Weider Registers Earnings Despite Reorganization Charges

Weider Registers Earnings Despite Reorganization Charges

SALT LAKE CITY--Weider Nutrition International Inc. (NYSE:WNI) reported positive earnings for its fiscal year ended May 31, under the weight of the growing costs of its reorganization efforts.

Revenues for the year rose to $365 million from $335 million sold the year prior. Gross profit increased three points as a percentage of sales, to 37 percent for the year. Operating expenses fell a little more than one point as a percentage of sales, settling at 33.5 percent. Net income was $1.1 million or $.04 per diluted share, up considerably from a loss of $8.8 million or $.35 per share the previous year.

For the quarter, revenues nudged up two percent to $96.9 million, and gross profit ballooned seven points as a percentage of sales, compared to results from the same period the year prior. Operating expenses dropped to one percent of sales, and net loss improved to $1.1 million or $.04 per diluted share, vs. the comparable 1999 quarter.

WNI had previously announced it would incur around $6 million in charges during fiscal 2000, and about hit its mark with $5.8 million in one-time costs charged to the year. Of this amount, $4.3 million was associated with organizational changes, including senior management changes, and outside consulting tabs. The remaining amount was attributed to excess returns and credits linked to the company's recent SKU reduction program.