Schiff Nutrition's fourth-quarter net sales increase to $49.3 million

Jul 20 2010

Schiff Nutrition International, Inc., (NYSE:WNI), today announced results for the fiscal 2010 fourth quarter and year ended May 31, 2010.

Financial Results

Schiff Nutrition's net sales were $49.3 million for the three months ended May 31, 2010, compared to $45.7 million for the same period in fiscal 2009. For the fiscal 2010 fourth quarter, Schiff Nutrition reported net income of $2.4 million, or $0.08 per diluted share, compared to net income of $553,000, or $0.02 per diluted share, for the same period a year ago.

Schiff Nutrition's net sales were $204.9 million for the fiscal year ended May 31, 2010, compared to $190.7 million for fiscal 2009. For fiscal 2010, Schiff Nutrition reported net income of $18.4 million, or $0.64 per diluted share, compared to net income of $10.3 million, or $0.36 per diluted share, for fiscal 2009.

Bruce Wood, President and Chief Executive Officer, stated, "We were very pleased with our fourth quarter and full year results. Fourth quarter net sales increased 7.7% versus the prior year period, driven by a significant increase in our branded sales. We once again recorded significant fourth quarter over fourth quarter improvement in our gross profit and operating margins, and our strong cash position enabled us to return a $0.50 per share special dividend to our shareholders during the quarter."

"Schiff^® MegaRed^® Krill Oil continued to deliver particularly strong growth. We also continued to test branded growth initiatives, including the launch of our new Schiff Mega-D3™ product with certain customers. Our flagship Move Free^® brand net sales were stable over the full fiscal year in a competitively intense and growth challenged joint care category."

Wood concluded, "Although we expect fiscal 2011 to be a challenging year overall, particularly for our private label business, we remain confident about our future prospects and expect to strengthen our financial and competitive position in the new fiscal year. Our strong balance sheet provides us with the financial flexibility to invest in our business, fund new growth initiatives and explore acquisition opportunities."