HAUPPAUGE, N.Y.--(BUSINESS WIRE)--April 30, 2002--Twinlab Corporation (NASDAQ:TWLB) today announced its results for the quarter ended March 31, 2002.
The Company reported net income of $3.7 million or $0.13 per share for the first quarter of 2002, versus a net loss of $(15.9) million or $(0.56) per share for the first quarter of last year. First quarter net sales were $48.2 million compared to $52.7 million in the comparable quarter last year. Net income for the first quarter of 2002 includes an income tax benefit of $6.9 million representing a Federal refund owed to the Company as a result of the recently enacted Job Creation and Worker Assistance Act of 2002 ($6.2 million received as of April 29, 2002). The net loss for the first quarter of 2001 included the loss on disposal of Changes International of $8.7 million.
The Company anticipates completing the sale and/or closure of the operations of Health Factors International, Inc. in the second quarter of 2002 for which a charge of approximately $1.0 million was recorded during the first quarter. The Company also announced today that it recently eliminated an additional 7% of its current workforce (excluding Health Factors) as part of its continuing efforts to improve profitability. The Company anticipates annualized cost reductions, in connection with these actions, will be in excess of $4.0 million, commencing in the third quarter of 2002.
Ross Blechman, Twinlab's Chairman, President and Chief Executive Officer stated "Excluding the effect of the $1.0 million charge associated with Health Factors, the Company's loss from operations would have been $0.2 million, compared to a loss from operations of $9.9 million in the first quarter of 2001. We are beginning to realize the impact of our cost reductions and related initiatives, have generated positive cash flow from operations and reduced our outstanding debt. We recognize the need for additional measures and are committed to their implementation."
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 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