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| 8-K - 8-K - RELIV INTERNATIONAL INC | v304173_8k.htm |
EXHIBIT 99
NEWS RELEASE
For more information, contact:
| Steve Albright | or: | Fred Nielson | |
| Chief Financial Officer | Investor Relations | ||
| (636) 733-1305 | (636) 733-1314 |
FOR IMMEDIATE DISTRIBUTION
Reliv International Reports Fourth-Quarter
and Full-Year Financial Results for 2011
CHESTERFIELD, Missouri, February 29, 2012 – Reliv International, Inc. (NASDAQ:RELV), a maker of nutritional supplements that promote optimal health, today reported its financial results for the fourth quarter and full year of 2011.
Fourth-Quarter Results
Reliv reported net sales of $16.9 million for the fourth quarter of 2011, compared with sales of $18.5 million for the fourth quarter of 2010. U.S. sales declined by 13.4 percent for the quarter compared with the same quarter in 2010. International sales for the quarter increased 14.4 percent, led by significant growth in Europe, which reported an increase of 83.9 percent.
Reliv reported net income of $320,000, or $0.03 per diluted share, for the fourth quarter of 2011 compared with net income of $559,000, or $0.05 per diluted share, for the fourth quarter of 2010. Income from operations for the fourth quarter of 2011 was $471,000 compared with $827,000 in the same quarter of 2010.
Full-Year Results
Reliv reported net sales of $73.9 million for 2011 compared with net sales of $78.7 million in 2010. U.S. net sales decreased from $66.9 million to $60.9 million. Net sales in Reliv’s foreign markets for 2011 increased 9.7 percent compared with net sales for 2010. Net sales were particularly strong in Europe, where net sales increased 80.4 percent. Growth in the European market in 2011 was driven by strong increases in new distributor enrollments.
Net income for 2011 was $1.0 million compared with $1.7 million in 2010. Diluted earnings per share were $0.08 in 2011 compared with $0.14 in 2010.
“The financial highlight of 2011 was the increase in sales in Europe,” said Robert L. Montgomery, chairman, president and chief executive officer of Reliv. “Our European market set numerous monthly sales records in 2011 after posting double digit growth in 2010. This sustained growth is something we plan to build on in 2012.”
“In the United States, we have turned to innovation to jump start sales. The introduction of healthy energy shot 24K™ followed with the innovative 24K VIP program, a customer referral and lead generation initiative, I believe positions us to expand our footprint in the lucrative energy drink market,” he said.
- MORE -
Reliv International Fourth-Quarter Financial Results
ADD ONE
“In 2011 Reliv became the first corporate partner of the Missouri Plant Science Center. That partnership has produced LunaRich™, our first Reliv-exclusive nutritional ingredient,” Montgomery said. “LunaRich is a unique soy powder, which in comparison to the industry standard, contains five to ten times the amount of soy’s key bioactive component.”
“We introduced Reliv Now® as the first product to contain LunaRich this February at the 2012 Reliv National Conference in Reno,” he said. “Backed by clinical studies, LunaRich has energized our distributor base and given us a new competitive edge in the supplement market. We plan to add LunaRich to additional Reliv products in the coming months.”
“In Reno we also announced that GlucAffect®, Reliv’s cutting-edge blood sugar management formula, became the sixth Reliv product to earn a patent,” Montgomery said.
“As we work to regain sales momentum in the United States, we are focusing on reducing costs and maintaining our strong balance sheet,” he added. Reliv reported a reduction in selling, general and administrative expenses of $532,000 for the fourth quarter of 2011 and $1.25 million for all of 2011 compared with the prior-year periods. Reliv had cash and cash equivalents of $7.2 million as of December 31, 2011, an increase of $843,000 from the balance as of December 31, 2010. Net cash generated from operating activities increased to $2.8 million in 2011 from $2.2 million in 2010.
As of December 31, 2011, Reliv had 57,010 distributors – a decline of 6.1 percent from December 31, 2010 – of which 7,670 are Master Affiliate level and above. Master Affiliate is the level at which distributors are eligible to earn generation royalties.
About Reliv International, Inc.
Reliv International, Inc., based in Chesterfield, Missouri, produces nutritional supplements that promote optimal nutrition
along with premium skincare products. Reliv supplements address essential nutrition, weight loss, athletic performance, digestive
health, women's health, anti-aging and healthy energy. The company 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 –
| Reliv International, Inc. and Subsidiaries | ||||||||
| ADD TWO | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| December 31, | December 31, | |||||||
| 2011 | 2010 | |||||||
| (Unaudited) | (Audited) | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 7,174,213 | $ | 6,331,038 | ||||
| Accounts receivable, less allowances of | ||||||||
| $70,300 in 2011 and $67,100 in 2010 | 334,828 | 291,405 | ||||||
| Accounts due from employees and distributors | 43,191 | 55,854 | ||||||
| Inventories | 4,723,773 | 5,650,790 | ||||||
| Other current assets | 1,136,376 | 916,239 | ||||||
| Total current assets | 13,412,381 | 13,245,326 | ||||||
| Other assets | 1,987,213 | 1,867,976 | ||||||
| Intangible assets, net | 1,597,644 | 1,785,987 | ||||||
| Net property, plant and equipment | 7,421,947 | 7,944,412 | ||||||
| Total assets | $ | 24,419,185 | $ | 24,843,701 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Total current liabilities | $ | 6,110,449 | $ | 6,387,164 | ||||
| Long-term debt, less current maturities | 3,566,175 | 4,150,770 | ||||||
| Other non-current liabilities | 256,710 | 375,244 | ||||||
| Total stockholders’ equity | 14,485,851 | 13,930,523 | ||||||
| Total liabilities and stockholders’ equity | $ | 24,419,185 | $ | 24,843,701 | ||||
** MORE **
| Reliv International, Inc. and Subsidiaries | ||||||||||||||||
| ADD THREE | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| Three months ended December 31, | Year ended December 31, | |||||||||||||||
| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Audited) | |||||||||||||
| Product sales | $ | 15,007,686 | $ | 16,474,506 | $ | 65,701,343 | $ | 70,033,580 | ||||||||
| Handling & freight income | 1,877,845 | 2,052,935 | 8,178,557 | 8,714,808 | ||||||||||||
| Net sales | 16,885,531 | 18,527,441 | 73,879,900 | 78,748,388 | ||||||||||||
| Costs and expenses: | ||||||||||||||||
| Cost of products sold | 3,468,769 | 3,645,518 | 15,105,416 | 15,738,885 | ||||||||||||
| Distributor royalties and commissions | 6,312,062 | 6,889,546 | 27,629,167 | 29,450,171 | ||||||||||||
| Selling, general and administrative | 6,634,021 | 7,165,656 | 29,400,219 | 30,652,045 | ||||||||||||
| Total costs and expenses | 16,414,852 | 17,700,720 | 72,134,802 | 75,841,101 | ||||||||||||
| Income from operations | 470,679 | 826,721 | 1,745,098 | 2,907,287 | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Interest income | 7,662 | 12,410 | 40,508 | 47,744 | ||||||||||||
| Interest expense | (33,618 | ) | (46,649 | ) | (138,967 | ) | (205,985 | ) | ||||||||
| Other income | 10,635 | 54,518 | 24,518 | 76,110 | ||||||||||||
| Income before income taxes | 455,358 | 847,000 | 1,671,157 | 2,825,156 | ||||||||||||
| Provision for income taxes | 135,000 | 288,000 | 623,000 | 1,142,000 | ||||||||||||
| Net income | $ | 320,358 | $ | 559,000 | $ | 1,048,157 | $ | 1,683,156 | ||||||||
| Earnings per common share - Basic | $ | 0.03 | $ | 0.05 | $ | 0.08 | $ | 0.14 | ||||||||
| Weighted average shares | 12,409,000 | 12,389,000 | 12,429,000 | 12,382,000 | ||||||||||||
| Earnings per common share - Diluted | $ | 0.03 | $ | 0.05 | $ | 0.08 | $ | 0.14 | ||||||||
| Weighted average shares | 12,410,000 | 12,389,000 | 12,429,000 | 12,383,000 | ||||||||||||
| Cash dividends declared per common share | $ | 0.01 | $ | 0.02 | $ | 0.04 | $ | 0.04 | ||||||||
** MORE **
| Reliv International, Inc. and Subsidiaries | ||||||||||||||||||||||||
| ADD FOUR | ||||||||||||||||||||||||
| Net sales by Market | ||||||||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| Three months ended December 31, | Change From | |||||||||||||||||||||||
| 2011 | 2010 | Prior Year | ||||||||||||||||||||||
| Amount | % of sales | Amount | % of sales | Amount | % | |||||||||||||||||||
| United States | 13,444 | 79.6 | % | 15,518 | 83.8 | % | (2,074 | ) | -13.4 | % | ||||||||||||||
| Australia/New Zealand | 597 | 3.5 | % | 624 | 3.4 | % | (27 | ) | -4.3 | % | ||||||||||||||
| Canada | 470 | 2.8 | % | 525 | 2.8 | % | (55 | ) | -10.5 | % | ||||||||||||||
| Mexico | 219 | 1.3 | % | 328 | 1.8 | % | (109 | ) | -33.2 | % | ||||||||||||||
| Europe | 1,175 | 7.0 | % | 639 | 3.4 | % | 536 | 83.9 | % | |||||||||||||||
| Asia | 981 | 5.8 | % | 893 | 4.8 | % | 88 | 9.9 | % | |||||||||||||||
| Consolidated total | 16,886 | 100.0 | % | 18,527 | 100.0 | % | (1,641 | ) | -8.9 | % | ||||||||||||||
| Net sales by Market | ||||||||||||||||||||||||
| (in thousands) |
| Year ended December 31, | Change From | |||||||||||||||||||||||
| 2011 | 2010 | Prior Year | ||||||||||||||||||||||
| Amount | % of sales | Amount | % of sales | Amount | % | |||||||||||||||||||
| United States | 60,884 | 82.4 | % | 66,896 | 85.0 | % | (6,012 | ) | -9.0 | % | ||||||||||||||
| Australia/New Zealand | 2,374 | 3.2 | % | 2,548 | 3.2 | % | (174 | ) | -6.8 | % | ||||||||||||||
| Canada | 2,139 | 2.9 | % | 2,159 | 2.8 | % | (20 | ) | -0.9 | % | ||||||||||||||
| Mexico | 1,201 | 1.6 | % | 1,435 | 1.8 | % | (234 | ) | -16.3 | % | ||||||||||||||
| Europe | 3,753 | 5.1 | % | 2,080 | 2.6 | % | 1,673 | 80.4 | % | |||||||||||||||
| Asia | 3,529 | 4.8 | % | 3,630 | 4.6 | % | (101 | ) | -2.8 | % | ||||||||||||||
| Consolidated total | 73,880 | 100.0 | % | 78,748 | 100.0 | % | (4,868 | ) | -6.2 | % | ||||||||||||||
| The following table sets forth, as of December 31, 2011 and 2010, 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 | ||||||||||||||||||||||||
| Change From | ||||||||||||||||||||||||
| As of 12/31/2011 | As of 12/31/2010 | Prior Year | ||||||||||||||||||||||
| Active Distributors | Master Affiliates and Above | Active Distributors | Master Affiliates and Above | Active Distributors | Master Affiliates and Above | |||||||||||||||||||
| United States | $ | 43,280 | 6,080 | 47,450 | 6,990 | -8.8 | % | -13.0 | % | |||||||||||||||
| Australia/New Zealand | 1,950 | 170 | 2,210 | 190 | -11.8 | % | -10.5 | % | ||||||||||||||||
| Canada | 1,300 | 220 | 1,380 | 200 | -5.8 | % | 10.0 | % | ||||||||||||||||
| Mexico | 1,260 | 220 | 1,850 | 300 | -31.9 | % | -26.7 | % | ||||||||||||||||
| Europe | 3,850 | 430 | 2,170 | 300 | 77.4 | % | 43.3 | % | ||||||||||||||||
| Asia | 5,370 | 550 | 5,680 | 620 | -5.5 | % | -11.3 | % | ||||||||||||||||
| Consolidated total | 57,010 | 7,670 | 60,740 | 8,600 | -6.1 | % | -10.8 | % | ||||||||||||||||
**30 **