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| Company Contact: | Agency Contact: | |
| Joseph W. Baty, Chief Financial Officer | Keith Lippert /Lillian Armstrong | |
| (801) 975-5186 | Lippert/Heilshorn & Associates | |
| email:joeb@weider.com | (212) 838-3777/(415) 433-3777 | |
| www.weider.com | email:lillian@lhai-sf.com |
WEIDER ANNOUNCES FISCAL 2003 FOURTH QUARTER & YEAR-END RESULTS
Salt Lake City, Utah, August 14, 2003: Weider Nutrition International, Inc. (NYSE: WNI) today announced results for the fiscal 2003 fourth quarter and year ended May 31, 2003.
Weider Nutrition's net sales were $55.8 million for the fiscal 2003 fourth quarter, compared to $72.8 million for the same period in fiscal 2002. For its fiscal 2003 fourth quarter, Weider Nutrition reported net income of $281,000, or $0.01 per share (diluted), compared to a loss of $(4.6) million, or $(0.17) per share, for the same period a year ago. As previously announced, Weider sold its Germany-based Venice Beach sports apparel business, effective in its fiscal 2004 first quarter. In accordance with SFAS No. 144, operating results for Venice Beach for fiscal 2003 and fiscal 2002 are reflected as discontinued operations.
Weider Nutrition's fiscal 2003 net sales were $240.9 million, compared to fiscal 2002 net sales of $280.8 million. For fiscal 2003, Weider Nutrition reported a net loss of $(7.5) million, or $(0.29) per share, compared to a fiscal 2002 net loss of $(7.5) million, or $(0.29) per share. Excluding a one-time charge of $15.4 million recorded in the fiscal 2003 first quarter relating to the adoption of SFAS No. 142, Weider reported fiscal 2003 net income of $7.9 million, or $0.30 per share (diluted).
Bruce Wood, president and CEO, stated, "Our goal in fiscal 2003 was to significantly improve our financial health and support Weider's initiative to develop its core brands. We believe real progress was achieved during this past year. We reduced our debt from $40.0 million at May 31, 2002, to $8.7 million at May 31, 2003, divested the non-core American Body Building and Science Foods businesses, and initiated brand-building efforts on our flagship Move Free® joint care brand and the global Weider® brand. While we are encouraged with this progress, we recognize that achieving branded revenue growth is still our primary challenge."
Wood concluded, "We expect fiscal 2004 to be challenging, but we believe the strategic steps taken in fiscal 2003, coupled with the fiscal 2004 divestiture of Venice Beach, have positioned Weider to continue its investment in branded growth initiatives."
Conference Call Information
Weider Nutrition International will hold a conference call today, August 14, 2003 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 or http://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 2171072. The telephone replay will be available through August 18, 2003 and the webcast through September 13, 2003.
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.
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 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 restructure the Haleko business unit and make it profitable, dependence on individual customers, the impact of 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 and new product introductions into the marketplace, 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 May 31, | Year Ended May 31, | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| | 2003(b) | 2002(a)(b) | 2003 | 2002(a) | ||||||||||
| Net sales | $ | 55,781 | $ | 72,782 | $ | 240,854 | $ | 280,821 | ||||||
| Cost of goods sold | 34,037 | 48,804 | 148,243 | 183,833 | ||||||||||
| Gross profit | 21,744 | 23,978 | 92,611 | 96,988 | ||||||||||
| Operating expenses | 21,368 | 30,793 | 75,495 | 94,200 | ||||||||||
| Income (loss) from operations | 376 | (6,815 | ) | 17,116 | 2,788 | |||||||||
| Other expense, net | (310 | ) | (2,727 | ) | (3,123 | ) | (7,237 | ) | ||||||
| Income (loss) from continuing operations before income taxes | 66 | (9,542 | ) | 13,993 | (4,449 | ) | ||||||||
| Income taxes (benefit) | (36 | ) | (3,221 | ) | 5,528 | (553 | ) | |||||||
| Income (loss) from continuing operations | 102 | (6,321 | ) | 8,465 | (3,896 | ) | ||||||||
| Income (loss) from discontinued operations, net of tax | 179 | 1,766 | (607 | ) | (3,648 | ) | ||||||||
| Cumulative effect of change in accounting principle, net of tax | — | — | (15,392 | ) | — | |||||||||
| Net income (loss) | $ | 281 | $ | (4,555 | ) | $ | (7,534 | ) | $ | (7,544 | ) | |||
| Weighted average common shares outstanding—diluted | 26,410 | 26,249 | 26,313 | 26,249 | ||||||||||
| Net income (loss) per share: | ||||||||||||||
| Income (loss) from continuing operations | $ | — | $ | (0.24 | ) | $ | 0.32 | $ | (0.15 | ) | ||||
| Income (loss) from discontinued operations | 0.01 | 0.07 | (0.02 | ) | (0.14 | ) | ||||||||
| Change in accounting principle (anti-dilutive) | — | — | (0.59 | ) | — | |||||||||
| Net income (loss) | $ | 0.01 | $ | (0.17 | ) | $ | (0.29 | ) | $ | (0.29 | ) | |||
- (a)
- Certain amounts in the prior fiscal period financial statement have been reclassified to conform with the current fiscal period presentation, which includes adoption of EITF No. 01–9 requiring the reclassification of certain sales incentives.
- (b)
- Unaudited
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WEIDER NUTRITION INTERNATIONAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
| | May 31, 2003 | May 31, 2002 | ||||
|---|---|---|---|---|---|---|
| Cash | $ | 3,463 | $ | 2,412 | ||
| Receivables, net | 27,592 | 44,587 | ||||
| Inventories | 27,543 | 29,232 | ||||
| Other current assets | 12,297 | 10,223 | ||||
| Total current assets | 70,895 | 86,454 | ||||
| Property and equipment, net | 26,676 | 29,741 | ||||
| Other assets, net | 17,671 | 42,448 | ||||
| 44,347 | 72,189 | |||||
| Total assets | $ | 115,242 | $ | 158,643 | ||
| Total debt, including current portion* | $ | 8,716 | $ | 39,967 | ||
| Other liabilities | 37,680 | 41,935 | ||||
| Total liabilities | 46,396 | 81,902 | ||||
| Stockholders' equity | 68,846 | 76,741 | ||||
| Total liabilities & stockholders' equity | $ | 115,242 | $ | 158,643 | ||
- *
- Current portion of long-term debt amounts to $8,057 and $15,191 at May 31, 2003 and 2002, respectively.
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