CHESTERFIELD, Mo., Nov. 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 ending September 30, 2004 and
for the first nine months of the year.
The company posted a 23 percent increase in worldwide net sales during the
third quarter of 2004, totaling $24.17 million - compared to sales of
$19.61 million in 3Q 2003. Net income available to common shareholders
advanced 6 percent to $1.26 million, or $0.08 per share basic ($0.07 per share
diluted) in the third quarter, up from $1.19 million, or $0.08 per share basic
($0.07 per share diluted) in 3Q 2003. Third quarter earnings were impacted by
certain one-time costs associated with the adoption of the documentation and
testing of internal controls requirements of the Sarbanes-Oxley Act.
This provision in the Sarbanes-Oxley Act ("Act") was intended to be a key
initiative to provide shareholders and the investing public greater confidence
in the accuracy and quality of the financial information provided by
companies. Although it has placed an enormous burden on small cap companies,
such as Reliv, the company supports the principles behind the Act. However,
the cost associated in meeting the Act's requirements have been substantial.
During the third quarter of 2004, the company spent an additional $630,000 on
accounting and related fees than it did in the prior year quarter. Most of
those additional expenses related to the work performed on the internal
control documentation and testing as required under the Act. Through nine
months of 2004, the company has spent an additional $930,000 on accounting and
related fees than it did during the same period in 2003. Many of these
expenses will be one-time costs, as part of the first year start up and
documentation.
For the first nine months of 2004, Reliv produced a 28 percent increase in
net sales, to $71.54 million, compared to $56.05 million during the first nine
months of 2003. Net income available to common shareholders grew to
$4.09 million -- or $0.26 per share basic ($0.24 per share diluted). This
represents a 33 percent increase over the earnings generated during the first
nine months of 2003.
Strong sales growth in the United States, the company's largest geographic
market, set the pace for Reliv's results in 3Q 2004. Net sales in the U.S.
increased 23 percent in 3Q 2004 compared to the same period last year. Year-
to-date net sales have grown 29 percent in the U.S. versus 2003. Reliv also
reported a 27 percent increase in net sales from its international markets
during the third quarter, led by solid growth in Malaysia, Singapore, Canada,
Australia and New Zealand.
Robert L. Montgomery, President and Chief Executive Officer of Reliv,
said, "Despite a challenging economy, our sales growth in key markets
continues to be quite vigorous. In fact, we have produced sales growth of at
least 20 percent in the United States for ten quarters in a row now.
Importantly, these results are being generated without major product
introductions or new lines of business. We've shown that we can grow at a
very attractive rate, simply by focusing on the fundamentals of our business."
According to Mr. Montgomery, Reliv's International Conference in August
attracted about 6,000 independent Reliv distributors from around the world --
making it the largest such event in the company's history. Reliv's
distributor development activities also continue to fare well in 2004, Mr.
Montgomery said, with total Master Affiliates up 31 percent worldwide on
September 30, 2004, compared to the number who had earned that designation
through the first nine months of 2003.
The company also announced a new clinical trial program that will submit
several of its core products, as well as new products now in development, to
independent laboratory testing. A principal goal of this program is to
establish clinical evidence of the safety and efficacy of Reliv's products,
according to Dr. Carl W. Hastings, Reliv Vice President and Chief Food
Scientist.
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 third quarter and
first nine months earnings with institutional investors at 1:00 p.m. Eastern
Standard Time on November 3, 2004.
The dial-in number for institutional investors is 800-399-3409, conference
code 1770063.
A 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 1770063. 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.
Consolidated Balance Sheets
September 30 December 31
2004 2003
(Unaudited)
Assets
Current Assets:
Cash and cash
equivalents $9,143,714 $7,902,508
Accounts and notes
receivable, less
allowances of
$7,600 in 2004 and
$8,600 in 2003 711,707 751,887
Accounts due from
employees and
distributors 106,706 72,846
Inventories 6,166,423 4,670,319
Other current assets 1,807,476 1,024,103
Total current assets 17,936,026 14,421,663
Other assets 1,117,747 793,091
Accounts due from
employees and
distributors 185,294 52,291
Net property, plant
and equipment 10,075,958 9,413,871
Total Assets $29,315,025 $24,680,916
Liabilities and
Stockholders' Equity
Total current
liabilities 9,055,983 7,165,368
Long-term debt, less
current maturities 3,439,111 3,700,138
Deferred income taxes 77,000 77,000
Other non-current
liabilities 901,198 666,032
Stockholders' equity 15,841,733 13,072,378
Total Liabilities and
Stockholders' Equity $29,315,025 $24,680,916
Consolidated Statements of Operations
Three months ended Nine months ended
September 30 September 30
2004 2003 2004 2003
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Sales at Retail $34,654,446 $27,160,056 $102,794,387 $79,424,022
Less Distributor
allowances on
product purchases 10,482,388 7,546,330 31,253,292 23,372,199
Net Sales 24,172,058 19,613,726 71,541,095 56,051,823
Costs and expenses:
Cost of products
sold 4,139,646 3,300,127 11,994,551 9,616,540
Distributor
royalties and
commissions 9,534,381 7,599,097 28,417,457 21,768,802
Selling, general
and administrative 8,433,789 6,675,449 24,269,000 19,368,226
Total Costs and
Expenses 22,107,816 17,574,673 64,681,008 50,753,568
Income from
operations 2,064,242 2,039,053 6,860,087 5,298,255
Other income
(expense):
Interest income 28,849 22,753 77,202 62,657
Interest expense (65,621) (50,422) (177,523) (188,430)
Other income\expense 43,662 16,269 65,880 77,773
Income before income
taxes 2,071,132 2,027,653 6,825,646 5,250,255
Provision for income
taxes 807,000 815,000 2,719,000 2,129,000
Net Income 1,264,132 1,212,653 4,106,646 3,121,255
Preferred dividends
accrued and paid - 19,516 12,292 42,016
Net income available
to common
shareholders $1,264,132 $1,193,137 $4,094,354 $3,079,239
Earnings per common
share - Basic $0.08 $0.08 $0.26 $0.21
Weighted average
shares 15,864,000 14,956,000 15,473,000 14,954,000
Earnings per common
share - Diluted $0.07 $0.07 $0.24 $0.18
Weighted average
shares 16,974,000 17,120,000 17,069,000 16,956,000
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:
David G. Kreher, Chief Financial Officer,
+1-636-537-9715, or Fred A. Nielson, Investor Relations,
+1-636-733-1314, both of Reliv International, Inc.; or Al Palombo
of Cameron Associates, +1-212-554-5488
|
