CHESTERFIELD, Mo., March 2 /PRNewswire-FirstCall/ -- Reliv International,
Inc. (Nasdaq: RELV), an international manufacturer and network marketer of
nutritional supplements and other food technology products, today announced
its full-year results of operations for 2004, as well as for the three months
ended December 31, 2004.
For the year, Reliv achieved a 24 percent increase in net income available
to common shareholders, which reached $5.37 million or $0.34 per share basic,
$0.31 per share diluted, compared to $4.34 million or $0.29 per share basic,
$0.26 per share diluted in 2003. The company also recorded significant growth
in net sales during the year increasing 26 percent to $96.98 million as
compared to $76.96 million in 2003.
For the three months ended December 31, 2004, Reliv reported a 2 percent
gain in net income available to common shareholders to $1.28 million, or $0.08
per share basic, $0.08 per share diluted on net sales of $25.4 million,
compared to $20.9 million in the fourth quarter of 2003. The company's fourth
quarter 2004 earnings were impacted by certain one-time costs associated with
the documentation and testing of internal controls in connection with the
Company's adoption of Section 404 of the Sarbanes-Oxley Act ("Act"). Also,
the cost of products sold in the fourth quarter were impacted by additional
expenses incurred in the start up of the company's manufacturing equipment
upgrade installed during the third and fourth quarter of 2004.
To complete the internal control requirements of the Sarbanes-Oxley Act,
Reliv spent approximately $400,000 more on accounting and related fees during
the fourth quarter of 2004 than it did in the prior-year period. Certain of
these fees will be one-time costs, related to the initial start-up and
documentation of financial reporting controls.
Reliv's 2004 results were paced by continued sales growth in the United
States, the company's largest geographic market. For the year, net sales in
the United States rose 27 percent. Reliv also reported an 18 percent increase
in net sales from its international markets during 2004, led by accelerating
results from Canada, Australia and New Zealand, the Philippines and the United
Kingdom.
Commenting on the Company's financial results, Robert L. Montgomery,
President and Chief Executive Officer of Reliv, said, "Our 2004 results
indicate the continued viability of our business model and marketing strategy.
We continue to deliver sales growth in our key markets without major product
introductions and the fourth quarter of 2004 marked the 11th consecutive
quarter that we have reported sales growth of at least 20 percent in the
United States. We believe our international markets are capable of producing
similar results and we are determined to make it happen."
Mr. Montgomery noted that the company continued to reach new milestones in
distributor development, with total Master Affiliates up 26 percent worldwide
at the end of 2004, compared to the number who had earned that designation at
the end of 2003. He said the company also expects to benefit from a clinical
trial program initiated in 2004, designed to establish clinical evidence of
the safety and efficacy of Reliv's products. In February, 2005, Reliv
announced the results of an independent clinical trial on a newly developed
dietary supplement -- Reliv CardioSentials(TM) -- conducted under the
direction of Joe Vinson, Ph.D., a Professor of Chemistry at the University of
Scranton. Dr. Vinson's summary report stated that the overall effect of the
supplement for participants was a significant reduction in their 10-year risk
of developing cardiovascular disease. Reliv launched the new product in
February, 2005.
About Reliv International:
Reliv International, Inc., based in suburban St. Louis, Missouri,
manufactures and distributes several lines of food products, including
nutritional and fiber supplements, diet management products, functional foods,
sports drink mixes and a line of premium skin care products. Its proprietary
product lines include an extensive line of soy-based products. Reliv
International's common stock trades on The Nasdaq Stock Market(R) under the
symbol RELV.
Conference Call Information:
The Company will host a conference call to discuss the fourth quarter and
year ended December, 31 2004 earnings with investors at 1:00 p.m. Eastern
Standard Time on March 2, 2005.
The dial-in number for investors is 800-510-0219. Participant pass code is
70979668. To register, please call in 15 minutes prior to start of 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 pass code 70367732.
A live web cast of this call will be available through the Investor
Relations section of the Company's Web site,
http://www.reliv.com/us/investor . An online archive of the broadcast will be
available on the Company's Web site in the Investor Relations section twenty-
four hours after the call concludes. Please access the web site at least 15
minutes before the scheduled conference call to register.
NOTE: This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act. Actual results could differ materially from those projected or
anticipated by the forward-looking statements, which involve a number of risks
and uncertainties, including reliance on the Company's network of independent
distributors, government regulation of products, manufacturing and marketing,
and the risks associated with international expansion. Forward-looking
statements in this release include the Company's statement that "We believe
our international markets are capable of producing similar results ...." This
statement and the other contents of this release should be considered in
conjunction with the warnings and cautionary statements contained in Reliv's
most recent filings with the Securities and Exchange Commission on Forms 10-K
and 10-Q.
-- FINANCIAL HIGHLIGHTS FOLLOW -
Consolidated Balance Sheets
December 31 December 31
2004 2003
(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents 10,151,503 7,902,508
Accounts and notes receivable, less
allowances of $11,500 in 2004 and
$8,600 in 2003 872,592 751,887
Accounts due from employees and
distributors 70,620 72,846
Inventories 5,896,782 4,670,319
Total current assets 13,721,833 9,751,344
Other assets 1,196,780 793,091
Accounts due from employees and
distributors 213,123 52,291
Net Property, plant and equipment 9,968,149 9,413,871
Total assets $30,996,667 $24,680,916
Liabilities and stockholders' equity
Total current liabilities 8,151,968 7,165,368
Long-term debt, less current
maturities 3,357,691 3,700,138
Deferred income taxes 289,000 77,000
Other non-current liabilities 1,007,255 666,032
Total non-current liabilities 4,653,946 4,443,170
Total stockholders' equity 18,190,753 13,072,378
Total liabilities and stockholders'
equity $30,996,667 $24,680,916
Consolidated Statements of Operations
Three months ended Year ended
December 31 December 31
2004 2003 2004 2003
(Unaudited) (Unaudited) (Unaudited) (Audited)
Sales at suggested
retail $36,648,366 $31,145,554 $139,442,752 $110,569,576
Less distributor
allowances on
product purchases 11,207,028 10,237,654 42,460,319 33,609,853
Net sales 25,441,338 20,907,900 96,982,433 76,959,723
Costs and expenses:
Cost of products
sold 4,668,384 3,611,510 16,662,935 13,228,050
Distributor
royalties and
commissions 10,205,080 8,147,942 38,622,537 29,916,744
Selling, general and
administrative 8,441,657 7,070,221 32,710,657 26,438,447
Total Costs and
Expenses 23,315,121 18,829,673 87,996,129 69,583,241
Income from
operations 2,126,217 2,078,227 8,986,304 7,376,482
Other income
(expense):
Interest income 41,265 28,381 118,467 91,038
Interest expense (65,595) (46,526) (243,118) (234,956)
Other income/expense 80,156 (10,897) 146,036 66,876
Income before income
taxes 2,182,043 2,049,185 9,007,689 7,299,440
Provision for income
taxes 902,000 773,000 3,621,000 2,902,000
Net income $1,280,043 $1,276,185 $5,386,689 $4,397,440
Preferred dividends
accrued and paid - 14,746 12,292 56,762
Net income available
to common
shareholders 1,280,043 1,261,439 5,374,397 4,340,678
Basic earnings per
share $0.08 $0.08 $0.34 $0.29
Diluted earnings per
share $0.08 $0.08 $0.31 $0.26
Weighted average
shares of common
stock and common
stock equivalents
outstanding
Basic 16,239,000 15,004,000 15,662,000 14,969,000
Diluted 17,058,000 16,736,000 17,137,000 16,706,000
Active Distributors and Master Affiliates by Region
as of 12/31/2004 as of 12/31/2003 Change in %
Master Master Master
Distrib- Affil- Distrib- Affil- Distrib- Affil-
utors iates utors iates utors iates
United States 47,190 12,460 41,000 9,150 15.1% 36.2%
Australia/New Zealand 3,040 290 2,570 230 18.3% 26.1%
Canada 1,480 210 1,140 180 29.8% 16.7%
Mexico 9,000 710 7,700 1,370 16.9% -48.2%
United Kingdom/Ireland 450 60 410 70 9.8% -14.3%
Philippines 6,760 650 7,380 810 -8.4% -19.8%
Malaysia/Singapore 5,280 730 1,350 200 N/A N/A
Consolidated total 73,200 15,110 61,550 12,010 18.9% 25.8%
SOURCE Reliv International, Inc.
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Company News On-Call:
http://www.prnewswire.com/comp/103123.html
Related links:
http://www.reliv.com/us/investor
CONTACT:
Steven D. Albright, Vice President of
Finance, +1-636-537-9715, or Fred A. Nielson, Investor Relations,
+1-636-733-1314, both of Reliv International, Inc.; or Al Palombo
of Cameron Associates, +1-212-554-5488
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