NEWS RELEASE
FOR FURTHER INFORMATION, CONTACT:
David G. Kreher Fred A. Nielson
Chief Operating Officer Investor Relations
(636) 537-9715 (636) 733-1314
Reliv International Achieves Record-Setting 1Q Sales,
Doubles Net Income Compared To Prior-Year Period
FOR IMMEDIATE RELEASE
CHESTERFIELD, MO, May 6, 2003 -- Reliv 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 March 31, 2003. The company set a record for net
sales from network marketing activities in a single quarter. It also reported
its highest quarterly net income in more than a decade.
In the first quarter of 2003, Reliv's revenues totaled $18.67 million, a 29
percent increase over the $14.48 million reported in the prior-year period. The
company's 1Q 2003 sales represent its largest-ever quarterly revenue total from
network marketing activities in its 15-year history.
Reliv also reported its best quarterly net income performance since 1992. The
company earned $978,000, or $0.08 per share ($0.07 per share diluted), for the
first quarter of 2003. This net income total more than doubles the $459,000, or
$0.04 per share, earned in the prior-year period.
Robert L. Montgomery, President and Chief Executive Officer of Reliv, noted,
"Our first quarter results continue the outstanding growth trend we established
in 2002. It's gratifying to see the company continue to perform well, despite
the economic and war-related uncertainties that consumers face in the United
States and many other markets worldwide. Clearly, consumers value the advanced
food technology that our unique family of nutritional supplements provides."
Reliv reported broad-based gains across its operations, according to Mr.
Montgomery. Sales in the United States - the company's largest market - grew 27
percent in the first quarter of 2003 compared to the prior-year period, he said.
Several key international markets also achieved double-digit (or better)
percentage increases in sales during the quarter, with revenues up 105 percent
in the Philippines, up 24 percent in Mexico, and up 13 percent in Canada, he
said.
Reliv International
Along with solid revenue growth, the company saw outstanding growth in its
network of independent distributors, Mr. Montgomery said. New distributor
sponsorships grew significantly in each of the company's largest markets, he
said - up 32 percent in the United States, up 54 percent in Mexico, and up 22
percent in the Philippines, compared to the first quarter of 2002.
Reliv 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. Reliv International's common stock trades
on The Nasdaq Stock Market(R) under the symbol RELV.
The Company will host an earnings conference call at 1:00 p.m. Eastern on
Tuesday, May 6, 2003. The call can be accessed via listen-only dial-in
conference lines by dialing 913-981-5593. A replay of this call will be
available by telephone from 3:00 p.m. Eastern until midnight by calling
719-457-0820 and using the password (415069#). To listen to the live call,
please call at least 10 minutes before the scheduled conference call to
register.
A live webcast of this call will be available through the Investor Relations
section of the Company's Web site, http://www.reliv.com/us/investor. An online
archive of the broadcast will be available on the Company's Web site in the
Investor Relations section shortly after the call concludes.
NOTE: Any statement released by Reliv 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 described in the
Company's filings with the SEC on forms 10-K and 10-Q.
-- FINANCIAL HIGHLIGHTS FOLLOW -
Reliv International, Inc. and Subsidiaries
Consolidated Balance Sheets
March 31 December 31
2003 2002
------------------------------------------
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $7,318,152 $3,437,966
Accounts and notes receivable, less allowances of
$5,000 in 2003 and 2002 535,339 688,898
Accounts due from employees and distributors 106,000 104,000
Inventories 3,363,993 3,457,145
Other current assets 1,083,745 744,431
------------------------------------------
Total current assets 12,407,229 8,432,440
Other assets 558,053 569,177
Net property, plant and equipment 9,365,399 9,444,369
------------------------------------------
Total Assets $22,330,681 $18,445,986
==========================================
Liabilities and Stockholders' Equity
Total current liabilities $7,544,802 $6,039,513
Long-term debt, less current maturities 4,006,529 4,057,042
Deferred income taxes 84,435 84,435
Other non-current liabilities 460,327 467,350
Stockholders' equity 10,234,588 7,797,646
------------------------------------------
Total Liabilities and Stockholders' Equity $22,330,681 $18,445,986
==========================================
Consolidated Statements of Operations
------------------------------------------
Three months ended March 31
2003 2002
------------------------------------------
(Unaudited) (Unaudited)
Sales at Retail $26,856,164 $20,858,510
Less Distributor allowances on product purchases 8,184,714 6,374,226
------------------------------------------
Net Sales 18,671,450 14,484,284
Costs and expenses:
Cost of products sold 3,307,718 2,756,710
Distributor royalties and discounts 7,255,198 5,572,058
Selling, general and administrative 6,370,984 5,274,759
------------------------------------------
Total Costs and Expenses 16,933,900 13,603,527
------------------------------------------
Income from operations 1,737,550 880,757
Other income (expense):
Interest income 15,742 6,489
Interest expense (68,047) (121,458)
Other income\expense (22,683) 6,756
------------------------------------------
Income before income taxes 1,662,562 772,544
Provision for income taxes 685,000 314,000
------------------------------------------
Net Income $977,562 $458,544
==========================================
Earnings per common share
Basic $0.08 $0.04
==========================================
Diluted $0.07 $0.04
==========================================
Weighted average shares of common stock
and common stock equivalents outstanding
Basic 11,958,000 11,367,000
==========================================
Diluted 13,316,000 11,898,000
==========================================