CHESTERFIELD, Mo., May 3 /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 results of operations for the three months ended March 31,
2006.
Reliv set records both for net sales and net income in a single
quarter. The company reported an 8 percent gain in worldwide net sales to
$31.2 million -- up from $29.0 million in Q1 2005. Net income increased 19
percent to $2.45 million, or $0.15 per share (diluted) -- compared to $2.06
million, or $0.12 per share (diluted), in the same period last year.
Reliv's operations in the United States set the pace for the company
overall. First-quarter U.S. sales grew 10 percent. This solid performance
in the company's largest market was impacted by an 11 percent sales decline
in Reliv's international operations. Sales grew in two of Reliv's
international markets: the United Kingdom, where revenues climbed 63
percent compared to Q1 2005; and Australia/New Zealand, which posted a gain
of less than one percent, reversing a trend of sales decline.
Robert L. Montgomery, President and Chief Executive Officer of Reliv,
said, "We are pleased that sales continue to grow at a healthy pace in the
United States, and that our efforts to improve margins and control costs
have produced a significant improvement in our net income performance. At
the same time, we see plenty of opportunities to step up our game as the
year unfolds." Mr. Montgomery noted that distributor recruitment at all
levels and international sales development in current markets will be
particular areas of focus in 2006.
"The positive sales trends in the United Kingdom and Australia is
evidence that our international strategy introduced in 2005 is beginning to
take hold," Mr. Montgomery said. "We are confident the Reliv Success System
can work as well in international markets as it does in the United States.
That's our target going forward."
Mr. Montgomery also noted that the company is investing additional
resources in marketing programs to help spur distributor recruitment. As
part of that effort, the company recently announced that Reliv would be
featured in an upcoming issue of Success from Home magazine, a high-profile
publication targeting those who are interested in developing their own
businesses in the network marketing industry.
Reliv will host a conference call to discuss the first quarter 2006
earnings with investors at 1:00 p.m. Eastern Time on May 3, 2006. The
dial-in number for investors is 800-362-0571. The conference identification
is 7RELIVE. To register, please call in 15 minutes prior to the 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 888-566-0831 and using the same
conference identification 7RELIVE. 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.
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 March 31, 2006,
Reliv's network consisted of approximately 64,700 distributors -- 52,360 in
the United States and 12,340 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, Inc.'s common
stock trades on The Nasdaq Stock Market(R) under the symbol RELV.
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 Reliv's web site, http://www.reliv.com .
Condensed Consolidated Balance Sheets
March 31 December 31
2006 2005
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $8,998,864 $5,653,594
Accounts and notes receivable, less
allowances of $40,300 in 2006 and
$39,700 in 2005 766,686 775,623
Accounts due from employees and distributors 170,330 152,760
Inventories 5,188,024 5,584,456
Other current assets 2,427,994 1,692,568
Total current assets 17,551,898 13,859,001
Other assets 2,215,985 1,981,981
Net property, plant and equipment 9,954,513 10,140,441
Total Assets $29,722,396 $25,981,423
Liabilities and Stockholders' Equity
Total current liabilities $12,057,644 $9,895,260
Total non-current liabilities 2,608,314 3,521,335
Stockholders' equity 15,056,438 12,564,828
Total Liabilities and Stockholders' Equity $29,722,396 $25,981,423
Consolidated Statements of Income
Three months ended March 31
2006 2005
(Unaudited) (Unaudited)
Product sales $28,041,335 $26,114,493
Handling & freight income 3,154,017 2,864,603
Net Sales 31,195,352 28,979,096
Costs and expenses:
Cost of products sold 5,082,181 4,943,304
Distributor royalties and commissions 12,627,032 11,711,716
Selling, general and administrative 9,466,741 8,963,286
Total Costs and Expenses 27,175,954 25,618,306
Income from operations 4,019,398 3,360,790
Other income (expense):
Interest income 84,676 70,023
Interest expense (34,441) (85,490)
Other income/ (expense) 60,636 3,066
Income before income taxes 4,130,269 3,348,389
Provision for income taxes 1,680,000 1,285,000
Net Income $2,450,269 $2,063,389
Earnings per common share - Basic $0.16 $0.13
Weighted average shares 15,569,000 16,479,000
Earnings per common share - Diluted $0.15 $0.12
Weighted average shares 15,981,000 17,162,000
Cash dividends declared per common share $0 $0
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, 2006 and
2005.
Net sales by Market Three months ended March 31,
(in thousands)
2006 2005 Change from
% of Net % of Net prior year
Amount Sales Amount Sales Amount %
United States 28,530 91.5% 25,969 89.6% 2,561 9.9%
Australia/New
Zealand 579 1.9% 576 2.0% 3 0.5%
Canada 409 1.3% 451 1.6% (42) -9.3%
Mexico 329 1.1% 542 1.9% (213) -39.3%
United Kingdom/
Ireland 273 0.9% 167 0.6% 106 63.5%
Philippines 493 1.6% 802 2.8% (309) -38.5%
Malaysia/
Singapore 458 1.5% 472 1.6% (14) -3.0%
Germany 124 0.4% - - 124 -
Consolidated
Total 31,195 100.0% 28,979 100.0% 2,216 7.6%
The following table sets forth, as of March 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
March 31, 2006 March 31, 2005 % Change
Master Master Master
Active Affiliates Active Affiliates Active Affiliates
Distri- and Distri- and Distri- and
butors Above butors Above butors Above
United States 52,360 12,930 49,040 11,170 6.8% 15.8%
Australia/New
Zealand 2,370 180 3,010 220 -21.3% -18.2%
Canada 1,160 140 1,430 170 -18.9% -17.6%
Mexico 1,230 200 7,900 470 -84.4% -57.4%
United Kingdom/
Ireland 800 110 470 40 70.2% 175.0%
Philippines 3,500 270 6,360 500 -45.0% -46.0%
Malaysia/
Singapore 3,100 380 4,850 710 -36.1% -46.5%
Germany 180 70 - - - -
Consolidated
total 64,700 14,280 73,060 13,280 -11.4% 7.5%
SOURCE Reliv International, Inc.
 back to top
Related links:
http://www.reliv.com
http://www.reliv.com/us/investor
http://www.prnewswire.com/comp/103123.html/
CONTACT:
Steven D. Albright, Chief Financial Officer,
+1-636-733-1305, Fred A. Nielson, Investor Relations,
+1-636-733-1314, both of Reliv International, Inc.; or Al Palombo
of Cameron Associates, +1-212-554-5488
|
