CHESTERFIELD, Mo., - Reliv International, Inc., a developer, manufacturer and marketer of proprietary nutritional supplements, today reported record net sales and earnings for the first quarter of 2007. Net income of $2.6 million represented a 6.9 percent increase over net income in the first quarter of 2006. Diluted earnings per share rose from $0.15 in the year-ago quarter to $0.16 in the first quarter this year.
Net sales increased 12.1 percent from $31.2 million in the first quarter last year to $35.0 million in this year's first quarter. In the United States, first-quarter sales rose 11.8 percent to $31.9 million, and non-U.S. sales equaled $3.1 million, an increase of 14.8 percent over the first quarter of 2006.
"The driving force behind our sales increase in the United States was the introduction of the Slimplicity Weight Loss System in February," said Robert L. Montgomery, chairman of the board, president and chief executive officer of Reliv. "Slimplicity was the key to our double-digit sales growth as well as to a strong increase in sponsorship of new distributors."
As of March 31, Reliv's worldwide distributor base was 68,690, which represents a 6.2 percent increase of total distributors compared with the end of the first quarter of 2006. The United States reported its best quarter for distributor sign-ups in more than 10 years, gaining 40 percent vs. the first quarter of 2006.
"U.S. distributors continue to be excited by the potential for Slimplicity, and we believe the worldwide market for Slimplicity has greater potential than the U.S. market," Montgomery said. Reliv is in the process of obtaining approval for the sale of Slimplicity in non-U.S. markets.
During the first quarter, in addition to the launch of Slimplicity, Reliv introduced its redesigned Web site, http://www.reliv.com, to positive public response. The site has an improved look and it's easier to navigate than the previous site.
The company also debuted a new basic training program for its distributor force in the first quarter. "We are confident that the new training will help our many new distributors get off to a great start," Montgomery said.
Reliv's proprietary nutritional supplements, its outstanding business opportunity and a proven system designed to help distributors build their businesses also were important factors in Reliv's first-quarter performance.
Reliv will host a conference call to discuss first quarter 2007 earnings with investors at 1:00 p.m. Eastern Time on May 2, 2007. The dial-in number for investors is 866-578-5771. The participant passcode is 86923338. 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 28215664. 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 68,000 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.