CHESTERFIELD, Mo., Feb 27, 2008 (PrimeNewswire via COMTEX) -- Reliv International, Inc. (RELV) , a wellness and direct selling company, today reported net sales for the fourth quarter of $24.6 million, compared to $28.6 million in the same quarter of 2006.
Net income for the fourth quarter equaled $697,000 or $0.04 per diluted share, compared to net income of $2.0 million or $0.12 per diluted share in the fourth quarter of 2006.
Reliv reported U.S. sales of $21.1 million for the fourth quarter, compared to $25.4 million for the same quarter in 2006. International net sales (sales outside of the U.S.) equaled $3.5 million compared to $3.2 million for the fourth quarter of 2006.
Net sales for 2007 equaled $111.1 million compared to $117.5 million for 2006. Net income for 2007 was $5.0 million or $0.31 per diluted share, compared to net income of $7.9 million or $0.47 per diluted share in 2006. International net sales for the year rose approximately 9 percent to $12.7 million due primarily to the weakening U.S. dollar.
Reliv's distributor base ended the year at 69,970, representing a 7.7 percent increase over the size of the distributor base on Dec. 31, 2006.
"We are not pleased with our performance in 2007," said Robert L. Montgomery, chairman, president and chief executive officer. "For the full year, we saw fewer distributor advancements and a resulting decline in the size of our average order. We need to reverse these trends in 2008 in order to achieve top-line and bottom-line growth," he said.
"To boost sales and sponsoring, we are actively encouraging the increased use of sales tools by our field," Montgomery said. "The sales tools include a new issue of Success from Home magazine that was launched last month, and a newspaper-style publication for use at this time mainly outside of the United States," he added.
"We also are sending our management team to special events around the United States to provide better support to distributors and to gain a more personal, effective understanding of their businesses," he said. "We believe this will help motivate distributors to expand their businesses and achieve advancements more quickly."
Reliv's balance sheet remains solid. The company had $12.1 million in cash, cash equivalents and short-term investments as of Dec. 31, 2007. Reliv has no long-term debt. Cash from operations in 2007 was $4.8 million.
"Our success is built on two basic foundations," Montgomery said. "One, we make nutrition simple by providing superb, proprietary nutritional supplements. Two, we offer distributors an outstanding business opportunity."
"In addition, we still have tremendous growth opportunities in our existing markets. In 2008, Reliv reaches its 20th anniversary," Montgomery said. "We are focused on making this a special year by helping our distributors succeed through initiatives to increase retail sales and sponsorship."
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.