EX-99.1 2 exhibit99_1.htm Q307 EXHIBIT 99.1 exhibit99_1.htm
 
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: kchapman@lhai.com
 
 
SCHIFF NUTRITION INTERNATIONAL, INC. ANNOUNCES
FISCAL 2007 THIRD QUARTER RESULTS

Salt Lake City, Utah, Apr. 12, 2007: Schiff Nutrition International, Inc. (NYSE: WNI), today announced results for the fiscal 2007 third quarter and nine months ended February 28, 2007.
 
Schiff Nutrition’s net sales were $45.0 million for the third quarter of fiscal 2007, compared to $49.6 million for the same period in fiscal 2006.  Net income was $3.2 million, or $0.12 per share, for both the fiscal 2007 third quarter and the fiscal 2006 third quarter.
 
Schiff Nutrition’s net sales were $129.5 million for the nine months ended February 28, 2007, compared to $133.1 million for the same period in fiscal 2006.  For the first nine months of fiscal 2007, Schiff Nutrition reported net income of $8.8 million, or $0.32 per diluted share, compared to $9.7 million, or $0.36 per diluted share, for the same period a year ago.  Fiscal 2006 nine month results were favorably impacted by the incremental recognition of approximately $2.0 million in reimbursement of import related costs, the recognition of approximately $1.6 million of non-taxable foreign currency related gain, and an overall effective tax rate of approximately 19.6 percent.

Bruce Wood, President and Chief Executive Officer stated, “We experienced very intense competitive conditions during the third quarter, with incremental promotion spending contributing to the net sales decrease versus the prior year quarter.  A decline in branded sales was partially offset by strength in our private label business.  While the sales decrease resulted in a reduction in gross margin dollars, we are encouraged by the continued improvement in gross profit percentage.”

Wood added, “We remain confident in the long term prospects for our Schiff® branded business, despite the difficult sales comparatives for the third quarter and the ongoing competitive conditions.  We expect to continue our investment behind the Schiff business, with emphasis on our Move Free® brand.  We plan to leverage our strong financial position in this regard, as we look ahead to fiscal 2008.”

Conference Call Information
 
Schiff Nutrition International will hold a conference call today, April 12 at 11:00 a.m. ET.  The U.S. domestic access number is 800-561-2731.  International participants should dial 617-614-3528.  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 89070992.  The telephone replay will be available through April 16, 2007. 


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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, 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 level of 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 and ingredients from suppliers outside the United States), the mix between branded and private label products, the ability 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 regulatory action in the United States and internationally, the inability or increased cost to obtain product liability and general insurance, the 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).  These risks and uncertainties should be carefully considered before making an investment decision with respect to shares of our common stock.










 
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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,
 
   
2007
   
2006
   
2007
   
2006
 
                         
Net sales
  $
44,999
    $
49,641
    $
129,468
    $
133,114
 
Cost of goods sold
   
28,570
     
32,709
     
79,746
     
92,263
 
                                 
Gross profit
   
16,429
     
16,932
     
49,722
     
40,851
 
Operating expenses:
                               
Selling and marketing
   
8,060
     
8,527
     
25,138
     
20,603
 
Other operating expenses
   
3,884
     
4,157
     
13,120
     
10,834
 
Total operating expenses
   
11,944
     
12,684
     
38,258
     
31,437
 
                                 
Income from operations
   
4,485
     
4,248
     
11,464
     
9,414
 
Other income, net
   
716
     
502
     
2,129
     
2,756
 
Income from continuing operations before income taxes
   
5,201
     
4,750
     
13,593
     
12,170
 
Income taxes
   
1,960
     
1,561
     
4,840
     
2,384
 
                                 
Income from continuing operations
   
3,241
     
3,189
     
8,753
     
9,786
 
Loss from discontinued operations, net of tax
   
     
     
      (127 )
                                 
Net income
  $
3,241
    $
3,189
    $
8,753
    $
9,659
 
                                 
Weighted average common shares outstanding - diluted
   
27,353
     
27,044
     
27,333
     
26,895
 
                                 
Net income per share - diluted:
                               
Income from continuing operations
  $
0.12
    $
0.12
    $
0.32
    $
0.36
 
Loss from discontinued operations
   
     
     
     
 
                                 
Net income
  $
0.12
    $
0.12
    $
0.32
    $
0.36
 





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

   
February 28, 2007
   
May 31, 2006
 
   
(unaudited)
       
             
Cash and cash equivalents
  $
30,530
    $
24,899
 
Available-for-sale securities
   
44,224
     
40,120
 
Receivables, net
   
20,507
     
20,431
 
Inventories
   
23,915
     
23,515
 
Other current assets
   
4,244
     
4,863
 
                 
Total current assets
   
123,420
     
113,828
 
                 
Property and equipment, net
   
14,762
     
13,287
 
                 
Other assets, net
   
4,470
     
4,500
 
                 
Total assets
  $
142,652
    $
131,615
 
                 
Total current liabilities
  $
23,104
    $
23,312
 
                 
Deferred taxes
   
73
     
796
 
                 
Stockholders’ equity
   
119,475
     
107,507
 
                 
Total liabilities & stockholders’ equity
  $
142,652
    $
131,615
 






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