SALT LAKE CITY, Sep 21, 2007 (BUSINESS WIRE) -- Schiff Nutrition International, Inc., (WNI) , today announced results for the fiscal 2008 first quarter.
Schiff Nutrition's net sales were $40.7 million for the three months ended August 31, 2007, compared to $45.7 million for the same period in fiscal 2007. For the fiscal 2008 first quarter, Schiff Nutrition reported net income of $1.6 million, or $0.06 per diluted share, compared to net income of $3.3 million, or $0.12 per diluted share, for the same period a year ago. As previously announced, the company recognized a pre-tax compensation charge of $3.0 million during its fiscal 2008 first quarter associated with the August 13, 2007 special dividend payment of $1.50 per share of common stock, including the dividend equivalents paid or payable with respect to certain equity awards.
Bruce Wood, President and Chief Executive Officer, stated, "Our first quarter sales performance approximated our internal expectations. The decline in fiscal 2008 first quarter net sales, as compared to the year ago period, resulted primarily from a shift in the timing of certain customer promotions. Accordingly, we believe our second and third quarter net sales will be positively impacted. On the profitability front, we recorded a significant increase in our gross profit percentage, versus the year ago period. At the same time, our operating margin, which included the special dividend charge, met our internal expectations for the fiscal 2008 first quarter. We remain confident in our ability to compete in the highly competitive supplements arena and plan to continue to invest in our Schiff(R) branded business and our flagship Move Free(R) brand, in particular."
About Schiff Nutrition
Schiff Nutrition International, Inc. develops, manufactures, markets and distributes branded and private label vitamins, nutritional supplements and nutrition bars in the United States and throughout the world. To learn more about Schiff, 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 and Section 21E of the Securities Exchange Act of 1934 that are based on management's beliefs and assumptions, current expectations, estimates, and projections. These statements are subject to known and unknown risks and uncertainties, certain of which are beyond the company's ability to control or predict, and, therefore, actual results may differ materially. Any forward-looking statements are made pursuant to the Private Securities Litigation Reform Act of 1995 and, as such, speak only as of the date hereof. Schiff Nutrition disclaims any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on these forward-looking statements.
Important factors that may cause these forward-looking statements to be false include, but are not limited to: the level of customer and consumer acceptance of Move Free Advanced; the inability to successfully implement marketing and spending programs behind our Move Free brand and other new branded products; the impact of raw material pricing, availability and quality (particularly relating to joint care products and ingredients from suppliers outside the United States, including China); the mix between branded and private label products; the ability to grow and/or maintain branded and private label sales; the inability to enforce or protect our intellectual property rights against infringement; the inability to achieve cost savings and operational efficiencies; the inability to increase operating margins and increase revenues; the inability to successfully grow our export business; dependence on individual products, product lines and the joint care category; dependence on individual customers; the impact of competitive products and pricing (including private label), particularly in the joint care category; market and industry conditions (including 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 in the United States and internationally; the possibility of product recalls; the inability or increased cost to obtain adequate product liability and general insurance; insurance coverage limitations and exclusions; adverse publicity, scientific research, litigation, regulatory proceedings and other media attention regarding the consumption of nutritional supplements, particularly regarding the joint care category; 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 (including the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" contained therein), copies of which are available upon request from the company's investor relations department or may be obtained at the SEC's web site ( www.sec.gov). These risks and uncertainties should be carefully considered before making an investment decision with respect to shares of our common stock.