CHESTERFIELD, Mo., March 2, 2006 /PRNewswire-FirstCall via COMTEX/ -- Reliv International, Inc. (RELV) , a developer, manufacturer and marketer of a proprietary line of nutritional supplements addressing basic nutrition, specific wellness needs, weight management and sports nutrition, today announced its full-year results of operations for 2005, as well as for the three months ended December 31, 2005.
For the year, Reliv reported a 40 percent increase in net income available to common shareholders, which totaled $7.52 million, or $0.46 per share (diluted) -- compared to $5.37 million, or $0.31 per share (diluted) in 2004. The net income in 2005 was a single year record for the company. The company also achieved record-setting net sales during 2005 -- up 17 percent, to $113.6 million -- compared to $97.0 million in 2004.
Fourth Quarter 2005 Results
For the three months ended December 31, 2005, Reliv posted a 41 percent increase in net income available to common shareholders -- to $1.81 million, or $0.11 per share (diluted), compared to $1.28 million, or $0.07 per share (diluted) in the prior-year period. Fourth quarter 2005 net sales grew 8 percent, to $27.5 million, compared to $25.4 million in the fourth quarter of 2004.
The company's fourth-quarter and full-year earnings benefited from the reduction of certain costs that were reported in 2004 -- costs associated with the initial year of documentation and testing of internal controls in connection with the Company's compliance with Section 404 of the Sarbanes-Oxley Act.
Key Company Trends
Throughout 2005, Reliv's results were driven by strong sales growth in the United States, the company's largest geographic market. Net sales in the United States increased 22 percent for the year compared to 2004, to total $102.5 million. Reliv also reported increased results in Europe -- with net sales up 55 percent in the United Kingdom compared to the prior year, as well as the opening of the company's operations in Germany in July 2005. However, this growth was offset by weaknesses in other non-U.S. markets, leading to a 16 percent decline in net sales from international markets during the year.
Robert L. Montgomery, President and Chief Executive Officer of Reliv, said, "For the most part, our performance in 2005 was an excellent one. Our record-setting net sales and net income proves that the Reliv business model is both powerful and scalable. It also demonstrates that our products target a promising market -- the millions of consumers worldwide who want to make good nutrition a simple but key part of their healthy lifestyles. That's why we believe we can extend the success we've seen in the U.S. to our international markets in the future."
Reliv International, Inc., based in suburban St. Louis, is a developer, manufacturer and marketer of a proprietary line of nutritional supplements addressing basic nutrition, specific wellness needs, weight management and sports nutrition. Reliv's science-based supplements are packaged in powdered form and are not only simple to use but also, when mixed with water, juice or other liquid and consumed, provide an effective means of delivering nutrients to the body. Reliv also offers a line of skin care products. Reliv sells its products through an international network marketing system using independent distributors. As of December 31, 2005, Reliv's network consisted of approximately 65,500 distributors -- 52,500 in the United States and 13,500 across the company's international markets. Reliv has sold products in the United States since 1988 and in selected international markets since 1991. Reliv International's common stock trades on The Nasdaq Stock Market(R) under the symbol RELV.
Statements made in this 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, http://www.reliv.com .