Branded Products Growth Lift Schiff FY08

LOS ANGELES—Schiff Nutrition (NYSE:WNI) logged $50.4 million for the fourth quarter (4Q), up nearly 40 percent from a year ago and contributing to $176 million in fiscal year 2008 (FY08) sales, which were up 17 percent from the prior year. Continued growth of Schiff branded products took the credit, as did renewed growth of private label products. Management reported 4Q gross margin was affected by the overall sales mix as well as raw material pricing pressures, yet improved to 42 percent in 4Q from 40 percent the year prior.

Income for the quarter slipped to $2.8 million, or $0.10 per diluted share, compared to net income of $3.7 million, or $0.13 per diluted share, for the same period a year ago, owing mostly to one-time charges of $0.8 million related to pursuit of a potential acquisition and $0.4 million associated with the first quarter declaration of a special dividend. The acquisition charge combined with an even larger dividend cost of $3.0 million for FY08 to dip earnings to $11.3 million, or $0.40 per diluted share, from $12.4 million, or $0.45 per diluted share, earned in 2007.

“During the quarter, we pursued a potentially significant acquisition," said Bruce Wood, president and CEO. "While we were not successful, this undertaking underscores our intent to explore strategic opportunities we believe will build shareholder value. In the meantime, we remain committed to our branded and private label strategies, which we believe will result in sales growth in fiscal 2009."