EX-99 2 v182608_ex99.htm Unassociated Document
NEWS RELEASE
EXHIBIT 99
 

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Reliv International Reports First-Quarter 2010 Results

CHESTERFIELD, Mo., April 29, 2010 – Reliv International, Inc. (NASDAQ:RELV), a nutrition and direct selling company, today reported that sales and earnings in the first-quarter of 2010 were below last year’s first-quarter results, but sales outside of the United States rose during the period.

Net sales were $22.7 million, a decline of 4.5 percent from the first quarter of 2009.  U.S. sales declined 9.0 percent.  International sales rose 36.1 percent, with approximately half of the increase due to currency fluctuations.

Net income was $746,000 for the quarter, or $0.06 per diluted share, compared to $1.0 million in net income, or $0.07 per diluted share, in the same quarter last year.

Robert L. Montgomery, chairman, president and chief executive officer, said, “International sales were a bright spot this quarter, increasing approximately 19 percent excluding the effect of currency fluctuations.  Our U.S. distributors and customers, however, are still feeling the effects of the recession, as their spending remains below last year’s levels.  The rate of the sales decline, however, has moderated compared to previous years’ declines.”

Montgomery described several tactics designed to increase sales.  “We are currently conducting the Reliv ‘Freedom Tour’ in which senior executives will visit our 35 top U.S. markets.  We hope to spur new-distributor enrollments and encourage existing distributors to expand their businesses more quickly,” Montgomery said.

“In the first quarter, we launched the Team Reliv concept in which distributors will sponsor running events in their hometowns,” he said.  “The events give participants an opportunity to sample Innergize, our isotonic sports product, and give our distributors a means of generating leads.  This is part of a strategy to attract younger distributors to Reliv and to increase our brand awareness by emphasizing the role of Reliv supplements in a healthy, active lifestyle,” Montgomery said.

Reliv also introduced three new Relivables products during the first quarter, including Relivables Soy Nuts, Relivables snack bars and “r” body lotion.

One factor in the overall sales decline has been a reduction in the size of the average order.  “Over the last two years, the number of orders has remained relatively steady, which indicates a solid customer base,” Montgomery said.  “We believe the recession, therefore, is the main culprit leading to lower average order sizes.”



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Reliv International, Inc. and Subsidiaries
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He added, “Our total distributor count declined from last year, mainly due to a slow January and February this year.  In the first quarter of last year, enrollments were very strong due in part to a special promotion that wasn’t in place in the first quarter of 2010.  March 2010 enrollments, however, were back to our historical levels,” he said.

Reliv generated net cash from operating activities of $1.6 million in the first quarter, less than the $2.8 million in net cash generated in the first quarter of 2009.  As of March 31, 2010, Reliv had cash and cash equivalents of $7.2 million, up slightly from $7.0 million on hand as of the same date in 2009.

He added, “Reliv was founded on the premise that we make nutrition simple.  We offer outstanding products that are based on the latest scientific research.  In addition, we provide an affordable business opportunity for individuals who want to start a home-based business.”


Reliv will host a conference call to discuss first-quarter earnings with investors. The conference call will be on April 29, 2010 at 1:00 p.m. Eastern. The dial-in number is 866-730-5767. The participant passcode is 70492527. A replay will be available for one week at 888-286-8010 using the passcode 61922212.
A live webcast is available on the Investor Relations section of Reliv’s Web site at:
http://www.reliv.com/US/EN/Conference%20Calls% 20Presentations.html
An online archive of the webcast will be 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 approximately 66,000 independent distributors.  Additional information about Reliv International, Inc. can be obtained on the Web at www.reliv.com.


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Reliv International, Inc. and Subsidiaries
   
ADD TWO
   
     
Consolidated Balance Sheets
   
 
   
March 31
   
December 31
 
   
2010
   
2009
 
   
(Unaudited)
       
Assets
           
Current Assets:
           
Cash and cash equivalents
  $ 7,150,487     $ 5,760,913  
Accounts and notes receivable, less allowances of
               
$62,000 in 2010 and $59,700 in 2009
    322,815       326,022  
Accounts due from employees and distributors
    74,519       78,500  
Inventories
    5,199,175       5,084,404  
Other current assets
    1,498,316       979,333  
                 
Total current assets
    14,245,312       12,229,172  
                 
Other assets
    3,815,186       3,560,576  
Net property, plant and equipment
    8,212,847       8,364,685  
                 
Total Assets
  $ 26,273,345     $ 24,154,433  
                 
Liabilities and Stockholders' Equity
               
                 
Total current liabilities
  $ 8,172,793     $ 6,761,481  
Long-term debt, less current maturities
    4,585,874       4,719,542  
Other non-current liabilities
    406,120       406,544  
Stockholders' equity
    13,108,558       12,266,866  
                 
Total Liabilities and Stockholders' Equity
  $ 26,273,345     $ 24,154,433  
 
Consolidated Statements of Operations
               
   
Three months ended March 31
 
   
2010
   
2009
 
   
(Unaudited)
   
(Unaudited)
 
Product sales
  $ 20,257,680     $ 21,166,181  
Handling & freight income
    2,469,571       2,624,809  
                 
Net Sales
    22,727,251       23,790,990  
                 
Costs and expenses:
               
Cost of products sold
    4,556,382       4,575,751  
Distributor royalties and commissions
    8,480,076       8,937,667  
Selling, general and administrative
    8,543,450       8,617,873  
                 
Total Costs and Expenses
    21,579,908       22,131,291  
                 
Income from operations
    1,147,343       1,659,699  
Other income (expense):
               
Interest income
    9,526       20,715  
Interest expense
    (51,676 )     (9,550 )
Other income
    57,283       12,055  
                 
Income before income taxes
    1,162,476       1,682,919  
Provision for income taxes
    416,000       671,000  
                 
Net Income
  $ 746,476     $ 1,011,919  
                 
                 
Earnings per common share - Basic
  $ 0.06     $ 0.07  
Weighted average shares
    12,380,000       14,299,000  
                 
Earnings per common share - Diluted
  $ 0.06     $ 0.07  
Weighted average shares
    12,380,000       14,299,000  
                 
Cash dividends declared per common share
  $ -     $ -  
 
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Reliv International, Inc. and Subsidiaries
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Net sales by Market
                                   
(in thousands)
 
Three months ended March 31,
   
Change from
 
   
2010
   
2009
   
prior year
 
   
Amount
   
% of Net Sales
   
Amount
   
% of Net Sales
   
Amount
   
%
 
                                     
United States
    19,448       85.6 %     21,381       89.9 %     (1,933 )     -9.0 %
Australia/New Zealand
    727       3.2 %     516       2.1 %     211       40.9 %
Canada
    587       2.6 %     336       1.4 %     251       74.7 %
Mexico
    394       1.7 %     281       1.2 %     113       40.2 %
Europe
    420       1.8 %     308       1.3 %     112       36.4 %
Asia
    1,151       5.1 %     969       4.1 %     182       18.8 %
                                                 
Consolidated Total
    22,727       100.0 %     23,791       100.0 %     (1,064 )     -4.5 %
                                                 
 
 
      The following table sets forth, as of March 31, 2010 and 2009, 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 3/31/2010
   
As of 3/31/2009
   
Change in %
 
   
Active Distributors
   
Master Affiliates and Above
   
Active Distributors
   
Master Affiliates and Above
   
Active Distributors
   
Master Affiliates and Above
 
                                     
United States
    52,010       6,070       54,440       7,490       -4.5 %     -19.0 %
Australia/New Zealand
    2,530       190       2,440       180       3.7 %     5.6 %
Canada
    1,310       140       1,250       110       4.8 %     27.3 %
Mexico
    2,290       220       1,700       200       34.7 %     10.0 %
Europe
    1,350       180       1,080       140       25.0 %     28.6 %
Asia
    6,540       590       7,770       880       -15.8 %     -33.0 %
                                                 
Consolidated Total
    66,030       7,390       68,680       9,000       -3.9 %     -17.9 %

 
 
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