Reliv International Reports Fourth-Quarter Results

Reliv Reports Increase in Operating Income for the Quarter


CHESTERFIELD, Mo., Feb. 25, 2009 (GLOBE NEWSWIRE) -- 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.

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 $4.4 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.


 Reliv International, Inc. and Subsidiaries

 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
                                         ============================



 Reliv International, Inc. and Subsidiaries

 Consolidated Statements of Operations

                 Three months ended                Year ended
                     December 31,                  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
   admini-
   strative     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
              =========================    ==========================



 Reliv International, Inc. and Subsidiaries

 Net sales by Market
 (in thousands)

                Three months ended December 31,         Change From
                    2008                2007            Prior Year
                        % of                % of
              Amount    sales     Amount    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
                        % of                 % of
              Amount    sales    Amount      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 %
                       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      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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