CHESTERFIELD, Mo., July 30, 2009 (GLOBE NEWSWIRE) -- Reliv International, Inc. (Nasdaq:RELV), a nutrition and direct selling company, today reported second-quarter net sales of $20.1 million, down from net sales of $24.0 million in the same quarter last year.
Net income for the second quarter dropped to $410,000 from $569,000 and earnings per diluted share declined to $0.03 from $0.04 in the second quarter of 2008.
U.S. net sales in the quarter were $17.6 million, down 13.7 percent from the second quarter of last year. Net sales in international markets declined to $2.4 million in this year's second quarter from $3.5 million in the same quarter last year, but approximately 40 percent of the decline was due to the stronger U.S. dollar in 2009.
"Sales are down in large part, we believe, due to lower consumer spending and tight credit, both resulting from the poor economy. But our business opportunity remains attractive in this market," said Reliv Chairman, President and CEO Robert L. Montgomery.
"Consumers continue to face salary reductions, layoffs and furloughs, and we are seeing many people turning to us to help supplement their income," Montgomery said. "The number of new-distributor enrollments in the second quarter rose 6.2% compared to the second quarter of 2008," he added.
The business opportunity was the focus of Reliv's Financial Freedom Tour, a series of special events in more than 15 cities during June and July. Senior executives spoke to approximately 4,500 people combined at those events.
"Looking forward, we have a great international conference planned for mid-August, where we'll be making exciting announcements that we believe will boost our business," he said. "And we remain well positioned to capitalize on people's need to find new sources of income and on their desire to improve their health," Montgomery said.
For the first half of 2009, net sales totaled $43.8 million compared to $52.2 million in the first six months of 2008. Net income was $1.4 million or $0.10 per diluted share compared to $2.1 million or $0.13 per diluted share in last year's first half.
As the result of improved working capital management, Reliv generated cash from operations of $2.6 million in the first half of 2009, 14 percent higher than cash generated in the first half of last year. As of June 30, 2009, Reliv had cash and cash equivalents of $6.1 million.
Outstanding shares as of June 30, 2009, decreased by approximately 2 million shares since December 31, 2008, chiefly through buying out a large shareholder. In the first half of this year, Reliv spent approximately $6.1 million repurchasing those shares.
"The basics of our business remain compelling," Montgomery said. "Reliv makes nutrition simple, and we offer an outstanding business opportunity for those who are seeking to supplement or replace a lost income."
Reliv will host a conference call to discuss second-quarter earnings with investors. The conference call will be on July 30, 2009 at 1:00 p.m. Eastern. The dial-in number is 888-680-0878. The participant passcode is 39516769. A replay will be available for one week at 888-286-8010 using the passcode 17604036. 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 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 68,000 independent distributors. Additional information about Reliv International, Inc. can be obtained on the Web at www.reliv.com.
Condensed Consolidated Balance Sheets
June 30 December 31
2009 2008
-----------------------
(Unaudited)
Assets
Current Assets:
Cash and cash
equivalents $6,120,380 $4,460,637
Accounts and notes
receivable, less
allowances of $15,900
in 2009 and $10,200
in 2008 318,463 494,689
Accounts due from
employees and
distributors 205,056 241,532
Inventories 6,299,035 6,221,954
Other current assets 1,642,150 2,176,802
-----------------------
Total current assets 14,585,084 13,595,614
Other assets 1,488,681 1,220,546
Accounts due from
employees and
distributors 119,920 164,462
Net property, plant
and equipment 8,660,357 8,912,157
-----------------------
Total Assets $24,854,042 $23,892,779
=======================
Liabilities and
Stockholders' Equity
Total current
liabilities $9,859,142 $7,350,199
Total non-current
liabilities 4,098,865 434,990
Stockholders' equity 10,896,035 16,107,590
-----------------------
Total Liabilities and
Stockholders' Equity $24,854,042 $23,892,779
=======================
Consolidated Statements of Income
----------------------- -----------------------
Three months ended Six months ended
June 30 June 30
2009 2008 2009 2008
----------------------- -----------------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Product sales $17,772,137 $21,295,574 $38,938,318 $46,492,752
Handling & freight
income 2,280,992 2,664,136 4,905,801 5,738,344
----------------------- -----------------------
Net Sales 20,053,129 23,959,710 43,844,119 52,231,096
Costs and expenses:
Cost of products sold 3,773,902 4,110,910 8,349,653 8,945,436
Distributor royalties
and commissions 7,634,899 9,422,481 16,572,566 20,544,853
Selling, general and
administrative 8,050,852 9,589,478 16,668,725 19,521,277
----------------------- -----------------------
Total Costs and
Expenses 19,459,653 23,122,869 41,590,944 49,011,566
----------------------- -----------------------
Income from operations 593,476 836,841 2,253,175 3,219,530
Other income
(expense):
Interest income 14,704 100,691 35,419 235,564
Interest expense (41,384) (9,981) (50,934) (10,394)
Other income (expense) 114,035 17,523 126,090 (17,589)
----------------------- -----------------------
Income before income
taxes 680,831 945,074 2,363,750 3,427,111
Provision for income
taxes 271,000 376,000 942,000 1,332,000
----------------------- -----------------------
Net Income $409,831 $569,074 $1,421,750 $2,095,111
======================= =======================
Earnings per common
share - Basic $0.03 $0.04 $0.10 $0.13
======================= =======================
Weighted average
shares 12,821,000 15,821,000 13,556,000 15,847,000
======================= =======================
Earnings per common
share - Diluted $0.03 $0.04 $0.10 $0.13
======================= =======================
Weighted average
shares 12,821,000 15,821,000 13,556,000 15,847,000
======================= =======================
Cash dividends
declared per common
share $0.05 $0.05 $0.05 $0.05
======================= =======================
Net sales by Market
(in thousands)
Three months ended June 30,
2009 2008 Change From
% of % of Prior Year
Amount sales Amount sales Amount %
-------------- -------------- --------------
United States 17,638 87.9% 20,435 85.3% (2,797) -13.7%
Australia/New Zealand 535 2.7% 682 2.8% (147) -21.6%
Canada 313 1.6% 436 1.8% (123) -28.2%
Mexico 345 1.7% 481 2.0% (136) -28.3%
Europe 305 1.5% 381 1.6% (76) -19.9%
Asia 917 4.6% 1,545 6.5% (628) -40.6%
-------------- -------------- --------------
Consolidated total 20,053 100.0% 23,960 100.0% (3,907) -16.3%
============== ============== ==============
Net sales by Market
(in thousands)
Six months ended June 30,
2009 2008 Change From
% of % of Prior Year
Amount sales Amount sales Amount %
-------------- -------------- --------------
United States 39,019 89.0% 45,120 86.4% (6,101) -13.5%
Australia/New Zealand 1,051 2.4% 1,428 2.7% (377) -26.4%
Canada 648 1.5% 897 1.7% (249) -27.8%
Mexico 627 1.4% 880 1.7% (253) -28.8%
Europe 613 1.4% 905 1.8% (292) -32.3%
Asia 1,886 4.3% 3,001 5.7% (1,115) -37.2%
-------------- -------------- --------------
Consolidated total 43,844 100.0% 52,231 100.0% (8,387) -16.1%
============== ============== ==============
The following table sets forth, as of June 30, 2009 and 2008, 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 6/30/2009 As of 6/30/2008 Change in %
Active Master Active Master Active Master
Distrib- Affiliates Distrib- Affiliates Distrib- Affiliates
utors and Above utors and Above utors and Above
------------------- ------------------- -------------------
United
States 54,160 7,880 55,070 10,080 -1.7% -21.8%
Australia/
New
Zealand 2,440 180 2,420 220 0.8% -18.2%
Canada 1,230 120 1,230 150 0.0% -20.0%
Mexico 1,820 210 1,540 220 18.2% -4.5%
Europe 1,090 160 1,250 170 -12.8% -5.9%
Asia 7,300 840 7,940 920 -8.1% -8.7%
------------------- ------------------- -------------------
Consolidated
total 68,040 9,390 69,450 11,760 -2.0% -20.2%
=================== =================== ===================