During the third quarter, the Company generated $4.8 million in cash from operations. The Company's balance sheet strengthened with cash and cash equivalents of $45.7 million (up from $35.5 million on December 31, 2009) and shareholders' equity of $66.6 million (up from $57.1 million on December 31, 2009). The Company has no long-term debt.
Active Managers worldwide declined 2.0 percent to 30,000 from the end of last quarter and active Distributors worldwide declined 0.9 percent from the end of last quarter to 681,100. The Company benefited from increases in the number of active Managers in its Synergy Worldwide and NSP International segments, offset by declines in its NSP US segment.
For the first three quarters of 2010, net sales revenue increased 3.0 percent to $260.0 million, compared with $252.5 million in the same period a year ago. Operating income from continuing operations improved by 18.7 percent to $7.7 million, compared with $6.5 million in the same period a year ago. Net income from continuing operations totaled $8.9 million, compared with $2.0 million in the same period a year ago. Basic and diluted net income per share from continuing operations was $0.57, compared with $0.13 in the same period a year ago. The increase in operating and net income from continuing operations is the result of sales growth and foreign exchange gains. The nine-month results include a foreign exchange gain recorded in the first quarter of $3.7 million, or $0.24 per diluted share, related to the implementation of highly-inflationary accounting for Venezuela and the devaluation of the Venezuelan bolivar. During the first three quarters of 2010, the Company generated $10.2 million in cash from operations.The loss from discontinued operations was $9.4 million, compared with net income of $0.2 million in the same period a year ago, stemming from the decision to cease operations in Brazil as noted above. Basic and diluted net earnings per share from discontinued operations were a loss of $0.60, compared with income of $0.01 for the same period a year ago.