Reliv International, Inc. (NASDAQ: RELV), a maker of nutritional supplements that promote optimal health, reported its financial results for the first quarter of 2015.
Reliv reported net sales of $14.8 million for the first quarter of 2015, compared to net sales of $14.5 million for the first quarter of 2014. U.S. net sales increased 7.4 percent for the quarter compared to the same quarter in 2014. International net sales for the quarter decreased 11.1 percent, with a stronger U.S. dollar accounting for 8.0 percent of the decline.
The Company reported net income of $116,000, or $0.01 per diluted share, for the first quarter of 2015 compared to a net loss of $151,000, or ($0.01) per diluted share, for the first quarter of 2014. Income from operations for the first quarter of 2015 was $429,000 compared to a loss of $170,000 in the same quarter of 2014.
Reliv's strategic plan in the United States for 2015 is to place a renewed emphasis on distributor training and the marketing of the Reliv business opportunity.
Having focused in recent years on product development and consumer education following our 2013 acquisition of LunaRich® technology, we are highlighting the business opportunity that our products make possible. Early results indicate that approach is gaining traction in our field, said Robert L. Montgomery, chairman and chief executive officer of Reliv.
Net sales in the United States for the first quarter of 2015 increased to $11.5 million, compared to net sales of $10.7 million for the first quarter of 2014. The number of new distributors sponsored in the United States for the quarter increased to 2,212 compared to 1,956 new distributors in the same quarter in 2014, an increase of 13.1 percent. Reliv added 366 new Master Affiliates, the level at which distributors are eligible to earn generation royalties, in the United States in the first quarter of 2015 compared to 236 added in the first quarter of 2014, an increase of 55 percent.
We are launching a series of initiatives in 2015 as part of our focus on the Reliv business opportunity, Montgomery said. In the first quarter we re-introduced Master Affiliate Training Schools (MATS), a quarterly two-day business training event for distributors at Reliv's top profit level. At MATS, active business builders learn specific, practical skills from Reliv's top distributor leaders to increase sales and recruitment. We also rolled out updated distributor tools in the first quarter, including a new business opportunity presentation suite (complete with slides, video and print materials), as well as a new distributor online business portal. These initiatives have been met with enthusiasm and excitement from our distributor field.
He added: Moving forward, we will continue to upgrade web-based technology with a focus on enhancing our distributors' online presence and facilitating new online sales opportunities. We plan to introduce a significant technology upgrade in this area in May 2015.
Year-over-year sales in international markets were negatively impacted by a much stronger U.S. dollar. The unfavorable exchange rate accounts for a significant portion of the decrease in international net sales this quarter compared to the same quarter in 2014, Montgomery said. Despite continued growth in France, net sales in Europe decreased 23.0 percent in the first quarter of 2015 compared to the first quarter of 2014, a decrease of 15.9 percent in local currency.
As we work to build for the future, we strive to reduce costs and maintain our strong balance sheet, he added. Net cash generated from operating activities in the first quarter of 2015 totaled $1.1 million. Reliv had cash and cash equivalents of $5.85 million as of March 31, 2015, compared to $4.99 million as of December 31, 2014, and $4.88 million as of March 31, 2014.
About Reliv International, Inc.
Reliv International, based in Chesterfield, MO, manufactures nutritional supplements that promote optimal health. Reliv supplements address essential nutrition, weight loss, athletic performance, digestive health, heart health, joint health, women's health, children's health, anti-aging, blood sugar management, and healthy energy. Reliv is the exclusive provider of LunaRich® products, which optimize levels of lunasin, the peptide behind many of soy's health benefits. The company sells its products through an international network marketing system of independent distributors in 15 countries.
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