BUSINESS NEWS: SCHIFF NUTRITION INTERNATIONAL, INC. ANNOUNCES FISCAL 2010 THIRD QUARTER RESULTS

SCHIFF NUTRITION INTERNATIONAL, INC. ANNOUNCES FISCAL 2010 THIRD QUARTER RESULTS AND DECLARES SPECIAL CASH DIVIDEND OF $0.50 PER SHARE
Salt Lake City, Utah, March 17, 2010: Schiff Nutrition International, Inc., (NYSE: WNI), today announced results for
the fiscal 2010 third quarter and nine months ended February 28, 2010. The company also announced plans to eturn $0.50 per share to shareholders through a special cash dividend payable on April 14, 2010 to shareholders
f record at the close of business on March 31, 2010. ro Financial Results
For the third quarter, Schiff Nutrition’s net sales were $53.3 million, compared to $49.9 million for the same period in fiscal 2009. For its fiscal 2010 third quarter, Schiff Nutrition reported net income of $5.7 million, or $0.20 per
diluted share; this compares to fiscal 2009 third quarter net income of $3.6 million, or $0.13 per diluted share.
For the nine months ended February 28, 2010, Schiff Nutrition’s net sales were $155.6 million, compared to $145.0 million for the same period in fiscal 2009. For the first nine months of fiscal 2010, Schiff Nutrition reported net
income of $16.0 million, or $0.55 per diluted share, compared to $9.8 million, or $0.34 per diluted share, for the same period a year ago.
Bruce Wood, President and Chief Executive Officer, stated, “Overall net sales for the third quarter increased almost 7% versus the prior year period, driven by a strong performance on our branded business, partially offset by a
ecline in private label sales. We also recorded significant third quarter over third quarter improvement in our dgross profit and operating margins, and added to our strong cash position.”
“Our MegaRed® krill oil product delivered particularly strong growth, and we continue to invest in the development of new branded growth initiatives. At the same time, our private label business is being impacted by recent competitive bidding activity. Bidding processes are ongoing, but we expect, at a minimum, the private label
business will become much more price competitive. However, based on our high quality standards, excellent ustomer service, and strong financial position, we believe we can compete effectively in this increasingly competitive environment.”
Wood concluded, “We are pleased to announce a $0.50 per share special cash dividend to our shareholders. The company has continued to generate positive cash flows and as of Febru$58.8 million in cash and short‐term investments. The dividend reflects continue to generate positive cash flows from operations. We believe ouprovides us with the financial flexibility to continue investing in our exploring acquisition opportunities.”

Special Dividend
Schiff Nutrition’s Board of Directors approved a $0.50 per share special cash dividend, payable on April 14, 2010 to shareholders of record at the close of business on March 31, 2010. Schiff’s Class A common stock will begin trading on an ex‐dividend basis on March 29, 2010, in accordance with NYSE rules. Shareholders who sell their shares on before the March 29, 2010 ex‐dividend date will also be selling their right to receive the $0.50 per share cash oidend. Shareholders are advised t contact their financial advisor before selling their shares.
In connection with the declaration of the special dividend, the Board of Directors approved certain dividend equivalent rights, clarifying that holders of other Schiff equity awards, including stock options and certain restricted stock units, will receive dividend equivalents in the form of cash on each share underlying the stock options and restricted stock units. In aggregate, at March 31, 2010, the record date, the company expects approximately 29.8 million potential common shares to be outstanding, including approximately 27.8 million shares of outstanding Class A and Class B common stock, approximately 1.0 million shares of Class A common stock underlying outstanding stock options and approximately 1.0 million shares of Class A common stock underlying outstanding restricted stock units. The aggregate amount of the special dividend is approximately $14.9 million, presuming 100 percent vesting of shares underlying equity awards. To the extent at March 31, 2010, outstanding stock options, restricted shares and restricted stock units are unvested, or for which the issuance of shares underlying vested restricted stock units have been deferred, the $0.50 per share dividend equivalents will not be distributed until after such equity aw est and/or as the deferred shares are issued.
For U.S. federal income tax purposes, it is expected that the special dividend will primarily represent dividend income to shareholders. Shareholders are encouraged to consult with their own tax and financial advisors.

SOURCE: Schiff Press Release