EXHIBIT 99
NEWS RELEASE
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Steve Albright | or: | Fred Nielson | Mark Murphy |
Chief Financial Officer | | Investor Relations | Media Relations |
(636) 733-1305 | | (636) 733-1314 | (636) 733-1391 |
FOR IMMEDIATE DISTRIBUTION
Reliv International Reports First-Quarter Financial Results for 2013
CHESTERFIELD, Mo., May 1, 2013 – Reliv International, Inc. (NASDAQ:RELV), a maker of nutritional supplements that promote optimal health, today reported its financial results for the first quarter of 2013.
First-Quarter Results
Reliv reported net sales of $18.9 million for the first quarter of 2013, compared to net sales of $19.7 million for the first quarter of 2012. U.S. net sales declined by 4.2 percent for the quarter compared to the same quarter in 2012. International net sales for the quarter declined 5.7 percent, with the continued growth in Europe of 26.6 percent offset by declines in Asia and Australia of 55.3 percent and 17.0 percent, respectively.
The company reported net income of $195,000, or $0.02 per diluted share, for the first quarter of 2013 compared to net income of $532,000, or $0.04 per diluted share, for the first quarter of 2012. Income from operations for the first quarter of 2013 was $435,000 compared to $914,000 in the same quarter of 2012.
“Sales declines in Asia and Australia coupled with investments in new staffing in those markets significantly contributed to the decline in profitability overall,” said Robert L. Montgomery, chairman and chief executive officer of Reliv. “We have devoted resources and launched a series of enhancements to our business model in these markets in an effort to spur growth. Examples include a preferred customer program in Australia and new programs in the Philippines intended to increase attention and focus on retail sales by distributors. I believe such proactive measures will reenergize these markets.”
“Reliv’s European expansion continued as the first quarter of 2013 marked Europe’s 14th consecutive quarter of year-over-year net sales growth,” he added. “France officially became Reliv’s 16th country of operation in April and was celebrated with well-attended events across the country. Momentum in Europe continues to build and we are devoting resources to fuel additional sales growth.”
“In the United States, Reliv launched our latest product, LunaRich X™, and a new points-based LunaRich wellness system in January 2013,” Montgomery continued. “LunaRich X is the most concentrated form of lunasin currently available. Lunasin is the peptide scientists have identified as the key to many of soy’s documented health benefits. LunaRich X has been welcomed enthusiastically by distributors and consumers, accounting for 7.2 percent of U.S. net sales in the first quarter of 2013. We anticipate growth in LunaRich X sales, as additional research is published and market awareness increases.”
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Reliv International First-Quarter Financial Results
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“On March 1, 2013, Reliv implemented a new pricing structure in the United States, pairing a modest price increase with increased servings per unit, offset by a reduced shipping charge,” he said. “The resulting cost per serving is only pennies higher for most products, and feedback from our distributors has been positive. Adjusting servings per unit to provide a full month’s supply helps facilitate regular monthly sales and the reduced shipping helps eliminate a common point-of-sale objection.”
“The network marketing industry is seeing e-commerce becoming as important as in-person sales, and Reliv is taking steps to stay in front of this shift in our industry’s business model,” Montgomery said. “Reliv is nearing the completion of the first step in this process, creating a custom content management system. This system will provide the platform to pursue additional online upgrades. This year will also see the launch of a new online shopping cart, designed to make it easier for consumers to purchase our products.”
“As we work to build for the future, we continue to reduce costs where appropriate and to maintain a strong balance sheet,” he added. Reliv had cash and cash equivalents of $5.87 million as of March 31, 2013, virtually unchanged from $5.80 million on December 31, 2012.
As of March 31, 2013, Reliv had 56,040 distributors – a decline of 4.3 percent from March 31, 2012 – of which 5,600 are Master Affiliate level and above. Master Affiliate is the level at which distributors are eligible to earn generation royalties.
About Reliv International, Inc.
Reliv International, based in Chesterfield, Mo., produces nutritional supplements that promote optimal nutrition along with premium skincare products. Reliv supplements address essential nutrition, weight loss, athletic performance, digestive health, women's health, anti-aging and healthy energy. Reliv is the exclusive provider of LunaRich® products, which optimize levels of lunasin, the peptide behind many of soy’s health benefits. The company sells its products through an international network marketing system of independent distributors in 16 countries. Learn more about Reliv at www.reliv.com, or on Facebook, Twitter or YouTube.
Statements made in this news release that are not historical facts are “forward-looking” statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements may include, but are not limited to, statements containing words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” or similar expressions. Factors that could cause actual results to differ are identified in the public filings made by Reliv with the Securities and Exchange Commission. More information on factors that could affect Reliv’s business and financial results are included in its public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which are available on the Company’s web site,www.reliv.com.
--FINANCIAL HIGHLIGHTS FOLLOW –
Reliv International, Inc. and Subsidiaries | | | | | | |
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Consolidated Balance Sheets | | | | | | |
| | March 31 | | | December 31 | |
| | 2013 | | | 2012 | |
| | (Unaudited) | | | | |
Assets | | | | | | | | |
Current Assets: | | | | | | | | |
Cash and cash equivalents | | $ | 5,865,285 | | | $ | 5,801,042 | |
Accounts receivable, less allowances of | | | | | | | | |
$27,500 in 2013 and $35,700 in 2012 | | | 148,377 | | | | 247,087 | |
Accounts and note due from employees and distributors | | | 139,052 | | | | 109,346 | |
Inventories | | | 5,370,955 | | | | 5,262,916 | |
Other current assets | | | 1,790,567 | | | | 1,070,301 | |
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Total current assets | | | 13,314,236 | | | | 12,490,692 | |
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Other assets | | | 5,870,734 | | | | 5,656,077 | |
Net property, plant and equipment | | | 6,995,023 | | | | 7,111,772 | |
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Total Assets | | $ | 26,179,993 | | | $ | 25,258,541 | |
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Liabilities and Stockholders' Equity | | | | | | | | |
| | | | | | | | |
Total current liabilities | | $ | 7,428,737 | | | $ | 6,614,631 | |
Long-term debt, less current maturities | | | 2,297,859 | | | | 2,401,312 | |
Other non-current liabilities | | | 681,838 | | | | 660,728 | |
Stockholders' equity | | | 15,771,559 | | | | 15,581,870 | |
| | | | | | | | |
Total Liabilities and Stockholders' Equity | | $ | 26,179,993 | | | $ | 25,258,541 | |
Consolidated Statements of Operations | | | | | | |
| | Three months ended March 31 | |
| | 2013 | | | 2012 | |
| | (Unaudited) | | | (Unaudited) | |
Product sales | | $ | 16,889,458 | | | $ | 17,614,840 | |
Handling & freight income | | | 1,967,806 | | | | 2,128,804 | |
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Net Sales | | | 18,857,264 | | | | 19,743,644 | |
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Costs and expenses: | | | | | | | | |
Cost of products sold | | | 3,903,858 | | | | 3,900,581 | |
Distributor royalties and commissions | | | 7,003,204 | | | | 7,455,160 | |
Selling, general and administrative | | | 7,515,488 | | | | 7,474,246 | |
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Total Costs and Expenses | | | 18,422,550 | | | | 18,829,987 | |
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Income from operations | | | 434,714 | | | | 913,657 | |
Other income (expense): | | | | | | | | |
Interest income | | | 37,164 | | | | 9,314 | |
Interest expense | | | (17,502 | ) | | | (30,919 | ) |
Other expense | | | (26,575 | ) | | | (22,668 | ) |
| | | | | | | | |
Income before income taxes | | | 427,801 | | | | 869,384 | |
Provision for income taxes | | | 233,000 | | | | 337,000 | |
| | | | | | | | |
Net Income | | $ | 194,801 | | | $ | 532,384 | |
| | | | | | | | |
Earnings per common share - Basic | | $ | 0.02 | | | $ | 0.04 | |
Weighted average shares | | | 12,620,000 | | | | 12,512,000 | |
| | | | | | | | |
Earnings per common share - Diluted | | $ | 0.02 | | | $ | 0.04 | |
Weighted average shares | | | 12,708,000 | | | | 12,633,000 | |
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Cash dividends declared per common share | | $ | - | | | $ | - | |
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Reliv International, Inc. and Subsidiaries | | | | | | | | | | | | |
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Net sales by Market | | | | | | | | | |
(in thousands) | | Three months ended March 31, | | | Change from | |
| | 2013 | | | 2012 | | | prior year | |
| | Amount | | | % of Net Sales | | | Amount | | | % of Net Sales | | | Amount | | | % | |
| | | | | | | | | | | | | | | | | | |
United States | | | 15,109 | | | | 80.1 | % | | | 15,770 | | | | 79.9 | % | | | (661 | ) | | | -4.2 | % |
Australia/New Zealand | | | 448 | | | | 2.4 | % | | | 540 | | | | 2.7 | % | | | (92 | ) | | | -17.0 | % |
Canada | | | 554 | | | | 2.9 | % | | | 550 | | | | 2.8 | % | | | 4 | | | | 0.7 | % |
Mexico | | | 278 | | | | 1.5 | % | | | 287 | | | | 1.4 | % | | | (9 | ) | | | -3.1 | % |
Europe | | | 2,020 | | | | 10.7 | % | | | 1,595 | | | | 8.1 | % | | | 425 | | | | 26.6 | % |
Asia | | | 448 | | | | 2.4 | % | | | 1,002 | | | | 5.1 | % | | | (554 | ) | | | -55.3 | % |
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Consolidated Total | | | 18,857 | | | | 100.0 | % | | | 19,744 | | | | 100.0 | % | | | (887 | ) | | | -4.5 | % |
The following table sets forth, as of March 31, 2013 and 2012, 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.
Active Distributors and Master Affiliates and above by Market | | | | | | | | | |
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| | As of 3/31/2013 | | | As of 3/31/2012 | | | Change in % | |
| | Active Distributors | | | Master Affiliates and Above | | | Active Distributors | | | Master Affiliates and Above | | | Active Distributors | | | Master Affiliates and Above | |
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United States | | | 40,020 | | | | 3,960 | | | | 42,910 | | | | 4,550 | | | | -6.7 | % | | | -13.0 | % |
Australia/New Zealand | | | 1,710 | | | | 180 | | | | 1,950 | | | | 120 | | | | -12.3 | % | | | 50.0 | % |
Canada | | | 1,310 | | | | 170 | | | | 1,340 | | | | 190 | | | | -2.2 | % | | | -10.5 | % |
Mexico | | | 1,340 | | | | 100 | | | | 1,640 | | | | 140 | | | | -18.3 | % | | | -28.6 | % |
Europe | | | 7,090 | | | | 730 | | | | 4,900 | | | | 480 | | | | 44.7 | % | | | 52.1 | % |
Asia | | | 4,570 | | | | 460 | | | | 5,790 | | | | 500 | | | | -21.1 | % | | | -8.0 | % |
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Consolidated Total | | | 56,040 | | | | 5,600 | | | | 58,530 | | | | 5,980 | | | | -4.3 | % | | | -6.4 | % |
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