EXHIBIT 99
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 Reports Strong Growth
in Sales, Earnings for 2Q and First Half of 2003
FOR IMMEDIATE RELEASE
CHESTERFIELD, MO, August 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 quarter and six months ended June 30, 2003. The company reported strong
increases in net sales and net income, driven by the growth of its network
marketing activities in the United States and other key markets worldwide.
For the second quarter of 2003, Reliv reported net income available to common
shareholders totaling $909,000 (or $0.08 per share basic, or $0.07 diluted).
This represents a 45 percent increase over the $625,000 in net income (or $0.06
per share basic, $0.05 per share diluted), reported in the prior-year period.
For the six months ended June 30, 2003, the company reported net income
available to common shareholders of $1,886,000 (or $0.16 per share basic, or
$0.14 diluted), a 74 percent increase over the $1,084,000 (or $0.10 per share
basic, $0.09 diluted) in net income available to common shareholders reported
for the first half of 2002.
Reliv net sales also showed strong growth in the second quarter period, and in
the first half of 2003. Net sales totaled $17.8 million in 2Q 2003, up 16
percent from $15.4 million in the same period last year. For the first six
months of 2003, Reliv net sales surged to $36.4 million, an increase of 22
percent compared to $29.9 million in net sales for the first half of 2002.
Robert L. Montgomery, President and Chief Executive Officer of Reliv, noted that
sales in the United States - the company's largest geographic market - continued
to set the pace for the company. Net sales in the U.S. grew 20 percent compared
to 2Q 2002, he said, while the company's operations in Mexico and Canada also
reported double-digit percentage increases in sales for the quarter.
Reliv International, Inc.
Mr. Montgomery said, "Our strong second quarter results reflect the impact of
efforts to expand our network of independent distributors. We continue to see
growth in the recruitment of new distributors in key geographic markets such as
the United States, Canada and Mexico. We're also excited about the potential for
growth in Malaysia - where we were recently licensed to begin operations. All of
these developments should provide a solid foundation for continued growth in the
months ahead."
Reliv International, Inc., based in suburban St. Louis (USA), manufactures and
distributes several lines of food products, including nutritional and fiber
supplements, diet management products, functional foods, sports drink mixes and
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
Wednesday, August 6, 2003. The call can be accessed via listen-only dial-in
conference lines by dialing 913-981-4900. 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 241882. 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 discussed in the
Company's filings with the SEC on forms 10-K and 10-Q.
Reliv International, Inc. and Subsidiaries
ADD TWO
Consolidated Balance Sheets
June 30 December 31
2003 2002
------------------------------
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 6,675,228 $ 3,437,966
Accounts and notes receivable, less allowances of
$5,000 in 2003 and 2002 529,931 688,898
Accounts due from employees and distributors 105,000 104,000
Inventories 4,586,215 3,457,145
Other current assets 1,030,738 744,431
------------------------------
Total current assets 12,927,112 8,432,440
Other assets 526,761 442,927
Note receivable from officer 27,750 48,250
Accounts due from employees and distributors 64,000 78,000
Net property, plant and equipment 9,309,749 9,444,369
------------------------------
Total Assets $ 22,855,372 $ 18,445,986
==============================
Liabilities and Stockholders' Equity
Total current liabilities 7,278,437 6,039,513
Long-term debt, less current maturities 3,823,631 4,057,042
Deferred income taxes 84,435 84,435
Other non-current liabilities 521,396 467,350
Stockholders' equity 11,147,473 7,797,646
------------------------------
Total Liabilities and Stockholders' Equity $ 22,855,372 $ 18,445,986
==============================
Consolidated Statements of Operations
Three months ended June 30 Six months ended June 30
2003 2002 2003 2002
------------------------------ ----------------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Sales at Retail $ 25,407,802 $ 22,001,451 $52,263,966 $ 42,859,961
Less Distributor allowances on product purchases 7,641,155 6,552,420 15,825,869 12,926,646
------------------------------ ----------------------------
Net Sales 17,766,647 15,449,031 36,438,097 29,933,315
Costs and expenses:
Cost of products sold 3,008,695 2,915,799 6,316,413 5,672,509
Distributor royalties and discounts 6,914,507 5,912,303 14,169,705 11,484,361
Selling, general and administrative 6,321,793 5,594,051 12,692,777 10,868,810
------------------------------ ----------------------------
Total Costs and Expenses 16,244,995 14,422,153 33,178,895 28,025,680
------------------------------ ----------------------------
Income from operations 1,521,652 1,026,878 3,259,202 1,907,635
Other income (expense):
Interest income 24,162 9,150 39,904 15,639
Interest expense (69,961) (97,818) (138,008) (219,276)
Other income\expense 84,187 62,001 61,504 68,757
------------------------------ ----------------------------
Income before income taxes 1,560,040 1,000,211 3,222,602 1,772,755
Provision for income taxes 629,000 375,000 1,314,000 689,000
------------------------------ ----------------------------
Net Income 931,040 625,211 1,908,602 1,083,755
Preferred dividends accrued and paid 22,500 -- 22,500 --
------------------------------ ----------------------------
Net income available to common shareholders $ 908,540 $ 625,211 $ 1,886,102 $ 1,083,755
================================================================
Earnings per common share
Basic $ 0.08 $ 0.06 $ 0.16 $ 0.10
============================== ============================
Diluted $ 0.07 $ 0.05 $ 0.14 $ 0.09
============================== ============================
Weighted average shares of common stock
and common stock equivalents outstanding
Basic 11,962,000 11,292,000 11,966,000 11,329,000
============================== ============================
Diluted 13,668,000 12,157,000 13,501,000 12,194,000
============================== ============================
** 30 **