Reliv International Reports Third Quarter Financial Results
Net sales for the quarter were $15.3 million, an 11.7 percent decrease from the third quarter last year. Net U.S. sales totaled $12.1 million, down from third-quarter 2011 net sales of $14.1 million. Net sales outside of the United States rose 0.9 percent in the third quarter of 2012 compared to the prior-year quarter, buoyed by the European market where net sales increased by 39.2 percent.
Net income for the third quarter of 2012 was $287,000 or $0.02 per diluted share, compared to $49,000 or $0.00 per diluted share in the 2011 third quarter. The 2012 quarter's increase was due to a one-time after-tax gain of approximately $247,000 resulting from a discounted balance due on a purchase agreement entered into in a previous year. Income/loss from operations for the third quarter of 2012 was a loss of $32,000 compared to income of $168,000 in the same quarter of 2011.
Europe remained Reliv's leading growth market with net sales increasing to $1.39 million in the third quarter of 2012 compared to $1.00 million in the prior-year third quarter. "The number of active Reliv distributors in Europe has nearly doubled from the same time last year," said Robert L. Montgomery, chairman and chief executive officer of Reliv.
"In the United States, we are turning to product innovation to generate excitement and spark sales growth," Montgomery said. "Our relationship with the Missouri Plant Science Center has already produced LunaRich soy powder -- now used in five Reliv product formulas -- and we are actively working on additional exclusive ingredients. The scientific community is now embracing the science behind LunaRich, and through public relations efforts, we anticipate significantly increasing awareness of LunaRich and of Reliv."
"We are empowering distributors with new business tools, giving them more choices in how they share Reliv with prospects," he added. "We have also introduced online enhancements that make it easier for new customers and distributors to sign up. I believe these initiatives will help increase our sponsoring numbers moving forward."
Reliv's total distributor count was 58,570 as of September 30, 2012 -- an increase of 1.6 percent from the same date in 2011 -- of which 6,710 are Master Affiliate level and above. Master Affiliate is the level at which distributors are eligible to earn generation royalties. The growth in the distributor count is related to the sales growth in Europe, offset by a decline in the distributor count in the United States.
Net cash generated from operating activities in the first nine months of 2012 totaled $1.06 million, representing a decrease of $1.19 million over the first nine months of 2011. Reliv had cash and cash equivalents of $4.9 million as of September 30, 2012, a decrease of $2.2 million from the same date last year.
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