CHESTERFIELD, Mo., Feb 28, 2007 /PRNewswire-FirstCall via COMTEX/ -- Reliv International, Inc. (RELV) , a developer, manufacturer and marketer of proprietary nutritional supplements, today reported record net sales and earnings for 2006. Net income increased 5 percent from $7.5 million to $7.9 million, and diluted earnings per share rose 2 percent, from $0.46 to $0.47 for the year.
Net sales were $117.5 million, a 3.4 percent increase over 2005 net sales. U.S. sales rose 3.2 percent and international sales increased 6.1 percent in 2006 compared to 2005.
For the fourth quarter, net sales were $28.6 million, compared to $27.5 million in the fourth quarter of 2005, an increase of 4.2 percent. Fourth-quarter net income rose 11.7 percent to $2.0 million from $1.8 million; on a diluted per share basis, earnings rose to $0.12 from $0.11 compared to the fourth quarter of 2005.
"Our proprietary nutritional supplements, outstanding business opportunity and a disciplined system to help distributors expand their businesses led us to improved performance in 2006, and we believe that they'll lead to further growth in 2007," said Robert L. Montgomery, chairman, chief executive officer and president of Reliv.
"I'm pleased with the growth in 2006, but our goal is to return to double-digit growth in both net sales and earnings," Montgomery said. "A promising development in the fourth quarter was the increase in new distributor signups," he added.
Worldwide, new distributor signups in the fourth quarter increased 3 percent compared to the same quarter of 2005. Signups in the U.S. also increased in the fourth quarter. Both the Australia/New Zealand and United Kingdom/Ireland regions reported increased sponsorships for the year.
For the full year, however, Reliv's distributor count was flat compared to year-end 2005 with 64,960 distributors, while the total number of Master Affiliates rose to 18,370, a 3 percent increase compared to the 2005 figure.
"I see several positive factors for Reliv as we enter 2007," Montgomery said. "First, early indications are that the momentum in new signups from the fourth quarter seems to be continuing into the first quarter of 2007. Second, sales of our Slimplicity Weight Loss System have been encouraging since its launch in early February," he said.
"A third factor is our strengthening international sales," Montgomery said. "In the fourth quarter of 2006, Reliv's net sales in non-U.S. markets rose approximately 15 percent compared to the fourth quarter of 2005, with all markets reporting an increase in net sales," he said.
"Continued growth in those markets is important to maintain Reliv's positioning in the wellness and direct selling industries, both of which are expanding globally," Montgomery said.
Reliv will host a conference call to discuss fourth-quarter and full-year 2006 earnings with investors at 1:00 p.m. Eastern Time on Feb. 28, 2007. The dial-in number for investors is 866-271-6130. The participant passcode is 20333285. To register, please call in 15 minutes prior to start of the call. A replay of this call will be available for one week by telephone from 3:00 p.m. Eastern by calling 888-286-8010 and using the passcode 46226584. A live web cast of this call will be available through the Investor Relations section of Reliv's Web site, http://www.reliv.com/us/investor. An online archive of the broadcast will be available on Reliv's Web site in the Investor Relations section 24 hours after the call concludes.
Reliv International, Inc., based in suburban St. Louis, Mo., develops, manufactures and markets a proprietary line of nutritional supplements addressing basic nutrition, specific wellness needs, weight management and sports nutrition. Reliv sells its products through an international network marketing system of approximately 65,000 independent distributors. Additional information about Reliv International, Inc. can be obtained on the Web at http://www.reliv.com.
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 Reliv's web site, http://www.reliv.com.