SALT LAKE CITY— Schiff Nutrition International Inc. (NYSE:WNI) released financial results for the third quarter of fiscal 2010 (3Q10), and announced a special cash dividend of $0.50 per share payable on April 14 to shareholders of record at close of business on March 31, 2010.
Net sales for 3Q10 were $53.3 million, compared to $49.9 million for 3Q09; net income was up significantly from the comparable 2009 quarter—$5.7 million, or $0.20 per diluted share, in 3Q10 versus $3.6 million, or $0.13 per diluted share, in 3Q09.
Bruce Wood, president and CEO, stated, “Overall net sales for the third quarter increased almost 7 percent versus the prior year period, driven by a strong performance on our branded business, partially offset by a decline in private label sales. We also recorded significant third quarter over third quarter improvement in our gross profit and operating margins, and added to our strong cash position.”
He noted competitive bidding activity in the private label sector has impacted the company’s positioning in that area, adding the company expects the private label business to become increasingly price competitive. However, Schiff is investing in new branded growth initiatives and saw particularly strong growth in its MegaRed® krill oil product.
Wood said the special cash dividend was approved by Schiff’s board of directors after reviewing financials and finding the company has approximately $58.8 million in cash and short term investments. “The dividend reflects our ongoing confidence the company will continue to generate positive cash flows from operations,” he added. “We believe our cash position after the dividend payment provides us with the financial flexibility to continue investing in our business, funding growth initiatives, and exploring acquisition opportunities.”
