Mannatech, Inc., a global health and lifestyle organization dedicated to changing lives for the betterment of the planet, officially released financial reports for the first quarter of 2021.
End of First Quarter Results
Net earnings for the intial quarter of 2021 were $38.3 million, up to $1.7 million, or 4.7 percent, from $36.6 million in the first quarter of 2020.
For the first quarter of 2021, income from operations rose to $2.8 million, up from $2.0 million in the same timeframe in 2020. In the first quarter of 2021, net income was $2.2 million, or $1.04 per diluted share, compared to $2.8 million, or $1.15 per diluted share, in the first quarter of 2020.
For the three months closing March 31, 2021, gross profit as a percentage of revenue rose to 81.2 percent, up from 80.9 percent for the same time in 2020. For the three months closing March 31, 2021, and 2020, commission and bonuses as a percentage of net revenue stayed stable at 40.7 percent.
Overall marketing and operating costs rose by $0.2 million to $7.1 million in the three months closing March 31, 2021, compared to $6.9 million in the same timeframe in 2020. A $0.3 million increase in staffing costs and a $0.1 million increase in publicity costs contributed to the rise in retail and operating expenditures, partly covered by a $0.1 million reduction in stock-based compensation and a $0.1 million decrease in contract labor costs.
Other operating expenses declined by $0.2 million, or 4.4 percent, to $5.1 million for the three months closing March 31, 2021, compared to $5.3 million for the same duration in 2020. The decline in running costs was primarily attributed to a $0.3 million reduction in travel and entertainment expenditures and a $0.1 million reduction in office expenses, offset in part by a $0.2 million increase in consultancy fees.
Provision for taxes was $0.3 million for the three months ending March 31, 2021, or an effective rate of 13.3 percent. Taxes were a $0.9 million benefit for the three months ending March 31, 2020. Because of the mix of earnings across jurisdictions and the resulting depreciation allowance reported on losses in some jurisdictions, the effective tax rate for the three months ended March 31, 2021, differed from the federal statutory rate.
The $1.2 million income reported in connection with the carryback of U.S. net operational costs as permitted by the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), passed March 27, 2020, contrasted from the federal statutory rate for the three months ended March 31, 2020. As of March 31, 2021 the current and ongoing independent partner and preferred client roles occupied by Mannatech network members and correlated with product sales was roughly 187,000 and 166,000, respectively.
In the initial quarter of 2021, relative to the first quarter of 2020, recruitment rose by 4.6 percent. In the very first quarter of 2021, the company’s network added nearly 19,538 new independent partners and preferred client roles, compared to 18,687 in 2020.
Mannatech, Incorporated is dedicated to changing lives by creating high-quality integrated wellness, weight loss, exercise, and skincare solutions sold through its national network of independent associates and members. With operations in 25 countries, the firm has been in business for more than 25 years.