SALT LAKE CITY, Sep 26, 2002 (BUSINESS WIRE) -- Weider Nutrition International, Inc. (NYSE:WNI) today announced results for the three-month period ended August 31, 2002.
Weider Nutrition's net sales were $76.2 million for the fiscal 2003 first quarter, compared to $80.7 million for the fiscal 2002 first quarter. As previously announced, the Company sold its American Body Building(TM) and Science Foods(R) brands in July 2002.
Excluding a one-time charge explained below, Weider Nutrition recorded net income of $4.5 million or $0.17 per share (diluted) for the fiscal 2003 first quarter, compared to a net loss of $352,000 or $0.01 per share for the same period a year ago. Net income excludes the cumulative after-tax effect of adopting a new accounting principle. SFAS No. 142 establishes accounting and reporting standards for goodwill and other intangible assets. The adoption of SFAS No. 142 resulted in a one-time charge of $15.4 million, representing write-off of goodwill, during the quarter. Including this charge, Weider Nutrition reported a net loss of $10.9 million or $0.42 per share. Gross profit percentage was 39.6% for the fiscal 2003 first quarter, compared to 32.9% for the fiscal 2002 first quarter. Consolidated operating margin was 10.8% and 1.5% for fiscal 2003 and 2002 first quarters, respectively.
Bruce Wood, president and CEO, stated, "Weider again recorded improved operating results, including an increase in both gross margin and operating margin performance. This improvement reflects our proactive measures to increase profitability. We continue to see the benefits of our lower cost structure, allowing us to move toward our long-term goal of building shareholder value. We are aggressively working to address continuing soft industry conditions, as well as ongoing pressure from private label competition on our flagship Schiff(R) Move Free(R) business, with new product and marketing plans for fiscal 2003."
Conference Call Information
Weider Nutrition International will hold a conference call today, September 26, 2002 at 11 a.m. ET. The U.S. domestic access number is 800/982-3472. International participants should dial 703/871-3022. Please call in approximately ten minutes in advance. The conference call will be broadcast live over the Internet at WWW.WEIDER.COM. If you do not have Internet access, a replay of the call will be available by dialing 888/266-2081 and entering access code 6217482. The telephone replay will be available through September 28, 2002 and the web casting through October 6, 2002.
About Weider Nutrition
Weider Nutrition International, Inc. develops, manufactures, markets and sells branded and private label vitamins, nutritional supplements and sports nutrition products in the United States and throughout the world and sells a line of sports apparel in Europe. To learn more about Weider, please visit the Web site WWW.WEIDER.COM.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended, that are based on management's beliefs and assumptions, current expectations, estimates, and projections. These statements are subject to risks and uncertainties, certain of which are beyond the company's ability to control or predict, and, therefore, actual results may differ materially. Weider Nutrition disclaims any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise.
Important factors that may cause these forward looking statements to be false include, but are not limited to: the inability to achieve cost savings and operational efficiencies through reorganization, dependence on individual products, the inability to successfully restructure our Haleko business unit and make it profitable, the inability to successfully utilize available cash resulting from suspension of the Company's quarterly dividend, dependence on individual customers, the impact of competitive products and pricing (including private label), market and industry conditions (including pricing, demand for products, level of trade inventories and raw materials availability and pricing), the success of product development and new product introductions into the marketplace, changes in laws and regulations, litigation and government regulatory action against the Company, lack of available product liability insurance for products containing ephedra, uncertainty of market acceptance of new products, adverse publicity regarding the consumption of nutritional supplements, 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 website (WWW.SEC.GOV).