EX-99.1 2 exhibit99_1dated30mar2006.htm EXHIBIT 99.1 PRESS RELEASE DATED MARCH 30, 2006 Exhibit 99.1 Press Release dated March 30, 2006


 EXHIBIT 99.1
 
Company Contact:
Agency Contact:
Joseph W. Baty, Chief Financial Officer
Keith Lippert / Kirsten Chapman
(801) 975-5186
Lippert / Heilshorn & Associates
email: joeb@schiffnutrition.com 
(212) 838-3777 / (415) 433-3777
www.schiffnutrition.com
email: kirsten@lhai-sf.com 

 
SCHIFF NUTRITION INTERNATIONAL, INC. ANNOUNCES FISCAL 2006
THIRD QUARTER RESULTS
 
Salt Lake City, Utah, March 30, 2006: Schiff Nutrition International, Inc. (formerly Weider Nutrition International, Inc.), (NYSE: WNI), today announced results for the fiscal 2006 third quarter and nine months ended February 28, 2006.
 
Schiff Nutrition’s net sales were $49.6 million for the three months ended February 28, 2006, compared to $45.2 million for the same period in fiscal 2005. For its fiscal 2006 third quarter, Schiff Nutrition reported net income of $3.2 million, or $0.12 per share, compared to $1.2 million, or $0.05 per share, for the same period a year ago.
 
Schiff Nutrition’s net sales were $133.1 million for both the nine months ended February 28, 2006, and the comparable period in fiscal 2005. For the first nine months of fiscal 2006, Schiff Nutrition reported net income of $9.7 million, or $0.36 per share, compared to $8.4 million, or $0.32 per share, for the same period a year ago.
 
Bruce Wood, President and Chief Executive Officer, stated, “We were encouraged by our overall 9.9 percent sales increase versus the year ago quarter, driven by our 29 percent increase in branded sales. At the same time, we experienced improvement in our gross margin, which along with the strong sales increase, contributed to the significant increase in earnings.”
 
Wood continued, “We were also pleased with initial marketplace reaction to our Move Free® Advanced Formula launch during the quarter, based on our sales results and consumer point of sale data. Move Free Advanced has reached the retail shelves of many of our customers. We initiated marketing support of the Move Free Advanced Formula in February, and we expect the level of investment to accelerate in the fiscal fourth quarter. We remain confident that our continued strategic focus on profitable branded growth will positively impact fiscal 2007 and beyond.”
 
Conference Call Information
 
Schiff Nutrition International will hold a conference call today, March 30 at 11 a.m. ET. The U.S. domestic access number is 866-700-0133. International participants should dial 617-213-8831. 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. 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 79135655. The telephone replay will be available through April 3, 2006.
 

 
About Schiff Nutrition
 
Schiff Nutrition International, Inc. (formerly Weider 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, 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. Schiff 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 launch Move Free Advanced, customer and consumer acceptance of Move Free Advanced, the inability to successfully implement marketing and spending programs behind our Move Free brand and other new branded products, the impact of raw material pricing, availability and quality (particularly relating to joint care products), the mix between branded and private label products and our ability to grow branded sales, 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, the inability to obtain product liability insurance, 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 web site (www.sec.gov).
 

 

 

 

 

 
- Tables to Follow -
 

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

   
Three Months Ended
February 28,
 
Nine Months Ended
February 28,
 
   
2006
 
2005
 
2006
 
2005
 
                   
Net sales
 
$
49,641
 
$
45,185
 
$
133,114
 
$
133,148
 
Cost of goods sold
   
32,709
   
30,988
   
92,263
   
86,105
 
                           
Gross profit
   
16,932
   
14,197
   
40,851
   
47,043
 
Operating expenses:
                         
Selling and marketing
   
8,527
   
7,736
   
20,603
   
21,093
 
Other operating expenses
   
4,157
   
3,578
   
10,834
   
12,497
 
Total operating expenses
   
12,684
   
11,314
   
31,437
   
33,590
 
                           
Income from operations
   
4,248
   
2,883
   
9,414
   
13,453
 
Other income (expense), net
   
502
   
37
   
2,756
   
(149
)
Income from continuing operations before income taxes
   
4,750
   
2,920
   
12,170
   
13,304
 
Income taxes
   
1,561
   
1,124
   
2,384
   
5,121
 
                           
Income from continuing operations
   
3,189
   
1,796
   
9,786
   
8,183
 
Income (loss) from discontinued operations, net of tax
   
   
(577
)
 
(127
)
 
188
 
                           
Net income
 
$
3,189
 
$
1,219
 
$
9,659
 
$
8,371
 
                           
Weighted average common shares outstanding - diluted
   
27,044
   
26,583
   
26,895
   
26,545
 
                           
                           
Net income per share - diluted:
                         
Income from continuing operations
 
$
0.12
 
$
0.07
 
$
0.36
 
$
0.31
 
Income (loss) from discontinued operations
   
   
(0.02
)
 
   
0.01
 
                           
Net income
 
$
0.12
 
$
0.05
 
$
0.36
 
$
0.32
 




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


   
February 28,
2006
 
May 31,
2005
 
   
(unaudited)
     
           
Cash and cash equivalents
 
$
27,315
 
$
11,358
 
Investment securities
   
34,748
   
24,212
 
Receivables, net
   
17,992
   
29,300
 
Inventories
   
20,864
   
32,419
 
Other current assets
   
5,286
   
7,154
 
               
Total current assets
   
106,205
   
104,443
 
               
Property and equipment, net
   
12,841
   
16,714
 
Other assets, net
   
4,866
   
7,109
 
               
     
17,707
   
23,823
 
               
Total assets
 
$
123,912
 
$
128,266
 
               
Short-term debt
 
$
245
 
$
3,020
 
Other current liabilities
   
22,064
   
35,411
 
               
Total current liabilities
   
22,309
   
38,431
 
               
Deferred taxes
   
1,501
   
 
               
Stockholders’ equity
   
100,102
   
89,835
 
               
Total liabilities & stockholders’ equity
 
$
123,912
 
$
128,266
 







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