x |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended June 30, 2011
|
|
OR
|
|
o |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
371172197
|
(State or other jurisdiction of
|
(I.R.S. Employer
|
incorporation or organization)
|
Identification Number)
|
136 Chesterfield Industrial Boulevard
|
|
Chesterfield, Missouri
|
63005
|
(Address of principal executive offices)
|
(Zip Code)
|
PART I – FINANCIAL INFORMATION
|
|||||
Item No. 1
|
Financial Statements (Unaudited)
|
1 | |||
Item No. 2
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
7 | |||
Item No. 4
|
Controls and Procedures
|
12 | |||
PART II – OTHER INFORMATION
|
|||||
Item No. 2
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
13 | |||
Item No. 6
|
Exhibits
|
13 |
PART I -- FINANCIAL INFORMATION
|
Item No. 1 - Financial Statements
|
Reliv International, Inc. and Subsidiaries
|
Consolidated Balance Sheets
|
June 30
|
December 31
|
|||||||
2011
|
2010
|
|||||||
(unaudited)
|
||||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 7,015,049 | $ | 6,331,038 | ||||
Accounts receivable, less allowances of
|
||||||||
$68,600 in 2011 and $67,100 in 2010
|
293,379 | 291,405 | ||||||
Accounts due from employees and distributors
|
39,052 | 55,854 | ||||||
Inventories
|
||||||||
Finished goods
|
3,307,705 | 3,851,178 | ||||||
Raw materials
|
1,506,354 | 1,277,838 | ||||||
Sales aids and promotional materials
|
567,783 | 521,774 | ||||||
Total inventories
|
5,381,842 | 5,650,790 | ||||||
Refundable income taxes
|
194,786 | 62,324 | ||||||
Prepaid expenses and other current assets
|
891,156 | 519,915 | ||||||
Deferred income taxes
|
339,000 | 334,000 | ||||||
Total current assets
|
14,154,264 | 13,245,326 | ||||||
Other assets
|
324,662 | 364,626 | ||||||
Cash surrender value of life insurance
|
1,755,600 | 1,503,350 | ||||||
Intangible assets, net
|
1,683,232 | 1,785,987 | ||||||
Property, plant and equipment:
|
||||||||
Land and land improvements
|
880,643 | 868,870 | ||||||
Building
|
9,940,460 | 9,928,950 | ||||||
Machinery & equipment
|
3,729,154 | 3,698,537 | ||||||
Office equipment
|
1,550,854 | 1,503,929 | ||||||
Computer equipment & software
|
3,064,254 | 2,980,370 | ||||||
19,165,365 | 18,980,656 | |||||||
Less: Accumulated depreciation
|
11,515,731 | 11,036,244 | ||||||
Net property, plant and equipment
|
7,649,634 | 7,944,412 | ||||||
Total assets
|
$ | 25,567,392 | $ | 24,843,701 |
Reliv International, Inc. and Subsidiaries
|
Consolidated Balance Sheets
|
June 30
|
December 31
|
|||||||
2011
|
2010
|
|||||||
(unaudited)
|
||||||||
Liabilities and stockholders' equity
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued expenses:
|
||||||||
Trade accounts payable and other accrued expenses
|
$ | 3,487,050 | $ | 2,437,965 | ||||
Distributors' commissions payable
|
2,323,912 | 2,411,016 | ||||||
Sales taxes payable
|
393,763 | 445,653 | ||||||
Payroll and payroll taxes payable
|
387,894 | 525,657 | ||||||
Total accounts payable and accrued expenses
|
6,592,619 | 5,820,291 | ||||||
Current maturities of long-term debt
|
573,756 | 566,873 | ||||||
Total current liabilities
|
7,166,375 | 6,387,164 | ||||||
Noncurrent liabilities:
|
||||||||
Long-term debt, less current maturities
|
3,863,543 | 4,150,770 | ||||||
Other noncurrent liabilities
|
305,043 | 375,244 | ||||||
Total noncurrent liabilities
|
4,168,586 | 4,526,014 | ||||||
Stockholders' equity:
|
||||||||
Preferred stock, par value $.001 per share; 3,000,000
|
||||||||
shares authorized; -0- shares issued and outstanding
|
||||||||
in 2011 and 2010
|
- | - | ||||||
Common stock, par value $.001 per share; 30,000,000
|
||||||||
authorized; 14,425,185 shares issued and 12,423,674
|
||||||||
shares outstanding as of 6/30/2011; 14,425,185 shares
|
||||||||
issued and 12,450,808 shares outstanding as of 12/31/2010
|
14,425 | 14,425 | ||||||
Additional paid-in capital
|
30,392,347 | 30,300,463 | ||||||
Accumulated deficit
|
(9,786,098 | ) | (10,091,167 | ) | ||||
Accumulated other comprehensive loss:
|
||||||||
Foreign currency translation adjustment
|
(488,151 | ) | (448,024 | ) | ||||
Treasury stock
|
(5,900,092 | ) | (5,845,174 | ) | ||||
Total stockholders' equity
|
14,232,431 | 13,930,523 | ||||||
Total liabilities and stockholders' equity
|
$ | 25,567,392 | $ | 24,843,701 |
Reliv International, Inc. and Subsidiaries
|
Consolidated Statements of Income
|
(unaudited)
|
Three months ended
June 30
|
Six months ended
June 30
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Product sales
|
$ | 15,984,382 | $ | 16,689,178 | $ | 35,311,325 | $ | 36,946,859 | ||||||||
Handling & freight income
|
2,013,540 | 2,131,453 | 4,373,451 | 4,601,024 | ||||||||||||
Net sales
|
17,997,922 | 18,820,631 | 39,684,776 | 41,547,883 | ||||||||||||
Costs and expenses:
|
||||||||||||||||
Cost of products sold
|
3,815,181 | 3,716,495 | 8,035,531 | 8,272,877 | ||||||||||||
Distributor royalties and commissions
|
6,746,008 | 7,069,332 | 14,866,950 | 15,549,408 | ||||||||||||
Selling, general and administrative
|
7,407,498 | 7,540,728 | 15,676,366 | 16,084,179 | ||||||||||||
Total costs and expenses
|
17,968,687 | 18,326,555 | 38,578,847 | 39,906,464 | ||||||||||||
Income from operations
|
29,235 | 494,076 | 1,105,929 | 1,641,419 | ||||||||||||
Other income (expense):
|
||||||||||||||||
Interest income
|
10,222 | 12,847 | 25,801 | 22,373 | ||||||||||||
Interest expense
|
(35,801 | ) | (54,775 | ) | (72,424 | ) | (106,451 | ) | ||||||||
Other income (expense)
|
83,185 | (36,128 | ) | 14,335 | 21,155 | |||||||||||
Income before income taxes
|
86,841 | 416,020 | 1,073,641 | 1,578,496 | ||||||||||||
Provision for income taxes
|
18,000 | 210,000 | 395,000 | 626,000 | ||||||||||||
Net income
|
$ | 68,841 | $ | 206,020 | $ | 678,641 | $ | 952,496 | ||||||||
Earnings per common share - Basic
|
$ | 0.01 | $ | 0.02 | $ | 0.05 | $ | 0.08 | ||||||||
Weighted average shares
|
12,442,000 | 12,380,000 | 12,446,000 | 12,380,000 | ||||||||||||
Earnings per common share - Diluted
|
$ | 0.01 | $ | 0.02 | $ | 0.05 | $ | 0.08 | ||||||||
Weighted average shares
|
12,444,000 | 12,380,000 | 12,449,000 | 12,380,000 | ||||||||||||
Cash dividends declared per common share
|
$ | 0.03 | $ | 0.02 | $ | 0.03 | $ | 0.02 |
Reliv International, Inc. and Subsidiaries
|
Consolidated Statements of Cash Flows
|
(unaudited)
|
Six months ended
June 30
|
||||||||
2011
|
2010
|
|||||||
Operating activities:
|
||||||||
Net income
|
$ | 678,641 | $ | 952,496 | ||||
Adjustments to reconcile net income to
|
||||||||
net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
592,675 | 610,572 | ||||||
Stock-based compensation
|
91,884 | 100,702 | ||||||
Deferred income taxes
|
(81,000 | ) | (79,000 | ) | ||||
Foreign currency transaction (gain)/loss
|
(10,965 | ) | 11,830 | |||||
(Increase) decrease in accounts receivable
|
27,097 | 39,117 | ||||||
(Increase) decrease in inventories
|
319,462 | (759,757 | ) | |||||
(Increase) decrease in refundable income taxes
|
(132,510 | ) | 23,789 | |||||
(Increase) decrease in prepaid expenses
|
||||||||
and other current assets
|
(366,504 | ) | (415,618 | ) | ||||
(Increase) decrease in other assets
|
964 | 7,949 | ||||||
Increase (decrease) in income taxes payable
|
- | 52,674 | ||||||
Increase (decrease) in accounts payable & accrued expenses
|
||||||||
and other noncurrent liabilities
|
658,313 | 1,217,003 | ||||||
Net cash provided by operating activities
|
1,778,057 | 1,761,757 | ||||||
Investing activities:
|
||||||||
Proceeds from the sale of property, plant and equipment
|
- | 2,953 | ||||||
Purchase of property, plant and equipment
|
(191,700 | ) | (223,401 | ) | ||||
Payment of life insurance premiums
|
(252,250 | ) | (258,100 | ) | ||||
Net cash used in investing activities
|
(443,950 | ) | (478,548 | ) | ||||
Financing activities:
|
||||||||
Principal payments on long-term borrowings
|
(280,344 | ) | (257,079 | ) | ||||
Common stock dividends paid
|
(373,572 | ) | (247,672 | ) | ||||
Purchase of stock for treasury
|
(54,917 | ) | - | |||||
Net cash used in financing activities
|
(708,833 | ) | (504,751 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents
|
58,737 | 611 | ||||||
Increase in cash and cash equivalents
|
684,011 | 779,069 | ||||||
Cash and cash equivalents at beginning of period
|
6,331,038 | 5,760,913 | ||||||
Cash and cash equivalents at end of period
|
$ | 7,015,049 | $ | 6,539,982 |
Reliv International, Inc. and Subsidiaries
|
Notes to Consolidated Financial Statements
|
(Unaudited)
|
June 30, 2011
|
Note 1-- Accounting Policies |
Note 2-- Comprehensive Income |
Note 3-- Basic and Diluted Earnings per Share |
Three months ended
June 30
|
Six months ended
June 30
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Numerator:
|
||||||||||||||||
Net income
|
$ | 68,841 | $ | 206,020 | $ | 678,641 | $ | 952,496 | ||||||||
Denominator:
|
||||||||||||||||
Denominator for basic earnings per
|
||||||||||||||||
share--weighted average shares
|
12,442,000 | 12,380,000 | 12,446,000 | 12,380,000 | ||||||||||||
Dilutive effect of employee stock options
|
||||||||||||||||
and other warrants
|
2,000 | - | 3,000 | - | ||||||||||||
Denominator for diluted earnings per
|
||||||||||||||||
share--adjusted weighted average shares
|
12,444,000 | 12,380,000 | 12,449,000 | 12,380,000 | ||||||||||||
Basic earnings per share
|
$ | 0.01 | $ | 0.02 | $ | 0.05 | $ | 0.08 | ||||||||
Diluted earnings per share
|
$ | 0.01 | $ | 0.02 | $ | 0.05 | $ | 0.08 |
Reliv International, Inc. and Subsidiaries
|
Notes to Consolidated Financial Statements
|
(Unaudited)
|
June 30, 2011
|
Note 4-- Other Income (Expense) |
Note 5-- Recent Accounting Standards Pending Adoption |
Three months ended
June 30,
|
Six months ended
June 30,
|
|||||||||||||||
2011
|
2010
|
2011
|
2010
|
|||||||||||||
Net sales
|
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||||
Costs and expenses:
|
||||||||||||||||
Cost of products sold
|
21.2 | 19.7 | 20.2 | 19.9 | ||||||||||||
Distributor royalties and commissions
|
37.5 | 37.6 | 37.5 | 37.4 | ||||||||||||
Selling, general and administrative
|
41.2 | 40.1 | 39.5 | 38.7 | ||||||||||||
Income from operations
|
0.1 | 2.6 | 2.8 | 4.0 | ||||||||||||
Interest expense
|
(0.2 | ) | (0.3 | ) | (0.2 | ) | (0.3 | ) | ||||||||
Interest and other income (expense)
|
0.6 | (0.1 | ) | 0.1 | 0.1 | |||||||||||
Income before income taxes
|
0.5 | 2.2 | 2.7 | 3.8 | ||||||||||||
Provision for income taxes
|
0.1 | 1.1 | 1.0 | 1.5 | ||||||||||||
Net income
|
0.4 | % | 1.1 | % | 1.7 | % | 2.3 | % |
Three months ended June 30, | ||||||||||||||||||||||||
2011 | 2010 | Change from prior year | ||||||||||||||||||||||
Amount | % of Net Sales | Amount | % of Net Sales | Amount | % | |||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
United States
|
$ | 14,841 | 82.5 | % | $ | 15,954 | 84.7 | % | $ | (1,113 | ) | (7.0 | )% | |||||||||||
Australia/New Zealand
|
596 | 3.3 | 541 | 2.9 | 55 | 10.2 | ||||||||||||||||||
Canada
|
577 | 3.2 | 542 | 2.9 | 35 | 6.5 | ||||||||||||||||||
Mexico
|
354 | 2.0 | 394 | 2.1 | (40 | ) | (10.2 | ) | ||||||||||||||||
Europe
|
856 | 4.7 | 581 | 3.1 | 275 | 47.3 | ||||||||||||||||||
Asia
|
774 | 4.3 | 809 | 4.3 | (35 | ) | (4.3 | ) | ||||||||||||||||
Consolidated total
|
$ | 17,998 | 100.0 | % | $ | 18,821 | 100.0 | % | $ | (823 | ) | (4.4 | )% |
Six months ended June 30,
|
||||||||||||||||||||||||
2011
|
2010
|
Change from prior year
|
||||||||||||||||||||||
Amount
|
% of Net Sales
|
Amount
|
% of Net
Sales
|
Amount
|
%
|
|||||||||||||||||||
(dollars in thousands)
|
||||||||||||||||||||||||
United States
|
$ | 33,306 | 83.9 | % | $ | 35,403 | 85.2 | % | $ | (2,097 | ) | (5.9 | )% | |||||||||||
Australia/New Zealand
|
1,215 | 3.0 | 1,268 | 3.1 | (53 | ) | (4.2 | ) | ||||||||||||||||
Canada
|
1,175 | 3.0 | 1,129 | 2.7 | 46 | 4.1 | ||||||||||||||||||
Mexico
|
702 | 1.8 | 787 | 1.9 | (85 | ) | (10.8 | ) | ||||||||||||||||
Europe
|
1,579 | 4.0 | 1,001 | 2.4 | 578 | 57.7 | ||||||||||||||||||
Asia
|
1,708 | 4.3 | 1,960 | 4.7 | (252 | ) | (12.9 | ) | ||||||||||||||||
Consolidated total
|
$ | 39,685 | 100.0 | % | $ | 41,548 | 100.0 | % | $ | (1,863 | ) | (4.5 | )% |
June 30, 2011
|
June 30, 2010
|
% Change
|
|||||||||||||||||||
Total Active
Distributors
|
Master Affiliates and Above
|
Total Active Distributors
|
Master Affiliates and Above
|
Total Active Distributors
|
Master Affiliates and Above
|
||||||||||||||||
United States
|
45,880
|
5,680
|
49,630
|
6,430
|
(7.6
|
)%
|
(11.7
|
)%
|
|||||||||||||
Australia/New Zealand
|
2,120
|
150
|
2,520
|
190
|
(15.9
|
)
|
(21.1
|
)
|
|||||||||||||
Canada
|
1,360
|
190
|
1,360
|
160
|
0.0
|
18.8
|
|||||||||||||||
Mexico
|
1,430
|
220
|
2,210
|
310
|
(35.3
|
)
|
(29.0
|
)
|
|||||||||||||
Europe
|
2,860
|
280
|
1,630
|
230
|
75.5
|
21.7
|
|||||||||||||||
Asia
|
4,800
|
440
|
6,310
|
610
|
(23.9
|
)
|
(27.9
|
)
|
|||||||||||||
Consolidated total
|
58,450
|
6,960
|
63,660
|
7,930
|
(8.2
|
)%
|
(12.2
|
)%
|
Period
|
Total Number of Shares Purchased
|
Average Price Paid per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Programs
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(1)
|
||||||||||||
April 1-30, 2011
|
— | — | — | $ | 1,000,000 | |||||||||||
May 1-31, 2011
|
12,645 | $ | 2.04 | 12,645 | $ | 974,000 | ||||||||||
June 1-30, 2011
|
14,489 | $ | 2.01 | 14,489 | $ | 945,000 | ||||||||||
Total
|
27,134 | 27,134 |
(1)
|
In April 2011, the Company’s Board of Directors approved a share repurchase plan of up to $1 million through April 2013.
|
Exhibit
|
||
Number
|
Document
|
|
31.1
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the
|
|
Securities Exchange Act, as amended (filed herewith).
|
||
31.2
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) and Rule 15d-14(a) of the
|
|
Securities Exchange Act, as amended (filed herewith).
|
||
32
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C.
|
|
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
|
||
101
|
Interactive Data Files, including the following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2011, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Cash Flows, and (iv) the Notes to Consolidated Financial Statements.
|
By: | /s/ Robert L. Montgomery |
Robert L. Montgomery,
Chairman of the Board of Directors,
President and Chief Executive Officer
|
By: | /s/ Steven D. Albright |
Steven D. Albright,
Chief Financial Officer (and accounting officer)
|
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
a.
|
b.
|
Date: August 15, 2011
|
|
/s/ Robert L. Montgomery | |
Robert L. Montgomery | |||
Chief Executive Officer |
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Date: August 15, 2011
|
|
/s/ Steven D. Albright | |
Steven D. Albright
|
|||
Chief Financial Officer
|
/s/ Robert L. Montgomery | |
Robert L. Montgomery
|
|
Chief Executive Officer | |
Date: August 15, 2011
|
/s/ Steven D. Albright | |
Steven D. Albright
|
|
Chief Financial Officer | |
Date: August 15, 2011
|
Consolidated Balance Sheets [Parenthetical] (USD $)
|
Jun. 30, 2011
|
Dec. 31, 2010
|
---|---|---|
Allowance for accounts receivable (in dollars) | $ 68,600 | $ 67,100 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 14,425,185 | 14,425,185 |
Common stock, shares oustanding | 12,423,674 | 12,450,808 |
Consolidated Statements of Income (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2011
|
Jun. 30, 2010
|
Jun. 30, 2011
|
Jun. 30, 2010
|
|
Product sales | $ 15,984,382 | $ 16,689,178 | $ 35,311,325 | $ 36,946,859 |
Handling & freight income | 2,013,540 | 2,131,453 | 4,373,451 | 4,601,024 |
Net sales | 17,997,922 | 18,820,631 | 39,684,776 | 41,547,883 |
Costs and expenses: | Â | Â | Â | Â |
Cost of products sold | 3,815,181 | 3,716,495 | 8,035,531 | 8,272,877 |
Distributor royalties and commissions | 6,746,008 | 7,069,332 | 14,866,950 | 15,549,408 |
Selling, general and administrative | 7,407,498 | 7,540,728 | 15,676,366 | 16,084,179 |
Total costs and expenses | 17,968,687 | 18,326,555 | 38,578,847 | 39,906,464 |
Income from operations | 29,235 | 494,076 | 1,105,929 | 1,641,419 |
Other income (expense): | Â | Â | Â | Â |
Interest income | 10,222 | 12,847 | 25,801 | 22,373 |
Interest expense | (35,801) | (54,775) | (72,424) | (106,451) |
Other income (expense) | 83,185 | (36,128) | 14,335 | 21,155 |
Income before income taxes | 86,841 | 416,020 | 1,073,641 | 1,578,496 |
Provision for income taxes | 18,000 | 210,000 | 395,000 | 626,000 |
Net income | $ 68,841 | $ 206,020 | $ 678,641 | $ 952,496 |
Earnings per common share - Basic (in dollars per share) | $ 0.01 | $ 0.02 | $ 0.05 | $ 0.08 |
Weighted average shares (in shares) | 12,442,000 | 12,380,000 | 12,446,000 | 12,380,000 |
Earnings per common share - Diluted (in dollars per share) | $ 0.01 | $ 0.02 | $ 0.05 | $ 0.08 |
Weighted average shares (in shares) | 12,444,000 | 12,380,000 | 12,449,000 | 12,380,000 |
Cash dividends declared per common share (in dollars per share) | $ 0.03 | $ 0.02 | $ 0.03 | $ 0.02 |
Document And Entity Information
|
6 Months Ended | |
---|---|---|
Jun. 30, 2011
|
Jul. 29, 2011
|
|
Entity Registrant Name | RELIV INTERNATIONAL INC | Â |
Entity Central Index Key | 0000768710 | Â |
Current Fiscal Year End Date | --12-31 | Â |
Entity Filer Category | Smaller Reporting Company | Â |
Trading Symbol | relv | Â |
Entity Common Stock, Shares Outstanding | Â | 12,420,974 |
Document Type | 10-Q | Â |
Amendment Flag | false | Â |
Document Period End Date | Jun. 30, 2011 | |
Document Fiscal Period Focus | Q2 | Â |
Document Fiscal Year Focus | 2011 | Â |
JA
MK$>9\,*8.2,QGQ'1KQ*?&N$MX50'S_OPI;Q()Q00J9S\1Z9S8Y'7R_?A@6%Y
M%')Y_JQQL4K5U'`R:_,GSVJ[O/P"0A6GNHP!LW&B5\O2Q182K@3,QF-@M23A
M6TBX$C`;#Y%=>)X8+/O>Q50,]>01;L6(VB=J9#245ZJF\:17`^U5]Y8Z4H$'
MH8OXS_]02P,$%`````@`G(L//^&[0U.0#P``.N0``!4`'`!R96QV+3(P,3$P
M-C,P7V1E9BYX;6Q55`D``Y>/24Z7CTE.=7@+``$$)0X```0Y`0``[5U; QK4Q1W$SM[=EMKV?+HKYU,*(]W3'&/:ZEGLC#L"4-G+#@MJP
M;`;#7+-*`1L&?,?7FEV*"[^VU,)T%R)?0,)_C1ES=IOE4!W$K@&6GJ$EY(]'
M,%NB80R;T1+;>_P3OQ'T/'ESOQA<%Z9@_+#OZM,=UVDUR5%&3G/4/2`[,K51
MU@3:)O3Q G)P`%.(1H
M_.7TQV/_[./I;[_^_6^_1!#]\>13<,+:(_KE=!+'L\^MUO/S\[N7)Q*]PV3<
MZIR?=UO+AJ=9R\\O%&ZU?NXNV[9;__E^^Q!,P-0_@XC&/@K65+P;$5W[TZ=/
MK?1_65,*/].4_A8'?IPB*.3K1-J"_^MLV>R,?W76[IQUV^]>:'C*94!P!.[!
MZ"3]^<_Q8@:^G%(XG46<[?2["0&C+Z<$1'-&WVZ??^B><^J?KG"03`&*>RB\
M1C&,%S=HA,DTY?GTA/?[X_YFBWG6!YR_"_"TQ?^WI>R@58VYA]B/`>]\,.I#
MQ+0`_6B(*>1]7T8^I7`$0:C%IF97%1E>=;WZ.3KT"?LS`3$,_$B+U<).ZI/J
M#1M04]"+8D`0T]@48[>4`(VQK4VX+E`O*XK/S0$EV0H""U-)'B6*#?V[90?*!;T
<>L)N(ORB*'
MLZ`SV>71B="9+/3G7*B=\W/;UL!(G[99;61&FU.ZSFC(Y#C./\=4II9-HI-5
MFA7LG_)[K?8&7S_93\`F:9OJL2CR/=5=DW;?"]+T+J'?[I]38I<
"+ text.join( "
\n" ) +"
" + text[p] + "
\n"; } } }else{ formatted = '' + raw + '
'; } html = ''+ "\n"+''+ "\n"+''+ "\n"+' formatted: '+ ( this.Default == 'raw' ? 'as Filed' : 'with Text Wrapped' ) +''+ "\n"+' | '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
Basic and Diluted Earnings per Share
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2011
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | Â | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Text Block] |
Basic earnings per common share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share are computed using the weighted average number of common shares and potential dilutive common shares that were outstanding during the period. Potential dilutive common shares consist of outstanding stock options, outstanding stock warrants, and convertible preferred stock.
The following table sets forth the computation of basic and diluted earnings per share:
Options and warrants to purchase 780,798 shares of common stock for the three months and six months ended June 30, 2011, respectively, were not included in the denominator for diluted earnings per share because their effect would be antidilutive. Options and warrants to purchase 806,689 shares of common stock for the three months and six months ended June 30, 2010, respectively, were not included in the denominator for diluted earnings per share because their effect would be antidilutive.
|
Accounting Policies
|
6 Months Ended | |
---|---|---|
Jun. 30, 2011
|
||
Accounting Policies [Abstract] | Â | |
Significant Accounting Policies [Text Block] |
Basis of Presentation
The accompanying unaudited consolidated financial statements and notes thereto have been prepared in accordance with the instructions to Form 10-Q and reflect all adjustments (which primarily include normal recurring accruals) which management believes are necessary to present fairly the financial position, results of operations and cash flows. These statements, however, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States. Interim results may not necessarily be indicative of results that may be expected for any other interim period or for the year as a whole. These financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the annual report on Form 10-K for the year ended December 31, 2010, filed March 17, 2011 with the Securities and Exchange Commission.
|
Other Income and Expenses
|
6 Months Ended | |
---|---|---|
Jun. 30, 2011
|
||
Other Income and Expenses [Abstract] | Â | |
Other Income and Other Expense Disclosure [Text Block] |
During the first quarter of 2011, the Company reported that a local nominee director and former employee of the Company's Indonesian subsidiary misappropriated approximately $97,000 from the subsidiary's bank account. At March 31, 2011, it was management's best estimate that recovery of the misappropriated funds from the individual or reimbursement under the Company's crime insurance policy was uncertain. Therefore, the Company recognized a loss of $97,000, which was recorded within the Other Income (Expense) line in the Consolidated Statements of Income for the three month period ending March 31, 2011.
During the second quarter of 2011, the Company successfully removed the former employee as a local nominee director of the Indonesia subsidiary. In addition, the Company negotiated a settlement with the former employee which resulted in the former employee returning to the Company approximately $60,000 of the original $97,000 misappropriation. As a result, the Company recognized a recovery of approximately $60,000, which has been recorded as an increase to income within the Other Income (Expense) line in the Consolidated Statements of Income for the three month period ending June 30, 2011. For the six month period ending June 30, 2011, the Company has recognized a net expense of $37,000 within the Other Income (Expense) line in the Consolidated Statements of Income.
|
Recent Accounting Standards Pending Adoption
|
6 Months Ended | |
---|---|---|
Jun. 30, 2011
|
||
Recent Accounting Standards Pending Adoption [Abstract] | Â | |
Recent Accounting Standards Pending Adoption [Text Block] |
In June 2011, the Financial Accounting Standards Board (FASB) issued an amendment on the presentation of other comprehensive income. Under this amendment, entities will be required to present the total of comprehensive income, the components of net income, and the components of other comprehensive income either in a single continuous statement of comprehensive income or two separate but consecutive statements. The current option to report other comprehensive income and its components in the statement of changes in equity has been eliminated. This amendment will be effective for the Company on January 1, 2012, and retrospective application is required. The Company does not anticipate that this amendment will have a material impact on its financial statements.
In May 2011, the FASB issued amended guidance on fair value measurement and related disclosures. The new guidance clarified the concepts applicable for fair value measurement of non-financial assets and requires the disclosure of quantitive information about the unobservable inputs used in a fair value measurement. This guidance will be effective for the Company on January 1, 2012, and will be applied prospectively. The Company does not anticipate that this amendment will have a material impact on its financial statements.
|
Comprehensive Income
|
6 Months Ended | |
---|---|---|
Jun. 30, 2011
|
||
Statement of Income and Comprehensive Income [Abstract] | Â | |
Comprehensive Income Note [Text Block] |
Comprehensive income was $95,199 and $638,514 for the three and six months ended June 30, 2011, respectively. For the three and six months ended June 30, 2010, comprehensive income was $167,636 and $959,155, respectively. The Company's only component of other comprehensive income is the foreign currency translation adjustment.
|