CHESTERFIELD, Mo., April 30, 2008 (PRIME NEWSWIRE) -- Reliv International, Inc. (Nasdaq:RELV), a nutrition and direct selling company, today reported net sales for the first quarter of $28.3 million, compared to record net sales of $35.0 million in the first quarter last year.
Net income for the first quarter equaled $1.5 million or $0.10 per diluted share, compared to net income of $2.6 million or $0.16 per diluted share in the first quarter of 2007.
As of March 31, 2008, Reliv's distributor base totaled approximately 69,700, up about 1,000 from March 31, 2007, when Reliv had approximately 68,700 distributors.
Net sales in the United States equaled $24.7 million in the first quarter compared to net sales of $31.9 million in the same quarter last year.
International net sales (sales outside of the U.S.) rose 17.2 percent to $3.6 million compared to $3.1 million in the same quarter last year. Net sales in the Philippines rose approximately 30 percent in the quarter, and net sales in our Malaysia/Singapore region nearly doubled.
"To increase sales, we are investing in special events featuring Reliv senior management and top distributors at meetings in Reliv's larger U.S. markets. The events combine training and motivational activities," said Robert L. Montgomery, president, chairman and chief executive officer.
"We believe the new training we instituted last year is gaining traction as we are seeing the number of new Master Affiliates, our entry level for business builders, increase compared to the past three quarters," Montgomery said. "That is a promising sign that we'll be watching closely in coming quarters," he said.
"While investing in training and sales," Montgomery said, "we also are looking for ways to cut unnecessary costs and reduce losses in international operations."
Selling, general and administrative (SG&A) costs in this year's first quarter were down $1.1 million compared to the first quarter of 2007. SG&A expenses as a percentage of sales, however, increased to 35.1 percent vs. 31.6 percent in the first quarter of 2007, as the result of the lower sales levels.
Reliv's balance sheet remains solid. The company had $15.2 million in cash, cash equivalents and short-term investments as of March 31. Reliv has no long-term debt. Reliv reported cash from operations for the quarter of $3.2 million.
"As we work to improve both top-line and bottom-line growth, we are focused on the basics of our business," Montgomery said. "We make nutrition simple. Our products can play a role in fostering wellness for our distributors and customers," he said. "We also offer distributors an outstanding business opportunity along with strong training and incentive programs designed to increase sales and sponsorship of new people into Reliv."
Reliv will host a conference call to discuss first-quarter earnings with investors at 1:00 p.m. Eastern Daylight Time on April 30. The dial-in number for investors is 888-679-8035. The participant passcode is 13122074. 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 45703790. 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 suburban St. Louis, Mo., is a developer, manufacturer and marketer of a proprietary line of nutritional supplements addressing basic nutrition, specific wellness needs, weight management and sports nutrition. Reliv sells its products through an international network marketing system of approximately 70,000 independent distributors. Additional information about Reliv International, Inc. can be obtained on the Web at www.reliv.com.
Reliv International, Inc. and Subsidiaries
Consolidated Balance Sheets
March 31 December 31
2008 2007
--------------------------
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $13,666,929 $11,694,699
Short-term investments 1,521,111 398,592
Accounts and notes receivable, less
allowances of $8,400 in 2008 and
$8,300 in 2007 568,010 811,634
Accounts due from employees and
distributors 231,532 204,705
Inventories 6,449,418 6,179,238
Other current assets 1,378,285 1,798,932
--------------------------
Total current assets 23,815,285 21,087,800
Other assets 3,308,717 3,319,786
Net property, plant and equipment 9,080,888 9,199,185
--------------------------
Total Assets $36,204,890 $33,606,771
==========================
Liabilities and Stockholders' Equity
Total current liabilities $ 9,645,472 $ 8,574,257
Other non-current liabilities 1,134,526 1,227,313
Stockholders' equity 25,424,892 23,805,201
--------------------------
Total Liabilities and Stockholders'
Equity $36,204,890 $33,606,771
==========================
Consolidated Statements of Operations
--------------------------
Three months ended March 31
2008 2007
--------------------------
(Unaudited) (Unaudited)
Product sales $25,197,178 $31,397,966
Handling & freight income 3,074,208 3,565,679
--------------------------
Net Sales 28,271,386 34,963,645
Costs and expenses:
Cost of products sold 4,834,526 6,061,392
Distributor royalties and commissions 11,122,372 13,928,563
Selling, general and administrative 9,931,799 11,029,850
--------------------------
Total Costs and Expenses 25,888,697 31,019,805
--------------------------
Income from operations 2,382,689 3,943,840
Other income (expense):
Interest income 134,873 212,602
Interest expense (413) (126)
Other income (expense) (35,112) 96,933
--------------------------
Income before income taxes 2,482,037 4,253,249
Provision for income taxes 956,000 1,633,000
--------------------------
Net Income $ 1,526,037 $ 2,620,249
==========================
Earnings per common share - Basic $ 0.10 $ 0.16
==========================
Weighted average shares 15,874,000 16,431,000
==========================
Earnings per common share - Diluted $ 0.10 $ 0.16
==========================
Weighted average shares 15,874,000 16,580,000
==========================
Cash dividends declared per common share $ -- $ --
==========================
Reliv International, Inc. and Subsidiaries
The following table summarizes net sales by geographic market ranked
by the date we began operations in each market.
Net sales by Market
(in thousands) Three months ended March 31, Change from
2008 2007 prior year
% of % of
Net Net
Amount Sales Amount Sales Amount %
--------------- --------------- ---------------
United States 24,685 87.3% 31,904 91.2% (7,219) -22.6%
Australia/
New Zealand 747 2.7% 653 1.9% 94 14.4%
Canada 461 1.6% 441 1.3% 20 4.5%
Mexico 398 1.4% 410 1.2% (12) -2.9%
United Kingdom/
Ireland 287 1.0% 287 0.8% 0 0.0%
Philippines 814 2.9% 628 1.8% 186 29.6%
Malaysia/
Singapore 642 2.3% 330 0.9% 312 94.5%
Germany 237 0.8% 311 0.9% (74) -23.8%
--------------- --------------- ---------------
Consolidated
Total 28,271 100.0% 34,964 100.0% (6,693) -19.1%
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The following table sets forth, as of March 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 3/31/2008 As of 3/31/2007 Change in %
Master Master Master
Affil- Affil- Affil-
Active iates Active iates Active iates
Distrib- and Distrib- and Distrib- and
utors Above utors Above utors Above
---------------- ---------------- ----------------
United States 55,970 9,400 56,320 12,660 -0.6% -25.8%
Australia/
New Zealand 2,520 210 2,520 270 0.0% -22.2%
Canada 1,180 130 1,170 150 0.9% -13.3%
Mexico 1,490 190 1,170 170 27.4% 11.8%
United Kingdom/
Ireland 740 80 940 130 -21.3% -38.5%
Philippines 4,730 380 3,750 270 26.1% 40.7%
Malaysia/
Singapore 2,540 340 2,310 260 10.0% 30.8%
Germany 540 90 510 150 5.9% -40.0%
--------------- --------------- ---------------
Consolidated
Total 69,710 10,820 68,690 14,060 1.5% -23.0%
=============== =============== ===============