Exhibit 99.1 |
Company Contact: | Agency Contact: |
Joseph W. Baty, Chief Financial Officer | Keith Lippert / Kirsten Chapman |
(801) 975-5186 | Lippert/Heilshorn & Associates |
email:joeb@weider.com | (212) 838-3777/(415) 433-3777 |
| www.weider.com | email:kirsten@lhai-sf.com |
WEIDER ANNOUNCES FISCAL 2004 FOURTH QUARTER & YEAR-END RESULTS
Salt Lake City, Utah, August 19, 2004: Weider Nutrition International, Inc. (NYSE: WNI) today announced results for the fiscal 2004 fourth quarter and for the year ended May 31, 2004.
Weider Nutrition’s net sales were $65.6 million for the fiscal 2004 fourth quarter, compared to $55.8 million for the same period in fiscal 2003. For its fiscal 2004 fourth quarter, Weider Nutrition reported net income of $1.5 million, or $0.05 per share, compared to $281,000, or $0.01 per share, for the same period a year ago.
Weider Nutrition’s fiscal 2004 net sales were $257.5 million, compared to fiscal 2003 net sales of $240.9 million. For fiscal 2004, Weider Nutrition reported net income of $8.9 million, or $0.33 per share, compared to a fiscal 2003 net loss of $7.5 million, or $0.29 per share, including a one-time $15.4 million charge associated with the adoption of SFAS No. 142.
Bruce Wood, president and chief executive officer, stated, "We’re pleased with our overall fiscal 2004 revenue trend, and are encouraged by results of our Schiff® Move Free® growth initiative. We plan to continue our strategic focus on building our core Schiff and Haleko businesses during fiscal 2005. We remain optimistic about the potential for long-term, sustainable growt h in the supplements category, and are continuing to pursue new product initiatives to capitalize on this opportunity."
Conference Call Information
Weider Nutrition International will hold a conference call today, August 19, 2004 at 11 a.m. ET. The U.S. domestic access number is (888) 803-8271. International participants should dial (706) 634-2467. Please call in approximately ten minutes in advance. The conference call will be broadcast live over the Internet atwww.weider.com orhttp://www.weidernutrition.biz/corporate/press-releases.asp. If you do not have Internet access, a replay of the call will be available by dialing 1-800-642-1687 and entering access code 9263984. The telephone replay will be available through August 23, 2004 and the webcast through September 8, 2004.
About Weider Nutrition
Weider Nutrition International, Inc. 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 sitewww.weider.com.
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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 reach a definitive agreement with Weider Health and Fitness regarding the sale of certain Weider® branded assets, the inability to successfully implement marketing and spending programs behind our Move Free brand and other branded new products, the inability to achieve cost savings and operational efficiencies, the inability to increase operating margins and increase revenues, dependence on individual products, the inability to successfully relaunch brands in our Haleko Unit, dependence on individual customers, the impact o f competitive products and pricing (including private label), market and industry conditions (including pricing, demand for products, level of trade inventories and raw materials availability and pricing), 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, lack of available product liability insurance for products containing ephedra, uncertainty of market acceptance of new products, adverse publicity regarding the consumption of nutritional supplements, 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).
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WEIDER NUTRITION INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
| Three Months Ended | Year Ended | ||||||||||||
| May 31, | May 31, | ||||||||||||
2004(a) | 2003(a) | 2004 | 2003 | ||||||||||
| Net sales | $ | 65,642 | $ | 55,781 | $ | 257,528 | $ | 240,854 | |||||
| Cost of goods sold | 40,738 | 34,037 | 159,653 | 148,243 | |||||||||
| Gross profit | 24,904 | 21,744 | 97,875 | 92,611 | |||||||||
| Operating expenses: | |||||||||||||
| Selling and marketing | 13,724 | 14,568 | 54,115 | 47,159 | |||||||||
| Other operating expenses | 8,902 | 6,800 | 30,079 | 28,336 | |||||||||
| Total operating expenses | 22,626 | 21,368 | 84,194 | 75,495 | |||||||||
| Income from operations | 2,278 | 376 | 13,681 | 17,116 | |||||||||
| Other expense, net | 413 | 310 | 678 | 3,123 | |||||||||
| Income from continuing operations | |||||||||||||
| before income taxes | 1,865 | 66 | 13,003 | 13,993 | |||||||||
| Income taxes (benefit) | 638 | (36 | ) | 4,928 | 5,528 | ||||||||
| Income from continuing operations | 1,227 | 102 | 8,075 | 8,465 | |||||||||
| Income (loss) from discontinued operations, | |||||||||||||
| net of tax | 234 | 179 | 812 | (607 | ) | ||||||||
| Cumulative effect of change in | |||||||||||||
| accounting principle, net of tax | -- | -- | -- | (15,392 | ) | ||||||||
| Net income (loss) | $ | 1,461 | $ | 281 | $ | 8,887 | $ | (7,534 | ) | ||||
| Weighted average common | |||||||||||||
| shares outstanding - dilutive | 26,621 | 26,410 | 26,771 | 26,249 | |||||||||
| Net income (loss) per share: | |||||||||||||
| Income from continuing operations | $ | 0.04 | $ | -- | $ | 0.30 | $ | 0.32 | |||||
| Income (loss) from discontinued operations | 0.01 | 0.01 | 0.03 | (0.02 | ) | ||||||||
| Change in accounting principle | |||||||||||||
| (anti-dilutive) | -- | -- | -- | (0.59 | ) | ||||||||
| Net income (loss) | $ | 0.05 | $ | 0.01 | $ | 0.33 | $ | (0.29 | ) | ||||
(a)Unaudited
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WEIDER NUTRITION INTERNATIONAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
| May 31, 2004 | May 31, 2003(1) | ||||||
| Cash | $ | 7,449 | $ | 3,463 | |||
| Receivables, net | 35,620 | 27,288 | |||||
| Inventories | 28,431 | 27,543 | |||||
| Other current assets | 7,440 | 12,297 | |||||
| Total current assets | 78,940 | 70,591 | |||||
| Property and equipment, net | 24,618 | 26,676 | |||||
| Other assets, net | 11,366 | 17,671 | |||||
| 35,984 | 44,347 | ||||||
| Total assets | $ | 114,924 | $ | 114,938 | |||
| Current portion of long-term debt | $ | 1,091 | $ | 8,057 | |||
| Other current liabilities | 31,393 | 36,575 | |||||
| Total current liabilities | 32,484 | 44,632 | |||||
Other liabilities(2) | 6,627 | 1,460 | |||||
| Stockholders’ equity | 75,813 | 68,846 | |||||
| Total liabilities & stockholders’ equity | $ | 114,924 | $ | 114,938 | |||
(1)Certain amounts have been reclassified to conform with current year presentation.
(2)Includes long-term debt of $133 and $659 at May 31, 2004, and 2003, respectively.
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