Reliv International, Inc. (RELV 2.16, -0.04, -1.82%), a nutrition and direct selling company, has reported consolidated net sales of $18.8 million for the second quarter of 2010, compared to net sales of $20.1 million in the second quarter of last year. International sales rose 18.7% compared to the same quarter in 2009, but U.S. sales were down 9.5% in the quarter.
Net income was $206,000 compared to net income of $410,000 in the second quarter of last year. Diluted earnings per share totaled $0.02 in the second quarter this year compared to $0.03 in the same quarter last year.
U.S. sales for the quarter totaled approximately $15.9 million compared to $17.6 million in the second quarter of 2009. Sales outside of the U.S. rose to approximately $2.9 million compared to net sales of approximately $2.4 million in last year's second quarter. In local currencies, international sales rose 11.3% in the second quarter compared to the same quarter last year. Sales outside of the U.S. account for 15% of net sales.
Robert L. Montgomery, chairman, president and chief executive officer, said, "While we are disappointed in our performance in the second quarter, we believe that our strategic initiatives will start gaining traction in the second half of 2010."
"Reliv has four key strategic initiatives in 2010," Montgomery said. "The initiatives include increasing distributor sponsoring and retention; improving development of our sales force; refreshing Reliv's brand; and enhancing product promotion," he said.
"Our Team Reliv fitness program, in which we sponsor races throughout the U.S., is supporting several of our key initiatives. The program is helping to reinvigorate our brand by focusing on an active lifestyle. The races give us an opportunity to promote our energy and sports performance enhancement products, and they enable us to introduce Reliv to race participants who are seeing our name for the first time," Montgomery said.
"Under the Team Reliv banner, we have sponsored close to 30 running events this year in the United States, in which more than 12,000 people have participated," he said. "Most of the participants had not heard of Reliv prior to the events. We have additional events scheduled before winter arrives."
"We'll continue to hammer away at our key initiatives in the second half of 2010 in an effort to return to growth in the United States," Montgomery said. "At our International Conference in mid-August in St. Louis, we'll announce new programs and activities that will support the initiatives. We have planned a stimulating program that combines recognition, training and motivational activities to energize our sales force."
To support the initiative to improve development of our sales force, Reliv conducted a series of local meetings in 35 key U.S. markets in April and May and met with approximately 4,500 distributors, including potential new customers and distributors. The meetings were designed to promote recruiting of new distributors and retention of existing distributors.
Reliv's total distributor count as of June 30 was approximately 64,000 compared to 68,000 a year earlier.
Reliv generated net cash from operating activities of $1.5 million in the first half of 2010 compared to $2.6 million in the first half of 2009. As of June 30, 2010, the company's cash and cash equivalents equaled $6.5 million, up from $6.1 million as of the same date last year.
For the first half of 2010, net sales equaled $41.5 million, a decline of 5.2% compared to the first six months of 2009. Net U.S. sales in the period were down 9.3%, while sales outside of the United States rose 27.4%. Excluding the impact of foreign currency fluctuations, foreign sales rose 15.2%.
Net income for the first half of 2010 equaled $952,000, or $0.08 per diluted share, compared to $1.4 million or $0.10 per diluted share in the first half of 2009.
Reliv will host a conference call to discuss second-quarter earnings with investors. The conference call will be on July 29, 2010 at 1:00 p.m. Eastern. The dial-in number is 866-700-5192. The participant passcode is 41289957. A replay will be available for one week at 888-286-8010 using the passcode 64689882. A live webcast is available on the Investor Relations section of Reliv's Web site at: http://www.reliv.com/US/EN/Conference%20Calls%20Presentations.html
An online archive of the webcast will be on Reliv's Web site in the Investor Relations section, 24 hours after the call concludes.
Reliv International, Inc., based in Chesterfield, Mo., is a developer, manufacturer and marketer of a proprietary line of nutritional supplements. Reliv supplements address essential daily nutrition, weight loss and targeted solutions such as energy and performance enhancement, digestive health, women's health and anti-aging. Reliv sells its products through an international network marketing system of approximately 64,000 independent distributors. Additional information about Reliv International, Inc. can be obtained on the Web at www.reliv.com.