Exhibit 99
NEWS RELEASE
For more information, contact:
| Steve Albright | or: | Fred Nielson |
| Chief Financial Officer | Investor Relations | |
| (636) 733-1305 | (636) 733-1314 |
FOR IMMEDIATE DISTRIBUTION
Reliv International Reports Fourth-Quarter
and Full-Year Financial Results for 2013
CHESTERFIELD, MO, March 5, 2014 – 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 2013.
Fourth-Quarter Results
Reliv reported net sales of $17.4 million for the fourth quarter of 2013, compared with net sales of $16.9 million for the fourth quarter of 2012. U.S. net sales increased by 4.1 percent for the quarter compared with the same quarter in 2012. International net sales for the quarter decreased 1.5 percent compared to the prior-year quarter, but sales were buoyed by an increase in net sales of Europe of 30.3 percent.
Reliv reported net income of $503,000, or $0.04 per diluted share, for the fourth quarter of 2013 compared with net income of $437,000, or $0.03 per diluted share, for the fourth quarter of 2012. Income from operations for the fourth quarter of 2013 was $888,000compared with $611,000 in the same quarter of 2012.
Full-Year Results
Reliv reported net sales of $68.2 million for 2013 compared with net sales of $68.7 million in 2012. U.S. net sales were essentially flat at $53.7 million in 2013, compared to $53.8 million in 2012. Net sales in Reliv’s foreign markets for 2013 decreased 2.4 percent compared with net sales for 2012. Europe remained Reliv’s biggest growth market, with net sales increasing by 22.7 percent.
Net income for 2013 was $777,000 compared with $1.4 millionin 2012. Diluted earnings per share were $0.06 in 2013 compared with $0.11 in 2012. Net income for 2012 included a one-time after-tax gain of approximately $247,000 ($0.02 diluted EPS) resulting from a discounted balance due on a purchase agreement entered into in a previous year.
“The United States reported sales gains in both the third and fourth quarters of 2013, the first year-over-year quarterly gains in the United States in more than six years at Reliv,” said Robert L. Montgomery, chairman and chief executive officer of Reliv. “U.S. growth led to an increase in net sales worldwide in the third and fourth quarters, up 8.3% and 2.8% respectively, over the same periods in 2012. We believe that an updated distributor compensation plan, sustained expansion in Europe and Reliv’s position as a pioneer in the field of nutritional epigenetics create a solid foundation.”
“Reliv Europe has now recorded 17 straight quarters of year-over-year sales growth,” he added. “We began operations in France in April 2013, and we expect this sales growth in Europe to continue in 2014.”
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“In the United States, we introduced our Ignition Master Affiliate qualification promotion for August-October and then extended the promotion through December. The promotion had an immediate impact, accelerating both distributor sign-ups and product sales,” Montgomery said. “The number of new Master Affiliates, the level at which distributors are eligible to earn generation royalties, increased by 144% in the third quarter and by 125% in the fourth quarter of 2013 compared to the number of new Master Affiliates added during those same quarters in 2012.”
“At the beginning of 2014, we announced that the reduced sales volume level needed to qualify as a Master Affiliate under the Ignition promotion would remain as a permanent update to Reliv’s compensation plan,” he added. “Our objective is to make the Reliv business opportunity more accessible to new people and accelerate distributor advancement. However, we also expect that many Master Affiliates requalified in the fourth quarter of 2013 at the reduced sales volume level versus typically requalifying in January 2014. This will have some impact on our first quarter results for 2014.”
“Reliv’s acquisition in July of the intellectual property of Soy Labs LLC related to the nutritional ingredient lunasin continues to drive business,” Montgomery said. “We have positioned ourselves as the Nutritional Epigenetics Company in our marketing efforts, and the message is resonating with Distributors and consumers alike. The flagship products in the LunaRich® line, Reliv Now® and LunaRich X™, are now our top two sellers, accounting for 18.8% and 15.0% of U.S. net sales in the fourth quarter of 2013, respectively.”
“We are focusing on new people in 2014 and have introduced new distributor welcome kits, new ‘Get Started’ pages on reliv.com and a new Rookie Bonus,” he said. “We also plan to invest in additional resources to drive further technology upgrades. Before the year is out, we plan to announce exciting new online tools to allow our distributors to build their businesses more quickly.”
As of December 31, 2013, Reliv had 53,070 distributors – a decrease of 7.6 percent from December 31, 2012 – of which 7,540 are Master Affiliate level and above. The number of Master Affiliates increased by 6.8% compared to the year-ago total.
Reliv had cash and cash equivalents of $6.7 million as of December 31, 2013, an increase of $856,000 from the balance as of December 31, 2012. Net cash generated from operating activities increasedto $2.6 million in 2013 from $2.5 million in 2012.
About Reliv International, Inc.
Reliv International, based in Chesterfield, MO, produces nutritional supplements that promote 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 | ||
| ADD TWO | ||
| Condensed Consolidated Balance Sheets |
| December 31, | December 31, | |||||||
| 2013 | 2012 | |||||||
| (Unaudited) | (Audited) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 6,656,798 | $ | 5,801,042 | ||||
| Accounts receivable, less allowances of | ||||||||
| $31,800 in 2013 and $35,700 in 2012 | 148,630 | 247,087 | ||||||
| Accounts and note due from employees and distributors | 129,852 | 109,346 | ||||||
| Inventories | 5,214,690 | 5,262,916 | ||||||
| Other current assets | 1,006,099 | 1,070,301 | ||||||
| Total current assets | 13,156,069 | 12,490,692 | ||||||
| Other assets | 4,511,360 | 4,212,442 | ||||||
| Intangible assets, net | 3,195,903 | 1,443,635 | ||||||
| Net property, plant and equipment | 6,735,419 | 7,111,772 | ||||||
| Total Assets | $ | 27,598,751 | $ | 25,258,541 | ||||
| Liabilities and Stockholders’ Equity | ||||||||
| Total current liabilities | $ | 6,649,345 | $ | 6,614,631 | ||||
| Long-term debt, less current maturities | 3,781,607 | 2,401,312 | ||||||
| Other non-current liabilities | 1,037,327 | 660,728 | ||||||
| Stockholders’ equity | 16,130,472 | 15,581,870 | ||||||
| Total Liabilities and Stockholders’ Equity | $ | 27,598,751 | $ | 25,258,541 | ||||
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| Reliv International, Inc. and Subsidiaries | |||||
| ADD THREE | |||||
| Consolidated Statements of Operations |
| Three months ended December 31, | Year ended December 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||
| Product sales | $ | 16,082,933 | $ | 15,016,025 | $ | 62,379,450 | $ | 61,097,180 | ||||||||
| Handling & freight income | 1,301,670 | 1,892,979 | 5,827,288 | 7,612,709 | ||||||||||||
| Net sales | 17,384,603 | 16,909,004 | 68,206,738 | 68,709,889 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of products sold | 3,532,171 | 3,511,453 | 14,022,996 | 13,685,581 | ||||||||||||
| Distributor royalties and commissions | 6,330,914 | 6,326,940 | 24,926,014 | 25,839,621 | ||||||||||||
| Selling, general and administrative | 6,633,625 | 6,459,156 | 27,755,483 | 27,472,807 | ||||||||||||
| Total costs and expenses | 16,496,710 | 16,297,549 | 66,704,493 | 66,998,009 | ||||||||||||
| Income from operations | 887,893 | 611,455 | 1,502,245 | 1,711,880 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 36,330 | 42,557 | 149,402 | 129,415 | ||||||||||||
| Interest expense | (24,279 | ) | (17,164 | ) | (82,461 | ) | (99,502 | ) | ||||||||
| Other income (expense) | (75,114 | ) | 29,663 | (137,596 | ) | 406,176 | ||||||||||
| Income before income taxes | 824,830 | 666,511 | 1,431,590 | 2,147,969 | ||||||||||||
| Provision for income taxes | 322,000 | 230,000 | 655,000 | 789,000 | ||||||||||||
| Net Income | $ | 502,830 | $ | 436,511 | $ | 776,590 | $ | 1,358,969 | ||||||||
| Earnings per common share - Basic | $ | 0.04 | $ | 0.03 | $ | 0.06 | $ | 0.11 | ||||||||
| Weighted average shares | 12,624,000 | 12,504,000 | 12,619,000 | 12,500,000 | ||||||||||||
| Earnings per common share - Diluted | $ | 0.04 | $ | 0.03 | $ | 0.06 | $ | 0.11 | ||||||||
| Weighted average shares | 12,875,000 | 12,643,000 | 12,816,000 | 12,654,000 | ||||||||||||
| Cash dividends declared per common share | $ | 0.01 | $ | 0.01 | $ | 0.03 | $ | 0.03 | ||||||||
** MORE **
| Reliv International, Inc. and Subsidiaries | ||||||||
| ADD FOUR | ||||||||
| Net sales by Market | ||||||||
| (in thousands) | ||||||||
| Three months ended December 31, | Change From | |||||||||||||||||||||||
| 2013 | 2012 | Prior Year | ||||||||||||||||||||||
| Amount | % of sales | Amount | % of sales | Amount | % | |||||||||||||||||||
| United States | 13,550 | 77.9 | % | 13,015 | 77.0 | % | 535 | 4.1 | % | |||||||||||||||
| Australia/New Zealand | 457 | 2.6 | % | 629 | 3.7 | % | (172 | ) | -27.3 | % | ||||||||||||||
| Canada | 466 | 2.7 | % | 491 | 2.9 | % | (25 | ) | -5.1 | % | ||||||||||||||
| Mexico | 219 | 1.3 | % | 224 | 1.3 | % | (5 | ) | -2.2 | % | ||||||||||||||
| Europe | 2,289 | 13.2 | % | 1,757 | 10.4 | % | 532 | 30.3 | % | |||||||||||||||
| Asia | 404 | 2.3 | % | 793 | 4.7 | % | (389 | ) | -49.1 | % | ||||||||||||||
| Consolidated total | 17,385 | 100.0 | % | 16,909 | 100.0 | % | 476 | 2.8 | % | |||||||||||||||
| Net sales by Market | ||||||||
| (in thousands) |
| Year ended December 31, | Change From | |||||||||||||||||||||||
| 2013 | 2012 | Prior Year | ||||||||||||||||||||||
| Amount | % of sales | Amount | % of sales | Amount | % | |||||||||||||||||||
| United States | 53,651 | 78.7 | % | 53,801 | 78.3 | % | (150 | ) | -0.3 | % | ||||||||||||||
| Australia/New Zealand | 1,859 | 2.7 | % | 2,111 | 3.1 | % | (252 | ) | -11.9 | % | ||||||||||||||
| Canada | 1,777 | 2.6 | % | 1,861 | 2.7 | % | (84 | ) | -4.5 | % | ||||||||||||||
| Mexico | 977 | 1.4 | % | 1,056 | 1.5 | % | (79 | ) | -7.5 | % | ||||||||||||||
| Europe | 7,953 | 11.7 | % | 6,481 | 9.4 | % | 1,472 | 22.7 | % | |||||||||||||||
| Asia | 1,990 | 2.9 | % | 3,400 | 5.0 | % | (1,410 | ) | -41.5 | % | ||||||||||||||
| Consolidated total | 68,207 | 100.0 | % | 68,710 | 100.0 | % | (503 | ) | -0.7 | % | ||||||||||||||
The following table sets forth, as of December 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 his or her 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. For the December 31, 2013 data, the active distributor count for Europe includes our preferred customers in France. This program began in mid-2013 and the Europe active distributor count as of 12/31/13 includes 1,500 preferred customers.
Active Distributors and Master Affiliates and above by Market
| Change From | ||||||||||||||||||||||||
| As of 12/31/2013 | As of 12/31/2012 | Prior Year | ||||||||||||||||||||||
Active Distributors | Master Affiliates and Above | Active Distributors | Master Affiliates and Above | Active Distributors | Master Affiliates and Above | |||||||||||||||||||
| United States | 39,270 | 5,590 | 40,470 | 5,150 | -3.0 | % | 8.5 | % | ||||||||||||||||
| Australia/New Zealand | 1,470 | 200 | 1,790 | 190 | -17.9 | % | 5.3 | % | ||||||||||||||||
| Canada | 1,340 | 250 | 1,280 | 230 | 4.7 | % | 8.7 | % | ||||||||||||||||
| Mexico | 1,100 | 160 | 1,680 | 150 | -34.5 | % | 6.7 | % | ||||||||||||||||
| Europe | 6,790 | 940 | 6,920 | 740 | -1.9 | % | 27.0 | % | ||||||||||||||||
| Asia | 3,100 | 400 | 5,290 | 600 | -41.4 | % | -33.3 | % | ||||||||||||||||
| Consolidated total | 53,070 | 7,540 | 57,430 | 7,060 | -7.6 | % | 6.8 | % | ||||||||||||||||
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