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.
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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.
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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.