Mannatech, Incorporated, a global pioneer in the development of high-quality health, weight and fitness, and skin care solutions based on nutritional science, today reported net income of $2.2 million or $0.08 cents per diluted share for the fourth quarter ending December 31, 2009, compared to net income of $0.6 million or $0.02 cents per diluted share for the fourth quarter of 2008. The company reported an operating loss of $0.3 million compared to operating income of $4.7 million in the fourth quarter of 2008. Results for 2008 were favorably impacted by a reversal of a litigation expense accrual in the fourth quarter.
Fourth quarter net sales for 2009 were $70.1 million, a decrease of 8.4%, compared to $76.5 million in the fourth quarter of 2008. North American sales declined 19.7% to $36.4 million compared to $45.3 million in the fourth quarter of 2008. International sales of $33.7 million increased 8.0% compared to $31.2 million in the fourth quarter of 2008; excluding new country openings international sales increased by 4.2%. International sales showed significant gains in South Africa and Australia compared to sales in the fourth quarter of 2008.
Also in the fourth quarter the company announced Dr. Robert Sinnott, chief science officer, and Stephen Fenstermacher, chief financial officer, were named Co-CEOs of the company. In addition, Randy Bancino was named president, global business operations and expansion.
Dr. Robert Sinnott, Co-CEO & chief science officer, commented, "We are pleased with the progress in the international markets, yet there is much more work to accomplish. To accomplish our goals, I am excited to team with Steve to move Mannatech forward. Our combined 16 years of experience at Mannatech and direct selling experience provides a solid foundation for strengthening our relationship with our loyal Associates. We are seeing renewed excitement from our Associates as we work in tandem with them to drive our business."
Stephen Fenstermacher, Co-CEO & chief financial officer, said, "Our focus since mid-year of 2009 was to return to traditional cost levels for cost of sales and commissions; we accomplished that goal in the fourth quarter. Equally important, fourth quarter 2009 EBITDA(1) was $2.9 million, evidencing a return to positive operating cash flow."
Sales for the full year 2009 were $289.7 million, down 12.9% from $332.7 million for the full year 2008. The company reported a net loss for the full year of $17.4 million, compared to the full year 2008 net loss of $12.6 million. The loss per share was $0.66 for the full year 2009, compared to a loss per share of $0.48 for the full year 2008.
New Associates and Members for the full year 2009 were 144,631 up 9.2% compared to 132,447 in the full year 2008. New independent Associates and Members totaled 27,527 in the fourth quarter of 2009, compared to 34,383 in the fourth quarter of 2008. Total independent Associate and Member count based on a 12-month trailing period was approximately 513,000 as of December 31, 2009 as compared to 531,000 as of December 31, 2008.
Mannatech will hold a conference call and webcast to discuss this announcement with investors on Thursday, March 11, 2010 at 9:00 a.m. Central Standard Time, 10:00 a.m. Eastern Standard Time. Investors may listen to the call by accessing Mannatech's website at www.mannatech.com.
(1) To supplement Mannatech's consolidated financial statements presented in accordance with the generally accepted accounting principles ("GAAP"), in this press release Mannatech uses the non-GAAP financial measure of EBITDA (defined by the company as earnings before interest, taxes, depreciation and amortization). This measure is not in accordance with, or an alternative to, GAAP. Mannatech's management reviews this non-GAAP measure internally to evaluate its performance and manage its operations. Mannatech believes that the inclusion of EBITDA results provides investors useful and important information regarding Mannatech's operating results.
Mannatech, Incorporated develops high-quality health, weight and fitness, and skin care products that are based on the solid foundation of nutritional science and development standards. These proprietary products are available through independent sales Associates around the globe including the United States, Canada, South Africa, Australia, New Zealand, Austria, Denmark, Germany, Norway, Sweden, the Netherlands, the United Kingdom, Japan, Taiwan, Singapore and the Republic of Korea.