Attached files

file filename
8-K - FORM 8-K - RELIV INTERNATIONAL INCv337196_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 2012

 

CHESTERFIELD, Missouri, March 6, 2013 – 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 2012.

 

Fourth-Quarter Results

Reliv reported net sales of $16.91 million for the fourth quarter of 2012, compared with sales of $16.89 million for the fourth quarter of 2011, an increase of 0.1 percent. U.S. sales declined by 3.2 percent for the quarter compared with the same quarter in 2011. International sales for the quarter increased 13.1 percent, led by significant growth in Europe, which reported an increase of 49.5 percent.

 

Reliv reported net income of $437,000, or $0.03 per diluted share, for the fourth quarter of 2012 compared with net income of $320,000, or $0.03 per diluted share, for the fourth quarter of 2011. Income from operations for the fourth quarter of 2012 was $611,000 compared with $471,000 in the same quarter of 2011.

 

Full-Year Results

Reliv reported net sales of $68.71 million for 2012 compared with net sales of $73.88 million in 2011. U.S. net sales decreased from $60.88 million to $53.80 million. Net sales in Reliv’s foreign markets for 2012 increased 14.7 percent compared with net sales for 2011. Net sales were particularly strong in Europe, where net sales increased by $2.73 million, or 72.7 percent. Growth in the European market in 2012 was driven by strong increases in new distributor enrollments and new Master Affiliate qualifications, along with the launch of Reliv NOW® with LunaRich® in October 2012.

 

Net income for 2012 was $1.36 million compared with $1.05 million in 2011. Diluted earnings per share were $0.11 in 2012 compared with $0.08 in 2011.

 

“The net sales increase in the fourth quarter of 2012 compared with the fourth quarter of 2011 marks the first quarterly year-over-year net sales increase in more than five years at Reliv,” said Robert L. Montgomery, chairman and chief executive officer of Reliv. “We believe that with continuing growth in Europe and initiatives underway worldwide it is the first of many to come.”

 

“Reliv Europe has recorded 13 straight quarters of year-over-year growth and continues to show strong momentum,” he added. “When compared to the previous year, the number of distributors in Europe increased 79.7 percent in 2012 after climbing 77.4 percent in 2011. We expect to officially open in France in the spring of 2013, our 16th country of operation. We expect France to provide continued opportunities, momentum and improved economies of scale.”

 

- MORE -

 

 
 

 

Reliv International Fourth-Quarter Financial Results

ADD ONE

 

“In the United States, Reliv expanded its exclusive LunaRich product line with the January 2013 introduction of LunaRich X™ (concentrated lunasin in capsule form). We also launched a new points-based LunaRich wellness system, which is an easy-to-understand way for our distributors to share LunaRich products and for customers to design their own LunaRich regimen. We believe this system, the first of its kind at Reliv, will help make the leading-edge science of lunasin easier to understand and make our LunaRich products easier to use,” Montgomery said.

 

“In coordination with our public relations agency, we developed an aggressive campaign to build awareness of lunasin and LunaRich,” he added. “LunaRich products have appeared on local TV and in newspapers across the country, and we now are targeting national mainstream media. We believe such exposure will lead to increased demand for our products.”

 

“On March 1, 2013, we implemented a new pricing structure. As the result of higher commodity and ingredient costs, we increased prices — our first in more than four years — however, we also increased servings per unit and cut shipping fees. The resulting price per serving is only pennies higher for most products, and we believe the reduced shipping will help eliminate a common point-of-sale objection,” Montgomery said.

 

“Our strategic objective to simplify our business and increase efficiency continues to produce results,” he added. Reliv reported a reduction in selling, general and administrative expenses of $175,000 for the fourth quarter of 2012 and $1.93 million for all of 2012 compared with the prior-year periods. Reliv had cash and cash equivalents of $5.80 million as of December 31, 2012, a decrease of $1.37 million from the balance as of December 31, 2011. Net cash generated from operating activities decreased to $2.47 million in 2012 from $2.79 million in 2011.

 

As of December 31, 2012, Reliv had 57,430 distributors – an increase of 0.7 percent from December 31, 2011 – of which 7,060 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, 
   2012   2011 
   (Unaudited)   (Audited) 
         
Assets          
Current assets:          
Cash and cash equivalents  $5,801,042   $7,174,213 
Accounts receivable, less allowances of          
$35,700 in 2012 and $70,300 in 2011   247,087    334,828 
Accounts due from employees and distributors   109,346    43,191 
Inventories   5,262,916    4,723,773 
Other current assets   1,070,301    1,136,376 
Total current assets   12,490,692    13,412,381 
           
Other assets   4,212,442    1,987,213 
Intangible assets, net   1,443,635    1,597,644 
           
Net property, plant and equipment   7,111,772    7,421,947 
           
Total assets  $25,258,541   $24,419,185 
           
           
           
Liabilities and stockholders’ equity          
           
Total current liabilities  $6,614,631   $6,110,449 
Long-term debt, less current maturities   2,401,312    3,566,175 
Other non-current liabilities   660,728    256,710 
           
Total stockholders’ equity   15,581,870    14,485,851 
           
Total liabilities and stockholders’ equity  $25,258,541   $24,419,185 

 

** MORE **

 

 
 

 

Reliv International, Inc. and Subsidiaries            
ADD THREE                
                 
Consolidated Statements of Operations                
                 
   Three months ended December 31,   Year ended December 31, 
   2012   2011   2012   2011 
   (Unaudited)   (Unaudited)   (Unaudited)   (Audited) 
                 
Product sales  $15,016,025   $15,007,686   $61,097,180   $65,701,343 
Handling & freight income   1,892,979    1,877,845    7,612,709    8,178,557 
                     
Net sales   16,909,004    16,885,531    68,709,889    73,879,900 
                     
Costs and expenses:                    
Cost of products sold   3,511,453    3,468,769    13,685,581    15,105,416 
Distributor royalties and commissions   6,326,940    6,312,062    25,839,621    27,629,167 
Selling, general and administrative   6,459,156    6,634,021    27,472,807    29,400,219 
                     
Total costs and expenses   16,297,549    16,414,852    66,998,009    72,134,802 
                     
Income from operations   611,455    470,679    1,711,880    1,745,098 
                     
Other income (expense):                    
Interest income   42,557    7,662    129,415    40,508 
Interest expense   (17,164)   (33,618)   (99,502)   (138,967)
Other income   29,663    10,635    406,176    24,518 
                     
Income before income taxes   666,511    455,358    2,147,969    1,671,157 
Provision for income taxes   230,000    135,000    789,000    623,000 
                     
Net income  $436,511   $320,358   $1,358,969   $1,048,157 
                     
Earnings per common share - Basic  $0.03   $0.03   $0.11   $0.08 
Weighted average shares   12,504,000    12,409,000    12,500,000    12,429,000 
                     
Earnings per common share - Diluted  $0.03   $0.03   $0.11   $0.08 
Weighted average shares   12,643,000    12,410,000    12,654,000    12,429,000 
                     
Cash dividends declared per common share  $0.01   $0.01   $0.03   $0.04 

 

** MORE **

 

 
 

 

Reliv International, Inc. and Subsidiaries                
ADD FOUR                        
                         
Net sales by Market            
(in thousands)                        
   Three months ended December 31,   Change From Prior Year 
   2012   2011         
   Amount   % of sales   Amount   % of sales   Amount   % 
                         
United States   13,015    77.0%   13,444    79.6%   (429)   -3.2%
Australia/New Zealand   629    3.7%   597    3.5%   32    5.4%
Canada   491    2.9%   470    2.8%   21    4.5%
Mexico   224    1.3%   219    1.3%   5    2.3%
Europe   1,757    10.4%   1,175    7.0%   582    49.5%
Asia   793    4.7%   981    5.8%   (188)   -19.2%
                               
Consolidated total   16,909    100.0%   16,886    100.0%   23    0.1%

 

Net sales by Market                        
(in thousands)                        
   Year ended December 31,   Change From Prior Year 
   2012   2011         
   Amount   % of sales   Amount   % of sales   Amount   % 
                         
United States   53,801    78.3%   60,884    82.4%   (7,083)   -11.6%
Australia/New Zealand   2,111    3.1%   2,374    3.2%   (263)   -11.1%
Canada   1,861    2.7%   2,139    2.9%   (278)   -13.0%
Mexico   1,056    1.5%   1,201    1.6%   (145)   -12.1%
Europe   6,481    9.4%   3,753    5.1%   2,728    72.7%
Asia   3,400    5.0%   3,529    4.8%   (129)   -3.7%
                               
Consolidated total   68,710    100.0%   73,880    100.0%   (5,170)   -7.0%

 

The following table sets forth, as of December 31, 2012 and 2011, 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 12/31/2012   As of 12/31/2011   Change From Prior Year 
   Active Distributors   Master Affiliates and Above   Active Distributors   Master Affiliates and Above   Active Distributors   Master Affiliates and Above 
                 
                         
United States   40,470    5,150    43,280    6,080    -6.5%   -15.3%
Australia/New Zealand   1,790    190    1,950    170    -8.2%   11.8%
Canada   1,280    230    1,300    220    -1.5%   4.5%
Mexico   1,680    150    1,260    220    33.3%   -31.8%
Europe   6,920    740    3,850    430    79.7%   72.1%
Asia   5,290    600    5,370    550    -1.5%   9.1%
                               
Consolidated total   57,430    7,060    57,010    7,670    0.7%   -8.0%

 

** 30 **