EX-99.1 2 ex99_1pressreleasefy06q1.htm EXHIBIT 99.1 - PRESS RELEASE DATED OCT. 04, 2005 - FY'06 Q1 Exhibit 99.1 - Press Release Dated Oct. 04, 2005 - FY'06 Q1
 


 
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 2006 FIRST QUARTER RESULTS

Salt Lake City, Utah, October 4, 2005: Weider Nutrition International, Inc. (NYSE: WNI, doing business as Schiff Nutrition) today announced results for the fiscal 2006 first quarter ended August 31, 2005.

Weider Nutrition’s net sales were $48.0 million for the first quarter, compared to $43.7 million for the same period in fiscal 2005. For its fiscal 2006 first quarter, Weider Nutrition reported net income of $4.9 million, or $0.18 per share, compared to $3.7 million, or $0.14 per share, for the same period a year ago.

Bruce Wood, president and chief executive officer, stated, “The approximate 9.9 percent net sales increase for our first quarter was fueled by a 16.9 percent increase in branded sales, most notably in our Move Free® joint care brand. As expected, we experienced erosion in our gross margin primarily due to the ongoing higher raw material costs in a price competitive market. Our earnings per share increase was aided by a more favorable effective tax rate and certain unusual income items.”

Wood added, “We are encouraged by the solid sales results in the quarter, and by the positive results contained in the abstract of the National Institutes of Health Glucosamine/Chondroitin Arthritis Intervention Trial [NIH GAIT] joint care study regarding glucosamine and chondroitin. This seminal study, coupled with positive results on glucosamine contained in the abstract from the recently completed European Glucosamine Unum In Die Efficacy Trial [GUIDE Trial], give us reason to remain confident in the long-term potential of the joint care category.”

Conference Call Information
Weider Nutrition International will hold a conference call today, October 4, 2005 at 11 a.m. ET. The U.S. domestic access number is (866) 831-6162. International participants should dial (617) 213-8852. 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 75501755;
for international callers by dialing 617-801-6888, access code 75501755. The telephone replay will be available through October 6, 2005 and the webcast
through October 24, 2005.


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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 website 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 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 regulatory action, uncertainty of market acceptance of new products, adverse publicity regarding the consumption of nutritional supplements, the inability to find strategic acquisitions or the inability to successfully consummate or integrate an acquisition, 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).


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

   
Three Months Ended
August 31,
 
   
2005
 
2004
 
           
Net sales
 
$
48,017
 
$
43,695
 
Cost of goods sold
   
35,308
   
26,892
 
               
Gross profit
   
12,709
   
16,803
 
Operating expenses:
             
Selling and marketing
   
6,016
   
7,213
 
Other operating expenses
   
2,916
   
4,633
 
Total operating expenses
   
8,932
   
11,846
 
               
Income from operations
   
3,777
   
4,957
 
Other income (expense), net
   
1,949
   
(170
)
Income from continuing operations before income taxes
   
5,726
   
4,787
 
Income taxes
   
734
   
1,844
 
               
Income from continuing operations
   
4,992
   
2,943
 
Income (loss) from discontinued operations, net of tax
   
(57
)
 
745
 
               
Net income
 
$
4,935
 
$
3,688
 
               
Weighted average common shares outstanding - diluted
   
26,774
   
26,564
 
               
Net income per share:
             
Income from continuing operations
 
$
0.19
 
$
0.11
 
Income (loss) from discontinued operations
   
(0.01
)
 
0.03
 
               
Net income
 
$
0.18
 
$
0.14
 








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




   
August 31, 2005
 
May 31, 2005
 
   
(unaudited)
     
           
Cash and cash equivalents
 
$
21,205
 
$
11,358
 
Short-term investments
   
30,475
   
24,212
 
Receivables, net
   
21,047
   
29,300
 
Inventories
   
17,522
   
32,419
 
Other current assets
   
5,316
   
7,154
 
               
Total current assets
   
95,565
   
104,443
 
               
Property and equipment, net
   
13,130
   
16,714
 
Other assets
   
5,000
   
7,109
 
               
     
18,130
   
23,823
 
               
Total assets
 
$
113,695
 
$
128,266
 
               
Short-term debt
 
$
252
 
$
3,020
 
Other current liabilities
   
18,073
   
35,411
 
               
Total current liabilities
   
18,325
   
38,431
 
               
Deferred taxes
   
680
   
 
               
Stockholders’ equity
   
94,690
   
89,835
 
               
Total liabilities & stockholders’ equity
 
$
113,695
 
$
128,266
 









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