• skype
  • Skype: philippinediver / PH (63) 927-300-6948
  • editor@mlminsider.com
Available Banner

Reliv International Reports Third-Quarter Financial Results for 2019

Seeking Alpha
Reliv International Reports Third-Quarter Financial Results for 2019

|PR Newswire|About: RELV

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.

https://mma.prnewswire.com/media/957811/Reliv_International_Logo.jpg

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%

 

https://c212.net/c/img/favicon.png?sn=CG37004&sd=2019-11-14View 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

Available Banner

MLM Company
Distributor Contacts

Kari
Kari Leggett
Rnetwork

509-539-5360

kariaccurate@gmail.com
Distributor Links
Terry
Terry Kilburg
Reliv International

563-872-3788

terrykilburg@gmail.com
Distributor Links
Allan
Allan Curtis
World Global Network

250-710-8927

allan@allandcurtis.com
Distributor Links

SUBSCRIBE TO OUR NEWSLETTER

SUBSCRIBE NOW