SALT LAKE CITY, Dec 17, 2009 (BUSINESS WIRE) -- Schiff Nutrition International, Inc. , 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(R) brand, and our MegaRed(R) 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."
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.