In achieving net income of $2.2 million for the third quarter of 2012, non-cash items impacting profitability included a reduction in a previously recognized deferred tax asset valuation allowance of approximately $1.0 million, a release of reserves related to transaction taxes of $0.8 million due to the expiration of statutes of limitations, and income from foreign currency exchange rate fluctuations of $0.5 million. Third quarter operating profitability, net income adjusted for the non-cash items listed above, was near even as we move closer to our goal of profitability. We expect our continuation of targeted expense reductions to have a positive impact on profitability and cash flow.
Net sales for the third quarter of 2012 were $43.0 million, a decrease of 14.8%, compared to $50.5 million in the third quarter of 2011. Net sales for the United States and Canada declined 16.3% to $20.5 million, compared to $24.5 million in the third quarter of 2011. International net sales of $22.5 million decreased 13.5%, compared to $26.0 million in the third quarter of 2011.
Recruiting increased 38.4% as compared to the third quarter of 2011. New independent associates and members for the third quarter of 2012 were 27,610 compared to 19,950 in 2011. Total active independent associates and members were approximately 233,000 as of the 12-month trailing period ended September 30, 2012, compared to 239,000 as of the 12-month trailing period ended September 30, 2011.
Dr. Robert Sinnott, CEO and Chief Science Officer, commented, ?Our global sales force continues to gain strength as evidenced by the increased levels of recruitment. I traveled to several national conventions in North America, Japan, Taiwan and Australia where I had the opportunity to share with our new and existing associate leaders the exciting new product, NutriVerus? powder and how this product positions Mannatech to introduce many more customers to the world of high-quality, natural nutrition.?
