Tarang Amin, who was appointed president and chief executive officer on March 7th, stated, “For the third quarter of fiscal 2011 we delivered eight percent revenue growth over the same quarter of fiscal 2010. Top-line growth was driven by an increase in private label sales volume and complemented by an increase in branded sales, most notably our MegaRed® krill oil product. While a higher mix of private label sales and CEO transition costs impacted margins, we were pleased with our bottom line.”
For the third quarter of fiscal 2011, Schiff Nutrition’s net sales were $57.7 million, compared to $53.3 million for the same period in fiscal 2010. For its fiscal 2011 third quarter, Schiff Nutrition reported net income of $4.0 million, or $0.14 per diluted share, compared to $5.7 million, or $0.20 per diluted share, in the third quarter of fiscal 2010. Included in net income for the third quarter of fiscal 2011 are $1.9 million in expenses primarily related to the CEO transition. For the nine months ended February 28, 2011, Schiff Nutrition’s net sales were $161.8 million, compared to $155.6 million for the same period in fiscal 2010. For the first nine months of fiscal 2011, Schiff Nutrition reported net income of $9.6 million, or $0.33 per diluted share, compared to $16.0 million, or $0.55 per diluted share, for the same period in fiscal 2010.
Amin continued, "We delivered a strong quarter despite ongoing intense pricing and margin pressures on our private label business and softness in the joint care category. We continue to see strong growth on MegaRed and our other brands. According to the U.S. Census Bureau, the number of consumers aged 55 and over is expected to increase by 2.5 percent per year on an annualized basis for the next 10 years. We intend to take advantage of this favorable demographic shift for health and wellness products by leading innovation, pursuing opportunities to expand channel and geographic presence, as well as introducing new branded products. Overall, I am very optimistic about our long-term prospects and am committed to driving operational excellence to build a world-class company."
Conference Call Information
Schiff Nutrition International will hold a conference call today, March 22 at 11 a.m. ET. The U.S. domestic access number is 800-295-4740. International participants should dial 617-614-3925. The participant pass code is 36146478. 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 April 18, 2011. A replay of the call will be available by dialing 888-286-8010 for domestic callers and 617-801-6888 for international callers, and entering access code 65651029. The telephone replay will be available through March 29, 2011.
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. Schiff’s portfolio of well-known brands includes Move Free®, Schiff® Vitamins, MegaRed®, Mega-D3™, Tiger's Milk® and Fi-Bar®. To learn more about Schiff, please visit the web site www.schiffnutrition.com.