Reliv 6.8% Decrease in Q2 – 2012 To $16.8 Million



CHESTERFIELD, Mo., Aug. 1, 2012 /PRNewswire/ — Reliv International, Inc. (NASDAQ: RELV), a maker of nutritional supplements that promote optimal health, today reported its financial results for the second quarter of 2012.

Net sales for the quarter were $16.8 million, a 6.8 percent decrease from the second quarter last year. Net sales in the United States totaled $12.9 million, down from second-quarter 2011 net sales of $14.8 million. Net sales outside of the United States rose 21.6 percent in the second quarter of 2012 compared to the prior-year quarter, led by the European market where net sales more than doubled.

Net income for the second quarter of 2012 was $103,000 or $0.01 per diluted share, compared to $69,000 or $0.01 per diluted share in the 2011 second quarter. Income from operations for the second quarter of 2012 was $219,000 compared to $29,000 in the same quarter of 2011.

Net sales in Europe more than doubled to $1.74 million in the second quarter of 2012 compared to $856,000 in the prior-year second quarter. Europe's record-setting sales continued in the second quarter of 2012, said Robert L. Montgomery, chairman and chief executive officer of Reliv. Distributor leaders are emerging in Europe and expanding their distribution networks in multiple countries, and we are directing resources to support this expansion.

Sales in Asia increased by 17.2 percent in the second quarter of 2012 compared to the same quarter in 2011, led by the Philippines. The Asia-Pacific Region is a direct selling hotbed and represents a big opportunity for Reliv, Montgomery said. Reliv recently launched an initiative to bring a renewed focus to our operations in the region and work to capitalize on its vast potential.

In the United States, we are focusing on expanding our distributor base to increase sales, he said. On the product side, we are promoting new innovations such as our exclusive LunaRich™ soy powder and our healthy energy shot, 24K™, to attract new people. On the business side, we are streamlining and simplifying processes to make Reliv more attractive as an affordable home-based business opportunity. I believe these steps will help return Reliv to sales growth in the United States.

Reliv reported a reduction in selling, general and administrative expenses (SG&A) of $386,000 for the second quarter of 2012 compared to the prior-year period. Through six months, SG&A expenses are down $1.18 million in 2012 compared to the first six months of 2011.  Our strategic initiative to maximize efficiency in operations continues to pay off, Montgomery said. We are successfully reducing costs to strengthen our balance sheet.

On July 24, Reliv's Board of Directors named Ryan A. Montgomery as President, and he will be responsible for the day-to-day operations of Reliv International. Robert L. Montgomery will remain Reliv's Chairman and Chief Executive Officer. Ryan has served Reliv in various leadership capacities, and has excelled in every position he has held, Robert Montgomery said. He is prepared to champion innovations that I believe will increase Reliv sales worldwide.

Net sales for the first six months of 2012 were $36.5 million, which represents an 8.0 percent decrease from the same period in 2011. Reliv's international net sales, driven by strong results in Europe, rose 22.4 percent in the first half of 2012 compared with the first half of last year. In the United States, net sales declined 13.8 percent.

Reliv reported net income of $635,000, or $0.05 per diluted share in the first six months of 2012, compared to $679,000 or $0.05 per diluted share in the same period of 2011.

Reliv's total distributor count was 59,230 as of June 30, 2012, an increase of 1.3 percent from the same date in 2011.  Of this total, 6,420 distributorships are Master Affiliate level and above, a decrease of 7.8% when compared to the total as of June 30, 2011.  Master Affiliate is the level at which distributors are eligible to earn generation royalties.

Net cash generated from operating activities in the first six months of 2012 totaled $1.3 million, representing a decrease of $433,000 over the first six months of 2011. Reliv had cash and cash equivalents of $5.5 million as of June 30, 2012, a decrease of $1.5 million compared to same date last year.

About Reliv International, Inc.

Reliv International, Inc., based in Chesterfield, Missouri, produces nutritional supplements that promote optimal nutrition along with premium skincare products. Reliv supplements address essential nutrition, weight loss, athletic performance, digestive health, women's health, anti-aging and healthy energy. The company sells its products through an international network marketing system of independent distributors in 15 countries. Learn more about Reliv at, or on Facebook, Twitter or YouTube.

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