EXHIBIT 99.1
NEWS RELEASE
For more information, contact:
Steve Albright | Fred Nielson | Barry Murov |
Chief Financial Officer | Investor Relations | Media Relations |
(636) 733-1305 | (636) 733-1314 | (636) 733-1303 |
FOR IMMEDIATE RELEASE
Reliv International Reports Second-Quarter Results
CHESTERFIELD, Mo., July 30, 2009 – Reliv International, Inc. (NASDAQ:RELV), a nutrition and direct selling company, today reported second-quarter net sales of $20.1 million, down from net sales of $24.0 million in the same quarter last year.
Net income for the second quarter dropped to $410,000 from $569,000 and earnings per diluted share declined to $0.03 from $0.04 in the second quarter of 2008.
U.S. net sales in the quarter were $17.6 million, down 13.7 percent from the second quarter of last year. Net sales in international markets declined to $2.4 million in this year’s second quarter from $3.5 million in the same quarter last year, but approximately 40 percent of the decline was due to the stronger U.S. dollar in 2009.
“Sales are down in large part, we believe, due to lower consumer spending and tight credit, both resulting from the poor economy. But our business opportunity remains attractive in this market,” said Reliv Chairman, President and CEO Robert L. Montgomery.
“Consumers continue to face salary reductions, layoffs and furloughs, and we are seeing many people turning to us to help supplement their income,” Montgomery said. “The number of new-distributor enrollments in the second quarter rose 6.2% compared to the second quarter of 2008,” he added.
The business opportunity was the focus of Reliv’s Financial Freedom Tour, a series of special events in more than 15 cities during June and July. Senior executives spoke to approximately 4,500 people combined at those events.
“Looking forward, we have a great international conference planned for mid-August, where we’ll be making exciting announcements that we believe will boost our business,” he said. “And we remain well positioned to capitalize on people’s need to find new sources of income and on their desire to improve their health,” Montgomery said.
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Reliv International, Inc. and Subsidiaries
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For the first half of 2009, net sales totaled $43.8 million compared to $52.2 million in the first six months of 2008. Net income was $1.4 million or $0.10 per diluted share compared to $2.1 million or $0.13 per diluted share in last year’s first half.
As the result of improved working capital management, Reliv generated cash from operations of $2.6 million in the first half of 2009, 14 percent higher than cash generated in the first half of last year. As of June 30, 2009, Reliv had cash and cash equivalents of $6.1 million.
Outstanding shares as of June 30, 2009, decreased by approximately 2 million shares since December 31, 2008, chiefly through buying out a large shareholder. In the first half of this year, Reliv spent approximately $6.1 million repurchasing those shares.
“The basics of our business remain compelling,” Montgomery said. “Reliv makes nutrition simple, and we offer an outstanding business opportunity for those who are seeking to supplement or replace a lost income.”
Reliv will host a conference call to discuss second-quarter earnings with investors. The conference call will be on July 30, 2009 at 1:00 p.m. Eastern. The dial-in number is 888-680-0878. The participant passcode is 39516769. A replay will be available for one week at 888-286-8010 using the passcode 17604036. A live webcast is available on the Investor Relations section of Reliv’s Web site at: http://www.reliv.com/US/EN/Conference%20Calls%20Presentations.html
An online archive of the webcast will be on Reliv’s Web site in the Investor Relations section, 24 hours after 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 68,000 independent distributors. Additional information about Reliv International, Inc. can be obtained on the Web at www.reliv.com.
—FINANCIAL HIGHLIGHTS FOLLOW –
Reliv International, Inc. and Subsidiaries | |
ADD TWO | |
| |
Condensed Consolidated Balance Sheets | |
| | June 30 | | | December 31 | | | | | | | |
| | 2009 | | | 2008 | | | | | | | |
| | (Unaudited) | | | | | | | | | | |
Assets | | | | | | | | | | | | |
Current Assets: | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 6,120,380 | | | $ | 4,460,637 | | | | | | | |
Accounts and notes receivable, less allowances of $15,900 in 2009 and $10,200 in 2008 | | | 318,463 | | | | 494,689 | | | | | | | | | |
Accounts due from employees and distributors | | | 205,056 | | | | 241,532 | | | | | | | | | |
Inventories | | | 6,299,035 | | | | 6,221,954 | | | | | | | | | |
Other current assets | | | 1,642,150 | | | | 2,176,802 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total current assets | | | 14,585,084 | | | | 13,595,614 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Other assets | | | 1,488,681 | | | | 1,220,546 | | | | | | | | | |
Accounts due from employees and distributors | | | 119,920 | | | | 164,462 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Net property, plant and equipment | | | 8,660,357 | | | | 8,912,157 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total Assets | | $ | 24,854,042 | | | $ | 23,892,779 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Liabilities and Stockholders' Equity | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total current liabilities | | $ | 9,859,142 | | | $ | 7,350,199 | | | | | | | | | |
Total non-current liabilities | | | 4,098,865 | | | | 434,990 | | | | | | | | | |
Stockholders' equity | | | 10,896,035 | | | | 16,107,590 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Total Liabilities and Stockholders' Equity | | $ | 24,854,042 | | | $ | 23,892,779 | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Consolidated Statements of Income | | | | | | | | | | | | | | | | |
| | Three months ended June 30 | | | Six months ended June 30 | |
| | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | |
Product sales | | $ | 17,772,137 | | | $ | 21,295,574 | | | $ | 38,938,318 | | | $ | 46,492,752 | |
Handling & freight income | | | 2,280,992 | | | | 2,664,136 | | | | 4,905,801 | | | | 5,738,344 | |
| | | | | | | | | | | | | | | | |
Net Sales | | | 20,053,129 | | | | 23,959,710 | | | | 43,844,119 | | | | 52,231,096 | |
| | | | | | | | | | | | | | | | |
Costs and expenses: | | | | | | | | | | | | | | | | |
Cost of products sold | | | 3,773,902 | | | | 4,110,910 | | | | 8,349,653 | | | | 8,945,436 | |
Distributor royalties and commissions | | | 7,634,899 | | | | 9,422,481 | | | | 16,572,566 | | | | 20,544,853 | |
Selling, general and administrative | | | 8,050,852 | | | | 9,589,478 | | | | 16,668,725 | | | | 19,521,277 | |
| | | | | | | | | | | | | | | | |
Total Costs and Expenses | | | 19,459,653 | | | | 23,122,869 | | | | 41,590,944 | | | | 49,011,566 | |
| | | | | | | | | | | | | | | | |
Income from operations | | | 593,476 | | | | 836,841 | | | | 2,253,175 | | | | 3,219,530 | |
| | | | | | | | | | | | | | | | |
Other income (expense): | | | | | | | | | | | | | | | | |
Interest income | | | 14,704 | | | | 100,691 | | | | 35,419 | | | | 235,564 | |
Interest expense | | | (41,384 | ) | | | (9,981 | ) | | | (50,934 | ) | | | (10,394 | ) |
Other income (expense) | | | 114,035 | | | | 17,523 | | | | 126,090 | | | | (17,589 | ) |
| | | | | | | | | | | | | | | | |
Income before income taxes | | | 680,831 | | | | 945,074 | | | | 2,363,750 | | | | 3,427,111 | |
Provision for income taxes | | | 271,000 | | | | 376,000 | | | | 942,000 | | | | 1,332,000 | |
| | | | | | | | | | | | | | | | |
Net Income | | $ | 409,831 | | | $ | 569,074 | | | $ | 1,421,750 | | | $ | 2,095,111 | |
| | | | | | | | | | | | | | | | |
Earnings per common share - Basic | | $ | 0.03 | | | $ | 0.04 | | | $ | 0.10 | | | $ | 0.13 | |
Weighted average shares | | | 12,821,000 | | | | 15,821,000 | | | | 13,556,000 | | | | 15,847,000 | |
| | | | | | | | | | | | | | | | |
Earnings per common share - Diluted | | $ | 0.03 | | | $ | 0.04 | | | $ | 0.10 | | | $ | 0.13 | |
Weighted average shares | | | 12,821,000 | | | | 15,821,000 | | | | 13,556,000 | | | | 15,847,000 | |
| | | | | | | | | | | | | | | | |
Cash dividends declared per common share | | $ | 0.05 | | | $ | 0.05 | | | $ | 0.05 | | | $ | 0.05 | |
Reliv International, Inc. and Subsidiaries
ADD THREE
Net sales by Market
(in thousands)
| | Three months ended June 30, | | | Change From | |
| | 2009 | | | 2008 | | | Prior Year | |
| | Amount | | | % of sales | | | Amount | | | % of sales | | | Amount | | | % | |
| | | | | | | | | | | | | | | | | | |
United States | | | 17,638 | | | | 87.9 | % | | | 20,435 | | | | 85.3 | % | | | (2,797 | ) | | | -13.7 | % |
Australia/New Zealand | | | 535 | | | | 2.7 | % | | | 682 | | | | 2.8 | % | | | (147 | ) | | | -21.6 | % |
Canada | | | 313 | | | | 1.6 | % | | | 436 | | | | 1.8 | % | | | (123 | ) | | | -28.2 | % |
Mexico | | | 345 | | | | 1.7 | % | | | 481 | | | | 2.0 | % | | | (136 | ) | | | -28.3 | % |
Europe | | | 305 | | | | 1.5 | % | | | 381 | | | | 1.6 | % | | | (76 | ) | | | -19.9 | % |
Asia | | | 917 | | | | 4.6 | % | | | 1,545 | | | | 6.5 | % | | | (628 | ) | | | -40.6 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated total | | | 20,053 | | | | 100.0 | % | | | 23,960 | | | | 100.0 | % | | | (3,907 | ) | | | -16.3 | % |
Net sales by Market | |
(in thousands) | |
| | Six months ended June 30, | | | Change From | |
| | 2009 | | | 2008 | | | Prior Year | |
| | Amount | | | % of sales | | | Amount | | | % of sales | | | Amount | | | % | |
| | | | | | | | | | | | | | | | | | |
United States | | | 39,019 | | | | 89.0 | % | | | 45,120 | | | | 86.4 | % | | | (6,101 | ) | | | -13.5 | % |
Australia/New Zealand | | | 1,051 | | | | 2.4 | % | | | 1,428 | | | | 2.7 | % | | | (377 | ) | | | -26.4 | % |
Canada | | | 648 | | | | 1.5 | % | | | 897 | | | | 1.7 | % | | | (249 | ) | | | -27.8 | % |
Mexico | | | 627 | | | | 1.4 | % | | | 880 | | | | 1.7 | % | | | (253 | ) | | | -28.8 | % |
Europe | | | 613 | | | | 1.4 | % | | | 905 | | | | 1.8 | % | | | (292 | ) | | | -32.3 | % |
Asia | | | 1,886 | | | | 4.3 | % | | | 3,001 | | | | 5.7 | % | | | (1,115 | ) | | | -37.2 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated total | | | 43,844 | | | | 100.0 | % | | | 52,231 | | | | 100.0 | % | | | (8,387 | ) | | | -16.1 | % |
The following table sets forth, as of June 30, 2009 and 2008, 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 6/30/2009 | | | As of 6/30/2008 | | | Change in % | |
| | Active Distributors | | | Master Affiliates and Above | | | Active Distributors | | | Master Affiliates and Above | | | Active Distributors | | | Master Affiliates and Above | |
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
United States | | | 54,160 | | | | 7,880 | | | | 55,070 | | | | 10,080 | | | | -1.7 | % | | | -21.8 | % |
Australia/New Zealand | | | 2,440 | | | | 180 | | | | 2,420 | | | | 220 | | | | 0.8 | % | | | -18.2 | % |
Canada | | | 1,230 | | | | 120 | | | | 1,230 | | | | 150 | | | | 0.0 | % | | | -20.0 | % |
Mexico | | | 1,820 | | | | 210 | | | | 1,540 | | | | 220 | | | | 18.2 | % | | | -4.5 | % |
Europe | | | 1,090 | | | | 160 | | | | 1,250 | | | | 170 | | | | -12.8 | % | | | -5.9 | % |
Asia | | | 7,300 | | | | 840 | | | | 7,940 | | | | 920 | | | | -8.1 | % | | | -8.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Consolidated total | | | 68,040 | | | | 9,390 | | | | 69,450 | | | | 11,760 | | | | -2.0 | % | | | -20.2 | % |
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