WNI Schiff Nutrition International, Inc.

Schiff Nutrition International, Inc. (formerly Weider Nutrition International, Inc.), (NYSE:WNI), today announced results for the fiscal 2006 third quarter and nine months ended February 28, 2006. Schiff Nutrition's net sales were $49.6 million for the three months ended February 28, 2006, compared to $45.2 million for the same period in fiscal 2005. For its fiscal 2006 third quarter, Schiff Nutrition reported net income of $3.2 million, or $0.12 per share, compared to $1.2 million, or $0.05 per share, for the same period a year ago. Schiff Nutrition's net sales were $133.1 million for both the nine months ended February 28, 2006, and the comparable period in fiscal 2005. For the first nine months of fiscal 2006, Schiff Nutrition reported net income of $9.7 million, or $0.36 per share, compared to $8.4 million, or $0.32 per share, for the same period a year ago. Bruce Wood, President and Chief Executive Officer, stated, "We were encouraged by our overall 9.9 percent sales increase versus the year ago quarter, driven by our 29 percent increase in branded sales. At the same time, we experienced improvement in our gross margin, which along with the strong sales increase, contributed to the significant increase in earnings." Wood continued, "We were also pleased with initial marketplace reaction to our Move Free(R) Advanced Formula launch during the quarter, based on our sales results and consumer point of sale data. Move Free Advanced has reached the retail shelves of many of our customers. We initiated marketing support of the Move Free Advanced Formula in February, and we expect the level of investment to accelerate in the fiscal fourth quarter. We remain confident 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, March 30 at 11 a.m. ET. The U.S. domestic access number is 866-700-0133. International participants should dial 617-213-8831. Please call in approximately ten minutes in advance. The conference call will be broadcast live over the Internet at http://www.schiffnutrition.com/press.asp. 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 79135655. The telephone replay will be available through April 3, 2006. About Schiff Nutrition Schiff Nutrition International, Inc. (formerly Weider Nutrition International, Inc.) develops, manufactures, markets and distributes 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 inability to successfully launch Move Free Advanced, customer and consumer acceptance of 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, availability and quality (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, the inability to obtain product liability insurance, 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 Nine Months Ended February 28, February 28, -------------------- ------------------- 2006 2005 2006 2005 ----------- -------- --------- --------- Net sales $ 49,641 $45,185 $133,114 $133,148 Cost of goods sold 32,709 30,988 92,263 86,105 ----------- -------- --------- --------- Gross profit 16,932 14,197 40,851 47,043 ----------- -------- --------- --------- Operating expenses: Selling and marketing 8,527 7,736 20,603 21,093 Other operating expenses 4,157 3,578 10,834 12,497 ----------- -------- --------- --------- Total operating expenses 12,684 11,314 31,437 33,590 ----------- -------- --------- --------- Income from operations 4,248 2,883 9,414 13,453 Other income (expense), net 502 37 2,756 (149) ----------- -------- --------- --------- Income from continuing operations before income taxes 4,750 2,920 12,170 13,304 Income taxes 1,561 1,124 2,384 5,121 ----------- -------- --------- --------- Income from continuing operations 3,189 1,796 9,786 8,183 Income (loss) from discontinued operations, net of tax -- (577) (127) 188 ----------- -------- --------- --------- Net income $ 3,189 $ 1,219 $ 9,659 $ 8,371 =========== ======== ========= ========= Weighted average common shares outstanding - diluted 27,044 26,583 26,895 26,545 =========== ======== ========= ========= Net income per share - diluted: Income from continuing operations $ 0.12 $ 0.07 $ 0.36 $ 0.31 Income (loss) from discontinued operations -- (0.02) -- 0.01 ----------- -------- --------- --------- Net income $ 0.12 $ 0.05 $ 0.36 $ 0.32 =========== ======== ========= ========= SCHIFF NUTRITION INTERNATIONAL, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (IN THOUSANDS) February 28, May 31, 2006 2005 ------------ ---------- (unaudited) Cash and cash equivalents $ 27,315 $ 11,358 Investment securities 34,748 24,212 Receivables, net 17,992 29,300 Inventories 20,864 32,419 Other current assets 5,286 7,154 ------------ ---------- Total current assets 106,205 104,443 ------------ ---------- Property and equipment, net 12,841 16,714 Other assets, net 4,866 7,109 ------------ ---------- 17,707 23,823 ------------ ---------- Total assets $ 123,912 $ 128,266 ============ ========== Short-term debt $ 245 $ 3,020 Other current liabilities 22,064 35,411 ------------ ---------- Total current liabilities 22,309 38,431 Deferred taxes 1,501 -- Stockholders' equity 100,102 89,835 ------------ ---------- Total liabilities & stockholders' equity $ 123,912 $ 128,266 ============ ========== *T