HAUPPAUGE, N.Y.--(BUSINESS WIRE)--July 24, 2002--Twinlab Corporation (NASDAQ: TWLB) today announced that it is implementing a comprehensive restructuring of its operations designed to further improve the Company's financial performance and operating results.
The restructuring, designed to reduce costs and better align the Company's operational infrastructure to its sales volume, will result in the consolidation of the New York manufacturing and distribution facilities into the Company's modern FDA-registered facility located in American Fork, Utah. The Company's corporate offices and certain operational functions relating to purchasing, research and development will remain in New York. The Company anticipates incurring restructuring and related charges of up to $20 million ($10 million of which will be non-cash), substantially all of which are expected to be recorded during the third and fourth quarters of 2002. Restructuring activities are expected to be substantially completed by year-end 2002, which management believes will result in anticipated annualized cost reductions in excess of $6 million, commencing in the first quarter of 2003.
Ross Blechman, Twinlab's Chairman, President and Chief Executive Officer stated "This restructuring activity represents the continuation of our commitment to examine all aspects of our operations to improve our financial performance. We believe that the consolidation of our manufacturing and distribution facilities will allow us to reduce our overall cost structure, enhance operational efficiencies and customer service and better position the Company for future opportunities."
Twinlab Corporation, headquartered in Hauppauge, N.Y., is a leading manufacturer and marketer of high quality, science-based, nutritional supplements, including a complete line of vitamins, minerals, nutraceuticals, herbs and sports nutrition products.
Except for historical information contained herein, this release contains, within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, forward-looking statements that are based on management's beliefs and assumptions, current expectations, estimates and projections. Many of the factors that will determine the Company's financial results are beyond the ability of the Company to control or predict. These statements are subject to risks and uncertainties and therefore actual results may differ materially. The Company disclaims any obligation to update any forward-looking statements whether as a result of new information, future events, or otherwise. Important factors and risks that may affect future results include but are not limited to: (i) the impact of competitive products; (ii) changes in law and regulations; (iii) adequacy and availability of insurance coverage; (iv) limitations on future financing; (v) increases in the cost of borrowings and unavailability of debt or equity capital; (vi) the effect of adverse publicity regarding nutritional supplements; (vii) uncertainties relating to acquisitions; (viii) the inability of the Company to gain and/or hold market share; (ix) exposure to and expense of resolving and defending product liability claims and other litigation; (x) consumer acceptance of the Company's products; (xi) managing and maintaining growth; (xii) customer demands; (xiii) the inability to integrate and consolidate its manufacturing and distribution facilities and achieve cost savings and operational efficiencies; (xiv) dependence on individual products; (xv) dependence on individual customers, (xvi) market and industry conditions including pricing, demand for products, levels of trade inventories and raw materials availability, (xvii) the success of product development and new product introductions into the marketplace; (xviii) lack of available product liability insurance for ephedra-containing products; (xix) slow or negative growth in the nutritional supplement industry; (xx) the departure of key members of management; (xxi) the absence of clinical trials for many of the Company's products; (xxii) the ability of the Company to efficiently manufacture its products; as well as other risks and uncertainties that are described from time to time in the Company's filings with the Securities and Exchange Commission, copies of which are available upon request from the Company's investor relations department.
Additional Twinlab information is available on the World Wide Web at: http://www.twinlab.com