Earning Call Audio
Earning Call Audio
Natural Health Trends Corp. (NASDAQ:NHTC) Q3 2019 Results Conference Call November 1, 2019 11:30 AM ET
Andrew Greenbaum - ADDO Investor Relations
Chris Sharng - President
Scott Davidson - Senior Vice President and Chief Financial Officer
Greetings, welcome to the Natural Health Trends Corporation's Third Quarter 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode [Operator Instructions]. Please note this conference is being recorded.
I would now like to turn the conference over to your host, Mr. Andrew Greenbaum with ADDO Investor Relations. Thank you. You may begin.
Thank you. And welcome to Natural Health Trends' third quarter 2019 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. Actual results, performance, or achievements, could differ materially from those anticipated in such forward-looking statements, through the result of certain factors, including those set forth in the Company's filings with the Securities and Exchange Commission.
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 Web site at naturalhealthtrendscorp.com. Instructions can be found for accessing the archived version of the conference call in today's financial results press release, which was issued at approximately 9:00 AM Eastern Time.
At this time, I'd like to turn the call over to Chris Sharng, President of Natural Health Trends.
Thank you, Andrew. And thanks to everyone for joining us. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer. I'll start by discussing our third quarter results and then hand the call over to Scott to review our financials in greater detail.
Total third quarter revenue of $17 million declined 64% compared to the third quarter of 2018, as the business environment in China presented broad challenges for health products companies due to the 100-day campaign and its ongoing aftermath. In addition, protests in Hong Kong post new complications during the quarter. As a result, we had to suspend company-sponsored meetings in Hong Kong as current conditions are not conducive to hosting visitors from Mainland China.
Despite a difficult operating environment in China and Hong Kong, we are pleased with our leaders' abilities to adapt and perform under these circumstances. Due to the Hong Kong protest, we changed the timing of our traditional third quarter Hong Kong event to October and held it in Macau. We attracted 3,000 attendees for a weekend full with product demonstrations, keynote speakers, motivation and training.
The new products we introduced included an electric toothbrush and a new version of our air purifier, which will be sourced in China as part of our efforts to reduce our exposure to the ongoing trade disputes. Recession to the Macau event among our guests was very positive. Our fourth quarter order volume trends are improving following this major event. It also paves the way for us and the leaders to plan for more activities, including a Fly High training event in Malaysia in the fourth quarter and back to Hong Kong early next year.
Additionally, we unveiled our new and improved StemRenu products during the quarter, with a re-registration process underway in all key markets. This enhanced formula will be supported by an existing product manufacturing partner that can better educate members on the vast benefits behind the product to support cellular health. On the heels of this development, we conducted a StemRenu manufacturing tour in Minneapolis in August to showcase the new formula and provided exclusive product training for members who qualify to attend.