CARSON, Calif., Aug 5, 2004 (BUSINESS WIRE) -- Leiner Health Products Inc. today announced its financial results for the first quarter ended June 26, 2004.
Net sales for the first quarter of fiscal 2005 totaled $156.0 million, a 12% increase over the $138.9 million reported for the same period in fiscal 2004.
As a result of its May 2004 recapitalization, Leiner recognized $79.9 million of recapitalization charges in the first quarter of fiscal 2005 and reported a net loss of $61.6 million. Excluding these recapitalization charges and their income tax impact, the company had net income of $4.8 million for the first quarter of fiscal 2005, an 18% increase over the $4.1 million of net income reported for the same period last year. See the Condensed Consolidated Statements of Operations on page three for a reconciliation of the difference between net income including and excluding recapitalization charges and their income tax impact.
Robert Kaminski, Chief Executive Officer, commented, "The first quarter of 2005 was a very positive one for Leiner. We closed our recapitalization on May 27, 2004, resulting in a new capital structure designed to facilitate our growth vision. We are very pleased with the confidence the financial community demonstrated in Leiner's business strategies and prospects.
"During the quarter, each of our three principal product categories - store brand vitamins, minerals and supplements ("VMS"), over-the-counter ("OTC") pharmaceuticals, and contract manufacturing services - performed well, and OTC pharmaceuticals and contract manufacturing services experienced solid growth. Sales of our FY04 and FY05 new product classes were an important contributor to our performance.
"We were notified that the company was awarded Wal-Mart's prestigious 'Supplier of the Quarter' for the first calendar quarter. We believe that this award, coupled with the 16 comparable awards we have won since 1998, demonstrates the success of our focus on strong customer service."
"And finally, but perhaps most importantly, the company's Fort Mill facility underwent a comprehensive FDA audit and emerged without a single Form 483 observation. The company's three most recent FDA audits have been conducted without a single observation, indicating the success of our long-term commitment to quality. We believe that our performance in quality and service have been key factors in our growth in sales to some of the world's most successful retailers, with whom we share a commitment to the highest quality VMS and OTC products."
About Leiner Health
Founded in 1973, Leiner Health Products, headquartered in Carson, Calif., is America's leading manufacturer of store brand vitamins, minerals, and nutritional supplements and its second largest supplier of over-the-counter pharmaceuticals in the food, drug, mass merchant and warehouse club (FDMC) retail market, as measured by retail sales. Leiner provides nearly 40 FDMC retailers with over 3,000 products to help its customers create and market high quality store brands at low prices. It also is the largest supplier of vitamins, minerals and nutritional supplements to the US military. Leiner markets its own brand of vitamins under YourLife(R) and sells over-the-counter pharmaceuticals under the Pharmacist's Formula(R) name. Last year, Leiner produced 22 billion doses that help offer consumers high quality, affordable choices to improve their health and wellness.
This press release contains "forward-looking statements" that are subject to risks and uncertainties. These statements often include words such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms or similar expressions. These statements are only predictions. In addition to risks and uncertainties noted in this press release, there are risks and uncertainties that could cause the company's actual operating results to differ materially from those anticipated by some of the statements made. Such risks and uncertainties include: (i) slow or negative growth in the vitamin, mineral, supplement or over-the-counter pharmaceutical industry; (ii) adverse publicity regarding the consumption of vitamins, minerals, supplements or over-the-counter pharmaceuticals; (iii) increased competition; (iv) increased costs; (v) increases in the cost of borrowings and/or unavailability of additional debt or equity capital; (vi) changes in general worldwide economic and political conditions in the markets in which the company may compete from time to time; (vii) the inability of the company to gain and/or hold market share of its customers; (viii) exposure to and expenses of defending and resolving product liability claims and other litigation; (ix) the ability of the company to successfully implement its business strategy; (x) the inability of the company to manage its operations efficiently; (xi) consumer acceptance of the company's products; (xii) introduction of new federal, state, local or foreign legislation or regulation or adverse determinations by regulators; (xiii) the mix of the company's products and the profit margins thereon; (xiv) the availability and pricing of raw materials; and (xv) other factors beyond the company's control. The company expressly disclaims any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.