Reliv International, Inc. (Nasdaq: RELV), a nutrition and direct selling company, today reported consolidated net sales of $18.7 million for the third quarter of 2010, compared to net sales of $20.9 million in the third quarter of last year.
Net income for the quarter was $172,000 compared to net income of $324,000 in the third quarter of last year. Diluted earnings per share were $0.01 compared to $0.03 in the same quarter last year.
U.S. sales for the quarter totaled approximately $16.0 million compared to $18.3 million in last year's third quarter. Sales outside of the United States were $2.7 million compared to $2.6 million in the third quarter of 2009, though the increase was a result of currency fluctuations.
Robert L. Montgomery, chairman, president and chief executive officer, said, "Third-quarter results were not where we want them to be, particularly in the United States. International markets, specifically Europe, Canada and the Australia/New Zealand region, reported sales increases, offset by sales declines in Mexico and Asia."
"In the United States, which remains by far our largest market, I believe we are still fighting economic headwinds," Montgomery said. "But we took steps during the quarter at our International Conference that we expect to support greater sales and help us move toward turning around the business."
As examples of the steps announced during the August Conference, Montgomery said, "We reduced the cost of new distributor start-up kits. We made the new distributor application easier to complete online, and we introduced a 'Fast Start Guide' to help new distributors quickly get off to a positive start in building their business. Each of those moves is designed to boost sales growth."
Reliv believes these actions in part led to an increase in September new-distributor recruiting. Reliv had more new distributors sign up in September than in all but one other month this year.
Reliv yesterday announced a new promotion designed to increase sales in which top-selling distributors will win a Disney cruise.
For the first nine months of 2010, net sales were $60.2 million compared to $64.7 million in the first nine months of 2009. Net sales outside of the United States during that period rose 18.7 percent, while net U.S. sales in the period decreased 10.3 percent. Excluding the impact of foreign currency fluctuations, foreign sales rose 8.8 percent.
Reliv generated cash from operations of $1.4 million in the first nine months of 2010 compared to $4.8 million in the same period of 2009. As of Sept. 30, 2010, Reliv's cash and cash equivalents totaled $6.4 million, the same amount compared to a year ago.
Reliv's distributor count was 62,000 compared to 68,000 at the end of the third quarter last year.
Looking toward next year, Montgomery said, "We are maintaining our focus on key strategic initiatives to improve results: increasing distributor sponsoring and retention; improving development of our sales force; refreshing our brand; and enhancing product promotion."
He added, "Reliv makes nutrition simple. Our success is built on that principle, outstanding science-based nutritional products and a terrific home-based business opportunity."
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