SALT LAKE CITY, Aug 23, 2005 (BUSINESS WIRE) -- Weider Nutrition International, Inc. (WNI)(doing business as Schiff Nutrition) today announced results for the fiscal 2005 fourth quarter and year ended May 31, 2005.
Weider Nutrition's net sales were $57.0 million for the fiscal 2005 fourth quarter, compared to $59.1 million for the same period in fiscal 2004. For the fourth quarter, Weider Nutrition recognized a pre-tax asset impairment loss of $9.3 million related to the Haleko business unit and reported a net loss of $1.8 million, or $(0.07) per share, compared to net income of $1.5 million, or $0.05 per diluted share, for the same period a year ago.
For fiscal 2005, Weider Nutrition's net sales were $239.9 million, compared to fiscal 2004 net sales of $235.0 million. For fiscal 2005, Weider Nutrition reported net income of $6.6 million, or $0.25 per diluted share, compared to net income of $8.9 million, or $0.33 per diluted share, for fiscal 2004.
As previously announced, the company sold its Weider(R) branded business during the fiscal 2005 fourth quarter. Historical results for the Weider branded business are reflected as discontinued operations for all periods presented. Also as previously announced, the company sold its Germany based Haleko business unit effective during the first quarter of fiscal 2006. For current financial reporting purposes, Haleko's financial results are included in the consolidated operating results for all periods presented. Beginning in the fiscal 2006 first quarter, historical financial results for Haleko will be reflected as discontinued operations.
Bruce Wood, president and chief executive officer, stated, "We experienced a challenging fourth quarter due to the weak performance of our recently divested Haleko business unit and from margin pressure due to continued high raw material costs in our joint care business. The sale of our Haleko business unit allows us to focus on our long term goal of driving profitable revenue growth in our ongoing operations. The Schiff(R) Specialty unit, which now includes the Tiger's Milk(R) and Fi-Bar(R) nutrition brands, achieved a solid branded sales increase in the fourth quarter, behind higher marketing support."
Wood went on to state, "We are continuing to invest in our brands and new products, and to look for acquisition opportunities. We remain optimistic about the long term growth potential of the supplements category."
Conference Call Information
Weider Nutrition International will hold a conference call today, August 23, 2005 at 11 a.m. ET. The U.S. domestic access number is (888) 396-2356. International participants should dial (617) 847-8709. Please call in approximately ten minutes in advance. The conference call will be broadcast live over the Internet at www.schiffnutrition.com. If you do not have Internet access, a replay of the call will be available by dialing 1-888-286-8010 and entering access code 35938779; for international callers by dialing 617-801-6888, reservation number 35938779. The telephone replay will be available through August 25, 2005 and the webcast through September 13, 2005.
About Weider Nutrition
Weider Nutrition International, Inc., doing business as Schiff Nutrition International, develops, manufactures, markets and sells branded and private label vitamins, nutritional supplements and sports nutrition products in the United States and throughout the world. To learn more about Weider, 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, 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 successfully implement marketing and spending programs behind our Move Free brand and other branded new products, the impact of raw material pricing and availability (particularly relating to joint care products), 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 success of product development, the inability to obtain customer acceptance of new product introductions, changes in laws and regulations, litigation and government regulatory action, uncertainty of market acceptance of new products, adverse publicity regarding the consumption of nutritional supplements, the inability to find strategic acquisitions or the inability to successfully consummate or integrate an acquisition, 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).