World News: 12:00 GMT Friday 10th August 2018. [Reliv' International, Inc. via Globe Newswire via SPi World News]
CHESTERFIELD, Mo., Aug. 10, 2018 (GLOBE NEWSWIRE) -- Reliv International, Inc. (NASDAQ:RELV), a maker of nutritional supplements that promote optimal health, today reported its financial results for the second quarter of 2018.
Reliv reported net sales of $8.5 million for the second quarter of 2018 compared with net sales of $10.0 million in the second quarter of 2017. Net sales in the United States decreased to $6.3 million in the second quarter of 2018, which represented a 15.0 percent decline in net sales when compared to the prior-year quarter. Net sales in Reliv’s foreign markets decreased 17.0 percent in the second quarter of 2018 compared with the prior-year quarter. Net sales in Europe and Asia decreased by 21.2 percent and 10.5 percent, respectively, in the second quarter of 2018, along with decreases in all other regions except for Mexico.
Reliv reported a net loss for the second quarter of 2018 of $978,000 (loss per diluted share of $0.53) compared to a net loss of $520,000 (loss per diluted share of $0.28) in the second quarter of 2017. The loss from operations for the second quarter of 2018 was $940,000 compared to a loss from operations of $508,000 in the same period in 2017. Results from operations were primarily impacted by the decline in net sales and gross margin, partially offset by a reduction in selling, general and administrative (“SGA”) expenses in the quarter. SGA expenses decreased to $4.2 million in the second quarter of 2018 compared to $4.6 million in the prior-year quarter.
Net sales for the first six months of 2018 were $18.5 million, which represents a 19.0 percent decrease from the same period in 2017. Net sales in the United States decreased by 20.9 percent and net sales in Reliv’s foreign markets decreased by 12.2 percent in the first half of 2018 compared with the first half of last year. Net sales in Reliv’s foreign markets decreased by 15.7 percent during the first half of 2018 when the impact of foreign currency fluctuation is removed.
Reliv reported a net loss of $1.2 million, or $0.66 per diluted share in the first six months of 2018, compared to net income of $4,000 or $0.00 per diluted share in the same period of 2017.
Reliv had cash and cash equivalents of $2.8 million as of June 30, 2018, compared to $3.3 million as of December 31, 2017. Net cash used in operating activities was $256,000 in the first six months of 2018. In July 2018, Reliv elected to redeem the cash surrender value of a company-owned life insurance policy with a redemption value of $3.1 million and used the proceeds to pay in full the remaining balance of its term loan and revolving loan balances totaling $2.9 million. As a result, Reliv has no outstanding bank debt at this time.
As of June 30, 2018, Reliv had 31,140 distributors and preferred customers – a decrease of 11.3 percent from June 30, 2017 – of which 3,200 are Master Affiliate level and above. The number of Master Affiliates decreased by 14.2 percent compared to the year-ago total. Master Affiliate is the level at which distributors are eligible to earn generation royalties.
“We continue the work of revitalizing sales in the United States and other markets around the Reliv world,” said Ryan A. Montgomery, Chief Executive Officer. “The results of the second quarter are not indicative of the process that’s underway. We have a number of initiatives in progress that we believe will lead to better results for the remainder of 2018 and forward.”
“These initiatives include further product development, technology enhancements, refocus of distributor incentives, and streamlining our international operations,” Montgomery reported.
Specific initiatives include:
Reliv announced a number of executive level changes in recent weeks, highlighted by the announcement of Ryan Montgomery as Chief Executive Officer of the company. “As we approach our 30 anniversary, I am proud to lead this company into its next chapter and beyond.”
Reliv International, based in Chesterfield, MO, produces nutritional supplements that promote optimal nutrition. Reliv supplements address and Reliv is the exclusive provider of , 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 14 countries. Learn more about Reliv at , or on , or
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, .
For more information, contact:
Steve Albright Chief Financial Officer (636) 733-1305
Globe Newswire: 12:00 GMT Friday 10th August 2018
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