Reliv International Reports First-Quarter Financial Results for 2013

CHESTERFIELD, Mo., May 1, 2013 (GLOBE NEWSWIRE) -- Reliv International, Inc. (Nasdaq:RELV), a maker of nutritional supplements that promote optimal health, today reported its financial results for the first quarter of 2013.

First-Quarter Results

Reliv reported net sales of $18.9 million for the first quarter of 2013, compared to net sales of $19.7 million for the first quarter of 2012. U.S. net sales declined by 4.2 percent for the quarter compared to the same quarter in 2012. International net sales for the quarter declined 5.7 percent, with the continued growth in Europe of 26.6 percent offset by declines in Asia and Australia of 55.3 percent and 17.0 percent, respectively.

The company reported net income of $195,000, or $0.02 per diluted share, for the first quarter of 2013 compared to net income of $532,000, or $0.04 per diluted share, for the first quarter of 2012. Income from operations for the first quarter of 2013 was $435,000 compared to $914,000 in the same quarter of 2012.

"Sales declines in Asia and Australia coupled with investments in new staffing in those markets significantly contributed to the decline in profitability overall," said Robert L. Montgomery, chairman and chief executive officer of Reliv. "We have devoted resources and launched a series of enhancements to our business model in these markets in an effort to spur growth. Examples include a preferred customer program in Australia and new programs in the Philippines intended to increase attention and focus on retail sales by distributors. I believe such proactive measures will reenergize these markets."

"Reliv's European expansion continued as the first quarter of 2013 marked Europe's 14th consecutive quarter of year-over-year net sales growth," he added. "France officially became Reliv's 16th country of operation in April and was celebrated with well-attended events across the country. Momentum in Europe continues to build and we are devoting resources to fuel additional sales growth."

"In the United States, Reliv launched our latest product, LunaRich X™, and a new points-based LunaRich wellness system in January 2013," Montgomery continued. "LunaRich X is the most concentrated form of lunasin currently available. Lunasin is the peptide scientists have identified as the key to many of soy's documented health benefits. LunaRich X has been welcomed enthusiastically by distributors and consumers, accounting for 7.2 percent of U.S. net sales in the first quarter of 2013. We anticipate growth in LunaRich X sales, as additional research is published and market awareness increases."

"On March 1, 2013, Reliv implemented a new pricing structure in the United States, pairing a modest price increase with increased servings per unit, offset by a reduced shipping charge," he said. "The resulting cost per serving is only pennies higher for most products, and feedback from our distributors has been positive. Adjusting servings per unit to provide a full month's supply helps facilitate regular monthly sales and the reduced shipping helps eliminate a common point-of-sale objection."

"The network marketing industry is seeing e-commerce becoming as important as in-person sales, and Reliv is taking steps to stay in front of this shift in our industry's business model," Montgomery said. "Reliv is nearing the completion of the first step in this process, creating a custom content management system. This system will provide the platform to pursue additional online upgrades. This year will also see the launch of a new online shopping cart, designed to make it easier for consumers to purchase our products."

"As we work to build for the future, we continue to reduce costs where appropriate and to maintain a strong balance sheet," he added. Reliv had cash and cash equivalents of $5.87 million as of March 31, 2013, virtually unchanged from $5.80 million on December 31, 2012.

As of March 31, 2013, Reliv had 56,040 distributors – a decline of 4.3 percent from March 31, 2012 – of which 5,600 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, based in Chesterfield, Mo., 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. Reliv is the exclusive provider of LunaRich® products, which optimize levels of lunasin, the peptide behind many of soy's health benefits. The company sells its products through an international network marketing system of independent distributors in 16 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.


Reliv International, Inc. and Subsidiaries
Consolidated Balance Sheets
March 31 December 31
2013 2012
Current Assets:
Cash and cash equivalents $5,865,285 $5,801,042
Accounts receivable, less allowances of $27,500 in 2013 and $35,700 in 2012 148,377 247,087
Accounts and note due from employees and distributors 139,052 109,346
Inventories 5,370,955 5,262,916
Other current assets 1,790,567 1,070,301
Total current assets 13,314,236 12,490,692
Other assets 5,870,734 5,656,077
Net property, plant and equipment 6,995,023 7,111,772
Total Assets $26,179,993 $25,258,541
Liabilities and Stockholders' Equity
Total current liabilities $7,428,737 $6,614,631
Long-term debt, less current maturities 2,297,859 2,401,312
Other non-current liabilities 681,838 660,728
Stockholders' equity 15,771,559 15,581,870
Total Liabilities and Stockholders' Equity $26,179,993 $25,258,541
Consolidated Statements of Operations
Three months ended March 31
2013 2012
(Unaudited) (Unaudited)
Product sales $16,889,458 $17,614,840
Handling & freight income 1,967,806 2,128,804
Net Sales 18,857,264 19,743,644
Costs and expenses:
Cost of products sold 3,903,858 3,900,581
Distributor royalties and commissions 7,003,204 7,455,160
Selling, general and administrative 7,515,488 7,474,246
Total Costs and Expenses 18,422,550 18,829,987
Income from operations 434,714 913,657
Other income (expense):
Interest income 37,164 9,314
Interest expense (17,502) (30,919)
Other expense (26,575) (22,668)
Income before income taxes 427,801 869,384
Provision for income taxes 233,000 337,000
Net Income $194,801 $532,384
Earnings per common share - Basic $0.02 $0.04
Weighted average shares 12,620,000 12,512,000
Earnings per common share - Diluted $0.02 $0.04
Weighted average shares 12,708,000 12,633,000
Cash dividends declared per common share $ -- $ --
Reliv International, Inc. and Subsidiaries
Net sales by Market
(in thousands) Three months ended March 31, Change from
2013 2012 prior year

% of Net

% of Net


United States 15,109 80.1% 15,770 79.9% (661) -4.2%
Australia/New Zealand 448 2.4% 540 2.7% (92) -17.0%
Canada 554 2.9% 550 2.8% 4 0.7%
Mexico 278 1.5% 287 1.4% (9) -3.1%
Europe 2,020 10.7% 1,595 8.1% 425 26.6%
Asia 448 2.4% 1,002 5.1% (554) -55.3%
Consolidated Total 18,857 100.0% 19,744 100.0% (887) -4.5%
The following table sets forth, as of March 31, 2013 and 2012, 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.
Active Distributors and Master Affiliates and above by Market
As of 3/31/2013 As of 3/31/2012 Change in %

and Above

and Above

Affiliates and
United States 40,020 3,960 42,910 4,550 -6.7% -13.0%
Australia/New Zealand 1,710 180 1,950 120 -12.3% 50.0%
Canada 1,310 170 1,340 190 -2.2% -10.5%
Mexico 1,340 100 1,640 140 -18.3% -28.6%
Europe 7,090 730 4,900 480 44.7% 52.1%
Asia 4,570 460 5,790 500 -21.1% -8.0%
Consolidated Total 56,040 5,600 58,530 5,980 -4.3% -6.4%

CONTACT: Steve Albright Chief Financial Officer (636) 733-1305 or: Fred Nielson Investor Relations (636) 733-1314 Mark Murphy Media Relations (636) 733-1391Source:Reliv International, Inc.