QuickLinks -- Click here to rapidly navigate through this document
| Company Contact: Joseph W. Baty, Chief Financial Officer (801) 975-5186 email:joeb@weider.com www.weider.com | Agency Contact: Keith Lippert/Lillian Armstrong Lippert/Heilshorn & Associates (212) 838-3777/(415) 433-3777 email:lillian@lhai-sf.com |
WEIDER ANNOUNCES FISCAL 2004 FIRST QUARTER RESULTS
Salt Lake City, Utah, September 25, 2003: Weider Nutrition International, Inc. (NYSE: WNI) today announced results for the fiscal 2004 first quarter ended August 31, 2003.
Weider Nutrition's net sales were $63.6 million for the fiscal 2004 first quarter, compared to $69.3 million for the same period in fiscal 2003. Fiscal 2003 first quarter net sales include $3.1 million relating to the American Body Building™ and Science Foods® businesses, which were sold in that quarter. For its fiscal 2004 first quarter, Weider Nutrition reported net income of $2.2 million, or $0.08 per share (diluted), compared to a net loss of $10.9 million, or $0.42 per share, for the same period a year ago. The prior year quarter reflects the impact of adopting SFAS No. 142, which resulted in an after-tax charge of $15.4 million for the write-off of certain goodwill.
Bruce Wood, president and CEO, stated, "We began fiscal 2004 with a strengthened financial position, which has allowed us to continue implementation of marketing programs aimed at growing our flagship Move Free® joint care brand and the global Weider® brand. We were encouraged that our first quarter results may indicate revenues have started to stabilize. Furthermore, we were able to generate positive earnings per share, even while continuing our marketing efforts to grow our Move Free brand in fiscal 2004."
Conference Call Information
Weider Nutrition International will hold a conference call today, September 25, 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 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 2789820. The telephone replay will be available through September 29, 2003 and the webcast through October 24, 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 our SEC reports, copies of which are available upon request from our investor relations department or may be obtained at the SEC's website (www.sec.gov).
—Tables to Follow—
WEIDER NUTRITION INTERNATIONAL, INC.
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(IN THOUSANDS EXCEPT PER SHARE AMOUNTS)
(unaudited)
| | Three Months Ended August 31, | |||||||
|---|---|---|---|---|---|---|---|---|
| | 2003(b) | 2002(a)(b) | ||||||
| Net sales | $ | 63,641 | $ | 69,328 | ||||
| Cost of goods sold | 39,348 | 41,215 | ||||||
| Gross profit | 24,293 | 28,113 | ||||||
| Operating expenses: | ||||||||
| Selling and marketing | 14,496 | 11,677 | ||||||
| Other operating expenses | 6,739 | 7,403 | ||||||
| Total operating expenses | 21,235 | 19,080 | ||||||
| Income from operations | 3,058 | 9,033 | ||||||
| Other expense, net | (341 | ) | (601 | ) | ||||
| Income from continuing operations before income taxes | 2,717 | 8,432 | ||||||
| Income taxes | 1,088 | 3,373 | ||||||
| Income from continuing operations | 1,629 | 5,059 | ||||||
| Income (loss) from discontinued operations, net of tax | 566 | (571 | ) | |||||
| Cumulative effect of change in accounting principle, net of tax | — | (15,392 | ) | |||||
| Net income (loss) | $ | 2,195 | $ | (10,904 | ) | |||
| Weighted average common shares outstanding—diluted | 26,745 | 26,301 | ||||||
| Net income (loss) per share: | ||||||||
| Income from continuing operations | $ | 0.06 | $ | 0.19 | ||||
| Income (loss) from discontinued operations | 0.02 | (0.02 | ) | |||||
| Change in accounting principle (anti-dilutive) | — | (0.59 | ) | |||||
| Net income (loss) | $ | 0.08 | $ | (0.42 | ) | |||
- (a)
- Certain amounts in the prior fiscal period financial statement have been reclassified to conform with the current fiscal period presentation.
- (b)
- Unaudited
—More—
WEIDER NUTRITION INTERNATIONAL, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS)
| | August 31, 2003 | May 31, 2003 | ||||
|---|---|---|---|---|---|---|
| | (unaudited) | | ||||
| Cash | $ | 4,764 | $ | 3,463 | ||
| Receivables, net | 31,532 | 27,592 | ||||
| Inventories | 29,379 | 27,543 | ||||
| Other current assets | 5,926 | 12,297 | ||||
| Total current assets, net | 71,601 | 70,895 | ||||
| Property and equipment, net | 26,124 | 26,676 | ||||
| Other assets, net | 17,230 | 17,671 | ||||
| 43,354 | 44,347 | |||||
| Total assets | $ | 114,955 | $ | 115,242 | ||
| Total debt, including current portion* | $ | 4,944 | $ | 8,716 | ||
| Other liabilities | 38,517 | 37,680 | ||||
| Total liabilities | 43,461 | 46,396 | ||||
| Stockholder's equity | 71,494 | 68,846 | ||||
| Total liabilities & stockholders' equity | $ | 114,955 | $ | 115,242 | ||
- *
- Current portion of long-term debt amounts to $4,556 and $8,057 at August 31 and May 31, respectively.
—# # #—
WEIDER NUTRITION INTERNATIONAL, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (IN THOUSANDS EXCEPT PER SHARE AMOUNTS) (unaudited)
WEIDER NUTRITION INTERNATIONAL, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (IN THOUSANDS)