EX-99.1 2 exhibit99_1.htm EXHIBIT 99.1 PRESS RELEASE DATED 082305 Exhibit 99.1 Press Release dated 082305

 
WNI Logo
 
Company Contact:
Agency Contact:
Joseph W. Baty, Chief Financial Officer
Keith Lippert / Kirsten Chapman
(801) 975-5186
Lippert/Heilshorn & Associates
email: joeb@weider.com 
(212) 838-3777 / (415) 433-3777
www.weider.com 
email: kirsten@lhai-sf.com 
 
 
WEIDER ANNOUNCES FISCAL 2005 FOURTH QUARTER & YEAR-END RESULTS

Salt Lake City, Utah, August 23, 2005: Weider Nutrition International, Inc. (NYSE: WNI, doing business as Schiff Nutrition) today announced results for the fiscal 2005 fourth quarter and year ended May 31, 2005.

Weider Nutrition’s net sales were $57.0 million for the fiscal 2005 fourth quarter, compared to $59.1 million for the same period in fiscal 2004. For the fourth quarter, Weider Nutrition recognized a pre-tax asset impairment loss of $9.3 million related to the Haleko buisness unit and reported a net loss of $1.8 million, or $(0.07) per share, compared to net income of $1.5 million, or $0.05 per diluted share, for the same period a year ago.

For fiscal 2005, Weider Nutrition’s net sales were $239.9 million, compared to fiscal 2004 net sales of $235.0 million. For fiscal 2005, Weider Nutrition reported net income of $6.6 million, or $0.25 per diluted share, compared to net income of $8.9 million, or $0.33 per diluted share, for fiscal 2004.

As previously announced, the company sold its Weider® branded business during the fiscal 2005 fourth quarter. Historical results for the Weider branded business are reflected as discontinued operations for all periods presented. Also as previously announced, the company sold its Germany based Haleko business unit effective during the first quarter of fiscal 2006. For current financial reporting purposes, Haleko’s financial results are included in the consolidated operating results for all periods presented. Beginning in the fiscal 2006 first quarter, historical financial results for Haleko will be reflected as discontinued operations.
 
Bruce Wood, president and chief executive officer, stated, “We experienced a challenging fourth quarter due to the weak performance of our recently divested Haleko business unit and from margin pressure due to continued high raw material costs in our joint care business. The sale of our Haleko business unit allows us to focus on our long term goal of driving profitable revenue growth in our ongoing operations. The Schiff® Specialty unit, which now includes the Tiger’s Milk® and Fi-Bar® nutrition brands, achieved a solid branded sales increase in the fourth quarter, behind higher marketing support."

Wood went on to state, “We are continuing to invest in our brands and new products, and to look for acquisition opportunities. We remain optimistic about the long term growth potential of the supplements category.”



Conference Call Information
Weider Nutrition International will hold a conference call today, August 23, 2005 at 11 a.m. ET. The U.S. domestic access number is (888) 396-2356. International participants should dial (617) 847-8709. Please call in approximately ten minutes in advance. The conference call will be broadcast live over the Internet at www.schiffnutrition.com. If you do not have Internet access, a replay of the call will be available by dialing 1-888-286-8010 and entering access code 35938779; for international callers by dialing 617-801-6888, reservation number 35938779. The telephone replay will be available through August 25, 2005 and the webcast through September 13, 2005.

About Weider Nutrition
Weider Nutrition International, Inc., doing business as Schiff Nutrition International, develops, manufactures, markets and sells branded and private label vitamins, nutritional supplements and sports nutrition products in the United States and throughout the world. To learn more about Weider, 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, as amended, and section 21E of the Securities Exchange Act of 1934, as amended, that are based on management’s beliefs and assumptions, current expectations, estimates, and projections. These statements are subject to risks and uncertainties, certain of which are beyond the company’s ability to control or predict, and, therefore, actual results may differ materially. Weider Nutrition disclaims any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.

Important factors that may cause these forward looking statements to be false include, but are not limited to: the inability to successfully implement marketing and spending programs behind our Move Free brand and other branded new products, the impact of raw material pricing and availability (particularly relating to joint care products), 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 success of product development, the inability to obtain customer acceptance of new product introductions, changes in laws and regulations, litigation and government regulatory action, uncertainty of market acceptance of new products, adverse publicity regarding the consumption of nutritional supplements, the inability to find strategic aquisitions or the inability to successfully consummate or integrate an acquistion, 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 website (www.sec.gov).

- Tables to Follow -



WEIDER NUTRITION INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)


   
Three Months Ended May 31,
 
Year Ended May 31,
 
   
2005
 
2004
 
2005
 
2004
 
   
(Unaudited)
         
                   
Net sales
 
$
56,968
 
$
59,124
 
$
239,854
 
$
234,974
 
Cost of goods sold
   
39,402
   
36,671
   
156,280
   
147,139
 
                           
Gross profit
   
17,566
   
22,453
   
83,574
   
87,835
 
Operating expenses:
                         
Selling and marketing
   
11,010
   
10,956
   
45,806
   
43,593
 
Asset impairment loss
   
9,346
   
--
   
9,346
   
--
 
Other operating expenses
   
4,285
   
7,986
   
22,984
   
27,615
 
Total operating expenses
   
24,641
   
18,942
   
78,136
   
71,208
 
                           
Income (loss) from operations
   
(7,075
)
 
3,511
   
5,438
   
16,627
 
Other income (expense), net
   
34
   
(353
)
 
(83
)
 
(542
)
                           
Income (loss) from continuing operations before income taxes
   
(7,041
)
 
3,158
   
5,355
   
16,085
 
Income taxes (benefit)
   
(5,239
)
 
1,125
   
(467
)
 
6,097
 
                           
Income (loss) from continuing operations
   
(1,802
)
 
2,033
   
5,822
   
9,988
 
Income (loss) from discontinued operations, net of tax(1)
   
--
   
(572
)
 
747
   
(1,101
)
                           
Net income (loss)
 
$
(1,802
)
$
1,461
 
$
6,569
 
$
8,887
 
                           
Weighted average common shares outstanding - diluted(2)
   
26,036
   
26,621
   
26,418
   
26,771
 
                           
Net income (loss) per share - diluted:
                         
Income (loss) from continuing operations
 
$
(0.07
)
$
0.07
 
$
0.22
 
$
0.37
 
Income (loss) from discontinued operations
   
--
   
(0.02
)
 
0.03
   
(0.04
)
                           
Net income (loss)
 
$
(0.07
)
$
0.05
 
$
0.25
 
$
0.33
 

(1) Amounts for all periods presented have been reclassified to reflect the Weider branded business as discontinued operations.
(2) Except for three months ended May 31, 2005, which is anti-dilutive.
 

-More-



WEIDER NUTRITION INTERNATIONAL, INC.
CONSOLIDATED CONDENSED SEGMENT INFORMATION
(IN THOUSANDS)


Consolidated condensed segment information(3) for three months and year ended May 31, 2005 and 2004, is summarized as follows:

   
Three Months Ended May 31,
 
Year Ended May 31,
 
   
2005
 
2004
 
2005
 
2004
 
                   
Net sales:
                 
Schiff Specialty
 
$
39,947
 
$
40,235
 
$
173,095
 
$
168,128
 
Haleko
   
17,021
   
18,889
   
66,759
   
66,846
 
                           
   
$
56,968
 
$
59,124
 
$
239,854
 
$
234,974
 
                           
Income (loss) from operations:
                         
Schiff Specialty
 
$
1,309
 
$
2,507
 
$
14,763
 
$
13,922
 
Haleko(4)
   
(8,384
)
 
1,004
   
(9,325
)
 
2,705
 
                           
   
$
(7,075
)
$
3,511
 
$
5,438
 
$
16,627
 

(3) Amounts for all periods presented have been reclassified to reflect the Weider branded buisness as discontinued operations.
(4) Three months and year ended May 31, 2005 include asset impairment loss of $9,346.

 
-More-



WEIDER NUTRITION INTERNATIONAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)


   
May 31, 2005
 
May 31, 2004
 
           
Cash
 
$
11,358
 
$
7,449
 
Short-term investments
   
24,212
   
--
 
Receivables, net
   
29,300
   
35,620
 
Inventories
   
32,419
   
28,431
 
Other current assets
   
7,154
   
7,440
 
               
Total current assets
   
104,443
   
78,940
 
               
Property and equipment, net
   
16,714
   
24,618
 
Other assets, net
   
7,109
   
11,366
 
               
     
23,823
   
35,984
 
               
Total assets
 
$
128,266
 
$
114,924
 
               
               
               
Current portion of long-term debt
 
$
3,020
 
$
1,091
 
Other current liabilities
   
35,411
   
31,393
 
               
Total current liabilities
   
38,431
   
32,484
 
               
Other liabilities(5)
   
--
   
6,627
 
               
Total liabilities
   
38,431
   
39,111
 
               
Stockholders’ equity
   
89,835
   
75,813
 
               
Total liabilities & stockholders’ equity
 
$
128,266
 
$
114,924
 

(5) Includes long-term debt of $133 at May 31, 2004.




###