EXHIBIT 99
NEWS RELEASE
For more information, contact:
| Steve Albright | or: | Fred Nielson |
| Chief Financial Officer | | Investor Relations |
| (636) 733-1305 | | (636) 733-1314 |
RELIV INTERNATIONAL REPORTS THIRD-QUARTER RESULTS
CHESTERFIELD, Mo., Oct. 29, 2008 - Reliv International, Inc. (NASDAQ:RELV), a nutrition and direct selling company, today reported net sales for the third quarter of $23.9 million, compared to net sales of $25.1 million in the third quarter last year.
Net income for the third quarter equaled $536,000 or $0.04 per diluted share, compared to net income of $901,000 or $0.06 per diluted share in the third quarter of 2007.
For the nine months ended Sept. 30, net sales equaled $76.1 million compared to $86.4 million in the first nine months of 2007. Net income was $2.6 million through three quarters of 2008, or $0.17 per diluted share, compared to $4.3 million or $0.27 per diluted share for the same period last year. Excluding the one-time, after-tax charge related to restructuring Reliv’s European operations in this year’s second quarter, earnings through nine months would have been $2.7 million, and earnings per share would have been $0.18.
Net sales in the United States equaled $20.8 million in the third quarter compared to net sales of $22.0 million in the third quarter of 2007, a 5.4 percent decline. International net sales (sales outside of the United States) declined 2.1 percent to $3.0 million from $3.1 million in the third quarter of last year.
As of Sept. 30, 2008, Reliv’s distributor base totaled approximately 68,540, which represents a slight drop from a year ago.
“The third quarter was not as strong as we had hoped for, and we believe the shocks to the U.S. economy in September played a role in our sales decline,” said Robert L. Montgomery, president, chairman and chief executive officer of Reliv.
“Short-term, restructuring our European operations significantly reduced our pre-tax losses in that region as we expected. But that improvement was negated by lower U.S. pre-tax profits resulting from a sales decline,” Montgomery said.
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Reliv International, Inc. and Subsidiaries
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“We launched an automatic shipping program in the U.S. at our International Conference in August, which we believe will be a long-term positive for our business. We also launched the program in Australia this month,” he added.
“In addition to a planned product launch on Nov. 8, we continue to look for proven incentive programs to stimulate sales, and we have a national conference for U.S. distributors scheduled for February 2009, which should further motivate our field,” Montgomery said.
Selling, general and administrative (SG&A) costs in the third quarter were down compared to SG&A expenses in the year-ago quarter, and Reliv also achieved a slight drop in SG&A as a percentage of sales. Lower SG&A figures in the United States and Germany helped lead to the decline.
Cash from operations for the first nine months of 2008 equaled $3.6 million, and we had cash on hand at the end of the quarter of $5.8 million.
“We are focused on turning around our U.S. business by sticking to the basics: Reliv makes nutrition simple. Our products can play a role in supporting many thousands of people’s efforts to live a healthier life. In addition, we offer distributors an outstanding business opportunity,” he added.
Reliv will host a conference call to discuss third-quarter earnings with investors at 1:00 p.m. Eastern Daylight Time on October 29. The dial-in number for investors is 888-680-0869. The participant passcode is 23697341. To register, please call in 15 minutes prior to start of the call. A replay of this call will be available for one week by telephone from 3:00 p.m. Eastern by calling 888-286-8010 and using the passcode 79877419. A live web cast of this call will be available through the Investor Relations section of Reliv’s Web site, http://www.reliv.com/US/EN/Conference%20Calls%20Presentations.html. An online archive of the broadcast will be available on Reliv’s Web site in the Investor Relations section 24 hours after the call concludes.
About Reliv
Reliv International, Inc., based in Chesterfield, Mo., is a developer, manufacturer and marketer of a proprietary line of nutritional supplements. Reliv supplements address essential daily nutrition, weight loss and targeted solutions such as energy and performance enhancement, digestive health, women’s health and anti-aging. Reliv sells its products through an international network marketing system of approximately 68,500 independent distributors. Additional information about Reliv International, Inc. can be obtained on the Web at www.reliv.com.
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Reliv International, Inc. and Subsidiaries | | | | | |
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| | | | | | |
Condensed Consolidated Balance Sheets | | | | | |
| | | September 30 | | December 31 | |
| | | 2008 | | 2007 | |
| | | (Unaudited) | | | |
Assets | | | | | |
| Current Assets: | | | | | |
| Cash and cash equivalents | | $ | 5,761,294 | | $ | 11,694,699 | |
| Short-term investments | | | - | | | 398,592 | |
| Accounts and notes receivable, less allowances of | | | | | | | |
| $8,400 in 2008 and $8,300 in 2007 | | | 517,051 | | | 811,634 | |
| Accounts due from employees and distributors | | | 241,945 | | | 204,705 | |
| Inventories | | | 6,782,918 | | | 6,179,238 | |
| Other current assets | | | 1,816,976 | | | 1,798,932 | |
| | | | | | | | |
| Total current assets | | | 15,120,184 | | | 21,087,800 | |
| | | | | | | | |
| Other assets | | | 2,804,587 | | | 2,999,903 | |
| Accounts due from employees and distributors | | | 178,391 | | | 319,883 | |
| | | | | | | | |
| Net property, plant and equipment | | | 9,115,506 | | | 9,199,185 | |
| | | | | | | | |
| Total Assets | | $ | 27,218,668 | | $ | 33,606,771 | |
| | | | | | | | |
Liabilities and Stockholders' Equity | | | | | | | |
| | | | | | | | |
| Total current liabilities | | $ | 8,520,808 | | $ | 8,574,257 | |
| Total non-current liabilities | | | 956,990 | | | 1,227,313 | |
| Stockholders' equity | | | 17,740,870 | | | 23,805,201 | |
| | | | | | | | |
| Total Liabilities and Stockholders' Equity | | $ | 27,218,668 | | $ | 33,606,771 | |
Consolidated Statements of Income | | | | | |
| | | Three months ended September 30 | | Nine months ended September 30 | |
| | | 2008 | | 2007 | | 2008 | | 2007 | |
| | | (Unaudited) | | (Unaudited) | | (Unaudited) | | (Unaudited) | |
| Product sales | | $ | 21,226,975 | | $ | 22,501,899 | | $ | 67,719,727 | | $ | 77,450,784 | |
| Handling & freight income | | | 2,633,832 | | | 2,619,260 | | | 8,372,176 | | | 8,958,556 | |
| | | | | | | | | | | | | | |
| Net Sales | | | 23,860,807 | | | 25,121,159 | | | 76,091,903 | | | 86,409,340 | |
| | | | | | | | | | | | | | |
| Costs and expenses: | | | | | | | | | | | | | |
| Cost of products sold | | | 4,464,874 | | | 4,320,557 | | | 13,410,310 | | | 14,780,889 | |
| Distributor royalties and commissions | | | 9,320,880 | | | 9,926,735 | | | 29,865,734 | | | 34,458,125 | |
| Selling, general and administrative | | | 8,950,900 | | | 9,740,241 | | | 28,472,176 | | | 30,969,921 | |
| | | | | | | | | | | | | | |
| Total Costs and Expenses | | | 22,736,654 | | | 23,987,533 | | | 71,748,220 | | | 80,208,935 | |
| | | | | | | | | | | | | | |
| Income from operations | | | 1,124,153 | | | 1,133,626 | | | 4,343,683 | | | 6,200,405 | |
| | | | | | | | | | | | | | |
| Other income (expense): | | | | | | | | | | | | | |
| Interest income | | | 64,329 | | | 122,788 | | | 299,893 | | | 498,904 | |
| Interest expense | | | (21,011 | ) | | (159 | ) | | (31,405 | ) | | (732 | ) |
| Other income (expense) | | | (211,550 | ) | | 73,302 | | | (229,139 | ) | | 268,540 | |
| | | | | | | | | | | | | | |
| Income before income taxes | | | 955,921 | | | 1,329,557 | | | 4,383,032 | | | 6,967,117 | |
| Provision for income taxes | | | 420,000 | | | 429,000 | | | 1,752,000 | | | 2,623,000 | |
| | | | | | | | | | | | | | |
| Net Income | | $ | 535,921 | | $ | 900,557 | | $ | 2,631,032 | | $ | 4,344,117 | |
| | | | | | | | | | | | | | |
| Earnings per common share - Basic | | $ | 0.04 | | $ | 0.06 | | $ | 0.17 | | $ | 0.27 | |
| Weighted average shares | | | 14,806,000 | | | 15,938,000 | | | 15,498,000 | | | 16,166,000 | |
| | | | | | | | | | | | | | |
| Earnings per common share - Diluted | | $ | 0.04 | | $ | 0.06 | | $ | 0.17 | | $ | 0.27 | |
| Weighted average shares | | | 14,810,000 | | | 16,171,000 | | | 15,502,000 | | | 16,374,000 | |
| | | | | | | | | | | | | | |
| Cash dividends declared per common share | | $ | - | | $ | - | | $ | 0.05 | | $ | 0.05 | |
Reliv International, Inc. and Subsidiaries
ADD FOUR
The following tables summarize net sales by geographic market ranked by the date we began operations in each market.
Net sales by Market
| | | Three months ended September 30, | | Change From | |
| | | 2008 | | | | 2007 | | | | Prior Year | |
| | | Amount | | % of sales | | Amount | | % of sales | | Amount | | % | |
| | | | | | | | | | | | | | |
| United States | | | 20,814 | | | 87.2 | % | | 22,009 | | | 87.6 | % | | (1,195 | ) | | -5.4 | % |
| Australia/New Zealand | | | 667 | | | 2.8 | % | | 715 | | | 2.8 | % | | (48 | ) | | -6.7 | % |
| Canada | | | 404 | | | 1.7 | % | | 378 | | | 1.5 | % | | 26 | | | 6.9 | % |
| Mexico | | | 389 | | | 1.6 | % | | 351 | | | 1.4 | % | | 38 | | | 10.8 | % |
| United Kingdom/Ireland | | | 234 | | | 1.0 | % | | 242 | | | 1.0 | % | | (8 | ) | | -3.3 | % |
| Philippines | | | 583 | | | 2.4 | % | | 809 | | | 3.2 | % | | (226 | ) | | -27.9 | % |
| Malaysia/Singapore | | | 682 | | | 2.9 | % | | 419 | | | 1.7 | % | | 263 | | | 62.8 | % |
| Germany | | | 88 | | | 0.4 | % | | 198 | | | 0.8 | % | | (110 | ) | | -55.6 | % |
| | | | | | | | | | | | | | | | | | | | |
| Consolidated Total | | | 23,861 | | | 100.0 | % | | 25,121 | | | 100.0 | % | | (1,260 | ) | | -5.0 | % |
| | | Nine months ended September 30, | | Change From | |
| | | 2008 | | 2007 | | Prior Year | |
| | | Amount | | % of sales | | Amount | | % of sales | | Amount | | % | |
| | | | | | | | | | | | | | |
| United States | | | 65,934 | | | 86.7 | % | | 77,215 | | | 89.4 | % | | (11,281 | ) | | -14.6 | % |
| Australia/New Zealand | | | 2,096 | | | 2.8 | % | | 2,090 | | | 2.4 | % | | 6 | | | 0.3 | % |
| Canada | | | 1,301 | | | 1.7 | % | | 1,196 | | | 1.4 | % | | 105 | | | 8.8 | % |
| Mexico | | | 1,269 | | | 1.7 | % | | 1,155 | | | 1.3 | % | | 114 | | | 9.9 | % |
| United Kingdom/Ireland | | | 791 | | | 1.0 | % | | 781 | | | 0.9 | % | | 10 | | | 1.3 | % |
| Philippines | | | 2,092 | | | 2.7 | % | | 2,108 | | | 2.4 | % | | (16 | ) | | -0.8 | % |
| Malaysia/Singapore | | | 2,174 | | | 2.8 | % | | 1,173 | | | 1.4 | % | | 1,001 | | | 85.3 | % |
| Germany | | | 435 | | | 0.6 | % | | 691 | | | 0.8 | % | | (256 | ) | | -37.0 | % |
| | | | | | | | | | | | | | | | | | | | |
| Consolidated Total | | | 76,092 | | | 100.0 | % | | 86,409 | | | 100.0 | % | | (10,317 | ) | | -11.9 | % |
The following table sets forth, as of September 30, 2008 and 2007, the number of our active distributors and Master Affiliates and above. The total number of active distributors includes Master Affiliates and above. We define an active distributor as one that enrolls as a distributor or renews its distributorship during the prior twelve months. Master Affiliates and above are distributors that have attained the highest level of discount and are eligible for royalties generated by Master Affiliates and above in their downline organization. Growth in the number of active distributors and Master Affiliates and above is a key factor in continuing the growth of our business.
Active Distributors and Master Affiliates and above by Market
| | | | | | | | | | | | | | |
| | | As of 9/30/2008 | | As of 9/30/2007 | | Change in % | |
| | | Active Distributors | | Master Affiliates and Above | | Active Distributors | | Master Affiliates and Above | | Active Distributors | | Master Affiliates and Above | |
| | | | | | | | | | | | | | |
| United States | | | 54,210 | | | 10,630 | | | 57,420 | | | 13,600 | | | -5.6 | % | | -21.8 | % |
| Australia/New Zealand | | | 2,480 | | | 230 | | | 2,510 | | | 280 | | | -1.2 | % | | -17.9 | % |
| Canada | | | 1,250 | | | 160 | | | 1,150 | | | 160 | | | 8.7 | % | | 0.0 | % |
| Mexico | | | 1,550 | | | 240 | | | 1,380 | | | 220 | | | 12.3 | % | | 9.1 | % |
| United Kingdom/Ireland | | | 750 | | | 110 | | | 790 | | | 120 | | | -5.1 | % | | -8.3 | % |
| Philippines | | | 4,590 | | | 420 | | | 4,460 | | | 370 | | | 2.9 | % | | 13.5 | % |
| Malaysia/Singapore | | | 3,270 | | | 580 | | | 2,230 | | | 310 | | | 46.6 | % | | 87.1 | % |
| Germany | | | 440 | | | 80 | | | 560 | | | 140 | | | -21.4 | % | | -42.9 | % |
| | | | | | | | | | | | | | | | | | | | |
| Consolidated Total | | | 68,540 | | | 12,450 | | | 70,500 | | | 15,200 | | | -2.8 | % | | -18.1 | % |
