EXHIBIT 99
NEWS RELEASE
For more information, contact:
| Steve Albright | or: | Fred Nielson | Barry Murov |
| Chief Financial Officer | | | Media Relations |
| (636) 733-1305 | | | (636) 733-1303 |
FOR IMMEDIATE DISTRIBUTION
Reliv International Reports Fourth-Quarter and
Full-Year Financial Results for 2009
CHESTERFIELD, Mo., Feb. 25, 2010 – Reliv International, Inc. (NASDAQ:RELV), a nutrition and direct selling company, today reported its fourth-quarter and full-year 2009 earnings. Earnings per share increased in the fourth quarter of 2009 compared to the same quarter in 2008.
Fourth-quarter results
Net sales for the fourth quarter of 2009 equaled $20.7 million, a decline of 6.5 percent compared to the fourth quarter of 2008. Net sales in the United States for the fourth quarter of 2009 totaled $17.8 million, a decline of 8.7 percent compared to the same quarter in 2008. Sales outside of the U.S. rose 9.6 percent in the quarter to $2.9 million. Approximately 75 percent of the increase in international sales was due to foreign currency fluctuations.
Net income for the quarter more than tripled to $769,000 compared to $250,000 for the same period of 2008. Earnings per share increased from $0.02 to $0.06 in the respective quarters. Both net income and earnings per share in the fourth quarter of 2008 were reduced by investment losses on a private equity fund and other investments.
Income from operations in the fourth quarter equaled $1.1 million, a decline of 18.2 percent compared to the fourth quarter of 2008.
Full-year results
Net sales for 2009 were $85.4 million compared to $98.2 million in 2008. U.S. net sales in 2009 totaled $75.0 million, down 12.1 percent compared to 2008 net sales. International net sales, at $10.4 million, were down 19.2 percent in 2009 compared to 2008. Approximately 50 percent of the decrease was due to currency fluctuations.
Net income for 2009 equaled $2.5 million or $0.20 per diluted share, compared to $2.9 million or $0.19 per diluted share in 2008. Earnings per share in 2009 benefited from a significant repurchase of stock during the year. Earnings per share and net income in 2008, as noted above, were reduced by investment losses.
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Reliv International, Inc. and Subsidiaries
ADD ONE
Net cash generated from operating activities in 2009 was $5.5 million compared to $3.7 million for 2008. Reliv had cash and cash equivalents of $5.8 million as of Dec. 31, 2009.
New distributor enrollments were up for both the fourth quarter and the full year of 2009. Quarterly enrollments rose nearly 19 percent compared to the fourth quarter of 2008. For 2009, new enrollments rose approximately 9.4 percent over sponsoring in 2008.
As of Dec. 31, 2009, Reliv had approximately 67,940 distributors, up approximately 1 percent from Dec. 31, 2008. The number of U.S. distributors as of Dec. 31, 2009, was 54,040, representing a 1.1 percent increase from the end of 2008. Reliv distributors outside of the United States totaled 13,900 as of Dec. 31, 2009, up slightly compared to Dec. 31, 2008.
Robert L. Montgomery, chairman, president and chief executive officer, said, “The recession continued to negatively affect our distributors and customers in the fourth quarter, but the impact wasn’t as dramatic as in the first three quarters of the year.”
Montgomery said, “We slowed the rate of our sales decline significantly in the fourth quarter, reflecting a smaller decline in the size of average orders in the quarter. Our goal, of course, is to turn that into growth in 2010,” he added.
“We have a stable and slightly growing distributor base,” Montgomery said. “We’ve kept costs under control so that when sales increase, we should see a solid increase in net income as well. I’m confident in our 2010 growth strategy to increase our brand awareness by emphasizing the role of Reliv supplements in living a healthy, active lifestyle.”
Montgomery said, “The basics of our business remain strong. Reliv makes nutrition simple. Our science-based nutritional supplements are second to none, and we offer our distributors an outstanding business opportunity.”
Reliv will host a conference call to discuss fourth-quarter and year-end earnings with investors at 2:00 p.m. Eastern Time on February 25th. The dial-in number for investors is 866-510-0707. The participant passcode is 96177508. To register, please call in 15 minutes prior to start of the call. A replay of this call will be available beginning today at 4 p.m. Eastern for one week by telephone calling 888-286-8010 and using the passcode 97161311. 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 67,940 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 | | | | | | |
| | | | | | | |
| | | December 31, | | | December 31, | |
| | | 2009 | | | 2008 | |
| | | (Unaudited) | | | (Audited) | |
| | | | | | | |
| Assets | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 5,760,913 | | | $ | 4,460,637 | |
| Accounts and notes receivable, less allowances of | | | | | | | | |
| $59,700 in 2009 and $10,200 in 2008 | | | 326,022 | | | | 494,689 | |
| Accounts due from employees and distributors | | | 78,500 | | | | 241,532 | |
| Inventories | | | 5,084,404 | | | | 6,221,954 | |
| Other current assets | | | 979,333 | | | | 2,176,802 | |
| Total current assets | | | 12,229,172 | | | | 13,595,614 | |
| | | | | | | | | |
| Other assets | | | 1,569,079 | | | | 1,220,546 | |
| Accounts due from employees and distributors | | | - | | | | 164,462 | |
| Intangible assets, net | | | 1,991,497 | | | | - | |
| | | | | | | | | |
| Net property, plant and equipment | | | 8,364,685 | | | | 8,912,157 | |
| | | | | | | | | |
| Total assets | | $ | 24,154,433 | | | $ | 23,892,779 | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Liabilities and stockholders’ equity | | | | | | | | |
| | | | | | | | | |
| Total current liabilities | | $ | 6,761,481 | | | $ | 7,350,199 | |
| Long-term debt, less current maturities | | | 4,719,542 | | | | - | |
| Other non-current liabilities | | | 406,544 | | | | 434,990 | |
| | | | | | | | | |
| Total stockholders’ equity | | | 12,266,866 | | | | 16,107,590 | |
| | | | | | | | | |
| Total liabilities and stockholders’ equity | | $ | 24,154,433 | | | $ | 23,892,779 | |
| | | | | | | | | |
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| Reliv International, Inc. and Subsidiaries | | | | | | | | | | |
| ADD THREE | | | | | | | | | | | | |
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| Consolidated Statements of Operations | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| | | Three months ended December 31, | | | Year ended December 31, | |
| | | 2009 | | | 2008 | | | 2009 | | | 2008 | |
| | | (Unaudited) | | | (Unaudited) | | | (Unaudited) | | | (Audited) | |
| | | | | | | | | | | | | |
| Product sales | | $ | 18,328,386 | | | $ | 19,629,188 | | | $ | 75,845,599 | | | $ | 87,348,915 | |
| Handling & freight income | | | 2,341,037 | | | | 2,473,727 | | | | 9,553,471 | | | | 10,845,903 | |
| | | | | | | | | | | | | | | | | |
| Net sales | | | 20,669,423 | | | | 22,102,915 | | | | 85,399,070 | | | | 98,194,818 | |
| | | | | | | | | | | | | | | | | |
| Costs and expenses: | | | | | | | | | | | | | | | | |
| Cost of products sold | | | 4,061,813 | | | | 4,026,823 | | | | 16,862,622 | | | | 17,437,133 | |
| Distributor royalties and commissions | | | 7,691,726 | | | | 8,342,155 | | | | 32,172,148 | | | | 38,207,889 | |
| Selling, general and administrative | | | 7,832,051 | | | | 8,408,865 | | | | 32,557,704 | | | | 36,881,041 | |
| Total costs and expenses | | | 19,585,590 | | | | 20,777,843 | | | | 81,592,474 | | | | 92,526,063 | |
| | | | | | | | | | | | | | | | | |
| Income from operations | | | 1,083,833 | | | | 1,325,072 | | | | 3,806,596 | | | | 5,668,755 | |
| | | | | | | | | | | | | | | | | |
| Other income (expense): | | | | | | | | | | | | | | | | |
| Interest income | | | 6,754 | | | | 28,164 | | | | 52,292 | | | | 328,057 | |
| Interest expense | | | (60,738 | ) | | | (5,922 | ) | | | (173,867 | ) | | | (37,327 | ) |
| Loss on limited partnership investment | | | - | | | | (335,520 | ) | | | - | | | | (595,887 | ) |
| Other income (expense) | | | 97,513 | | | | (875 | ) | | | 300,260 | | | | 30,353 | |
| Income before income taxes | | | 1,127,362 | | | | 1,010,919 | | | | 3,985,281 | | | | 5,393,951 | |
| Provision for income taxes | | | 358,000 | | | | 761,000 | | | | 1,470,000 | | | | 2,513,000 | |
| | | | | | | | | | | | | | | | | |
| Net income | | $ | 769,362 | | | $ | 249,919 | | | $ | 2,515,281 | | | $ | 2,880,951 | |
| | | | | | | | | | | | | | | | | |
| Earnings per common share - Basic | | $ | 0.06 | | | $ | 0.02 | | | $ | 0.20 | | | $ | 0.19 | |
| Weighted average shares | | | 12,230,000 | | | | 14,367,000 | | | | 12,894,000 | | | | 15,213,000 | |
| | | | | | | | | | | | | | | | | |
| Earnings per common share - Diluted | | $ | 0.06 | | | $ | 0.02 | | | $ | 0.20 | | | $ | 0.19 | |
| Weighted average shares | | | 12,230,000 | | | | 14,369,000 | | | | 12,894,000 | | | | 15,223,000 | |
| | | | | | | | | | | | | | | | | |
| Cash dividends declared per common share | | $ | 0.02 | | | $ | 0.05 | | | $ | 0.07 | | | $ | 0.10 | |
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| Reliv International, Inc. and Subsidiaries | | | | | | | | | | | | | |
| ADD FOUR | | | | | | | | | | | | | | | | | | |
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| Net sales by Market | | | | | | | | | | | | | | | | | | |
| (in thousands) | | | | | | | | | | | | | | | | | | |
| | | Three months ended December 31, | | | Change From Prior Year | |
| | | 2009 | | | 2008 | | | | | | | |
| | | Amount | | | % of sales | | | Amount | | | % of sales | | | Amount | | | % | |
| | | | | | | | | | | | | | | | | | | |
| United States | | | 17,760 | | | | 85.9 | % | | | 19,448 | | | | 88.0 | % | | | (1,688 | ) | | | -8.7 | % |
| Australia/New Zealand | | | 787 | | | | 3.8 | % | | | 585 | | | | 2.6 | % | | | 202 | | | | 34.5 | % |
| Canada | | | 472 | | | | 2.3 | % | | | 359 | | | | 1.6 | % | | | 113 | | | | 31.5 | % |
| Mexico | | | 353 | | | | 1.7 | % | | | 274 | | | | 1.2 | % | | | 79 | | | | 28.8 | % |
| Europe | | | 408 | | | | 2.0 | % | | | 302 | | | | 1.4 | % | | | 106 | | | | 35.1 | % |
| Asia | | | 889 | | | | 4.3 | % | | | 1,135 | | | | 5.2 | % | | | (246 | ) | | | -21.7 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Consolidated total | | | 20,669 | | | | 100.0 | % | | | 22,103 | | | | 100.0 | % | | | (1,434 | ) | | | -6.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net sales by Market | | | | | | | | | | | | | | | | | | | | | | | | |
| (in thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Year ended December 31, | | | Change From Prior Year | |
| | | 2009 | | | 2008 | | | | | | | | | |
| | | Amount | | | % of sales | | | Amount | | | % of sales | | | Amount | | | % | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| United States | | | 75,041 | | | | 87.9 | % | | | 85,382 | | | | 87.0 | % | | | (10,341 | ) | | | -12.1 | % |
| Australia/New Zealand | | | 2,459 | | | | 2.9 | % | | | 2,681 | | | | 2.7 | % | | | (222 | ) | | | -8.3 | % |
| Canada | | | 1,548 | | | | 1.8 | % | | | 1,660 | | | | 1.7 | % | | | (112 | ) | | | -6.7 | % |
| Mexico | | | 1,371 | | | | 1.6 | % | | | 1,543 | | | | 1.6 | % | | | (172 | ) | | | -11.1 | % |
| Europe | | | 1,335 | | | | 1.5 | % | | | 1,528 | | | | 1.5 | % | | | (193 | ) | | | -12.6 | % |
| Asia | | | 3,645 | | | | 4.3 | % | | | 5,401 | | | | 5.5 | % | | | (1,756 | ) | | | -32.5 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Consolidated total | | | 85,399 | | | | 100.0 | % | | | 98,195 | | | | 100.0 | % | | | (12,796 | ) | | | -13.0 | % |
| The following table sets forth, as of December 31, 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 12/31/2009 | | | | As of 12/31/2008 | | | | Change in % | |
| | | | Active Distributors | | | | Master Affiliates and Above | | | | Active Distributors | | | | Master Affiliates and Above | | | | Active Distributors | | | | Master Affiliates and Above | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| United States | | | 54,040 | | | | 8,640 | | | | 53,450 | | | | 10,910 | | | | 1.1 | % | | | -20.8 | % |
| Australia/New Zealand | | | 2,540 | | | | 210 | | | | 2,390 | | | | 240 | | | | 6.3 | % | | | -12.5 | % |
| Canada | | | 1,170 | | | | 140 | | | | 1,260 | | | | 170 | | | | -7.1 | % | | | -17.6 | % |
| Mexico | | | 2,200 | | | | 260 | | | | 1,480 | | | | 240 | | | | 48.6 | % | | | 8.3 | % |
| Europe | | | 1,150 | | | | 180 | | | | 1,100 | | | | 200 | | | | 4.5 | % | | | -10.0 | % |
| Asia | | | 6,840 | | | | 720 | | | | 7,660 | | | | 1,040 | | | | -10.7 | % | | | -30.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Consolidated total | | | 67,940 | | | | 10,150 | | | | 67,340 | | | | 12,800 | | | | 0.9 | % | | | -20.7 | % |
