COPPELL, Texas, Mar 14, 2008 (BUSINESS WIRE) -- Mannatech, Incorporated (MTEX) today reported a fourth quarter 2007 loss of $3.6 million or $0.13 cents per diluted share, which included an accrual of $4.7 million for litigation-related expenses. This compares to $0.30 cents earnings per diluted share and $8.2 million of net income for the fourth quarter of 2006. The company reported a pretax loss of $4.7 million compared to $12.2 million for the fourth quarter of 2006.
Fourth quarter net sales for 2007 were $99.9 million, a decrease of 6.5%, compared to $106.8 million in the fourth quarter of 2006. The sales decline resulted from a 20% decrease in North America sales compared to the fourth quarter of 2006. This was partially offset by a 27% increase in sales from international markets, primarily in Asia, in the fourth quarter of 2007 compared to the fourth quarter of 2006.
Terry Persinger, President and CEO, commented, "Our U.S. market continues to experience softer sales and recruiting impacted by ongoing litigation. The company is continuing discussions with the Texas Attorney General's staff toward a satisfactory resolution. In the meantime, we continue to invest in vital areas to restore sales and recruiting momentum. The higher fourth quarter expense levels reflected our strategy in the short-term to continue funding for the new research, products, and sales programs that will grow our business."
Mr. Persinger continued, "We are looking for renewed momentum and improved profitability in the latter part of this year, resulting from the dual emphasis on global business development and cost management. A new sales platform and initiatives will kick off at MannaFest, our annual convention at the end of this month. At the same time, we look to enter new markets starting with the opening of South Africa in the second quarter."
Total independent Associate and Member count based on a 12-month trailing period increased to 575,000 for the fourth quarter of 2007 as compared to 544,000 for the fourth quarter of 2006. The 5.7% growth resulted from higher retention of continuing independent Associates and Members which were up 43,000, a 12.6% increase compared to the same period last year. This increase was partially offset by a 5.9% decline in new independent Associates and Members on a 12-month trailing basis.
Full year 2007 net sales reached $412.7 million, up 0.1% from 2006. Net income for the full year 2007 was $6.6 million, compared to the full year 2006 net income of $32.4 million. Diluted earnings per share were $0.25 cents compared to $1.19 for the full year 2006.
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, and Germany.
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" 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.