• skype
  • Skype: philippinediver / PH (63) 927-300-6948
  • editor@mlminsider.com
Available Banner

Natural Health Trends' (NHTC) Management on Q1 2020 Results - Earnings Call Transcript

Seeking Alpha
Natural Health Trends' (NHTC) Management on Q1 2020 Results - Earnings Call Transcript

 
|
 About: Natural Health Trends Corp. (NHTC)

Natural Health Trends Corp. (NASDAQ:NHTC) Q1 2020 Earnings Conference Call May 6, 2020 11:30 AM ET

Company Participants

Kim Orlando – Investor Relations

Chris Sharng – President

Scott Davidson – Chief Financial Officer

Conference Call Participants

Operator

Greetings and welcome to the Natural Health Trends Corp. First Quarter 2020 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Kim Orlando, ADDO Investor Relations for Natural Health Trends. Thank you. You may begin.

Kim Orlando

Thank you, and welcome to Natural Health Trends' First Quarter 2020 Earnings Conference Call. During today's call, there may be statements made relating to 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 as a 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 website 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 a.m. Eastern Time.

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

Chris Sharng

Thank you, Kim, and thanks to everyone for joining us. With me today is Scott Davidson, our Senior Vice President and Chief Financial Officer.

It was a challenging first quarter for our business with total revenue of $14.9 million, declining 23% compared to the prior year period. Before Scott walks you through the financials in greater detail, I'd like to begin by discussing the COVID-19 pandemic and its impact to our business as well as the actions we have been taking to address this unprecedented situation.

First and foremost, our thoughts are with all of those around the world who have been impacted by the coronavirus. While these circumstances are beyond our control, I am pleased we have continued to run our operations efficiently with the health and safety of our employees, members and customers guiding our decisions as our top priority. The impact of the pandemic followed the already difficult operating conditions we experienced throughout 2019 related to China's 100-day campaign: negative sentiment associated with health products companies on social media in China, ongoing global trade tensions and civil unrest in Hong Kong.

As discussed on prior conference calls, we made the decision in early 2019 to voluntarily suspend our member activities as a result of all of the aforementioned factors. Despite the negative impact on our financial performance, that decision has served us well in the current environment. While we could have never foreseen the impact COVID-19 would have on the global economy, we focused our efforts in 2019 on preparing our business to adapt to new realities following China's 100-day campaign and have been applying key learnings from our experience to support our affected market.

In January, COVID-19 spread throughout the Hubei province in which Wuhan is the capital and into Greater China, directly impacting our largest market and resulting in a government-mandated quarantine and extensive delays to parcel deliveries. Since we started implementing aggressive cost reduction measures beginning in the second half of 2019, we were able to effectively narrow the scope of our first quarter operating loss and corresponding decline in cash flow from operations despite the fact that our main markets were under severe lockdown for most of the first quarter of 202

Available Banner

MLM Company
Distributor Contacts

Kari
Kari Leggett
Rnetwork

509-539-5360

kariaccurate@gmail.com
Distributor Links
Allan
Allan Curtis
World Global Network

250-710-8927

allan@allandcurtis.com
Distributor Links
Terry
Terry Kilburg
Reliv International

563-872-3788

terrykilburg@gmail.com
Distributor Links

SUBSCRIBE TO OUR NEWSLETTER

SUBSCRIBE NOW