Tag - WNI

Sixty is the new 40, and 70 is the new 50.

Those assertions from an aging and persistently health-conscious baby-boomer generation have driven advances in the nutritional products industry and in companies such as Schiff Nutrition International Inc. (NYSE:WNI).

Consistent use of nutritional supplements can factor into offsetting heart disease, bone-mass loss and other health issues that mid-life adults face, according to a report by the Council for Responsible Nutrition. About half of all Americans use nutritional supplements, the CRN said. 

That bodes well for Schiff, which nearly doubled its quarterly profit and beat analysts’ earnings-per-share and revenue forecasts. The Salt Lake City, Utah-based company reported on Sept. 18 fiscal 2009 first-quarter net income of $3.2 million, or $0.11 a share, compared with $1.6 million, or $0.06 a share, a year ago. Revenue increased 17.4% to $47.8 million. Analysts had predicted EPS of $0.09 on revenue of $45.2 million.

Ian Corydon, research analyst for B. Riley & Co. LLC, said Schiff’s focus on its private-label lines helped the favorable Q1 2009 results. Schiff’s private-label sales increased about 80% year over year, Corydon wrote in a Sept. 19 report.

Corydon adjusted his estimates accordingly, increasing his second-quarter EPS forecast to $0.14 from $0.09 and his fiscal year 2009 EPS forecast to $0.52 from $0.50. He expects Schiff’s annual revenue to grow more than 13%, up from his previous estimate of 9.5%, due to “further gains in the private-label . . .

DXP Enterprises Inc. (Nasdaq:DXPE), Schiff Nutrition International Inc. (Nasdaq:WNI) and Urstadt Biddle Class A REIT (Nasdaq:UBA) are among the new 52-week highs in Monday's trading among companies with market capitalizations under $1 billion.

Here are the new 52-week highs among small caps:

Friedman Industries Inc. (Nasdaq:FRD) Nabi Biopharmaceuticals (Nasdaq:NABI) and Micromet Inc. (Nasdaq:MITI) are among the new 52-week highs in Friday's trading among companies with market capitalizations under $1 billion.    

Also included among the results: Associated Estates Realty Corp. (Nasdaq:AEC) Medifast Inc. (Nasdaq:MED) Schiff Nutrition International Inc. (Nasdaq:WNI) Kensey Nash Corp. (Nasdaq:KNSY) USA Truck Inc (Nasdaq:USAK) and CombiMatrix Corp. (Nasdaq:CBMX).    

Here are the new 52-week highs among small caps:      

Schiff Nutrition International Inc. (NYSE: WNI) CFO Joe Baty said the maker of vitamins and nutritional supplements expects flat sales during fiscal 2008, due to competitive pricing pressures. Baty also said the company expects gross margins for fiscal 2008 in the range of 41% to 43%, from 39.8% in fiscal 2007. Baty made the remarks during a midday conference call.

The higher gross margins are due to lower joint care raw material costs, Baty said. He said the gross margins would be even better if the company did not have to engage in price discount promotions in response to competitive pressure.

Before the opening, Schiff reported first-quarter sales of $40.7 million, down about 11% from $45.7 million a year earlier. Schiff’s net income for the first quarter ended Aug. 13 was $1.6 million, or $0.06 a share, down 52% from $3.3 million, or $0.12 a share, in the year-ago period.

The nutrition company’s quarterly operating expense rose 14% to $14.6 million, from $12.8 million a year earlier. Schiff’s cost of goods sold, however, fell 15% to $24.3 million, from $28.5 million in the year-ago quarter.

The company’s first quarter results were hurt by a shareholder dividend payment of $1.50 per share, the company said in a statement. Schiff was also negatively impacted by a shift in the timing of customer promotions, the firm said. The promotions have been shifted to the second and third quarters, CEO Bruce Wood said.

“We believe our second and third quarter branded sales will be positively impacted by this timing shift,” Wood said.

Schiff continues to experience intense promotional activity from national competitors, the chief executive said. The company has developed a locally focused television, online and print marketing plan in light of the competition, he said.

The company expects to announce product improvements to its joint strengthening vitamin, Move Free, during the second quarter, Wood said. The company also plans other new products that will be announced during the third and fourth quarters, he said.

“We do expect fiscal ’08 to be a challenging year with respect to achieving top line growth,” Wood said. “However, we believe will continue to add to our strong liquidity position in fiscal ’08, which in turn gives us the ability to invest in long-term organic growth and also to explore acquisition opportunities.”

In midday trading, WNI shares are up 1.75%, or $0.09, at $5.24. Over the last 52 weeks, shares have ranged from $4.59 to $7.69.