COPPELL, Texas--(BUSINESS WIRE)--May 15, 2003--Mannatech, Incorporated (Nasdaq:MTEX) today reported its net sales for the first quarter ended March 31, 2003 reached $40.5 million and net income totaled $1.4 million, or $0.06 earnings per share. Comparable 2002 quarterly net sales were $32.9 million and net income was $0.6 million, or $0.02 earnings per share.
Net sales for the first quarter of 2003 increased $7.6 million, or 23.1% as compared to the same period in 2002. In the first quarter of 2003, 28,000 more associates and members joined Mannatech compared to 19,000 more associates and members for the first quarter of 2002, which was a gain of 47.4%. Net sales increased for the three months ended March 31, 2003 in North America, Australia, the United Kingdom, Japan and New Zealand, with a slight decline in Canada, compared to the same period in 2002.
Net income for the three months ended March 31, 2003 increased 133.3% to $1.4 million as compared to the same period in 2002. This increase was achieved despite recognition of approximately $1.0 million of costs for Mannafest, Mannatech's annual sales event, which was held in March of 2003 as compared to April of 2002.
On April 15, 2002, Samuel L. Caster was unanimously appointed by our Board of Directors to serve as our Chief Executive Officer ("CEO"). Mr. Caster, Chairman and CEO stated, "Our exceptional first quarter results are directly attributable to the focus and drive of our associates as they spread the knowledge of our products around the world. Our international markets, under new management, have added immensely to our level of success. The addition of Steve Lemme, our new Senior Vice President of Sales, should further provide greater support to our independent associates while also helping Mannatech achieve its objectives of continued growth and profitability."
In the second quarter of 2003, Mannatech intends to take a charge of approximately $1.3 million for severance costs related to the resignation of its former CEO.
For nearly a decade, Mannatech has considered itself a wellness solution provider that develops innovative, high-quality, proprietary nutritional supplements, weight management products and topical products that are sold through a global network-marketing system throughout the United States and the international markets of Canada, Australia, the United Kingdom, Japan and New Zealand.
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 statements are subject to certain events, risks and uncertainties that may be outside of Mannatech's control. Actual results and developments could materially differ from those expressed in or implied by such statements due to a number of factors. In some cases, forward-looking statements may be identified by terminology such as "may," "should," "believes," or "approximates," or the negative of such terms and other comparable terminology. Although Mannatech believes that the expectations reflected in these forward-looking statements are reasonable, it cautions its readers to consider the risk factors and any other cautionary statements in this release, as well as those set forth in Mannatech's filings with the Securities and Exchange Commission. All of the forward-looking statements contained herein speak only as of the date of this press release.