Chesterfield, Misssouri, USA Reliv International, Inc. (NasdaqGS: RELV), a nutrition and direct selling company, reported its fourth-quarter and full-year 2008 earnings end of February.

Fourth-quarter results

Net sales for the quarter were US$22.1 million compared to net sales of US$24.6 million in the fourth quarter of 2007. Net income for the fourth quarter of 2008 was US$250,000 or US$0.02 per diluted share, compared to net income of US$697,000 or US$0.04 per diluted share in the 2007 fourth quarter.

During the fourth-quarter of 2008, U.S. net sales totaled US$19.4 million, down 8.0 percent from the 2007 fourth quarter. International sales, or sales outside of the United States, dropped to US$2.7 million in the quarter compared to US$3.5 million in the prior year quarter. Foreign currency exchange fluctuations accounted for approximately half of the reported sales decline. Income from operations in the fourth quarter of 2008 rose to US$1.3 million compared to US$1.1 million the 2007 fourth quarter.

Net income and fully diluted earnings per share for the fourth quarter, excluding non-cash investment losses on a private equity fund and other investments, was US$850,000, or US$0.06 per share. During the quarter, Reliv incurred investment losses totaling US$336,000, for which the company does not expect to receive an income tax benefit as it does not anticipate having sufficient future capital gains to offset these current year capital losses. Excluding these charges, Reliv's net income showed an improvement over the fourth quarter of 2007.

Full-year results

Net sales for the full year of 2008 equaled US$98.2 million, down 11.6 percent from 2007 net sales. Sales outside of the U.S. rose 0.8 percent to US$12.8 million. U.S. sales for 2008, however, declined 13.2 percent to US$85.4 million.

Net income for 2008 was US$2.9 million or US$0.19 per diluted share, down from US$5.0 million or US$0.31 per diluted share in 2007. The 2008 results reflect one-time charges of US$0.05 per diluted share from the investment losses and related tax consequences which occurred primarily in the fourth quarter. Excluding the one-time charges, diluted EPS would have been US$0.24.

Net cash generated from operating activities was US$4.4 million for 2008, down from US$4.8 million for 2007, and we had cash and cash-equivalents of US$4.5 million as of Dec. 31, 2008. As of Dec. 31, 2008, Reliv had approximately 67,340 distributors, down 3.8 percent from Dec. 31, 2007.

Robert L. Montgomery, president, chairman and chief executive officer of Reliv, said, ‘‘We are pleased by the increase in operating income in the fourth quarter, which we achieved by reducing and controlling costs throughout the company.''

‘‘During the quarter we also had a successful introduction of GlucAffect, a new product that supports blood-sugar management and weight loss,'' Montgomery said. ‘‘Customers are reporting solid results from the product, and distributors are excited about it as well,'' he said.

‘‘U.S. sign-ups in January 2009 were the best in nearly two years, and global sponsoring was also very strong,'' Montgomery said. ‘‘A successful U.S. National Conference in Fort Worth, Texas, earlier this month generated great excitement among our distributor force. The combination of sponsorship and excitement makes me optimistic as I look forward in 2009,'' he said.

‘‘Our major focus in 2009 will be increasing sponsorship levels which should lead to top-line growth. Our business opportunity is a great match for many people who are looking for additional income during this recession. And Reliv makes nutrition simple by providing optimal nutrition with two shakes a day,'' Montgomery added.