Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT - RELIV INTERNATIONAL INC | v164031_8-k.htm |
EXHIBIT
99.1
NEWS
RELEASE
For more
information, contact:
|
Steve
Albright
|
Fred
Nielson
|
Barry
Murov
|
|
Chief
Financial Officer
|
Investor
Relations
|
Media
Relations
|
|
(636)
733-1305
|
(636)
733-1314
|
(636)
733-1303
|
FOR
IMMEDIATE RELEASE
Reliv
International Reports Third-Quarter Results
CHESTERFIELD,
Mo., Oct. 29, 2009 – Reliv International, Inc. (NASDAQ:RELV), a nutrition and
direct selling company, today reported third-quarter net sales of $20.9 million
vs. $23.9 million in the same quarter of 2008.
Net
income was $324,000 vs. $536,000 in the 2008 third quarter, and earnings per
diluted share were $0.03 compared to $0.04 in the same quarter last
year.
In the
United States, net sales totaled $18.3 million compared to $20.8 million in the
third quarter of 2008. Net sales outside of the U.S. declined by
approximately 14 percent. Excluding the impact of foreign currency
fluctuations, however, the decline in foreign sales was about 5
percent.
Reliv
also announced that it is reducing its dividend from $0.05 per share to $0.02
per share. For 2009, Reliv’s annual dividend will be $0.07 rather
than $0.10 per share.
“Despite
the decline in our performance compared to last year’s third quarter, we saw
glimmers of light that we hope will shine brighter as we move into 2010,” said
Robert L. Montgomery, chairman, president and chief executive
officer. “We achieved a five percent increase in the number of new
distributors along with an increase in the number of orders this quarter over
the third quarter of 2008,” he said.
“This
year we also reported a sequential increase in net sales from the second quarter
to the third quarter for the first time since 2006,” Montgomery
said. “In addition, the number of orders and the size of the average
order are up sequentially.”
-
MORE -
Reliv
International, Inc. and Subsidiaries
ADD
ONE
“The
highlight of the third quarter was our international conference in St. Louis,
where we introduced a new line of products under the RelivablesÒ
name as well as a number of new business tools for distributors. All
have been well received,” Montgomery said.
For the
first nine months of 2009, net sales totaled $64.7 million, down about 15
percent compared to the same period last year. U.S. sales decreased
approximately 13 percent, while sales outside of the U.S. were down about 27
percent. Excluding foreign currency fluctuations, foreign sales were
down 13.5 percent.
Net
income for the first three quarters of this year equaled $1.7 million compared
to $2.6 million for the first three quarters of 2008. Diluted
earnings per share for the period equaled $0.13, down from diluted earnings per
share of $0.17 for the first nine months of last year.
Reliv
generated cash from operating activities of $4.8 million during the first nine
months of 2009, an increase of approximately 34 percent over cash generated from
operations during the same period last year. Reducing inventory
levels was a key factor in the increase.
“In the
fourth quarter, we are continuing a series of special events called the
Financial Freedom Tour, launched earlier this year, in which we highlight the
Reliv business opportunity. We expect to share the opportunity with a
couple of thousand existing and potential distributors between October and
November through these events,” Montgomery said.
Dividend
reduction
Commenting
on the reduction in Reliv’s dividend, Steven D. Albright, senior vice president
and chief financial officer, said, “This is a difficult decision but we’re
confident it’s the right one for Reliv. With profits down, we can
invest the cost savings from the dividend to strengthen our business
overall.”
The
dividend will be paid to all shareholders of record as of Nov. 9, 2009, to be
paid on or about Nov. 19, 2009.
-
MORE -
Reliv
International, Inc. and Subsidiaries
ADD
TWO
Reliv
will host a conference call to discuss third-quarter earnings with
investors. The conference call will be on October 29, 2009 at 1:00
p.m. Eastern. The dial-in number is 866-272-9941. The participant
passcode is 10757749. A replay will be available for one week at
888-286-8010 using the passcode 37679647. 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.
--FINANCIAL
HIGHLIGHTS FOLLOW –
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Reliv
International, Inc. and Subsidiaries
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||||||||||||||||
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ADD
THREE
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||||||||||||||||
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Condensed
Consolidated Balance Sheets
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||||||||||||||||
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September
30
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December
31
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|||||||||||||||
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2009
|
2008
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|||||||||||||||
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(Unaudited)
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||||||||||||||||
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Assets
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||||||||||||||||
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Current
Assets:
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||||||||||||||||
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Cash
and cash equivalents
|
$ | 6,422,451 | $ | 4,460,637 | ||||||||||||
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Accounts
and notes receivable, less allowances of
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||||||||||||||||
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$16,000
in 2009 and $10,200 in 2008
|
339,230 | 494,689 | ||||||||||||||
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Accounts
due from employees and distributors
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107,327 | 241,532 | ||||||||||||||
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Inventories
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5,049,939 | 6,221,954 | ||||||||||||||
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Other
current assets
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1,275,831 | 2,176,802 | ||||||||||||||
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Total
current assets
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13,194,778 | 13,595,614 | ||||||||||||||
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Other
assets
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3,583,601 | 1,220,546 | ||||||||||||||
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Accounts
due from employees and distributors
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— | 164,462 | ||||||||||||||
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Net
property, plant and equipment
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8,572,327 | 8,912,157 | ||||||||||||||
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Total
Assets
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$ | 25,350,706 | $ | 23,892,779 | ||||||||||||
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Liabilities
and Stockholders' Equity
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||||||||||||||||
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Total
current liabilities
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$ | 8,810,776 | $ | 7,350,199 | ||||||||||||
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Total
non-current liabilities
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5,262,896 | 434,990 | ||||||||||||||
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Stockholders'
equity
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11,277,034 | 16,107,590 | ||||||||||||||
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Total
Liabilities and Stockholders' Equity
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$ | 25,350,706 | $ | 23,892,779 | ||||||||||||
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Consolidated
Statements of Income
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||||||||||||||||
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Three
months ended September 30
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Nine
months ended September 30
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|||||||||||||||
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2009
|
2008
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2009
|
2008
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|||||||||||||
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(Unaudited)
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(Unaudited)
|
(Unaudited)
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(Unaudited)
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|||||||||||||
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Product
sales
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$ | 18,578,895 | $ | 21,226,975 | $ | 57,517,213 | $ | 67,719,727 | ||||||||
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Handling
& freight income
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2,306,633 | 2,633,832 | 7,212,434 | 8,372,176 | ||||||||||||
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Net
Sales
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20,885,528 | 23,860,807 | 64,729,647 | 76,091,903 | ||||||||||||
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Costs
and expenses:
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||||||||||||||||
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Cost
of products sold
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4,451,156 | 4,464,874 | 12,800,809 | 13,410,310 | ||||||||||||
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Distributor
royalties and commissions
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7,907,856 | 9,320,880 | 24,480,422 | 29,865,734 | ||||||||||||
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Selling,
general and administrative
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8,056,928 | 8,950,900 | 24,725,653 | 28,472,176 | ||||||||||||
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Total
Costs and Expenses
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20,415,940 | 22,736,654 | 62,006,884 | 71,748,220 | ||||||||||||
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Income
from operations
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469,588 | 1,124,153 | 2,722,763 | 4,343,683 | ||||||||||||
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Other
income (expense):
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||||||||||||||||
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Interest
income
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10,119 | 64,329 | 45,538 | 299,893 | ||||||||||||
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Interest
expense
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(62,195 | ) | (21,011 | ) | (113,129 | ) | (31,405 | ) | ||||||||
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Other
income (expense)
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76,657 | (211,550 | ) | 202,747 | (229,139 | ) | ||||||||||
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Income
before income taxes
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494,169 | 955,921 | 2,857,919 | 4,383,032 | ||||||||||||
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Provision
for income taxes
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170,000 | 420,000 | 1,112,000 | 1,752,000 | ||||||||||||
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Net
Income
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$ | 324,169 | $ | 535,921 | $ | 1,745,919 | $ | 2,631,032 | ||||||||
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Earnings
per common share - Basic
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$ | 0.03 | $ | 0.04 | $ | 0.13 | $ | 0.17 | ||||||||
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Weighted
average shares
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12,230,000 | 14,806,000 | 13,109,000 | 15,498,000 | ||||||||||||
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Earnings
per common share - Diluted
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$ | 0.03 | $ | 0.04 | $ | 0.13 | $ | 0.17 | ||||||||
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Weighted
average shares
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12,230,000 | 14,810,000 | 13,109,000 | 15,502,000 | ||||||||||||
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Cash
dividends declared per common share
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$ | — | $ | — | $ | 0.05 | $ | 0.05 | ||||||||
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Reliv
International, Inc. and Subsidiaries
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||||||||||||||||||||||||
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ADD
FOUR
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||||||||||||||||||||||||
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Net
sales by Market
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||||||||||||||||||||||||
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(in
thousands)
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||||||||||||||||||||||||
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Three
months ended September 30,
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Change
From
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|||||||||||||||||||||||
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2009
|
2008
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Prior
Year
|
||||||||||||||||||||||
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Amount
|
%
of sales
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Amount
|
%
of sales
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Amount
|
%
|
|||||||||||||||||||
|
United
States
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18,262 | 87.4 | % | 20,814 | 87.2 | % | (2,552 | ) | -12.3 | % | ||||||||||||||
|
Australia/New
Zealand
|
620 | 3.0 | % | 667 | 2.8 | % | (47 | ) | -7.0 | % | ||||||||||||||
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Canada
|
428 | 2.0 | % | 404 | 1.7 | % | 24 | 5.9 | % | |||||||||||||||
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Mexico
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392 | 1.9 | % | 389 | 1.6 | % | 3 | 0.8 | % | |||||||||||||||
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Europe
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314 | 1.5 | % | 322 | 1.4 | % | (8 | ) | -2.5 | % | ||||||||||||||
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Asia
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870 | 4.2 | % | 1,265 | 5.3 | % | (395 | ) | -31.2 | % | ||||||||||||||
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Consolidated
total
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20,886 | 100.0 | % | 23,861 | 100.0 | % | (2,975 | ) | -12.5 | % | ||||||||||||||
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Net
sales by Market
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||||||||||||||||||||||||
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(in
thousands)
|
||||||||||||||||||||||||
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Nine
months ended September 30,
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Change
From
|
|||||||||||||||||||||||
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2009
|
2008
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Prior
Year
|
||||||||||||||||||||||
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Amount
|
%
of sales
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Amount
|
%
of sales
|
Amount
|
%
|
|||||||||||||||||||
|
United
States
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57,281 | 88.5 | % | 65,934 | 86.6 | % | (8,653 | ) | -13.1 | % | ||||||||||||||
|
Australia/New
Zealand
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1,672 | 2.6 | % | 2,096 | 2.8 | % | (424 | ) | -20.2 | % | ||||||||||||||
|
Canada
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1,076 | 1.7 | % | 1,301 | 1.7 | % | (225 | ) | -17.3 | % | ||||||||||||||
|
Mexico
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1,018 | 1.6 | % | 1,269 | 1.7 | % | (251 | ) | -19.8 | % | ||||||||||||||
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Europe
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927 | 1.4 | % | 1,226 | 1.6 | % | (299 | ) | -24.4 | % | ||||||||||||||
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Asia
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2,756 | 4.2 | % | 4,266 | 5.6 | % | (1,510 | ) | -35.4 | % | ||||||||||||||
|
Consolidated
total
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64,730 | 100.0 | % | 76,092 | 100.0 | % | (11,362 | ) | -14.9 | % | ||||||||||||||
|
The
following table sets forth, as of September 30, 2009 and 2008, the number
of our active distributors and Master Affiliates and
above.
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The
total number of active distributors includes Master Affiliates and
above. We define an active distributor as one that enrolls as
a
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||||||||||||||||||||||||
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distributor
or renews its distributorship during the prior twelve months. Master
Affiliates and above are distributors that have attained
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||||||||||||||||||||||||
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the
highest level of discount and are eligible for royalties generated by
Master Affiliates and above in their downline
organization.
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||||||||||||||||||||||||
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Growth
in the number of active distributors and Master Affiliates and above is a
key factor in the growth of our business.
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||||||||||||||||||||||||
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Active
Distributors and Master Affiliates and above by Market
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||||||||||||||||||||||||
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As
of 9/30/2009
|
As
of 9/30/2008
|
Change
in %
|
||||||||||||||||||||||
|
Active
Distributors
|
Master
Affiliates
and
Above
|
Active
Distributors
|
Master
Affiliates
and
Above
|
Active
Distributors
|
Master
Affiliates
and
Above
|
|||||||||||||||||||
|
United
States
|
54,460 | 8,390 | 54,210 | 10,630 | 0.5 | % | -21.1 | % | ||||||||||||||||
|
Australia/New
Zealand
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2,490 | 190 | 2,480 | 230 | 0.4 | % | -17.4 | % | ||||||||||||||||
|
Canada
|
1,190 | 120 | 1,250 | 160 | -4.8 | % | -25.0 | % | ||||||||||||||||
|
Mexico
|
1,960 | 240 | 1,550 | 240 | 26.5 | % | 0.0 | % | ||||||||||||||||
|
Europe
|
1,110 | 160 | 1,190 | 190 | -6.7 | % | -15.8 | % | ||||||||||||||||
|
Asia
|
7,100 | 780 | 7,860 | 1,000 | -9.7 | % | -22.0 | % | ||||||||||||||||
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Consolidated
total
|
68,310 | 9,880 | 68,540 | 12,450 | -0.3 | % | -20.6 | % | ||||||||||||||||
**
30 **