Introduction of Slimplicity Weight Loss System Sparks Growth
CHESTERFIELD, Mo., May 2 /PRNewswire-FirstCall/ -- Reliv International,
Inc. (Nasdaq: RELV), a developer, manufacturer and marketer of proprietary
nutritional supplements, today reported record net sales and earnings for
the first quarter of 2007. Net income of $2.6 million represented a 6.9
percent increase over net income in the first quarter of 2006. Diluted
earnings per share rose from $0.15 in the year-ago quarter to $0.16 in the
first quarter this year.
Net sales increased 12.1 percent from $31.2 million in the first
quarter last year to $35.0 million in this year's first quarter. In the
United States, first-quarter sales rose 11.8 percent to $31.9 million, and
non-U.S. sales equaled $3.1 million, an increase of 14.8 percent over the
first quarter of 2006.
"The driving force behind our sales increase in the United States was
the introduction of the Slimplicity Weight Loss System in February," said
Robert L. Montgomery, chairman of the board, president and chief executive
officer of Reliv. "Slimplicity was the key to our double-digit sales growth
as well as to a strong increase in sponsorship of new distributors."
As of March 31, Reliv's worldwide distributor base was 68,690, which
represents a 6.2 percent increase of total distributors compared with the
end of the first quarter of 2006. The United States reported its best
quarter for distributor sign-ups in more than 10 years, gaining 40 percent
vs. the first quarter of 2006.
"U.S. distributors continue to be excited by the potential for
Slimplicity, and we believe the worldwide market for Slimplicity has
greater potential than the U.S. market," Montgomery said. Reliv is in the
process of obtaining approval for the sale of Slimplicity in non-U.S.
markets.
During the first quarter, in addition to the launch of Slimplicity,
Reliv introduced its redesigned Web site, http://www.reliv.com, to positive
public response. The site has an improved look and it's easier to navigate
than the previous site.
The company also debuted a new basic training program for its
distributor force in the first quarter. "We are confident that the new
training will help our many new distributors get off to a great start,"
Montgomery said.
Reliv's proprietary nutritional supplements, its outstanding business
opportunity and a proven system designed to help distributors build their
businesses also were important factors in Reliv's first-quarter
performance.
Reliv will host a conference call to discuss first quarter 2007
earnings with investors at 1:00 p.m. Eastern Time on May 2, 2007. The
dial-in number for investors is 866-578-5771. The participant passcode is
86923338. 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
28215664. 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 68,000 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 --
Reliv International, Inc. and Subsidiaries
ADD TWO
Consolidated Balance Sheets
March 31 December 31
2007 2006
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $10,228,771 $9,332,810
Short-term investments 8,864,000 7,864,000
Accounts and notes receivable, less
allowances of $7,000 in 2007
and $6,200 in 2006 988,379 669,379
Accounts due from employees and
distributors 216,319 223,246
Inventories 5,134,092 4,778,221
Other current assets 2,090,939 1,977,522
Total current assets 27,522,500 24,845,178
Other assets 3,291,863 3,002,496
Net property, plant and equipment 9,292,998 9,434,546
Total Assets $40,107,361 $37,282,220
Liabilities and Stockholders' Equity
Total current liabilities $11,914,474 $8,615,256
Total non-current liabilities 1,117,265 933,113
Stockholders' equity 27,075,622 27,733,851
Total Liabilities and Stockholders'
Equity $40,107,361 $37,282,220
Consolidated Statements of Operations
Three months ended March 31
2007 2006
(Unaudited) (Unaudited)
Product sales $31,397,966 $28,041,335
Handling & freight income 3,565,679 3,154,017
Net Sales 34,963,645 31,195,352
Costs and expenses:
Cost of products sold 6,061,392 5,082,181
Distributor royalties and commissions 13,928,563 12,627,032
Selling, general and administrative 11,029,850 9,466,741
Total Costs and Expenses 31,019,805 27,175,954
Income from operations 3,943,840 4,019,398
Other income (expense):
Interest income 212,602 84,676
Interest expense (126) (34,441)
Other income/expense 96,933 60,636
Income before income taxes 4,253,249 4,130,269
Provision for income taxes 1,633,000 1,680,000
Net Income 2,620,249 2,450,269
Earnings per common share -- Basic $0.16 $0.16
Weighted average shares 16,431,000 15,569,000
Earnings per common share -- Diluted $0.16 $0.15
Weighted average shares 16,580,000 15,981,000
Cash dividends declared per common share $0 $0
Reliv International, Inc. and Subsidiaries
ADD THREE
The following table summarizes net sales by geographic
market ranked by the date we began operations in each market
for the three months ended March 31, 2007 and 2006.
Net sales by Market Three months ended March 31,
(in thousands) Change from
2007 2006 prior year
% of Net % of Net
Amount Sales Amount Sales Amount %
United States 31,904 91.2% 28,530 91.5% 3,374 11.8%
Australia/
New Zealand 653 1.9% 579 1.9% 74 12.8%
Canada 441 1.3% 409 1.3% 32 7.8%
Mexico 410 1.2% 329 1.0% 81 24.6%
United Kingdom/
Ireland 287 0.8% 273 0.9% 14 5.1%
Philippines 628 1.8% 493 1.5% 135 27.4%
Malaysia/
Singapore 330 0.9% 458 1.5% (128) -27.9%
Germany 311 0.9% 124 0.4% 187 150.8%
Consolidated
Total 34,964 100.0% 31,195 100.0% 3,769 12.1%
The following table sets forth, as of March 31, 2007 and
2006, 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
March 31, 2007 March 31, 2006 % Change
Master Master Master
Active Affiliates Active Affiliates Active Affiliates
Distri- and Distri- and Distri- and
butors Above butors Above butors Above
United States 56,320 12,660 52,360 12,930 7.6% -2.1%
Australia/
New Zealand 2,520 270 2,370 180 6.3% 50.0%
Canada 1,170 150 1,160 140 0.9% 7.1%
Mexico 1,170 170 1,230 200 -4.9% -15.0%
United Kingdom/
Ireland 940 130 800 110 17.5% 18.2%
Philippines 3,750 270 3,500 270 7.1% 0.0%
Malaysia/
Singapore 2,310 260 3,100 380 -25.5% -31.6%
Germany 510 150 180 70 183.3% 114.3%
Consolidated
total 68,690 14,060 64,700 14,280 6.2% -1.5%
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
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