Schiff Nutrition International, Inc. (NYSE:WNI), today announced results
for the fiscal 2009 third quarter and nine months ended February 28,
2009.
Schiff Nutrition’s net sales were $49.9 million for the third quarter,
compared to $46.2 million for the same period in fiscal 2008. For its
fiscal 2009 third quarter, Schiff Nutrition reported net income of $3.6
million, or $0.13 per diluted share, as compared to $4.0 million, or
$0.14 per diluted share, for the fiscal 2008 third quarter, which
included a pre-tax compensation charge of approximately $630,000 related
to the fiscal 2008 first quarter special dividend.
Schiff Nutrition’s net sales were $145.0 million for the nine months
ended February 28, 2009, compared to $126.5 million for the same period
in fiscal 2008. For the first nine months of fiscal 2009, Schiff
Nutrition reported net income of $9.8 million, or $0.34 per diluted
share, compared to $8.5 million, or $0.31 per diluted share, for the
same period a year ago, which included a pre-tax compensation charge of
approximately $4.3 million related to the fiscal 2008 first quarter
special dividend.
Bruce Wood, President and Chief Executive Officer, stated, “We delivered
a 7.9% increase in overall net sales in the third quarter, versus the
year ago period. The increase was driven by substantial growth in our
private label business and expanded distribution of our Schiff® MegaRed®
new product, partially offset by a decline in our other branded
business. Gross profit and operating income margins decreased in the
quarter versus a year ago as a result of the change in sales mix and
higher raw material costs. At the same time, we increased consumer
marketing expenditures in the quarter, reflecting the commitment to
supporting our brands, while reducing discretionary operating expenses.”
Wood added, “We continue to be encouraged with the performance of our
Schiff MegaRed Omega-3 Krill Oil product. In February, we initiated a
national marketing campaign to support its growth. Despite the extreme
economic conditions generally, and the intense competitive climate in
the supplements category, we have remained profitable and financially
strong. We believe we have the resources to capitalize on MegaRed and
other new growth opportunities and are well positioned to compete
aggressively over the long term.”
Conference Call Information
Schiff Nutrition International will hold a conference call today, March
17 at 11:00 a.m. ET. The U.S. domestic access number is 800-291-5365.
International participants should dial 617-614-3922. The participant
passcode is 90486685. Please call in approximately ten minutes in
advance. The conference call will be broadcast live over the Internet at http://www.schiffnutrition.com/press.asp,
and the webcast will be available through April 6, 2009. A replay of the
call will be available by dialing 888-286-8010 for domestic callers and
617-801-6888 for international callers; enter access code 99065683. The
telephone replay will be available through March 19, 2009.
About Schiff Nutrition
Schiff Nutrition International, Inc. develops, manufactures, markets and
distributes branded and private label vitamins, nutritional supplements
and nutrition bars in the United States and throughout the world. To
learn more about Schiff, please visit the web site www.schiffnutrition.com.
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934 that are based on management’s
beliefs and assumptions, current expectations, estimates, and
projections. These statements are subject to known and unknown risks and
uncertainties, certain of which are beyond the company’s ability to
control or predict, and, therefore, actual results may differ
materially. Any forward-looking statements are made pursuant to the
Private Securities Litigation Reform Act of 1995 and, as such, speak
only as of the date hereof. Schiff Nutrition disclaims any obligation to
update any forward-looking statements whether as a result of new
information, future events or otherwise. You are cautioned not to place
undue reliance on these forward-looking statements.
Important factors that may cause these forward-looking statements to be
false include, but are not limited to: the level of customer and
consumer acceptance of Move Free® Advanced, the level of customer and
consumer acceptance of MegaRed, the inability to gain or maintain market
distribution for MegaRed, the inability to successfully implement
marketing and spending programs behind our Move Free, MegaRed and other
branded products, the impact of raw material pricing, availability and
quality (particularly relating to joint care products and ingredients
from suppliers outside the United States, including China), the mix
between branded and private label products, the inability to grow and/or
maintain branded and private label sales, the inability to enforce or
protect our intellectual property rights against infringement, the
inability to achieve cost savings and operational efficiencies, the
inability to increase operating margins and increase revenues,
dependence on individual products, dependence on individual customers,
the impact of competitive products and pricing (including private
label), market and industry conditions (including pricing, demand for
products and level of trade inventories), the impact of clinical studies
regarding nutritional supplements, particularly relating to the joint
care category, the success of product development, the inability to
obtain customer acceptance of new product introductions, changes in laws
and regulations, litigation and government or administrative regulatory
action in the United States and internationally, including challenges to
marketing, advertising or product claims, the inability to comply with
or maintain new good manufacturing practices for the dietary supplement
industry, the inability or increased cost to obtain product liability
and general insurance, the uncertainty of market acceptance of new
products, adverse publicity regarding nutritional supplements and/or
their ingredients, the inability to find strategic transaction
opportunities or the inability to successfully consummate or integrate a
strategic transaction, changes in accounting standards, and other
factors indicated from time to time in the company’s SEC reports, copies
of which are available upon request from the company’s investor
relations department or may be obtained at the SEC's web site (www.sec.gov).
These risks and uncertainties should be carefully considered before
making an investment decision with respect to shares of our common stock.
|
SCHIFF NUTRITION INTERNATIONAL, INC.
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|
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
|
|
(in thousands, except per share amounts)
|
|
(unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
|
Nine Months Ended
|
|
|
|
February 28,
|
|
|
February 29,
|
|
|
February 28,
|
|
|
February 29,
|
|
|
2009
|
|
|
2008
|
|
|
2009
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
49,872
|
|
|
$
|
46,208
|
|
|
$
|
144,955
|
|
|
$
|
126,470
|
|
Cost of goods sold
|
|
|
32,563
|
|
|
|
25,794
|
|
|
|
92,165
|
|
|
|
73,074
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
17,309
|
|
|
|
20,414
|
|
|
|
52,790
|
|
|
|
53,396
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and marketing
|
|
|
8,227
|
|
|
|
8,612
|
|
|
|
24,772
|
|
|
|
22,104
|
|
Other operating expenses
|
|
|
3,871
|
|
|
|
5,659
|
|
|
|
13,326
|
|
|
|
19,170
|
|
Total operating expenses(1)
|
|
|
12,098
|
|
|
|
14,271
|
|
|
|
38,098
|
|
|
|
41,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
|
5,211
|
|
|
|
6,143
|
|
|
|
14,692
|
|
|
|
12,122
|
|
Other income, net
|
|
|
117
|
|
|
|
424
|
|
|
|
656
|
|
|
|
1,623
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
5,328
|
|
|
|
6,567
|
|
|
|
15,348
|
|
|
|
13,745
|
|
Income tax expense
|
|
|
1,712
|
|
|
|
2,524
|
|
|
|
5,571
|
|
|
|
5,251
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
3,616
|
|
|
$
|
4,043
|
|
|
$
|
9,777
|
|
|
$
|
8,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding - diluted
|
|
|
28,657
|
|
|
|
28,188
|
|
|
|
28,645
|
|
|
|
27,767
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share - diluted
|
|
$
|
0.13
|
|
|
$
|
0.14
|
|
|
$
|
0.34
|
|
|
$
|
0.31
|
(1) In association with declaration of a special dividend,
the three and nine months ended February 29, 2008, respectively,
includes $630 and $4,290 compensation charge associated with dividend
equivalents paid or payable on stock options and certain restricted
stock units.
|
SCHIFF NUTRITION INTERNATIONAL, INC.
|
|
CONSOLIDATED CONDENSED BALANCE SHEETS
|
|
(in thousands)
|
|
|
|
|
|
February 28,
|
|
|
May 31,
|
|
|
|
2009
|
|
|
2008
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
50,372
|
|
|
$
|
45,979
|
|
Available-for-sale securities
|
|
|
4,873
|
|
|
|
3,298
|
|
Receivables, net
|
|
|
19,675
|
|
|
|
22,536
|
|
Inventories
|
|
|
33,759
|
|
|
|
29,233
|
|
Other current assets
|
|
|
4,542
|
|
|
|
3,709
|
|
|
|
|
|
|
|
|
|
|
Total current assets
|
|
|
113,221
|
|
|
|
104,755
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net
|
|
|
14,184
|
|
|
|
13,567
|
|
|
|
|
|
|
|
|
|
|
Other assets, net
|
|
|
5,709
|
|
|
|
6,164
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
133,114
|
|
|
$
|
124,486
|
|
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
$
|
22,933
|
|
|
$
|
23,274
|
|
|
|
|
|
|
|
|
|
|
Long-term liabilities
|
|
|
1,181
|
|
|
|
1,725
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity
|
|
|
109,000
|
|
|
|
99,487
|
|
|
|
|
|
|
|
|
|
|
Total liabilities & stockholders’ equity
|
|
$
|
133,114
|
|
|
$
|
124,486
|
Schiff Nutrition International, Inc.
Joseph W. Baty, 801-975-5186
Chief
Financial Officer
joeb@schiffnutrition.com
www.schiffnutrition.com
or
Lippert
/ Heilshorn & Associates
Keith Lippert, 212-838-3777
Kirsten
Chapman, 415-433-3777
kchapman@lhai.com