Twinlab Has Improved 1Q, Cuts Workforce To Better Profitability

Twinlab Has Improved 1Q, Cuts Workforce To Better Profitability

HAUPPAUGE, N.Y.--Twinlab Corp. (NASDAQ:TWLB) reported decreased sales but increased earnings for its first quarter (1Q02), reported April 30 and ended March 31. Even so, the company announced it cut workforce numbers again in an effort to improve profitability.

Revenue for the quarter was down 8.6 percent to $48.2 million from $52.7 million, while gross margin held around 38 percent of sales. Operating expenses were cut 35.2 percent to $19.7 million from $29.9 million posted in the same period last year. Because of a $6.2 million tax refund, income was markedly improved, coming in at $3.7 million, or $.13 per share earned, compared to a net loss of $15.9 million, or $.26 per share lost, in 1Q01.

The company announced that it recently eliminated 7 percent of its current workforce to continue its efforts in improving profitability, an effort from which Twinlab expects to see results in 3Q02. The company had previously cut 10 percent of its salaried employees, announced in November 2001. Twinlab reported that these cuts will save the company in excess of $4 million.

"We are beginning to realize the impact of our cost reductions and related initiatives, have generated positive cash flow from operations and reduced our outstanding debt," said Ross Blechman, chairman, president and chief executive officer. "We recognize the need for additional measures and are committed to their implementation."

The company also announced that it completed the sale of all substantial assets of its Health Factors International subsidiary to Irvine, Calif.-based Anabolic Laboratories Inc. for approximately $2.1 million. Twinlab plans to use the money to reduce borrowings outstanding under its revolving credit facility.

click here for chart

Share this article: Email, Slashdot, Digg, Del.icio.us, Yahoo!MyWeb, Windows Live Favorites, Furl
Add this article feed to: RSS, My Yahoo, Newsgator, Bloglines