CHESTERFIELD, Mo., Apr 30, 2008 (PrimeNewswire via COMTEX) -- Reliv International, Inc. (RELV) , a nutrition and direct selling company, today reported net sales for the first quarter of $28.3 million, compared to record net sales of $35.0 million in the first quarter last year.
Net income for the first quarter equaled $1.5 million or $0.10 per diluted share, compared to net income of $2.6 million or $0.16 per diluted share in the first quarter of 2007.
As of March 31, 2008, Reliv's distributor base totaled approximately 69,700, up about 1,000 from March 31, 2007, when Reliv had approximately 68,700 distributors.
Net sales in the United States equaled $24.7 million in the first quarter compared to net sales of $31.9 million in the same quarter last year.
International net sales (sales outside of the U.S.) rose 17.2 percent to $3.6 million compared to $3.1 million in the same quarter last year. Net sales in the Philippines rose approximately 30 percent in the quarter, and net sales in our Malaysia/Singapore region nearly doubled.
"To increase sales, we are investing in special events featuring Reliv senior management and top distributors at meetings in Reliv's larger U.S. markets. The events combine training and motivational activities," said Robert L. Montgomery, president, chairman and chief executive officer.
"We believe the new training we instituted last year is gaining traction as we are seeing the number of new Master Affiliates, our entry level for business builders, increase compared to the past three quarters," Montgomery said. "That is a promising sign that we'll be watching closely in coming quarters," he said.
"While investing in training and sales," Montgomery said, "we also are looking for ways to cut unnecessary costs and reduce losses in international operations."
Selling, general and administrative (SG&A) costs in this year's first quarter were down $1.1 million compared to the first quarter of 2007. SG&A expenses as a percentage of sales, however, increased to 35.1 percent vs. 31.6 percent in the first quarter of 2007, as the result of the lower sales levels.
Reliv's balance sheet remains solid. The company had $15.2 million in cash, cash equivalents and short-term investments as of March 31. Reliv has no long-term debt. Reliv reported cash from operations for the quarter of $3.2 million.
"As we work to improve both top-line and bottom-line growth, we are focused on the basics of our business," Montgomery said. "We make nutrition simple. Our products can play a role in fostering wellness for our distributors and customers," he said. "We also offer distributors an outstanding business opportunity along with strong training and incentive programs designed to increase sales and sponsorship of new people into Reliv."
Reliv will host a conference call to discuss first-quarter earnings with investors at 1:00 p.m. Eastern Daylight Time on April 30. The dial-in number for investors is 888-679-8035. The participant passcode is 13122074. 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 45703790. 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/EN/Conference%20Calls%20Presentations.html.
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., 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 sells its products through an international network marketing system of approximately 70,000 independent distributors. Additional information about Reliv International, Inc. can be obtained on the Web at www.reliv.com.