Attached files
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| 8-K - Q2'10 EARNINGS RELEASE-(FILED 12-17-09) - SCHIFF NUTRITION INTERNATIONAL, INC. | form8kfy10_q2.htm |
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Company
Contact:
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Agency
Contact:
|
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Joseph
W. Baty, Chief Financial Officer
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Keith
Lippert / Kirsten Chapman
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(801)
975-5186
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Lippert
/ Heilshorn & Associates
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email: joeb@schiffnutrition.com
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(212)
838-3777 / (415) 433-3777
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www.schiffnutrition.com
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email: KChapman@lhai.com
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SCHIFF
NUTRITION INTERNATIONAL, INC. ANNOUNCES
FISCAL
2010 SECOND QUARTER RESULTS
Salt
Lake City, Utah, December 17, 2009: Schiff Nutrition International, Inc., (NYSE:
WNI), today announced results for the fiscal 2010 second quarter and six months
ended November 30, 2009.
For the
second quarter, Schiff Nutrition’s net sales were $53.8 million, compared to
$47.3 million for the same period in fiscal 2009. For its fiscal 2010
second quarter, Schiff Nutrition reported net income of $5.9 million, or $0.20
per diluted share. This compares to fiscal 2009 second quarter net
income of $2.9 million, or $0.10 per diluted share.
For the
six months ended November 30, 2009, Schiff Nutrition’s net sales were $102.3
million, compared to $95.1 million for the same period in fiscal
2009. For the first six months of fiscal 2010, Schiff Nutrition
reported net income of $10.3 million, or $0.36 per diluted
share. This compares to $6.2 million, or $0.22 per diluted share, for
the same period a year ago.
Bruce
Wood, president and chief executive officer, stated, “We were very encouraged
with our second quarter results. Overall net sales increased nearly 14% in the
fiscal 2010 second quarter versus the prior year period, driven by a solid
performance on our branded business, coupled with an increase on private label
business. At the same time, we experienced significant improvement in
both our gross margin and operating margin percentage for our fiscal 2010 second
quarter, as compared to the prior year quarter. We continued to
generate positive cash flows during the quarter, adding to our already strong
financial position.”
Wood
added, “We were pleased with the sales performance of our flagship Move
Free®
brand, and our MegaRed® krill
oil product delivered particularly strong growth. In addition, we
continue to invest in other organic growth initiatives, and we continue to
explore acquisition opportunities. Competitive conditions remain
intense, particularly in the joint care category, but we remain confident about
our near and long-term prospects.”
Conference
Call Information
Schiff Nutrition International will hold a conference
call today, December 17 at 11 a.m. ET. The U.S. domestic access
number is 866-730-5769. International participants should dial 857-350-1593. The
participant pass code is 87238517. Please call in approximately ten minutes in
advance. The conference call will be broadcast live over the Internet at
http://www.schiffnutrition.com/press_conference_calls.asp, and the webcast will be available through
January 7, 2010. 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 21532194. The
telephone replay will be available through December 22,
2009.
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 and Section 21E of the Securities Exchange Act
of 1934 that are based on management’s beliefs and assumptions, current
expectations, estimates, and projections. These statements are subject to known
and unknown risks and uncertainties, certain of which are beyond the company’s
ability to control or predict, and, therefore, actual results may differ
materially. Any forward-looking statements are made pursuant to the Private
Securities Litigation Reform Act of 1995 and, as such, speak only as of the date
hereof. Schiff Nutrition disclaims any obligation to update any forward-looking
statements whether as a result of new information, future events or otherwise.
You are cautioned not to place undue reliance on these forward-looking
statements.
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 and MegaRed, the inability to gain or maintain market distribution for
MegaRed, the inability to successfully implement marketing and spending programs
behind our Move Free, MegaRed and other branded products, the impact of raw
material pricing, availability (particularly relating to the limited number of
krill oil suppliers) and quality (particularly relating to joint care products
and ingredients from suppliers outside the United States, including China), the
mix between branded and private label products, the inability 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 our products or other 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 or administrative regulatory action in
the United States and internationally, including FDA enforcement and challenges
to marketing, advertising or product claims, the inability or increased cost to
comply with or maintain new good manufacturing practices for the dietary
supplement industry, the inability or increased cost to obtain product liability
and general insurance, the uncertainty of market acceptance of new products,
adverse publicity regarding nutritional supplements and/or their ingredients,
the inability to find strategic transaction opportunities or the inability to
successfully consummate or integrate a strategic transaction, 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.
–
Tables to Follow –
2
SCHIFF
NUTRITION INTERNATIONAL, INC.
CONSOLIDATED
CONDENSED STATEMENTS OF INCOME
(in
thousands, except per share amounts)
(unaudited)
|
Three
Months Ended
November
30,
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Six
Months Ended
November
30,
|
|||||||||||||||
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2009
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2008
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2009
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2008
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|||||||||||||
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Net
sales
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$ | 53,754 | $ | 47,293 | $ | 102,319 | $ | 95,083 | ||||||||
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Cost
of goods sold
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29,519 | 29,690 | 58,922 | 59,602 | ||||||||||||
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Gross
profit
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24,235 | 17,603 | 43,397 | 35,481 | ||||||||||||
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Operating
expenses:
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||||||||||||||||
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Selling
and marketing
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8,825 | 8,412 | 15,459 | 16,545 | ||||||||||||
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Other
operating expenses
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5,940 | 4,729 | 11,442 | 9,455 | ||||||||||||
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Total
operating expenses
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14,765 | 13,141 | 26,901 | 26,000 | ||||||||||||
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Income
from operations
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9,470 | 4,462 | 16,496 | 9,481 | ||||||||||||
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Other
income (expense), net
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(81 | ) | 260 | (45 | ) | 539 | ||||||||||
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Income
before income taxes
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9,389 | 4,722 | 16,451 | 10,020 | ||||||||||||
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Income
tax expense
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3,506 | 1,810 | 6,177 | 3,859 | ||||||||||||
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Net
income
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$ | 5,883 | $ | 2,912 | $ | 10,274 | $ | 6,161 | ||||||||
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Weighted
average common shares outstanding - diluted
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28,838 | 28,629 | 28,785 | 28,649 | ||||||||||||
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Net
income per share - diluted
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$ | 0.20 | $ | 0.10 | $ | 0.36 | $ | 0.22 | ||||||||
—
More —
3
SCHIFF
NUTRITION INTERNATIONAL, INC.
CONSOLIDATED
CONDENSED BALANCE SHEETS
(in
thousands)
|
November
30,
|
May
31,
|
|||||||
|
2009
|
2009
|
|||||||
|
(unaudited)
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||||||||
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Cash
and cash equivalents
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$
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46,533
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$
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52,648
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||||
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Available-for-sale
securities
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7,970
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4,241
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||||||
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Receivables,
net
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23,995
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20,716
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||||||
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Inventories
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32,516
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30,024
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||||||
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Other
current assets
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3,987
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3,620
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||||||
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Total
current assets
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115,001
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111,249
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||||||
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Property
and equipment, net
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14,146
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13,920
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||||||
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Other
assets, net
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6,205
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5,028
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||||||
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Total
assets
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$
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135,352
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$
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130,197
|
||||
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Current
liabilities
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$
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26,097
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$
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19,034
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||||
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Long-term
liabilities
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3,070
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1,470
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||||||
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Stockholders’
equity
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106,185
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109,693
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||||||
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Total
liabilities & stockholders’ equity
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$
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135,352
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$
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130,197
|
||||
—
# # # —
4