COPPELL, TX, Mar 08, 2006 (MARKET WIRE via COMTEX) -- Mannatech, Incorporated (MTEX) today reported record earnings per share for the year ended December 31, 2005 of $1.03 per diluted share for an increase of 45%, or $0.32 per diluted share as compared to $0.71 for the same period in 2004. In addition, consolidated net sales grew 32% to $389 million compared to $295 million in 2004 and set a new Company annual sales record. Fourth quarter results included record earnings per share of $0.34 per diluted share, up 127% from $0.15 per diluted share for the same period in 2004, and consolidated net sales increased by 20% to $101 million as compared to $84 million for the same period in 2004.
Samuel Caster, Chairman of the Board and Chief Executive Officer, said, "Our focus over the past year has included increasing our profitability. Our income from operations for the year ended 2005 increased $19 million, or 72%, to $46 million as compared to $27 million in 2004. We also improved our cost of sales, our commission rate was lowered versus 2004, and we reduced our overhead costs by two full percentage points. These efforts amplified the effects of our sales increase and allowed us to drive our operating earnings to the highest levels Mannatech has yet achieved. Our income from operations for the fourth quarter of 2005 rose to 15% of net sales, which shows the potential we believe our company has."
Mr. Caster continued, "Our strong performance is a result of our continued effective strategy of delivering exceptional products coupled with outstanding customer service across the globe. We believe our strategy continues to work well and we plan to innovate to bring more value to our investors and customers worldwide. We see continued growth in our future and are optimistic about our business and industry, as we expect to continue our introduction of new products, refinement of existing products, and sustained international expansion."
During 2005, Mannatech improved its gross profit margin by reducing cost of sales, as well as maintaining control of commissions and incentives and overhead costs. Mannatech also maintained a debt-free balance sheet with a strong cash position of over $73 million. Mannatech declared dividends of $0.29 per share in 2005 as compared to $0.27 per share in 2004. Mannatech intends to continue dividend payments to its shareholders as encouragement of long-term stock ownership.
Based in Coppell, Texas, Mannatech, Incorporated is a wellness solutions provider that develops innovative, high-quality, proprietary nutritional supplements, topical products and weight management products, which are sold through a global network-marketing system operating throughout the United States and the international markets of Canada, Australia, the United Kingdom, Japan, New Zealand, the Republic of Korea, Taiwan, and Denmark.
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 "may," "believes," "estimates," "shows"," sees," "optimistic," and "plans" 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 its expectations, statements, and assumptions reflected in these forward-looking statements are reasonable, it cautions its 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 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.