Schiff Nutrition's fiscal 2011 net sales increase to $213.6 million

Schiff Nutrition International, Inc., (NYSE:WNI), announced results for the fiscal 2011 fourth quarter and year ended May 31, 2011.

Tarang Amin, president and chief executive officer, stated: "Schiff Nutrition delivered a solid fiscal year 2011, posting annual year-over-year net sales growth of 4% despite a headwind in joint care. More importantly, during the past quarter, we began executing on our focused growth strategies: building premium brands, leading innovation, expanding the channel and geographic footprint of the company, pursuing acquisitions, and driving world-class operations."

Fiscal Fourth Quarter 2011 Results

For the three months ended May 31, 2011, Schiff Nutrition's net sales were $51.9 million, compared to $49.3 million for the same period in 2010. The 5% increase reflects growth in the branded business. Net income for the three months ended May 31, 2011 was $3.1 million, after $1.2 million in pre-tax expenses related to the recent acquisition of a probiotics business. This compares to net income of $2.4 million for the same period of 2010. Earnings per diluted share were $0.10 for the fiscal fourth quarter of 2011, compared to $0.08 for the fiscal fourth quarter of 2010.

Fiscal 2011 Results

Schiff Nutrition's fiscal 2011 net sales were $213.6 million, compared to fiscal 2010 net sales of $204.9 million, primarily reflecting overall improved branded business. Net income for fiscal 2011 was $12.6 million, after $1.9 million in pre-tax CEO transition expenses and $1.2 million in pre-tax expenses related to the acquisition noted above. This compares to net income of $18.4 million for fiscal 2010. Earnings per diluted share were $0.43 for fiscal 2011, compared to $0.64 for fiscal 2010.

Company Outlook

"Our employees' commitment to delivering high quality products has helped the company build leading brands such as Schiff MegaRed^® and Schiff MoveFree^®. Next, we intend to accelerate growth through increasing advertising support behind these premium brands, launching more new items, and participating in faster growing sub-categories such as our recent entry into the probiotics space," concluded Amin.

The company currently expects fiscal year 2012 net sales percentage growth of high single-digit to low double-digit. Gross profit percentage is expected to be in the range of 41.0% to 44.0%, reflecting a higher mix of branded sales volume together with a reduction in private label business. Selling and marketing expenses as a percentage of net sales are estimated to be in the range of 22.0% to 24.0% and other operating expenses are estimated at approximately $22.0 million to $24.0 million. The company currently anticipates a very high single-digit operating margin for fiscal 2012.