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Mannatech’s Compliance Program Allows Entrepreneurs to Flourish

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Mannatech’s culture of compliance has become one of the strongest and most important elements that make up this company. Because of our daily efforts to ensure we are following, if not exceeding all regulatory mandates, our sales Associates are able to build safe, long-term businesses around the globe.

However, Mannatech hasn’t always been the compliance leader that it is today. In our 23-year history, we have experienced challenges that had us learn the hard way about the importance of making compliance a priority.

Years ago we had issues erupt due to the over exuberance that a few individuals expressed for our unique Glyconutrition-based products. These instances were dealt with and Mannatech paid its dues for losing its way regarding regulatory compliance. We will continue to crack down on improper disease claims (although not as prevalent as before) as a constant, ongoing effort.

Those days are long in the past – nearly a decade of time has elapsed since we learned from those lessons.  Today we are better and stronger than ever, and we have built a culture of compliance that can be held up as a model for the direct sales and nutritional supplement industries.

Supporting our compliance programs is our commitment to science. Since starting Mannatech we have invested more than $50 million in R&D with much of it directed toward our pioneering glyconutritional technology.

This investment includes a serious effort to have scientific backing of our product technology. This effort includes 17 human clinical trials that have been published, 12 of which were double-blind, placebo-controlled studies — the gold standard for product validation.

I am extremely proud of our compliance program and, though it is a daily effort that sometimes requires us to make difficult decisions, I wouldn’t have it any other way. I say that not because I am concerned about sanctions for non-compliance, but because doing business the right way is the best way; and really, it’s the only way I will ever do business.

The efforts we put into compliance have not been lost on the direct sales market, as we are now viewed as leaders helping to enhance the credibility of this industry.

In fact, a Mannatech legal and compliance team members work closely with industry trade groups to stay up-to-date with best practices and supporting other direct sales companies to understand how to create a culture of compliance.

We are also hearing from more and more leaders within the direct sales industry who are interested in joining Mannatech because we have a culture of compliance and because we’re proven. These direct sales leaders are tired of having to jump from company to company because of unproven products or lax compliance oversight that allows ridiculous, risky? claims.

These leaders are seeking a safe place to build their business and share products they can trust and believe in, and they are more and more finding Mannatech to be that place.

Occasionally, I will be reminded that Mannatech hasn’t always been the model of compliance. Agreed. In this company’s past, we did things that caused ourselves injury. But certainly not over the past several years, let alone while I have been CEO. And so long as I am here, we will work every day to meet all regulatory mandates and set the standard for compliance in this industry.

In fact, we have an almost entirely new leadership team at Mannatech; and each of us is fully committed to the safety and sustainability of our Associates’ businesses. Anyone, be it an employee or an Associate, not committed to a daily effort to remain compliant is not welcome at this company.

But what does it mean that we work every day to remain compliant? For nearly a decade, we have been implementing processes and fine-tuning our compliance programs to include the following guidelines:

·      Associates can use only corporate-approved marketing materials, which are available through our resource library.

·      Associates also have access to recurring training on compliant marketing and advertising.

·      Mannatech actively monitors the marketing messages surrounding the company and our products.

·      Associates are required to report their websites to the legal and compliance departments, and the company conducts random checks of other online communications, such as Facebook, Twitter and blogs.

·      We use one of the best-in-class, third-party web crawler to pick up references linking Mannatech and its products to disease claims, as well as potential trademark infringement and other adverse materials.

·      The legal and compliance teams are on-call for any questions from Associates to help support their efforts to remain compliant.

·      We also work with EthicsPoint, an independent company that maintains a hotline-style service where people can anonymously report possible violations of our Business Code of Conduct, Code of Ethics and Associate Policies & Procedures.

As you can see, we aren’t messing around, and in a sometimes turbulent industry, we are a safe harbor. I couldn’t be more serious about a subject than this.

The benefits of these precautions are huge for our Associates. For one, Mannatech provides a massive amount of marketing support materials that are vetted by our legal and compliance teams and are compliant and ready to use.  So, our Associates can work with great confidence knowing that Mannatech has their backs and is making sure they have the tools to build a safe, long-term business.

Furthermore, we protect our hard working Associates who do business the right way from individuals who may want to cut corners and make outrageous product or earnings claims. We find those bad apples before they spoil the barrel.

If we find an individual who is violating company policy, we try to partner with them to help them get back on the path of compliance. However, when someone repeatedly refuses to accept our support we have had to take action.

Sales Associates found to be violating company policy have faced penalties that have included permanent termination from the company. Mannatech is a family and we’ll work with everyone to make things right, but I will also do everything in my power to protect this family from those who would harm it.

Soon we will be revealing the “new” Mannatech. This will include an incredible rebrand, new lines of consumer-friendly products and a state-of-the-art back office system that will help Associates manage their growing global businesses. What won’t change is our commitment to our Associates and their ability to succeed through our business opportunity in a safe, compliant environment. That is my promise to you.

About Mannatech

Mannatech, Incorporated, offers a profound wellness experience through a financially rewarding opportunity that makes a difference in the lives of people across the world. Through its innovative glyconutrition products, Mannatech transforms lives, providing an unprecedented level of natural wellness, freedom and purpose.* With more than 20 years of experience and operations in more than 25 countries, Mannatech is committed to transforming lives. For more information, visit .

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USANA Q1 2016 Revenue Up 9.6 % To $240 Million

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For the first quarter of 2016, net sales increased to a record $240.4 million, up 9.6%, compared with $219.4 million in the prior-year period.

A stronger U.S. dollar negatively impacted net sales by $14.2 million in the first quarter of 2016. On a constant currency basis, net sales increased by 16.1%. 

The Company delivered this growth notwithstanding a challenging prior year comparable due to (i) incremental sales during the first quarter of 2015 from a significant incentive that was offered during that period but was not offered again in the first quarter of 2016, and (ii) incremental sales during the first quarter of 2015 ahead of price increases in China, which did not occur again in the first quarter of 2016. 

Net sales growth for the first quarter of 2016 was driven by 16.2% growth in the number of active Associates and 9.3% growth in the number of Preferred Customers.

  • First quarter net sales increased by 9.6% to a record $240.4 million, up 16.1% based on constant currency
  • First quarter EPS increased by 18.0% to $1.77
  • Number of active Associates increased by 16.2% to 437,000
  • Company reiterates 2016 Outlook

Net earnings for the first quarter increased by 13.3% to $22.3 million, compared with $19.7 million during the prior-year period. The increase in net earnings was driven by higher net sales, lower relative Associate Incentives expense, and a lower effective tax rate, which were partially offset by higher selling, general and administrative expense as well as modestly lower gross margins. 

The 150 basis point decrease in Associate Incentives expense is the result of a short-term incentive that the Company offered during the first quarter of 2015 but did not offer again during the current-year quarter. 

The 190 basis point decrease in the effective tax rate is due to the Company’s early adoption of Accounting Standards Update 2016-09 (Topic 718) – Improvements to Employee Share-Based Payment Accounting. As a result of adopting this standard, the Company recognized (i) modestly higher equity compensation expense, (ii) a higher diluted share count, and (iii) a lower effective tax rate for the current-year quarter. 

While the adoption of this pronouncement increased net earnings by approximately $300,000 for the first quarter of 2016, the resulting higher diluted share count offset this increase and earnings per share remained unaffected.

Earnings per diluted share for the first quarter increased by 18.0% to $1.77, compared with $1.50 in the prior year period. This increase in earnings per share is the result of higher net earnings and a lower number of diluted shares outstanding due to the Company’s share repurchases over the last six months.

Weighted average diluted shares outstanding were 12.6 million as of the end of the first quarter of 2016, compared with 13.1 million in the prior-year period. During the first quarter of 2016, the Company repurchased 553,082 shares of common stock for a total investment of $64.6 million.

The Company ended the quarter with $150.5 million in cash and cash equivalents. As of April 2, 2016, there was $35.4 million remaining under the current share repurchase authorization and a balance of $66 million on the company’s line of credit.

“USANA delivered solid performance in the first quarter, notwithstanding the continued impact of a stronger U.S. dollar and a tough prior year comparable,” said Dave Wentz, USANA’s co-CEO. “Our consistent sales and customer growth reflect the demand from our customers around the world for USANA’s high quality products and business opportunity.”

Regional Results

Net sales in the Asia Pacific region increased by 13.2% to $176.4 million, despite a negative $10.3 million impact from a stronger U.S. dollar. Within Asia Pacific, net sales:

  • Increased by 15.5% in Greater China (20.8% on a constant currency basis);
  • Increased by 14.4% in the North Asia region (23.2% on a constant currency basis); and
  • Increased by 7.8% in the Southeast Asia Pacific region (16.9% on a constant currency basis).

Sales growth in Greater China was driven by 23.6% Associate growth in Mainland China, while sales growth in North Asia resulted from 30.0% Associate growth in South Korea. Sales growth in Southeast Asia Pacific was due to strong Associate growth in several markets in the region. 

Indonesia also provided a solid contribution of new Associates to the region for its first full quarter of operations. The total number of active Associates in the Asia Pacific region increased by 20.0% year-over-year and 3.8% sequentially.

Net sales in the Americas/Europe region were essentially flat at $64.0 million, compared to the prior year period. On a constant currency basis, net sales in this region increased by 7.1% year-over-year. 

Canada and Mexico, two standout markets, generated local currency sales growth of 22.1% and 16.9%, respectively. Both of these markets also reported strong year-over-year Associate growth.

“We continue to see local currency sales and customer growth in most of our markets around the world and expect this momentum to continue during 2016,” said Kevin Guest, USANA’s co-CEO. “We are also continuing to execute our 2016 initiatives, which include announcing and launching several new, personalized products later this year. We are excited about these products and believe they will keep USANA at the forefront of nutritional supplementation.”


USANA develops and manufactures high-quality nutritional supplements, healthy foods and personal care products that are sold directly to Associates and Preferred Customers throughout the United States, Canada, Australia, New Zealand, Hong Kong, China,Japan, Taiwan, South Korea, Singapore, Mexico, Malaysia, the Philippines, the Netherlands, the United Kingdom, Thailand, France, Belgium, Colombia and Indonesia. More information on USANA can be found at .

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Younique Expanding Into Spain

Younique , the pioneer in social media-driven direct sales, announced today that it is bringing its groundbreaking cosmetic and skin care brand to Spain.

After a number of successful global launches, Younique is excited to introduce the brand to the Spanish market.

“Younique is consistently evolving to create products that are not only revolutionizing the beauty industry, but allowing us to grow our brand internationally,” said Younique Cofounder Melanie Huscroft.

“Spain was a natural choice as the country is comprised of digitally savvy, social media-engaged women who love makeup. We are honored to share our innovations withSpain and welcome the country to join our Younique Family of nearly 450,000 Presenters worldwide.”

To introduce the brand to the Spanish market, Younique is holding immersion events in Barcelona on May 3 and in Madrid onMay 4 where attendees can meet with a professional makeup artist and try out Younique products at a special beauty bar.

Attendees will also meet Gema Martin, VP, Spain Market Representative, who will discuss Younique’s product offerings and brand mission. As an added bonus, Younique will gift attendees samples including a Moodstruck Opulence Lipstick in Stuck Up and Lucrative Lip Gloss in Luxe.

Throughout May, residents of Spain can register as Presenters and purchase the Younique Presenter Kit that contains an assortment of cutting-edge cosmetic and skincare products such as Moodstruck 3D Fiber Lashes+, Addiction Shadow Palettes, Precision Pencil Eyeliners and Lucrative Lip Gloss. Consumers will be able to purchase products starting on June 1, 2016.

With a mission to uplift, empower, validate and build self-esteem in women around the world, Younique provides opportunities for personal growth and even financial reward for consumers interested in starting their own online business marketing their high-quality products.

Younique currently operates in the following markets: the United States, Mexico, Canada, Australia, New Zealand, the United Kingdom, Germany, France and, now, Spain!

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Attraction Marketing System
Attraction Marketing System