Reliv International, Inc. (Nasdaq: RELV), a maker of nutritional supplements that promote optimal health, today reported its financial results for the fourth-quarter and full-year of 2010.
Fourth-Quarter Results
Reliv reported net sales of $18.5 million for the fourth-quarter of 2010, compared to sales of $20.7 million for the fourth-quarter of 2009. U.S. sales declined by 12.6 percent for the quarter compared to the same quarter in 2009. International sales for the quarter rose 3.4 percent, with growth reported in Canada and Europe. The largest percentage increase for the quarter was in Reliv's Europe region, which reported an increase of 56.6 percent. Reliv's Europe region includes the United Kingdom, Ireland, Germany, Austria and the Netherlands.
The company reported net income of $559,000, or $0.05 per diluted share, for the fourth-quarter of 2010. That compared to net income of $769,000, or $0.06 per diluted share, for the fourth-quarter of 2009. Income from operations for the fourth-quarter of 2010 was $827,000 compared to $1.1 million in the same quarter of 2009.
Full-Year Results
Reliv reported net sales of $78.7 million for 2010 compared to net sales of $85.4 million in 2009. U.S. net sales dropped from $75.0 million to $66.9 million. Net sales in Reliv's foreign markets for 2010 rose 14.4 percent compared to net sales for 2009, increasing in all markets except Asia. Net sales were particularly strong in Canada, up 39.5 percent over 2009 net sales, and Europe, where net sales rose 55.8 percent over 2009 net sales. Growth in these markets in 2010 was driven by strong increases in new distributor enrollments and new Master Affiliate qualifications. Master Affiliate is the level in which distributors are eligible to earn generation royalties.
Net income for 2010 totaled $1.7 million compared to $2.5 million in 2009. Diluted earnings per share totaled $0.14 in 2010 compared to $0.20 in 2009.
Reliv International Fourth-Quarter Financial Results
"The increase in international sales was the highlight of 2010," said Robert L. Montgomery, chairman, president and chief executive officer of Reliv. "We certainly plan to continue that growth throughout 2011."
"Our U.S. business still felt the lingering impact of the recession. While the overall economy ultimately grew during 2010, our distributors were not confident enough in economic growth to increase their supplement spending during the year. Tight credit also had an impact on our base," he said.
"We know we must turn around our U.S. sales in order to achieve overall sales growth in 2011," Montgomery said. "To that end, in February 2011, we introduced Reliv 24K, our first ready-to-drink shot created to provide healthy energy and greater mental clarity while reducing stress at the same time."
Montgomery added, "Reliv 24K has energized our distributor base and I am optimistic about the product's growth potential."
Net cash generated from operating activities totaled $2.2 million for 2010, compared to $5.8 million for 2009. Reliv had cash and cash equivalents of $6.3 million as of Dec. 31, 2010, an increase of $570,000 from the balance as of Dec. 31, 2009.
New distributor enrollments in 2010 declined by 23 percent compared to 2009. As of Dec. 31, 2010, Reliv had total distributors of 60,740, of which 8,600 are at distributor levels of Master Affiliate and above.
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