COPPELL, Texas, May 09, 2008 (BUSINESS WIRE) -- Mannatech, Incorporated (MTEX) today reported a first quarter 2008 loss of $2.3 million or $0.09 cents per diluted share, compared to net income of $6.9 million or $0.26 cents earnings per diluted share for the first quarter of 2007. The company reported a pre-tax loss of $2.8 million compared to pre-tax income of $10.4 million for the first quarter of 2007.
First quarter net sales for 2008 were $91.5 million, a decrease of 12.7%, compared to $104.8 million in the first quarter of 2007. The sales decline resulted from a 23.1% decrease in North America sales compared to the first quarter of 2007. This was partially offset by a 13.9% increase in sales from international markets, primarily in Japan and Korea, in the first quarter of 2008 compared to the first quarter of 2007.
Terry Persinger, president and CEO commented, "Our U.S. market continues to experience a decline in net sales and recruiting impacted by ongoing litigation and a weaker economy. We announced a settlement in late March of the class action litigation pending court approval and we are continuing discussions toward a satisfactory resolution of the Texas Attorney General's concerns."
Mr. Persinger continued, "We have spent the last year repositioning the company strategically in the wellness industry which required considerable investment in a new business development system including new Associate materials. These company-produced materials were launched at MannaFest at the end of March, thereby positioning our Associates to provide greater emphasis on Mannatech's business opportunity. We also launched our 'Ready, Set, Go-Give' Associate initiative which, combined with a heightened focus on cost management, should lead to improved financial performance in the latter part of the year."
Total independent Associate and Member count based on a 12-month trailing period increased to 570,000 for the first quarter of 2008 as compared to 553,000 for the first quarter of 2007. The 3.1% year over year growth resulted from higher retention of continuing independent Associates and Members which were up 36,000, a 10.1% increase. This increase was offset by a 9.6% decline in new independent Associates and Members on a 12-month trailing basis.
Mannatech, Incorporated, is a global wellness solutions provider of innovative, high-quality, proprietary nutritional supplements, topical and skin care products, and weight management products sold through independent Associates and Members located in the United States and the international markets of Canada, Australia, the United Kingdom, Japan, New Zealand, the Republic of Korea, Taiwan, Denmark, Germany, and South Africa.
Please Note: 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 "intend," "may," "believes," "plan," "will continue," "expects," "potential," "should," 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 Quarterly Report on Form 10-Q, 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, and Mannatech has no intentions, and disclaims any obligation, to update or revise any forward-looking statements, whether as a result of new information, future results or otherwise.