 Revenue of 16.4 million increased 10 from the first quarter of 2020 Aggressive cost cutting measures facilitated a return to profitability in the second quarter of 2020 Strong balance sheet with ample liquidity and 93.2 million in cash and cash equivalents Declared a quarterly cash dividend of 0.20 per shareHONG KONG, Aug. 05, 2020 GLOBE NEWSWIRE -- Natural Health Trends Corp. NASDAQ: NHTC, a leading direct-selling and e-commerce company that markets premium quality personal care, wellness and quality of life products under the NHT Global brand, today announced its financial results for the second quarter ended June 30, 2020.Second Quarter 2020 Financial Highlights Revenue of 16.4 million increased 10 compared to 14.9 million in the first quarter of 2020 and decreased 30 compared to 23.4 million in the second quarter of 2019. Operating income was 183,000 compared to a loss of 1.4 million in the first quarter of 2020 and a loss of 4,000 in the second quarter of 2019. Net income was 34,000, or break-even per diluted share, compared to a net loss of 573,000, or 0.05 per diluted share, in the first quarter of 2020 and net income of 397,000, or 0.04 per diluted share, in the second quarter of 2019. The number of Active Members1 decreased 4 to 54,370 at June 30, 2020 compared to 56,490 at March 31, 2020, and decreased 31 compared to 78,280 at June 30, 2019.1 Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve-month period.Year-to-Date 2020 Financial Highlights Revenue of 31.4 million decreased 27 compared to 42.8 million in the first six months of 2019. Operating loss was 1.3 million compared to a loss of 2.7 million in the first six months of 2019. Net loss was 539,000, or 0.05 per diluted share, compared to a net loss of 1.5 million, or 0.14 per diluted share, in the first six months of 2019.Management Commentary The second quarter marked a continuation of the challenging macroeconomic climate we experienced during the first quarter of 2020 as the COVID-19 pandemic persisted into the summer months, commented Chris Sharng, President of Natural Health Trends Corp. We were very pleased with the stability and resilience of our field leadership which helped us generate a 10 sequential increase in our second quarter revenue to 16.4 million. In addition, our aggressive cost reduction measures enabled us to return to profitability during the quarter. As previously announced, we put a program in place in the second half of 2019 to position us for increased operating efficiencies moving forward. Through this program, we made significant progress in reducing our SGA expenses through reductions of nearly 20 versus the first quarter of 2020 and more than one-third versus the prior year period.Mr. Sharng concluded, I am very pleased with our ability to manage elements within our control throughout this global crisis which led us to achieving positive growth in total revenue, gross profit, operating income and net income for the second quarter of 2020 over the prior quarter. Further, our strong balance sheet, ample liquidity position and conservative capital allocation philosophy, which is designed to help support our members and business, enabled us to continue returning value to our stockholders through our quarterly cash dividend. Id like to once again thank all of our leaders who have proven themselves time and time again in navigating difficult and complex operating environments such as this one. We remain cautiously optimistic the macroeconomic situation will continue to improve in the second half of 2020.Balance Sheet and Cash Flow Net cash used in operating activities was 1.0 million in the first six months of 2020, compared to 15.1 million in the first six months of 2019. Total cash and cash equivalents were 93.2 million at June 30, 2020, down slightly from 95.4 million at March 31, 2020. On August 3, 2020, the Companys Board of Directors declared a quarterly cash dividend of 0.20 on each share of common stock outstanding. The dividend will be payable on August 28, 2020 to stockholders of record as of August 18, 2020.Second Quarter 2020 Financial Results Conference CallManagement will host a conference call to discuss the second quarter 2020 financial results today, Wednesday, August 5, 2020 at 11:30 a.m. Eastern Time. The conference call details are as follows:Date:Wednesday, August 5, 2020 Time:11:30 a.m. Eastern Time 8:30 a.m. Pacific Time Dial-in:1-877-407-0789 Domestic 1-201-689-8562 International Conference ID:13706115 Webcast: For those unable to participate during the live broadcast, a replay of the call will also be available from 2:30 p.m. Eastern Time on August 5, 2020 through 11:59 p.m. Eastern Time on August 19, 2020 by dialing 1-844-512-2921 domestic and 1-412-317-6671 international and referencing the replay pin number: 13706115.About Natural Health Trends Corp.Natural Health Trends Corp. NASDAQ: NHTC is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, the Americas, and Europe. The Company markets premium quality personal care products under the NHT Global brand. Additional information can be found on the Companys website at Forward-Looking StatementsSafe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this press release do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause the Companys actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption Risk Factors in Natural Health Trends Corp.s Annual Report on Form 10-K filed on March 9, 2020 with the Securities and Exchange Commission SEC, as well as in subsequent reports filed this year with the SEC. The Company assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein. NATURAL HEALTH TRENDS CORP. CONSOLIDATED BALANCE SHEETS In thousands, except share data June 30, 2020 December 31, 2019 Unaudited ASSETS Current assets: Cash and cash equivalents93,206 96,035 Inventories 4,114 6,404 Other current assets 5,057 5,936 Total current assets 102,377 108,375 Property and equipment, net 599 735 Operating lease right-of-use assets 3,096 3,135 Restricted cash 513 3,390 Deferred tax asset 1,163 2,039 Other assets 729 823 Total assets108,477 118,497 LIABILITIES AND STOCKHOLDERS EQUITY Current liabilities: Accounts payable1,084 680 Accrued commissions 3,113 2,931 Other accrued expenses 1,763 2,387 Deferred revenue 2,645 4,506 Amounts held in eWallets 11,438 12,938 Operating lease liabilities 1,247 1,655 Other current liabilities 1,438 1,205 Total current liabilities 22,728 26,302 Income taxes payable 13,748 15,365 Deferred tax liability 203 202 Operating lease liabilities 1,963 1,564 Total liabilities 38,642 43,433 Stockholders equity: Preferred stock Common stock 13 13 Additional paid-in capital 86,102 86,102 Retained earnings 11,008 16,117 Accumulated other comprehensive loss 1,384 1,264 Treasury stock, at cost 25,904 25,904 Total stockholders equity 69,835 75,064 Total liabilities and stockholders equity108,477 118,497 NATURAL HEALTH TRENDS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED In thousands, except per share data Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Net sales16,404 23,428 31,352 42,756 Cost of sales 4,817 5,407 9,331 10,631 Gross profit 11,587 18,021 22,021 32,125 Operating expenses: Commissions expense 7,113 11,398 13,716 20,896 Selling, general and administrative expenses 4,291 6,627 9,570 13,942 Total operating expenses 11,404 18,025 23,286 34,838 Income loss from operations 183 4 1,265 2,713 Other income, net 125 373 218 805 Income loss before income taxes 308 369 1,047 1,908 Income tax provision benefit 274 28 508 382 Net income loss34 397 539 1,526 Net income loss per common share: Basic0.00 0.04 0.05 0.14 Diluted0.00 0.04 0.05 0.14 Weighted-average common shares outstanding: Basic 10,580 11,082 10,532 11,207 Diluted 11,424 11,135 10,532 11,207 NATURAL HEALTH TRENDS CORP. 