WNI Schiff Nutrition International, Inc.

Schiff Nutrition International, Inc. (formerly Weider Nutrition International, Inc.), (NYSE:WNI), today announced results for the fiscal 2006 second quarter and six months ended November 30, 2005. Schiff Nutrition's net sales were $35.5 million for the second quarter, compared to $44.3 million for the same period in fiscal 2005. For its fiscal 2006 second quarter, Schiff Nutrition reported net income of $1.5 million, or $0.06 per share, compared to $3.5 million, or $0.13 per share, for the same period a year ago. Schiff Nutrition's net sales were $83.5 million for the six months ended November 30, 2005, compared to $88.0 million for the same period in fiscal 2005. For the first six months of fiscal 2006, Schiff Nutrition reported net income of $6.5 million, or $0.24 per share, compared to $7.2 million, or $0.27 per share, for the same period a year ago. Bruce Wood, president and chief executive officer, stated, "Second quarter sales declined as expected, primarily due to the discontinuance of certain private label business. Our branded sales also declined slightly in the quarter, but they are up approximately 8 percent for the first six months. Moreover, we are encouraged by the current overall strong performance in our branded sales at the retail level, as measured by Information Resources, Inc. and customer point of sale data." Wood continued, "We expect to build our branded sales with the fiscal third quarter introduction of new Move Free(R) Advanced Formula. Based on clinical research, we believe Move Free Advanced is superior to typical glucosamine chondroitin combination products, which have already been proven effective in promoting joint health. We will be providing substantial marketing support for this proprietary new product, beginning in our fiscal third quarter. "Our positive fiscal year to date branded sales results, coupled with the introduction of Move Free Advanced, give us reason to believe that our continued strategic focus on profitable branded growth will positively impact fiscal 2007 and beyond." Conference Call Information Schiff Nutrition International will hold a conference call today, January 12 at 11 a.m. ET. The U.S. domestic access number is 800-591-6930. International participants should dial 617-614-4908. Please call in approximately ten minutes in advance. The conference call will be broadcast live over the Internet at www.schiffnutrition.com. A replay of the call will be available by dialing 888-286-8010 for domestic callers and 617-801-6888 for international callers; enter access code 96835623. The telephone replay will be available through January 17, 2006. About Schiff Nutrition Schiff Nutrition International, Inc. (formerly Weider Nutrition International, Inc.) develops, manufactures, markets and sells branded and private label vitamins, nutritional supplements and nutrition bars in the United States and throughout the world. To learn more about Schiff, 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. Schiff 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 ability to successfully launch Move Free Advanced, the inability to successfully implement marketing and spending programs behind our Move Free brand and other new branded products, the impact of raw material pricing and availability (particularly relating to joint care products), the mix between branded and private label products and our ability to grow branded sales, 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 web site (www.sec.gov). -0- *T SCHIFF NUTRITION INTERNATIONAL, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (unaudited) Three Months Ended Six Months Ended November 30, November 30, ------------------- ------------------- 2005 2004 2005 2004 --------- --------- --------- --------- Net sales $ 35,456 $ 44,268 $ 83,473 $ 87,963 Cost of goods sold 24,246 28,225 59,554 55,117 --------- --------- --------- --------- Gross profit 11,210 16,043 23,919 32,846 --------- --------- --------- --------- Operating expenses: Selling and marketing 6,060 6,142 12,076 13,357 Other operating expenses 3,761 4,286 6,677 8,919 --------- --------- --------- --------- Total operating expenses 9,821 10,428 18,753 22,276 --------- --------- --------- --------- Income from operations 1,389 5,615 5,166 10,570 Other income (expense), net 305 (16) 2,254 (186) --------- --------- --------- --------- Income from continuing operations before income taxes 1,694 5,599 7,420 10,384 Income taxes 89 2,155 823 3,997 --------- --------- --------- --------- Income from continuing operations 1,605 3,444 6,597 6,387 Income (loss) from discontinued operations, net of tax (70) 20 (127) 765 --------- --------- --------- --------- Net income $ 1,535 $ 3,464 $ 6,470 $ 7,152 ========= ========= ========= ========= Weighted average common shares outstanding -- diluted 26,866 26,487 26,820 26,525 ========= ========= ========= ========= Net income per share -- diluted: Income from continuing operations $ 0.06 $ 0.13 $ 0.25 $ 0.24 Income (loss) from discontinued operations - - (0.01) 0.03 --------- --------- --------- --------- Net income $ 0.06 $ 0.13 $ 0.24 $ 0.27 ========= ========= ========= ========= SCHIFF NUTRITION INTERNATIONAL, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (IN THOUSANDS) November 30, 2005 May 31, 2005 ----------------- ----------------- (unaudited) Cash and cash equivalents $ 24,275 $ 11,358 Investment securities 29,075 24,212 Receivables, net 15,382 29,300 Inventories 24,686 32,419 Other current assets 6,468 7,154 ----------------- ----------------- Total current assets 99,886 104,443 ----------------- ----------------- Property and equipment, net 13,058 16,714 Other assets, net 4,673 7,109 ----------------- ----------------- 17,731 23,823 ----------------- ----------------- Total assets $ 117,617 $ 128,266 ================= ================= Short-term debt $ 974 $ 3,020 Other current liabilities 19,300 35,411 ----------------- ----------------- Total current liabilities 20,274 38,431 Deferred taxes 673 - Stockholders' equity 96,670 89,835 ----------------- ----------------- Total liabilities & stockholders' equity $ 117,617 $ 128,266 ================= ================= *T