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Reliv International Reports Fourth-Quarter and Full-Year Financial Results for 2009

Thursday, February 25, 2010 General News J E 4
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CHESTERFIELD, Mo., Feb. 25 /PRNewswire-FirstCall/ -- Reliv International, Inc. (Nasdaq: RELV), a nutrition and direct selling company, today reported its fourth-quarter and full-year 2009 earnings.  Earnings per share increased in the fourth quarter of 2009 compared to the same quarter in 2008.

Fourth-quarter results

Net sales for the fourth quarter of 2009 equaled $20.7 million, a decline of 6.5 percent compared to the fourth quarter of 2008.  Net sales in the United States for the fourth quarter of 2009 totaled $17.8 million, a decline of 8.7 percent compared to the same quarter in 2008.  Sales outside of the U.S. rose 9.6 percent in the quarter to $2.9 million.  Approximately 75 percent of the increase in international sales was due to foreign currency fluctuations.

Net income for the quarter more than tripled to $769,000 compared to $250,000 for the same period of 2008.  Earnings per share increased from $0.02 to $0.06 in the respective quarters.  Both net income and earnings per share in the fourth quarter of 2008 were reduced by investment losses on a private equity fund and other investments.

Income from operations in the fourth quarter equaled $1.1 million, a decline of 18.2 percent compared to the fourth quarter of 2008.

Full-year results

Net sales for 2009 were $85.4 million compared to $98.2 million in 2008.  U.S. net sales in 2009 totaled $75.0 million, down 12.1 percent compared to 2008 net sales.  International net sales, at $10.4 million, were down 19.2 percent in 2009 compared to 2008.  Approximately 50 percent of the decrease was due to currency fluctuations.

Net income for 2009 equaled $2.5 million or $0.20 per diluted share, compared to $2.9 million or $0.19 per diluted share in 2008.  Earnings per share in 2009 benefited from a significant repurchase of stock during the year.  Earnings per share and net income in 2008, as noted above, were reduced by investment losses.

Net cash generated from operating activities in 2009 was $5.5 million compared to $3.7 million for 2008.  Reliv had cash and cash equivalents of $5.8 million as of Dec. 31, 2009.

New distributor enrollments were up for both the fourth quarter and the full year of 2009.  Quarterly enrollments rose nearly 19 percent compared to the fourth quarter of 2008.  For 2009, new enrollments rose approximately 9.4 percent over sponsoring in 2008.

As of Dec. 31, 2009, Reliv had approximately 67,940 distributors, up approximately 1 percent from Dec. 31, 2008.  The number of U.S. distributors as of Dec. 31, 2009, was 54,040, representing a 1.1 percent increase from the end of 2008.  Reliv distributors outside of the United States totaled 13,900 as of Dec. 31, 2009, up slightly compared to Dec. 31, 2008.

Robert L. Montgomery, chairman, president and chief executive officer, said, "The recession continued to negatively affect our distributors and customers in the fourth quarter, but the impact wasn't as dramatic as in the first three quarters of the year."

Montgomery said, "We slowed the rate of our sales decline significantly in the fourth quarter, reflecting a smaller decline in the size of average orders in the quarter.  Our goal, of course, is to turn that into growth in 2010," he added.  

"We have a stable and slightly growing distributor base," Montgomery said.  "We've kept costs under control so that when sales increase, we should see a solid increase in net income as well.  I'm confident in our 2010 growth strategy to increase our brand awareness by emphasizing the role of Reliv supplements in living a healthy, active lifestyle."  

Montgomery said, "The basics of our business remain strong.  Reliv makes nutrition simple.  Our science-based nutritional supplements are second to none, and we offer our distributors an outstanding business opportunity."

Reliv will host a conference call to discuss fourth-quarter and year-end earnings with investors at 2:00 p.m. Eastern Time on February 25th.  The dial-in number for investors is 866-510-0707.  The participant passcode is 96177508.  To register, please call in 15 minutes prior to start of the call.  A replay of this call will be available beginning today at 4 p.m. Eastern for one week by telephone calling 888-286-8010 and using the passcode 97161311.  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 Chesterfield, Mo., is a developer, manufacturer and marketer of a proprietary line of nutritional supplements.  Reliv supplements address essential daily nutrition, weight loss and targeted solutions such as energy and performance enhancement, digestive health, women's health and anti-aging.  Reliv sells its products through an international network marketing system of 67,940 independent distributors.  Additional information about Reliv International, Inc. can be obtained on the Web at www.reliv.com.

    
    
                        --FINANCIAL HIGHLIGHTS FOLLOW –
    
    Reliv International, Inc. and Subsidiaries         
                                                        
    Condensed Consolidated Balance Sheets              
                                                        
                                           December 31,      December 31,
                                                   2009              2008
                                             (Unaudited)         (Audited)
                                          ---------------------------------
                                                        
    Assets                                             
    Current assets:                                    
      Cash and cash equivalents              $5,760,913        $4,460,637
      Accounts and notes receivable, 
       less allowances of $59,700 in
       2009 and $10,200 in 2008                 326,022           494,689
      Accounts due from employees and
       distributors                              78,500           241,532
      Inventories                             5,084,404         6,221,954
      Other current assets                      979,333         2,176,802
                                          ---------------------------------
    Total current assets                     12,229,172        13,595,614
                                                        
    Other assets                              1,569,079         1,220,546
    Accounts due from employees
     and distributors                                 -           164,462
    Intangible assets, net                    1,991,497                 - 
                                                        
    Net property, plant and equipment         8,364,685         8,912,157
                                          ---------------------------------
    
    Total assets                            $24,154,433       $23,892,779
                                          ================================= 
                                                        
                                                        
    Liabilities and stockholders' equity               
                                                        
    Total current liabilities                $6,761,481        $7,350,199
    Long-term debt, less current
     maturities                               4,719,542                 - 
    Other non-current liabilities               406,544           434,990
                                                        
    Total stockholders' equity               12,266,866        16,107,590
                                          ---------------------------------
                                                        
    Total liabilities and
     stockholders' equity                   $24,154,433       $23,892,779
                                          ================================= 
    
    
    Reliv International, Inc. and Subsidiaries        
                                             
    Consolidated Statements of Operations  
     
                                  Three months ended        Year ended    
                                     December 31,           December 31,
                                   2009       2008        2009        2008
                               (Unaudited)(Unaudited) (Unaudited)  (Audited)
                              ----------------------- -----------------------
                                             
    Product sales             $18,328,386 $19,629,188 $75,845,599 $87,348,915
    Handling & freight
     income                     2,341,037   2,473,727   9,553,471  10,845,903
                               ----------------------  ----------------------
    Net sales                  20,669,423  22,102,915  85,399,070  98,194,818
                                             
    Costs and expenses:                     
      Cost of products sold     4,061,813   4,026,823  16,862,622  17,437,133
      Distributor royalties
       and commissions          7,691,726   8,342,155  32,172,148  38,207,889
      Selling, general and
       administrative           7,832,051   8,408,865  32,557,704  36,881,041
                               ----------------------  ----------------------
    Total costs and expenses   19,585,590  20,777,843  81,592,474  92,526,063
                               ----------------------  ----------------------
                                             
    Income from operations      1,083,833   1,325,072   3,806,596   5,668,755
                                             
    Other income (expense):                 
      Interest income               6,754      28,164      52,292     328,057
      Interest expense            (60,738)     (5,922)   (173,867)    (37,327)
      Loss on limited
       partnership investment           -    (335,520)          -    (595,887)
      Other income (expense)       97,513        (875)    300,260      30,353
                               ----------------------  ----------------------
    Income before income taxes  1,127,362   1,010,919   3,985,281   5,393,951
    Provision for income taxes    358,000     761,000   1,470,000   2,513,000
                               ----------------------  ----------------------
                                             
    Net income                   $769,362    $249,919  $2,515,281  $2,880,951
                               ======================  ======================
    
    Earnings per common share
     - Basic                        $0.06       $0.02       $0.20       $0.19
                               ======================  ======================
    Weighted average shares    12,230,000  14,367,000  12,894,000  15,213,000
                               ======================  ======================
    Earnings per common share
     - Diluted                      $0.06       $0.02       $0.20       $0.19
                               ======================  ======================
    Weighted average shares    12,230,000  14,369,000  12,894,000  15,223,000
                               ======================  ======================
    
    Cash dividends declared
     per common share               $0.02       $0.05       $0.07       $0.10
                               ======================  ======================
    
    
    Reliv International, Inc. and Subsidiaries 
                           
    Net sales by Market   
    (in thousands)        
                         Three months ended December 31,      Change From    
                           2009               2008             Prior Year  
                    Amount  % of sales   Amount % of sales   Amount      %
                    ------------------   -----------------  ----------------
                           
    United States   17,760     85.9%    19,448     88.0%    (1,688)    -8.7%
    Australia/
     New Zealand       787      3.8%       585      2.6%       202     34.5%
    Canada             472      2.3%       359      1.6%       113     31.5%
    Mexico             353      1.7%       274      1.2%        79     28.8%
    Europe             408      2.0%       302      1.4%       106     35.1%
    Asia               889      4.3%     1,135      5.2%      (246)   -21.7%
                    ----------------    ----------------    ---------------- 
    Consolidated
     total          20,669    100.0%    22,103    100.0%    (1,434)    -6.5%
                    ================    ================    ================
                           
    
    Net sales by Market   
    (in thousands)        
                           Year ended December 31,            Change From
                           2009               2008             Prior Year  
                    Amount  % of sales   Amount % of sales   Amount      %
                    ------------------   -----------------  ----------------
                           
    United States   75,041     87.9%    85,382     87.0%   (10,341)   -12.1%
    Australia/
     New Zealand     2,459      2.9%     2,681      2.7%      (222)    -8.3%
    Canada           1,548      1.8%     1,660      1.7%      (112)    -6.7%
    Mexico           1,371      1.6%     1,543      1.6%      (172)   -11.1%
    Europe           1,335      1.5%     1,528      1.5%      (193)   -12.6%
    Asia             3,645      4.3%     5,401      5.5%    (1,756)   -32.5%
                    ----------------    ----------------    ---------------- 
    Consolidated
     total          85,399    100.0%    98,195    100.0%   (12,796)   -13.0%
                    ================    ================    ================

The following table sets forth, as of December 31, 2009 and 2008, 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 12/31/2009    As of 12/31/2008       Change in %
                             Master               Master              Master 
                           Affiliates           Affiliates          Affiliates
                    Active     and      Active     and      Active      and
                Distributors  Above  Distributors Above  Distributors  Above
                -------------------- ------------------- --------------------
    
    United States   54,040     8,640    53,450    10,910      1.1%    -20.8%
    Australia/
     New Zealand     2,540       210     2,390       240      6.3%    -12.5%
    Canada           1,170       140     1,260       170     -7.1%    -17.6%
    Mexico           2,200       260     1,480       240     48.6%      8.3%
    Europe           1,150       180     1,100       200      4.5%    -10.0%
    Asia             6,840       720     7,660     1,040    -10.7%    -30.8%
                -------------------- ------------------- -------------------- 
    Consolidated
     total          67,940    10,150    67,340    12,800      0.9%    -20.7%
                ==================== =================== ==================== 
                           

SOURCE Reliv International, Inc.

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