Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Entity Information [Line Items] | ||
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity Current Reporting Status | Yes | |
Entity Registrant Name | MANNATECH INC | |
Entity Central Index Key | 0001056358 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 2,087,791 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 21,234 | $ 24,762 |
Restricted cash | 943 | 943 |
Accounts receivable, net of allowance of $787 and $708 in 2020 and 2019, respectively | 144 | 955 |
Income tax receivable | 825 | 220 |
Inventories, net | 13,512 | 10,152 |
Prepaid expenses and other current assets | 2,516 | 2,239 |
Deferred commissions | 1,729 | 1,758 |
Total current assets | 40,903 | 41,029 |
Property and equipment, net | 4,007 | 5,261 |
Construction in progress | 1,411 | 865 |
Long-term restricted cash | 4,049 | 5,295 |
Other assets | 11,712 | 9,592 |
Long-term deferred tax assets, net | 963 | 881 |
Total assets | 63,045 | 62,923 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Current portion of finance leases | 77 | 87 |
Accounts payable | 4,763 | 3,526 |
Accrued expenses | 7,823 | 8,209 |
Commissions and incentives payable | 9,807 | 9,728 |
Taxes payable | 1,080 | 2,187 |
Current notes payable | 689 | 739 |
Deferred revenue | 5,034 | 4,416 |
Total current liabilities | 29,273 | 28,892 |
Finance leases, excluding current portion | 152 | 176 |
Deferred tax liabilities | 3 | 3 |
Long-term notes payable | 0 | 363 |
Other long-term liabilities | 7,373 | 6,214 |
Total liabilities | 36,801 | 35,648 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $0.0001 par value, 99,000,000 shares authorized, 2,742,857 shares issued and 2,089,002 shares outstanding as of September 30, 2020 and 2,742,857 shares issued and 2,381,131 shares outstanding as of December 31, 2019 | 0 | 0 |
Additional paid-in capital | 33,765 | 34,143 |
Retained earnings (accumulated deficit) | 3,908 | (690) |
Accumulated other comprehensive income | 3,350 | 3,757 |
Treasury stock, at average cost, 653,855 shares as of September 30, 2020 and 361,726 shares as of December 31, 2019 | (14,779) | (9,935) |
Total shareholders’ equity | 26,244 | 27,275 |
Total liabilities and shareholders’ equity | $ 63,045 | $ 62,923 |
CONSOLIDATED BALANCE SHEETS - (
CONSOLIDATED BALANCE SHEETS - (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Accounts receivable, allowance for doubtful accounts | $ 787 | $ 708 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 99,000,000 | 99,000,000 |
Common stock, shares issued (in shares) | 2,742,857 | 2,742,857 |
Common stock, shares outstanding (in shares) | 2,089,002 | 2,381,131 |
Treasury stock, shares (in shares) | 653,855 | 361,726 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 37,966 | $ 39,656 | $ 112,218 | $ 118,340 |
Cost of sales | 9,328 | 7,711 | 25,044 | 23,253 |
Gross profit | 28,638 | 31,945 | 87,174 | 95,087 |
Operating expenses: | ||||
Commissions and incentives | 15,089 | 16,696 | 45,308 | 48,190 |
Selling and administrative expenses | 6,639 | 8,951 | 20,659 | 24,908 |
Depreciation and amortization expense | 468 | 519 | 1,525 | 1,564 |
Other operating costs | 5,062 | 5,214 | 15,180 | 16,721 |
Total operating expenses | 27,258 | 31,380 | 82,672 | 91,383 |
Income from operations | 1,380 | 565 | 4,502 | 3,704 |
Interest income (expense), net | 10 | (12) | 73 | (83) |
Other income (expense), net | 248 | (430) | 206 | 554 |
Income before income taxes | 1,638 | 123 | 4,781 | 4,175 |
Income tax (provision) benefit | (22) | (1,613) | 753 | (2,991) |
Net income (loss) | $ 1,616 | $ (1,490) | $ 5,534 | $ 1,184 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.77 | $ (0.62) | $ 2.42 | $ 0.50 |
Diluted (in dollars per share) | $ 0.76 | $ (0.62) | $ 2.38 | $ 0.47 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 2,098 | 2,391 | 2,286 | 2,393 |
Diluted (in shares) | 2,135 | 2,391 | 2,312 | 2,450 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,616 | $ (1,490) | $ 5,534 | $ 1,184 |
Foreign currency translations | 679 | (763) | (407) | (1,393) |
Comprehensive income (loss) | $ 2,295 | $ (2,253) | $ 5,127 | $ (209) |
CONSOLIDATED STATEMENT OF SHARE
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - (UNAUDITED) - USD ($) $ in Thousands | Total | Common stock Par value | Additional paid-in capital | Retained earnings (accumulated deficit) | Accumulated other comprehensive income | Treasury stock |
43921 at Dec. 31, 2018 | $ 25,324 | $ 0 | $ 33,939 | $ (2,782) | $ 4,337 | $ (10,170) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 688 | 688 | ||||
Payment of cash dividends | (303) | (303) | ||||
Charge related to stock-based compensation | 107 | 107 | ||||
Issuance of unrestricted shares | 280 | (141) | 421 | |||
Repurchase of common stock | (9) | (9) | ||||
Foreign currency translations | (441) | (441) | ||||
44104 at Mar. 31, 2019 | 25,646 | 0 | 33,905 | (2,397) | 3,896 | (9,758) |
43921 at Dec. 31, 2018 | 25,324 | 0 | 33,939 | (2,782) | 4,337 | (10,170) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,184 | |||||
Foreign currency translations | (1,393) | |||||
44104 at Sep. 30, 2019 | 24,645 | 0 | 34,061 | (2,499) | 2,944 | (9,861) |
43921 at Mar. 31, 2019 | 25,646 | 0 | 33,905 | (2,397) | 3,896 | (9,758) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,987 | 1,987 | ||||
Payment of cash dividends | (300) | (300) | ||||
Charge related to stock-based compensation | 160 | 160 | ||||
Repurchase of common stock | (58) | (58) | ||||
Foreign currency translations | (189) | (189) | ||||
44104 at Jun. 30, 2019 | 27,245 | 0 | 34,026 | (710) | 3,707 | (9,778) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Income Taxes Paid | 1 | 39 | 38 | |||
Net income | (1,490) | (1,490) | ||||
Payment of cash dividends | (299) | (299) | ||||
Charge related to stock-based compensation | 106 | 106 | ||||
Issuance of unrestricted shares | 0 | (71) | 71 | |||
Repurchase of common stock | (154) | (154) | ||||
Foreign currency translations | (763) | (763) | ||||
44104 at Sep. 30, 2019 | 24,645 | 0 | 34,061 | (2,499) | 2,944 | (9,861) |
43921 at Dec. 31, 2019 | 27,275 | 0 | 34,143 | (690) | 3,757 | (9,935) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 2,787 | 2,787 | ||||
Payment of cash dividends | (300) | (300) | ||||
Charge related to stock-based compensation | 83 | 83 | ||||
Issuance of unrestricted shares | 210 | (163) | 373 | |||
Repurchase of common stock | (86) | (86) | ||||
Foreign currency translations | (1,634) | (1,634) | ||||
44104 at Mar. 31, 2020 | 28,335 | 0 | 34,063 | 1,797 | 2,123 | (9,648) |
43921 at Dec. 31, 2019 | 27,275 | 0 | 34,143 | (690) | 3,757 | (9,935) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 5,534 | |||||
Foreign currency translations | (407) | |||||
44104 at Sep. 30, 2020 | 26,244 | 0 | 33,765 | 3,908 | 3,350 | (14,779) |
43921 at Mar. 31, 2020 | 28,335 | 0 | 34,063 | 1,797 | 2,123 | (9,648) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 1,130 | 1,130 | ||||
Payment of cash dividends | (299) | (299) | ||||
Charge related to stock-based compensation | 34 | 34 | ||||
Repurchase of common stock | (5,109) | (5,109) | ||||
Foreign currency translations | 548 | 548 | ||||
44104 at Jun. 30, 2020 | 24,639 | 0 | 33,764 | 2,628 | 2,671 | (14,424) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Income Taxes Paid | 0 | 333 | 333 | |||
Net income | 1,616 | 1,655 | ||||
Payment of cash dividends | (336) | (336) | ||||
Charge related to stock-based compensation | 1 | 1 | ||||
Repurchase of common stock | (355) | (355) | ||||
Foreign currency translations | 679 | 679 | ||||
44104 at Sep. 30, 2020 | $ 26,244 | $ 0 | $ 33,765 | $ 3,908 | $ 3,350 | $ (14,779) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 5,534 | $ 1,184 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,525 | 1,564 |
Operating Right Of Use Lease Liabilities Net | 1,746 | 1,219 |
Provision for inventory losses | 418 | 857 |
Provision for doubtful accounts | 116 | (32) |
Gain (Loss) on Disposition of Assets | 1 | (62) |
Charge related to stock-based compensation | 328 | 653 |
Deferred income taxes | (82) | 999 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 695 | (38) |
Income tax receivable | (605) | 172 |
Inventories | (3,778) | (199) |
Prepaid expenses and other current assets | (359) | 1,976 |
Deferred commissions | 29 | 93 |
Other assets | (1,097) | 850 |
Accounts payable | 1,237 | (2,049) |
Accrued expenses and other liabilities | (2,015) | (177) |
Taxes payable | (1,107) | 444 |
Commissions and incentives payable | 79 | (1,854) |
Deferred revenue | 618 | 428 |
Net cash provided by operating activities | 3,281 | 6,152 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (759) | (998) |
Proceeds from Sale of Productive Assets | (8) | |
Net cash used in investing activities | (767) | (998) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase of common stock | (5,550) | (221) |
Payment of cash dividends | (936) | (902) |
Proceeds from Other Debt | 2,244 | |
Repayments of Other Debt | (2,244) | |
Repayment of other notes payable and finance lease obligations | (373) | (968) |
Net cash used in financing activities | (6,859) | (2,091) |
Effect of currency exchange rate changes on cash and cash equivalents | (429) | (1,346) |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (4,774) | 1,717 |
Cash, cash equivalents, and restricted cash at the beginning of the period | 31,000 | 30,584 |
Cash, cash equivalents, and restricted cash at the end of the period | 26,226 | 32,301 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 2,769 | 2,916 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 47 | 236 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | 56 | 93 |
NonCashOperatingLeaseRightOfUseAssetsAndLeaseLiabilities | 0 | 4,730 |
Non Cash Finance Lease Right Of Use Assets And Lease Liabilities | 0 | 76 |
Income Taxes Paid, Net | 969 | 1,089 |
Capital Expenditures Incurred but Not yet Paid | $ 0 | $ 25 |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consist of raw materials, finished goods, and promotional materials. The Company provides an allowance for any slow-moving or obsolete inventories. Inventories as of September 30, 2020 and December 31, 2019, consisted of the following (in thousands) : September 30, 2020 December 31, 2019 Raw materials $ 2,716 $ 2,685 Finished goods 11,320 8,341 Inventory reserves for obsolescence (524) (874) Total $ 13,512 $ 10,152 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXESFor the three and nine months ended September 30, 2020, the Company’s effective tax rate was 1.3% and (15.8)%, respectively. For the three and nine months ended September 30, 2019, the Company’s effective tax rate was 1,311.4% and 71.6%, respectively. For the three and nine months ended September 30, 2020 and 2019, the Company's effective tax rate was determined based on the estimated annual effective income tax rate. The effective tax rate for the three months ended September 30, 2020 was different from the federal statutory rate due primarily to the mix of earnings across jurisdictions and adjustments to valuation allowances in certain jurisdictions. The effective tax rate for the nine months ended September 30, 2020 was different from the federal statutory rate due primarily to the $1.2 million benefit recorded in connection with the carryback of U.S. net operating losses as allowed by the CARES Act, enacted on March 27, 2020. The effective tax rates for the three and nine months ended September 30, 2019 were different from the federal statutory rate due primarily to the mix of earnings across jurisdictions, valuation allowance recorded on losses in certain jurisdictions and the one-time impact of the shift in the procurement supply chain from Switzerland to the United States effective July 1, 2019, which required a valuation allowance on Switzerland's deferred tax asset. Income tax related provisions of stimulus packages in foreign jurisdictions did not have a material impact to our recorded income tax benefit for the three and nine months ended September 30, 2020. We are evaluating the impact, if any, that stimulus packages in foreign jurisdictions may have on the Company's future operations, financial position, and liquidity in fiscal year 2020. |
EARNINGS (LOSS) PER SHARE
EARNINGS (LOSS) PER SHARE | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS (LOSS) PER SHARE | EARNINGS PER SHARE The Company calculates basic Earnings per Share ("EPS") by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted EPS also reflects the potential dilution that could occur if common stock were issued for awards outstanding under the Mannatech, Incorporated 2017 Stock Incentive Plan (described below). In determining the potential dilutive effect of outstanding stock options for each of the three and nine months ended September 30, 2020, the Company used the quarterly and nine month ended average common stock close price of $17.00 and $14.76 per share, respectively. For the three and nine months ended September 30, 2020, there were 2.10 million and 2.29 million weighted-average common shares outstanding used for the basic EPS calculation, respectively. For each of the three and nine months ended September 30, 2020, approximately 0.03 million shares subject to options were included in the calculation resulting in 2.13 million and 2.31 million dilutive shares used to calculate diluted EPS, respectively. For the three and nine months ended September 30, 2020, approximately 0.1 million and 0.8 million shares of the Company's common stock subject to options were excluded from the diluted EPS calculation as the effect would have been antidilutive. In determining the potential dilutive effect of outstanding stock options for each of the three and nine months ended September 30, 2019, the Company used the quarterly and nine month ended average common stock close price of $16.16 and $17.50 per share, respectively. For the three months ended September 30, 2019, approximately 0.3 million shares of the Company's common stock subject to options were excluded from the diluted EPS calculation, as the effect would have been antidilutive. The Company reported a net loss for three months ended September 30, 2019. For the nine months ended September 30, 2019, there were 2.39 million weighted-average common shares outstanding used for the basic EPS calculation. For the nine months ended September 30, 2019, approximately 0.06 million shares subject to options were included in the calculation resulting in 2.45 million dilutive shares used to calculate diluted EPS. For the nine months ended September 30, 2019, approximately 0.7 million of the Company's common stock subject to options were excluded from the diluted EPS calculation as the effect would have been antidilutive. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Company currently has one active stock-based compensation plan, the Mannatech, Incorporated 2017 Stock Incentive Plan, which was adopted by the Company’s Board of Directors (the "Board") on April 17, 2017 and was approved by its shareholders on June 8, 2017, and subsequently amended by the Board at its February 2019 special meeting, which amendment was approved by the Company's shareholders on June 11, 2019 (as amended, the "2017 Plan"). The 2017 Plan supersedes the Mannatech, Incorporated 2008 Stock Incentive Plan (as amended, the "2008 Plan"), which was set to expire on February 20, 2018. The Board has reserved a maximum of 370,000 shares of our common stock that may be issued under the 2017 Plan (subject to adjustments for stock splits, stock dividends or other changes in corporate capitalization). As of September 30, 2020, the Company had a total of 174,393 shares available for grant under the 2017 Plan, which expires on April 16, 2027. The 2017 Plan provides for grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock and performance stock units to our employees, board members, and consultants. However, only employees of the Company and its corporate subsidiaries are eligible to receive incentive stock options. The exercise price per share for all stock options will be no less than the market value of a share of common stock on the date of grant. Any incentive stock option granted to an employee owning more than 10% of our common stock will have an exercise price of no less than 110% of our common stock’s market value on the grant date. The majority of stock options vest over two three ten five The Company records stock-based compensation expense related to granting stock options in selling and administrative expenses. During the nine months ended September 30, 2020 and 2019, the Company granted 5,000 and 15,000 stock options, respectively. The fair value of stock options granted during the nine months ended September 30, 2020 and 2019 was approximately $4.00 and $6.88 per share, respectively. The Company recognized compensation expense as follows for the three and nine months ended September 30 (in thousands) : Three Months Ended Nine Months Ended 2020 2019 2020 2019 Total gross compensation expense $ 7 $ 106 $ 118 $ 374 Total tax benefit associated with compensation expense 1 4 8 20 Total net compensation expense $ 6 $ 102 $ 110 $ 354 As of September 30, 2020, the Company expects to record compensation expense in the future as follows (in thousands) : Three months Year ending December 31, 2021 2022 2023 Total gross unrecognized compensation expense $ 6 $ 15 $ 3 $ — Tax benefit associated with unrecognized compensation expense 1 3 1 — Total net unrecognized compensation expense $ 5 $ 12 $ 2 $ — |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Treasury Stock On May 29, 2020, the Company commenced a modified Dutch auction cash tender offer to purchase up to $5.0 million of its outstanding common stock, par value $0.0001 per share, at a per share price not greater than $17.00 nor less than $15.00, to each seller in cash, less any applicable withholding taxes and without interest (the "tender offer"). The tender offer expired on June 25, 2020. As a result of the tender offer, the Company accepted for purchase a total of 294,117 shares of its common stock, which were properly tendered and not properly withdrawn at the price of $17.00 per share, for an aggregate purchase price of $5.0 million, which was funded from cash on hand. Due to the tender offer being oversubscribed, the Company purchased only a prorated p ortion of those shares properly tendered by each tendering shareholder (other than "odd lot" holders whose shares were purchased on a priority basis) at or below the final per share purchase price. The final proration factor for the tender offer was approximately 86%. These common shares represented approximately 12.31% of the Company's total outstanding shares as of April 30, 2020. During the three months ended September 30, 2020, the Company repurchased 12,238 additional shares of its common stock outstanding at an average price of $17.06. During the three months ended September 30, 2019, the Company repurchased 9,560 additional shares of its common stock outstanding at an average price of $16.07. During the nine months ended September 30, 2020, the Company repurchased 323,660 shares of its common stock, which includes the 294,117 shares repurchased pursuant to the tender offer, at an average price of $16.92. During the nine months ended September 30, 2019, the Company repurchased 14,097 shares of its common stock, at an average price of $16.38. As of September 30, 2020 , the Company had 2,089,002 s hares of common stock outstanding. Accumulated Other Comprehensive Income Accumulated other comprehensive income, reflected in the Consolidated Statement of Shareholders’ Equity, represents net income plus the results of certain shareholders’ equity changes not reflected in the Consolidated Statements of Operations, such as foreign currency translation and certain pension and post-retirement benefit obligations. The after-tax components of accumulated other comprehensive income, are as follows (in thousands) : Foreign Pension Accumulated Balance as of December 31, 2019 $ 3,435 $ 322 $ 3,757 Current-period change (1) (407) — (407) Balance as of September 30, 2020 $ 3,028 $ 322 $ 3,350 (1) No material amounts reclassified from accumulated other comprehensive income. Dividends On February 14, 2020, the Board declared a dividend of $0.125 per share that was paid on March 27, 2020 to shareholders of record on March 13, 2020, for an aggregate amount of $0.3 million. On May 27, 2020, the Board declared a dividend of $0.125 per share that was paid on June 24, 2020 to shareholders of record on June 12, 2020, for an aggregate amount of $0.3 million. On August 28, 2020, the Board declared a dividend of $0.16 per share that was paid on September 29,2020 to shareholders of record on September 15, 2020, for an aggregate amount of $0.3 million. |
LITIGATION
LITIGATION | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
LITIGATION | LITIGATION Administrative Proceeding Mannatech Korea, Ltd. v. Busan Custom Office , Busan District Court, Korea On or before April 12, 2015, Mannatech Korea, Ltd. filed a suit against the Busan Custom Office (“BCO”) to challenge BCO’s method of calculation regarding its assessment notice issued on July 11, 2013. The assessment notice included an audit of the Company’s imported goods covering fiscal years 2008 through 2012 and required the Company to pay $1.0 million for this assessment, all of which was paid in January 2014. Both parties submitted a response to the Court’s inquiry on January 15, 2016. The final hearing for the case was held on May 26, 2016 where each party presented their respective arguments. The Court set the decision hearing on October 27, 2016, and the Court decided the case in the Company’s favor. However, on November 18, 2016, BCO filed an appeal to the Busan High Court. The first hearing occurred on March 31, 2017, and the second hearing occurred on April 21, 2017. The final hearing was held on June 2, 2017. The Court issued its decision on June 30, 2017 in favor of the BCO. The Company appealed this decision on August 24, 2017. On November 6, 2020, the Company received notice from counsel that the panel of justices assigned to this case conducted discussions on October 30, 2020. This is an indication, although not conclusive, that the Supreme Court may issue a decision by the end of the year or in the first quarter of 2021. This matter remains open. Litigation - Product Liability Meeja Kim, et al., v. Mannatech Korea and Eunbee Cho, Seoul Southern District Court 2020-Gadan-216374 On March 4, 2020, a complaint was filed against Mannatech Korea. Mannatech Korea was served on March 10, 2020. The plaintiffs are the surviving spouse and three children (the “Plaintiffs”) of Kong Seokhwan, a cancer patient who died in October 2017. The Plaintiffs allege that co-defendant and former independent associate, Eunbee Cho, instructed the deceased to take the Company’s products as treatment for cancer. Eunbee Cho was found guilty of fraud and began serving a sentence of one year and six months in November 2019. The Plaintiffs are seeking damages in the amount of 110 million KRW (USD $90,000.00) plus interest of 12% per year. Mannatech Korea has engaged local counsel to defend this matter. An evidentiary hearing was held on October 21, 2020. The next hearing is scheduled for December 9, 2020. It is not possible at this time to predict whether the Company will incur any liability, or to estimate the ranges of damages, if any, which may be incurred in connection with this matter. However, Mannatech Korea believes it has a valid defense and will vigorously defend this claim. This matter remains open. Ruiguo Ma v. MTEX Hong Kong Limited and Beili Guan, Case No. 2019-Jin-0116-Civil-2339, Binhai New District Court, Tianjin, China On or before September 2, 2019, MTEX Hong Kong received service of process of the above-captioned matter. Ruiguo Ma, (the "Plaintiff") is alleging that his child suffered tooth decay after consuming the Company's MannaBears product and underwent several surgeries. The Plaintiff is seeking damages of approximately $50,000 USD. The Company has engaged local counsel to defend this case. The Company has provided notice to its insurance carrier. At this time the potential damages do not meet the deductible; therefore, the case has not been tendered to the carrier. The first hearing occurred on September 11, 2019, and the second hearing occurred on October 30, 2019, where each party presented their respective arguments. On August 25, 2020, the court denied all of the Plaintiff's motions and granted judgment in favor of the MTEX Hong Kong. The Plaintiff appealed the decision on September 21, 2020. MTEX Hong Kong has engaged the same counsel to defend against the appeal. This matter remains open. Litigation in General The Company has incurred several claims in the normal course of business. The Company believes such claims can be resolved without any material adverse effect on our consolidated financial position, results of operations, or cash flows. The Company maintains certain liability insurance; however, certain costs of defending lawsuits are not covered by or only partially covered by its insurance policies, including claims that are below insurance deductibles. Additionally, insurance carriers could refuse to cover certain claims, in whole or in part. The Company accrues costs to defend itself from litigation as they are incurred. The outcome of litigation is uncertain, and despite management’s views of the merits of any litigation, or the reasonableness of the Company’s estimates and reserves, the Company’s financial statements could nonetheless be materially affected by an adverse judgment. The Company believes it has adequately reserved for the contingencies arising from current legal matters where an outcome was deemed to be probable, and the loss amount could be reasonably estimated. |
FAIR VALUE
FAIR VALUE | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The Company utilizes fair value measurements to record fair value adjustments to certain financial assets and to determine fair value disclosures. Fair Value Measurements and Disclosure (Topic 820) of the FASB establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories: • Level 1 – Quoted unadjusted prices for identical instruments in active markets. • Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets. • Level 3 – Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company. The primary objective of the Company’s investment activities is to preserve principal while maximizing yields without significantly increasing risk. The investment instruments held by the Company are money market funds and interest-bearing deposits for which quoted market prices are readily available. The Company considers these highly liquid investments to be cash equivalents. These investments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company does not have any material financial liabilities that were required to be measured at fair value on a recurring basis at September 30, 2020. The table below presents the recorded amount of financial assets measured at fair value (in thousands) on a recurring basis as of September 30, 2020 and December 31, 2019. September 30, 2020 Level 1 Level 2 Level 3 Total Assets Money Market Funds – JPMorgan Chase, US $ 2,345 $ — $ — $ 2,345 Interest bearing deposits – various banks 7,019 — — 7,019 Total assets $ 9,364 $ — $ — $ 9,364 Amounts included in: Cash and cash equivalents $ 4,850 $ — $ — $ 4,850 Restricted cash 679 — — 679 Long-term restricted cash 3,835 — — 3,835 Total $ 9,364 $ — $ — $ 9,364 December 31, 2019 Level 1 Level 2 Level 3 Total Assets Money Market Funds – Fidelity, US $ 5,000 $ — $ — $ 5,000 Interest bearing deposits – various banks 8,962 — — 8,962 Total assets $ 13,962 $ — $ — $ 13,962 Amounts included in: Cash and cash equivalents $ 8,636 $ — $ — $ 8,636 Restricted cash 679 — — 679 Long-term restricted cash 4,647 — — 4,647 Total $ 13,962 $ — $ — $ 13,962 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company's sole reporting segment is one where we sell proprietary nutritional supplements, skin care and anti-aging products, and weight-management and fitness products through network marketing distribution channels operating in twenty-four countries. Each of the business units receives associate fees or sells similar packs (in the case of Mexico and South Korea, where packs have not been replaced with associate fees, see Note 1, Organization and Summary of Significant Accounting Policies ) and possesses similar economic characteristics, such as selling prices and gross margins. In each country, the Company markets its products and pays commissions and incentives in similar market environments. The Company’s management reviews its financial information by country and focuses its internal reporting and analysis of revenues by pack sales and associate fees and product sales. The Company sells its products through its independent associates who occupy positions in our network and distribute products through similar distribution channels in each country. No single independent associate has ever accounted for more than 10% of the Company’s consolidated net sales. The Company also operates a non-direct selling business in mainland China. Our subsidiary in China, Meitai, is operating as a traditional retailer under a cross-border e-commerce model. Meitai cannot legally conduct a direct selling business in China unless it acquires a direct selling license in China. The Company operates facilities in eleven countries and sells product in twenty-five countries around the world. These facilities are located in the United States, Canada, Australia, the Netherlands, Japan, the Republic of Korea (South Korea), Taiwan, South Africa, Mexico, Hong Kong and China. Each facility services different geographic areas. We currently sell our products in three regions: (i) the Americas (the United States, Canada and Mexico); (ii) EMEA (Austria, the Czech Republic, Denmark, Estonia, Finland, Germany, the Republic of Ireland, Namibia, the Netherlands, Norway, South Africa, Spain, Sweden and the United Kingdom); and (iii) Asia/Pacific (Australia, Japan, New Zealand, the Republic of Korea, Singapore, Taiwan, Hong Kong and China). Consolidated net sales shipped to customers in these regions, along with pack or associate fee and product information for the three and nine months ended September 30, were as follows (in millions, except percentages) : Three Months Ended Nine Months Ended Region 2020 2019 2020 2019 Americas $ 11.4 30.0 % $ 11.8 29.7 % $ 34.1 30.4 % $ 36.1 30.5 % Asia/Pacific 23.0 60.5 % 24.3 61.2 % 67.9 60.5 % 71.9 60.8 % EMEA 3.6 9.5 % 3.6 9.1 % 10.2 9.1 % 10.3 8.7 % Totals $ 38.0 100.0 % $ 39.7 100.0 % $ 112.2 100.0 % $ 118.3 100.0 % Three Months Ended Nine Months Ended 2020 2019 2020 2019 Consolidated product sales $ 35.7 $ 38.7 $ 108.7 $ 115.8 Consolidated pack sales and associate fees 2.0 0.7 2.8 1.8 Consolidated other 0.3 0.3 0.7 0.7 Consolidated total net sales $ 38.0 $ 39.7 $ 112.2 $ 118.3 Long-lived assets, which include property and equipment and construction in process for the Company and its subsidiaries, as of September 30, 2020 and December 31, 2019, reside in the following regions, as follows (in millions) : Region September 30, 2020 December 31, 2019 Americas $ 4.5 $ 5.1 Asia/Pacific 0.9 1.0 EMEA — — Total $ 5.4 $ 6.1 Inventory balances, which consist of raw materials, finished goods, and promotional materials, as offset by the allowance for slow moving or obsolete inventories, reside in the following regions (in millions) : Region September 30, 2020 December 31, 2019 Americas $ 6.1 $ 5.4 Asia/Pacific 5.9 3.8 EMEA 1.5 1.0 Total $ 13.5 $ 10.2 |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | LEASES The Company has entered into contractual lease arrangements to rent office space and equipment from third-party lessors. On January 1, 2019, the Company adopted ASC Topic 842, Leases , ("Topic 842") and related disclosures. See note 5 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2019. As of September 30, 2020, the Company had net operating lease right-of-use (ROU) assets of $7.0 million and net finance lease right-of-use assets of $0.3 million. At September 30, 2020, our operating lease liabilities were $8.3 million and our finance lease liabilities were $0.2 million. The weighted-average remaining lease term and discount rate related to the Company’s operating lease liabilities as of September 30, 2020 were 5.56 years and 4.2%, respectively. The weighted-average remaining lease term and discount rate related to the Company’s finance lease liabilities as of September 30, 2020 were 2.92 years and 5.6%, respectively. The Company's lease discount rates are generally based on estimates of its incremental borrowing rate, as discount rates implicit in the Company's leases cannot be readily determined. As of September 30, 2020 and 2019 our leased assets and liabilities consisted of the following (in thousands): Leases Classification September 30, 2020 September 30, 2019 Right-of-use assets Operating leases Other assets $ 6,960 $ 6,410 Finance leases Property and equipment, net 309 383 Total right-of-use assets $ 7,269 $ 6,793 Current portion of lease liabilities Operating leases Accrued expenses $ 1,927 $ 1,929 Finance leases Current portion of finance leases 77 99 Long-term portion of lease liabilities Operating leases Other long-term liabilities 6,379 5,759 Finance leases Finance leases, excluding current portion 152 201 Total lease liabilities $ 8,535 $ 7,988 As of September 30, 2020 the Company's minimum future lease payments on operating and financing leases were as follows (in thousands): September 30, 2020 Maturity of lease liabilities Operating Leases Financing Leases Remaining 2020 $ 625 $ 24 2021 2,201 91 2022 1,737 73 2023 1,174 45 2024 1,259 21 2025 872 1 Thereafter 1,528 — Total minimum lease payments $ 9,396 $ 255 Imputed interest (1,090) (26) Present value of minimum lease payments $ 8,306 $ 229 |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTSOn April 10, 2020, the Company received loan proceeds of $2,243,687 (the “Loan”) under the Paycheck Protection Program (“PPP”). The PPP was established under the recent CARES Act and is administered by the U.S. Small Business Administration. The Loan to the Company was made through JPMorgan Chase Bank, N. A., the Company’s existing banker (the “Lender”). At the time the Company applied for and received the Loan, the Company planned to use the Loan proceeds for covered payroll costs, rent and utilities in accordance with the relevant terms and conditions of the CARES Act. After the Company received the proceeds of the Loan, the SBA provided subsequent guidance interpreting the PPP. Based on such subsequent guidance, the Company made the determination to repay the Loan in full, which it did on April 30, 2020. |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements and footnotes include the accounts of Mannatech and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements in accordance with GAAP requires the use of estimates that affect the reported value of assets, liabilities, revenues and expenses. These estimates are based on historical experience and various other factors. The Company continually evaluates the information used to make these estimates as the business and economic environment changes. Historically, actual results have not varied materially from the Company’s estimates and the Company does not currently anticipate a significant change in its assumptions related to these estimates. However, actual results may differ from these estimates under different assumptions or conditions. The use of estimates is pervasive throughout the consolidated financial statements, but the accounting policies and estimates considered the most significant are described in this note to the consolidated financial statements, Organization and Summary of Significant Accounting Policies . |
Cash and Cash Equivalents | Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company includes in its cash and cash equivalents credit card receivables due from its credit card processor, as the cash proceeds from credit card receivables are received within 24 to 72 hours. As of September 30, 2020 and December 31, 2019, credit card receivables were $2.5 million and $0.7 million, respectively. As of September 30, 2020 and December 31, 2019, cash and cash equivalents held in bank accounts in foreign countries totaled $15.9 million and $18.2 million, respectively. The Company invests cash in liquid instruments, such as money market funds and interest-bearing deposits. The Company also holds cash in high quality financial institutions and does not believe it has an excessive exposure to credit concentration risk. |
Restricted Cash | The Company is required to restrict cash for: (i) direct selling insurance premiums and credit card sales in the Republic of Korea; (ii) reserve on credit card sales in the United States and Canada; and (iii) the Australia building lease collateral. As of September 30, 2020 and December 31, 2019, our total restricted cash was $5.0 million and $6.2 million, respectively. |
Accounts Receivable | Accounts Receivable Accounts receivable are carried at their estimated collectible amounts. Receivables are created upon shipment of an order if the credit card payment is rejected or does not match the order total. As of September 30, 2020 and December 31, 2019, receivables consisted primarily of amounts due from preferred customers and associates. As of September 30, 2020 and December 31, 2019, the Company's accounts receivable balance (net of allowance) was $0.1 million and $1.0 million, respectively. The Company periodically evaluates its receivables for collectability based on historical experience, recent account activities, and the length of time receivables are past due and writes-off receivables when they become uncollectible. As of September 30, 2020 and December 31, 2019, the Company held an allowance for doubtful accounts of $0.8 million and $0.7 million, respectively. |
Inventories | Inventories Inventories consist of raw materials, finished goods, and promotional materials that are stated at the lower of cost (using standard costs that approximate average costs) or net realizable value. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are reserved or written off. |
Other Assets | Other Assets As of September 30, 2020 and December 31, 2019, other assets were $11.7 million and $9.6 million, respectively. These amounts primarily consisted of right-of-use assets related to operating leases for office space and equipment, net of lease incentives, of $7.0 million and $5.6 million as of September 30, 2020 and December 31, 2019, respectively. See Note 8, Leases for more information on these assets. Also included in Other Assets were deposits for building leases in various locations of $2.1 million and $2.2 million as of September 30, 2020 and December 31, 2019, respectively. Additionally, included in the September 30, 2020 and December 31, 2019 balances were $2.4 million and $1.6 million, respectively, representing a deposit with Mutual Aid Cooperative and Consumer in the Republic of Korea, an organization established by the Republic of Korea’s Fair Trade Commission to protect consumers who participate in network marketing activities. Finally, each of the September 30, 2020 and December 31, 2019 balances included $0.2 million of indefinite lived intangible assets relating to the Manapol® powder trademark. |
Notes Payable | Notes Payable Notes payable were $0.7 million and $1.1 million as of September 30, 2020 and December 31, 2019, respectively, as a result of funding from a capital financing agreement related to our investment in leasehold improvements, computer hardware and software and other financing arrangements. At each of September 30, 2020 and December 31, 2019 , the current portion was $0.7 million. |
Revenue Recognition | Revenue Recognition The Company’s revenue is derived from sales of individual products and associate fees or, in certain geographic markets, starter packs. Substantially all of the Company’s product sales are made at published wholesale prices to associates and preferred customers. The Company records revenue net of any sales taxes and records a reserve for expected sales returns based on its historical experience. The Company recognizes revenue from shipped products when control of the product transfers to the customer, thus the performance obligation is satisfied. Corporate-sponsored event revenue is recognized when the event is held. Revenues from associate fees relate to providing associates with the right to earn commissions, benefits and incentives for an annual period. Revenue from software tools included in the first contractual year is recognized over three Contracts with Multiple Performance Obligations for recognition guidelines). Almost all orders are paid via credit card. See Note 10, Segment Information, for disaggregation of revenues by geographic segment and type. The Company collected associate fees within the United States, Canada, South Africa, Japan, Australia, New Zealand, Singapore, Hong Kong, Taiwan, Austria, the Czech Republic, Denmark, Estonia, Finland, Germany, the Republic of Ireland, the Netherlands, Norway, Spain, Sweden and the United Kingdom. Contracts with Multiple Performance Obligations Orders placed by associates or preferred customers constitute our contracts. Product sales placed in the form of an automatic order contain two performance obligations: (a) the sale of the product and (b) the loyalty program. For these contracts, the Company accounts for each of these obligations separately as they are each distinct. The transaction price is allocated between the product sale and the loyalty program on a relative standalone selling price basis. Sales placed through a one-time order contain only the first performance obligation noted above - the sale of the product. The Company provides associates with access to a complimentary three-month package for the Success Tracker TM and Mannatech+ online business tools with the first payment of an associate fee. The first payment of an associate fee contains three performance obligations: (a) the associate fee, whereby the Company provides an associate with the right to earn commissions, bonuses and incentives for a year; (b) three months of complimentary access to utilize the Success Tracker™ online tool; and (c) three months of complimentary access to utilize the Mannatech+ online business tool. The transaction price is allocated between the three performance obligations on a relative standalone selling price basis. Associates do not have complimentary access to online business tools after the first contractual period. With regards to both of the aforementioned contracts, the Company determines the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of the contracts. |
Commissions and Incentives | Commissions and Incentives Associates earn commissions and incentives based on their direct and indirect commissionable net sales over each month of the fiscal year. The Company accrues commissions and incentives when earned by associates and pays commissions on product and pack sales on a monthly basis. |
Comprehensive Income and Accumulated Other Comprehensive Income | Comprehensive Income and Accumulated Other Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources and includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. The Company’s comprehensive income consists of the Company’s net income, foreign currency translation adjustments from its Japan, Republic of Korea, Taiwan, Denmark, Norway, Sweden, Colombia, Mexico and China operations, remeasurement of intercompany balances classified as equity in its Korea, Mexico, Colombia, and Cyprus operations, and changes in the pension obligation for its Japanese employees. |
Recently Adopted and Issued But Not Yet Effective Accounting Pronouncements | Recently Adopted Accounting Pronouncements The Company adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ("ASU 2016-02") as of January 1, 2019 and applied it on a modified retrospective basis approach and elected to not adjust periods prior to January 1, 2019. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the carry forward of the historical lease classification. This new standard requires companies to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The adoption increased assets, net of incentive, by $4.7 million and liabilities by $6.1 million on our consolidated balance sheets and did not have a significant impact on our consolidated statement of operations and statements of cash flows. These leases primarily relate to office buildings and office equipment. See Note 8, Leases for more information. In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Income Statement - Reporting Comprehensive Income, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220) ("ASU 2018-02") , which amended its standard on comprehensive income to provide an option for an entity to reclassify the stranded tax effects of the Tax Cuts and Jobs Act (the "TCJA") that was passed in December of 2017 from accumulated other comprehensive income directly to retained earnings. The stranded tax effects result from the remeasurement of deferred tax assets and liabilities which were originally recorded in comprehensive income but whose remeasurement is reflected in the income statement. This is a one-time amendment applicable only to the changes resulting from the TCJA. The Company adopted this standard on January 1, 2019. The overall financial impact of adopting this standard did not have a material effect on our consolidated financial statements. Accounting Pronouncements Issued But Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") . This standard adds to U.S. GAAP an impairment model (known as the current expected credit loss ("CECL") model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is intended to result in the more timely recognition of losses. Under the CECL model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications) from the date of initial recognition of the financial instrument. Measurement of expected credit losses are to be based on relevant forecasts that affect collectability. The scope of financial assets within the CECL methodology is broad and includes trade receivables from certain revenue transactions and certain off-balance sheet credit exposures. Different components of the guidance require modified retrospective or prospective adoption. In November 2019, the FASB issued ASU 2019-10, Financial Instruments—Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) ("ASU 2019-10") which defers the effective date for smaller reporting companies by three years to December 15, 2022 for fiscal years, and interim periods within those fiscal years, beginning after that date. Accordingly, this standard will be effective for the Company as of January 1, 2023. While our review is ongoing, we believe ASU 2016-13 will only have applicability to our receivables from revenue transactions. Under ASC 606, revenue is recognized when, among other criteria, it is probable that the entity will collect the consideration to which it is entitled for goods or services transferred to a customer. At the point that trade receivables are recorded, they become subject to the CECL model and estimates of expected credit losses on trade receivables over their contractual life will be required to be recorded at inception based on historical information, current conditions, and reasonable and supportable forecasts. The Company is continuing to evaluate whether the new guidance will have an impact on our consolidated financial statements or existing internal controls. Other recently issued accounting pronouncements did not or are not believed by management to have a material impact on the Company’s present or future financial statements. |
Fair Value | The Company utilizes fair value measurements to record fair value adjustments to certain financial assets and to determine fair value disclosures. Fair Value Measurements and Disclosure (Topic 820) of the FASB establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories: • Level 1 – Quoted unadjusted prices for identical instruments in active markets. • Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets. • Level 3 – Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company. |
Accrued Expenses | Accrued Expenses As of September 30, 2020 and December 31, 2019, accrued expenses were $7.8 million and $8.2 million, respectively. These amounts primarily consisted of $2.1 million and $2.3 million representing employee benefits, which included accrued wages, bonus and severance as of September 30, 2020 and December 31, 2019, respectively. Also included in the September 30, 2020 and December 31, 2019 balances were non-inventory accrued liabilities of $2.0 million and $2.2 million, respectively. Additionally, included in the September 30, 2020 and December 31, 2019 balances were $1.9 million and $1.6 million for the current portion of operating lease liabilities, respectively, and $1.0 million and $0.9 million for accrued auditing and accounting fees, respectively. At September 30, 2020 and December 31, 2019 other accrued expenses were $0.8 million and $1.2 million, respectively. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation of cash, cash equivalents, and restricted cash | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company's consolidated balance sheets to the total amount presented in the consolidated statement of cash flows (in thousands) : September 30, 2020 December 31, 2019 Cash and cash equivalents at beginning of period $ 24,762 $ 21,845 Current restricted cash at beginning of period 943 1,514 Long-term restricted cash at beginning of period 5,295 7,225 Cash, cash equivalents, and restricted cash at beginning of period $ 31,000 $ 30,584 Cash and cash equivalents at end of period $ 21,234 $ 24,762 Current restricted cash at end of period 943 943 Long-term restricted cash at end of period 4,049 5,295 Cash, cash equivalents, and restricted cash at end of period $ 26,226 $ 31,000 |
Loyalty deferred revenue | The deferred revenue associated with the loyalty program at September 30, 2020 and December 31, 2019 was $3.2 million and $3.1 million, respectively. Loyalty program (in thousands) Loyalty deferred revenue as of January 1, 2019 $ 4,231 Loyalty points forfeited or expired (4,348) Loyalty points used (9,127) Loyalty points vested 11,320 Loyalty points unvested 1,051 Loyalty deferred revenue as of December 31, 2019 $ 3,127 Loyalty deferred revenue as of January 1, 2020 $ 3,127 Loyalty points forfeited or expired (2,601) Loyalty points used (6,879) Loyalty points vested 8,404 Loyalty points unvested 1,145 Loyalty deferred revenue as of September 30, 2020 $ 3,196 |
Sales return reserve | For the nine months ended September 30, 2020 our sales return reserve consisted of the following (in thousands): Sales reserve as of January 1, 2019 $ 76 Provision related to sales made in current period 1,037 Adjustment related to sales made in prior periods 31 Actual returns or credits related to current period (973) Actual returns or credits related to prior periods (103) Sales reserve as of December 31, 2019 $ 68 Sales reserve as of January 1, 2020 $ 68 Provision related to sales made in current period 722 Adjustment related to sales made in prior periods 5 Actual returns or credits related to current period (647) Actual returns or credits related to prior periods (68) Sales reserve as of September 30, 2020 $ 80 |
Other Noncurrent Liabilities | Other Long-Term Liabilities Other long-term liabilities were $7.4 million and $6.2 million as of September 30, 2020 and December 31, 2019, respectively. As of September 30, 2020 and December 31, 2019, the balance is primarily composed of long-term operating lease obligations of $6.4 million and $5.3 million, respectively. See Note 8, Leases for more information. Additionally, as of September 30, 2020 and December 31, 2019, the Company recorded $0.2 million in other long-term liabilities related to uncertain income tax positions (see Note 7, Income Taxes, of the Company’s 2019 Annual Report). Certain operating leases for the Company’s regional office facilities contain a restoration clause that requires the Company to restore the premises to its original condition. At each of September 30, 2020 and December 31, 2019, accrued restoration costs related to these leases amounted to $0.3 million. At each of September 30, 2020 and December 31, 2019, the Company also recorded a long-term liability for estimated defined benefit obligation related to a non-U.S. defined benefit plan for its Japan operations of $0.3 million (see Note 9, Employee Benefit Plans |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventories as of September 30, 2020 and December 31, 2019, consisted of the following (in thousands) : September 30, 2020 December 31, 2019 Raw materials $ 2,716 $ 2,685 Finished goods 11,320 8,341 Inventory reserves for obsolescence (524) (874) Total $ 13,512 $ 10,152 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of compensation cost | The Company recognized compensation expense as follows for the three and nine months ended September 30 (in thousands) : Three Months Ended Nine Months Ended 2020 2019 2020 2019 Total gross compensation expense $ 7 $ 106 $ 118 $ 374 Total tax benefit associated with compensation expense 1 4 8 20 Total net compensation expense $ 6 $ 102 $ 110 $ 354 |
Schedule of unrecognized compensation expense | As of September 30, 2020, the Company expects to record compensation expense in the future as follows (in thousands) : Three months Year ending December 31, 2021 2022 2023 Total gross unrecognized compensation expense $ 6 $ 15 $ 3 $ — Tax benefit associated with unrecognized compensation expense 1 3 1 — Total net unrecognized compensation expense $ 5 $ 12 $ 2 $ — |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Components of accumulated other comprehensive income | The after-tax components of accumulated other comprehensive income, are as follows (in thousands) : Foreign Pension Accumulated Balance as of December 31, 2019 $ 3,435 $ 322 $ 3,757 Current-period change (1) (407) — (407) Balance as of September 30, 2020 $ 3,028 $ 322 $ 3,350 (1) No material amounts reclassified from accumulated other comprehensive income. |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value, assets measured on recurring basis | The table below presents the recorded amount of financial assets measured at fair value (in thousands) on a recurring basis as of September 30, 2020 and December 31, 2019. September 30, 2020 Level 1 Level 2 Level 3 Total Assets Money Market Funds – JPMorgan Chase, US $ 2,345 $ — $ — $ 2,345 Interest bearing deposits – various banks 7,019 — — 7,019 Total assets $ 9,364 $ — $ — $ 9,364 Amounts included in: Cash and cash equivalents $ 4,850 $ — $ — $ 4,850 Restricted cash 679 — — 679 Long-term restricted cash 3,835 — — 3,835 Total $ 9,364 $ — $ — $ 9,364 December 31, 2019 Level 1 Level 2 Level 3 Total Assets Money Market Funds – Fidelity, US $ 5,000 $ — $ — $ 5,000 Interest bearing deposits – various banks 8,962 — — 8,962 Total assets $ 13,962 $ — $ — $ 13,962 Amounts included in: Cash and cash equivalents $ 8,636 $ — $ — $ 8,636 Restricted cash 679 — — 679 Long-term restricted cash 4,647 — — 4,647 Total $ 13,962 $ — $ — $ 13,962 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Net sales shipped to customers by geographic region | Consolidated net sales shipped to customers in these regions, along with pack or associate fee and product information for the three and nine months ended September 30, were as follows (in millions, except percentages) : Three Months Ended Nine Months Ended Region 2020 2019 2020 2019 Americas $ 11.4 30.0 % $ 11.8 29.7 % $ 34.1 30.4 % $ 36.1 30.5 % Asia/Pacific 23.0 60.5 % 24.3 61.2 % 67.9 60.5 % 71.9 60.8 % EMEA 3.6 9.5 % 3.6 9.1 % 10.2 9.1 % 10.3 8.7 % Totals $ 38.0 100.0 % $ 39.7 100.0 % $ 112.2 100.0 % $ 118.3 100.0 % |
Product and pack information | Three Months Ended Nine Months Ended 2020 2019 2020 2019 Consolidated product sales $ 35.7 $ 38.7 $ 108.7 $ 115.8 Consolidated pack sales and associate fees 2.0 0.7 2.8 1.8 Consolidated other 0.3 0.3 0.7 0.7 Consolidated total net sales $ 38.0 $ 39.7 $ 112.2 $ 118.3 |
Long-lived assets, by geographic region | Long-lived assets, which include property and equipment and construction in process for the Company and its subsidiaries, as of September 30, 2020 and December 31, 2019, reside in the following regions, as follows (in millions) : Region September 30, 2020 December 31, 2019 Americas $ 4.5 $ 5.1 Asia/Pacific 0.9 1.0 EMEA — — Total $ 5.4 $ 6.1 |
Inventory balances, by region | Inventory balances, which consist of raw materials, finished goods, and promotional materials, as offset by the allowance for slow moving or obsolete inventories, reside in the following regions (in millions) : Region September 30, 2020 December 31, 2019 Americas $ 6.1 $ 5.4 Asia/Pacific 5.9 3.8 EMEA 1.5 1.0 Total $ 13.5 $ 10.2 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule Of Maturities Of Operating And Finance Leases Liabilities [Table Text Block] | As of September 30, 2020 the Company's minimum future lease payments on operating and financing leases were as follows (in thousands): September 30, 2020 Maturity of lease liabilities Operating Leases Financing Leases Remaining 2020 $ 625 $ 24 2021 2,201 91 2022 1,737 73 2023 1,174 45 2024 1,259 21 2025 872 1 Thereafter 1,528 — Total minimum lease payments $ 9,396 $ 255 Imputed interest (1,090) (26) Present value of minimum lease payments $ 8,306 $ 229 |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | Jun. 25, 2020shares | Sep. 30, 2020USD ($)region | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Number of regions in which company sells products | region | 3 | |||
Credit card receivables | $ 2,500,000 | $ 700,000 | ||
Cash and cash equivalents held in foreign bank accounts | 15,900,000 | 18,200,000 | ||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Line Items] | ||||
Restricted cash | 5,000,000 | 6,200,000 | ||
Accounts receivable, net of allowance | 144,000 | 955,000 | ||
Allowance for doubtful accounts | 800,000 | 700,000 | ||
Other assets | 11,712,000 | 9,592,000 | ||
Deposits for building leases | 2,100,000 | 2,200,000 | ||
Fair trade commission deposits | 2,400,000 | 1,600,000 | ||
Indefinite lived intangible assets | 200,000 | |||
Notes payable | 700,000 | 1,100,000 | ||
Notes payable, current portion | 689,000 | 739,000 | ||
Other long-term liabilities | 7,373,000 | 6,214,000 | ||
Uncertain income tax position | 200,000 | 200,000 | ||
Accrued lease restoration costs | 300,000 | 300,000 | ||
Defined benefit plan obligation | 300,000 | 300,000 | ||
Deferred commissions | 1,729,000 | 1,758,000 | ||
Amortization of deferred commissions | 1,000,000 | |||
Deferred revenue | 5,034,000 | 4,416,000 | ||
Loyalty deferred revenue, ending balance | $ 3,196,000 | |||
Percentage of sale returns | 1.50% | |||
Accrued expenses | $ 7,823,000 | 8,209,000 | ||
Accrued Employee Benefits, Current | 2,100,000 | 2,300,000 | ||
Non-inventory accrual, current | 2,000,000 | 2,200,000 | ||
Accrued Professional Fees | 1,000,000 | 900,000 | ||
Other Accrued Liabilities, Current | 800,000 | 1,200,000 | ||
Accrued expenses | 7,823,000 | 8,209,000 | ||
Other Assets, Current | 11,700,000 | 9,600,000 | ||
Deferred Revenue, Revenue Recognized | 2,600,000 | |||
Purchased shares | shares | 294,117 | |||
Other Borrowings | 2,200,000 | $ 2,243,687 | ||
South Korea | ||||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Line Items] | ||||
Net assets | $ 17,800,000 | $ 19,200,000 | ||
Software Tools | ||||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Line Items] | ||||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months | |||
Associate Fees | ||||
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Line Items] | ||||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 12 months |
ORGANIZATION AND SUMMARY OF S_4
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Cash And Cash Equivalents, Resticted Cash And Restricted Cash Equivalents [Roll Forward] | ||||
Cash and cash equivalents | $ 21,234 | $ 24,762 | $ 21,845 | |
Restricted Cash and Cash Equivalents, Current | 943 | 943 | 1,514 | |
Restricted Cash and Cash Equivalents, Noncurrent | 4,049 | 5,295 | 7,225 | |
Cash, cash equivalents and restricted cash | $ 26,226 | $ 31,000 | $ 32,301 | $ 30,584 |
ORGANIZATION AND SUMMARY OF S_5
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loyalty Deferred Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Loyalty program | |||
Loyalty deferred revenue, beginning balance | $ 3,127 | $ 3,127 | |
Loyalty points forfeited or expired | (4,348) | (2,601) | |
Loyalty points used | (9,127) | (6,879) | |
Loyalty points vested | 11,320 | 8,404 | |
Loyalty points unvested | $ 1,051 | 1,145 | |
Loyalty deferred revenue, ending balance | 3,196 | ||
Deferred commissions | $ 1,729 | $ 1,758 |
ORGANIZATION AND SUMMARY OF S_6
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Sales Returns (Details) - Allowance for Sales Returns - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Sales reserves, beginning balance | $ 68 | $ 76 |
Provision related to sales made in current period | 722 | 1,037 |
Adjustment related to sales made in prior periods | 5 | 31 |
Actual returns or credits related to current period | (647) | (973) |
Actual returns or credits related to prior periods | (68) | (103) |
Sales reserves, ending balance | $ 80 | $ 68 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,716 | $ 2,685 |
Finished goods | 11,320 | 8,341 |
Inventory reserves for obsolescence | (524) | (874) |
Total | $ 13,512 | $ 10,152 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 1.30% | 1311.40% | (15.80%) | 71.60% |
U.S. Net Operating Loss Carryback | $ 1.2 |
EARNINGS (LOSS) PER SHARE (Deta
EARNINGS (LOSS) PER SHARE (Details) - $ / shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 30 | 60 | ||
Diluted (in shares) | 2,135 | 2,391 | 2,312 | 2,450 |
Average common stock closing price (in dollars per share) | $ 17 | $ 16.16 | $ 14.76 | $ 17.50 |
Basic (in shares) | 2,098 | 2,391 | 2,286 | 2,393 |
Antidilutive securities excluded from earnings per share, amount (in shares) | 100 | 300 | 800 | 700 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 29, 2020 | Aug. 28, 2020 | Jun. 25, 2020 | Jun. 12, 2020 | May 27, 2020 | Mar. 13, 2020 | Feb. 14, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Apr. 17, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of shares authorized (in shares) | 370,000 | |||||||||||
Number of shares available for grant (in shares) | 174,393 | 174,393 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 5,000 | 15,000 | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ 4 | $ 6.88 | ||||||||||
Treasury Stock, Shares, Acquired | 12,238 | 9,560 | 323,660 | 14,097 | ||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 17.06 | $ 16.07 | $ 16.92 | $ 16.38 | ||||||||
Purchased shares | 294,117 | |||||||||||
Dividend payable per share (in dollars per share) | $ 0.16 | $ 0.125 | $ 0.125 | |||||||||
Dividends paid | $ 300 | $ 300 | $ 300 | |||||||||
Minimum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentages of stock option ownership considered for higher exercise price of option | 10.00% | |||||||||||
Vesting period of stock options | 2 years | |||||||||||
Maximum | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Option exercise price as percentages of closing exercise price of stock for specific shareholders | 110.00% | |||||||||||
Vesting period of stock options | 3 years | |||||||||||
Stock Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expiration period of stock option plan | 10 years | |||||||||||
Incentive Stock Options | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Expiration period of stock option plan | 5 years |
STOCK-BASED COMPENSATION - Reco
STOCK-BASED COMPENSATION - Recognized Compensation Expense (Details) - Stock Options - 2017 Plan - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total gross compensation expense | $ 7 | $ 106 | $ 118 | $ 374 |
Total tax benefit associated with compensation expense | 1 | 4 | 8 | 20 |
Total net compensation expense | 6 | $ 102 | 110 | $ 354 |
Total gross unrecognized compensation expense | ||||
Six months ending December 31, 2018 | 6 | 6 | ||
2019 | 15 | 15 | ||
2020 | 3 | 3 | ||
2021 | 0 | 0 | ||
Tax benefit associated with unrecognized compensation expense | ||||
Six months ending December 31, 2018 | 1 | 1 | ||
2019 | 3 | 3 | ||
2020 | 1 | 1 | ||
2021 | 0 | 0 | ||
Total net unrecognized compensation expense | ||||
Six months ending December 31, 2018 | 5 | 5 | ||
2019 | 12 | 12 | ||
2020 | 2 | 2 | ||
2021 | $ 0 | $ 0 |
SHAREHOLDERS' EQUITY - Narrativ
SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Sep. 29, 2020 | Aug. 28, 2020 | Jun. 25, 2020 | Jun. 12, 2020 | May 29, 2020 | May 27, 2020 | Mar. 13, 2020 | Feb. 14, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Common Stock | |||||||||||||
Repurchase of common stock | $ 5,000 | $ 5,000 | |||||||||||
Treasury Stock, Shares, Acquired | 12,238 | 9,560 | 323,660 | 14,097 | |||||||||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||
Common stock price (in dollars per share) | $ 17 | ||||||||||||
Purchased shares | 294,117 | ||||||||||||
Common stock, shares outstanding (in shares) | 2,089,002 | 2,089,002 | 2,381,131 | ||||||||||
Dividends [Abstract] | |||||||||||||
Dividend payable per share (in dollars per share) | $ 0.16 | $ 0.125 | $ 0.125 | ||||||||||
Dividends paid | $ 300 | $ 300 | $ 300 | ||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ 17.06 | $ 16.07 | $ 16.92 | $ 16.38 |
SHAREHOLDERS' EQUITY - Accumula
SHAREHOLDERS' EQUITY - Accumulated Other Comprehensive Income (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
43921 | $ 27,275 |
44104 | 26,244 |
Accumulated Other Comprehensive Income, Net | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
43921 | 3,757 |
Current-period change | (407) |
44104 | 3,350 |
Foreign Currency Translation | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
43921 | 3,435 |
Current-period change | (407) |
44104 | 3,028 |
Pension Postretirement Benefit Obligation | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
43921 | 322 |
Current-period change | 0 |
44104 | $ 322 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Amounts included in: | ||
Restricted cash | $ 5,000 | $ 6,200 |
Recurring Basis | ||
Assets | ||
Money Market Funds – JPMorgan Chase, US | 2,345 | 5,000 |
Interest bearing deposits – various banks | 7,019 | 8,962 |
Amounts included in: | ||
Cash and cash equivalents | 4,850 | 8,636 |
Restricted cash | 679 | 679 |
Long-term restricted cash | 3,835 | 4,647 |
Total | 9,364 | 13,962 |
Recurring Basis | Level 1 | ||
Assets | ||
Money Market Funds – JPMorgan Chase, US | 2,345 | 5,000 |
Interest bearing deposits – various banks | 7,019 | 8,962 |
Amounts included in: | ||
Cash and cash equivalents | 4,850 | 8,636 |
Restricted cash | 679 | 679 |
Long-term restricted cash | 3,835 | 4,647 |
Total | 9,364 | 13,962 |
Recurring Basis | Level 2 | ||
Assets | ||
Money Market Funds – JPMorgan Chase, US | 0 | 0 |
Interest bearing deposits – various banks | 0 | 0 |
Amounts included in: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Long-term restricted cash | 0 | 0 |
Total | 0 | 0 |
Recurring Basis | Level 3 | ||
Assets | ||
Money Market Funds – JPMorgan Chase, US | 0 | 0 |
Interest bearing deposits – various banks | 0 | 0 |
Amounts included in: | ||
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Long-term restricted cash | 0 | 0 |
Total | $ 0 | $ 0 |
SEGMENT INFORMATION - Narrative
SEGMENT INFORMATION - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020countryregion | |
Segment Reporting [Abstract] | |
Number of countries in which entity network marketing and distribution channels operates | 24 |
Number of countries in which company operates facilities | 11 |
Number of countries in which entity sells products | 25 |
Number of regions in which company sells products | region | 3 |
SEGMENT INFORMATION - Revenue b
SEGMENT INFORMATION - Revenue by Geographic Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Revenue from External Customer [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 37,966 | $ 39,656 | $ 112,218 | $ 118,340 | |
Percent of total revenue | 100.00% | 100.00% | 100.00% | 100.00% | |
Long-lived assets | $ 5,400 | $ 5,400 | $ 6,100 | ||
Inventories, net | 13,512 | 13,512 | 10,152 | ||
Consolidated product sales | |||||
Revenue from External Customer [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 35,700 | $ 38,700 | 108,700 | $ 115,800 | |
Consolidated pack sales and associate fees | |||||
Revenue from External Customer [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 2,000 | 700 | 2,800 | 1,800 | |
Consolidated other | |||||
Revenue from External Customer [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | 300 | 300 | 700 | 700 | |
Americas | |||||
Revenue from External Customer [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 11,400 | $ 11,800 | $ 34,100 | $ 36,100 | |
Percent of total revenue | 30.00% | 29.70% | 30.40% | 30.50% | |
Asia/Pacific | |||||
Revenue from External Customer [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 23,000 | $ 24,300 | $ 67,900 | $ 71,900 | |
Percent of total revenue | 60.50% | 61.20% | 60.50% | 60.80% | |
EMEA | |||||
Revenue from External Customer [Line Items] | |||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 3,600 | $ 3,600 | $ 10,200 | $ 10,300 | |
Percent of total revenue | 9.50% | 9.10% | 9.10% | 8.70% | |
Reportable Geographical Components | Americas | |||||
Revenue from External Customer [Line Items] | |||||
Long-lived assets | $ 4,500 | $ 4,500 | 5,100 | ||
Inventories, net | 6,100 | 6,100 | 5,400 | ||
Reportable Geographical Components | Asia/Pacific | |||||
Revenue from External Customer [Line Items] | |||||
Long-lived assets | 900 | 900 | 1,000 | ||
Inventories, net | 5,900 | 5,900 | 3,800 | ||
Reportable Geographical Components | EMEA | |||||
Revenue from External Customer [Line Items] | |||||
Long-lived assets | 0 | 0 | 0 | ||
Inventories, net | $ 1,500 | $ 1,500 | $ 1,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Lessor, Lease, Description [Line Items] | |||
Finance and Operating Lease Assets | $ 7,269 | $ 6,793 | |
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 625 | ||
Finance Lease, Liability, Payments, Remainder of Fiscal Year | 24 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 2,201 | ||
Finance Lease, Liability, Payments, Due Year Two | 91 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 1,737 | ||
Finance Lease, Liability, Payments, Due Year Three | 73 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 1,174 | ||
Finance Lease, Liability, Payments, Due Year Four | 45 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 1,259 | ||
Finance Lease, Liability, Payments, Due Year Five | 21 | ||
Finance Lease Liability Payments Due Year Six | 1 | ||
Lessee Operating Lease Liability Payments Due Year Six | 872 | ||
Lessee Operating Lease Liability Payments Due After Year Six | 1,528 | ||
Finance Lease, Liability, Payments, Due after Year Five | 0 | ||
Lessee, Operating Lease, Liability, Payments, Due | 9,396 | ||
Finance Lease, Liability, Payment, Due | 255 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (1,090) | ||
Finance Lease, Liability, Undiscounted Excess Amount | (26) | ||
Operating Lease, Liability | 8,306 | ||
Finance Lease, Liability | 229 | ||
Finance and Operating Lease Liabilities | $ 8,535 | 7,988 | |
Operating Lease, Weighted Average Remaining Lease Term | 5 years 6 months 21 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 4.20% | ||
Finance Lease, Weighted Average Remaining Lease Term | 2 years 11 months 1 day | ||
Finance Lease, Weighted Average Discount Rate, Percent | 5.60% | ||
Property, Plant and Equipment, Type [Domain] | |||
Lessor, Lease, Description [Line Items] | |||
Finance Lease, Right-of-Use Asset | $ 309 | 383 | |
Accrued Expenses [Member] | |||
Lessor, Lease, Description [Line Items] | |||
Operating Lease, Liability, Current | 1,927 | $ 1,600 | 1,929 |
Current portion of capital leases [Member] | |||
Lessor, Lease, Description [Line Items] | |||
Finance Lease, Liability, Current | 77 | 99 | |
Other longterm liabilities [Member] | |||
Lessor, Lease, Description [Line Items] | |||
Operating Lease, Liability, Noncurrent | 6,379 | 5,300 | 5,759 |
Finance Lease, Liability, Noncurrent | 152 | 201 | |
Other Assets [Member] | |||
Lessor, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 6,960 | $ 5,600 | $ 6,410 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) | Dec. 31, 2020 | Sep. 30, 2020 |
Subsequent Events [Abstract] | ||
Other Borrowings | $ 2,243,687 | $ 2,200,000 |
Uncategorized Items - mtex-2020
Label | Element | Value |
Customer Loyalty Program Contract Liability, Current | mtex_CustomerLoyaltyProgramContractLiabilityCurrent | $ 4,231,000 |