Reliv International Reports Third-Quarter Results


CHESTERFIELD, Mo., Oct. 29, 2008 (GLOBE NEWSWIRE) -- Reliv International, Inc. (Nasdaq:RELV), a nutrition and direct selling company, today reported net sales for the third quarter of $23.9 million, compared to net sales of $25.1 million in the third quarter last year.

Net income for the third quarter equaled $536,000 or $0.04 per diluted share, compared to net income of $901,000 or $0.06 per diluted share in the third quarter of 2007.

For the nine months ended Sept. 30, net sales equaled $76.1 million compared to $86.4 million in the first nine months of 2007. Net income was $2.6 million through three quarters of 2008, or $0.17 per diluted share, compared to $4.3 million or $0.27 per diluted share for the same period last year. Excluding the one-time, after-tax charge related to restructuring Reliv's European operations in this year's second quarter, earnings through nine months would have been $2.7 million, and earnings per share would have been $0.18.

Net sales in the United States equaled $20.8 million in the third quarter compared to net sales of $22.0 million in the third quarter of 2007, a 5.4 percent decline. International net sales (sales outside of the United States) declined 2.1 percent to $3.0 million from $3.1 million in the third quarter of last year.

As of Sept. 30, 2008, Reliv's distributor base totaled approximately 68,540, which represents a slight drop from a year ago.

"The third quarter was not as strong as we had hoped for, and we believe the shocks to the U.S. economy in September played a role in our sales decline," said Robert L. Montgomery, president, chairman and chief executive officer of Reliv.

"Short-term, restructuring our European operations significantly reduced our pre-tax losses in that region as we expected. But that improvement was negated by lower U.S. pre-tax profits resulting from a sales decline," Montgomery said.

"We launched an automatic shipping program in the U.S. at our International Conference in August, which we believe will be a long-term positive for our business. We also launched the program in Australia this month," he added.

"In addition to a planned product launch on Nov. 8, we continue to look for proven incentive programs to stimulate sales, and we have a national conference for U.S. distributors scheduled for February 2009, which should further motivate our field," Montgomery said.

Selling, general and administrative (SG&A) costs in the third quarter were down compared to SG&A expenses in the year-ago quarter, and Reliv also achieved a slight drop in SG&A as a percentage of sales. Lower SG&A figures in the United States and Germany helped lead to the decline.

Cash from operations for the first nine months of 2008 equaled $3.6 million, and we had cash on hand at the end of the quarter of $5.8 million.

"We are focused on turning around our U.S. business by sticking to the basics: Reliv makes nutrition simple. Our products can play a role in supporting many thousands of people's efforts to live a healthier life. In addition, we offer distributors an outstanding business opportunity," he added.

Reliv will host a conference call to discuss third-quarter earnings with investors at 1:00 p.m. Eastern Daylight Time on October 29. The dial-in number for investors is 888-680-0869. The participant passcode is 23697341. 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 79877419. 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 approximately 68,500 independent distributors. Additional information about Reliv International, Inc. can be obtained on the Web at www.reliv.com.


 Reliv International, Inc. and Subsidiaries

 Condensed Consolidated Balance Sheets

                  September 30  December 31
                      2008         2007
                  -------------------------
                   (Unaudited)
 Assets
 Current Assets:
  Cash and cash
   equivalents     $ 5,761,294  $11,694,699
  Short-term
   investments              --      398,592
  Accounts and
   notes receivable,
   less allowances
   of $8,400 in
   2008 and
   $8,300 in 2007      517,051      811,634
  Accounts due
   from employees
   and distributors    241,945      204,705
  Inventories        6,782,918    6,179,238
  Other current
   assets            1,816,976    1,798,932
                   ------------------------
 Total current
  assets            15,120,184   21,087,800

 Other assets        2,804,587    2,999,903
 Accounts due
  from employees
  and distributors     178,391      319,883
 Net property,
  plant and
  equipment          9,115,506    9,199,185
                   ------------------------
 Total Assets      $27,218,668  $33,606,771
                   ========================

 Liabilities and Stockholders' Equity
 Total current
  liabilities      $ 8,520,808  $ 8,574,257
 Total non-current
  liabilities          956,990    1,227,313
 Stockholders'
  equity            17,740,870   23,805,201
                   ------------------------
 Total Liabilities
  and Stockholders'
  Equity           $27,218,668  $33,606,771
                   ========================


 Consolidated Statements of Income

                   ------------------------  ------------------------
                      Three months ended        Nine months ended
                          September 30              September 30
                      2008         2007         2008         2007
                   ------------------------  ------------------------
                   (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
 Product sales     $21,226,975  $22,501,899  $67,719,727  $77,450,784
 Handling &
  freight income     2,633,832    2,619,260    8,372,176    8,958,556
                   ------------------------  ------------------------

 Net Sales          23,860,807   25,121,159   76,091,903   86,409,340

 Costs and expenses:
  Cost of
   products sold     4,464,874    4,320,557   13,410,310   14,780,889
  Distributor
   royalties and
   commissions       9,320,880    9,926,735   29,865,734   34,458,125
  Selling,
   general and
   administrative    8,950,900    9,740,241   28,472,176   30,969,921
                   ------------------------  ------------------------
 Total Costs and
  Expenses          22,736,654   23,987,533   71,748,220   80,208,935
                   ------------------------  ------------------------
 Income from
  operations         1,124,153    1,133,626    4,343,683    6,200,405

 Other income
  (expense):
 Interest income        64,329      122,788      299,893      498,904
 Interest expense      (21,011)        (159)     (31,405)        (732)
 Other income
  (expense)           (211,550)      73,302     (229,139)     268,540
                   ------------------------  ------------------------
 Income before
  income taxes         955,921    1,329,557    4,383,032    6,967,117
 Provision for
  income taxes         420,000      429,000    1,752,000    2,623,000
                   ------------------------  ------------------------

 Net Income        $   535,921  $   900,557  $ 2,631,032  $ 4,344,117
                   ========================  ========================
 Earnings per
  common share -
  Basic            $      0.04  $      0.06  $      0.17  $      0.27
                   ========================  ========================
 Weighted average
  shares            14,806,000   15,938,000   15,498,000   16,166,000
                   ========================  ========================
 Earnings per
  common share -
  Diluted          $      0.04  $      0.06  $      0.17  $      0.27
                   ========================  ========================
 Weighted average
  shares            14,810,000   16,171,000   15,502,000   16,374,000
                   ========================  ========================
 Cash dividends
  declared per
  common share     $        --  $        --  $      0.05  $      0.05
                   ========================  ========================


 Reliv International, Inc. and Subsidiaries

 The following tables summarize net sales by geographic market ranked
 by the date we began operations in each market.

 Net sales by Market
 (in thousands)

               Three months ended September 30,        Change From
                   2008                2007             Prior Year
                         % of               % of
              Amount     sales    Amount    sales     Amount      %
              ----------------    ---------------    -----------------
 United
  States      20,814     87.2%    22,009    87.6%    (1,195)    -5.4%
 Australia
  /New
  Zealand        667      2.8%       715     2.8%       (48)    -6.7%
 Canada          404      1.7%       378     1.5%        26      6.9%
 Mexico          389      1.6%       351     1.4%        38     10.8%
 United
  Kingdom
  /Ireland       234      1.0%       242     1.0%        (8)    -3.3%
 Philippines     583      2.4%       809     3.2%      (226)   -27.9%
 Malaysia
  /Singapore     682      2.9%       419     1.7%       263     62.8%
 Germany          88      0.4%       198     0.8%      (110)   -55.6%
              ----------------    ---------------    -----------------
 Consolidated
  Total       23,861    100.0%    25,121   100.0%    (1,260)    -5.0%
              ================    ===============    =================


 Net sales by Market
 (in thousands)

               Nine months ended September 30,         Change From
                   2008                2007             Prior Year
                         % of               % of
              Amount     sales    Amount    sales     Amount      %
              ----------------    ---------------    ----------------
 United
  States      65,934     86.7%    77,215    89.4%   (11,281)   -14.6%
 Australia
  /New
  Zealand      2,096      2.8%     2,090     2.4%         6      0.3%
 Canada        1,301      1.7%     1,196     1.4%       105      8.8%
 Mexico        1,269      1.7%     1,155     1.3%       114      9.9%
 United
  Kingdom
  /Ireland       791      1.0%       781     0.9%        10      1.3%
 Philippines   2,092      2.7%     2,108     2.4%       (16)    -0.8%
 Malaysia
  /Singapore   2,174      2.8%     1,173     1.4%     1,001     85.3%
 Germany         435      0.6%       691     0.8%      (256)   -37.0%
              ----------------    ---------------    ----------------
 Consolidated
  Total       76,092    100.0%    86,409   100.0%   (10,317)   -11.9%
              ================    ===============    ================


 The following table sets forth, as of September 30, 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              As of
                 9/30/2008          9/30/2007          Change in %
                       Master             Master              Master
                       Affil-             Affil-              Affil-
              Active   iates      Active  iates      Active   iates
              Distri-   and       Distri-  and       Distri-   and
              butors   Above      butors  Above      butors   Above
              ---------------     --------------     ----------------
 United
  States      54,210   10,630     57,420  13,600       -5.6%   -21.8%
 Australia
  /New
  Zealand      2,480      230      2,510     280       -1.2%   -17.9%
 Canada        1,250      160      1,150     160        8.7%     0.0%
 Mexico        1,550      240      1,380     220       12.3%     9.1%
 United
  Kingdom
  /Ireland       750      110        790     120       -5.1%    -8.3%
 Philippines   4,590      420      4,460     370        2.9%    13.5%
 Malaysia
  /Singapore   3,270      580      2,230     310       46.6%    87.1%
 Germany         440       80        560     140      -21.4%   -42.9%
              ---------------    ---------------    -----------------
 Consolidated
  Total       68,540   12,450     70,500  15,200       -2.8%   -18.1%
              ===============    ===============    =================


            

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