Schiff Nutrition International, Inc. announced results for the fiscal 2011 fourth quarter and year ended May 31, 2011.
Tarang Amin, president and chief executive officer, stated: “Schiff Nutrition delivered a solid fiscal year 2011, posting annual year-over-year net sales growth of 4% despite a headwind in joint care. More importantly, during the past quarter, we began executing on our focused growth strategies: building premium brands, leading innovation, expanding the channel and geographic footprint of the company, pursuing acquisitions, and driving world-class operations.”
Fiscal Fourth Quarter 2011 Results
For the three months ended May 31, 2011, Schiff Nutrition’s net sales were $51.9 million, compared to $49.3 million for the same period in 2010. The 5% increase reflects growth in the branded business. Net income for the three months ended May 31, 2011 was $3.1 million, after $1.2 million in pre-tax expenses related to the recent acquisition of a probiotics business. This compares to net income of $2.4 million for the same period of 2010. Earnings per diluted share were $0.10 for the fiscal fourth quarter of 2011, compared to $0.08 for the fiscal fourth quarter of 2010.
Fiscal 2011 Results
Schiff Nutrition’s fiscal 2011 net sales were $213.6 million, compared to fiscal 2010 net sales of $204.9 million, primarily reflecting overall improved branded business. Net income for fiscal 2011 was $12.6 million, after $1.9 million in pre-tax CEO transition expenses and $1.2 million in pre-tax expenses related to the acquisition noted above. This compares to net income of $18.4 million for fiscal 2010. Earnings per diluted share were $0.43 for fiscal 2011, compared to $0.64 for fiscal 2010.
“Our employees’ commitment to delivering high quality products has helped the company build leading brands such as Schiff MegaRed® and Schiff MoveFree®. Next, we intend to accelerate growth through increasing advertising support behind these premium brands, launching more new items, and participating in faster growing sub-categories such as our recent entry into the probiotics space,” concluded Amin.
The company currently expects fiscal year 2012 net sales percentage growth of high single-digit to low double-digit. Gross profit percentage is expected to be in the range of 41.0% to 44.0%, reflecting a higher mix of branded sales volume together with a reduction in private label business. Selling and marketing expenses as a percentage of net sales are estimated to be in the range of 22.0% to 24.0% and other operating expenses are estimated at approximately $22.0 million to $24.0 million. The company currently anticipates a very high single-digit operating margin for fiscal 2012.
Conference Call Information
A replay of the call conducted on July 21st is available by dialing 888-286-8010 for domestic callers and 617-801-6888 for international callers, and entering access code 55311451. The telephone replay will be available through July 27, 2011.
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. Schiff’s portfolio of well-known brands includes Schiff Move Free®, Schiff® Vitamins, Schiff MegaRed®, Schiff Mega-D3™, Schiff Tiger's Milk®, Schiff Sustenex, and Schiff Digestive Advantage. To learn more about Schiff, please visit the web site www.schiffnutrition.com.