EX-99.1 2 v112159_ex99-1.htm
 
EXHIBIT 99
 
NEWS RELEASE

For more information, contact:

Steve Albright
or:
Fred Nielson
Chief Financial Officer
 
Investor Relations
(636) 733-1305
 
(636) 733-1314
 
FOR IMMEDIATE DISTRIBUTION

 
RELIV INTERNATIONAL REPORTS FIRST-QUARTER RESULTS
 
CHESTERFIELD, Mo., April 30, 2008 - Reliv International, Inc. (NASDAQ:RELV), a nutrition and direct selling company, today reported net sales for the first quarter of $28.3 million, compared to record net sales of $35.0 million in the first quarter last year.

Net income for the first quarter equaled $1.5 million or $0.10 per diluted share, compared to net income of $2.6 million or $0.16 per diluted share in the first quarter of 2007.

As of March 31, 2008, Reliv’s distributor base totaled approximately 69,700, up about 1,000 from March 31, 2007, when Reliv had approximately 68,700 distributors.

Net sales in the United States equaled $24.7 million in the first quarter compared to net sales of $31.9 million in the same quarter last year.

International net sales (sales outside of the U.S.) rose 17.2 percent to $3.6 million compared to $3.1 million in the same quarter last year. Net sales in the Philippines rose approximately 30 percent in the quarter, and net sales in our Malaysia/Singapore region nearly doubled.

“To increase sales, we are investing in special events featuring Reliv senior management and top distributors at meetings in Reliv’s larger U.S. markets. The events combine training and motivational activities,” said Robert L. Montgomery, president, chairman and chief executive officer.

“We believe the new training we instituted last year is gaining traction as we are seeing the number of new Master Affiliates, our entry level for business builders, increase compared to the past three quarters,” Montgomery said. “That is a promising sign that we’ll be watching closely in coming quarters,” he said.

“While investing in training and sales,” Montgomery said, “we also are looking for ways to cut unnecessary costs and reduce losses in international operations,” he said.


- MORE -

 
 
 

Reliv International, Inc. and Subsidiaries
ADD ONE


Selling, general and administrative (SG&A) costs in this year’s first quarter were down $1.1 million compared to the first quarter of 2007.  SG&A expenses as a percentage of sales, however, increased to 35.1 percent vs. 31.6 percent in the first quarter of 2007, as the result of the lower sales levels.

Reliv’s balance sheet remains solid. The company had $15.2 million in cash, cash equivalents and short-term investments as of March 31. Reliv has no long-term debt. Reliv reported cash from operations for the quarter of $3.2 million.

“As we work to improve both top-line and bottom-line growth, we are focused on the basics of our business,” Montgomery said. “We make nutrition simple. Our products can play a role in fostering wellness for our distributors and customers,” he said. “We also offer distributors an outstanding business opportunity along with strong training and incentive programs designed to increase sales and sponsorship of new people into Reliv.”

Reliv will host a conference call to discuss first-quarter earnings with investors at 1:00 p.m. Eastern Daylight Time on April 30. The dial-in number for investors is 888-679-8035. The participant passcode is 13122074. 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 45703790. 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/EN/Conference%20Calls%20Presentations.html. 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.

About Reliv
Reliv International, Inc., based in suburban St. Louis, Mo., is a developer, manufacturer and marketer of 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 70,000 independent distributors. Additional information about Reliv International, Inc. can be obtained on the Web at www.reliv.com.


-- FINANCIAL HIGHLIGHTS FOLLOW -
 
 
 
 

Reliv International, Inc. and Subsidiaries
          
ADD TWO
          
           
Consolidated Balance Sheets
          
   
March 31
 
December 31
 
 
 
2008
 
2007
 
 
 
(Unaudited)
 
    
Assets
          
Current Assets:
          
Cash and cash equivalents
  
$
13,666,929
  
$
11,694,699
  
Short-term investments
    
1,521,111
   
398,592
 
Accounts and notes receivable, less allowances of
              
$8,400 in 2008 and $8,300 in 2007
    
568,010
   
811,634
 
Accounts due from employees and distributors
    
231,532
   
204,705
 
Inventories
    
6,449,418
   
6,179,238
 
Other current assets
    
1,378,285
   
1,798,932
 
               
Total current assets
    
23,815,285
   
21,087,800
 
               
Other assets
    
3,308,717
   
3,319,786
 
Net property, plant and equipment
    
9,080,888
   
9,199,185
 
               
Total Assets
  
$
36,204,890
  
$
33,606,771
  
               
Liabilities and Stockholders' Equity
              
               
Total current liabilities
  
$
9,645,472
  
$
8,574,257
  
Other non-current liabilities
    
1,134,526
   
1,227,313
 
Stockholders' equity
    
25,424,892
   
23,805,201
 
               
Total Liabilities and Stockholders' Equity
  
$
36,204,890
  
$
33,606,771
  
               
               
               
Consolidated Statements of Operations
              
 
    
Three months ended March 31
 
 
    
2008
    
2007
  
 
    
(Unaudited)
    
(Unaudited)
 
Product sales
  
$
25,197,178
  
$
31,397,966
  
Handling & freight income
    
3,074,208
   
3,565,679
 
 
              
Net Sales
    
28,271,386
   
34,963,645
 
 
              
Costs and expenses:
              
Cost of products sold
    
4,834,526
   
6,061,392
 
Distributor royalties and commissions
    
11,122,372
   
13,928,563
 
Selling, general and administrative
    
9,931,799
   
11,029,850
 
 
              
Total Costs and Expenses
    
25,888,697
   
31,019,805
 
 
              
Income from operations
    
2,382,689
   
3,943,840
 
Other income (expense):
              
Interest income
    
134,873
   
212,602
 
Interest expense
    
(413
)
  
(126
)
Other income (expense)
    
(35,112
)
  
96,933
 
 
              
Income before income taxes
    
2,482,037
   
4,253,249
 
Provision for income taxes
    
956,000
   
1,633,000
 
 
              
Net Income
  
$
1,526,037
  
$
2,620,249
  
 
              
 
              
Earnings per common share - Basic
  
$
0.10
  
$
0.16
  
Weighted average shares
    
15,874,000
   
16,431,000
 
 
              
Earnings per common share - Diluted
  
$
0.10
  
$
0.16
  
Weighted average shares
    
15,874,000
   
16,580,000
 
 
              
Cash dividends declared per common share
  
$
-
  
$
-
  
 
              
- MORE -
 
 
 
 
 

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.
                           
Net sales by Market
                          
(in thousands)
  
Three months ended March 31,
 
Change from
 
 
 
2008
 
2007
 
prior year
 
 
 
Amount
 
% of Net
Sales
 
Amount
 
% of Net
Sales
 
Amount
 
%
  
                           
United States
    
24,685
    
87.3
%
  
31,904
    
91.2
%
  
(7,219
)
  
-22.6
%
Australia/New Zealand
    
747
    
2.7
%
  
653
    
1.9
%
  
94
   
14.4
%
Canada
    
461
    
1.6
%
  
441
    
1.3
%
  
20
   
4.5
%
Mexico
    
398
    
1.4
%
  
410
    
1.2
%
  
(12
)
  
-2.9
%
United Kingdom/Ireland
    
287
    
1.0
%
  
287
    
0.8
%
  
0
   
0.0
%
Philippines
    
814
    
2.9
%
  
628
    
1.8
%
  
186
   
29.6
%
Malaysia/Singapore
    
642
    
2.3
%
  
330
    
0.9
%
  
312
   
94.5
%
Germany
    
237
    
0.8
%
  
311
    
0.9
%
  
(74
)
  
-23.8
%
                                       
Consolidated Total
    
28,271
    
100.0
%
  
34,964
    
100.0
%
  
(6,693
)
  
-19.1
%
                                       
 
    
The following table sets forth, as of March 31, 2008 and 2007, 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
                                       
 
    
As of 3/31/2008
 
 
As of 3/31/2007
 
 
Change in %
 
 
 
 
Active Distributors
 
 
Master Affiliates and Above
 
 
Active Distributors
 
 
Master Affiliates and Above
 
 
Active Distributors
 
 
Master Affiliates and Above
  
                                       
United States
    
55,970
   
9,400
   
56,320
   
12,660
   
-0.6
%
  
-25.8
%
Australia/New Zealand
    
2,520
   
210
   
2,520
   
270
   
0.0
%
  
-22.2
%
Canada
    
1,180
   
130
   
1,170
   
150
   
0.9
%
  
-13.3
%
Mexico
    
1,490
   
190
   
1,170
   
170
   
27.4
%
  
11.8
%
United Kingdom/Ireland
    
740
   
80
   
940
   
130
   
-21.3
%
  
-38.5
%
Philippines
    
4,730
   
380
   
3,750
   
270
   
26.1
%
  
40.7
%
Malaysia/Singapore
    
2,540
   
340
   
2,310
   
260
   
10.0
%
  
30.8
%
Germany
    
540
   
90
   
510
   
150
   
5.9
%
  
-40.0
%
                                       
Consolidated Total
    
69,710
   
10,820
   
68,690
   
14,060
   
1.5
%
  
-23.0
%