CHESTERFIELD, Mo., Jul 30, 2008 (PrimeNewswire via COMTEX) -- Reliv International, Inc. (RELV) , a nutrition and direct selling company, today reported net sales for the second quarter of $24.0 million, compared to net sales of $26.3 million in the second quarter last year.
Net income for the second quarter equaled $569,000 or $0.04 per diluted share, compared to net income of $823,000 or $0.05 per diluted share in the second quarter of 2007.
For the six months ended June 30, net sales equaled $52.2 million compared to $61.3 million in the first six months of 2007. Net income was $2.1 million in the first half of 2008, or $0.13 per diluted share, compared to $3.4 million or $0.21 per diluted share for the same period last year.
The company also announced a restructuring of its European operations and a related one-time charge of $110,000 after taxes. Excluding the one-time charge, second-quarter 2008 earnings would have been $679,000, but earnings per share would have remained at $0.04.
Under the restructuring, Reliv's corporate office in Germany is closing, though the existing distribution center will continue to serve distributors in Germany and other European countries. Except for the distribution center, all other European operations now are being run out of Reliv's United Kingdom office. Reliv expects the restructuring to achieve operating efficiencies moving forward. Distributors will still be able to build their businesses in each of the countries where Reliv currently operates.
As of June 30, 2008, Reliv's distributor base totaled approximately 69,450, nearly equal to the number of distributors a year earlier.
Net sales in the United States equaled $20.4 million in the second quarter compared to net sales of $23.3 million in the second quarter of 2007. International net sales (sales outside of the United States) rose 16.6 percent in the second quarter to $3.5 million. Reliv's Malaysia/Singapore region had the strongest gain among all Reliv markets in the quarter.
"On a positive note, our sales gains outside of the U.S., particularly in Asia, are a bright spot for Reliv," said Robert L. Montgomery, president, chairman and chief executive officer. "Asian sales gains have reduced operating losses by approximately 90 percent in that region compared to the first half of last year, and we expect consolidation in Europe to improve results in that region.
"But our key focus is turning around U.S. sales," Montgomery said. "With that in mind, Reliv will announce new programs at our International Conference in August and in the following months related to products, retention and incentives that we expect to boost sales and recruiting," he added.
Selling, general and administrative (SG&A) costs in this year's second quarter were down compared to the SG&A expenses in the year-ago quarter. As a percentage of sales, however, SG&A increased to 40.0 percent vs. 38.8 percent in the second quarter of 2007.
Reliv had $11.9 million in cash, cash equivalents and short-term investments as of June 30. Reliv reported cash from operations for the first half of 2008 of $2.2 million. During the second quarter, Reliv repurchased 211,700 shares of its common stock.
Reliv announced a price increase across much of its U.S. product line to take effect Friday, Aug. 1. The increases were driven by rising ingredient and freight costs, and they range from 6 to 12 percent, depending on the product.
"I believe that the plans in place for the second half of 2008 offer Reliv a very good opportunity to return to top- and bottom-line growth," Montgomery said. "The basics of our business remain in place: Reliv makes nutrition simple. Our products may help foster wellness through preventative means and can play a role in supporting the weight management efforts undertaken by millions of people. In addition, we offer distributors an outstanding business opportunity," he added.
Reliv will host a conference call to discuss second-quarter earnings with investors at 1:00 p.m. Eastern Daylight Time on July 30. The dial-in number for investors is 888-680-0869. The participant passcode is 19464079. 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 61697735. 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 essential daily nutrition, sports nutrition, weight management and nutraceuticals. Reliv sells its products through an international network marketing system of approximately 69,450 independent distributors. Additional information about Reliv International, Inc. can be obtained on the Web at www.reliv.com.