EXHIBIT 99
NEWS RELEASE
For more information, contact:
| Steve Albright | or: | Fred Nielson | Barry Murov | |
| Chief Financial Officer | Investor Relations | Media Relations | ||
| (636) 733-1305 | (636) 733-1314 | (636) 733-1303 |
FOR IMMEDIATE DISTRIBUTION
Reliv International Reports Fourth-Quarter
and Full-Year Financial Results for 2010
CHESTERFIELD, Mo., March 2, 2011 – Reliv International, Inc. (NASDAQ:RELV), a maker of nutritional supplements that promote optimal health, today reported its financial results for the fourth quarter and full year of 2010.
Fourth-Quarter Results
Reliv reported net sales of $18.5 million for the fourth quarter of 2010, compared to sales of $20.7 million for the fourth quarter of 2009. U.S. sales declined by 12.6 percent for the quarter compared to the same quarter in 2009. International sales for the quarter rose 3.4 percent, with growth reported in Canada and Europe. The largest percentage increase for the quarter was in Reliv’s Europe region, which reported an increase of 56.6 percent. Reliv’s Europe region includes the United Kingdom, Ireland, Germany, Austria and the Netherlands.
The company reported net income of $559,000, or $0.05 per diluted share, for the fourth quarter of 2010. That compared to net income of $769,000, or $0.06 per diluted share, for the fourth quarter of 2009. Income from operations for the fourth quarter of 2010 was $827,000 compared to $1.1 million in the same quarter of 2009.
Full-Year Results
Reliv reported net sales of $78.7 million for 2010 compared to net sales of $85.4 million in 2009. U.S. net sales dropped from $75.0 million to $66.9 million. Net sales in Reliv’s foreign markets for 2010 rose 14.4 percent compared to net sales for 2009, increasing in all markets except Asia. Net sales were particularly strong in Canada, up 39.5 percent over 2009 net sales, and Europe, where net sales rose 55.8 percent over 2009 net sales. Growth in these markets in 2010 was driven by strong increases in new distributor enrollments and new Master Affiliate qualifications. Master Affiliate is the level in which distributors are eligible to earn generation royalties.
Net income for 2010 totaled $1.7 million compared to $2.5 million in 2009. Diluted earnings per share totaled $0.14 in 2010 compared to $0.20 in 2009.
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Reliv International Fourth-Quarter Financial Results
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“The increase in international sales was the highlight of 2010,” said Robert L. Montgomery, chairman, president and chief executive officer of Reliv. “We certainly plan to continue that growth throughout 2011.”
“Our U.S. business still felt the lingering impact of the recession. While the overall economy ultimately grew during 2010, our distributors were not confident enough in economic growth to increase their supplement spending during the year. Tight credit also had an impact on our base,” he said.
“We know we must turn around our U.S. sales in order to achieve overall sales growth in 2011,” Montgomery said. “To that end, in February 2011, we introduced Reliv 24K, our first ready-to-drink shot created to provide healthy energy and greater mental clarity while reducing stress at the same time.”
Montgomery added, “Reliv 24K has energized our distributor base and I am optimistic about the product’s growth potential.”
Net cash generated from operating activities totaled $2.2 million for 2010, compared to $5.8 million for 2009. Reliv had cash and cash equivalents of $6.3 million as of Dec. 31, 2010, an increase of $570,000 from the balance as of Dec. 31, 2009.
New distributor enrollments in 2010 declined by 23 percent compared to 2009. As of Dec. 31, 2010, Reliv had total distributors of 60,740, of which 8,600 are at distributor levels of Master Affiliate and above.
Reliv will host a conference call to discuss fourth-quarter and year-end 2010 earnings with investors. The conference call will be on March 2, 2011 at 1:00 p.m. Eastern. The dial-in number is 800-591-6944. The participant passcode is 47068864. A replay will be available for one week at 888-286-8010 using the passcode 70001145. 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 the call concludes.
About Reliv
Reliv International, Inc., based in Chesterfield, Mo., makes nutritional supplements that promote optimal health. Reliv supplements address essential nutrition, weight loss, athletic performance, digestive health, women’s health, anti-aging and energy and mental focus. The company also markets premium personal care products through its Relivables line. Reliv sells its products through an international network marketing system of independent distributors in 15 countries. Learn more about Reliv at www.reliv.com, or on Facebook, Twitter or YouTube.
--FINANCIAL HIGHLIGHTS FOLLOW –
| Reliv International, Inc. and Subsidiaries | ||||||||
| ADD TWO | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| December 31, | December 31, | |||||||
| 2010 | 2009 | |||||||
| (Unaudited) | (Audited) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 6,331,038 | $ | 5,760,913 | ||||
| Accounts receivable, less allowances of | ||||||||
| $67,100 in 2010 and $59,700 in 2009 | 291,405 | 326,022 | ||||||
| Accounts due from employees and distributors | 55,854 | 78,500 | ||||||
| Inventories | 5,650,790 | 5,084,404 | ||||||
| Other current assets | 916,239 | 979,333 | ||||||
| Total current assets | 13,245,326 | 12,229,172 | ||||||
| Other assets | 1,867,976 | 1,569,079 | ||||||
| Intangible assets, net | 1,785,987 | 1,991,497 | ||||||
| Net property, plant and equipment | 7,944,412 | 8,364,685 | ||||||
| Total assets | $ | 24,843,701 | $ | 24,154,433 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Total current liabilities | $ | 6,387,164 | $ | 6,761,481 | ||||
| Long-term debt, less current maturities | 4,150,770 | 4,719,542 | ||||||
| Other non-current liabilities | 375,244 | 406,544 | ||||||
| Total stockholders’ equity | 13,930,523 | 12,266,866 | ||||||
| Total liabilities and stockholders’ equity | $ | 24,843,701 | $ | 24,154,433 | ||||
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| Reliv International, Inc. and Subsidiaries | ||||||||||||||||
| ADD THREE | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| Three months ended December 31, | Year ended December 31, | |||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||
| Product sales | $ | 16,474,506 | $ | 18,328,386 | $ | 70,033,580 | $ | 75,845,599 | ||||||||
| Handling & freight income | 2,052,935 | 2,341,037 | 8,714,808 | 9,553,471 | ||||||||||||
| Net sales | 18,527,441 | 20,669,423 | 78,748,388 | 85,399,070 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of products sold | 3,645,518 | 4,061,813 | 15,738,885 | 16,862,622 | ||||||||||||
| Distributor royalties and commissions | 6,889,546 | 7,691,726 | 29,450,171 | 32,172,148 | ||||||||||||
| Selling, general and administrative | 7,165,656 | 7,832,051 | 30,652,045 | 32,557,704 | ||||||||||||
| Total costs and expenses | 17,700,720 | 19,585,590 | 75,841,101 | 81,592,474 | ||||||||||||
| Income from operations | 826,721 | 1,083,833 | 2,907,287 | 3,806,596 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 12,410 | 6,754 | 47,744 | 52,292 | ||||||||||||
| Interest expense | (46,649 | ) | (60,738 | ) | (205,985 | ) | (173,867 | ) | ||||||||
| Other income | 54,518 | 97,513 | 76,110 | 300,260 | ||||||||||||
| Income before income taxes | 847,000 | 1,127,362 | 2,825,156 | 3,985,281 | ||||||||||||
| Provision for income taxes | 288,000 | 358,000 | 1,142,000 | 1,470,000 | ||||||||||||
| Net income | $ | 559,000 | $ | 769,362 | $ | 1,683,156 | $ | 2,515,281 | ||||||||
| Earnings per common share - Basic | $ | 0.05 | $ | 0.06 | $ | 0.14 | $ | 0.20 | ||||||||
| Weighted average shares | 12,389,000 | 12,230,000 | 12,382,000 | 12,894,000 | ||||||||||||
| Earnings per common share - Diluted | $ | 0.05 | $ | 0.06 | $ | 0.14 | $ | 0.20 | ||||||||
| Weighted average shares | 12,389,000 | 12,230,000 | 12,383,000 | 12,894,000 | ||||||||||||
| Cash dividends declared per common share | $ | 0.02 | $ | 0.02 | $ | 0.04 | $ | 0.07 | ||||||||
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| Reliv International, Inc. and Subsidiaries | ||||||||||||||||||||||||
| ADD FOUR | ||||||||||||||||||||||||
| Net sales by Market | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| Three months ended December 31, | Change From Prior Year | |||||||||||||||||||||||
| 2010 | 2009 | |||||||||||||||||||||||
| Amount | % of sales | Amount | % of sales | Amount | % | |||||||||||||||||||
| United States | 15,518 | 83.8 | % | 17,760 | 85.9 | % | (2,242 | ) | -12.6 | % | ||||||||||||||
| Australia/New Zealand | 624 | 3.4 | % | 787 | 3.8 | % | (163 | ) | -20.7 | % | ||||||||||||||
| Canada | 525 | 2.8 | % | 472 | 2.3 | % | 53 | 11.2 | % | |||||||||||||||
| Mexico | 328 | 1.8 | % | 353 | 1.7 | % | (25 | ) | -7.1 | % | ||||||||||||||
| Europe | 639 | 3.4 | % | 408 | 2.0 | % | 231 | 56.6 | % | |||||||||||||||
| Asia | 893 | 4.8 | % | 889 | 4.3 | % | 4 | 0.4 | % | |||||||||||||||
| Consolidated total | 18,527 | 100.0 | % | 20,669 | 100.0 | % | (2,142 | ) | -10.4 | % | ||||||||||||||
| Net sales by Market | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| Year ended December 31, | Change From Prior Year | |||||||||||||||||||||||
| 2010 | 2009 | |||||||||||||||||||||||
| Amount | % of sales | Amount | % of sales | Amount | % | |||||||||||||||||||
| United States | 66,896 | 85.0 | % | 75,041 | 87.9 | % | (8,145 | ) | -10.9 | % | ||||||||||||||
| Australia/New Zealand | 2,548 | 3.2 | % | 2,459 | 2.9 | % | 89 | 3.6 | % | |||||||||||||||
| Canada | 2,159 | 2.8 | % | 1,548 | 1.8 | % | 611 | 39.5 | % | |||||||||||||||
| Mexico | 1,435 | 1.8 | % | 1,371 | 1.6 | % | 64 | 4.7 | % | |||||||||||||||
| Europe | 2,080 | 2.6 | % | 1,335 | 1.5 | % | 745 | 55.8 | % | |||||||||||||||
| Asia | 3,630 | 4.6 | % | 3,645 | 4.3 | % | (15 | ) | -0.4 | % | ||||||||||||||
| Consolidated total | 78,748 | 100.0 | % | 85,399 | 100.0 | % | (6,651 | ) | -7.8 | % | ||||||||||||||
| The following table sets forth, as of December 31, 2010 and 2009, 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 12/31/2010 | As of 12/31/2009 | Change From Prior Year | ||||||||||||||||||||||
| Active Distributors | Master Affiliates and Above | Active Distributors | Master Affiliates and Above | Active Distributors | Master Affiliates and Above | |||||||||||||||||||
| United States | 47,450 | 6,990 | 54,040 | 8,640 | -12.2 | % | -19.1 | % | ||||||||||||||||
| Australia/New Zealand | 2,210 | 190 | 2,540 | 210 | -13.0 | % | -9.5 | % | ||||||||||||||||
| Canada | 1,380 | 200 | 1,170 | 140 | 17.9 | % | 42.9 | % | ||||||||||||||||
| Mexico | 1,850 | 300 | 2,200 | 260 | -15.9 | % | 15.4 | % | ||||||||||||||||
| Europe | 2,170 | 300 | 1,150 | 180 | 88.7 | % | 66.7 | % | ||||||||||||||||
| Asia | 5,680 | 620 | 6,840 | 720 | -17.0 | % | -13.9 | % | ||||||||||||||||
| Consolidated total | 60,740 | 8,600 | 67,940 | 10,150 | -10.6 | % | -15.3 | % | ||||||||||||||||
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