CHESTERFIELD, Mo., March 17 /PRNewswire-FirstCall/ -- Reliv International,
Inc. (Nasdaq: RELV), an international manufacturer and network marketer of
nutritional supplements and other food technology products, today announced
its results of operations for the year ended December 31, 2003 and for the
fourth quarter of 2003.
Year-End Results
For the year, the company's net income available to common shareholders
totaled $4.34 million, or $0.29 per share basic ($0.26 per share diluted) --
an increase of more than 74 percent compared to 2002, when net profits reached
$2.49 million, or $0.18 per share basic ($0.15 per share diluted). Revenues
grew 22 percent, to total $76.96 million in 2003, compared to sales of
$62.93 million in 2002. The earnings per share for 2002 have been restated for
the company's 5 for 4 stock split in November 2003.
The company's outstanding 2003 results were driven by the continued strong
growth of its network marketing activities in the United States, and in
several key international markets. Network marketing sales in the United
States -- the company's largest market -- grew 24 percent in 2003 compared to
the prior year.
Fourth Quarter Results
For the fourth quarter of 2003, Reliv posted a 25 percent increase in
worldwide sales -- to $20.91 million, up from $16.76 million for the same
period last year. Fourth quarter net income available to common shareholders
also showed a significant improvement -- reaching $1.26 million, or $0.08 per
share basic ($0.08 per share diluted), nearly doubling the earnings
performance in the fourth quarter of 2002, where the company earned $668,000,
or $0.05 per share basic ($0.04 per share diluted).
Reliv's network marketing sales in the United States rose 25 percent in
the fourth quarter of 2003 compared to the same period in 2002, while network
marketing sales from the company's international markets increased by 22
percent during the same period.
Robert L. Montgomery, President and Chief Executive Officer of Reliv,
said, "The company is continuing to prosper by focusing on the fundamentals of
our business. We have unique strengths, in that we formulate and manufacture
our own nutritional products based on the latest advances in food science, and
we go to market by offering an exceptional business opportunity to those who
want to own their own business. It's a simple business model, but it really
works -- as our recent results prove."
Mr. Montgomery noted that the company's growth continues to be broad-based
-- with significant gains in several key international markets. "Along with
the double-digit percentage growth we experienced in the U.S., our fourth
quarter sales grew sharply in Canada (up 32 percent), Australia and New
Zealand (up 24 percent) and the United Kingdom (up 20 percent)," he said. The
company also reported more than $500,000 in net sales from Malaysia, a market
where Reliv opened for business in November 2003.
Reliv continues to see strong growth from its efforts to recruit new
distributors for its marketing network, Mr. Montgomery said. New 2003
sponsorships grew 15 percent in the U.S. and 27 percent in Canada compared to
the prior year, he said.
Reliv International, Inc., based in suburban St. Louis, 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.
The Company will host an earnings conference call at 1:00 p.m. Eastern
Standard Time on Wednesday, March 17, 2004. The call can be accessed via
listen-only dial-in conference lines by dialing 800-399-3409. A replay of this
call will be available by telephone from 3:00 p.m. Eastern Standard Time until
midnight by calling 800-642-1687 and entering ID number 6178311#. To listen to
the live call, please call at least 10 minutes before the scheduled conference
call to register.
A live webcast 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 shortly
after the call concludes.
NOTE: Any statement released by Reliv International, Inc. that is forward
looking is made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Editors and investors are cautioned
that forward-looking statements involve risk and uncertainties that may affect
the Company's business prospect and performance. This includes economic,
competitive, governmental, technological and other factors described in the
Company's filings with the SEC on forms 10-K and 10-Q.
Reliv International, Inc. and Subsidiaries
Consolidated Balance Sheets
December 31 December 31
2003 2002
(Unaudited) (Audited)
Assets
Current assets:
Cash and cash equivalents $7,902,508 $3,364,484
Accounts and notes receivable, less
allowances of $8,600 in 2003 and
$10,000 in 2002 751,887 688,898
Accounts due from employees and
distributors 72,846 104,000
Inventories:
Finished goods 3,171,185 2,361,064
Raw materials 1,047,068 680,516
Sales aids and promotional materials 452,066 415,565
Total inventories 4,670,319 3,457,145
Refundable income taxes - 8,072
Prepaid expenses and other current assets 727,939 637,968
Deferred income taxes 296,164 171,873
Total current assets 14,421,663 8,432,440
Other assets 793,091 442,927
Note receivable from officer - 48,250
Accounts due from employees and
distributors 52,291 78,000
Property, plant and equipment 17,214,909 16,484,644
Less accumulated depreciation and
amortization 7,801,038 7,040,275
9,413,871 9,444,369
Total assets $24,680,916 $18,445,986
Reliv International, Inc. and Subsidiaries
Consolidated Balance Sheets
December 31 December 31
2003 2002
(Unaudited) (Audited)
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued expenses $6,596,785 $5,358,082
Income taxes payable 147,520 257,441
Current maturities of long-term debt 421,063 415,235
Current maturities of capital leases - 8,755
Total current liabilities 7,165,368 6,039,513
Non-current liabilities:
Long-term debt, less current
maturities 3,700,138 4,057,042
Non-current deferred income taxes 77,000 84,435
Other non-current liabilities 666,032 467,350
Total non-current liabilities 4,443,170 4,608,827
Stockholders' equity:
Preferred stock, par value $0.001 per
share; 3,000,000 shares authorized;
97,500 issued and outstanding as
of 12/31/03 975,000 -
Common stock, par value $0.001 per
share; 30,000,000 shares authorized,
15,143,961 shares issued and 15,141,224
shares outstanding as of 12/31/03 and
15,008,451 shares issued and 14,902,415
outstanding as of 12/31/02 15,144 12,007
Additional paid-in capital 18,684,338 17,863,505
Notes receivable - officers and
directors - (2,449)
Accumulated deficit (5,878,869) (8,960,782)
Accumulated other comprehensive loss:
Foreign currency translation
adjustment (714,527) (775,383)
Treasury stock (8,708) (339,252)
Total stockholders' equity 13,072,378 7,797,646
Total liabilities and stockholders'
equity $24,680,916 $18,445,986
Reliv International, Inc. and Subsidiaries
Consolidated Statements of Operations
Quarter ended December 31 Year to Date December 31
2003 2002 2003 2002
(Unaudited) (Unaudited) (Unaudited) (Audited)
Sales at suggested
retail $31,145,554 $24,081,425 $110,569,576 $90,110,444
Less distributor
allowances on
product purchases 10,237,654 7,324,954 33,609,853 27,183,581
Net sales 20,907,900 16,756,471 76,959,723 62,926,863
Costs and expenses:
Cost of products sold 3,611,510 3,122,169 13,228,050 11,569,163
Distributor royalties
and commissions 8,147,942 6,499,893 29,916,744 24,205,030
Selling, general and
administrative 7,070,221 5,983,687 26,438,447 22,898,359
Total Costs and
Expenses 18,829,673 15,605,749 69,583,241 58,672,552
Income from
operations 2,078,227 1,150,722 7,376,482 4,254,311
Other income
(expense):
Interest income 28,381 15,911 91,038 43,047
Interest expense (46,526) (57,908) (234,956) (340,343)
Other income/expense (10,897) (33,842) 66,876 77,792
Income before income
taxes 2,049,185 1,074,883 7,299,440 4,034,807
Provision for income
taxes 773,000 407,000 2,902,000 1,542,000
Net income $1,276,185 $667,883 $4,397,440 $2,492,807
Preferred dividends
accrued and paid 14,745 - 56,762 -
Net income available to
common shareholders 1,261,440 667,883 4,340,678 2,492,807
Basic earnings per
share $0.08 $0.05 $0.29 $0.18
Diluted earnings per
share $0.08 $0.04 $0.26 $0.15
Weighted average
shares of common
stock and common
stock equivalents
outstanding
Basic 15,004,000 14,220,000 14,969,000 14,144,000
Diluted 16,736,000 16,188,000 16,706,000 16,111,000
NOTE: 2002 earnings per share have been restated for the effect of the
Company's 5 for 4 stock split in November 2003.
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:
David G. Kreher, Chief Operating Officer,
+1-636-537-9715, or Fred A. Nielson, Investor Relations,
+1-636-733-1314, both of Reliv International, Inc.
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