Salt Lake City-based Weider Nutrition International, developer, manufacturer and marketer of vitamins and nutritional supplements, has posted net sales of US$79.4m for its Q4 ended 31 May, a fall from US$89.9m year on year.
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Weider reported a net loss of US$4.6m, US$0.17 per share, for the Q4 2002, compared to a net loss of US$844,000, US$0.03 per share, for the same period a year ago. Unusual charges during the Q4 2002 included a US$9m pre-tax loss for the impairment of assets associated with the sale of the American Body Building and Science Foods brands, and a US$1.8m write-off of previously capitalised financing fees. During the Q4 2001, unusual, non-cash charges included a US$2.2m pre-tax loss on the impairment of certain available-for-sale securities. Excluding these unusual items, Weider’s net income per share was US$0.07 and US$0.02, respectively, for the Q4 of FY 2002 and 2001.
For the full year ended 31 May 2002, Weider posted net sales of US$311.1m, down from US$342.3m in the year earlier. Including the unusual items and litigation settlement income, Weider reported a net loss of US$7.5m, US$0.29 per share, for FY 2002, compared to net income of US$211,000, US$0.01 per share, for the prior year. Excluding unusual items, Weider’s net loss per share was US$0.05 and US$0.02, respectively, for FY 2002 and 2001.
Bruce Wood, president and CEO, said: “Our cost cutting initiatives contributed to an improved operating margin for the Q4 2002. In addition to our efforts to improve profitability, we have strengthened the balance sheet. During the FY, we reduced our outstanding debt by about US$33.5m and inventories by about US$26.8m. While we expect continued revenue growth challenges in FY 2003 primarily due to increased private label competition, we believe our improved capital position provides a stronger foundation as we focus on supporting and developing our core brands.”
Consolidated condensed statements of operations
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By GlobalData(In US$000s, except per share amounts)
Three Months Ended Year Ended
31 May 31 May
———————- ———————-
2002(a)(b) 2001(a)(b) 2002(a) 2001(a)
———– ———- ——— ————
Net sales $ 79,369 $ 89,911 $ 311,070 $ 342,304
Cost of goods
sold 51,411 57,560 204,070 218,183
——— ——— ——— ———
Gross profit 27,958 32,351 107,000 124,121
——— ——— ——— ———
Selling and
marketing 14,365 18,406 59,771 76,049
Other operating
expenses 9,759 9,918 37,471 39,246
Asset impairment
loss 9,027 — 9,027 —
Litigation
settlement — — (442) (3,571)
——— ——— ——— ———
33,151 28,324 105,827 111,724
——— ——— ——— ———
Income (loss)
from
operations (5,193) 4,027 1,173 12,397
——— ——— ——— ———
Interest
expense, net (1,377) (2,343) (7,224) (9,967)
Financing fees
and OID
write-off (1,786) — (1,786) —
Securities
impairment — (2,177) — (2,177)
Other 157 (646) (510) (874)
——— ——— ——— ———
(3,006) (5,166) (9,520) (13,018)
——— ——— ——— ———
Loss before
income taxes (8,199) (1,139) (8,347) (621)
Income tax
benefit (3,644) (295) (803) (832)
——— ——— ——— ———
Net income
(loss) $ (4,555) $ (844) $ (7,544) $ 211
========= ========= ========= =========
Diluted
shares
outstanding 26,249 26,249 26,249 26,245
========= ========= ========= =========
Net income
(loss)
per share $ (0.17) $ (0.03) $ (0.29) $ 0.01
========= ========= ========= =========
(a) Certain amounts in prior fiscal period financial statements have
been reclassified to conform with the current fiscal period
presentation, which include adoption of EITF No. 01-9 requiring
the reclassification of certain sales incentives.
(b) Unaudited
