EXHIBIT 99
NEWS RELEASE
FOR FURTHER INFORMATION, CONTACT:
David G. Kreher Fred A. Nielson Al Palombo
Chief Financial Officer Investor Relations Cameron Associates
(636) 537-9715 (636) 733-1314 212-554-5488
Reliv International Posts 23 Percent Increase in Net Sales,
Paced By Growth in the U.S. Market During 3Q 2004
FOR IMMEDIATE RELEASE
CHESTERFIELD, MO, November 3, 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 September 30, 2004 and for the first nine
months of the year.
The company posted a 23 percent increase in worldwide net sales during the third
quarter of 2004, totaling $24.17 million - compared to sales of $19.61 million
in 3Q 2003. Net income available to common shareholders advanced 6 percent to
$1.26 million, or $0.08 per share basic ($0.07 per share diluted) in the third
quarter, up from $1.19 million, or $0.08 per share basic ($0.07 per share
diluted) in 3Q 2003. Third quarter earnings were impacted by certain one-time
costs associated with the adoption of the documentation and testing of internal
controls requirements of the Sarbanes-Oxley Act.
This provision in the Sarbanes-Oxley Act ("Act") was intended to be a key
initiative to provide shareholders and the investing public greater confidence
in the accuracy and quality of the financial information provided by companies.
Although it has placed an enormous burden on small cap companies, such as Reliv,
the company supports the principles behind the Act. However, the cost associated
in meeting the Act's requirements have been substantial. During the third
quarter of 2004, the company spent an additional $630,000 on accounting and
related fees than it did in the prior year quarter. Most of those additional
expenses related to the work performed on the internal control documentation and
testing as required under the Act. Through nine months of 2004, the company has
spent an additional $930,000 on accounting and related fees than it did during
the same period in 2003. Many of these expenses will be one-time costs, as part
of the first year start up and documentation.
For the first nine months of 2004, Reliv produced a 28 percent increase in net
sales, to $71.54 million, compared to $56.05 million during the first nine
months of 2003. Net income available to common shareholders grew to $4.09
million - or $0.26 per share basic ($0.24 per share diluted). This represents a
33 percent increase over the earnings generated during the first nine months of
2003.
Strong sales growth in the United States, the company's largest geographic
market, set the pace for Reliv's results in 3Q 2004. Net sales in the U.S.
increased 23 percent in 3Q 2004 compared to the same period last year.
Year-to-date net sales have grown 29 percent in the U.S. versus 2003. Reliv also
reported a 27 percent increase in net sales from its international markets
during the third quarter, led by solid growth in Malaysia, Singapore, Canada,
Australia and New Zealand.
-- MORE --
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Reliv International, Inc.
ADD ONE
Robert L. Montgomery, President and Chief Executive Officer of Reliv, said,
"Despite a challenging economy, our sales growth in key markets continues to be
quite vigorous. In fact, we have produced sales growth of at least 20 percent in
the United States for ten quarters in a row now. Importantly, these results are
being generated without major product introductions or new lines of business.
We've shown that we can grow at a very attractive rate, simply by focusing on
the fundamentals of our business."
According to Mr. Montgomery, Reliv's International Conference in August
attracted about 6,000 independent Reliv distributors from around the world -
making it the largest such event in the company's history. Reliv's distributor
development activities also continue to fare well in 2004, Mr. Montgomery said,
with total Master Affiliates up 31 percent worldwide on September 30, 2004,
compared to the number who had earned that designation through the first nine
months of 2003.
The company also announced a new clinical trial program that will submit several
of its core products, as well as new products now in development, to independent
laboratory testing. A principal goal of this program is to establish clinical
evidence of the safety and efficacy of Reliv's products, according to Dr. Carl
W. Hastings, Reliv Vice President and Chief Food Scientist.
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 third quarter and first
nine months earnings with institutional investors at 1:00 p.m. Eastern Standard
Time on November 3, 2004.
The dial-in number for institutional investors is 800-399-3409, conference code
1770063. A 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 1770063. 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 -
5
Reliv International, Inc. and Subsidiaries
ADD TWO
Consolidated Balance Sheets
September 30 December 31
2004 2003
-------------------------------
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $ 9,143,714 $ 7,902,508
Accounts and notes receivable, less allowances of
$7,600 in 2004 and $8,600 in 2003 711,707 751,887
Accounts due from employees and distributors 106,706 72,846
Inventories 6,166,423 4,670,319
Other current assets 1,807,476 1,024,103
-------------------------------
Total current assets 17,936,026 14,421,663
Other assets 1,117,747 793,091
Accounts due from employees and distributors 185,294 52,291
Net property, plant and equipment 10,075,958 9,413,871
-------------------------------
Total Assets $ 29,315,025 $ 24,680,916
===============================
Liabilities and Stockholders' Equity
Total current liabilities 9,055,983 7,165,368
Long-term debt, less current maturities 3,439,111 3,700,138
Deferred income taxes 77,000 77,000
Other non-current liabilities 901,198 666,032
Stockholders' equity 15,841,733 13,072,378
-------------------------------
Total Liabilities and Stockholders' Equity $ 29,315,025 $ 24,680,916
===============================
Consolidated Statements of Operations
Three months ended September 30 Nine months ended September 30
2004 2003 2004 2003
------------------------------- --------------------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Sales at Retail $ 34,654,446 $ 27,160,056 $ 102,794,387 $ 79,424,022
Less Distributor allowances on product purchases 10,482,388 7,546,330 31,253,292 23,372,199
------------------------------- --------------------------------
Net Sales 24,172,058 19,613,726 71,541,095 56,051,823
Costs and expenses:
Cost of products sold 4,139,646 3,300,127 11,994,551 9,616,540
Distributor royalties and commissions 9,534,381 7,599,097 28,417,457 21,768,802
Selling, general and administrative 8,433,789 6,675,449 24,269,000 19,368,226
------------------------------- --------------------------------
Total Costs and Expenses 22,107,816 17,574,673 64,681,008 50,753,568
------------------------------- --------------------------------
Income from operations 2,064,242 2,039,053 6,860,087 5,298,255
Other income (expense):
Interest income 28,849 22,753 77,202 62,657
Interest expense (65,621) (50,422) (177,523) (188,430)
Other income\expense 43,662 16,269 65,880 77,773
------------------------------- --------------------------------
Income before income taxes 2,071,132 2,027,653 6,825,646 5,250,255
Provision for income taxes 807,000 815,000 2,719,000 2,129,000
------------------------------- --------------------------------
Net Income 1,264,132 1,212,653 4,106,646 3,121,255
Preferred dividends accrued and paid -- 19,516 12,292 42,016
------------------------------- --------------------------------
Net income available to common shareholders $ 1,264,132 $ 1,193,137 $ 4,094,354 $ 3,079,239
=============================== ================================
Earnings per common share - Basic $ 0.08 $ 0.08 $ 0.26 $ 0.21
=============================== ================================
Weighted average shares 15,864,000 14,956,000 15,473,000 14,954,000
=============================== ================================
Earnings per common share - Diluted $ 0.07 $ 0.07 $ 0.24 $ 0.18
=============================== ================================
Weighted average shares 16,974,000 17,120,000 17,069,000 16,956,000
=============================== ================================
** 30 **
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