Fourth-quarter sales rise 4 percent, earnings increase nearly 12 percent
Compared to fourth-quarter 2005 results
CHESTERFIELD, Mo., Feb. 28 /PRNewswire-FirstCall/ -- Reliv
International, Inc. (Nasdaq: RELV), a developer, manufacturer and marketer
of proprietary nutritional supplements, today reported record net sales and
earnings for 2006. Net income increased 5 percent from $7.5 million to $7.9
million, and diluted earnings per share rose 2 percent, from $0.46 to $0.47
for the year.
Net sales were $117.5 million, a 3.4 percent increase over 2005 net
sales. U.S. sales rose 3.2 percent and international sales increased 6.1
percent in 2006 compared to 2005.
For the fourth quarter, net sales were $28.6 million, compared to $27.5
million in the fourth quarter of 2005, an increase of 4.2 percent.
Fourth-quarter net income rose 11.7 percent to $2.0 million from $1.8
million; on a diluted per share basis, earnings rose to $0.12 from $0.11
compared to the fourth quarter of 2005.
"Our proprietary nutritional supplements, outstanding business
opportunity and a disciplined system to help distributors expand their
businesses led us to improved performance in 2006, and we believe that
they'll lead to further growth in 2007," said Robert L. Montgomery,
chairman, chief executive officer and president of Reliv.
"I'm pleased with the growth in 2006, but our goal is to return to
double-digit growth in both net sales and earnings," Montgomery said. "A
promising development in the fourth quarter was the increase in new
distributor signups," he added.
Worldwide, new distributor signups in the fourth quarter increased 3
percent compared to the same quarter of 2005. Signups in the U.S. also
increased in the fourth quarter. Both the Australia/New Zealand and United
Kingdom/Ireland regions reported increased sponsorships for the year.
For the full year, however, Reliv's distributor count was flat compared
to year-end 2005 with 64,960 distributors, while the total number of Master
Affiliates rose to 18,370, a 3 percent increase compared to the 2005
figure.
"I see several positive factors for Reliv as we enter 2007," Montgomery
said. "First, early indications are that the momentum in new signups from
the fourth quarter seems to be continuing into the first quarter of 2007.
Second, sales of our Slimplicity Weight Loss System have been encouraging
since its launch in early February," he said.
"A third factor is our strengthening international sales," Montgomery
said. "In the fourth quarter of 2006, Reliv's net sales in non-U.S. markets
rose approximately 15 percent compared to the fourth quarter of 2005, with
all markets reporting an increase in net sales," he said.
"Continued growth in those markets is important to maintain Reliv's
positioning in the wellness and direct selling industries, both of which
are expanding globally," Montgomery said.
Reliv will host a conference call to discuss fourth-quarter and
full-year 2006 earnings with investors at 1:00 p.m. Eastern Time on Feb.
28, 2007. The dial-in number for investors is 866-271-6130. The participant
passcode is 20333285. To register, please call in 15 minutes prior to start
of the call. A replay of this call will be available for one week by
telephone from 3:00 p.m. Eastern by calling 888-286-8010 and using the
passcode 46226584. 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/investor. 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.
Reliv International, Inc., based in suburban St. Louis, Mo., develops,
manufactures and markets a proprietary line of nutritional supplements
addressing basic nutrition, specific wellness needs, weight management and
sports nutrition. Reliv sells its products through an international network
marketing system of approximately 65,000 independent distributors.
Additional information about Reliv International, Inc. can be obtained on
the Web at http://www.reliv.com.
Statements made in this 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
Reliv's web site, http://www.reliv.com.
-- FINANCIAL HIGHLIGHTS FOLLOW -
Condensed Consolidated Balance Sheets
December 31, December 31,
2006 2005
(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents $9,332,810 $5,653,594
Short-term investments 7,864,000 -
Accounts and notes receivable, less
allowances of $6,200 in 2006 and
$39,700 in 2005 669,379 775,623
Accounts due from employees and
distributors 223,246 152,760
Inventories 4,778,221 5,584,456
Other current assets 1,977,522 1,692,568
Total current assets 24,845,178 13,859,001
Other assets 2,639,537 1,626,330
Accounts due from employees and
distributors 362,959 355,651
Net property, plant and equipment 9,434,546 10,140,441
Total assets $37,282,220 $25,981,423
Liabilities and stockholders' equity
Total current liabilities $8,615,256 $9,895,260
Long-term debt, less current
maturities - 2,211,065
Other non-current liabilities 933,113 1,310,270
Total stockholders' equity 27,733,851 12,564,828
Total liabilities and stockholders'
equity $37,282,220 $25,981,423
Consolidated Statements of Operations
Three months ended December 31, Year ended December 31,
2006 2005 2006 2005
(Unaudited) (Unaudited) (Unaudited) (Audited)
Product sales $25,685,242 $24,629,035 $105,497,420 $102,045,383
Handling & freight
income 2,958,093 2,855,514 11,969,737 11,519,781
Net sales 28,643,335 27,484,549 117,467,157 113,565,164
Costs and expenses:
Cost of products
sold 4,763,607 4,735,786 19,519,904 19,264,347
Distributor
royalties and
commissions 11,419,767 10,971,521 47,127,026 45,479,062
Selling, general and
administrative 9,553,099 8,729,059 38,716,529 36,348,526
Total costs and
expenses 25,736,473 24,436,366 105,363,459 101,091,935
Income from
operations 2,906,862 3,048,183 12,103,698 12,473,229
Other income (expense):
Interest income 212,475 48,290 692,595 238,473
Interest expense (2,728) (50,886) (50,156) (313,329)
Other income 74,727 127,230 256,966 101,043
Income before income
taxes 3,191,336 3,172,817 13,003,103 12,499,416
Provision for income
taxes 1,168,000 1,362,000 5,105,000 4,978,000
Net income $2,023,336 $1,810,817 $7,898,103 $7,521,416
Earnings per common
share - Basic $0.12 $0.11 $0.48 $0.47
Weighted average
shares 16,686,000 15,580,000 16,465,000 15,885,000
Earnings per common
share - Diluted $0.12 $0.11 $0.47 $0.46
Weighted average
shares 16,812,000 15,901,000 16,727,000 16,388,000
Cash dividends
declared per common
share $0.050 $0.040 $0.100 $0.075
Net sales by Market
(in thousands)
Three months ended December 31, Change From
2006 2005 Prior Year
Amount % of sales Amount % of sales Amount %
United States 25,408 88.7% 24,669 89.8% 739 3.0%
Australia/New Zealand 695 2.4% 649 2.4% 46 7.1%
Canada 403 1.4% 377 1.4% 26 6.9%
Mexico 423 1.5% 370 1.3% 53 14.3%
United Kingdom/Ireland 320 1.1% 205 0.7% 115 56.1%
Philippines 595 2.1% 522 1.9% 73 14.0%
Malaysia/Singapore 508 1.8% 491 1.8% 17 3.5%
Germany 291 1.0% 202 0.7% 89 44.1%
Consolidated Total 28,643 100.0% 27,485 100.0% 1,158 4.2%
Net sales by Market
(in thousands)
Year ended December 31, Change From
2006 2005 Prior Year
Amount % of sales Amount % of sales Amount %
United States 105,784 90.0% 102,549 90.3% 3,235 3.2%
Australia/New Zealand 2,550 2.2% 2,215 2.0% 335 15.1%
Canada 1,638 1.4% 1,668 1.5% (30) -1.8%
Mexico 1,433 1.2% 1,608 1.4% (175) -10.9%
United Kingdom/Ireland 1,235 1.1% 846 0.7% 389 46.0%
Philippines 2,198 1.9% 2,328 2.0% (130) -5.6%
Malaysia/Singapore 1,805 1.5% 2,031 1.8% (226) -11.1%
Germany 824 0.7% 320 0.3% 504 157.5%
Consolidated Total 117,467 100.0% 113,565 100.0% 3,902 3.4%
The following table sets forth, as of December 31, 2006 and 2005, 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 12/31/2006 As of 12/31/2005 Change in %
Master Master Master
Affiliates Affiliates Affiliates
Active and Active and Active and
Distributors Above Distributors Above Distributors Above
United States 52,880 16,580 52,040 15,840 1.6% 4.7%
Australia
/New Zealand 2,460 300 2,410 250 2.1% 20.0%
Canada 1,170 180 1,210 210 -3.3% -14.3%
Mexico 1,130 240 1,630 310 -30.7% -22.6%
United Kingdom
/Ireland 910 160 750 100 21.3% 60.0%
Philippines 3,430 370 4,070 490 -15.7% -24.5%
Malaysia
/Singapore 2,560 410 3,250 590 -21.2% -30.5%
Germany 420 130 120 50 250.0% 160.0%
Consolidated
total 64,960 18,370 65,480 17,840 -0.8% 3.0%
SOURCE Reliv International, Inc.
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Related links:
http://www.reliv.com/
http://www.prnewswire.com/comp/103123.html/
CONTACT:
Steven D. Albright, Chief Financial Officer,
+1-636-733-1305, or Fred A. Nielson, Investor Relations,
+1-636-733-1314, or Barry Murov, Corporate Communications,
+1-636-733-1303, all of Reliv International, Inc.
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