Attached files
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| 8-K - RELIV INTERNATIONAL INC | v230622_8k.htm |
EXHIBIT 99
NEWS RELEASE
For more information, contact:
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Steve Albright
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or:
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Fred Nielson
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Barry Murov
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Chief Financial Officer
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Investor Relations
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Media Relations
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(636) 733-1305
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(636) 733-1314
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(636) 733-1303
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FOR IMMEDIATE DISTRIBUTION
Reliv International Reports Second-Quarter Financial Results
CHESTERFIELD, Mo., Aug. 3, 2011 – Reliv International, Inc. (NASDAQ:RELV), a maker of nutritional supplements that promote optimal health, today reported its financial results for the second quarter of 2011.
Net sales for the quarter were $18.0 million, a 4.4 percent decrease from the second quarter last year. Net U.S. sales totaled $14.8 million, representing a 7.0 percent decline from the same quarter in 2010. Net sales outside of the United States increased 10.1 percent to $3.2 million, led by a 47.3 percent increase in European net sales, compared to the second quarter 2010.
Net income for the second quarter was $69,000 or $0.01 per diluted share, compared to $206,000 or $0.02 per diluted share in the 2010 second quarter. Earnings declined due to the decrease in U.S. net sales coupled with increases in several of our components of cost of goods sold. We experienced increases in production costs and higher order shipping costs due to general rate increases and higher fuel surcharges.
“The high unemployment rate, reduced discretionary income due to higher energy costs and declining consumer sentiment combined to hinder our efforts to increase sales in the United States,” Robert L. Montgomery, chairman, president and chief executive officer.
“To combat those trends, we have a number of activities that we believe will lead to higher sales by the fourth quarter of 2011 or early 2012,” Montgomery said. “We have powerful sales promotions which we plan to launch in the second half of the year, for example. We have an exciting international conference planned for later this month. We will continue to implement the new branding initiative we launched in February. Our R&D team has promising new products in the developmental stage.”
Net sales for the first six months of 2011 were $39.7 million compared to $41.5 million in the same period in 2010. In the U.S., net sales were down 5.9 percent; international net sales increased 3.8 percent in the first half of 2011 compared to the first half of 2010. Our European operations accounted for most of the increase in net sales outside of the United States.
- MORE -
Reliv International Second-Quarter Financial Results
ADD ONE
Net income for the first six months was $679,000, or $0.05 per diluted share, compared to $952,000 or $0.08 per diluted share in the same period in 2010.
New distributor enrollments in the second quarter declined 10 percent from the number of enrollments in the same quarter last year. Reliv’s total distributor count was 58,450 as of June 30, 2011, down 8.2 percent from the same date last year. There was a significant increase, however, in the number of customers who became distributors. “We view this migration, from a customer to a distributor, as movement in the right direction, and we are looking at ways to encourage more customers to make this choice,” Montgomery said.
“We continue to work with our field to build momentum,” Montgomery said. “We are investing in areas we believe will increase sales. At the same time, we are carefully reviewing our U.S. and international operations for potential improvements and restructuring opportunities.”
Additional financial results
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Net cash generated from operating activities totaled $1.8 million, equal to the amount we reported in the second quarter of 2010.
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Reliv had cash and cash equivalents of $7.0 million as of June 30, 2011, a 7.3 percent increase over the same date in 2010.
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Using an existing stock buyback authorization, Reliv bought back 27,134 shares at an average share price of $2.02 per share during the second quarter.
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About Reliv
Reliv International, Inc., based in Chesterfield, Mo., makes nutritional supplements that promote optimal health. Reliv supplements address essential nutrition, weight loss, athletic performance, digestive health, women’s health, anti-aging and energy and mental focus. The company also markets premium personal care products through its Relivables line. Reliv sells its products through an international network marketing system of independent distributors in 15 countries. Learn more about Reliv at www.reliv.com, or on Facebook, Twitter or YouTube.
Statements made in this news release that are not historical facts are “forward-looking” statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements may include, but are not limited to, statements containing words such as “may,” “should,” “could,” “would,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “continue” or similar expressions. Factors that could cause actual results to differ are identified in the public filings made by Reliv with the Securities and Exchange Commission. More information on factors that could affect Reliv’s business and financial results are included in its public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which are available on the Company’s web site, www.reliv.com.
--FINANCIAL HIGHLIGHTS FOLLOW –
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Reliv International, Inc. and Subsidiaries
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ADD THREE
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Condensed Consolidated Balance Sheets
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June 30
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December 31
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2011
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2010
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(Unaudited)
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Assets
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Current Assets:
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Cash and cash equivalents
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$ | 7,015,049 | $ | 6,331,038 | ||||||||||||
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Accounts receivable, less allowances of
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$68,600 in 2011 and $67,100 in 2010
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293,379 | 291,405 | ||||||||||||||
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Accounts due from employees and distributors
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39,052 | 55,854 | ||||||||||||||
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Inventories
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5,381,842 | 5,650,790 | ||||||||||||||
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Other current assets
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1,424,942 | 916,239 | ||||||||||||||
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Total current assets
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14,154,264 | 13,245,326 | ||||||||||||||
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Other assets
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2,080,262 | 1,867,976 | ||||||||||||||
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Intangible assets, net
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1,683,232 | 1,785,987 | ||||||||||||||
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Net property, plant and equipment
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7,649,634 | 7,944,412 | ||||||||||||||
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Total Assets
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$ | 25,567,392 | $ | 24,843,701 | ||||||||||||
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Liabilities and Stockholders' Equity
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Total current liabilities
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$ | 7,166,375 | $ | 6,387,164 | ||||||||||||
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Long-term debt, less current maturities
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3,863,543 | 4,150,770 | ||||||||||||||
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Other non-current liabilities
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305,043 | 375,244 | ||||||||||||||
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Stockholders' equity
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14,232,431 | 13,930,523 | ||||||||||||||
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Total Liabilities and Stockholders' Equity
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$ | 25,567,392 | $ | 24,843,701 | ||||||||||||
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Consolidated Statements of Income
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Three months ended June 30
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Six months ended June 30
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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Product sales
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$ | 15,984,382 | $ | 16,689,178 | $ | 35,311,325 | $ | 36,946,859 | ||||||||
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Handling & freight income
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2,013,540 | 2,131,453 | 4,373,451 | 4,601,024 | ||||||||||||
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Net Sales
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17,997,922 | 18,820,631 | 39,684,776 | 41,547,883 | ||||||||||||
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Costs and expenses:
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Cost of products sold
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3,815,181 | 3,716,495 | 8,035,531 | 8,272,877 | ||||||||||||
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Distributor royalties and commissions
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6,746,008 | 7,069,332 | 14,866,950 | 15,549,408 | ||||||||||||
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Selling, general and administrative
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7,407,498 | 7,540,728 | 15,676,366 | 16,084,179 | ||||||||||||
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Total Costs and Expenses
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17,968,687 | 18,326,555 | 38,578,847 | 39,906,464 | ||||||||||||
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Income from operations
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29,235 | 494,076 | 1,105,929 | 1,641,419 | ||||||||||||
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Other income (expense):
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Interest income
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10,222 | 12,847 | 25,801 | 22,373 | ||||||||||||
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Interest expense
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(35,801 | ) | (54,775 | ) | (72,424 | ) | (106,451 | ) | ||||||||
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Other income (expense)
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83,185 | (36,128 | ) | 14,335 | 21,155 | |||||||||||
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Income before income taxes
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86,841 | 416,020 | 1,073,641 | 1,578,496 | ||||||||||||
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Provision for income taxes
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18,000 | 210,000 | 395,000 | 626,000 | ||||||||||||
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Net Income
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$ | 68,841 | $ | 206,020 | $ | 678,641 | $ | 952,496 | ||||||||
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Earnings per common share - Basic
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$ | 0.01 | $ | 0.02 | $ | 0.05 | $ | 0.08 | ||||||||
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Weighted average shares
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12,442,000 | 12,380,000 | 12,446,000 | 12,380,000 | ||||||||||||
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Earnings per common share - Diluted
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$ | 0.01 | $ | 0.02 | $ | 0.05 | $ | 0.08 | ||||||||
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Weighted average shares
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12,444,000 | 12,380,000 | 12,449,000 | 12,380,000 | ||||||||||||
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Cash dividends declared per common share
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$ | 0.03 | $ | 0.02 | $ | 0.03 | $ | 0.02 | ||||||||
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Reliv International, Inc. and Subsidiaries
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ADD FOUR
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Net sales by Market
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(in thousands)
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Three months ended June 30,
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Change From Prior Year
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2011
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2010
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Amount
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% of Net Sales
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Amount
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% of Net Sales
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Amount
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%
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United States
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$ | 14,841 | 82.5 | % | $ | 15,954 | 84.7 | % | $ | (1,113 | ) | -7.0 | % | |||||||||||
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Australia/New Zealand
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596 | 3.3 | % | 541 | 2.9 | % | 55 | 10.2 | % | |||||||||||||||
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Canada
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577 | 3.2 | % | 542 | 2.9 | % | 35 | 6.5 | % | |||||||||||||||
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Mexico
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354 | 2.0 | % | 394 | 2.1 | % | (40 | ) | -10.2 | % | ||||||||||||||
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Europe
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856 | 4.7 | % | 581 | 3.1 | % | 275 | 47.3 | % | |||||||||||||||
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Asia
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774 | 4.3 | % | 809 | 4.3 | % | (35 | ) | -4.3 | % | ||||||||||||||
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Consolidated total
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$ | 17,998 | 100.0 | % | $ | 18,821 | 100.0 | % | $ | (823 | ) | -4.4 | % | |||||||||||
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Net sales by Market
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(in thousands)
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Six months ended June 30,
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Change From Prior Year
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| 2011 | 2010 | |||||||||||||||||||||||
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Amount
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% of Net Sales
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Amount
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% of Net Sales
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Amount
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%
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United States
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$ | 33,306 | 83.9 | % | $ | 35,403 | 85.2 | % | $ | (2,097 | ) | -5.9 | % | |||||||||||
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Australia/New Zealand
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1,215 | 3.0 | % | 1,268 | 3.1 | % | (53 | ) | -4.2 | % | ||||||||||||||
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Canada
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1,175 | 3.0 | % | 1,129 | 2.7 | % | 46 | 4.1 | % | |||||||||||||||
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Mexico
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702 | 1.8 | % | 787 | 1.9 | % | (85 | ) | -10.8 | % | ||||||||||||||
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Europe
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1,579 | 4.0 | % | 1,001 | 2.4 | % | 578 | 57.7 | % | |||||||||||||||
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Asia
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1,708 | 4.3 | % | 1,960 | 4.7 | % | (252 | ) | -12.9 | % | ||||||||||||||
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Consolidated total
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$ | 39,685 | 100.0 | % | $ | 41,548 | 100.0 | % | $ | (1,863 | ) | -4.5 | % | |||||||||||
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The following table sets forth, as of June 30, 2011 and 2010, 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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distributor or renews its distributorship during the prior twelve months. Master Affiliates and above are distributors that have attained
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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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Growth in the number of active distributors and Master Affiliates and above is a key factor in continuing the growth of our business.
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Active Distributors and Master Affiliates and above by Market
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As of 6/30/2011
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As of 6/30/2010
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Change in %
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Total
Active Distributors
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Master
Affiliates
and Above
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Total
Active Distributors
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Master
Affiliates
and Above
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Total
Active Distributors
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Master
Affiliates
and Above
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United States
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45,880 | 5,680 | 49,630 | 6,430 | -7.6 | % | -11.7 | % | ||||||||||||||||
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Australia/New Zealand
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2,120 | 150 | 2,520 | 190 | -15.9 | % | -21.1 | % | ||||||||||||||||
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Canada
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1,360 | 190 | 1,360 | 160 | 0.0 | % | 18.8 | % | ||||||||||||||||
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Mexico
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1,430 | 220 | 2,210 | 310 | -35.3 | % | -29.0 | % | ||||||||||||||||
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Europe
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2,860 | 280 | 1,630 | 230 | 75.5 | % | 21.7 | % | ||||||||||||||||
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Asia
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4,800 | 440 | 6,310 | 610 | -23.9 | % | -27.9 | % | ||||||||||||||||
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Consolidated total
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58,450 | 6,960 | 63,660 | 7,930 | -8.2 | % | -12.2 | % | ||||||||||||||||
** 30 **