CORRECTING and REPLACING Mannatech Reports First Quarter 2013 Financial Results

  CORRECTING and REPLACING Mannatech Reports First Quarter 2013 Financial
  Results

CORRECTION...by Mannatech, Incorporated

Business Wire

COPPELL, Texas -- May 9, 2013

In a press release issued earlier today by Mannatech, Incorporated (NASDAQ:
MTEX), there was an incorrect statement in the fifth paragraph. The paragraph
should read “Recruiting increased 10.1% in the first quarter of 2013 as
compared to the first quarter of 2012. The number of new independent
associates and members for the first quarter of 2013 was approximately 23,900,
as compared to 21,700 in 2012. The total number of independent associates and
members based on a 12-month trailing period was approximately 231,000 as of
March 31, 2013, as compared to 227,000 as of March 31, 2012.” The corrected
release follows:

            MANNATECH REPORTS FIRST QUARTER 2013 FINANCIAL RESULTS

Mannatech, Incorporated  (NASDAQ: MTEX), a leading developer and provider of
nutritional supplements and skin care products based on Real Food Technology^®
solutions, today reported a net income of $0.6 million, or $0.24 per diluted
share, for the first quarter ending March 31, 2013, as compared to a net loss
of $1.4 million, or $0.53 per diluted share, for the first quarter of 2012.
Net sales for the first quarter of 2013 were $41.7 million, a decrease of 6.3%
as compared to $44.5 million in the first quarter of 2012.

Net sales for North America declined 8.9% to $20.5 million as compared to
$22.5 million in the first quarter of 2012. This decline was primarily due to
the reduction in the average revenue per order.

Net sales for Asia/Pacific declined 1.7% to $17.8 million as compared to $18.1
million in the first quarter 2012 due to unfavorable fluctuations in foreign
currency exchange rates. Excluding the fluctuation in foreign currency
exchange rates, Asia/Pacific net sales increased by 1.1%.

Net sales for Europe, the Middle East and Africa (“EMEA”) declined 12.8% to
$3.4 million as compared to $3.9 million in the first quarter of 2012. This
decline was in part due to fluctuations in foreign currency exchange rates and
in part due to the reduction in the number of orders processed. Excluding the
fluctuation in foreign currency exchange rates, EMEA net sales declined by
5.1% in the first quarter of 2013, as compared to the net sales for the first
quarter of 2012.

Recruiting increased 10.1% in the first quarter of 2013 as compared to the
first quarter of 2012. The number of new independent associates and members
for the first quarter of 2013 was approximately 23,900, as compared to 21,700
in 2012. The total number of independent associates and members based on a
12-month trailing period was approximately 231,000 as of March 31, 2013, as
compared to 227,000 as of March 31, 2012.

Dr. Robert Sinnott, CEO & Chief Science Officer, commented, “Our continued
efforts to increase operational efficiency and stay focused on targeted sales
initiatives has generated both net income and positive cash flow in the first
quarter for Mannatech. We remain dedicated to profitability as we work with
our independent associates to increase their sales success in our many global
markets.”

Mannatech will host a conference call to discuss the quarter’s results with
investors on Tuesday, May 14, 2013 at 9a.m. CDT, 10 a.m. EDT. The live call
will be webcast and can be accessed on Mannatech’s website at
http://ir.mannatech.com.

For those unable to listen to the live broadcast, a replay will be available
shortly after the call. The toll-free replay number is (855) 859-2056
(International (404) 537-3406); the Conference ID to access the call is
70350178.

Individuals interested in Mannatech’s products or in exploring its business
opportunity can learn more at Mannatech.com.

                                                             
CONSOLIDATED BALANCE SHEETS – (UNAUDITED)

(in thousands, except share and per share amounts)
                                                                             
ASSETS                                            March 31,     December 31,
                                                  2013          2012
Cash and cash equivalents                         $ 15,087      $   14,377
Restricted cash                                     1,513           1,515
Accounts receivable, net of allowance of $31        173             324
and $20 in 2013 and 2012, respectively
Income tax receivable                               893             884
Inventories, net                                    13,651          15,154
Prepaid expenses and other current assets           2,797           2,487
Deferred tax assets                                533            561
Total current assets                                34,647          35,302
Property and equipment, net                         4,270           4,825
Construction in progress                            9               8
Long-term restricted cash                           3,624           3,736
Other assets                                        3,093           3,187
Long-term deferred tax assets                      444            502
Total assets                                      $ 46,087      $   47,560
                                                                             
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current portion of capital leases and other       $ 1,118       $   780
financing arrangements
Accounts payable                                    4,101           4,154
Accrued expenses                                    7,101           6,348
Commissions and incentives payable                  5,203           7,373
Taxes payable                                       4,715           3,901
Current deferred tax liability                      177             179
Deferred revenue                                   1,253          1,486
Total current liabilities                           23,668          24,221
Capital leases, excluding current portion           819             938
Long-term deferred tax liabilities                  3               2
Other long-term liabilities                        1,723          2,178
Total liabilities                                   26,213          27,339
                                                                             
Commitments and contingencies
                                                                             
Shareholders’ equity:
Preferred stock, $0.01 par value, 1,000,000
shares authorized, no shares issued or              —               —
outstanding
Common stock, $0.0001 par value, 99,000,000
shares authorized, 2,768,972 shares issued and      —               —
2,647,735 shares outstanding as of March 31,
2013 and December 31, 2012, respectively
Additional paid-in capital                          42,567          42,614
Accumulated deficit                                 (6,276  )       (6,920   )
Accumulated other comprehensive loss                (1,621  )       (677     )
Less treasury stock, at cost, 121,237 shares in    (14,796 )      (14,796  )
2013 and 2012
Total shareholders’ equity                         19,874         20,221
Total liabilities and shareholders’ equity        $ 46,087      $   47,560
                                                                             

                                            
CONSOLIDATED STATEMENTS OF OPERATIONS – (UNAUDITED)

(in thousands, except per share information)
                                              
                                              Three months ended
                                              March 31,
                                              2013         2012
Net sales                                     $ 41,666       $ 44,502
Cost of sales                                  7,697        8,275  
Gross profit                                    33,969         36,227
                                                             
Operating expenses:
Commissions and incentives                      17,541         18,985
Selling and administrative expenses             8,631          9,655
Depreciation and amortization                   637            2,458
Other operating costs                          6,505        7,185  
Total operating expenses                       33,314       38,283 
                                                             
Income (loss) from operations                   655            (2,056 )
Interest income (expense)                       (13    )       (53    )
Other income, net                              417          892    
Income (loss) before income taxes              1,059        (1,217 )
                                                             
Provision for income taxes                     (415   )      (183   )
Net income (loss)                             $ 644         $ (1,400 )
                                                             
Income (loss) per common share:
Basic                                         $ 0.24        $ (0.53  )
Diluted                                       $ 0.24        $ (0.53  )
                                                             
Weighted-average common shares outstanding:
Basic                                          2,648        2,648  
Diluted                                        2,650        2,648  
                                                             

The approximate number of new and continuing independent associates and
members who purchased our packs or products during the twelve months ended
March 31 was as follows:

                              
             2013                2012
New          99,000   42.9  %   80,000   35.2  %
Continuing   132,000   57.1  %   147,000   64.8  %
Total        231,000   100.0 %   227,000   100.0 %
                                                 

About Mannatech

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. Mannatech is dedicated to its platform of
Social Entrepreneurship based on the foundation of promoting, aiding and
optimizing nutrition where it is needed most around the world. Mannatech’s
proprietary products are available through independent sales associates around
the globe including North America (United States, Canada, and Mexico),
Asia/Pacific (Australia, New Zealand, Japan, Taiwan, Singapore, the Republic
of Korea, and Hong Kong), and EMEA (Austria, Denmark, Germany, Norway, Sweden,
the Netherlands, the United Kingdom, Estonia, Finland, the Republic of
Ireland, Czech Republic, South Africa, and the Republic of Namibia). For more
information, visit Mannatech.com.

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 “anticipate,”
“believe,” “will,” “intend” 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 the expectations, statements, and assumptions reflected in these
forward-looking statements are reasonable, it cautions 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.

Contact:

Mannatech, Incorporated
Donna Giordano, 972-471-6512
Manager, Executive Office Administration
ir@mannatech.com
www.mannatech.com
 
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