Twinlab Continues Restructure as FY02 Sales Drop

Twinlab Continues Restructure as FY02 Sales Drop

HAUPPAUGE, N.Y.--Twinlab Corp. (OTCBB:TWLB)reported March 26 that for its fiscal year (FY02), ended Dec. 31, sales weredown but the company was well on its way to improving gross margin and,ultimately, its earnings.

Net sales dropped to $146.6 million from the $187.1 millionlogged in FY01. Gross margin held steady at 32.1 percent of sales, and operatingexpenses decreased to $72.4 million from $77.3 million, even with $9.6 millionin restructuring charges and $1 million in additional advertising expenditures.Net loss improved to $32.4 million, or $1.12 per share lost, from FY01's $91.6million, or $3.19 per share lost.

"FY02 sales and operating results have been negativelyimpacted by our continued restructuring efforts," said Ross Blechman,chairman, president and chief executive officer. "The consolidation of ourmanufacturing and distribution facilities was substantially completed duringFY02. In January 2003, we completed the disposal of our non-strategic businesseswith the previously announced sale of Bronson." As a result of the Bronsonsale, the company has entered into an amendment with its revolving creditfacility, which included reducing the total facility from $50 million to $45million.

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