CHESTERFIELD, Mo., Feb. 27, 2008 (PRIME NEWSWIRE) -- Reliv International, Inc. (Nasdaq:RELV), a wellness and direct selling company, today reported net sales for the fourth quarter of $24.6 million, compared to $28.6 million in the same quarter of 2006.
Net income for the fourth quarter equaled $697,000 or $0.04 per diluted share, compared to net income of $2.0 million or $0.12 per diluted share in the fourth quarter of 2006.
Reliv reported U.S. sales of $21.1 million for the fourth quarter, compared to $25.4 million for the same quarter in 2006. International net sales (sales outside of the U.S.) equaled $3.5 million compared to $3.2 million for the fourth quarter of 2006.
Net sales for 2007 equaled $111.1 million compared to $117.5 million for 2006. Net income for 2007 was $5.0 million or $0.31 per diluted share, compared to net income of $7.9 million or $0.47 per diluted share in 2006. International net sales for the year rose approximately 9 percent to $12.7 million due primarily to the weakening U.S. dollar.
Reliv's distributor base ended the year at 69,970, representing a 7.7 percent increase over the size of the distributor base on Dec. 31, 2006.
"We are not pleased with our performance in 2007," said Robert L. Montgomery, chairman, president and chief executive officer. "For the full year, we saw fewer distributor advancements and a resulting decline in the size of our average order. We need to reverse these trends in 2008 in order to achieve top-line and bottom-line growth," he said.
"To boost sales and sponsoring, we are actively encouraging the increased use of sales tools by our field," Montgomery said. "The sales tools include a new issue of Success from Home magazine that was launched last month, and a newspaper-style publication for use at this time mainly outside of the United States," he added.
"We also are sending our management team to special events around the United States to provide better support to distributors and to gain a more personal, effective understanding of their businesses," he said. "We believe this will help motivate distributors to expand their businesses and achieve advancements more quickly."
Reliv's balance sheet remains solid. The company had $12.1 million in cash, cash equivalents and short-term investments as of Dec. 31, 2007. Reliv has no long-term debt. Cash from operations in 2007 was $4.8 million.
"Our success is built on two basic foundations," Montgomery said. "One, we make nutrition simple by providing superb, proprietary nutritional supplements. Two, we offer distributors an outstanding business opportunity."
"In addition, we still have tremendous growth opportunities in our existing markets. In 2008, Reliv reaches its 20th anniversary," Montgomery said. "We are focused on making this a special year by helping our distributors succeed through initiatives to increase retail sales and sponsorship."
Reliv will host a conference call to discuss the fourth-quarter and full-year 2007 earnings with investors at 1:00 p.m. Eastern Time on Feb. 27, 2008. The dial-in number for investors is 888-680-0879. The participant passcode is 25881517. 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 the passcode 18905001. 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/EN/Conference%20Calls%20Presentations.html. An online archive of the broadcast will be available on Reliv's Web site in the Investor Relations section 24 hours after the call concludes.
About Reliv
Reliv International, Inc., based in suburban St. Louis, Mo., 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 sells its products through an international network marketing system of approximately 70,000 independent distributors. Additional information about Reliv International, Inc. can be obtained on the Web at www.reliv.com.
Condensed Consolidated Balance Sheets
December 31, December 31,
2007 2006
(Unaudited) (Audited)
-------------------------
Assets
Current assets:
Cash and cash equivalents $11,694,699 $9,332,810
Short-term investments 398,592 7,864,000
Accounts and notes receivable, less
allowances of $8,300 in 2007 and
$6,200 in 2006 811,634 669,379
Accounts due from employees
and distributors 204,705 223,246
Inventories 6,179,238 4,778,221
Other current assets 1,798,932 1,977,522
-------------------------
Total current assets 21,087,800 24,845,178
Other assets 2,999,903 2,639,537
Accounts due from employees
and distributors 319,883 362,959
Net property, plant and equipment 9,199,185 9,434,546
-------------------------
Total assets $33,606,771 $37,282,220
=========================
Liabilities and stockholders' equity
Total current liabilities $8,574,257 $8,615,256
Other non-current liabilities 1,227,313 933,113
Total stockholders' equity 23,805,201 27,733,851
-------------------------
Total liabilities and stockholders' equity $33,606,771 $37,282,220
=========================
Consolidated Statements of Operations
Three months ended Year ended
December 31, December 31,
2007 2006 2007 2006
(Unaudited) (Unaudited) (Unaudited) (Audited)
------------------------ -------------------------
Product sales $22,014,462 $25,685,242 $99,465,246 $105,497,420
Handling &
freight income 2,633,702 2,958,093 11,592,258 11,969,737
------------------------ -------------------------
Net sales 24,648,164 28,643,335 111,057,504 117,467,157
Costs and
expenses:
Cost of
products sold 4,319,638 4,763,607 19,100,527 19,519,904
Distributor
royalties and
commissions 9,840,619 11,419,767 44,298,744 47,127,026
Selling,
general and
administrative 9,393,401 9,553,099 40,363,322 38,716,529
------------------------ -------------------------
Total costs
and expenses 23,553,658 25,736,473 103,762,593 105,363,459
------------------------ -------------------------
Income from
operations 1,094,506 2,906,862 7,294,911 12,103,698
Other income
(expense):
Interest income 135,542 212,475 634,446 692,595
Interest
expense (641) (2,728) (1,373) (50,156)
Other income 45,591 74,727 314,131 256,966
------------------------ -------------------------
Income before
income taxes 1,274,998 3,191,336 8,242,115 13,003,103
Provision for
income taxes 578,000 1,168,000 3,201,000 5,105,000
------------------------ -------------------------
Net income $696,998 $2,023,336 $5,041,115 $7,898,103
======================== =========================
Earnings per
common share
- Basic $0.04 $0.12 $0.31 $0.48
======================== =========================
Weighted average
shares 15,882,000 16,686,000 16,094,000 16,465,000
======================== =========================
Earnings per
common share
- Diluted $0.04 $0.12 $0.31 $0.47
======================== =========================
Weighted
average shares 15,977,000 16,812,000 16,303,000 16,727,000
======================== =========================
Cash dividends
declared per
common share $0.050 $0.050 $0.100 $0.100
======================== =========================
Net sales by Market
(in thousands)
Three months ended December 31, Change From
2007 2006 Prior Year
% of % of
Amount sales Amount sales Amount %
-------------- --------------- ---------------
United States 21,132 85.7% 25,408 88.7% (4,276) -16.8%
Australia/
New Zealand 854 3.5% 695 2.4% 159 22.9%
Canada 437 1.8% 403 1.4% 34 8.4%
Mexico 372 1.5% 423 1.5% (51) -12.1%
United Kingdom/
Ireland 281 1.1% 320 1.1% (39) -12.2%
Philippines 834 3.4% 595 2.1% 239 40.2%
Malaysia/Singapore 592 2.4% 508 1.8% 84 16.5%
Germany 146 0.6% 291 1.0% (145) -49.8%
-------------- --------------- ---------------
Consolidated Total 24,648 100.0% 28,643 100.0% (3,995) -13.9%
============== =============== ===============
Net sales by Market
(in thousands)
Year ended December 31, Change From
2007 2006 Prior Year
% of % of
Amount sales Amount sales Amount %
-------------- --------------- ---------------
United States 98,348 88.5% 105,784 90.0% (7,436) -7.0%
Australia/
New Zealand 2,944 2.7% 2,550 2.2% 394 15.5%
Canada 1,634 1.5% 1,638 1.4% (4) -0.2%
Mexico 1,526 1.4% 1,433 1.2% 93 6.5%
United Kingdom/
Ireland 1,062 1.0% 1,235 1.1% (173) -14.0%
Philippines 2,942 2.6% 2,198 1.9% 744 33.8%
Malaysia/Singapore 1,765 1.5% 1,805 1.5% (40) -2.2%
Germany 837 0.8% 824 0.7% 13 1.6%
-------------- --------------- ---------------
Consolidated Total 111,058 100.0% 117,467 100.0% -6,409 -5.5%
============== =============== ===============
The following table sets forth, as of December 31, 2007 and 2006, 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
As of As of
12/31/2007 12/31/2006 Change in %
Master Master Master
Active Affil- Active Affil- Active Affil-
Distri- iates Distri- iates Distri- iates
butors and butors and butors and
Above Above Above
-------------- --------------- ---------------
United States 56,920 13,890 52,880 16,580 7.6% -16.2%
Australia/
New Zealand 2,450 280 2,460 300 -0.4% -6.7%
Canada 1,140 180 1,170 180 -2.6% 0.0%
Mexico 1,430 220 1,130 240 26.5% -8.3%
United Kingdom/
Ireland 780 120 910 160 -14.3% -25.0%
Philippines 4,530 400 3,430 370 32.1% 8.1%
Malaysia/Singapore 2,170 350 2,560 410 -15.2% -14.6%
Germany 550 150 420 130 31.0% 15.4%
-------------- --------------- ---------------
Consolidated total 69,970 15,590 64,960 18,370 7.7% -15.1%
============== =============== ===============