-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UsgubwwNiykTp48thxZGcz4uMTd2ocsNrV/PtAKsfYo0mvGsElphpd3e6kkpVPph ub6i0EP9Ja4zJ6a0p/W5pQ== /in/edgar/work/0001060369-00-000042/0001060369-00-000042.txt : 20001115 0001060369-00-000042.hdr.sgml : 20001115 ACCESSION NUMBER: 0001060369-00-000042 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000930 FILED AS OF DATE: 20001114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: RELIV INTERNATIONAL INC CENTRAL INDEX KEY: 0000768710 STANDARD INDUSTRIAL CLASSIFICATION: [2834 ] IRS NUMBER: 371172197 STATE OF INCORPORATION: IL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-19932 FILM NUMBER: 766388 BUSINESS ADDRESS: STREET 1: 136 CHESTERFIELD INDUSTRIAL BLVD STREET 2: P O BOX 405 CITY: CHESTERFIELD STATE: MO ZIP: 63006-0405 BUSINESS PHONE: 3145379715 MAIL ADDRESS: STREET 1: 136 CHESTERFIELD INDUSTRIAL BLVD STREET 2: P O BOX 405 CITY: CHESTERFIELD STATE: MO ZIP: 63006-0405 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN LIFE INVESTORS INC DATE OF NAME CHANGE: 19920315 10-Q 1 0001.txt FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2000 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2000 Commission File No. 1-11768 RELIV' INTERNATIONAL, INC. (Exact name of registrant as specified in its charter) Delaware 37-1172197 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 136 Chesterfield Industrial Boulevard, P.O. Box 405, Chesterfield, Missouri 63006 (Address of principal executive offices) (Zip Code) (636) 537-9715 (Registrant's telephone number, including area code) Registrant has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and has been subject to such filing requirements for the past 90 days. APPLICABLE ONLY TO CORPORATE ISSUERS: COMMON STOCK 9,560,158 outstanding Shares as of September 30, 2000 Part I. FINANCIAL INFORMATION Item 1. Financial Statements The following consolidated financial statements of the Registrant are attached to this Form 10-Q: 1. Interim Balance Sheet as of September 30, 2000 and Balance Sheet as of December 31, 1999. 2. Interim Statements of Operations for the three and nine month periods ending September 30, 2000 and September 30, 1999. 3. Interim Statements of Cash Flows for the nine month periods ending September 30, 2000 and September 30, 1999. The Financial Statements reflect all adjustments which are, in the opinion of management, necessary for a fair statement of results for the periods presented. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation Financial Condition Current assets of the Company increased during the first nine months of 2000, to $12,665,000 from $8,497,000 as of December 31, 1999. Cash and cash equivalents decreased to $1,265,000 at September 30, as compared to $1,532,000 as of December 31, 1999. Inventory increased by $1,896,000 to $6,601,000 as of September 30, 2000, as compared to December 31, 1999. The increase in the Company's inventory is due to sales growth in the network marketing segment, particularly in the United States, along with additional inventory required for the primary contract packaging customer. Accounts receivable has increased to $3,687,000 from $794,000 as of December 31, 1999. The increase is primarily due to the Company implementing a "full turnkey" operation for its primary contract-packaging customer. This means the Company is responsible for purchasing all ingredients and packaging for this customer's product. Previously, the Company only purchased a portion of the ingredients. Trade accounts payable has also increased as a result of this "turnkey" arrangement. The Company purchased $320,000 of property, plant and equipment during the first nine months of 2000, as compared to $966,000 during the first nine months of 1999. This is the result of the Company's decision to reduce the emphasis on the manufacturing and packaging business. Current liabilities increased by $3,241,000 from $8,307,000 as of December 31, 1999 to $11,548,000 as of September 30, 2000. The primary component of the increase was in trade accounts payable. Trade accounts payable increased by $2,928,000 from $3,994,000 as of December 31, 1999 to $6,922,000 as of September 30, 2000. This increase is related to the change to a "full turnkey" program as discussed earlier. Long-term debt decreased by $10,000 from $4,991,000 as of December 31, 1999 to $4,981,000 as of September 30, 2000. The Company issued a series of private placement notes totaling $240,000 as part of the capital investment required to fund the Company's upcoming entry into the Philippines. Stockholders' equity increased from $6,819,000 as of December 31, 1999 to $7,269,000 as of September 30, 2000, as the result of the net income for the first nine months of 2000. However, equity declined by $324,000 as the result of the foreign currency translation adjustment at September 30, 2000 as compared to December 31, 1999. The Australian, New Zealand and Canadian dollars weakened against the US dollar over the first nine months of 2000. The Company's working capital balance has improved to a balance of $1,116,000 as of September 30, 2000, up from $190,000 as of December 31, 1999. The current ratio has also improved slightly to 1.10 as of September 30, 2000. The Company's line of credit is formula-based and provides a borrowing arrangement based on a percentage of accounts receivable and inventory up to a maximum borrowing limit. During the third quarter of 2000, the Company negotiated an increase in the maximum borrowing limit to $3,000,000. As of September 30, 2000, the Company was in compliance with all covenants in the new line of credit agreement. Management believes that the Company's internally generated funds together with the loan agreement will be sufficient to meet working capital requirements in 2000. Results of Operations The Company had net income of $376,000, or $.04 per share ($.04 per share diluted), for the quarter ended September 30, 2000, compared to a net loss of $350,000, or $.04 per share ($.04 per share diluted), for the same period in 1999. Net sales were comparable between the third quarter of 2000, as compared to 1999. However, the anticipated reduction in manufacturing and packaging sales were offset by increased sales in the network marketing segment. This change in the sales mix led to improved margins and profitability. For the nine months ended September 30, 2000, the Company had net income of $716,000, as compared to a net loss of $650,000 in the first nine months of 1999. Net sales decreased slightly to $16,928,000 in the third quarter of 2000 as compared to $16,967,000 in the third quarter of the prior year. Net sales in the network-marketing segment improved to $12,535,000 in the third quarter of 2000, as compared to $9,730,000 in the third quarter of 1999. This increase was offset by a decrease in the sales of the manufacturing and packaging segment. Sales in this portion of the business decreased to $4,393,000 in the third quarter of 2000, as compared to $7,237,000 in the prior year. This decrease in net sales in this segment was anticipated, as the Company has continued its plan of eliminating unprofitable and low margin sales and customers. Network marketing sales in the United States increased by 32% from $8,558,000 in the third quarter of 1999 to $11,333,000 in the third quarter of 2000. The increase in U.S. sales was due to a change in the compensation plan to the independent distributors, along with continued strong sales of the Company's new product, Reliv ReversAge(TM), a nutritional product that was introduced in May 2000. The change in the compensation plan did not have as strong an impact on foreign sales as in the United States. Sales in the Company's international subsidiaries improved by 3% from $1,171,000 in the third quarter of 1999 to $1,202,000 in the third quarter of 2000. However, results were mixed in the various foreign markets. Sales in Mexico improved by 150% over the third quarter of 1999, but sales in the Australia/New Zealand market continue to struggle with a 42% decline versus the third quarter of 1999. Sales in the Canadian and United Kingdom markets remained essentially flat. Sales commenced in the Company's new operation in the country of Colombia in April of 2000, and sales in the Philippines are scheduled to launch during November 2000. The Company also provides manufacturing and packaging services, including blending, processing and packaging food products in accordance with specifications provided by its customers. Net sales decreased to $4,393,000 in the third quarter of 2000 from $7,237,000 in the prior year. Through the first nine months of the year, net sales in this segment had declined from $22,568,000 in 1999 to $13,283,000 in 2000. This decrease follows the Company's decision to place less emphasis on this business. The Company's sales to third party customers primarily consist of the Company purchasing raw materials, customer-specified packaging materials and selling a finished product to the customer. For the third quarter of 2000, cost of goods sold for these sales were 94% of net sales. Even under optimal operating efficiencies, the gross margin for unrelated customers is substantially less than margins obtained in the sales of the network marketing products. However, profitability in this segment has improved as costs have been reduced and productivity improved. This segment showed operating profit of $270,000 in the third quarter of 2000. Cost of products sold for the network-marketing segment as a percentage of net sales improved from 18.7% in the third quarter of 1999 to 14.1% in the third quarter of 2000. A by-product of the manufacturing and packaging business for unrelated customers is the purchasing power it provides the Company on the materials it uses to manufacture the network marketing products. This, coupled with a price increase on some of the Company's network marketing products in the first quarter of 2000, along with increased production requirements for the network marketing division accounts for the improvement. Distributor royalties and commissions as a percentage of network marketing sales remained constant at 37% in the third quarters of 1999 and 2000. Effective September 1, 2000, the Company modified its compensation plan for the distributors. Previously, distributors could purchase products from the Company at discounts ranging from 25% to 45%, with total royalties of 18% of retail sales paid to master affiliates on their organization's sales. After the modification, the discounts at the time of purchase were changed, ranging from 20% to 40%, with royalty payments totaling up to 23% to master affiliates. The effect of this change on the financial statements is that distributor royalties and commissions will increase as a percentage of net sales. However, this increase will be offset by improved gross margins on these sales. These expenses are governed by the distributor agreements and are directly related to the level of sales. During the second quarter of 2000, the Company closed its Canadian administrative office facility and has replaced it with a smaller distribution center. All customer service, sales and marketing support, accounting and other administrative services for the Canadian operation are being provided from the corporate office in Chesterfield, Missouri. Expenses related to the closing the Canadian facility, including severance payments to the office and sales staff, were incurred during the second quarter. The Company incurred approximately US$70,000 in expenses to close the office. The benefits of this closing are already being realized, with the Canadian operation showing a pre-tax profit in the months of August and September of 2000. Interest expense decreased slightly from $154,000 in the third quarter of 1999 to $150,000 in the third quarter of 2000. The Company's average daily balance drawn on the line of credit decreased slightly in the third quarter of 2000, as compared to the third quarter of 1999, and the Company's long-term debt position has decreased slightly. Safe Harbor Provision of the Private Securities Litigation Act of 1995 and Forward Looking Statements. The statements contained in Item 2 (Management's Discussion and Analysis of Financial Condition and Results of Operation) that are not historical facts may be forward-looking statements (as such term is defined in the rules promulgated pursuant to the Securities Exchange Act of 1934) that are subject to a variety of risks and uncertainties. The forward-looking statements are based on the beliefs of the Company's management, as well as assumptions made by, and information currently available to the Company's management. Accordingly, these statements are subject to significant risks, uncertainties and contingencies which could cause the Company's actual growth, results, performance and business prospects and opportunities in 2000 and beyond to differ materially from those expressed in, or implied by, any such forward-looking statements. Wherever possible, words such as "anticipate," "plan," "expect," "believe," "estimate," and similar expressions have been used to identify these forward-looking statements, but are not the exclusive means of identifying such statements. These risks, uncertainties and contingencies include, but are not limited to, the Company's ability to continue to attract, maintain and motivate its distributors, changes in the regulatory environment affecting network marketing sales and sales of food and dietary supplements and other risks and uncertainties detailed in the Company's other SEC filings. Item 3. Quantitative and Qualitative Disclosure of Market Risk The Company's earnings and cash flow are subject to fluctuations due to changes in foreign currency rates as it has several foreign subsidiaries and continues to explore expansion into other foreign countries. As a result, exchange rate fluctuations may have an effect on its sales and the Company's gross margins. Accounting practices require that the Company's results from operations be converted to U.S. dollars for reporting purposes. Consequently, the reported earnings of the Company in future periods may be significantly affected by fluctuations in currency exchange rates, generally increasing with a weaker U.S. dollar and decreasing with a strengthening U.S. dollar. Products manufactured by the Company for sale to the Company's foreign subsidiaries are transacted in U.S. dollars. As the Company's foreign operations expand, its operating results will be subject to the risks of exchange rate fluctuations and the Company may not be able to accurately estimate the impact of such changes on its future business, product pricing, results of operations or financial condition. The Company also is exposed to market risk in changes in interest rates on its long-term debt arrangements and commodity prices in some of the raw materials it purchases for its manufacturing needs. However, neither presents a risk that would have a material effect on the Company's results of operations or financial condition. Part II. OTHER INFORMATION Item 1. Legal Proceedings In May 1998, the former sales/general manager of the Company's Canadian subsidiary filed a lawsuit claiming damages for unlawful termination and breach of contract. The Company had terminated the individual in April 1998. The Company engaged Canadian counsel to defend the lawsuit. On September 28, 2000, all claims against the Company brought by the individual were dismissed by the Canadian court, which also awarded the Company its legal costs of the proceedings. The period of time for commencing an appeal of the order of dismissal under Canadian rules has expired. Item 2. Changes in Securities Not applicable. Item 3. Defaults Upon Senior Securities Not applicable. Item 4. Submission of Matters to a Vote of Security Holders Not applicable. Item 5. Other Information Not applicable. Item 6. Exhibits and Reports on Form 8-K (a) Exhibits* (b) The Company has not filed a Current Report during the quarter covered by this report. * Also incorporated by reference the Exhibits filed as part of the S-18 Registration Statement of the Registrant, effective November 5, 1985, and subsequent periodic filings. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Dated: November 14, 2000 RELIV' INTERNATIONAL, INC. By: /s/ Robert L. Montgomery ------------------------------------ Robert L. Montgomery, President, Chief Executive Officer and Principal Financial Officer Reliv International, Inc. and Subsidiaries Consolidated Balance Sheets
September 30 December 31 2000 1999 ------------ ------------ (unaudited) (see notes) Assets Current assets: Cash and cash equivalents $ 1,265,376 $ 1,531,700 Accounts and notes receivable, less allowances of $200 in 2000 and $430,000 in 1999 3,686,689 794,037 Note receivable from officer 59,250 164,250 Inventories Finished goods 3,487,056 1,826,748 Raw materials 2,604,196 2,402,006 Sales aids and promotional materials 509,954 476,708 ------------ ------------ Total inventories 6,601,206 4,705,462 Refundable income taxes 592,843 855,178 Prepaid expenses and other current assets 319,764 304,734 Deferred income taxes 139,708 141,236 ------------ ------------ Total current assets 12,664,836 8,496,597 Other assets: Goodwill, net of accumulated amortization of $105,108 in 2000 and $65,692 in 1999 420,430 459,846 Other assets 1,036,295 1,013,130 ------------ ------------ Total other assets 1,456,725 1,472,976 Property, plant and equipment: Land 829,222 829,222 Building 8,388,746 8,384,105 Machinery & equipment 3,975,899 3,870,695 Office equipment 487,752 454,729 Computer equipment & software 1,923,017 1,823,832 ------------ ------------ 15,604,636 15,362,583 Less: Accumulated depreciation (5,296,695) (4,560,338) ------------ ------------ Net property, plant and equipment 10,307,941 10,802,245 ------------ ------------ Total assets $ 24,429,502 $ 20,771,818 ============ ============
See notes to financial statements. Reliv International, Inc. and Subsidiaries Consolidated Balance Sheets
September 30 December 31 2000 1999 ------------ ------------ (unaudited) (see notes) Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued expenses: Trade accounts payable $ 6,921,669 $ 3,993,555 Distributors commissions payable 1,170,207 1,421,286 Sales taxes payable 211,712 204,552 Interest expense payable 55,257 31,871 Payroll and payroll taxes payable 205,803 127,800 Other accrued expenses 269,751 103,548 ------------ ------------ Total accounts payable and accrued expenses 8,834,399 5,882,612 Income taxes payable 119,997 3,391 Borrowings under line of credit 2,018,871 1,792,986 Current maturities of long-term debt and capital lease obligations 570,115 622,973 Unearned income 5,003 5,003 ------------ ------------ Total current liabilities 11,548,385 8,306,965 Capital lease obligations, less current maturities 185,383 305,081 Long-term debt, less current maturities 4,981,303 4,990,639 Other non-current liabilities 445,411 350,415 Stockholders' equity: Common stock, no par value; 20,000,000 shares authorized; 9,560,158 shares issued and outstanding as of 9/30/2000 and 9,551,102 as of 12/31/1999 9,083,841 9,082,382 Notes receivable-officers and directors (33,056) (38,217) Accumulated deficit (1,121,403) (1,889,297) Accumulated other comprehensive loss: Foreign currency translation adjustment (660,362) (336,150) ------------ ------------ Total stockholders' equity 7,269,020 6,818,718 ------------ ------------ Total liabilities and stockholders' equity $ 24,429,502 $ 20,771,818 ============ ============
See notes to financial statements. Reliv International, Inc. and Subsidiaries Consolidated Statements of Operations
Three months ended September 30 Nine months ended September 30 2000 1999 2000 1999 ------------ ------------ ------------ ------------ (unaudited) (unaudited) (unaudited) (unaudited) Sales at suggested retail $ 23,545,302 $ 21,949,007 $ 65,345,434 $ 69,437,840 Less: distributor allowances on product purchases 6,617,214 4,982,390 18,142,164 15,813,749 ------------ ------------ ------------ ------------ Net sales 16,928,088 16,966,617 47,203,270 53,624,091 Costs and expenses: Cost of products sold 5,926,275 8,981,652 17,778,805 27,969,050 Distributor royalties and commissions 4,585,720 3,551,871 12,284,126 11,742,671 Selling, general and administrative 5,685,958 4,883,658 15,502,494 14,683,105 ------------ ------------ ------------ ------------ Total costs and expenses 16,197,953 17,417,181 45,565,425 54,394,826 ------------ ------------ ------------ ------------ Income from operations 730,135 (450,564) 1,637,845 (770,735) Other income (expense): Interest income 11,489 19,472 36,661 81,172 Interest expense (149,999) (154,410) (475,919) (425,103) Other income/(expense) 39,986 21,399 (10,889) 65,779 ------------ ------------ ------------ ------------ Income (loss) before income taxes 631,611 (564,103) 1,187,698 (1,048,887) Provision (benefit) for income taxes 255,822 (213,910) 471,900 (398,577) ------------ ------------ ------------ ------------ Net income (loss) $ 375,789 ($ 350,193) $ 715,798 ($ 650,310) ============ ============ ============ ============ Earnings (loss) per common share $ 0.04 ($ 0.04) $ 0.07 ($ 0.07) ============ ============ ============ ============ Earnings (loss) per common share - assuming dilution $ 0.04 ($ 0.04) $ 0.07 ($ 0.07) ============ ============ ============ ============
See notes to financial statements. Reliv International, Inc. and Subsidiaries Consolidated Statements of Cash Flows (unaudited)
Nine months ended September 30 2000 1999 ----------- ----------- Operating activities: Net income (loss) $ 715,798 ($ 650,310) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Depreciation and amortization 838,590 819,877 Foreign currency translation (gain) loss 33,598 (24,108) (Increase) decrease in accounts and notes receivable (1,462,637) (430,084) (Increase) decrease in inventories (1,984,295) (1,385,238) (Increase) decrease in refundable income taxes 258,163 (397,969) (Increase) decrease in prepaid expenses and other current assets (21,668) (102,723) (Increase) decrease in other assets (32,903) (306,232) Increase (decrease) in accounts payable and accrued expenses 1,649,220 1,092,281 Increase (decrease) in income taxes payable 118,605 49,607 Increase (decrease) in unearned income -- (102,018) ----------- ----------- Net cash provided by (used in) operating activities 112,471 (1,436,917) Investing activities: Purchase of property, plant and equipment (319,522) (966,258) Repayment of loans by officers and directors 110,161 4,860 ----------- ----------- Net cash used in investing activities (209,361) (961,398) Financing activities: Net borrowings under line of credit 225,885 1,398,123 Proceeds from long-term borrowings 240,000 300,000 Principal payments on long-term borrowings (336,793) (311,094) Principal payments under capital lease obligations (85,099) (119,555) Proceeds from stock options exercised 1,459 -- Dividends paid -- (96,505) Purchase of treasury stock -- (58,682) ----------- ----------- Net cash provided by financing activities 45,452 1,112,287 Effect of exchange rate changes on cash and cash equivalents (214,886) 79,582 ----------- ----------- Decrease in cash and cash equivalents (266,324) (1,206,446) Cash and cash equivalents at beginning of period 1,531,700 2,816,804 ----------- ----------- Cash and cash equivalents at end of period $ 1,265,376 $ 1,610,358 =========== ===========
See notes to financial statements Reliv' International, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) September 30, 2000 Note 1-- Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine-month period ended September 30, 2000 are not necessarily indicative of the results that may be expected for the year ended December 31, 2000. The balance sheet at December 31, 1999 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by generally accepted accounting priciples for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Registrant Company and Subsidiaries' annual report on Form 10-K for the year ended December 31, 1999. Note 2-- Earnings per Share The following table sets forth the computation of basic and diluted earnings per share:
Three months ended September 30 Nine months ended September 30 2000 1999 2000 1999 -------------------------- ------------------------- Numerator: Numerator for basic and diluted earnings per share--net income/(loss) $ 375,789 ($ 350,193) $ 715,798 ($ 650,310) Denominator: Denominator per basic earnings per share--weighted average shares 9,553,000 9,649,000 9,553,000 9,649,000 Effect of dilutive securities: Employee stock options and other warrants 371,000 -- 371,000 -- ------------------------- ------------------------- Denominator for diluted earnings per share--adjusted weighted average shares 9,924,000 9,649,000 9,924,000 9,649,000 ========================== ========================== Basic earnings/(loss) per share $ 0.04 ($ 0.04) $ 0.07 ($ 0.07) ========================== ========================== Diluted earnings/(loss) per share $ 0.04 ($ 0.04) $ 0.07 ($ 0.07) ========================== ==========================
Note 3-- Comprehensive Income Total comprehensive income was $190,039 and $391,586 for the three months and nine months ended September 30, 2000, respectively. For the three and nine months ended September 30, 1999, comprehensive loss was $397,559 and $561,593, respectively. The Company's only component of other comprehensive income is the foreign currency translation adjustment. Reliv' International, Inc. and Subsidiaries Notes to Consolidated Financial Statements (Unaudited) September 30, 2000 Note 4-- Segment Information
Three months ended Three months ended September 30, 2000 September 30, 1999 ------------------ ------------------ Network Manufacturing Network Manufacturing marketing and packaging marketing and packaging ------------------------------- ------------------------------- Net sales to external customers 12,535,386 4,392,702 9,729,566 7,237,051 Intersegment net sales -- 1,952,676 -- 1,392,638 Segment profit/(loss) 875,401 270,381 361,553 (432,945)
Nine months ended Nine months ended September 30, 2000 September 30, 1999 ------------------ ------------------ Network Manufacturing Network Manufacturing marketing and packaging marketing and packaging ------------------------------- ------------------------------- Net sales to external customers 33,919,958 13,283,312 31,056,509 22,567,582 Intersegment net sales -- 5,318,630 -- 4,677,551 Segment profit/(loss) 2,593,127 261,941 1,320,182 (977,980) Segment assets 14,564,798 8,599,328 13,370,696 5,790,273
A reconciliation of combined operating profit for the reportable segments to consolidated income before income taxes is as follows:
Three months ended September 30 Nine months ended September 30 2000 1999 2000 1999 ------------------------------- ------------------------------- Total profit for reportable segments 1,145,782 (71,392) 2,855,068 342,202 Corporate expenses (415,646) (379,172) (1,217,222) (1,112,937) Non operating - net 51,474 40,871 25,771 146,951 Interest expense (149,999) (154,410) (475,919) (425,103) ---------------------------- ---------------------------- Income before income taxes 631,611 (564,103) 1,187,698 (1,048,887) ============================ ============================
Note 5-- Legal Proceedings In May 1998, the former sales/general manager of the Company's Canadian subsidiary filed lawsuit claiming unlawful termination and breach of contract. The individual was terminated by the Company in April 1998. In September 2000, this lawsuit was dismissed in favor of the Company. EX-27 2 0002.txt FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORM 10-Q FOR THE QUARTER ENDING SEPTEMBER 30, 2000 AND IS QUALIFIED IN ITS ENTIRETY BY REFRENCE TO SUCH FORM 10-Q. 0000768710 RELIV' INTERNATIONAL, INC. 9-mos DEC-31-2000 JAN-01-2000 SEP-30-2000 1,265,376 0 3,686,889 200 6,601,206 12,664,836 15,604,636 5,296,695 24,429,502 11,548,385 4,981,303 0 0 9,083,841 (1,814,821) 24,429,502 47,203,270 47,203,270 17,778,805 27,760,848 0 0 475,919 1,187,698 471,900 715,798 0 0 0 715,798 0.07 0.07
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