名與會者，我們期待著計劃於第二季舉行的會議。

We also resumed product roadshows, holding our first post COVID six city tour targeting one of our recently launched products, Mega boost. These activities allow us to connect with more than 600 participants eager to learn more and shared their experiences with this blood sugar support products.

我們也恢復了產品路演，舉辦了新冠疫情後的首次六城巡演，目標是我們最近推出的產品 Mega boost。這些活動使我們能夠與 600 多名渴望了解更多資訊的參與者建立聯繫，並分享他們使用這種血糖支持產品的經驗。

In late March, we embarked on an incentive trip to Chelsea province, bringing close to 300 attendees together. For team building an outdoor charity walk activities under our One heart One World charity program supporting primary schools in rural China.

3 月下旬，我們開始了一次前往切爾西省的獎勵之旅，吸引了近 300 名參與者。在我們支持中國農村小學的「同心同世界」慈善計畫下，進行團隊建立戶外慈善步行活動。

Hong Kong and China, India achieved year over year triple digit growth, thereby the launch of our standard new product in that market, along with a robust calendar of multi-city road shows, online events and group meetings to promote product adoption and new member activity.

香港和中國大陸、印度同比實現了三位數成長，從而在該市場推出了我們的標準新產品，以及一系列的多城市路演、線上活動和小組會議，以促進產品採用和新成員活動。

In Q1, our global markets held corporate lead online and in-person events and encourage smaller group team gatherings designed to share the business opportunity and our products with new prospects and customers. We anticipate these activities to continue into Q2 as the market stay engaged and step as under efforts to expand the business and reach new consumers.

在第一季度，我們的全球市場舉辦了企業主導的線上和現場活動，並鼓勵小型團隊聚會，旨在與新的潛在客戶和客戶分享商業機會和我們的產品。我們預計這些活動將持續到第二季​​度，因為市場保持活躍，並努力擴大業務並接觸新消費者。

To wrap up my comments, we remain confident in the underlying strength of our business, as we approach the future with cautious optimism. Our commitment to delivering exceptional products and maintaining strong customer relationships positions us well for growth and shareholder value creation in the long term.

作為我的評論的總結，我們對我們業務的潛在實力仍然充滿信心，因為我們以謹慎樂觀的態度對待未來。我們致力於提供卓越的產品和維持牢固的客戶關係，這使我們能夠實現長期成長和股東價值創造。

And now I would turn the call over to our CFO, Scott Davidson, to discuss our financial results in greater detail. Scott?

現在我將把電話轉給我們的財務長史考特戴維森，更詳細地討論我們的財務表現。史考特？

Thank you, Chris. Total revenue for the first quarter was $11 million, a decrease of 8% compared to $11.9 million in the first quarter of 2023. As Chris mentioned, the decrease was entirely due to the changes in deferred revenue between the two periods.

謝謝你，克里斯。第一季總營收為 1,100 萬美元，比 2023 年第一季的 1,190 萬美元下降 8%。正如克里斯所提到的，下降完全是由於兩個時期之間遞延收入的變化所致。

Deferred revenue increased $1 million in the first quarter this year and remained flat in the comparable period last year. Our active member base declined slightly to 31,620 at March 31 from 32,410 at December 31 and was down 18% compared to 38,330 at March 31, last year.

今年第一季遞延收入增加了 100 萬美元，與去年同期持平。我們的活躍會員數量從 12 月 31 日的 32,410 人略微下降至 3 月 31 日的 31,620 人，與去年 3 月 31 日的 38,330 人相比下降了 18%。

Turning to our costs and operating expenses, gross profit margin declined slightly to 73.4% from 74.5% in the first quarter last year, due primarily to a increase in product costs. Commissions expense as a percent of net sales for the first quarter was 41% compared with 42.1% in the prior quarter. Excluding the impact of administrative fee revenue, commissions expense as a percent of net sales decreased slightly due to lower commissions earned outside of our Hong Kong business.

成本和營運費用方面，毛利率從去年第一季的 74.5% 略有下降至 73.4%，主要是因為產品成本增加。第一季佣金費用佔淨銷售額的百分比為 41%，而上一季為 42.1%。排除管理費收入的影響，由於香港業務以外賺取的佣金減少，佣金支出佔淨銷售額的百分比略有下降。

Selling, general and administrative expenses decreased to $3.9 million for the quarter from $4.2 million in the first quarter a year ago. The decrease in our SG&A from the prior-year quarter reflects reduced employee-related costs and professional fees.

本季的銷售、一般和管理費用從去年同期的 420 萬美元減少至 390 萬美元。SG&A 較上年同期下降反映了員工相關成本和專業費用的減少。

As a result, operating loss for the quarter was $365,000 compared to $394,000 in the first quarter last year. Net income for the first quarter totaled $188,000 or $0.02 per diluted share compared to net income of $257,000 or $0.02 per diluted share in the first quarter of 2023.

因此，本季營業虧損為 365,000 美元，而去年第一季為 394,000 美元。第一季淨利潤總計 188,000 美元，即稀釋後每股收益 0.02 美元，而 2023 年第一季淨利潤為 257,000 美元，即稀釋後每股收益 0.02 美元。

Now I'll turn to our balance sheet and cash flow. Total cash, cash equivalents and marketable securities were $54.4 million at March 31, down from $56.2 million at December 31. Net cash provided by operations was $549,000 for the first quarter compared with net cash used in operations of $696,000 in the first quarter last year.

現在我將談談我們的資產負債表和現金流。截至 3 月 31 日，現金、現金等價物和有價證券總額為 5,440 萬美元，低於 12 月 31 日的 5,620 萬美元。第一季營運提供的淨現金為 549,000 美元，而去年第一季營運使用的淨現金為 696,000 美元。

And I am pleased to announce that on April 29, our Board of Directors declared a quarterly cash dividend of $0.20 per share, which will be payable on May 24, to stockholders of record as of May 14.

我很高興地宣布，4 月 29 日，我們的董事會宣布向 5 月 14 日登記在冊的股東派發每股 0.20 美元的季度現金股息，並將於 5 月 24 日支付。

In summary, we continued to be impressed, inspired and encouraged by the resiliency and dedication of our key leaders, loyal product consumers and hard-working teams around the world. We remain guardedly optimistic about the gradually improving operating landscape and its potential impact on our business. We are seeing some encouraging signs pointing in the right direction.

總而言之，我們的主要領導者、忠實的產品消費者和世界各地辛勤工作的團隊的韌性和奉獻精神繼續給我們留下深刻的印象、啟發和鼓勵。我們對逐步改善的經營環境及其對我們業務的潛在影響保持謹慎樂觀。我們看到一些令人鼓舞的跡象指向正確的方向。

We are committed to maintaining a focus on prudent financial management and improving operational efficiencies in the months ahead. We extend our appreciation to all of our devoted members for the unwavering dedication to their business pursuits, our incredible product offering and far embracing our mission of fostering wellness traditions around the world.

我們致力於在未來幾個月繼續專注於審慎的財務管理並提高營運效率。我們向所有忠誠的會員表示感謝，感謝他們對業務追求的堅定不移的奉獻精神、我們提供的令人難以置信的產品以及堅定不移地實踐我們在世界各地培育健康傳統的使命。

That completes our prepared remarks. I will now turn it back over to the operator.

我們準備好的發言就到此結束了。我現在將其轉回給操作員。

Thank you. Ladies and gentlemen, this concludes the conference of Natural Health Trends Corp. Thank you for your participation. You may now disconnect your lines.

謝謝。女士們、先生們，Natural Health Trends Corp 的會議到此結束。現在您可以斷開線路。