EXHIBIT 99
NEWS RELEASE
FOR FURTHER INFORMATION, CONTACT:
R. Scott Montgomery | Fred A. Nielson | Al Palombo |
Senior Vice President | Investor Relations | Cameron Associates |
Worldwide Operations | (636) 733-1314 | Investor Relations |
(636) 733-1306 | | (212) 554-5488 |
Relìv International Reports Second Quarter 2005 Results of Operations
Company Delivers 65 Percent Increase in Net Income with 19 Percent Growth in Net Sales
FOR IMMEDIATE RELEASE
CHESTERFIELD, MO, August 3, 2005 -- Relìv International, Inc. (Nasdaq/NM - RELV), an international manufacturer and network marketer of nutritional supplements and other food technology products, today announced its results of operations for the three months ended June 30, 2005 and for the first half of the year.
A strong performance in the United States led to a 65 percent increase in net income during the second quarter. Net income available to common shareholders reached $1.98 million, or $0.12 per share (diluted), up from earnings of $1.2 million, or $0.07 per share (diluted) in the second quarter of 2004. Relìv’s worldwide net sales increased 19 percent, reaching $28.5 million in the second quarter of 2005, compared to sales of $23.9 million in the second quarter of 2004.
For the first half of 2005, Relìv’s net income available to common shareholders was $4.04 million – or $0.24 per share (diluted). This compares to earnings of $2.83 million, or $0.17 per share (diluted), during the first half of 2004 – a 43 percent increase versus the prior-year period. First-half net sales grew 21 percent, reaching $57.5 million – compared to $47.3 million during the first six months of 2004.
Sales growth in the United States, Relìv’s largest market, continues to set the pace for Reliv’s overall results. U.S. net sales climbed 28 percent in the second quarter of 2005 compared to the same period last year. Relìv reported mixed results from its international markets, with strong growth in Canada (up 20 percent) and the United Kingdom/Ireland (up 62 percent) offset by sales declines in other international operations.
Robert L. Montgomery, President and Chief Executive Officer of Relìv, said, “We are particularly pleased to see exceptional earnings growth in the second quarter, rewarding our shareholders for the outstanding sales performance we continue to achieve in the United States and other key markets. We intend to build on those results in the second half of the year, by leveraging the strength of an exciting new market, and the growing popularity of products like CardioSentials™.”
-- MORE --
Relìv International, Inc.
ADD ONE
Introduced in February 2005, CardioSentials™ generated sales of $1.1 million in the second quarter – or approximately 5 percent of U.S. net product sales. This new dietary supplement is attracting attention in the marketplace, in part because it was shown through an independent clinical study to be safe and effective in reducing cholesterol levels, a significant risk factor for heart disease.
Mr. Montgomery noted that the company entered its 11th country worldwide, when Relìv opened for business in Germany on July 18. “It is an extremely attractive market for us,” Mr. Montgomery said, “not only because it is one of the top five countries in the world for direct selling, but it also represents our first foray into continental Europe. We are excited about the opportunity to build a growing presence for Relìv in this largely untapped market.” Along with Germany, Reliv now sells its products in 10 other countries: United States, Australia, Canada, Ireland, Malaysia, Mexico, the Philippines, Singapore, New Zealand, and the United Kingdom.
Relìv International, Inc., based in suburban St. Louis, manufactures and distributes several lines of food products, including nutritional and fiber supplements, diet management products, functional foods, sports drink mixes and a line of premium skin care products. Its proprietary product lines include an extensive line of soy-based products. Relìv International’s common stock trades on The Nasdaq Stock Market® under the symbol RELV.
Reliv will host a conference call to discuss the second quarter 2005 earnings with investors at 1:00 p.m. Eastern Time on August 3, 2005. The dial-in number for investors is 866-271-5140. Participant pass code is 30789299. To register, please call in 15 minutes prior to start of call. A replay of this call will be available for one week by telephone from 3:00 p.m. Eastern by calling 888-286-8010 and using pass code 55342707. 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/investor. An online archive of the broadcast will be available on Reliv’s Web site in the Investor Relations section twenty-four hours after the call concludes. Please access the web site at least 15 minutes before the scheduled conference call to register.
For more information about Reliv, please visit our website at www.reliv.com
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NOTE: Any statement released by Relìv International, Inc. that is forward looking is made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Editors and investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the Company’s business prospect and performance. This includes economic, competitive, governmental, technological and other factors discussed in the Company’s filings with the SEC on forms 10-K and 10-Q.
-- FINANCIAL HIGHLIGHTS FOLLOW –
Reliv International, Inc. and Subsidiaries | | |
ADD TWO | | |
| | |
Condensed Consolidated Balance Sheets | | |
| June 30 | December 31 |
| 2005 | 2004 |
| (Unaudited) | |
Assets | | |
Current Assets: | | |
Cash and cash equivalents | $5,836,812 | $10,151,503 |
Accounts and notes receivable, less allowances of | | |
$23,700 in 2005 and $11,500 in 2004 | 568,017 | 872,592 |
Accounts due from employees and distributors | 81,850 | 70,620 |
Inventories | 6,561,068 | 5,896,782 |
Other current assets | 2,058,746 | 2,627,118 |
| | |
Total current assets | 15,106,493 | 19,618,615 |
Other assets | 1,866,420 | 1,409,903 |
Net property, plant and equipment | 10,502,930 | 9,968,149 |
| | |
Total Assets | $27,475,843 | $30,996,667 |
| | |
Liabilities and Stockholders' Equity | | |
| | |
Total current liabilities | $13,121,395 | $8,151,968 |
Total non-current liabilities | 3,446,366 | 4,653,946 |
Stockholders' equity | 10,908,082 | 18,190,753 |
| | |
Total Liabilities and Stockholders' Equity | $27,475,843 | $30,996,667 |
| | |
| | | | | |
Consolidated Statements of Income | | | | | |
| Three months ended June 30 | | Six months ended June 30 |
| 2005 | 2004 | | 2005 | 2004 |
| (Unaudited) | (Unaudited) | | (Unaudited) | (Unaudited) |
Sales at Retail | $41,055,868 | $34,280,799 | | $83,011,088 | $68,139,940 |
Less: Distributor allowances on product purchases | 12,509,782 | 10,389,594 | | 25,485,906 | 20,770,903 |
| | | | | |
Net Sales | 28,546,086 | 23,891,205 | | 57,525,182 | 47,369,037 |
| | | | | |
Costs and expenses: | | | | | |
Cost of products sold | 4,711,472 | 4,000,626 | | 9,654,776 | 7,854,905 |
Distributor royalties and commissions | 11,379,011 | 9,562,686 | | 23,090,727 | 18,883,076 |
Selling, general and administrative | 9,190,021 | 8,314,261 | | 18,153,307 | 15,835,211 |
| | | | | |
Total Costs and Expenses | 25,280,504 | 21,877,573 | | 50,898,810 | 42,573,192 |
| | | | | |
Income from operations | 3,265,582 | 2,013,632 | | 6,626,372 | 4,795,845 |
Other income (expense): | | | | | |
Interest expense, net | (37,664) | (18,788) | | (53,131) | (63,549) |
Other income, net | 45,856 | 8,023 | | 48,922 | 22,218 |
| | | | | |
Income before income taxes | 3,273,774 | 2,002,867 | | 6,622,163 | 4,754,514 |
Provision for income taxes | 1,295,000 | 802,000 | | 2,580,000 | 1,912,000 |
| | | | | |
Net Income | 1,978,774 | 1,200,867 | | 4,042,163 | 2,842,514 |
| | | | | |
Preferred dividends accrued and paid | - | - | | - | 12,292 |
| | | | | |
Net income available to common shareholders | $1,978,774 | $1,200,867 | | $4,042,163 | $2,830,222 |
| | | | | |
Earnings per common share | | | | | |
Basic | $0.12 | $0.08 | | $0.25 | $0.19 |
| | | | | |
Diluted | $0.12 | $0.07 | | $0.24 | $0.17 |
Weighted average shares of common stock | | | | | |
and common stock equivalents outstanding | | | | | |
Basic | 16,096,000 | 15,393,000 | | 16,216,000 | 15,285,000 |
| | | | | |
Diluted | 16,622,000 | 17,389,000 | | 16,825,000 | 16,976,000 |
| | | | | |
Reliv International, Inc. and Subsidiaries | | | | | | |
ADD THREE | | | | | | | | |
| | | | | | | | |
Active Distributors and Master Affiliates by Region | | | | | |
| | | | | | | | |
| as of 6/30/2005 | | as of 6/30/2004 | | Change in % |
| | Master Affiliates | | | Master Affiliates | | | Master Affiliates |
| Distributors | | Distributors | | Distributors |
| | | | | | | | |
United States | 50,240 | 13,090 | | 45,040 | 9,870 | | 11.5% | 32.6% |
Australia/New Zealand | 2,790 | 240 | | 2,770 | 230 | | 0.7% | 4.3% |
Canada | 1,370 | 190 | | 1,350 | 160 | | 1.5% | 18.8% |
Mexico | 5,880 | 420 | | 7,740 | 760 | | -24.0% | -44.7% |
United Kingdom/Ireland | 530 | 60 | | 410 | 50 | | 29.3% | 20.0% |
Philippines | 5,640 | 500 | | 6,510 | 580 | | -13.4% | -13.8% |
Malaysia/Singapore | 3,780 | 680 | | 4,080 | 520 | | -7.4% | 30.8% |
| | | | | | | | |
Consolidated total | 70,230 | 15,180 | | 67,900 | 12,170 | | 3.4% | 24.7% |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
Net sales by Region | Three months ended June 30 | | | |
(in thousands) | | | | | | | | |
| 2005 | | 2004 | | Change from prior year | Change in % |
| $ | % of sales | | $ | % of sales | |
| | | | | | | | |
United States | 26,088 | 91.4% | | 20,446 | 85.6% | | 5,642 | 27.6% |
Australia/New Zealand | 505 | 1.8% | | 565 | 2.4% | | -60 | -10.6% |
Canada | 456 | 1.6% | | 378 | 1.6% | | 78 | 20.6% |
Mexico | 293 | 1.0% | | 664 | 2.8% | | -371 | -55.9% |
United Kingdom/Ireland | 235 | 0.8% | | 145 | 0.6% | | 90 | 62.1% |
Philippines | 479 | 1.7% | | 674 | 2.8% | | -195 | -28.9% |
Malaysia/Singapore | 490 | 1.7% | | 1,019 | 4.3% | | -529 | -51.9% |
Germany | 0 | 0.0% | | 0 | 0.0% | | 0 | 0.0% |
| | | | | | | | |
Consolidated Total | 28,546 | 100.0% | | 23,891 | 100.0% | | 4,655 | 19.5% |
| | | | | | | | |
| | | | | | | |
Net sales by Region | Six months ended June 30 | | | |
(in thousands) | | | | | | | | |
| 2005 | | 2004 | | Change from prior year | Change in % |
| $ | % of sales | | $ | % of sales | |
| | | | | | | | |
United States | 52,057 | 90.5% | | 41,017 | 86.6% | | 11,040 | 26.9% |
Australia/New Zealand | 1,081 | 1.9% | | 1,158 | 2.4% | | -77 | -6.6% |
Canada | 907 | 1.6% | | 776 | 1.6% | | 131 | 16.9% |
Mexico | 835 | 1.5% | | 1,335 | 2.8% | | -500 | -37.5% |
United Kingdom/Ireland | 402 | 0.7% | | 289 | 0.6% | | 113 | 39.1% |
Philippines | 1,280 | 2.2% | | 1,370 | 2.9% | | -90 | -6.6% |
Malaysia/Singapore | 963 | 1.7% | | 1,424 | 3.0% | | -461 | -32.4% |
Germany | 0 | 0.0% | | 0 | 0.0% | | 0 | 0.0% |
| | | | | | | | |
Consolidated Total | 57,525 | 100.0% | | 47,369 | 100.0% | | 10,156 | 21.4% |
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