CHESTERFIELD, Mo., March 2 /PRNewswire-FirstCall/ -- Reliv International,
Inc. (Nasdaq: RELV), a developer, manufacturer and marketer of a proprietary
line of nutritional supplements addressing basic nutrition, specific wellness
needs, weight management and sports nutrition, today announced its full-year
results of operations for 2005, as well as for the three months ended
December 31, 2005.
2005 Results
For the year, Reliv reported a 40 percent increase in net income available
to common shareholders, which totaled $7.52 million, or $0.46 per share
(diluted) -- compared to $5.37 million, or $0.31 per share (diluted) in 2004.
The net income in 2005 was a single year record for the company. The company
also achieved record-setting net sales during 2005 -- up 17 percent, to
$113.6 million -- compared to $97.0 million in 2004.
Fourth Quarter 2005 Results
For the three months ended December 31, 2005, Reliv posted a 41 percent
increase in net income available to common shareholders -- to $1.81 million,
or $0.11 per share (diluted), compared to $1.28 million, or $0.07 per share
(diluted) in the prior-year period. Fourth quarter 2005 net sales grew
8 percent, to $27.5 million, compared to $25.4 million in the fourth quarter
of 2004.
The company's fourth-quarter and full-year earnings benefited from the
reduction of certain costs that were reported in 2004 -- costs associated with
the initial year of documentation and testing of internal controls in
connection with the Company's compliance with Section 404 of the
Sarbanes-Oxley Act.
Key Company Trends
Throughout 2005, Reliv's results were driven by strong sales growth in the
United States, the company's largest geographic market. Net sales in the
United States increased 22 percent for the year compared to 2004, to total
$102.5 million. Reliv also reported increased results in Europe -- with net
sales up 55 percent in the United Kingdom compared to the prior year, as well
as the opening of the company's operations in Germany in July 2005. However,
this growth was offset by weaknesses in other non-U.S. markets, leading to a
16 percent decline in net sales from international markets during the year.
Robert L. Montgomery, President and Chief Executive Officer of Reliv,
said, "For the most part, our performance in 2005 was an excellent one. Our
record-setting net sales and net income proves that the Reliv business model
is both powerful and scalable. It also demonstrates that our products target
a promising market -- the millions of consumers worldwide who want to make
good nutrition a simple but key part of their healthy lifestyles. That's why
we believe we can extend the success we've seen in the U.S. to our
international markets in the future."
Reliv International, Inc., based in suburban St. Louis, is a developer,
manufacturer and marketer of a proprietary line of nutritional supplements
addressing basic nutrition, specific wellness needs, weight management and
sports nutrition. Reliv's science-based supplements are packaged in powdered
form and are not only simple to use but also, when mixed with water, juice or
other liquid and consumed, provide an effective means of delivering nutrients
to the body. Reliv also offers a line of skin care products. Reliv sells its
products through an international network marketing system using independent
distributors. As of December 31, 2005, Reliv's network consisted of
approximately 65,500 distributors -- 52,500 in the United States and 13,500
across the company's international markets. Reliv has sold products in the
United States since 1988 and in selected international markets since 1991.
Reliv International's common stock trades on The Nasdaq Stock Market(R) under
the symbol RELV.
Reliv will host a conference call to discuss the fourth quarter &
full-year 2005 earnings with investors at 1:00 p.m. Eastern Time on March 2,
2006. The dial-in number for investors is 800-329-9097. Participant pass
code is 83771579. 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 pass code 46542444.
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 twenty-four hours after the call concludes. Please access
the web site at least 15 minutes before the scheduled conference call to
register.
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 the Company's web site,
http://www.reliv.com .
-- FINANCIAL HIGHLIGHTS FOLLOW -
Condensed Consolidated Balance Sheets
December 31, December 31,
2005 2004
(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents $5,653,594 $10,151,503
Accounts and notes receivable, less
allowances of $39,700 in 2005 and
$11,500 in 2004 775,623 872,592
Accounts due from employees and
distributors 152,760 70,620
Inventories 5,584,456 5,896,782
Other current assets 1,692,568 2,627,118
Total current assets 13,859,001 19,618,615
Other assets 1,626,330 1,196,780
Accounts due from employees and
distributors 355,651 213,123
Net property, plant and equipment 10,140,441 9,968,149
Total assets $25,981,423 $30,996,667
Liabilities and stockholders' equity
Total current liabilities $9,895,260 $8,151,968
Long-term debt, less current
maturities 2,211,065 3,357,691
Other non-current liabilities 1,310,270 1,296,255
Total stockholders' equity 12,564,828 18,190,753
Total liabilities and stockholders'
equity $25,981,423 $30,996,667
Consolidated Statements of Operations
Three months ended Year ended
December 31, December 31,
2005 2004 2005 2004
(Unaudited) (Unaudited) (Unaudited) (Audited)
Sales at suggested
retail $39,844,751 $36,648,365 $163,968,979 $139,442,752
Less distributor
allowances on
product purchases 12,360,202 11,207,027 50,403,815 42,460,319
Net sales 27,484,549 25,441,338 113,565,164 96,982,433
Costs and expenses:
Cost of products
sold 4,735,786 4,668,384 19,264,347 16,662,935
Distributor
royalties and
commissions 10,971,521 10,205,080 45,479,062 38,622,537
Selling, general and
administrative 8,729,059 8,441,657 36,348,526 32,710,657
Total costs and
expenses 24,436,366 23,315,121 101,091,935 87,996,129
Income from
operations 3,048,183 2,126,217 12,473,229 8,986,304
Other income
(expense):
Interest income 48,290 41,265 238,473 118,467
Interest expense (50,886) (65,595) (313,329) (243,118)
Other income 127,230 80,156 101,043 146,036
Income before income
taxes 3,172,817 2,182,043 12,499,416 9,007,689
Provision for income
taxes 1,362,000 902,000 4,978,000 3,621,000
Net income 1,810,817 1,280,043 7,521,416 5,386,689
Preferred dividends
accrued and paid - - - 12,292
Net income available
to common
shareholders $1,810,817 $1,280,043 $7,521,416 $5,374,397
Earnings per common
share - Basic $0.11 $0.07 $0.47 $0.34
Weighted average
shares 15,580,000 16,239,000 15,885,000 15,662,000
Earnings per common
share - Diluted $0.11 $0.07 $0.46 $0.31
Weighted average
shares 15,901,000 17,058,000 16,388,000 17,137,000
Cash dividends
declared per common
share $0.040 $0.035 $0.075 $0.065
Active Distributors and Master Affiliates and above by Market(1)
As of 12/31/2005 As of 12/31/2004 Change in %
Master Master Master
Affil- Affil- Affil-
Active iates Active iates Active iates
Distri- and Distri- and Distri- and
butors Above butors Above butors Above
United States 52,040 15,800 47,190 12,460 10.3% 26.8%
Australia/New Zealand 2,410 240 3,040 290 -20.7% -17.2%
Canada 1,220 210 1,480 210 -17.6% 0.0%
Mexico 1,630 310 9,000 710 -81.9% -56.3%
United Kingdom/Ireland 750 100 450 60 66.7% 66.7%
Philippines 4,070 490 6,760 650 -39.8% -24.6%
Malaysia/Singapore 3,250 590 5,280 730 -38.4% -19.2%
Germany 130 60 - - N.M. N.M.
Consolidated total 65,500 17,800 73,200 15,110 -10.5% 17.8%
(1) The total number of active distributors also includes Master
Affiliates and above. The company defines an active distributor as
one that enrolls as a distributor or renews its distributorship
during the prior twelve months. Master Affiliates and above are
those distributors that have attained the highest level of discount
and are eligible for royalties generated by Master Affiliates and
above in their downline organization.
Net sales by Market
(in thousands)
Three months ended December 31, Change From
2005 2004 Prior Year
% of % of
$ sales $ sales Amount %
United States 24,669 89.8% 22,151 87.1% 2,518 11.4%
Australia/New Zealand 649 2.4% 743 2.9% -94 -12.7%
Canada 377 1.4% 520 2.0% -143 -27.5%
Mexico 370 1.3% 657 2.6% -287 -43.7%
United Kingdom/Ireland 205 0.7% 135 0.5% 70 51.9%
Philippines 522 1.9% 728 2.9% -206 -28.3%
Malaysia/Singapore 491 1.8% 507 2.0% -16 -3.2%
Germany 202 0.7% - - 202 N.M.
Consolidated Total 27,485 100.0% 25,441 100.0% 2,044 8.0%
Net sales by Market
(in thousands)
Year ended December 31, Change From
2005 2004 Prior Year
% of % of
$ sales $ sales Amount %
United States 102,549 90.3% 83,873 86.5% 18,676 22.3%
Australia/New Zealand 2,215 2.0% 2,543 2.6% -328 -12.9%
Canada 1,668 1.5% 1,751 1.8% -83 -4.7%
Mexico 1,608 1.4% 2,634 2.7% -1,026 -39.0%
United Kingdom/Ireland 846 0.7% 545 0.6% 301 55.2%
Philippines 2,328 2.0% 2,865 3.0% -537 -18.7%
Malaysia/Singapore 2,031 1.8% 2,771 2.9% -740 -26.7%
Germany 320 0.3% - - 320 N.M.
Consolidated Total 113,565 100.0% 96,982 100.0% 16,583 17.1%
SOURCE Reliv International, Inc.
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Related links:
http://www.reliv.com
http://www.reliv.com/us/investor
Company News On-Call:
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, both of Reliv International, Inc.; or Al
Palombo, Investor Relations, of Cameron Associates,
+1-212-554-5488
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