EX-99.1 2 v141391_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 FOURTH-QUARTER RESULTS
 
Reliv reports increase in operating income for the quarter
 
CHESTERFIELD, Mo., Feb. 25, 2009 – Reliv International, Inc. (NASDAQ:RELV), a nutrition and direct selling company, today reported its fourth-quarter and full-year 2008 earnings.

Fourth-quarter results

Net sales for the quarter were $22.1 million compared to net sales of $24.6 million in the fourth quarter of 2007.  Net income for the fourth quarter of 2008 was $250,000 or $0.02 per diluted share, compared to net income of $697,000 or $0.04 per diluted share in the 2007 fourth quarter.

During the fourth-quarter of 2008, U.S. net sales totaled $19.4 million, down 8.0 percent from the 2007 fourth quarter.  International sales, or sales outside of the United States, dropped to $2.7 million in the quarter compared to $3.5 million in the prior year quarter.  Foreign currency exchange fluctuations accounted for approximately half of the reported sales decline.

Income from operations in the fourth quarter of 2008 rose to $1.3 million compared to $1.1 million the 2007 fourth quarter.

Net income and fully diluted earnings per share for the fourth quarter, excluding non-cash investment losses on a private equity fund and other investments, was $850,000, or $0.06 per share.  During the quarter, Reliv incurred investment losses totaling $336,000, for which the company does not expect to receive an income tax benefit as it does not anticipate having sufficient future capital gains to offset these current year capital losses.  Excluding these charges, Reliv’s net income showed an improvement over the fourth quarter of 2007.

Full-year results

Net sales for the full year of 2008 equaled $98.2 million, down 11.6 percent from 2007 net sales.  Sales outside of the U.S. rose 0.8 percent to $12.8 million.  U.S. sales for 2008, however, declined 13.2 percent to $85.4 million.

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Net income for 2008 was $2.9 million or $0.19 per diluted share, down from $5.0 million or $0.31 per diluted share in 2007.  The 2008 results reflect one-time charges of $0.05 per diluted share from the investment losses and related tax consequences which occurred primarily in the fourth quarter. Excluding the one-time charges, diluted EPS would have been $0.24.

Net cash generated from operating activities was $3.7 million for 2008, down from $4.8 million for 2007, and we had cash and cash-equivalents of $4.5 million as of Dec. 31, 2008.

As of Dec. 31, 2008, Reliv had approximately 67,340 distributors, down 3.8 percent from Dec. 31, 2007.

Robert L. Montgomery, president, chairman and chief executive officer of Reliv, said, “We are pleased by the increase in operating income in the fourth quarter, which we achieved by reducing and controlling costs throughout the company.”

“During the quarter we also had a successful introduction of GlucAffect, a new product that supports blood-sugar management and weight loss,” Montgomery said.  “Customers are reporting solid results from the product, and distributors are excited about it as well,” he said.

“U.S. sign-ups in January 2009 were the best in nearly two years, and global sponsoring was also very strong,” Montgomery said.  “A successful U.S. National Conference in Fort Worth, Texas, earlier this month generated great excitement among our distributor force.  The combination of sponsorship and excitement makes me optimistic as I look forward in 2009,” he said.

“Our major focus in 2009 will be increasing sponsorship levels which should lead to top-line growth.  Our business opportunity is a great match for many people who are looking for additional income during this recession.  And Reliv makes nutrition simple by providing optimal nutrition with two shakes a day,” Montgomery added.

Reliv will host a conference call to discuss fourth-quarter and year-end earnings with investors at 1:00 p.m. Eastern Time on February 25th.  The dial-in number for investors is 888-680-0860. The participant passcode is 66331036.  To register, please call in 15 minutes prior to start of the call.  A replay of this call will be available beginning today at 3 p.m. Eastern for one week by telephone calling 888-286-8010 and using the passcode 84174618.  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 Chesterfield, Mo., is a developer, manufacturer and marketer of a proprietary line of nutritional supplements.  Reliv supplements address essential daily nutrition, weight loss and targeted solutions such as energy and performance enhancement, digestive health, women’s health and anti-aging.  Reliv sells its products through an international network marketing system of 67,340 independent distributors.  Additional information about Reliv International, Inc. can be obtained on the Web at www.reliv.com.


--FINANCIAL HIGHLIGHTS FOLLOW –
 
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Condensed Consolidated Balance Sheets

   
December 31,
   
December 31,
 
   
2008
   
2007
 
   
(Unaudited)
   
(Audited)
 
             
Assets
           
Current assets:
           
Cash and cash equivalents
  $ 4,460,637     $ 11,694,699  
Short-term investments
    -       398,592  
Accounts and notes receivable,  less allowances of
               
$10,200 in 2008 and $8,300 in 2007
    494,689       811,634  
Accounts due from employees and distributors
    241,532       204,705  
Inventories
    6,221,954       6,179,238  
Other current assets
    2,176,802       1,798,932  
Total current assets
    13,595,614       21,087,800  
                 
Other assets
    1,220,546       2,999,903  
Accounts due from employees and distributors
    164,462       319,883  
                 
Net property, plant and equipment
    8,912,157       9,199,185  
                 
Total assets
  $ 23,892,779     $ 33,606,771  
                 
                 
                 
Liabilities and stockholders’ equity
               
                 
Total current liabilities
  $ 7,350,199     $ 8,574,257  
Other non-current liabilities
    434,990       1,227,313  
                 
Total stockholders’ equity
    16,107,590       23,805,201  
                 
Total liabilities and stockholders’ equity
  $ 23,892,779     $ 33,606,771  
 
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Consolidated Statements of Operations
 
   
Three months ended December 31,
   
Year ended December 31,
 
   
2008
   
2007
   
2008
   
2007
 
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
   
(Audited)
 
                         
Product sales
  $ 19,629,188     $ 22,014,462     $ 87,348,915     $ 99,465,246  
Handling & freight income
    2,473,727       2,633,702       10,845,903       11,592,258  
Net sales
    22,102,915       24,648,164       98,194,818       111,057,504  
                                 
Costs and expenses:
                               
Cost of products sold
    4,026,823       4,319,638       17,437,133       19,100,527  
Distributor royalties and commissions
    8,342,155       9,840,619       38,207,889       44,298,744  
Selling, general and administrative
    8,408,865       9,393,401       36,881,041       40,363,322  
Total costs and expenses
    20,777,843       23,553,658       92,526,063       103,762,593  
                                 
Income from operations
    1,325,072       1,094,506       5,668,755       7,294,911  
                                 
Other income (expense):
                               
Interest income
    28,164       135,542       328,057       634,446  
Interest expense
    (5,922 )     (641 )     (37,327 )     (1,373 )
Gain (loss) on limited partnership investment
    (335,520 )     (14,308 )     (595,887 )     52,162  
Other income (expense)
    (875 )     59,899       30,353       261,969  
Income before income taxes
    1,010,919       1,274,998       5,393,951       8,242,115  
Provision for income taxes
    761,000       578,000       2,513,000       3,201,000  
                                 
Net income
  $ 249,919     $ 696,998     $ 2,880,951     $ 5,041,115  
                                 
Earnings per common share - Basic
  $ 0.02     $ 0.04     $ 0.19     $ 0.31  
Weighted average shares
    14,367,000       15,882,000       15,213,000       16,094,000  
                                 
Earnings per common share - Diluted
  $ 0.02     $ 0.04     $ 0.19     $ 0.31  
Weighted average shares
    14,369,000       15,977,000       15,223,000       16,303,000  
                                 
Cash dividends declared per common share
  $ 0.05     $ 0.05     $ 0.10     $ 0.10  
 
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Net sales by Market
(in thousands)
   
   
Three months ended December 31,
   
Change From 
 
   
2008
   
2007
   
Prior Year
 
   
Amount
   
% of sales
   
Amount
   
% of sales
   
Amount
   
%
 
                                     
United States
    19,448       88.0 %     21,132       85.7 %     (1,684 )     -8.0 %
Australia/New Zealand
    585       2.6 %     854       3.5 %     (269 )     -31.5 %
Canada
    359       1.6 %     437       1.8 %     (78 )     -17.8 %
Mexico
    274       1.3 %     372       1.5 %     (98 )     -26.3 %
United Kingdom/Ireland
    232       1.0 %     281       1.1 %     (49 )     -17.4 %
Philippines
    618       2.8 %     834       3.4 %     (216 )     -25.9 %
Malaysia/Singapore
    518       2.4 %     592       2.4 %     (74 )     -12.5 %
Germany
    69       0.3 %     146       0.6 %     (77 )     -52.7 %
                                                 
Consolidated total
    22,103       100.0 %     24,648       100.0 %     (2,545 )     -10.3 %
  
Net sales by Market
(in thousands)
  
   
Year ended December 31,
   
Change From 
 
   
2008
   
2007
   
Prior Year
 
   
Amount
   
% of sales
   
Amount
   
% of sales
   
Amount
   
%
 
                                     
United States
    85,382       87.0 %     98,348       88.5 %     (12,966 )     -13.2 %
Australia/New Zealand
    2,681       2.7 %     2,944       2.7 %     (263 )     -8.9 %
Canada
    1,660       1.7 %     1,634       1.5 %     26       1.6 %
Mexico
    1,543       1.6 %     1,526       1.4 %     17       1.1 %
United Kingdom/Ireland
    1,023       1.0 %     1,062       1.0 %     (39 )     -3.7 %
Philippines
    2,709       2.8 %     2,942       2.6 %     (233 )     -7.9 %
Malaysia/Singapore
    2,692       2.7 %     1,765       1.5 %     927       52.5 %
Germany
    505       0.5 %     837       0.8 %     (332 )     -39.7 %
                                                 
Consolidated total
    98,195       100.0 %     111,058       100.0 %     (12,863 )     -11.6 %
  
The following table sets forth, as of December 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 12/31/2008
   
As of 12/31/2007
   
Change in %
 
   
Active Distributors
   
Master Affiliates and Above
   
Active Distributors
   
Master Affiliates and Above
   
Active Distributors
   
Master Affiliates and Above
 
                                     
United States
    53,450       10,910       56,920       13,890       -6.1 %     -21.5 %
Australia/New Zealand
    2,390       240       2,450       280       -2.4 %     -14.3 %
Canada
    1,260       170       1,140       180       10.5 %     -5.6 %
Mexico
    1,480       240       1,430       220       3.5 %     9.1 %
United Kingdom/Ireland
    760       120       780       120       -2.6 %     0.0 %
Philippines
    4,470       450       4,530       400       -1.3 %     12.5 %
Malaysia/Singapore
    3,190       590       2,170       350       47.0 %     68.6 %
Germany
    340       80       550       150       -38.2 %     -46.7 %
                                                 
Consolidated total
    67,340       12,800       69,970       15,590       -3.8 %     -17.9 %
 
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