Twinlab Reports on Dismal 2000Twinlab Reports on Dismal 2000
April 3, 2001
HAUPPAUGE, N.Y.--Twinlab Corp. (NASDAQ:TWLB) suffered a difficult year 2000, as results for its fourth quarter and fiscal year ended Dec. 31 showed steep declines, especially to the bottom line. Net sales for the quarter were off $22.6 million or 26 percent from 4Q 1999 sales, and gross margin slumped to 18 percent from 43 percent achieved a year ago. Net loss was $42.4 million or $1.48 per share, compared to $11.5 million or $.38 per share lost in the same quarter the year prior.
For the year, sales fell 11 percent, or $35.2 million, while gross margin declined 13 percent, compared to fiscal 1999. The company levied a non-cash $26 million charge to the year as an adjustment to deferred tax assets, wrote down $16 million due to inventory issues at its Utah facility, and penciled in $2.3 million of bad debt relating to the bankruptcy of one of its distributors. In the end, net loss for 2000 plummeted further to $51.9 million or $1.81 per share from $5.2 million or $.16 per share lost in 1999.
Along with the financial results, Twinlab reported a new credit facility agreement with CIT Group/Business Credit Inc. It provides TWLB with a $60 million revolving line of credit, an increase of $10 million from its previous credit arrangement. The facility agreement is supported by a $15 million guaranty provided by TWLB senior management.
"Fiscal 2000 was very difficult for Twinlab, as it was for many others in our industry," said Ross Blechman, president and chief executive officer. "We have undertaken an aggressive review of the company's infrastructure and taken strong actions and initiatives designed to improve the firm's structure, processes and systems."
At the close of the market on April 3, TWLB shares had fallen 12.5 percent to $1 3/32, continuing a two-month skid.
For more information, contact Bill Rizzardi at (631) 761-7111.
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