Weider Nutrition Continues to Implement New Business Strategy

Weider Nutrition Continues to Implement New BusinessStrategy

SALTLAKE CITY--Weider Nutrition International Inc. (NASDAQ:WNI) released results forits third quarter ended Feb. 29, 2000. Revenues inched up to $90.4 million from$89 million sold a year ago, and gross profit held steady around 37 percent ofsales. Operating expenses weighed in at $29.7 million, down slightly from $9.8million spent the previous year. Third quarter 2000 and comparable 1999 expensesincluded $.8 million and $3.5 million, respectively, in costs associated withorganizational changes and the upgrade of management systems. As a result, netincome settled at $.85 million or $.03 per share, more than double the $.41million or $.02 per share earned in the equivalent 1999 quarter. Pro forma netincome (excluding the extra charges) was $1.3 million or $.05 per share, downfrom pro forma 1999 income of $2.1 million or $.08 per share.

Weider had previously announced it would incur up to $6 million in chargesduring fiscal 2000 as a result of refocusing its business strategy. Included inthis amount is almost $4 million spent to fill top management positions, as wellas cover recruiting and relocation, period costs related to personnel changesand outside consulting costs.

However, growth in international markets and in domestic mass-market saleshelped push revenues upward, according to the company. Additionally, expenseswere less than initially anticipated because of the delay until fiscal 2001 ofcertain marketing expenditures in support of new product and brand programs.

"During the first nine months of the fiscal year, we have upgraded ourmanagement team, implemented cost reduction programs, continued to downsize ourSKU count, strengthened our balance sheet and refocused our product developmentprogram," said Bruce Wood, president and chief executive officer.

For more information, contact Joseph Baty at [email protected]or (801) 975-5186.