CHESTERFIELD, Mo., Aug. 9, 2019 /PRNewswire/ -- Reliv
International, Inc. (NASDAQ:RELV), a maker of nutritional
supplements that promote optimal health, today reported its
financial results for the second quarter of 2019 and announced the
formal launch of its RLV line of hemp-extract products at its
recent distributor conference in suburban Chicago.
Reliv reported net sales of $8.3
million for the second quarter of 2019 compared with net
sales of $8.5 million in the second
quarter of 2018. Net sales in the
United States decreased to $5.9
million in the second quarter of 2019, which represented a
6.8 percent decline in net sales when compared to the prior-year
quarter. Net sales in Reliv's foreign markets increased 10.8
percent in the second quarter of 2019 compared with the prior-year
quarter. Increases in net sales in Asia and Mexico were 82.7% and 36.6%, respectively, in
the second quarter of 2019, offset by a decrease in net sales in
Europe of 26.7%, along with
decreases in other regions.
Reliv reported a net loss for the second quarter of 2019 of
$388,000 (loss per diluted share of
$0.22) compared to a net loss of
$978,000 (loss per diluted share of
$0.53) in the second quarter of 2018.
The loss from operations for the second quarter of 2019 was
$366,000 compared to a loss from
operations of $940,000 in the same
period in 2018. Results from operations in the second quarter
of 2019 improved from the prior-year quarter as selling, general
and administrative ("SGA") expenses decreased by $527,000 to $3.7
million in the second quarter of 2019 compared to
$4.2 million in the prior-year
quarter; however, the decline in sales did not permit us to reach
profitability in the quarter.
Net sales for the first six months of 2019 were $17.7 million, which represented a 3.9 percent
decrease from the same period in 2018. Net sales in
the United States decreased by 7.1
percent and net sales in Reliv's foreign markets increased by 6.1
percent in the first half of 2019 compared with the first half of
last year. Net sales in Reliv's foreign markets increased by
9.8 percent during the first half of 2019 when the impact of
foreign currency fluctuation is removed.
Reliv reported net income of $236,000, or $0.13
per diluted share in the first six months of 2019, compared to a
net loss of $1.2 million or
$0.66 per diluted share in the same
period of 2018. SGA expenses decreased to $7.4 million in the first six months of 2019
compared to $8.7 million in the
prior-year period.
Reliv had cash and cash equivalents of $1.9 million as of June
30, 2019, compared to $2.0
million as of December 31,
2018. Net cash used in operating activities was $644,000 in the first six months of
2019.
As of June 30, 2019, Reliv had
32,870 distributors and preferred customers – an increase of 5.6
percent from June 30, 2018 – of which
2,980 are Master Affiliate level and above. The number of
Master Affiliates decreased by 6.9 percent compared to the year-ago
total. Master Affiliate is the level at which distributors
are eligible to earn generation royalties.
At its recent distributor conference in suburban Chicago, Reliv formally introduced its RLV
line of hemp-extract products. Initially, the RLV line
includes three liquid tinctures and one balm. All of the RLV
products are derived from organically-grown, non-GMO
hemp.
"This is our most exciting product launch in a number of years,"
commented Ryan A. Montgomery, Chief
Executive Officer. "The RLV line is our introduction into a
rapidly evolving and growing market that has the ability to propel
our business for years to come."
In international operations, sales and distributor activity in
the Philippines continues to grow
at a rate that has resulted in the
Philippines becoming our second largest market. "Our
growth continues in the
Philippines at a phenomenal pace, driven by a broad-based
increase in the number of new distributors and preferred customers
and in the sales of our Reliv Now for Kids product," noted
Montgomery. Net sales in the
Philippines grew by 98.7% in local currency in the second
quarter of 2019, compared to the prior-year quarter, as the active
distributor and preferred customer and Master Affiliate counts
across all of the Asia markets
increased by 91% and 47%, respectively. "The activity level
and momentum in the Philippines
has been exciting. We are looking for that growth to cross into
other markets in our Asia-Pacific
region and elsewhere in the Reliv world," said Montgomery.
About Reliv International, Inc.
Reliv International,
based in Chesterfield, MO,
produces nutritional supplements that promote optimal
nutrition. Reliv supplements address core nutrition and
targeted solutions. Reliv is the exclusive provider of LunaRich®
products, which optimize levels of lunasin, a soy peptide that
works at the epigenetic level to promote optimal health. The
company sells its products through an international network
marketing system of independent distributors in 14 countries. Learn
more about Reliv at reliv.com, or
on Facebook, Twitter or Instagram.
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,
reliv.com.
For more information, contact:
Steve Albright
Chief Financial Officer
(636) 733-1305
--FINANCIAL HIGHLIGHTS FOLLOW –
|
Reliv
International, Inc. and Subsidiaries
|
|
|
Condensed
Consolidated Balance Sheets
|
|
|
June 30
|
December
31
|
|
|
|
|
2019
|
2018
|
|
|
|
|
(Unaudited)
|
(Audited)
|
|
|
|
|
Assets
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$1,918,721
|
$1,989,974
|
|
|
|
|
Accounts receivable,
less allowances of $5,000 in 2019 and 2018
|
235,030
|
400,759
|
|
|
|
|
Notes & accounts
receivables & deposits - related parties
|
1,027,126
|
151,222
|
|
|
|
|
Inventories
|
2,709,155
|
2,954,947
|
|
|
|
|
Assets held for
sale
|
-
|
2,124,939
|
|
|
|
|
Other current
assets
|
766,034
|
464,165
|
|
|
|
|
|
|
|
|
|
|
Total current
assets
|
6,656,066
|
8,086,006
|
|
|
|
|
|
|
|
|
|
|
Notes & accounts
receivables - related parties
|
2,490,528
|
1,282,072
|
|
|
|
|
Other
assets
|
3,085,908
|
2,287,237
|
|
|
|
|
Net property, plant
and equipment
|
4,569,237
|
4,698,550
|
|
|
|
|
|
|
|
|
|
|
Total
Assets
|
$16,801,739
|
$16,353,865
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable,
accruals & other current liabilities
|
$3,937,133
|
$3,915,390
|
|
|
|
|
Revolving line of
credit
|
500,000
|
-
|
|
|
|
|
Other noncurrent
liabilities
|
626,701
|
445,611
|
|
|
|
|
Stockholders'
equity
|
11,737,905
|
11,992,864
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and
Stockholders' Equity
|
$16,801,739
|
$16,353,865
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Statements of Operations
|
|
|
|
|
|
|
Three months ended
June 30
|
|
Six months ended June
30
|
|
2019
|
2018
|
|
2019
|
2018
|
|
(Unaudited)
|
(Unaudited)
|
|
(Unaudited)
|
(Unaudited)
|
|
Product
sales
|
$7,603,041
|
$7,920,596
|
|
$16,414,038
|
$17,311,977
|
|
Freight
income
|
479,881
|
539,145
|
|
999,822
|
1,151,003
|
|
Other
revenue
|
174,091
|
-
|
|
332,657
|
-
|
|
|
|
|
|
|
|
Net Sales
|
8,257,013
|
8,459,741
|
|
17,746,517
|
18,462,980
|
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
|
|
Cost of goods
sold
|
2,268,992
|
2,356,274
|
|
4,702,723
|
4,706,016
|
|
Distributor
royalties and commissions
|
2,665,093
|
2,827,357
|
|
5,782,665
|
6,219,102
|
|
Selling,
general and administrative
|
3,688,944
|
4,215,641
|
|
7,428,472
|
8,701,536
|
|
|
|
|
|
|
|
Total Costs and
Expenses
|
8,623,029
|
9,399,272
|
|
17,913,860
|
19,626,654
|
|
|
|
|
|
|
|
Loss from
operations
|
(366,016)
|
(939,531)
|
|
(167,343)
|
(1,163,674)
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
Interest
income
|
46,218
|
23,547
|
|
95,480
|
47,499
|
|
Interest
expense
|
(10,075)
|
(45,222)
|
|
(15,487)
|
(76,787)
|
|
Other income
(expense)
|
4,768
|
7,214
|
|
(660)
|
13,865
|
|
Gain (loss) on sale
of fixed assets
|
-
|
(962)
|
|
434,549
|
2,838
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
(325,105)
|
(954,954)
|
|
346,539
|
(1,176,259)
|
|
Provision for income
taxes
|
63,000
|
23,000
|
|
111,000
|
40,000
|
|
|
|
|
|
|
|
Net income
(loss)
|
($388,105)
|
($977,954)
|
|
$235,539
|
($1,216,259)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per
common share - Basic
|
($0.22)
|
($0.53)
|
|
$0.13
|
($0.66)
|
|
Weighted average
shares
|
1,746,000
|
1,845,000
|
|
1,746,000
|
1,845,000
|
|
|
|
|
|
|
|
Earnings (loss) per
common share - Diluted
|
($0.22)
|
($0.53)
|
|
$0.13
|
($0.66)
|
|
Weighted average
shares
|
1,746,000
|
1,845,000
|
|
1,746,000
|
1,845,000
|
|
Reliv
International, Inc. and Subsidiaries
|
|
|
Net sales by
Market
|
|
(in
thousands)
|
Three months ended
June 30,
|
|
Change
from
|
|
2019
|
|
2018
|
|
prior
year
|
|
Amount
|
% of Net
Sales
|
|
Amount
|
% of Net
Sales
|
|
Amount
|
%
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
5,905
|
71.5%
|
|
$
6,336
|
74.9%
|
|
$
(431)
|
-6.8%
|
|
Australia/New
Zealand
|
132
|
1.6%
|
|
178
|
2.1%
|
|
(46)
|
-25.8%
|
|
Canada
|
140
|
1.7%
|
|
162
|
1.9%
|
|
(22)
|
-13.6%
|
|
Mexico
|
153
|
1.8%
|
|
112
|
1.3%
|
|
41
|
36.6%
|
|
Europe
|
756
|
9.2%
|
|
1,031
|
12.2%
|
|
(275)
|
-26.7%
|
|
Asia
|
1,171
|
14.2%
|
|
641
|
7.6%
|
|
530
|
82.7%
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Total
|
$
8,257
|
100.0%
|
|
$
8,460
|
100.0%
|
|
$
(203)
|
-2.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales by
Market
|
|
(in
thousands)
|
Six months ended
June 30,
|
|
Change
from
|
|
2019
|
|
2018
|
|
prior
year
|
|
Amount
|
% of Net
Sales
|
|
Amount
|
% of Net
Sales
|
|
Amount
|
%
|
|
|
|
|
|
|
|
|
|
|
United
States
|
$
13,016
|
73.4%
|
|
$
14,006
|
75.9%
|
|
$
(990)
|
-7.1%
|
|
Australia/New
Zealand
|
309
|
1.7%
|
|
410
|
2.2%
|
|
(101)
|
-24.6%
|
|
Canada
|
340
|
1.9%
|
|
404
|
2.2%
|
|
(64)
|
-15.8%
|
|
Mexico
|
289
|
1.6%
|
|
220
|
1.2%
|
|
69
|
31.4%
|
|
Europe
|
1,695
|
9.6%
|
|
2,195
|
11.9%
|
|
(500)
|
-22.8%
|
|
Asia
|
2,098
|
11.8%
|
|
1,228
|
6.6%
|
|
870
|
70.8%
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Total
|
$
17,747
|
100.0%
|
|
$
18,463
|
100.0%
|
|
$
(716)
|
-3.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
sets forth, as of June 30, 2019 and 2018, the number of our Active
Distributors/Preferred Customers 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 his or her 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 Affiliate groups
in their downline organization. Preferred
Customers represent approximately 7,520 and 4,760 of the Active
Distributor count as of June 30, 2019 and 2018,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Active
Distributors/Preferred Customers and Master Affiliates and Above by
Market
|
|
|
|
|
|
|
|
|
|
|
As of
6/30/2019
|
|
As of
6/30/2018
|
|
Change in
%
|
|
Active
Distributors
and Preferred
Customers
|
Master
Affiliates and
Above
|
|
Active
Distributors
and Preferred
Customers
|
Master
Affiliates and
Above
|
|
Active
Distributors
and Preferred
Customers
|
Master
Affiliates and
Above
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United
States
|
19,290
|
1,980
|
|
21,060
|
2,270
|
|
-8.4%
|
-12.8%
|
|
Australia/New
Zealand
|
910
|
70
|
|
1,030
|
80
|
|
-11.7%
|
-12.5%
|
|
Canada
|
530
|
60
|
|
580
|
80
|
|
-8.6%
|
-25.0%
|
|
Mexico
|
1,190
|
100
|
|
780
|
70
|
|
52.6%
|
42.9%
|
|
Europe
|
2,530
|
300
|
|
3,290
|
380
|
|
-23.1%
|
-21.1%
|
|
Asia
|
8,420
|
470
|
|
4,400
|
320
|
|
91.4%
|
46.9%
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Total
|
32,870
|
2,980
|
|
31,140
|
3,200
|
|
5.6%
|
-6.9%
|
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SOURCE Reliv International