Delaware
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001-14608
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87-0563574
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(State or other jurisdiction
of incorporation)
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(Commission File Number)
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(I.R.S. Employer
Identification Number)
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2002 South 5070 West
Salt Lake City, Utah
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84104-4726
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(Address of principal
executive offices)
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(Zip Code)
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¨
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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¨
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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¨
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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¨
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02.
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Results of Operations and Financial Condition.
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Item 9.01.
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Financial Statements and Exhibits.
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Exhibit No.
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Description
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99.1
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Press Release dated September 18, 2012.
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SCHIFF NUTRITION INTERNATIONAL, INC. | |
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By:
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/s/ Joseph W. Baty |
Name: Joseph W. Baty
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Title: Executive Vice President and Chief Financial Officer
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Exhibit No.
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Description
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99.1
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Press Release dated September 18, 2012.
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·
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Net sales were $85.1 million, compared to $58.2 million for the same period in fiscal 2012. Branded sales increased 49.3% to $74.8 million and reflect the contribution of the Airborne acquisition completed on March 30, 2012, compared to $50.1 million in fiscal 2012.
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·
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Gross profit margin was 47.1% for the fiscal 2013 first quarter. Fiscal 2013 first quarter results were negatively impacted by a $1.6 million purchase accounting adjustment related to acquired Airborne inventory. The purchase accounting adjustment lowered gross profit margin by 1.8 percentage points. Gross profit margin for the fiscal 2012 first quarter was 44.7%.
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·
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Total operating expenses increased to $27.7 million, from $18.3 million a year ago, primarily reflecting the company’s continued emphasis on support for advertising and brand building.
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·
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Net income for the fiscal 2013 first quarter was $6.0 million, compared to net income of $4.7 million for the same period in fiscal 2012. Earnings per diluted share were $0.20 for the fiscal 2013 first quarter, compared to $0.16 for the same period in fiscal 2012.
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·
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Adjusted EBITDA, which is defined as income from operations before depreciation, amortization, stock-based compensation and completed acquisition, including transaction and other related costs, was $17.4 million for the fiscal 2013 first quarter, compared to $9.6 million for the same period in fiscal 2012.
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Fiscal Year 2013 Guidance
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As of July 31, 2012
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As of September 18, 2012
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Net sales growth
(compared to fiscal 2012)
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40.0% to 43.0%
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43.0% to 46.0%
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Gross profit margin
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48.0% to 50.0%
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49.0% to 51.0%
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Selling & marketing expense
(% of net sales)
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25.0% to 27.0%
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25.0% to 27.0%
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Other operating expenses
(in millions)
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$35.0 to $37.0
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$36.0 to $38.0
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Operating margin
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12.5% to 14.0%
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14.5% to 16.0%
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Schiff Nutrition Contact:
Joseph W. Baty, CFO
(801) 975-5186
email: joeb@schiffnutrition.com
www.schiffnutrition.com
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IR Agency Contact:
Becky Herrick / Jana Cuiper
LHA
(415) 433-3777
email: bherrick@lhai.com
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Three Months Ended
August 31, |
||||||||
2012
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2011
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|||||||
Net sales
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$
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85,133
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$
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58,238
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||||
Cost of goods sold
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45,066
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32,196
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||||||
Gross profit
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40,067
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26,042
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||||||
Operating expenses:
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||||||||
Selling and marketing
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19,108
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11,731
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||||||
Other operating expenses
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8,622
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6,558
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||||||
Total operating expenses
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27,730
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18,289
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||||||
Income from operations
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12,337
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7,753
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||||||
Other expense, net
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(2,722
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)
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(351
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)
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||||
Income before income taxes
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9,615
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7,402
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||||||
Income tax expense
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3,586
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2,699
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||||||
Net income
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$
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6,029
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$
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4,703
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||||
Weighted average common shares outstanding – diluted
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29,933
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29,457
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||||||
Net income per share – diluted
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$
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0.20
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$
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0.16
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August 31,
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May 31,
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|||||||
2012
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2012
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|||||||
Cash and cash equivalents
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$
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17,291
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$
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8,607
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||||
Available-for-sale securities
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2,673
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5,162
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Receivables, net
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38,864
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29,778
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||||||
Inventories
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37,379
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43,933
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||||||
Other current assets
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4,857
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4,676
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||||||
Total current assets
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101,064
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92,156
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||||||
Property and equipment, net
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12,333
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13,130
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||||||
Other assets, net:
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||||||||
Intangible assets and goodwill
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220,635
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222,021
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||||||
Other assets
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3,114
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3,333
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||||||
Total other assets, net
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223,749
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225,354
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||||||
Total assets
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$
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337,146
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$
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330,640
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||||
Current liabilities(1)
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$
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39,074
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$
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38,588
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||||
Long-term debt, net(2)
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132,280
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132,362
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Other long-term liabilities(3)
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45,762
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46,801
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Stockholders’ equity
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120,030
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112,889
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||||||
Total liabilities & stockholders’ equity
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$
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337,146
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$
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330,640
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(1)
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Includes current portion of long-term debt totaling $1,400 and $3,400 at August 31, 2012 and May 31, 2012, respectively.
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(2)
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Amount is net of unamortized debt issue costs of $5,970 and $6,238 at August 31, 2012 and May 31, 2012, respectively.
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(3)
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Includes deferred income taxes of $43,149 and $44,016 at August 31, 2012 and May 31, 2012, respectively.
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Three Months Ended August 31,
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||||||||
2012
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2011
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|||||||
Income from operations
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$
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12,337
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$
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7,753
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||||
Depreciation
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1,108
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952
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||||||
Amortization
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1,286
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407
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||||||
Stock based compensation, non-cash
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1,125
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525
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||||||
Completed acquisition, including transaction and other related costs
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1,550
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—
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||||||
Adjusted EBITDA
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$
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17,406
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$
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9,637
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