Reliv International Reports Third-Quarter Financial Results for 2019

CHESTERFIELD, Mo., Nov. 14, 2019 /PRNewswire/ -- Reliv International, Inc. RELV, a marketer of nutritional supplements that promote optimal health, today reported its financial results for the third quarter of 2019.

Reliv International Logo (PRNewsfoto/Reliv International)

Reliv reported net sales of $9.1 million for the third quarter of 2019 compared with net sales of $8.3 million in the third quarter of 2018. Net sales in the United States increased by $344,000 in the third quarter of 2019, which represented a 5.3% increase in net sales when compared to the prior-year quarter. Net sales in the United States were favorably impacted by the launch of the RLV line of hemp-extract products near the end of the second quarter of 2019.

Net sales in Reliv's foreign markets increased by $468,000, or 25.5%, in the third quarter of 2019 compared with the prior-year quarter. Net sales in Asia and Mexico increased by 93.3% and 21.9%, respectively, in the third quarter of 2019, offset by decreases in all other regions. Net sales in Reliv's foreign markets increased by 26.4% during the third quarter of 2019 when the impact of foreign currency fluctuation is removed.

Reliv reported a net loss for the third quarter of 2019 of $166,000 (loss per diluted share of $0.09) compared to a net loss of $542,000 (loss per diluted share of $0.29) in the third quarter of 2018. The loss from operations for the third quarter of 2019 was $85,000 compared to a loss from operations of $532,000 in the same period in 2018. Results from operations improved as the result of the increase in net sales and gross margin, coupled with a slight reduction in selling, general and administrative ("SGA") expenses in the quarter. SGA expenses decreased by $49,000 in the third quarter of 2019 to $3.80 million compared to $3.85 million in the prior-year quarter.

Net sales for the first nine months of 2019 were $26.9 million, which represents a 0.4% increase from the same period in 2018. Net sales in the United States decreased by 3.2% and net sales in Reliv's foreign markets increased by 11.8% in the first nine months of 2019 compared with the same period last year. Net sales in Reliv's foreign markets increased by 14.6% during the first nine months of 2019 when the impact of foreign currency fluctuation is removed.

Reliv reported net income of $70,000, or $0.04 per diluted share in the first nine months of 2019, compared to a net loss of $1.8 million or $0.95 per diluted share in the same period of 2018.

Reliv had cash and cash equivalents of $2.5 million as of September 30, 2019, compared to $2.0 million as of December 31, 2018. Net cash provided by operating activities was $27,000 in the first nine months of 2019. 

As of September 30, 2019, Reliv had 34,000 active distributors and preferred customers – an increase of 11.3% from September 30, 2018 – of which 3,140 are Master Affiliate level and above. The number of preferred customers included in the active distributor and preferred customer count increased to 8,090 as of September 30, 2019 from 4,840 as of the prior year. This increase is primarily driven by the growth in the Philippines. The number of Master Affiliates decreased by 3.4% compared to the prior year total. Master Affiliate is the level at which distributors are eligible to earn generation royalties.

As previously mentioned, Reliv formally introduced its RLV line of hemp-extract products late in the second quarter of 2019. Initially, the RLV line includes three liquid tinctures and one balm. All of the RLV products are derived from organically-grown, non-GMO hemp. Sales from the RLV product line represented 10.2% of net sales in the United States in the third quarter of 2019.

"We are excited about the addition of the RLV line into the Reliv product family," commented Ryan A. Montgomery, Chief Executive Officer. "Not only is it providing a spark in U.S. sales, it has created excitement in the entire Reliv business leading to a growth in new distributors and customers for all of the Reliv products. Additional products in the RLV line are in development for introduction within the next year."

In international operations, sales and distributor activity in the Philippines continues to grow at a tremendous rate. "We are very excited with our continued growth in the Philippines, fueled by another outstanding increase in the number of new distributors and preferred customers," noted Montgomery. Net sales in the Philippines grew by 94.5% in local currency in the third 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 110% and 56%, respectively.  "We are supporting the growth in the Philippines, both through marketing initiatives and improvements in operations, and we have taken steps to channel that excitement into other markets in our Asia-Pacific region," said Montgomery. Effective October 1, 2019, Reliv modified its distributor compensation plan in its Australia/New Zealand and Malaysia markets to create a larger maximum purchasing discount for its distributors and a higher commission rate to those distributors who are directly responsible for generating new business.   

About Reliv International, Inc.

Reliv International, based in Chesterfield, MO, produces nutritional supplements that promote optimal nutrition. Reliv supplements address core nutrition, targeted solutions and overall wellness through its line of RLV hemp extracts. 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 13 countries. Learn more about Reliv at reliv.com, or on FacebookTwitter 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



September 30

December 31









2019

2018









(Unaudited)

(Audited)







Assets











Current Assets:











Cash and cash equivalents

$2,540,779

$1,989,974







Accounts receivable, less allowances of











$5,000 in 2019 and 2018

249,318

400,759







Notes & accounts receivables & deposits - related parties

1,121,104

151,222







Inventories

2,347,804

2,954,947







Assets held for sale

-

2,124,939







Other current assets

927,445

464,165



















Total current assets

7,186,450

8,086,006



















Notes & accounts receivables - related parties

2,481,563

1,282,072







Other assets

2,658,293

2,287,237







Net property, plant and equipment

4,513,915

4,698,550



















Total Assets

$16,840,221

$16,353,865



















Liabilities and Stockholders' Equity























Accounts payable, accruals & other current liabilities

$4,554,269

$3,915,390







Revolving line of credit

500,000

-







Other noncurrent liabilities

235,905

445,611







Stockholders' equity

11,550,047

11,992,864



















Total Liabilities and Stockholders' Equity

$16,840,221

$16,353,865































Consolidated Statements of Operations













Three months ended September 30



Nine months ended September 30  



2019

2018



2019

2018



(Unaudited)

(Unaudited)



(Unaudited)

(Unaudited)

Product sales

$8,395,941

$7,817,526



$24,809,979

$25,129,503

Freight income

521,192

519,519



1,521,014

1,670,522

Other revenue

231,732

-



564,389

-













Net Sales

9,148,865

8,337,045



26,895,382

26,800,025













Costs and expenses:











  Cost of goods sold

2,497,993

2,383,942



7,200,716

7,089,958

  Distributor royalties and commissions

2,939,187

2,639,863



8,721,852

8,858,965

  Selling, general and administrative

3,796,276

3,845,304



11,224,748

12,546,840













Total Costs and Expenses

9,233,456

8,869,109



27,147,316

28,495,763













Loss from operations

(84,591)

(532,064)



(251,934)

(1,695,738)













Other income (expense):











Interest income

41,548

22,633



137,028

70,132

Interest expense

(24,250)

(16,408)



(39,737)

(93,195)

Other income (expense)

(12,564)

(1,658)



(13,224)

12,207

Gain (loss) on sale of fixed assets

-

(6,804)



434,549

(3,966)













Income (loss) before income taxes

(79,857)

(534,301)



266,682

(1,710,560)

Provision for income taxes

86,000

8,000



197,000

48,000













Net income (loss)

($165,857)

($542,301)



$69,682

($1,758,560)

























Earnings (loss) per common share - Basic

($0.09)

($0.29)



$0.04

($0.95)

Weighted average shares 

1,746,000

1,845,000



1,746,000

1,845,000













Earnings (loss) per common share - Diluted

($0.09)

($0.29)



$0.04

($0.95)

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 September 30,



Change from



2019



2018



prior year



Amount

% of Net

Sales



Amount

% of Net

Sales



Amount

%



















United States

$    6,843

74.8%



$    6,499

78.0%



$    344

5.3%

Australia/New Zealand

135

1.5%



156

1.9%



(21)

-13.5%

Canada

140

1.5%



153

1.8%



(13)

-8.5%

Mexico

156

1.7%



128

1.5%



28

21.9%

Europe

727

7.9%



807

9.7%



(80)

-9.9%

Asia

1,148

12.6%



594

7.1%



554

93.3%



















Consolidated Total

$    9,149

100.0%



$    8,337

100.0%



$    812

9.7%





































Net sales by Market









(in thousands)

Nine months ended September 30,



Change from



2019



2018



prior year



Amount

% of Net

Sales



Amount

% of Net

Sales



Amount

%



















United States

$    19,859

73.8%



$    20,505

76.5%



$    (646)

-3.2%

Australia/New Zealand

445

1.6%



565

2.1%



(120)

-21.2%

Canada

479

1.8%



557

2.1%



(78)

-14.0%

Mexico

444

1.7%



348

1.3%



96

27.6%

Europe

2,422

9.0%



3,002

11.2%



(580)

-19.3%

Asia

3,246

12.1%



1,823

6.8%



1,423

78.1%



















Consolidated Total

$    26,895

100.0%



$    26,800

100.0%



$    95

0.4%



















The following table sets forth, as of September 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 8,090 and 4,840 of the Active Distributor count as of September 30, 2019 and 2018, respectively. 





















 

Active Distributors/Preferred Customers and Master Affiliates and Above by Market





















As of 9/30/2019



As of 9/30/2018



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

19,350

2,070



20,390

2,290



-5.1%

-9.6%

Australia/New Zealand

890

70



1,010

80



-11.9%

-12.5%

Canada

530

70



570

80



-7.0%

-12.5%

Mexico

1,280

90



850

80



50.6%

12.5%

Europe

2,440

310



3,210

380



-24.0%

-18.4%

Asia

9,510

530



4,520

340



110.4%

55.9%



















Consolidated Total

34,000

3,140



30,550

3,250



11.3%

-3.4%

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/reliv-international-reports-third-quarter-financial-results-for-2019-300958017.html

SOURCE Reliv International

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