Company Delivers 65 Percent Increase in Net Income with 19 Percent Growth in
Net Sales
CHESTERFIELD, Mo., Aug. 3 /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 three months ended June 30, 2005 and for the
first half of the year.
A strong performance in the United States led to a 65 percent increase in
net income during the second quarter. Net income available to common
shareholders reached $1.98 million, or $0.12 per share (diluted), up from
earnings of $1.2 million, or $0.07 per share (diluted) in the second quarter
of 2004. Reliv's worldwide net sales increased 19 percent, reaching $28.5
million in the second quarter of 2005, compared to sales of $23.9 million in
the second quarter of 2004.
For the first half of 2005, Reliv's net income available to common
shareholders was $4.04 million -- or $0.24 per share (diluted). This compares
to earnings of $2.83 million, or $0.17 per share (diluted), during the first
half of 2004 -- a 43 percent increase versus the prior-year period. First-half
net sales grew 21 percent, reaching $57.5 million -- compared to $47.3 million
during the first six months of 2004.
Sales growth in the United States, Reliv's largest market, continues to
set the pace for Reliv's overall results. U.S. net sales climbed 28 percent
in the second quarter of 2005 compared to the same period last year. Reliv
reported mixed results from its international markets, with strong growth in
Canada (up 20 percent) and the United Kingdom/Ireland (up 62 percent) offset
by sales declines in other international operations.
Robert L. Montgomery, President and Chief Executive Officer of Reliv,
said, "We are particularly pleased to see exceptional earnings growth in the
second quarter, rewarding our shareholders for the outstanding sales
performance we continue to achieve in the United States and other key markets.
We intend to build on those results in the second half of the year, by
leveraging the strength of an exciting new market, and the growing popularity
of products like CardioSentials(TM)."
Introduced in February 2005, CardioSentials(TM) generated sales of
$1.1 million in the second quarter -- or approximately 5 percent of U.S. net
product sales. This new dietary supplement is attracting attention in the
marketplace, in part because it was shown through an independent clinical
study to be safe and effective in reducing cholesterol levels, a significant
risk factor for heart disease.
Mr. Montgomery noted that the company entered its 11th country worldwide,
when Reliv opened for business in Germany on July 18. "It is an extremely
attractive market for us," Mr. Montgomery said, "not only because it is one of
the top five countries in the world for direct selling, but it also represents
our first foray into continental Europe. We are excited about the opportunity
to build a growing presence for Reliv in this largely untapped market." Along
with Germany, Reliv now sells its products in 10 other countries: United
States, Australia, Canada, Ireland, Malaysia, Mexico, the Philippines,
Singapore, New Zealand, and the United Kingdom.
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.
Reliv will host a conference call to discuss the second quarter 2005
earnings with investors at 1:00 p.m. Eastern Time on August 3, 2005. The
dial-in number for investors is 866-271-5140. Participant pass code is
30789299. 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 55342707. 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.
For more information about Reliv, please visit our website at
http://www.reliv.com .
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 discussed in the
Company's filings with the SEC on forms 10-K and 10-Q.
-- FINANCIAL HIGHLIGHTS FOLLOW -
Reliv International, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
June 30 December 31
2005 2004
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $5,836,812 $10,151,503
Accounts and notes receivable, less
allowances of $23,700 in 2005 and
$11,500 in 2004 568,017 872,592
Accounts due from employees and distributors 81,850 70,620
Inventories 6,561,068 5,896,782
Other current assets 2,058,746 2,627,118
Total current assets 15,106,493 19,618,615
Other assets 1,866,420 1,409,903
Net property, plant and equipment 10,502,930 9,968,149
Total Assets $27,475,843 $30,996,667
Liabilities and Stockholders' Equity
Total current liabilities $13,121,395 $8,151,968
Total non-current liabilities 3,446,366 4,653,946
Stockholders' equity 10,908,082 18,190,753
Total Liabilities and Stockholders' Equity $27,475,843 $30,996,667
Consolidated Statements of Income
Three months ended June 30 Six months ended June 30
2005 2004 2005 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Sales at Retail $41,055,868 $34,280,799 $83,011,088 $68,139,940
Less: Distributor
allowances on
product purchases 12,509,782 10,389,594 25,485,906 20,770,903
Net Sales 28,546,086 23,891,205 57,525,182 47,369,037
Costs and expenses:
Cost of products
sold 4,711,472 4,000,626 9,654,776 7,854,905
Distributor
royalties and
commissions 11,379,011 9,562,686 23,090,727 18,883,076
Selling,
general and
administrative 9,190,021 8,314,261 18,153,307 15,835,211
Total Costs and
Expenses 25,280,504 21,877,573 50,898,810 42,573,192
Income from
operations 3,265,582 2,013,632 6,626,372 4,795,845
Other income
(expense):
Interest
expense, net (37,664) (18,788) (53,131) (63,549)
Other income, net 45,856 8,023 48,922 22,218
Income before
income taxes 3,273,774 2,002,867 6,622,163 4,754,514
Provision for
income taxes 1,295,000 802,000 2,580,000 1,912,000
Net Income 1,978,774 1,200,867 4,042,163 2,842,514
Preferred
dividends
accrued and paid - - - 12,292
Net income
available to
common
shareholders $1,978,774 $1,200,867 $4,042,163 $2,830,222
Earnings per
common share
Basic $0.12 $0.08 $0.25 $0.19
Diluted $0.12 $0.07 $0.24 $0.17
Weighted average
shares of common
stock and common
stock equivalents
outstanding
Basic 16,096,000 15,393,000 16,216,000 15,285,000
Diluted 16,622,000 17,389,000 16,825,000 16,976,000
Reliv International, Inc. and Subsidiaries
Active Distributors and Master Affiliates by Region
as of 6/30/2005 as of 6/30/2004 Change in %
Master Master Master
Distrib- Affil- Distrib- Affil- Distrib- Affil-
utors iates utors iates utors iates
United States 50,240 13,090 45,040 9,870 11.5% 32.6%
Australia/
New Zealand 2,790 240 2,770 230 0.7% 4.3%
Canada 1,370 190 1,350 160 1.5% 18.8%
Mexico 5,880 420 7,740 760 -24.0% -44.7%
United Kingdom/
Ireland 530 60 410 50 29.3% 20.0%
Philippines 5,640 500 6,510 580 -13.4% -13.8%
Malaysia/Singapore 3,780 680 4,080 520 -7.4% 30.8%
Consolidated
total 70,230 15,180 67,900 12,170 3.4% 24.7%
Net sales by Region Three months ended June 30
(in thousands)
2005 2004 Change from
$ % of $ % of prior Change
sales sales year in %
United States 26,088 91.4% 20,446 85.6% 5,642 27.6%
Australia/
New Zealand 505 1.8% 565 2.4% -60 -10.6%
Canada 456 1.6% 378 1.6% 78 20.6%
Mexico 293 1.0% 664 2.8% -371 -55.9%
United Kingdom/
Ireland 235 0.8% 145 0.6% 90 62.1%
Philippines 479 1.7% 674 2.8% -195 -28.9%
Malaysia/Singapore 490 1.7% 1,019 4.3% -529 -51.9%
Germany 0 0.0% 0 0.0% 0 0.0%
Consolidated
Total 28,546 100.0% 23,891 100.0% 4,655 19.5%
Net sales by Region Six months ended June 30
(in thousands)
2005 2004 Change from
$ % of $ % of prior Change
sales sales year in %
United States 52,057 90.5% 41,017 86.6% 11,040 26.9%
Australia/
New Zealand 1,081 1.9% 1,158 2.4% -77 -6.6%
Canada 907 1.6% 776 1.6% 131 16.9%
Mexico 835 1.5% 1,335 2.8% -500 -37.5%
United Kingdom/
Ireland 402 0.7% 289 0.6% 113 39.1%
Philippines 1,280 2.2% 1,370 2.9% -90 -6.6%
Malaysia/Singapore 963 1.7% 1,424 3.0% -461 -32.4%
Germany 0 0.0% 0 0.0% 0 0.0%
Consolidated
Total 57,525 100.0% 47,369 100.0% 10,156 21.4%
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:
R. Scott Montgomery, Senior Vice President,
Worldwide Operations, +1-636-733-1306, 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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