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 2003 Net Profits Grow 74 Percent,
On a 20 Percent Increase in Net Sales Compared To 2002
FOR IMMEDIATE RELEASE
CHESTERFIELD, MO, March 17, 2004 -- 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 year ended December 31, 2003 and for the fourth quarter of
2003.
Year-End Results
For the year, the company's net income available to common shareholders totaled
$4.34 million, or $0.29 per share basic ($0.26 per share diluted) - an increase
of more than 74 percent compared to 2002, when net profits reached $2.49
million, or $0.18 per share basic ($0.15 per share diluted). Revenues grew 22
percent, to total $76.96 million in 2003, compared to sales of $62.93 million in
2002. The earnings per share for 2002 have been restated for the company's 5 for
4 stock split in November, 2003.
The company's outstanding 2003 results were driven by the continued strong
growth of its network marketing activities in the United States, and in several
key international markets. Network marketing sales in the United States - the
company's largest market - grew 24 percent in 2003 compared to the prior year.
Fourth Quarter Results
For the fourth quarter of 2003, Reliv posted a 25 percent increase in worldwide
sales - to $20.91 million, up from $16.76 million for the same period last year.
Fourth quarter net income available to common shareholders also showed a
significant improvement - reaching $1.26 million, or $0.08 per share basic
($0.08 per share diluted), nearly doubling the earnings performance in the
fourth quarter of 2002, where the company earned $668,000, or $0.05 per share
basic ($0.04 per share diluted).
Reliv's network marketing sales in the United States rose 25 percent in the
fourth quarter of 2003 compared to the same period in 2002, while network
marketing sales from the company's international markets increased by 22 percent
during the same period.
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Reliv International, Inc.
Robert L. Montgomery, President and Chief Executive Officer of Reliv, said, "The
company is continuing to prosper by focusing on the fundamentals of our
business. We have unique strengths, in that we formulate and manufacture our own
nutritional products based on the latest advances in food science, and we go to
market by offering an exceptional business opportunity to those who want to own
their own business. It's a simple business model, but it really works - as our
recent results prove."
Mr. Montgomery noted that the company's growth continues to be broad-based -
with significant gains in several key international markets. "Along with the
double-digit percentage growth we experienced in the U.S., our fourth quarter
sales grew sharply in Canada (up 32 percent), Australia and New Zealand (up 24
percent) and the United Kingdom (up 20 percent)," he said. The company also
reported more than $500,000 in net sales from Malaysia, a market where Reliv
opened for business in November, 2003.
Reliv continues to see strong growth from its efforts to recruit new
distributors for its marketing network, Mr. Montgomery said. New 2003
sponsorships grew 15 percent in the U.S. and 27 percent in Canada compared to
the prior year, he said.
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 Standard
Time on Wednesday, March 17, 2004. The call can be accessed via listen-only
dial-in conference lines by dialing 800-399-3409. A replay of this call will be
available by telephone from 3:00 p.m. Eastern Standard Time until midnight by
calling 800-642-1687 and entering ID number 6178311#. 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
December 31 December 31
2003 2002
(Unaudited) (Audited)
----------------------------
Assets
Current assets:
Cash and cash equivalents $ 7,902,508 $ 3,364,484
Accounts and notes receivable, less allowances of
$8,600 in 2003 and $10,000 in 2002 751,887 688,898
Accounts due from employees and distributors 72,846 104,000
Inventories:
Finished goods 3,171,185 2,361,064
Raw materials 1,047,068 680,516
Sales aids and promotional materials 452,066 415,565
----------------------------
Total inventories 4,670,319 3,457,145
Refundable income taxes -- 8,072
Prepaid expenses and other current assets 727,939 637,968
Deferred income taxes 296,164 171,873
----------------------------
Total current assets 14,421,663 8,432,440
Other assets 793,091 442,927
Note receivable from officer -- 48,250
Accounts due from employees and distributors 52,291 78,000
Property, plant and equipment 17,214,909 16,484,644
Less accumulated depreciation and amortization 7,801,038 7,040,275
----------------------------
9,413,871 9,444,369
----------------------------
Total assets $24,680,916 $18,445,986
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Reliv International, Inc. and Subsidiaries
Consolidated Balance Sheets
December 31 December 31
2003 2002
(Unaudited) (Audited)
-------------------------------
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $ 6,596,785 $ 5,358,082
Income taxes payable 147,520 257,441
Current maturities of long-term debt 421,063 415,235
Current maturities of capital leases -- 8,755
-------------------------------
Total current liabilities 7,165,368 6,039,513
Non-current liabilities:
Long-term debt, less current maturities 3,700,138 4,057,042
Non-current deferred income taxes 77,000 84,435
Other non-current liabilities 666,032 467,350
-------------------------------
Total non-current liabilities 4,443,170 4,608,827
Stockholders' equity:
Preferred stock, par value $0.001 per share; 3,000,000 shares
authorized; 97,500 issued and outstanding as of 12/31/03 975,000 --
Common stock, par value $0.001 per share; 30,000,000 shares
authorized, 15,143,961 shares issued and 15,141,224 shares
outstanding as of 12/31/03 and 15,008,451 shares
issued and 14,902,415 outstanding as of 12/31/02 15,144 12,007
Additional paid-in capital 18,684,338 17,863,505
Notes receivable - officers and directors -- (2,449)
Accumulated deficit (5,878,869) (8,960,782)
Accumulated other comprehensive loss:
Foreign currency translation adjustment (714,527) (775,383)
Treasury stock (8,708) (339,252)
-------------------------------
Total stockholders' equity 13,072,378 7,797,646
-------------------------------
Total liabilities and stockholders' equity $ 24,680,916 $ 18,445,986
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Reliv International, Inc. and Subsidiaries
Consolidated Statements of Operations
Quarter ended December 31 Year to Date December 31
2003 2002 2003 2002
(Unaudited) (Unaudited) (Unaudited) (Audited)
------------------------------- --------------------------------
Sales at suggested retail $ 31,145,554 $ 24,081,425 $ 110,569,576 $ 90,110,444
Less distributor allowances on
product purchases 10,237,654 7,324,954 33,609,853 27,183,581
------------------------------- --------------------------------
Net sales 20,907,900 16,756,471 76,959,723 62,926,863
Costs and expenses:
Cost of products sold 3,611,510 3,122,169 13,228,050 11,569,163
Distributor royalties and commissions 8,147,942 6,499,893 29,916,744 24,205,030
Selling, general and administrative 7,070,221 5,983,687 26,438,447 22,898,359
------------------------------- --------------------------------
Total Costs and Expenses 18,829,673 15,605,749 69,583,241 58,672,552
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Income from operations 2,078,227 1,150,722 7,376,482 4,254,311
Other income (expense):
Interest income 28,381 15,911 91,038 43,047
Interest expense (46,526) (57,908) (234,956) (340,343)
Other income/expense (10,897) (33,842) 66,876 77,792
------------------------------- --------------------------------
Income before income taxes 2,049,185 1,074,883 7,299,440 4,034,807
Provision for income taxes 773,000 407,000 2,902,000 1,542,000
------------------------------- --------------------------------
Net income $ 1,276,185 $ 667,883 $ 4,397,440 $ 2,492,807
=============================== ================================
Preferred dividends accrued and paid 14,745 -- 56,762 --
------------------------------- --------------------------------
Net income available to common
shareholders 1,261,440 667,883 4,340,678 2,492,807
=============================== ================================
Basic earnings per share $ 0.08 $ 0.05 $ 0.29 $ 0.18
=============================== ================================
Diluted earnings per share $ 0.08 $ 0.04 $ 0.26 $ 0.15
=============================== ================================
Weighted average shares of common
stock and common stock equivalents
outstanding
Basic 15,004,000 14,220,000 14,969,000 14,144,000
=============================== ================================
Diluted 16,736,000 16,188,000 16,706,000 16,111,000
=============================== ================================
NOTE: 2002 earnings per share have been restated for the effect of the Company's
5 for 4 stock split in November, 2003.
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