EX-99.1 2 v073351_ex99-1.htm
EXHIBIT 99
 
NEWS RELEASE

FOR FURTHER INFORMATION, CONTACT:
 
Steven D. Albright
Fred A. Nielson
Chief Financial Officer
Investor Relations
(636) 733-1305
(636) 733-1314


RELIV INTERNATIONAL, INC. REPORTS DOUBLE-DIGIT INCREASE
IN NET SALES FOR FIRST QUARTER OF 2007

Introduction of Slimplicity Weight Loss System Sparks Growth

FOR IMMEDIATE RELEASE

CHESTERFIELD, Mo., May 2, 2007 - Reliv International, Inc. (NASDAQ:RELV), a developer, manufacturer and marketer of proprietary nutritional supplements, today reported record net sales and earnings for the first quarter of 2007. Net income of $2.6 million represented a 6.9 percent increase over net income in the first quarter of 2006. Diluted earnings per share rose from $0.15 in the year-ago quarter to $0.16 in the first quarter this year.
 
Net sales increased 12.1 percent from $31.2 million in the first quarter last year to $35.0 million in this year’s first quarter. In the United States, first-quarter sales rose 11.8 percent to $31.9 million, and non-U.S. sales equaled $3.1 million, an increase of 14.8 percent over the first quarter of 2006.
 
“The driving force behind our sales increase in the United States was the introduction of the Slimplicity Weight Loss System in February,” said Robert L. Montgomery, chairman of the board, president and chief executive officer of Reliv. “Slimplicity was the key to our double-digit sales growth as well as to a strong increase in sponsorship of new distributors.”
 
As of March 31, Reliv’s worldwide distributor base was 68,690, which represents a 6.2 percent increase of total distributors compared with the end of the first quarter of 2006. The United States reported its best quarter for distributor sign-ups in more than 10 years, gaining 40 percent vs. the first quarter of 2006.
 
“U.S. distributors continue to be excited by the potential for Slimplicity, and we believe the worldwide market for Slimplicity has greater potential than the U.S. market,” Montgomery said. Reliv is in the process of obtaining approval for the sale of Slimplicity in non-U.S. markets.
 
During the first quarter, in addition to the launch of Slimplicity, Reliv introduced its redesigned Web site, www.reliv.com, to positive public response. The site has an improved look and it’s easier to navigate than the previous site.
 
The company also debuted a new basic training program for its distributor force in the first quarter. “We are confident that the new training will help our many new distributors get off to a great start,” Montgomery said.
 
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Reliv’s proprietary nutritional supplements, its outstanding business opportunity and a proven system designed to help distributors build their businesses also were important factors in Reliv’s first-quarter performance.
 
Reliv will host a conference call to discuss first quarter 2007 earnings with investors at 1:00 p.m. Eastern Time on May 2, 2007. The dial-in number for investors is 866-578-5771. The participant passcode is 86923338. To register, please call in 15 minutes prior to start of the call. A replay of this call will be available for one week by telephone from 3:00 p.m. Eastern by calling 888-286-8010 and using the passcode 28215664. A live web cast of this call will be available through the Investor Relations section of Reliv's Web site, http://www.reliv.com/us/investor. An online archive of the broadcast will be available on Reliv's Web site in the Investor Relations section 24 hours after the call concludes.
 
Reliv International, Inc., based in suburban St. Louis, Mo., develops, manufactures and markets a proprietary line of nutritional supplements addressing basic nutrition, specific wellness needs, weight management and sports nutrition. Reliv sells its products through an international network marketing system of approximately 68,000 independent distributors. Additional information about Reliv International, Inc. can be obtained on the Web at http://www.reliv.com.
 
Statements made in this release that are not historical facts are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements may include, but are not limited to, statements containing words such as "may," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue," or similar expressions.
 
Factors that could cause actual results to differ are identified in the public filings made by Reliv' with the Securities and Exchange Commission. More information on factors that could affect Reliv's business and financial results are included in its public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which are available on Reliv's web site, http://www.reliv.com.


-- FINANCIAL HIGHLIGHTS FOLLOW -


2

 
Reliv International, Inc. and Subsidiaries
ADD TWO
 
Consolidated Balance Sheets

   
March 31
 
December 31
 
 
 
2007
 
2006
 
 
 
(Unaudited)
 
 
 
Assets
         
Current Assets:
         
Cash and cash equivalents
 
$
10,228,771
 
$
9,332,810
 
Short-term investments
   
8,864,000
   
7,864,000
 
Accounts and notes receivable, less allowances of
             
$7,000 in 2007 and $6,200 in 2006
   
988,379
   
669,379
 
Accounts due from employees and distributors
   
216,319
   
223,246
 
Inventories
   
5,134,092
   
4,778,221
 
Other current assets
   
2,090,939
   
1,977,522
 
               
Total current assets
   
27,522,500
   
24,845,178
 
Other assets
   
3,291,863
   
3,002,496
 
Net property, plant and equipment
   
9,292,998
   
9,434,546
 
               
Total Assets
 
$
40,107,361
 
$
37,282,220
 
               
Liabilities and Stockholders' Equity
             
               
Total current liabilities
 
$
11,914,474
 
$
8,615,256
 
Total non-current liabilities
   
1,117,265
   
933,113
 
Stockholders' equity
   
27,075,622
   
27,733,851
 
               
Total Liabilities and Stockholders' Equity
 
$
40,107,361
 
$
37,282,220
 
               
Consolidated Statements of Operations
             
   
Three months ended March 31
 
     
2007
 
 
2006
 
   
(Unaudited)
   
(Unaudited)
 
Product sales
 
$
31,397,966
 
$
28,041,335
 
Handling & freight income
   
3,565,679
   
3,154,017
 
 
             
Net Sales
   
34,963,645
   
31,195,352
 
 
             
Costs and expenses:
             
Cost of products sold
   
6,061,392
   
5,082,181
 
Distributor royalties and commissions
   
13,928,563
   
12,627,032
 
Selling, general and administrative
   
11,029,850
   
9,466,741
 
 
             
Total Costs and Expenses
   
31,019,805
   
27,175,954
 
               
Income from operations
   
3,943,840
   
4,019,398
 
Other income (expense):
             
Interest income
   
212,602
   
84,676
 
Interest expense
   
(126
)
 
(34,441
)
Other income\expense
   
96,933
   
60,636
 
 
             
Income before income taxes
   
4,253,249
   
4,130,269
 
Provision for income taxes
   
1,633,000
   
1,680,000
 
 
             
Net Income
   
2,620,249
   
2,450,269
 
               
               
Earnings per common share - Basic
 
$
0.16
 
$
0.16
 
Weighted average shares
   
16,431,000
   
15,569,000
 
 
             
Earnings per common share - Diluted
 
$
0.16
 
$
0.15
 
Weighted average shares
   
16,580,000
   
15,981,000
 
 
             
Cash dividends declared per common share
 
$
0
 
$
0
 
 
3

Reliv International, Inc. and Subsidiaries
ADD THREE
 
 
The following table summarizes net sales by geographic market ranked by the date we
  began operations in each market for the three months ended March 31, 2007 and 2006.
         
         
Net sales by Market
Three months ended March 31,
     
(in thousands)
               
 
2007
 
2006
 
Change from prior year
 
Amount
% of Net Sales
 
Amount
% of Net Sales
 
Amount
%
                 
United States
31,904
91.2%
 
28,530
91.5%
 
3,374
11.8%
Australia/New Zealand
653
1.9%
 
579
1.9%
 
74
12.8%
Canada
441
1.3%
 
409
1.3%
 
32
7.8%
Mexico
410
1.2%
 
329
1.0%
 
81
24.6%
United Kingdom/Ireland
287
0.8%
 
273
0.9%
 
14
5.1%
Philippines
628
1.8%
 
493
1.5%
 
135
27.4%
Malaysia/Singapore
330
0.9%
 
458
1.5%
 
(128)
-27.9%
Germany
311
0.9%
 
124
0.4%
 
187
150.8%
 
 
 
 
 
 
 
 
 
Consolidated Total
34,964
100.0%
 
31,195
100.0%
 
3,769
12.1%
                 
The following table sets forth, as of March 31, 2007 and 2006, the number of our active
 
distributors and Master Affiliates and above. The total number of active distributors includes Master
 
Affiliates and above. We define an active distributor as one that enrolls as a distributor or renews its
 
distributorship during the prior twelve months. Master Affiliates and above are distributors that have
 
attained the highest level of discount and are eligible for royalties generated by Master Affiliates and
 
above in their downline organization. Growth in the number of active distributors and Master Affiliates
 
and above is a key factor in continuing the growth of our business.
                 
Active Distributors and Master Affiliates and above by Market
           
                 
 
March 31, 2007
 
March 31, 2006
 
% Change
 
Active Distributors
Master
Affiliates
and Above
 
Active Distributors
Master
Affiliates
and Above
 
Active Distributors
Master
Affiliates
and Above
                 
United States
56,320
12,660
 
52,360
12,930
 
7.6%
-2.1%
Australia/New Zealand
2,520
270
 
2,370
180
 
6.3%
50.0%
Canada
1,170
150
 
1,160
140
 
0.9%
7.1%
Mexico
1,170
170
 
1,230
200
 
-4.9%
-15.0%
United Kingdom/Ireland
940
130
 
800
110
 
17.5%
18.2%
Philippines
3,750
270
 
3,500
270
 
7.1%
0.0%
Malaysia/Singapore
2,310
260
 
3,100
380
 
-25.5%
-31.6%
Germany
510
150
 
180
70
 
183.3%
114.3%
 
 
 
 
 
 
 
 
 
Consolidated total
68,690
14,060
 
64,700
14,280
 
6.2%
-1.5%
                 
                 
                 
       
** 30 **
       
                 
 
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