Reliv International Reports Third-Quarter Financial Results for 2020
Reliv International reported third-quarter 2020 net sales of $8.7 million, down 5.3% from $9.1 million in Q3 2019. U.S. sales decreased by 2.4%, largely influenced by previous product launches. Foreign sales were more affected, dropping 13.9%, with significant declines in Asia and Europe due to COVID-19. The net loss for the quarter was $125,000 versus $166,000 in the prior year. Although cash reserves grew to $3.3 million, the company plans to implement a reverse stock split as part of a strategy to delist from NASDAQ.
- Net income for the first nine months of 2020 was $339,000, up from $70,000 in the same period last year.
- 3.8% increase in U.S. net sales for the first nine months of 2020.
- Q3 net sales decreased by 5.3% year-over-year.
- Foreign sales decreased by 13.9% in Q3 2020.
- Net loss from operations increased to $167,000 in Q3 2020.
CHESTERFIELD, Mo., Nov. 13, 2020 /PRNewswire/ -- Reliv International, Inc. (NASDAQ:RELV), a marketer of nutritional supplements that promote optimal health, today reported its financial results for the third quarter of 2020.
Reliv reported net sales of
Net sales in Reliv's foreign markets decreased by
Reliv reported a net loss for the third quarter of 2020 of
Net sales for the first nine months of 2020 were
Reliv reported net income of
Reliv had cash and cash equivalents of
As of September 30, 2020, Reliv had 24,850 active Distributors – a decrease of
"We believe Reliv is positioned well in the nutrition and work from home industries. The challenges caused by the COVID-19 pandemic continue, but we're pleased with how our field has adapted with more frequent use of online technology to communicate and operate," commented Ryan A. Montgomery, Chief Executive Officer. "We believe the work done this summer and early fall with virtual conferences and other tools will lead to stronger sales for the remainder of the year."
Reliv has hosted online conferences targeted to its North American and European regions over the past three months and will host one for its Asia-Pacific region in November. "We are pleased with the content created and presented to much of the Reliv world, not only for its immediate impact, but the long-term value created by the mobile app and online content for customer acquisition and distributor training," said Montgomery.
In international operations, net sales in Reliv's key markets in Europe and Asia continue to be challenged as local COVID-19 guidelines still are generally more restrictive than those in the United States. "Foreign sales, particularly in the Philippines, continue to be dampened by the pandemic," noted Montgomery. "However, we believe we still have a solid base of business in our foreign markets and feel sales will rebound as the world emerges from this global crisis. We firmly believe the efficacy of our products and value of our home-based business opportunity play a role in this recovery."
Last month, Reliv announced its intention to effect a reverse stock split, followed by a forward split of its common stock as part of a plan to delist its stock from NASDAQ and suspend its filing obligations to the U.S. Securities and Exchange Commission. Reliv believes the costs of being a public reporting company far outweigh its benefits. Reliv expects the plan to be complete on or after November 29, 2020.
About Reliv International, Inc.
Reliv International, based in Chesterfield, MO, develops and markets nutritional supplements that promote optimal nutrition. Reliv supplements address core nutrition, targeted solutions and overall wellness and now include a line of RLV hemp extracts. Reliv is the exclusive provider of LunaRich® products, which optimize levels of lunasin, a soy peptide that works at the epigenetic level to promote optimal health. The company sells its products through an international direct selling system of independent distributors in 13 countries. Learn more about Reliv at reliv.com, or on Facebook, Twitter or Instagram.
Statements made in this news 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 the Company's web site, reliv.com.
--FINANCIAL HIGHLIGHTS FOLLOW –
Reliv International, Inc. and Subsidiaries | |||||
Condensed Consolidated Balance Sheets | |||||
September 30 | December 31 | ||||
2020 | 2019 | ||||
(Unaudited) | (Audited) | ||||
Assets | |||||
Current Assets: | |||||
Cash and cash equivalents | |||||
Accounts receivable, less allowances of | |||||
58,157 | 107,369 | ||||
Notes & accounts receivables & deposits - related parties | 1,106,221 | 1,099,228 | |||
Inventories | 2,828,738 | 2,701,688 | |||
Other current assets | 490,620 | 326,454 | |||
Total current assets | 7,823,411 | 5,865,518 | |||
Notes & accounts receivables - related parties | 2,331,844 | 2,418,921 | |||
Other assets | 2,343,238 | 2,581,717 | |||
Net property, plant and equipment | 4,208,008 | 4,440,840 | |||
Total Assets | |||||
Liabilities and Stockholders' Equity | |||||
Accounts payable, accruals & other current liabilities | |||||
Long-term debt - current | 977,229 | 500,000 | |||
Long-term debt, less current portion | 384,771 | - | |||
Other noncurrent liabilities | 214,209 | 216,196 | |||
Stockholders' equity | 11,433,841 | 11,101,643 | |||
Total Liabilities and Stockholders' Equity | |||||
Consolidated Statements of Operations | |||||
Three months ended September 30 | Nine months ended September 30 | ||||
2020 | 2019 | 2020 | 2019 | ||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||
Product sales | |||||
Freight income | 489,479 | 521,192 | 1,494,281 | 1,521,014 | |
Other revenue | 243,478 | 231,732 | 617,922 | 564,389 | |
Net Sales | 8,668,344 | 9,148,865 | 26,967,569 | 26,895,382 | |
Costs and expenses: | |||||
Cost of goods sold | 2,290,223 | 2,497,993 | 7,147,554 | 7,200,716 | |
Distributor royalties and commissions | 2,801,005 | 2,939,187 | 8,719,538 | 8,721,852 | |
Selling, general and administrative | 3,744,220 | 3,796,276 | 11,023,006 | 11,224,748 | |
Total Costs and Expenses | 8,835,448 | 9,233,456 | 26,890,098 | 27,147,316 | |
Income (loss) from operations | (167,104) | (84,591) | 77,471 | (251,934) | |
Other income (expense): | |||||
Interest income | 45,904 | 41,548 | 124,614 | 137,028 | |
Interest expense | (6,717) | (24,250) | (20,755) | (39,737) | |
Other income (expense): | 56,202 | (12,564) | 86,234 | (13,224) | |
Gain on sale of fixed assets | - | - | - | 434,549 | |
Income (loss) before income taxes | (71,715) | (79,857) | 267,564 | 266,682 | |
Provision (benefit) for income taxes | 53,000 | 86,000 | (71,000) | 197,000 | |
Net income (loss) | ( | ( | |||
Earnings (loss) per common share - Basic & Diluted | ( | ( | |||
Weighted average shares | 1,746,000 | 1,746,000 | 1,746,000 | 1,746,000 | |
Reliv International, Inc. and Subsidiaries | ||||||||
Net sales by Market | ||||||||
(in thousands) | Three months ended September 30, | Change from | ||||||
2020 | 2019 | prior year | ||||||
Amount | % of Net | Amount | % of Net | Amount | % | |||
United States | $ 6,682 | $ 6,843 | $ (161) | - | ||||
Australia/New Zealand | 148 | 135 | 13 | |||||
Canada | 128 | 140 | (12) | - | ||||
Mexico | 166 | 156 | 10 | |||||
Europe | 629 | 727 | (98) | - | ||||
Asia | 915 | 1,148 | (233) | - | ||||
Consolidated Total | $ 8,668 | $ 9,149 | $ (481) | - | ||||
Net sales by Market | ||||||||
(in thousands) | Nine months ended September 30, | Change from | ||||||
2020 | 2019 | prior year | ||||||
Amount | % of Net | Amount | % of Net | Amount | % | |||
United States | $ 20,613 | $ 19,859 | $ 754 | |||||
Australia/New Zealand | 437 | 445 | (8) | - | ||||
Canada | 412 | 479 | (67) | - | ||||
Mexico | 420 | 444 | (24) | - | ||||
Europe | 2,193 | 2,422 | (229) | - | ||||
Asia | 2,893 | 3,246 | (353) | - | ||||
Consolidated Total | $ 26,968 | $ 26,895 | $ 73 | |||||
Reliv International, Inc. and Subsidiaries | ||||||||||||
Retail and Preferred Customers/Active Distributors/Master Affiliates and Above by Market | ||||||||||||
As of 9/30/2020 | ||||||||||||
Retail Customers | Preferred Customers | Active Distributors | Total Customers | Master | ||||||||
United States | 3,680 | 2,050 | 17,000 | 22,730 | 2,060 | |||||||
Australia/New Zealand | 50 | 280 | 660 | 990 | 80 | |||||||
Canada | 90 | 30 | 460 | 580 | 70 | |||||||
Mexico | 30 | 140 | 1,190 | 1,360 | 90 | |||||||
Europe | 730 | 560 | 1,540 | 2,830 | 260 | |||||||
Asia | 850 | 4,710 | 4,000 | 9,560 | 750 | |||||||
Consolidated Total | 5,430 | 7,770 | 24,850 | 38,050 | 3,310 | |||||||
As of 9/30/2019 | ||||||||||||
Retail Customers | Preferred Customers | Active Distributors | Total Customers | Master | ||||||||
United States | 3,610 | 1,540 | 17,810 | 22,960 | 2,070 | |||||||
Australia/New Zealand | 50 | 220 | 670 | 940 | 70 | |||||||
Canada | 90 | 30 | 500 | 620 | 70 | |||||||
Mexico | 20 | 110 | 1,170 | 1,300 | 90 | |||||||
Europe | 740 | 750 | 1,690 | 3,180 | 310 | |||||||
Asia | 2,390 | 5,450 | 4,060 | 11,900 | 530 | |||||||
Consolidated Total | 6,900 | 8,100 | 25,900 | 40,900 | 3,140 | |||||||
Change in % | ||||||||||||
Retail Customers | Preferred Customers | Active Distributors | Total Customers | Master | ||||||||
United States | - | - | - | |||||||||
Australia/New Zealand | - | |||||||||||
Canada | - | - | ||||||||||
Mexico | ||||||||||||
Europe | - | - | - | - | - | |||||||
Asia | - | - | - | - | ||||||||
Consolidated Total | - | - | - | - | ||||||||
The table above sets forth, as of September 30, 2020 and 2019, the number of our Retail Customers/Preferred Customers/Active Distributors and Master Affiliates and above. The total number of active distributors includes Master Affiliates and above. We define an active retail or preferred customer as one that has placed a product order in the prior twelve months, and we define an active distributor as one that enrolls as a distributor or renews his or her distributorship during the prior twelve months. Many individuals join Reliv as distributors to obtain our products at a discount and may not participate in the Reliv business opportunity. Master Affiliates and above are distributors that have attained the highest level of discount and are eligible for royalties generated by Master Affiliate groups in their downline organization. |
For more information, contact:
Steve Albright
Chief Financial Officer
(636) 733-1305
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SOURCE Reliv International, Inc.
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