Schiff Nutrition International Inc., announced results for the fiscal 2013 first quarter ended August 31, 2012.
“We are pleased to report another strong quarter for Schiff Nutrition,” stated Tarang Amin, president and chief executive officer. “Net sales increased 46 percent and Adjusted EBITDA increased 81 percent versus year ago, reflecting progress executing our growth strategy to build leading brands in four key conditions. Our brand building, innovation, and customer initiatives continue to drive MegaRed® in heart health, Move Free® in joint care, Airborne® in immune support, and Digestive Advantage® in probiotics. Gross margin improvement was driven by branded growth and strong operational execution including lean manufacturing and sourcing initiatives. Given our first quarter performance and expectations for the balance of the year, we are taking up our fiscal 2013 guidance.”
Fiscal 2013 First Quarter Results
• Net sales were $85.1 million, compared to $58.2 million for the same period in fiscal 2012. Branded sales increased 49.3 percent to $74.8 million and reflect the contribution of the Airborne acquisition completed on March 30, 2012, compared to $50.1 million in fiscal 2012.
• Gross profit margin was 47.1 percent for the fiscal 2013 first quarter. Fiscal 2013 first quarter results were negatively impacted by a $1.6 million purchase accounting adjustment related to acquired Airborne inventory. The purchase accounting adjustment lowered gross profit margin by 1.8 percentage points. Gross profit margin for the fiscal 2012 first quarter was 44.7 percent.
• Total operating expenses increased to $27.7 million, from $18.3 million a year ago, primarily reflecting the company’s continued emphasis on support for advertising and brand building.
• Net income for the fiscal 2013 first quarter was $6.0 million, compared to net income of $4.7 million for the same period in fiscal 2012. Earnings per diluted share were $0.20 for the fiscal 2013 first quarter, compared to $0.16 for the same period in fiscal 2012.
• Adjusted EBITDA, which is defined as income from operations before depreciation, amortization, stock-based compensation and completed acquisition, including transaction and other related costs, was $17.4 million for the fiscal 2013 first quarter, compared to $9.6 million for the same period in fiscal 2012.