CHESTERFIELD, Mo., Aug. 4 /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 ending June 30, 2004 and for
the first half of the year.
Reliv's worldwide net sales grew 34 percent during the second quarter of
2004, reaching $23.89 million -- compared to sales of $17.77 million in 2Q
2003. Net income available to common shareholders rose 32 percent to
$1.2 million, or $0.08 per share basic ($0.07 per share diluted) in the second
quarter, up from earnings of $909,000, or $0.06 per share basic ($0.05 per
share diluted) in 2Q 2003. The 2003 earnings per share have been adjusted for
the five-for-four stock split declared in September, 2003.
For the first half of 2004, Reliv generated a 30 percent increase in net
sales, to $47.37 million, compared to $36.44 million during the first six
months of 2003. Net income available to common shareholders reached
$2.83 million -- or $0.19 per share basic ($0.17 per share diluted). This
represents a 50 percent increase over the earnings results produced during the
first half of 2003.
The company continues to experience strong growth in the United States,
its largest geographic market. Net sales in the U.S. advanced 34 percent in
2Q 2004 compared to the same period last year. Reliv also posted positive
results in most of its international markets, with solid growth in Malaysia,
the United Kingdom, Canada, Australia and New Zealand leading to a 37 percent
improvement in international net sales during 2Q 2004 compared to the
prior-year period.
Robert L. Montgomery, President and Chief Executive Officer of Reliv,
said, "It's gratifying to see our strong performance continue. For nine
quarters in a row now, we've generated sales growth of at least 20 percent in
the United States, our largest market. That's a tribute both to the
effectiveness and enthusiasm of our network of independent distributors -- and
to our own focus on the fundamentals of our business."
According to Mr. Montgomery, Reliv's distributor recruitment activities
are faring well in 2004 -- with enrollments up 35 percent worldwide in the
second quarter compared to the prior-year performance. New enrollments in
Malaysia -- where the company opened for business last September -- and a
20 percent growth in sponsorships in the US set the pace for the company
during the period, 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 a conference call to discuss the second quarter and
first half earnings with institutional investors at 1:00 p.m. Eastern Daylight
Time on August 4, 2004. A dial-in replay of this call will be available for
72 hours by telephone from 3:00 p.m. Eastern by calling 800-642-1687 and using
conference code 9040257. 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
twenty four hours after the call concludes. Please access the web site at
least 15 minutes before the scheduled conference call to register.
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.
-- FINANCIAL HIGHLIGHTS FOLLOW --
Consolidated Balance Sheets
June 30 December 31
2004 2003
(Unaudited)
Assets
Current Assets:
Cash and cash
equivalents $7,409,656 $7,902,508
Accounts and notes
receivable, less
allowances of
$7,600 in 2004 and
$8,600 in 2003 647,604 751,887
Accounts due from
employees and
distributors 117,306 72,846
Inventories 6,049,703 4,670,319
Other current assets 1,355,679 1,024,103
Total current assets 15,579,948 14,421,663
Other assets 1,109,257 793,091
Accounts due from
employees and
distributors 195,963 52,291
Net property, plant
and equipment 10,244,778 9,413,871
Total Assets $27,129,946 $24,680,916
Liabilities and
Stockholders' Equity
Total current
liabilities 9,170,382 7,165,368
Long-term debt, less
current maturities 3,599,128 3,700,138
Deferred income taxes 77,000 77,000
Other non-current
liabilities 885,200 666,032
Stockholders' equity 13,398,236 13,072,378
Total Liabilities and
Stockholders' Equity $27,129,946 $24,680,916
Consolidated Statements of Operations
Three months ended June 30 Six months ended June 30
2004 2003 2004 2003
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Sales at Retail $34,280,799 $25,407,802 $68,139,940 $52,263,966
Less Distributor
allowances on
product purchases 10,389,594 7,641,155 20,770,903 15,825,869
Net Sales 23,891,205 17,766,647 47,369,037 36,438,097
Costs and expenses:
Cost of products sold 4,000,626 3,008,695 7,854,905 6,316,413
Distributor royalties
and commissions 9,562,686 6,914,507 18,883,076 14,169,705
Selling, general and
administrative 8,314,261 6,321,793 15,835,211 12,692,777
Total Costs and
Expenses 21,877,573 16,244,995 42,573,192 33,178,895
Income from operations 2,013,632 1,521,652 4,795,845 3,259,202
Other income (expense):
Interest income 27,883 24,162 48,353 39,904
Interest expense (46,671) (69,961) (111,902) (138,008)
Other income\expense 8,023 84,187 22,218 61,504
Income before income
taxes 2,002,867 1,560,040 4,754,514 3,222,602
Provision for income
taxes 802,000 629,000 1,912,000 1,314,000
Net Income 1,200,867 931,040 2,842,514 1,908,602
Preferred dividends
accrued and paid - 22,500 12,292 22,500
Net income available
to common
shareholders $1,200,867 $908,540 $2,830,222 $1,886,102
Earnings per common
share - Basic $0.08 $0.06 $0.19 $0.13
Weighted average
shares 15,393,000 14,953,000 15,285,000 14,958,000
Earnings per common
share - Diluted $0.07 $0.05 $0.17 $0.11
Weighted average
shares 17,389,000 17,085,000 16,976,000 16,877,000
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 Nielson, Investor Relations,
+1-636-733-1314, both of Reliv International, Inc.; or Al Palombo
of Cameron Associates, +1-212-554-5488
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