CHESTERFIELD, Mo., Nov. 2 /PRNewswire-FirstCall/ -- Reliv International,
Inc. (Nasdaq: RELV), a manufacturer and international network marketer of
nutritional supplements and other food technology products, today announced
its results of operations for the three months ended September 30, 2005 and
for the first nine months of the year.
For the third quarter 2005, the company reported a 32 percent increase in
net income available to common shareholders, which reached $1.67 million or
$0.10 per share (diluted) - compared to $1.26 million, or 0.07 per share
(diluted) in the same period last year. Reliv worldwide net sales advanced 18
percent, to total $28.6 million for the third quarter of 2005, compared to
$24.17 million in the third quarter 2004.
Through the first nine months of 2005, Reliv has reported a 39 percent
increase in net income available to common shareholders compared to the same
period in 2004. The 2005 nine-month net income figure reached $5.7 million,
or $0.35 per share (diluted). Net sales for the period also showed an increase
- rising 20 percent, to $86.1 million, compared to $71.5 million during the
first nine months of 2004.
The United States, the company's largest geographic market, continues to
set the pace for Reliv's financial performance. U.S. net sales grew 25 percent
in the third quarter 2005 compared to the same period last year. This growth
was partially offset by mixed results from the company's international
markets. Reliv reported that sales nearly doubled in the United Kingdom in the
third quarter 2005 compared to the prior year period, reflecting the impact of
a new management team put in place earlier in the year. However, sales
declined in other international operations compared to the same period in the
prior year.
Robert L. Montgomery, President and Chief Executive Officer of Reliv,
said, "We are very pleased with the growth performance we continue to see in
the United States. For well over three years in a row now, our largest market
has generated sales growth of at least 20 percent every quarter, when compared
to the prior year period. That's a remarkable run -- made all the more
remarkable by the fact that it's been achieved without acquisitions or the
need to enter new lines of business. Now the challenge is to extend that
success to our international markets."
Mr. Montgomery noted that management changes -- including new business
leaders in the United Kingdom, a recently appointed national sales manager in
Australia and some restructuring in Mexico -- should help the company
implement its business development system more consistently in international
markets.
"Our success in the United States proves that the Reliv system can be a
powerful growth engine," Mr. Montgomery said. "We are committed to taking the
steps necessary to ensure that this proven strategy is used to produce
consistent results in all of our markets worldwide."
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 third quarter and first
nine months 2005 earnings with investors at 1:00 p.m. Eastern Time on November
2, 2005. The dial-in number for investors is 800-510-9834. Participant pass
code is 37886852. 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 pass code 44526999.
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.
NOTE: This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act and Section 21E of the Securities
Exchange Act. Actual results could differ materially from those projected in
the forward-looking statements, which involve a number of risks and
uncertainties, including reliance on the Company's network of independent
distributors, government regulation of products, manufacturing and marketing,
and the risks associated with international expansion. Forward-looking
statements in this release include the Company's statement that "management
changes ... should help the company implement its business development system
more consistently in international markets." This statement and the other
contents of this release should be considered in conjunction with the warnings
and cautionary statements contained in Reliv's most recent filings with the
Securities and Exchange Commission on Forms 10-Q and 10-K.
Condensed Consolidated Balance Sheets
September 30 December 31
2005 2004
(Unaudited)
Assets
Current Assets:
Cash and cash equivalents $4,938,717 $10,151,503
Accounts and notes receivable, less
allowances of $26,500 in 2005 and
$11,500 in 2004 553,333 872,592
Accounts due from employees and
distributors 122,534 70,620
Inventories 6,639,702 5,896,782
Other current assets 1,556,633 2,627,118
Total current assets 13,810,919 19,618,615
Other assets 1,480,639 1,196,780
Accounts due from employees and
distributors 414,882 213,123
Net property, plant and equipment 10,474,316 9,968,149
Total Assets $26,180,756 $30,996,667
Liabilities and Stockholders' Equity
Total current liabilities $10,760,097 $8,151,968
Total non-current liabilities 3,411,696 4,653,946
Stockholders' equity 12,008,963 18,190,753
Total Liabilities and Stockholders'
Equity $26,180,756 $30,996,667
Consolidated Statements of Income
Three months Nine months
ended September 30 ended September 30
2005 2004 2005 2004
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Sales at Retail $41,113,139 $34,654,446 $124,124,228 $102,794,387
Less: Distributor
allowances on
product purchases 12,557,707 10,482,388 38,043,613 31,253,292
Net Sales 28,555,432 24,172,058 86,080,615 71,541,095
Costs and expenses:
Cost of products
sold 4,873,785 4,139,646 14,528,561 11,994,551
Distributor
royalties and
commissions 11,416,814 9,534,381 34,507,541 28,417,457
Selling, general
and
administrative 9,466,159 8,433,789 27,619,467 24,269,000
Total Costs and
Expenses 25,756,758 22,107,816 76,655,569 64,681,008
Income from
operations 2,798,674 2,064,242 9,425,046 6,860,087
Other income
(expense):
Interest income 40,647 28,849 190,183 77,202
Interest expense (59,776) (65,621) (262,443) (177,523)
Other income (75,109) 43,662 (26,187) 65,880
Income before income
taxes 2,704,436 2,071,132 9,326,599 6,825,646
Provision for income
taxes 1,036,000 807,000 3,616,000 2,719,000
Net Income 1,668,436 1,264,132 5,710,599 4,106,646
Preferred dividends
accrued and paid - - - 12,292
Net income available
to common
shareholders $1,668,436 $1,264,132 $5,710,599 $4,094,354
Earnings per common
share - Basic $0.11 $0.08 $0.36 $0.26
Weighted average
shares 15,539,000 15,846,000 15,988,000 15,473,000
Earnings per common
share - Diluted $0.10 $0.07 $0.35 $0.24
Weighted average
shares 15,978,000 16,974,000 16,551,000 17,069,000
Cash dividends
declared per common
share $0.000 $0.000 $0.035 $0.030
Active Distributors and Master Affiliates by Region
as of 9/30/2005 as of 9/30/2004 Change in %
Master Master Master
Distrib- Affil- Distrib- Affil- Distrib- Affil-
utors iates utors iates utors iates
United States 51,470 14,560 46,030 11,120 11.8% 30.9%
Australia/New Zealand 2,570 240 2,990 260 -14.0% -7.7%
Canada 1,270 200 1,440 190 -11.8% 5.3%
Mexico 4,020 380 8,000 720 -49.8% -47.2%
United Kingdom/Ireland 640 90 410 50 56.1% 80.0%
Philippines 4,930 520 6,710 610 -26.5% -14.8%
Malaysia/Singapore 3,430 620 5,220 710 -34.3% -12.7%
Germany 70 30 - - N.M. N.M.
Consolidated total 68,400 16,640 70,800 13,660 -3.4% 21.8%
Net sales by Region Three months ended September 30
(in thousands)
Change Change
2005 2004 from prior in
$ % of sales $ % of sales year %
United States 25,823 90.4% 20,705 85.7% 5,118 24.7%
Australia/New Zealand 486 1.7% 642 2.7% -156 -24.3%
Canada 383 1.3% 455 1.9% -72 -15.8%
Mexico 402 1.4% 642 2.7% -240 -37.4%
United Kingdom/Ireland 240 0.8% 122 0.5% 118 96.7%
Philippines 526 1.8% 767 3.2% -241 -31.4%
Malaysia/Singapore 577 2.0% 839 3.5% -262 -31.2%
Germany 118 0.4% - - 118 N.M.
Consolidated Total 28,555 100.0% 24,172 100.0% 4,383 18.1%
Net sales by Region Nine months ended September 30
(in thousands)
Change Change
2005 2004 from prior in
$ % of sales $ % of sales year %
United States 77,881 90.5% 61,722 86.3% 16,159 26.2%
Australia/New Zealand 1,567 1.8% 1,800 2.5% -233 -12.9%
Canada 1,290 1.5% 1,231 1.7% 59 4.8%
Mexico 1,237 1.4% 1,977 2.8% -740 -37.4%
United Kingdom/Ireland 642 0.7% 411 0.6% 231 56.2%
Philippines 1,807 2.1% 2,137 3.0% -330 -15.4%
Malaysia/Singapore 1,539 1.8% 2,263 3.2% -724 -32.0%
Germany 118 0.1% - - 118 N.M.
Consolidated Total 86,081 100.0% 71,541 100.0% 14,540 20.3%
SOURCE Reliv International, Inc.
 back to top
Related links:
http://www.reliv.com/us/investor
Company News On-Call:
http://www.prnewswire.com/comp/103123.html
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, Cameron Associates, Investor Relations,
+1-212-554-5488
|
