WNI Schiff Nutrition International, Inc.

Weider Nutrition International, Inc. (NYSE:WNI)(doing business as Schiff Nutrition) today announced results for the fiscal 2006 first quarter ended August 31, 2005. Weider Nutrition's net sales were $48.0 million for the first quarter, compared to $43.7 million for the same period in fiscal 2005. For its fiscal 2006 first quarter, Weider Nutrition reported net income of $4.9 million, or $0.18 per share, compared to $3.7 million, or $0.14 per share, for the same period a year ago. Bruce Wood, president and chief executive officer, stated, "The approximate 9.9 percent net sales increase for our first quarter was fueled by a 16.9 percent increase in branded sales, most notably in our Move Free(R) joint care brand. As expected, we experienced erosion in our gross margin primarily due to the ongoing higher raw material costs in a price competitive market. Our earnings per share increase was aided by a more favorable effective tax rate and certain unusual income items." Wood added, "We are encouraged by the solid sales results in the quarter, and by the positive results contained in the abstract of the National Institutes of Health Glucosamine/Chondroitin Arthritis Intervention Trial (NIH GAIT) joint care study regarding glucosamine and chondroitin. This seminal study, coupled with positive results on glucosamine contained in the abstract from the recently completed European Glucosamine Unum In Die Efficacy Trial (GUIDE Trial), give us reason to remain confident in the long-term potential of the joint care category." Conference Call Information Weider Nutrition International will hold a conference call today, October 4, 2005 at 11 a.m. ET. The U.S. domestic access number is 866-831-6162. International participants should dial 617-213-8852. Please call in approximately ten minutes in advance. The conference call will be broadcast live over the Internet at www.schiffnutrition.com. If you do not have Internet access, a replay of the call will be available by dialing 1-888-286-8010 and entering access code 75501755; for international callers by dialing 617-801-6888, access code 75501755. The telephone replay will be available through October 6, 2005 and the webcast through October 24, 2005. About Weider Nutrition Weider Nutrition International, Inc., doing business as Schiff Nutrition International, 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 site www.schiffnutrition.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 impact of raw material pricing and availability (particularly relating to joint care products), the inability to achieve cost savings and operational efficiencies, the inability to increase operating margins and increase revenues, dependence on individual products, dependence on individual customers, the impact of competitive products and pricing (including private label), market and industry conditions (including pricing, demand for products and level of trade inventories), the impact of clinical studies regarding nutritional supplements, particularly relating to the joint care category, 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, uncertainty of market acceptance of new products, adverse publicity regarding the consumption of nutritional supplements, the inability to find strategic acquisitions or the inability to successfully consummate or integrate an acquisition, 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). -0- *T WEIDER NUTRITION INTERNATIONAL, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (IN THOUSANDS EXCEPT PER SHARE AMOUNTS) (unaudited) Three Months Ended August 31, --------------------- 2005 2004 -------- -------- Net sales $ 48,017 $ 43,695 Cost of goods sold 35,308 26,892 -------- -------- Gross profit 12,709 16,803 Operating expenses: Selling and marketing 6,016 7,213 Other operating expenses 2,916 4,633 -------- -------- Total operating expenses 8,932 11,846 -------- -------- Income from operations 3,777 4,957 Other income (expense), net 1,949 (170) -------- -------- Income from continuing operations before income taxes 5,726 4,787 Income taxes 734 1,844 -------- -------- Income from continuing operations 4,992 2,943 Income (loss) from discontinued operations, net of tax (57) 745 -------- -------- Net income $ 4,935 $ 3,688 ======== ======== Weighted average common shares outstanding - diluted 26,774 26,564 ======== ======== Net income per share: Income from continuing operations $ 0.19 $ 0.11 Income from discontinued operations (0.01) 0.03 -------- -------- Net income $ 0.18 $ 0.14 ======== ======== WEIDER NUTRITION INTERNATIONAL, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (IN THOUSANDS) August 31, May 31, 2005 2005 ----------- ------------- (unaudited) Cash and cash equivalents $ 21,205 $ 11,358 Short-term investments 30,475 24,212 Receivables, net 21,047 29,300 Inventories 17,522 32,419 Other current assets 5,316 7,154 ---------- ---------- Total current assets 95,565 104,443 ---------- ---------- Property and equipment, net 13,130 16,714 Other assets 5,000 7,109 ---------- ---------- 18,130 23,823 ---------- ---------- Total assets $ 113,695 $ 128,266 ========== ========== Short-term debt $ 252 $ 3,020 Other current liabilities 18,073 35,411 ---------- ---------- Total current liabilities 18,325 38,431 Deferred taxes 680 -- Stockholders' equity 94,690 89,835 ---------- ---------- Total liabilities & stockholders' equity $ 113,695 $ 128,266 ========== ========== *T