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%
================= ================= ================