[X]
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF1934
For the quarterly period ended: September 30, 2010
OR
|
[ ]
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from
___________
to
___________
.
|
Texas
(State or other Jurisdiction of Incorporation or Organization)
|
75-2508900
(I.R.S. Employer Identification No.)
|
600 S. Royal Lane, Suite 200, Coppell, Texas
(Address of Principal Executive Offices)
|
75019
(Zip Code)
|
Large accelerated filer [ ]
|
Accelerated filer [X]
|
Non-accelerated filer [ ]
|
Smaller reporting company [X]
|
Part I – FINANCIAL INFORMATION
|
|
Part II – OTHER INFORMATION
|
|
|
§
|
management’s plans and objectives for future operations;
|
|
§
|
existing cash flows being adequate to fund future operational needs;
|
|
§
|
future plans related to budgets, future capital requirements, market share growth, and anticipated capital projects and obligations;
|
|
§
|
the realization of net deferred tax assets;
|
|
§
|
the ability to curtail operating expenditures;
|
|
§
|
global statutory tax rates remaining unchanged;
|
|
§
|
the impact of future market changes due to exposure to foreign currency translations;
|
|
§
|
the possibility of certain policies, procedures, and internal processes minimizing exposure to market risk;
|
|
§
|
the impact of new accounting pronouncements on financial condition, results of operations, or cash flows;
|
|
§
|
the outcome of new or existing litigation matters;
|
|
§
|
the outcome of new or existing regulatory inquiries or investigations; and
|
|
§
|
other assumptions described in this report underlying such forward-looking statements.
|
|
§
|
overall growth or lack of growth in the nutritional supplements industry;
|
|
§
|
plans for expected future product development;
|
|
§
|
changes in manufacturing costs;
|
|
§
|
shifts in the mix of packs and products;
|
|
§
|
the future impact of any changes to global associate career and compensation plans or incentives;
|
|
§
|
the ability to attract and retain independent associates and members;
|
|
§
|
new regulatory changes that could affect operations and/or products;
|
|
§
|
the competitive nature of our business with respect to products and pricing;
|
|
§
|
publicity related to our products or network-marketing; and
|
|
§
|
the political, social, and economic climate.
|
September 30,
2010
|
December 31,
2009
|
|||||||
ASSETS
|
(unaudited)
|
|||||||
Cash and cash equivalents
|
$
|
21,680
|
$
|
17,367
|
||||
Restricted cash
|
1,282
|
1,288
|
||||||
Accounts receivable, net of allowance of $14 and $17 in 2010 and 2009, respectively
|
163
|
664
|
||||||
Income tax receivable
|
999
|
8,075
|
||||||
Inventories, net
|
25,389
|
31,290
|
||||||
Prepaid expenses and other current assets
|
3,515
|
3,139
|
||||||
Deferred tax assets
|
2,823
|
2,662
|
||||||
Total current assets
|
55,851
|
64,485
|
||||||
Property and equipment, net
|
19,963
|
27,144
|
||||||
Construction in progress
|
1,507
|
317
|
||||||
Long-term restricted cash
|
5,632
|
7,201
|
||||||
Other assets
|
2,162
|
2,503
|
||||||
Long-term deferred tax assets
|
693
|
652
|
||||||
Total assets
|
$
|
85,808
|
$
|
102,302
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
Current portion of capital leases
|
$
|
1,197
|
$
|
847
|
||||
Accounts payable
|
5,309
|
11,319
|
||||||
Accrued expenses
|
13,271
|
14,231
|
||||||
Commissions and incentives payable
|
7,097
|
10,624
|
||||||
Taxes payable
|
3,265
|
2,577
|
||||||
Current deferred tax liability
|
423
|
274
|
||||||
Deferred revenue
|
2,881
|
2,807
|
||||||
Total current liabilities
|
33,443
|
42,679
|
||||||
Capital leases, excluding current portion
|
1,402
|
1,068
|
||||||
Long-term deferred tax liabilities
|
1,736
|
3,923
|
||||||
Other long-term liabilities
|
5,189
|
3,348
|
||||||
Total liabilities
|
41,770
|
51,018
|
||||||
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,
27,697,560 shares issued and 26,490,466 shares outstanding in 2010 and 27,687,882 shares issued and 26,480,788 shares outstanding in 2009
|
3
|
3
|
||||||
Additional paid-in capital
|
41,934
|
41,442
|
||||||
Retained earnings
|
17,869
|
25,743
|
||||||
Accumulated other comprehensive loss
|
(977
|
)
|
(1,113
|
)
|
||||
Less treasury stock, at cost, 1,207,094 shares in 2010 and 2009
|
(14,791
|
)
|
(14,791
|
)
|
||||
Total shareholders’ equity
|
44,038
|
51,284
|
||||||
Total liabilities and shareholders’ equity
|
$
|
85,808
|
$
|
102,302
|
Three months ended
September 30,
|
Nine months ended
September 30,
|
||||||||||||
2010
|
2009
|
2010
|
2009
|
||||||||||
Net sales
|
$
|
54,866
|
$
|
71,295
|
$
|
173,137
|
$
|
219,640
|
|||||
Cost of sales
|
7,924
|
11,923
|
24,640
|
35,944
|
|||||||||
Commissions and incentives
|
23,109
|
35,268
|
74,617
|
115,413
|
|||||||||
31,033
|
47,191
|
99,257
|
151,357
|
||||||||||
Gross profit
|
23,833
|
24,104
|
73,880
|
68,283
|
|||||||||
Operating expenses:
|
|||||||||||||
Selling and administrative
|
15,811
|
17,748
|
47,579
|
53,403
|
|||||||||
Depreciation and amortization
|
2,772
|
3,085
|
8,691
|
9,357
|
|||||||||
Other operating costs
|
8,911
|
11,842
|
26,292
|
30,831
|
|||||||||
Total operating expenses
|
27,494
|
32,675
|
82,562
|
93,591
|
|||||||||
Loss from operations
|
(3,661
|
)
|
(8,571
|
)
|
(8,682
|
)
|
(25,308
|
)
|
|||||
Interest income
|
20
|
39
|
1
|
182
|
|||||||||
Other income (expense), net
|
400
|
859
|
(175
|
)
|
822
|
||||||||
Loss before income taxes
|
(3,241
|
)
|
(7,673
|
)
|
(8,856
|
)
|
(24,304
|
)
|
|||||
(Provision) benefit for income taxes
|
1,963
|
(1,534
|
)
|
982
|
4,785
|
||||||||
Net loss
|
$
|
(1,278
|
)
|
$
|
(9,207
|
)
|
$
|
(7,874
|
)
|
$
|
(19,519
|
)
|
|
Net loss per share:
|
|||||||||||||
Basic
|
$
|
(0.05
|
)
|
$
|
(0.35
|
)
|
$
|
(0.30
|
)
|
$
|
(0.74
|
)
|
|
Diluted
|
$
|
(0.05
|
)
|
$
|
(0.35
|
)
|
$
|
(0.30
|
)
|
$
|
(0.74
|
)
|
|
Weighted-average common shares outstanding:
|
|||||||||||||
Basic
|
26,490
|
26,464
|
26,487
|
26,462
|
|||||||||
Diluted
|
26,490
|
26,464
|
26,487
|
26,462
|
Common stock
outstanding
|
Additional
paid in
capital
|
Retained
earnings
|
Accumulated
other
comprehensive
loss
|
Treasury stock
|
Total
shareholders’
equity
|
|||||||||||||||||||
Shares
|
Par
value
|
Shares
|
Amounts
|
|||||||||||||||||||||
Balance at December 31, 2009
|
26,481
|
$
|
3
|
$
|
41,442
|
$
|
25,743
|
$
|
(1,113
|
)
|
1,207
|
$
|
(14,791
|
)
|
$
|
51,284
|
||||||||
Charge related to stock-based
compensation
|
—
|
—
|
464
|
—
|
—
|
—
|
—
|
464
|
||||||||||||||||
Proceeds from stock options exercised
|
9
|
—
|
28
|
—
|
—
|
—
|
—
|
28
|
||||||||||||||||
Components of comprehensive loss:
Foreign currency translations
|
—
|
—
|
—
|
—
|
136
|
—
|
—
|
136
|
||||||||||||||||
Net loss
|
—
|
—
|
—
|
(7,874
|
)
|
—
|
—
|
—
|
(7,874
|
)
|
||||||||||||||
Total comprehensive loss
|
(7,738
|
)
|
||||||||||||||||||||||
Balance at September 30, 2010
|
26,490
|
$
|
3
|
$
|
41,934
|
$
|
17,869
|
$
|
(977
|
)
|
1,207
|
$
|
(14,791
|
)
|
$
|
44,038
|
Nine months ended
September 30,
|
|||||||
2010
|
2009
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|||||||
Net loss
|
$
|
(7,874
|
)
|
$
|
(19,519
|
)
|
|
Adjustments to reconcile net loss to net cash provided by (used) in operating activities:
|
|||||||
Depreciation and amortization
|
8,691
|
9,357
|
|||||
Provision for doubtful accounts
|
28
|
(7
|
)
|
||||
Provision for inventory losses
|
1,538
|
821
|
|||||
Loss on disposal of assets
|
61
|
94
|
|||||
Accounting charge related to stock-based compensation expense
|
464
|
437
|
|||||
Deferred income taxes
|
(2,024
|
)
|
(1,556
|
)
|
|||
Changes in operating assets and liabilities:
|
|||||||
Accounts receivable
|
478
|
12
|
|||||
Income tax receivable
|
7,079
|
517
|
|||||
Inventories
|
4,411
|
1,265
|
|||||
Prepaid expenses and other current assets
|
53
|
2,220
|
|||||
Other assets
|
428
|
(1,022
|
)
|
||||
Accounts payable
|
(6,062
|
)
|
1,630
|
||||
Accrued expenses
|
592
|
(2,635
|
)
|
||||
Taxes payable
|
699
|
774
|
|||||
Commissions and incentives payable
|
(3,697
|
)
|
2,505
|
||||
Deferred revenue
|
72
|
399
|
|||||
Net cash provided by (used in) operating activities
|
4,937
|
(4,708
|
)
|
||||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|||||||
Purchases of property and equipment
|
(1,529
|
)
|
(2,500
|
)
|
|||
Change in restricted cash
|
1,687
|
389
|
|||||
Net cash provided by (used in) investing activities
|
158
|
(2,111
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|||||||
Payment of cash dividends
|
—
|
(1,058
|
)
|
||||
Proceeds from stock options exercised
|
28
|
66
|
|||||
Repayment of capital lease obligations
|
(917
|
)
|
(273
|
)
|
|||
Net cash used in financing activities
|
(889
|
)
|
(1,265
|
)
|
|||
Effect of currency exchange rate changes on cash and cash equivalents
|
107
|
(284
|
)
|
||||
Net increase (decrease) in cash and cash equivalents
|
4,313
|
(8,368
|
)
|
||||
Cash and cash equivalents at the beginning of period
|
17,367
|
30,945
|
|||||
Cash and cash equivalents at the end of period
|
$
|
21,680
|
$
|
22,577
|
|||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
|
|||||||
Income taxes received, net
|
$
|
7,228
|
$
|
2,721
|
|||
Interest paid on capital leases
|
$
|
69
|
$
|
29
|
September 30, 2010
|
|||
Sales reserve as of January 1, 2010
|
$
|
595
|
|
Provision related to sales made in current period
|
1,591
|
||
Provision related to sales made in prior periods
|
112
|
||
Actual returns or credits related to current period
|
(1,128
|
)
|
|
Actual returns or credits related to prior periods
|
(710
|
)
|
|
Sales reserve as of September 30, 2010
|
$
|
460
|
September 30, 2010
|
December 31, 2009
|
|||||||
Raw materials
|
$
|
9,223
|
$
|
10,819
|
||||
Finished goods
|
18,156
|
21,844
|
||||||
Inventory reserves for obsolescence
|
(1,990
|
)
|
(1,373
|
)
|
||||
$
|
25,389
|
$
|
31,290
|
For the three months ended September 30,
|
|||||||||||||||||
2010
|
2009
|
||||||||||||||||
Loss
(numerator)
|
Shares
(denominator)
|
Per share
amount
|
Loss
(numerator)
|
Shares
(denominator)
|
Per share
amount
|
||||||||||||
Basic EPS:
|
|||||||||||||||||
Net loss available to
common shareholders
|
$
|
(1,278
|
)
|
26,490
|
$
|
(0.05
|
)
|
$
|
(9,207
|
)
|
26,464
|
$
|
(0.35
|
)
|
|||
Effect of dilutive securities:
Stock options
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Diluted EPS:
|
|||||||||||||||||
Net loss available to
common shareholders plus
assumed conversions
|
$
|
(1,278
|
)
|
26,490
|
$
|
(0.05
|
)
|
$
|
(9,207
|
)
|
26,464
|
$
|
(0.35
|
)
|
For the nine months ended September 30,
|
|||||||||||||||||
2010
|
2009
|
||||||||||||||||
Loss
(numerator)
|
Shares
(denominator)
|
Per share
amount
|
Loss
(numerator)
|
Shares
(denominator)
|
Per share
amount
|
||||||||||||
Basic EPS:
|
|||||||||||||||||
Net loss available to
common shareholders
|
$
|
(7,874
|
)
|
26,487
|
$
|
(0.30
|
)
|
$
|
(19,519
|
)
|
26,462
|
$
|
(0.74
|
)
|
|||
Effect of dilutive securities:
Stock options
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||
Diluted EPS:
|
|||||||||||||||||
Net loss available to
common shareholders plus
assumed conversions
|
$
|
(7,874
|
)
|
26,487
|
$
|
(0.30
|
)
|
$
|
(19,519
|
)
|
26,462
|
$
|
(0.74
|
)
|
Three months
|
Nine months
|
||||||||||
2010
|
2009
|
2010
|
2009
|
||||||||
Total gross compensation expense
|
$
|
123
|
$
|
125
|
$
|
514
|
$
|
437
|
|||
Total tax benefit associated with compensation expense
|
10
|
24
|
67
|
97
|
|||||||
Total net compensation expense
|
$
|
113
|
$
|
101
|
$
|
447
|
$
|
340
|
Three months
ending
December 31,
2010
|
Year ending December 31,
|
|||||||||||
2011
|
2012
|
2013
|
||||||||||
Total gross unrecognized compensation expense
|
$
|
112
|
$
|
375
|
$
|
184
|
$
|
71
|
||||
Tax benefit associated with unrecognized compensation expense
|
16
|
49
|
20
|
6
|
||||||||
Total net unrecognized compensation expense
|
$
|
96
|
$
|
326
|
$
|
164
|
$
|
65
|
Asset
|
Level 1
|
Level 2
|
Level 3
|
Total
|
||||||||||||
Money Market Funds – Fidelity, US
|
$
|
6,029
|
$
|
—
|
$
|
—
|
$
|
6,029
|
||||||||
Interest bearing deposits – various banks, Korea
|
4,969
|
—
|
—
|
4,969
|
||||||||||||
Total assets
|
$
|
10,998
|
$
|
—
|
$
|
—
|
$
|
10,998
|
||||||||
Amounts included in:
|
||||||||||||||||
Cash and cash equivalents
|
$
|
6,345
|
$
|
—
|
$
|
—
|
$
|
6,345
|
||||||||
Long-term restricted cash
|
4,653
|
—
|
—
|
4,653
|
||||||||||||
Total
|
$
|
10,998
|
$
|
—
|
$
|
—
|
$
|
10,998
|
Three months
|
Nine months
|
||||||||||||||||||||||
Country
|
2010
|
2009
|
2010
|
2009
|
|||||||||||||||||||
United States
|
$
|
23.9
|
43.5
|
%
|
$
|
34.0
|
47.7
|
%
|
$
|
77.7
|
44.9
|
%
|
$
|
109.7
|
49.9
|
%
|
|||||||
Japan
|
8.9
|
16.2
|
%
|
9.9
|
13.9
|
%
|
25.8
|
14.9
|
%
|
31.4
|
14.3
|
%
|
|||||||||||
Republic of Korea
|
5.1
|
9.3
|
%
|
6.9
|
9.7
|
%
|
16.2
|
9.4
|
%
|
19.2
|
8.8
|
%
|
|||||||||||
Canada
|
4.6
|
8.4
|
%
|
5.8
|
8.1
|
%
|
14.0
|
8.1
|
%
|
17.5
|
8.0
|
%
|
|||||||||||
Australia
|
4.7
|
8.6
|
%
|
5.7
|
8.0
|
%
|
14.8
|
8.6
|
%
|
16.7
|
7.6
|
%
|
|||||||||||
South Africa
|
3.0
|
5.5
|
%
|
3.9
|
5.5
|
%
|
9.0
|
5.2
|
%
|
9.4
|
4.2
|
%
|
|||||||||||
Taiwan
|
1.4
|
2.6
|
%
|
1.4
|
2.0
|
%
|
5.0
|
2.9
|
%
|
4.8
|
2.2
|
%
|
|||||||||||
New Zealand
|
0.7
|
1.3
|
%
|
1.1
|
1.5
|
%
|
2.5
|
1.4
|
%
|
3.3
|
1.5
|
%
|
|||||||||||
Germany
|
0.6
|
1.1
|
%
|
0.9
|
1.3
|
%
|
1.8
|
1.0
|
%
|
2.6
|
1.2
|
%
|
|||||||||||
United Kingdom
|
0.4
|
0.7
|
%
|
0.8
|
1.0
|
%
|
1.6
|
0.9
|
%
|
2.5
|
1.1
|
%
|
|||||||||||
Denmark
|
0.1
|
0.2
|
%
|
0.5
|
0.7
|
%
|
0.4
|
0.2
|
%
|
1.5
|
0.7
|
%
|
|||||||||||
Singapore
|
0.5
|
0.9
|
%
|
0.4
|
0.6
|
%
|
1.5
|
0.9
|
%
|
1.0
|
0.5
|
%
|
|||||||||||
Austria
(1)
|
0.2
|
0.3
|
%
|
—
|
—
|
0.9
|
0.5
|
%
|
—
|
—
|
|||||||||||||
Norway
(1)
|
0.5
|
0.9
|
%
|
—
|
—
|
1.2
|
0.7
|
%
|
—
|
—
|
|||||||||||||
The Netherlands
(1)
|
0.2
|
0.3
|
%
|
—
|
—
|
0.4
|
0.2
|
%
|
—
|
—
|
|||||||||||||
Sweden
(1)
|
0.1
|
0.2
|
%
|
—
|
—
|
0.3
|
0.2
|
%
|
—
|
—
|
|||||||||||||
Totals
|
$
|
54.9
|
100
|
%
|
$
|
71.3
|
100
|
%
|
$
|
173.1
|
100
|
%
|
$
|
219.6
|
100
|
%
|
|
Three months
|
Nine months
|
|||||||||
2010
|
2009
|
2010
|
2009
|
||||||||
Consolidated product sales
|
$
|
45.5
|
$
|
52.3
|
$
|
140.8
|
$
|
159.1
|
|||
Consolidated pack sales
|
7.0
|
15.5
|
25.1
|
50.2
|
|||||||
Consolidated other, including freight
|
2.4
|
3.5
|
7.2
|
10.3
|
|||||||
Consolidated total net sales
|
$
|
54.9
|
$
|
71.3
|
$
|
173.1
|
$
|
219.6
|
Country
|
September 30,
2010
|
December 31,
2009
|
|||
Australia
|
$
|
0.3
|
$
|
0.3
|
|
Canada
|
0.1
|
0.1
|
|||
Japan
|
0.2
|
0.3
|
|||
Republic of Korea
|
0.9
|
0.6
|
|||
Switzerland
|
0.4
|
0.5
|
|||
Taiwan
|
0.1
|
0.1
|
|||
South Africa
|
0.1
|
—
|
|||
United Kingdom
|
0.1
|
0.1
|
|||
United States
|
19.3
|
25.5
|
|||
Totals
|
$
|
21.5
|
$
|
27.5
|
2010
|
2009
|
Change from
2010 to 2009
|
||||||||||||||
Total
dollars
|
% of
net sales
|
Total
dollars
|
% of
net sales
|
Dollar
|
Percentage
|
|||||||||||
Net sales
|
$
|
54,866
|
100
|
%
|
$
|
71,295
|
100
|
%
|
$
|
(16,429
|
)
|
(23.0
|
)
%
|
|||
Cost of sales
|
7,924
|
14.4
|
%
|
11,923
|
16.7
|
%
|
(3,999
|
)
|
(33.5
|
)%
|
||||||
Commissions and incentives
|
23,109
|
42.1
|
%
|
35,268
|
49.6
|
%
|
(12,159
|
)
|
(34.5
|
)%
|
||||||
31,033
|
56.6
|
%
|
47,191
|
66.2
|
%
|
(16,158
|
)
|
(34.2
|
)%
|
|||||||
Gross profit
|
23,833
|
43.4
|
%
|
24,104
|
33.8
|
%
|
(271
|
)
|
(1.1
|
)
%
|
||||||
Operating expenses:
|
||||||||||||||||
Selling and administrative expenses
|
15,811
|
28.8
|
%
|
17,748
|
24.9
|
%
|
(1,937
|
)
|
(10.9
|
)%
|
||||||
Depreciation and amortization
|
2,772
|
5.1
|
%
|
3,085
|
4.3
|
%
|
(313
|
)
|
(10.1
|
)%
|
||||||
Other operating costs
|
8,911
|
16.2
|
%
|
11,842
|
16.6
|
%
|
(2,931
|
)
|
(24.8
|
)%
|
||||||
Total operating expenses
|
27,494
|
50.1
|
%
|
32,675
|
45.8
|
%
|
(5,181
|
)
|
(15.9
|
)%
|
||||||
Loss from operations
|
(3,661
|
)
|
(6.7
|
)
%
|
(8,571
|
)
|
(12.0
|
)
%
|
4,910
|
57.3
|
%
|
|||||
Interest income
|
20
|
0.0
|
%
|
39
|
0.1
|
%
|
(19
|
)
|
(48.7
|
)%
|
||||||
Other income, net
|
400
|
0.7
|
%
|
859
|
1.2
|
%
|
(459
|
)
|
(53.4
|
)%
|
||||||
Loss before income taxes
|
(3,241
|
)
|
(5.9
|
)
%
|
(7,673
|
)
|
(10.8
|
)
%
|
4,432
|
57.8
|
%
|
|||||
(Provision) benefit for income taxes
|
1,963
|
3.6
|
%
|
(1,534
|
)
|
(2.2
|
)%
|
3,497
|
228.0
|
%
|
||||||
Net loss
|
$
|
(1,278
|
)
|
(2.3
|
)
%
|
$
|
(9,207
|
)
|
(12.8
|
)
%
|
$
|
7,929
|
86.1
|
%
|
2010
|
2009
|
Change from
2010 to 2009
|
||||||||||||||
Total
dollars
|
% of
net sales
|
Total
dollars
|
% of
net sales
|
Dollar
|
Percentage
|
|||||||||||
Net sales
|
$
|
173,137
|
100
|
%
|
$
|
219,640
|
100
|
%
|
$
|
(46,503
|
)
|
(21.2
|
)
%
|
|||
Cost of sales
|
24,640
|
14.2
|
%
|
35,944
|
16.4
|
%
|
(11,304
|
)
|
(31.4
|
)%
|
||||||
Commissions and incentives
|
74,617
|
43.1
|
%
|
115,413
|
52.5
|
%
|
(40,796
|
)
|
(35.3
|
)%
|
||||||
99,257
|
57.3
|
%
|
151,357
|
68.9
|
%
|
(52,100
|
)
|
(34.4
|
)%
|
|||||||
Gross profit
|
73,880
|
42.7
|
%
|
68,283
|
31.1
|
%
|
5,597
|
8.2
|
%
|
|||||||
Operating expenses:
|
||||||||||||||||
Selling and administrative expenses
|
47,579
|
27.5
|
%
|
53,403
|
24.3
|
%
|
(5,824
|
)
|
(10.9
|
)%
|
||||||
Depreciation and amortization
|
8,691
|
5.0
|
%
|
9,357
|
4.3
|
%
|
(666
|
)
|
(7.1)
|
%
|
||||||
Other operating costs
|
26,292
|
15.2
|
%
|
30,831
|
14.0
|
%
|
(4,539
|
)
|
(14.7
|
)%
|
||||||
Total operating expenses
|
82,562
|
47.7
|
%
|
93,591
|
42.6
|
%
|
(11,029
|
)
|
(11.8
|
)%
|
||||||
Loss from operations
|
(8,682
|
)
|
(5.0
|
)
%
|
(25,308
|
)
|
(11.5
|
)
%
|
16,626
|
65.7
|
%
|
|||||
Interest income
|
1
|
0.0
|
%
|
182
|
0.1
|
%
|
(181
|
)
|
(99.5
|
)%
|
||||||
Other income (expense), net
|
(175
|
)
|
(0.1
|
)%
|
822
|
0.4
|
%
|
(997
|
)
|
(121.3
|
)%
|
|||||
Loss before income taxes
|
(8,856
|
)
|
(5.1
|
)
%
|
(24,304
|
)
|
(11.1
|
)
%
|
15,448
|
63.6
|
%
|
|||||
Benefit for income taxes
|
982
|
0.6
|
%
|
4,785
|
2.2
|
%
|
(3,803
|
)
|
(79.5
|
)%
|
||||||
Net loss
|
$
|
(7,874
|
)
|
(4.5
|
)
%
|
$
|
(19,519
|
)
|
(8.9
|
)
%
|
$
|
11,645
|
59.7
|
%
|
Country
|
2010
|
2009
|
|||||||||
United States
|
$
|
23.9
|
43.5
|
%
|
$
|
34.0
|
47.7
|
%
|
|||
Japan
|
8.9
|
16.2
|
%
|
9.9
|
13.9
|
%
|
|||||
Republic of Korea
|
5.1
|
9.3
|
%
|
6.9
|
9.7
|
%
|
|||||
Canada
|
4.6
|
8.4
|
%
|
5.8
|
8.1
|
%
|
|||||
Australia
|
4.7
|
8.6
|
%
|
5.7
|
8.0
|
%
|
|||||
South Africa
|
3.0
|
5.5
|
%
|
3.9
|
5.5
|
%
|
|||||
Taiwan
|
1.4
|
2.6
|
%
|
1.4
|
2.0
|
%
|
|||||
New Zealand
|
0.7
|
1.3
|
%
|
1.1
|
1.5
|
%
|
|||||
Germany
|
0.6
|
1.1
|
%
|
0.9
|
1.3
|
%
|
|||||
United Kingdom
|
0.4
|
0.7
|
%
|
0.8
|
1.0
|
%
|
|||||
Denmark
|
0.1
|
0.2
|
%
|
0.5
|
0.7
|
%
|
|||||
Singapore
|
0.5
|
0.9
|
%
|
0.4
|
0.6
|
%
|
|||||
Austria
(1)
|
0.2
|
0.3
|
%
|
—
|
—
|
||||||
Norway
(1)
|
0.5
|
0.9
|
%
|
—
|
—
|
||||||
The Netherlands
(1)
|
0.2
|
0.3
|
%
|
—
|
—
|
||||||
Sweden
(1)
|
0.1
|
0.2
|
%
|
—
|
—
|
||||||
Totals
|
$
|
54.9
|
100
|
%
|
$
|
71.3
|
100
|
%
|
Country
|
2010
|
2009
|
|||||||||
United States
|
$
|
77.7
|
44.9
|
%
|
$
|
109.7
|
49.9
|
%
|
|||
Japan
|
25.8
|
14.9
|
%
|
31.4
|
14.3
|
%
|
|||||
Republic of Korea
|
16.2
|
9.4
|
%
|
19.2
|
8.8
|
%
|
|||||
Canada
|
14.0
|
8.1
|
%
|
17.5
|
8.0
|
%
|
|||||
Australia
|
14.8
|
8.6
|
%
|
16.7
|
7.6
|
%
|
|||||
South Africa
|
9.0
|
5.2
|
%
|
9.4
|
4.2
|
%
|
|||||
Taiwan
|
5.0
|
2.9
|
%
|
4.8
|
2.2
|
%
|
|||||
New Zealand
|
2.5
|
1.4
|
%
|
3.3
|
1.5
|
%
|
|||||
Germany
|
1.8
|
1.0
|
%
|
2.6
|
1.2
|
%
|
|||||
United Kingdom
|
1.6
|
0.9
|
%
|
2.5
|
1.1
|
%
|
|||||
Denmark
|
0.4
|
0.2
|
%
|
1.5
|
0.7
|
%
|
|||||
Singapore
|
1.5
|
0.9
|
%
|
1.0
|
0.5
|
%
|
|||||
Austria
(1)
|
0.9
|
0.5
|
%
|
—
|
—
|
||||||
Norway
(1)
|
1.2
|
0.7
|
%
|
—
|
—
|
||||||
The Netherlands
(1)
|
0.4
|
0.2
|
%
|
—
|
—
|
||||||
Sweden
(1)
|
0.3
|
0.2
|
%
|
—
|
—
|
||||||
Totals
|
$
|
173.1
|
100
|
%
|
$
|
219.6
|
100
|
%
|
Three months
|
|||||||||||
Change
|
|||||||||||
Country
|
Currency
|
2010
|
2009
|
Local
currency
|
Percentage
|
||||||
Australia and Singapore
|
AUD
|
5.8
|
7.4
|
(1.6
|
)
|
(21.6
|
)%
|
||||
Austria
(1)
, Germany, the Netherlands
(1)
|
EUR
|
0.7
|
0.6
|
0.1
|
16.7
|
%
|
|||||
Denmark
|
DKK
|
0.6
|
2.4
|
(1.8
|
)
|
(75.0
|
)%
|
||||
Japan
|
JPY
|
753.5
|
921.0
|
(167.5
|
)
|
(18.2
|
)%
|
||||
Republic of Korea
|
KRW
|
6,032.8
|
8,540.1
|
(2,507.3
|
)
|
(29.4
|
)%
|
||||
New Zealand
|
NZD
|
1.0
|
1.6
|
(0.6
|
)
|
(37.5
|
)%
|
||||
Norway
(1)
|
NOK
|
2.1
|
0.2
|
1.9
|
950.0
|
%
|
|||||
South Africa
|
ZAR
|
21.8
|
30.2
|
(8.4
|
)
|
(27.8
|
)%
|
||||
Sweden
(1)
|
SEK
|
0.7
|
0.1
|
0.6
|
600.0
|
%
|
|||||
Taiwan
|
TWD
|
43.5
|
46.1
|
(2.6
|
)
|
(5.6
|
)%
|
||||
United Kingdom
|
GBP
|
0.4
|
0.5
|
(0.1
|
)
|
(20.0
|
)%
|
Nine months
|
|||||||||||
Change
|
|||||||||||
Country
|
Currency
|
2010
|
2009
|
Local
currency
|
Percentage
|
||||||
Australia and Singapore
|
AUD
|
18.2
|
23.7
|
(5.5
|
)
|
(23.2
|
)%
|
||||
Austria
(1)
, Germany, the Netherlands
(1)
|
EUR
|
2.2
|
1.9
|
0.3
|
15.8
|
%
|
|||||
Denmark
|
DKK
|
2.4
|
7.6
|
(5.2
|
)
|
(68.4
|
)%
|
||||
Japan
|
JPY
|
2,279.9
|
2,945.3
|
(665.4
|
)
|
(22.6
|
)%
|
||||
Republic of Korea
|
KRW
|
18,849.1
|
25,012.7
|
(6,163.6
|
)
|
(24.6
|
)%
|
||||
New Zealand
|
NZD
|
3.5
|
5.5
|
(2.0
|
)
|
(36.4
|
)%
|
||||
Norway
(1)
|
NOK
|
5.8
|
0.2
|
5.6
|
2,800.0
|
%
|
|||||
South Africa
|
ZAR
|
67.2
|
80.7
|
(13.5
|
)
|
(16.7
|
)%
|
||||
Sweden
(1)
|
SEK
|
2.1
|
0.1
|
2.0
|
2,000.0
|
%
|
|||||
Taiwan
|
TWD
|
157.8
|
159.0
|
(1.2
|
)
|
(0.8
|
)%
|
||||
United Kingdom
|
GBP
|
1.3
|
1.6
|
(0.3
|
)
|
(18.8
|
)%
|
·
|
changes in our sales prices;
|
·
|
changes in consumer demand;
|
·
|
changes in the number of independent associates and members;
|
·
|
changes in competitors’ products;
|
·
|
changes in economic conditions;
|
·
|
changes in regulations;
|
·
|
announcements of new scientific studies and breakthroughs;
|
·
|
introduction of new products;
|
·
|
discontinuation of existing products;
|
·
|
adverse publicity;
|
·
|
changes in our commissions and incentives programs;
|
·
|
direct competition; and
|
·
|
fluctuations in foreign currency exchange rates.
|
|
Our sales mix for the three and nine months ended September 30, was as follows
(in millions, except percentages)
:
|
Three
Months
|
||||||||||||
Change
|
||||||||||||
2010
|
2009
|
Dollar
|
Percentage
|
|||||||||
Product sales
|
$
|
45.5
|
$
|
52.3
|
$
|
(6.8
|
)
|
(13.0
|
)%
|
|||
Pack sales
|
7.0
|
15.5
|
(8.5
|
)
|
(54.8
|
)%
|
||||||
Other, including freight
|
2.4
|
3.5
|
(1.1
|
)
|
(31.4
|
)%
|
||||||
Total net sales
|
$
|
54.9
|
$
|
71.3
|
$
|
(16.4
|
)
|
(23.0
|
)
%
|
Nine
Months
|
||||||||||||
Change
|
||||||||||||
2010
|
2009
|
Dollar
|
Percentage
|
|||||||||
Product sales
|
$
|
140.8
|
$
|
159.1
|
$
|
(18.3
|
)
|
(11.5
|
)%
|
|||
Pack sales
|
25.1
|
50.2
|
(25.1
|
)
|
(50.0
|
)%
|
||||||
Other, including freight
|
7.2
|
10.3
|
(3.1
|
)
|
(30.1
|
)%
|
||||||
Total net sales
|
$
|
173.1
|
$
|
219.6
|
$
|
(46.5
|
)
|
(21.2
|
)
%
|
·
|
Simply Delicious
™
Snack Bars in the United States and Canada;
|
·
|
Essential Source
™
Omega 3 in the United States and all of our international markets;
|
·
|
PhytoBurst
®
Nutritional Chews in the United States, Canada, Japan, Taiwan, and South Africa;
|
·
|
Health Solutions Starter packs in several international markets;
|
·
|
GlycoSlim
®
drink mix in certain international markets;
|
·
|
BounceBack
®
capsules in Japan and Taiwan;
|
·
|
GI-Pro Balance
™
powder in South Korea;
|
·
|
Mannatech LIFT
™
products in United States and Canada;
|
·
|
Immunostart
®
tablets in the United Kingdom, Germany, Denmark, New Zealand, Australia, Austria, the Netherlands, Norway, Sweden;
|
·
|
Various promotional packages in the United States and international markets; and
|
·
|
Various Optimal Health, Weight and Fitness products in Austria, the Netherlands, Norway and Sweden.
|
Three Months
|
||||||||||||
Change
|
||||||||||||
2010
|
2009
|
Dollar
|
Percentage
|
|||||||||
New
|
$
|
5.1
|
$
|
11.0
|
$
|
(5.9
|
)
|
(53.6
|
)%
|
|||
Continuing
|
1.9
|
4.5
|
(2.6
|
)
|
(57.8
|
)%
|
||||||
Total
|
$
|
7.0
|
$
|
15.5
|
$
|
(8.5
|
)
|
(54.8
|
)
%
|
Nine Months
|
||||||||||||
Change
|
||||||||||||
2010
|
2009
|
Dollar
|
Percentage
|
|||||||||
New
|
$
|
17.2
|
$
|
32.1
|
$
|
(14.9
|
)
|
(46.4
|
)%
|
|||
Continuing
|
7.9
|
18.1
|
(10.2
|
)
|
(56.4
|
)%
|
||||||
Total
|
$
|
25.1
|
$
|
50.2
|
$
|
(25.1
|
)
|
(50.0
|
)
%
|
2010
|
2009
|
||||||||
New
|
93,000
|
22.0
|
%
|
151,000
|
28.3
|
%
|
|||
Continuing
|
329,000
|
78.0
|
%
|
383,000
|
71.7
|
%
|
|||
Total
|
422,000
|
100
|
%
|
534,000
|
100
|
%
|
·
|
registered our most popular products with the appropriate regulatory agencies in all countries of operations;
|
·
|
focused on new product development;
|
·
|
explored new international markets;
|
·
|
launched an aggressive marketing and educational campaign;
|
·
|
strengthened compliance initiatives;
|
·
|
concentrated on publishing results of research studies and clinical trials related to our products;
|
·
|
initiated additional incentives;
|
·
|
explored new advertising and educational tools to broaden name recognition;
|
·
|
implemented changes to our global associate career and compensation plan;
|
·
|
introduced new products in many of our global markets;
|
·
|
introduced the $499 Premium-All-Star pack into United States, Canada, and South Africa in January 2009;
|
·
|
introduced similar All-Star Packs into all other markets in January 2010;
|
·
|
expanded into four new international markets in early fall of 2009;
|
·
|
revamped our website to increase user-friendliness; and
|
·
|
launched three new effective online tools (Mannacast
SM
,which includes StoryCast
TM
, Mannapages
®
, and Success Tracker) in the United States and Canada that offer support to our independent associates in managing and expanding their business.
|
Country
|
2010
|
2009
|
|||
Australia
|
30.0
|
%
|
30.0
|
%
|
|
Canada
|
30.0
|
%
|
33.0
|
%
|
|
Denmark
|
25.0
|
%
|
25.0
|
%
|
|
Japan
|
42.0
|
%
|
42.0
|
%
|
|
Mexico
|
30.0
|
%
|
—
|
||
Norway
|
28.0
|
%
|
28.0
|
%
|
|
Republic of Korea
|
22.0
|
%
|
24.2
|
%
|
|
Singapore
|
17.0
|
%
|
17.0
|
%
|
|
South Africa
|
28.0
|
%
|
28.0
|
%
|
|
Sweden
|
26.3
|
%
|
26.3
|
%
|
|
Switzerland
|
16.2
|
%
|
16.2
|
%
|
|
Taiwan
|
17.0
|
%
|
25.0
|
%
|
|
United Kingdom
|
28.0
|
%
|
28.0
|
%
|
|
United States
|
37.5
|
%
|
37.5
|
%
|
Country
|
September 30, 2010
|
December 31, 2009
|
|||
Mexico
|
$
|
0.6
|
$
|
—
|
|
Norway
|
0.1
|
0.0
|
|||
Sweden
|
0.1
|
0.0
|
|||
Switzerland
|
0.6
|
0.3
|
|||
Taiwan
|
0.9
|
0.9
|
|||
United States
|
1.3
|
1.1
|
|||
Total
|
$
|
3.6
|
$
|
2.3
|
Provided by (used in):
|
2010
|
2009
|
|||||
Operating activities
|
$
|
4.9
|
$
|
(4.7
|
)
|
||
Investing activities
|
$
|
0.2
|
$
|
(2.1
|
)
|
||
Financing activities
|
$
|
(0.9
|
)
|
$
|
(1.3
|
)
|
Declared date
|
Date of record
|
Date paid
|
Total amount
of dividends
|
Dollar amount paid
per common share
|
|||||||
May 20, 2009
|
June 3, 2009
|
June 29, 2009
|
$
|
0.5
|
million
|
$
|
0.02
|
||||
February 18, 2009
|
March 9, 2009
|
March 26, 2009
|
$
|
0.5
|
million
|
$
|
0.02
|
Remaining 2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
Thereafter
|
Total
|
|||||||||||||||||
Capital lease obligations
|
$
|
440
|
$
|
1,154
|
$
|
711
|
$
|
344
|
$
|
239
|
$
|
1
|
$
|
—
|
$
|
2,889
|
||||||||
Purchase obligations
(1)(2)
|
8,766
|
4,956
|
2,535
|
1,050
|
1,050
|
1,050
|
—
|
19,407
|
||||||||||||||||
Operating leases
|
799
|
2,174
|
2,036
|
1,572
|
897
|
815
|
955
|
9,248
|
||||||||||||||||
Post-employment royalty
|
152
|
492
|
492
|
492
|
369
|
—
|
—
|
1,997
|
||||||||||||||||
Employment agreements
|
584
|
1,379
|
—
|
—
|
—
|
—
|
—
|
1,963
|
||||||||||||||||
Total commitments and obligations
|
$
|
10,741
|
$
|
10,155
|
$
|
5,774
|
$
|
3,458
|
$
|
2,555
|
$
|
1,866
|
$
|
955
|
$
|
35,504
|
|
(1)
Purchase obligations for the years 2010, 2011, and 2012 include $4.7 million, $2.1 million, and $1.5 million, respectively, of purchase commitments under a contract terminated by the Company for an asserted breach. Pursuant to the terms of the contract, we are engaged in the arbitration process with the supplier.
|
|
(2)
Purchase obligations for the remainder of 2010 include $0.2 million of purchase commitments under a contract terminated effective December 31, 2010, by the supplier. The Company is negotiating a new agreement with this supplier.
|
Estimated useful life
|
Net carrying value at September 30, 2010
|
||||
Office furniture and equipment
|
5 to 7 years
|
$
|
2.0
|
million
|
|
Computer hardware
|
3 to 5 years
|
4.0
|
million
|
||
Computer software
|
3 to 5 years
|
10.7
|
million
|
||
Automobiles
|
3 to 5 years
|
0.1
|
million
|
||
Leasehold improvements
|
2 to 10 years
(1)
|
3.2
|
million
|
||
Construction in progress
|
2 to 10 years
(2)
|
1.5
|
million
|
||
Total net carrying value at September 30, 2010
|
$
|
21.5
|
million
|
(1)
|
We amortize leasehold improvements over the shorter of the useful estimated life of the leased asset or the lease term.
|
(2)
|
Construction in progress includes leasehold improvements and internally-developed software costs. Once placed in service, leasehold improvements will be amortized over the shorter of an asset’s useful life or the remaining lease term. Once the internally-developed software is placed in service, it will be amortized over three to five years.
|
·
|
Retail Customer Product Return Policy.
This policy allows a retail customer to return any of our products to the original independent associate who sold the product and receive a full cash refund by the independent associate for the first 180 days following the product’s purchase if located in the United States, Canada, and South Africa, and for the first 90 days following the product’s purchase for the remaining countries. The independent associate may then return or exchange the product based on the independent associate product return policy.
|
·
|
Independent Associate and Member Product Return Policy.
This policy allows the independent associate or member to return an order within one year of the purchase date upon terminating their account. If an independent associate or member returns a product unopened and in good condition, he/she may receive a full refund minus a 10% restocking fee. We may also allow the independent associate or member to receive a full Satisfaction Guarantee refund if they have tried the product and are not satisfied for any reason, excluding promotional materials. This Satisfaction Guarantee refund applies in the United States, Canada, and South Africa only for the first 180 days following the product’s purchase, and applies to the remaining countries for the first 90 days following the product’s purchase; however, any commissions earned by an independent associate will be deducted from the refund. If we discover abuse of the refund policy, we may terminate the independent associate’s or member’s account.
|
February
2010
grant
|
May
2010
grant
|
June
2010
grant #1
|
June
2010
grant #2
|
September
2010
Grant #1
|
September
2010
Grant #2
|
||||||||||||||
Estimated fair value per share of options granted:
|
$
|
2.03
|
$
|
1.86
|
$
|
1.23
|
$
|
1.18
|
$
|
1.26
|
$
|
1.40
|
|||||||
Assumptions:
|
|||||||||||||||||||
Annualized dividend yield
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
0.00
|
%
|
|||||||
Risk-free rate of return
|
2.16
|
%
|
2.07
|
%
|
1.91
|
%
|
1.91
|
%
|
1.91
|
%
|
1.24
|
%
|
|||||||
Common stock price volatility
|
71.1
|
%
|
70.8
|
%
|
71.5
|
%
|
71.5
|
%
|
72.40
|
%
|
72.3
|
%
|
|||||||
Expected average life of stock options (in years)
|
4.5
|
4.5
|
4.5
|
4.5
|
4.5
|
4.5
|
Country (foreign currency name)
|
Low
|
High
|
Average
|
Spot
|
|||||
Australia (Dollar)
|
0.81520
|
0.97010
|
0.89710
|
0.97010
|
|||||
Austria, Germany, the Netherlands (Euro)
|
1.19440
|
1.45130
|
1.31694
|
1.36120
|
|||||
Canada (Dollar)
|
0.92880
|
1.00340
|
0.96556
|
0.97190
|
|||||
Denmark (Krone)
|
0.16060
|
0.19520
|
0.17687
|
0.18270
|
|||||
Japan (Yen)
|
0.01057
|
0.01202
|
0.01118
|
0.01196
|
|||||
New Zealand (Dollar)
|
0.66310
|
0.74190
|
0.70967
|
0.73860
|
|||||
Norway (Krone)
|
0.14970
|
0.17800
|
0.16471
|
0.17100
|
|||||
Republic of Korea (Won)
|
0.00080
|
0.00092
|
0.00086
|
0.00088
|
|||||
Singapore (Dollar)
|
0.70340
|
0.75990
|
0.72309
|
0.75990
|
|||||
South Africa (Rand)
|
0.12600
|
0.14390
|
0.13451
|
0.14390
|
|||||
Sweden (Krona)
|
0.12370
|
0.14870
|
0.13638
|
0.14870
|
|||||
Switzerland (Franc)
|
0.86000
|
1.02450
|
0.93956
|
1.02450
|
|||||
Taiwan (Dollar)
|
0.03074
|
0.03225
|
0.03136
|
0.03189
|
|||||
United Kingdom (British Pound)
|
1.43380
|
1.63820
|
1.53432
|
1.58090
|
Mannatech, Incorporated
|
|||
Dated: November 4, 2010
|
By:
|
/s/ Stephen D. Fenstermacher
|
|
Stephen D. Fenstermacher
Co-Chief Executive Officer and Chief Financial Officer
(principal financial and accounting officer)
|
Dated: November 4, 2010
|
By:
|
/s/ Robert A. Sinnott
|
|
Robert A. Sinnott
Co-Chief Executive Officer and Chief Science Officer
(principal executive officer)
|
Incorporated by Reference
|
|||||
Exhibit
Number
|
Exhibit Description
|
Form
|
File No.
|
Exhibit (s)
|
Filing Date
|
3.1
|
Amended and Restated Articles of Incorporation of
Mannatech, dated May 19, 1998.
|
S-1
|
333-63133
|
3.1
|
October 28.1998
|
3.2
|
Fourth Amended and Restated Bylaws of Mannatech, dated
August 8, 2001 (Corrected).
|
10-K
|
000-24657
|
3.2
|
March 16, 2007
|
3.3
|
First Amendment to the Fourth Amended and Restated
Bylaws of Mannatech, effective November 30, 2007.
|
8-K
|
000-24657
|
3.1
|
December 6, 2007
|
4.1
|
Specimen Certificate representing Mannatech’s common
stock, par value $0.0001 per share.
|
S-1
|
333-63133
|
4.1
|
October 28, 1998
|
10.1
|
Investment Agreement by and between Mannatech, Incorporated and Dutchess Opportunity Fund, II, LP, dated September 16, 2010
|
8-K
|
000-24657
|
10.1
|
September 21, 2010
|
10.2
|
Registration Rights Agreement by and between Mannatech, Incorporated and Dutchess Opportunity Fund, II, LP, dated September 16, 2010
|
8-K
|
000-24657
|
10.2
|
September 21, 2010
|
10.3
|
Amendment to Investement Agreement, by and between Mannatech, Incorporated and Dutchess Opportunity Fund, II, LP, dated October 4, 2010
|
8-K
|
000-24657
|
10.1
|
October 5, 2010
|
10.4
|
Form of Indemnification Agreement between Mannatech and each of the following directors: J. Stanley Fredrick, Patricia Weir, Alan D. Kennedy, Gerald E. Gilbert, Marlin Ray Robbins, Larry A. Jobe, and Robert A. Toth
|
*
|
*
|
*
|
*
|
31.1*
|
Certification pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002, of the Co-Chief Executive Officer of Mannatech.
|
*
|
*
|
*
|
*
|
31.2*
|
Certification pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002, of the Co-Chief Executive Officer of Mannatech.
|
*
|
*
|
*
|
*
|
32.1*
|
Certification pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, of the Co-Chief Executive Officer of Mannatech.
|
*
|
*
|
*
|
*
|
32.2*
|
Certification pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, of the Co-Chief Executive Officer of Mannatech.
|
*
|
*
|
*
|
*
|
101.INS**
|
XBRL Instance Document
|
**
|
**
|
**
|
**
|
101.SCH**
|
XBRL Taxonomy Extension Schema Document
|
**
|
**
|
**
|
**
|
101.CAL**
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
**
|
**
|
**
|
**
|
101.LAB**
|
XBRL Taxonomy Extension Label Linkbase Document
|
**
|
**
|
**
|
**
|
101.PRE**
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
**
|
**
|
**
|
**
|
101.DEF**
|
XBRL Taxonomy Extension Definition Linkbase Document
|
**
|
**
|
**
|
**
|
Date:
November 4, 2010
|
/s/ Robert A. Sinnott
|
Robert A. Sinnott
Co-Chief Executive Officer and
Chief Science Officer
|
Date:
November 4, 2010
|
/s/
Stephen D. Fenstermacher
|
Stephen D. Fenstermacher
Co-Chief Executive Officer and
Chief Financial Officer
|
Date: November 4, 2010
|
/s/ Robert A. Sinnott
|
Robert A. Sinnott
Co-Chief Executive Officer and
Chief Science Officer
|
Date: November 4, 2010
|
/s/
Stephen D. Fenstermacher
|
Stephen D. Fenstermacher
Co-Chief Executive Officer and
Chief Financial Officer
|