Reliv International, Inc. (Nasdaq: RELV), an international manufacturer and network marketer of nutritional supplements and other food technology products, today announced a second consecutive quarter of significantly enhanced results, driven by improvements in its core business. The company earned net income of $177,000 ($.02 per share) in the second quarter, compared to a net loss of $367,000 ($.04 per share) for the same period in 1999.
For the six-months ended June 30, 2000, the company reported a net income of $340,000 ($0.04 per share), versus a net loss of $300,000 ($0.03 per share) for the first six months of 1999.
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Net sales totaled $15.2 million in 2Q2000, down from $19.0 million in the prior-year period, reflecting a planned reduction in contract manufacturing business. Network marketing sales increased by 10% to $10.8 million, for the quarter.
Robert L. Montgomery, President and Chief Executive Officer of Reliv, said, “Our focus on the fundamentals of the business continued to strengthen Reliv’s results across the board. We are particularly pleased to see the way new product sales and international sales are contributing to the company’s positive momentum.”
Reliv ReversAge(TM), a new dietary supplement introduced in the United States this past May, was a strong performer during the second quarter, Montgomery noted. The new product helped boost U.S. network marketing sales by 7%, to $9.2 million, compared to the prior year period.
In addition, sales of nutritional supplements in international markets continued their strong growth trends, Montgomery said. “Reliv’s international business posted a remarkable 34% increase in the second quarter, on top of the 18% growth we experienced during the first quarter this year,” he said. “Our operations in Mexico led the way, with a 150% jump over the second quarter of 1999. Sales growth was also strong in Australia, with an increase of 20% over the prior-year.”
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By GlobalDataAlthough Reliv has substantially reduced its participation in the contract manufacturing market in recent months, its remaining contract business turned a profit, Montgomery said. This profit was the result of Reliv’s ability to improve margins of its contract business.
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 and sports drink mixes. Its proprietary product lines include an extensive line of soy-based products. Reliv International’s common stock trades on The Nasdaq Stock Market® under the symbol RELV.
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 discussed in the Company’s filings with the SEC on forms 10-K and 10-Q.
Consolidated Balance Sheets
June 30 December 31
2000 1999
(Unaudited)
AssetsCurrent Assets:
Cash and cash equivalents $1,539,151 $1,531,700
Accounts and notes receivable, less
allowances of $3,500 in 2000 and
$430,000 in 1999 2,809,730 958,287
Inventories 5,182,162 4,705,462
Other current assets 1,244,107 1,301,148Total current assets 10,775,150 8,496,597
Other assets 1,414,651 1,472,976
Net property, plant and equipment 10,493,996 10,802,245Total Assets $22,683,797 $20,771,818
Liabilities and Stockholders' Equity
Total current liabilities 10,031,600 8,306,965
Capital lease obligations, less current
maturities 226,064 305,081
Long-term debt, less current maturities 5,019,174 4,990,639
Deferred Executive Compensation - SERP 383,279 350,415
Stockholders' equity 7,023,680 6,818,718Total Liabilities and Stockholders' Equity $22,683,797 $20,771,818
Consolidated Statements of Operations
Three months ended June 30 Six Months Ended June 30
2000 1999 2000 1999
(Unaudited) (Unaudited) (Unaudited) (Unaudited)Sales at Retail $20,932,750 $23,714,422 $41,800,132 $47,488,833
Less Distributor
allowances on
product purchases 5,745,941 4,752,259 11,524,950 10,831,359
Net Sales 15,186,809 18,962,163 30,275,182 36,657,474
Costs and expenses:
Cost of products
sold 5,721,333 10,912,666 11,852,530 18,987,398
Distributor
royalties and
discounts 3,865,982 3,680,025 7,698,406 8,190,800
Selling, general
and administrative 5,130,995 4,875,618 9,816,536 9,799,447
Total Costs and
Expenses 14,718,310 19,468,309 29,367,472 36,977,645
Income from
operations 468,499 (506,146) 907,710 (320,171)
Other income (expense):
Interest income 11,634 42,900 25,172 61,700
Interest expense (158,250) (140,295) (325,920) (270,693)
Other incomeexpense (33,022) 10,147 (50,875) 44,380
Income before income
taxes 288,861 (593,394) 556,087 (484,784)
Provision for income
taxes 111,990 (226,289) 216,078 (184,667)
Net Income 176,871 (367,105) 340,009 (300,117)
Earnings per common share
Basic $0.02 ($0.04) $0.04 ($0.03)
Diluted $0.02 ($0.04) $0.03 ($0.03)
Weighted average shares
of common stock and common
stock equivalents outstanding
Basic 9,649,000 9,645,000 9,649,000 9,651,000
Diluted 9,766,000 10,035,000 9,766,000 9,786,000
