EXHIBIT 99
NEWS RELEASE
FOR FURTHER INFORMATION, CONTACT:
David G. Kreher Fred A. Nielson Al Palombo
Chief Operating Officer Investor Relations Cameron Associates
(636) 537-9715 (636) 733-1314 212-554-5488
Reliv International Posts 34 Percent Increase in Net Sales,
32 Percent Growth in Net Profit for 2Q 2004
FOR IMMEDIATE RELEASE
CHESTERFIELD, MO, August 4, 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 three months ending June 30, 2004 and for the first half of
the year.
Reliv's worldwide net sales grew 34 percent during the second quarter of 2004,
reaching $23.89 million - compared to sales of $17.77 million in 2Q 2003. Net
income available to common shareholders rose 32 percent to $1.2 million, or
$0.08 per share basic ($0.07 per share diluted) in the second quarter, up from
earnings of $909,000, or $0.06 per share basic ($0.05 per share diluted) in 2Q
2003. The 2003 earnings per share have been adjusted for the five-for-four stock
split declared in September, 2003.
For the first half of 2004, Reliv generated a 30 percent increase in net sales,
to $47.37 million, compared to $36.44 million during the first six months of
2003. Net income available to common shareholders reached $2.83 million - or
$0.19 per share basic ($0.17 per share diluted). This represents a 50 percent
increase over the earnings results produced during the first half of 2003.
The company continues to experience strong growth in the United States, its
largest geographic market. Net sales in the U.S. advanced 34 percent in 2Q 2004
compared to the same period last year. Reliv also posted positive results in
most of its international markets, with solid growth in Malaysia, the United
Kingdom, Canada, Australia and New Zealand leading to a 37 percent improvement
in international net sales during 2Q 2004 compared to the prior-year period.
Robert L. Montgomery, President and Chief Executive Officer of Reliv, said,
"It's gratifying to see our strong performance continue. For nine quarters in a
row now, we've generated sales growth of at least 20 percent in the United
States, our largest market. That's a tribute both to the effectiveness and
enthusiasm of our network of independent distributors - and to our own focus on
the fundamentals of our business."
-- MORE --
4
Reliv International, Inc.
ADD ONE
According to Mr. Montgomery, Reliv's distributor recruitment activities are
faring well in 2004 - with enrollments up 35 percent worldwide in the second
quarter compared to the prior-year performance. New enrollments in Malaysia -
where the company opened for business last September - and a 20 percent growth
in sponsorships in the US set the pace for the company during the period, 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 a conference call to discuss the second quarter and first
half earnings with institutional investors at 1:00 p.m. Eastern Daylight Time on
August 4, 2004. A dial-in replay of this call will be available for 72 hours by
telephone from 3:00 p.m. Eastern by calling 800-642-1687 and using conference
code 9040257. 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 twenty four hours after the call concludes.
Please access the web site at least 15 minutes before the scheduled conference
call to register.
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 -
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Reliv International, Inc. and Subsidiaries
ADD TWO
Consolidated Balance Sheets
June 30 December 31
2004 2003
-----------------------------
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 7,409,656 $ 7,902,508
Accounts and notes receivable, less allowances of
$7,600 in 2004 and $8,600 in 2003 647,604 751,887
Accounts due from employees and distributors 117,306 72,846
Inventories 6,049,703 4,670,319
Other current assets 1,355,679 1,024,103
-----------------------------
Total current assets 15,579,948 14,421,663
Other assets 1,109,257 793,091
Accounts due from employees and distributors 195,963 52,291
Net property, plant and equipment 10,244,778 9,413,871
-----------------------------
Total Assets $ 27,129,946 $ 24,680,916
=============================
Liabilities and Stockholders' Equity
Total current liabilities 9,170,382 7,165,368
Long-term debt, less current maturities 3,599,128 3,700,138
Deferred income taxes 77,000 77,000
Other non-current liabilities 885,200 666,032
Stockholders' equity 13,398,236 13,072,378
-----------------------------
Total Liabilities and Stockholders' Equity $ 27,129,946 $ 24,680,916
=============================
Consolidated Statements of Operations
Three months ended June 30 Six months ended June 30
2004 2003 2004 2003
----------------------------- -----------------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Sales at Retail $ 34,280,799 $ 25,407,802 $ 68,139,940 $ 52,263,966
Less Distributor allowances on product purchases 10,389,594 7,641,155 20,770,903 15,825,869
----------------------------- -----------------------------
Net Sales 23,891,205 17,766,647 47,369,037 36,438,097
Costs and expenses:
Cost of products sold 4,000,626 3,008,695 7,854,905 6,316,413
Distributor royalties and commissions 9,562,686 6,914,507 18,883,076 14,169,705
Selling, general and administrative 8,314,261 6,321,793 15,835,211 12,692,777
----------------------------- -----------------------------
Total Costs and Expenses 21,877,573 16,244,995 42,573,192 33,178,895
----------------------------- -----------------------------
Income from operations 2,013,632 1,521,652 4,795,845 3,259,202
Other income (expense):
Interest income 27,883 24,162 48,353 39,904
Interest expense (46,671) (69,961) (111,902) (138,008)
Other income\expense 8,023 84,187 22,218 61,504
----------------------------- -----------------------------
Income before income taxes 2,002,867 1,560,040 4,754,514 3,222,602
Provision for income taxes 802,000 629,000 1,912,000 1,314,000
----------------------------- -----------------------------
Net Income 1,200,867 931,040 2,842,514 1,908,602
Preferred dividends accrued and paid -- 22,500 12,292 22,500
----------------------------- -----------------------------
Net income available to common shareholders $ 1,200,867 $ 908,540 $ 2,830,222 $ 1,886,102
============================= =============================
Earnings per common share - Basic $ 0.08 $ 0.06 $ 0.19 $ 0.13
============================= =============================
Weighted average shares 15,393,000 14,953,000 15,285,000 14,958,000
============================= =============================
Earnings per common share - Diluted $ 0.07 $ 0.05 $ 0.17 $ 0.11
============================= =============================
Weighted average shares 17,389,000 17,085,000 16,976,000 16,877,000
============================= =============================
** 30 **
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