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Reliv International Reports Fourth-Quarter and Full-Year Financial Results for 2011

 

CHESTERFIELD, Mo., Feb. 29, 2012 /PRNewswire/ -- Reliv International, Inc. (NASDAQ: RELV), a maker of nutritional supplements that promote optimal health, today reported its financial results for the fourth quarter and full year of 2011.

Fourth-Quarter Results

Reliv reported net sales of $16.9 million for the fourth quarter of 2011, compared with sales of $18.5 million for the fourth quarter of 2010. U.S. sales declined by 13.4 percent for the quarter compared with the same quarter in 2010. International sales for the quarter increased 14.4 percent, led by significant growth in Europe, which reported an increase of 83.9 percent.

Reliv reported net income of $320,000, or $0.03 per diluted share, for the fourth quarter of 2011 compared with net income of $559,000, or $0.05 per diluted share, for the fourth quarter of 2010.  Income from operations for the fourth quarter of 2011 was $471,000 compared with $827,000 in the same quarter of 2010.

Full-Year Results

Reliv reported net sales of $73.9 million for 2011 compared with net sales of $78.7 million in 2010. U.S. net sales decreased from $66.9 million to $60.9 million. Net sales in Reliv's foreign markets for 2011 increased 9.7 percent compared with net sales for 2010. Net sales were particularly strong in Europe, where net sales increased 80.4 percent. Growth in the European market in 2011 was driven by strong increases in new distributor enrollments.

Net income for 2011 was $1.0 million compared with $1.7 million in 2010. Diluted earnings per share were $0.08 in 2011 compared with $0.14 in 2010.

"The financial highlight of 2011 was the increase in sales in Europe," said Robert L. Montgomery, chairman, president and chief executive officer of Reliv. "Our European market set numerous monthly sales records in 2011 after posting double digit growth in 2010. This sustained growth is something we plan to build on in 2012."

"In the United States, we have turned to innovation to jump start sales. The introduction of healthy energy shot 24K™ followed with the innovative 24K VIP program, a customer referral and lead generation initiative, I believe positions us to expand our footprint in the lucrative energy drink market," he said.

"In 2011 Reliv became the first corporate partner of the Missouri Plant Science Center. That partnership has produced LunaRich™, our first Reliv-exclusive nutritional ingredient," Montgomery said. "LunaRich is a unique soy powder, which in comparison to the industry standard, contains five to ten times the amount of soy's key bioactive component."

"We introduced Reliv Now® as the first product to contain LunaRich this February at the 2012 Reliv National Conference in Reno," he said. "Backed by clinical studies, LunaRich has energized our distributor base and given us a new competitive edge in the supplement market. We plan to add LunaRich to additional Reliv products in the coming months."  

"In Reno we also announced that GlucAffect®, Reliv's cutting-edge blood sugar management formula, became the sixth Reliv product to earn a patent," Montgomery said.

"As we work to regain sales momentum in the United States, we are focusing on reducing costs and maintaining our strong balance sheet," he added.  Reliv reported a reduction in selling, general and administrative expenses of $532,000 for the fourth quarter of 2011 and $1.25 million for all of 2011 compared with the prior-year periods.  Reliv had cash and cash equivalents of $7.2 million as of December 31, 2011, an increase of $843,000 from the balance as of December 31, 2010.  Net cash generated from operating activities increased to $2.8 million in 2011 from $2.2 million in 2010.

As of December 31, 2011, Reliv had 57,010 distributors – a decline of 6.1 percent from December 31, 2010 – of which 7,670 are Master Affiliate level and above. Master Affiliate is the level at which distributors are eligible to earn generation royalties.

About Reliv International, Inc.

Reliv International, Inc., based in Chesterfield, Missouri, produces nutritional supplements that promote optimal nutrition along with premium skincare products. Reliv supplements address essential nutrition, weight loss, athletic performance, digestive health, women's health, anti-aging and healthy energy. The company sells its products through an international network marketing system of independent distributors in 15 countries. Learn more about Reliv at www.reliv.com, or on Facebook, Twitter  or YouTube.

Statements made in this news release that are not historical facts are "forward-looking" statements (as defined in the Private Securities Litigation Reform Act of 1995) that involve risks and uncertainties and are subject to change at any time. These forward-looking statements may include, but are not limited to, statements containing words such as "may," "should," "could," "would," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential," "continue" or similar expressions. Factors that could cause actual results to differ are identified in the public filings made by Reliv with the Securities and Exchange Commission. More information on factors that could affect Reliv's business and financial results are included in its public filings made with the Securities and Exchange Commission, including its Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, copies of which are available on the Company's web site, www.reliv.com.

--FINANCIAL HIGHLIGHTS FOLLOW –

Reliv International, Inc. and Subsidiaries







Condensed Consolidated Balance Sheets







December 31,

December 31,


2011

2010


(Unaudited)

(Audited)




Assets



Current assets:



Cash and cash equivalents

$7,174,213

$6,331,038

Accounts receivable,  less allowances of



$70,300 in 2011 and $67,100 in 2010

334,828

291,405

Accounts due from employees and distributors

43,191

55,854

Inventories

4,723,773

5,650,790

Other current assets

1,136,376

916,239

Total current assets

13,412,381

13,245,326




Other assets

1,987,213

1,867,976

Intangible assets, net

1,597,644

1,785,987




Net property, plant and equipment

7,421,947

7,944,412




Total assets

$24,419,185

$24,843,701










Liabilities and stockholders’ equity






Total current liabilities

$6,110,449

$6,387,164

Long-term debt, less current maturities

3,566,175

4,150,770

Other non-current liabilities

256,710

375,244




Total stockholders’ equity

14,485,851

13,930,523




Total liabilities and stockholders’ equity

$24,419,185

$24,843,701






Reliv International, Inc. and Subsidiaries


















Consolidated Statements of Operations













Three months ended December 31,


Year ended December 31,


2011

2010


2011

2010


(Unaudited)

(Unaudited)


(Unaudited)

(Audited)







Product sales

$15,007,686

$16,474,506


$65,701,343

$70,033,580

Handling & freight income

1,877,845

2,052,935


8,178,557

8,714,808







Net sales

16,885,531

18,527,441


73,879,900

78,748,388







Costs and expenses:






Cost of products sold

3,468,769

3,645,518


15,105,416

15,738,885

Distributor royalties and commissions

6,312,062

6,889,546


27,629,167

29,450,171

Selling, general and administrative

6,634,021

7,165,656


29,400,219

30,652,045







Total costs and expenses

16,414,852

17,700,720


72,134,802

75,841,101







Income from operations

470,679

826,721


1,745,098

2,907,287







Other income (expense):






Interest income

7,662

12,410


40,508

47,744

Interest expense

(33,618)

(46,649)


(138,967)

(205,985)

Other income

10,635

54,518


24,518

76,110







Income before income taxes

455,358

847,000


1,671,157

2,825,156

Provision for income taxes

135,000

288,000


623,000

1,142,000







Net income

$320,358

$559,000


$1,048,157

$1,683,156







Earnings per common share - Basic

$0.03

$0.05


$0.08

$0.14

Weighted average shares

12,409,000

12,389,000


12,429,000

12,382,000







Earnings per common share - Diluted

$0.03

$0.05


$0.08

$0.14

Weighted average shares

12,410,000

12,389,000


12,429,000

12,383,000







Cash dividends declared per common share

$0.01

$0.02


$0.04

$0.04














Reliv International, Inc. and Subsidiaries

























Net sales by Market





(in thousands)










Three months ended December 31,


Change From

Prior Year


2011


2010



Amount

% of sales


Amount

% of sales


Amount

%










United States

13,444

79.6%


15,518

83.8%


(2,074)

-13.4%

Australia/New Zealand

597

3.5%


624

3.4%


(27)

-4.3%

Canada

470

2.8%


525

2.8%


(55)

-10.5%

Mexico

219

1.3%


328

1.8%


(109)

-33.2%

Europe

1,175

7.0%


639

3.4%


536

83.9%

Asia

981

5.8%


893

4.8%


88

9.9%










Consolidated total

16,886

100.0%


18,527

100.0%


(1,641)

-8.9%










Net sales by Market









(in thousands)










Year ended December 31,


Change From

Prior Year


2011


2010



Amount

% of sales


Amount

% of sales


Amount

%










United States

60,884

82.4%


66,896

85.0%


(6,012)

-9.0%

Australia/New Zealand

2,374

3.2%


2,548

3.2%


(174)

-6.8%

Canada

2,139

2.9%


2,159

2.8%


(20)

-0.9%

Mexico

1,201

1.6%


1,435

1.8%


(234)

-16.3%

Europe

3,753

5.1%


2,080

2.6%


1,673

80.4%

Asia

3,529

4.8%


3,630

4.6%


(101)

-2.8%










Consolidated total

73,880

100.0%


78,748

100.0%


(4,868)

-6.2%










The following table sets forth, as of December 31, 2011 and 2010, 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












Change From

Prior Year


As of 12/31/2011


As of 12/31/2010



Active Distributors

Master Affiliates and Above


Active Distributors

Master Affiliates and Above


Active Distributors

Master Affiliates and Above













United States

43,280

6,080


47,450

6,990


-8.8%

-13.0%

Australia/New Zealand

1,950

170


2,210

190


-11.8%

-10.5%

Canada

1,300

220


1,380

200


-5.8%

10.0%

Mexico

1,260

220


1,850

300


-31.9%

-26.7%

Europe

3,850

430


2,170

300


77.4%

43.3%

Asia

5,370

550


5,680

620


-5.5%

-11.3%










Consolidated total

57,010

7,670


60,740

8,600


-6.1%

-10.8%





















SOURCE Reliv International, Inc.

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http://www.reliv.com