Lower Than Anticipated Marketplace Demand Impacting Results
BOCA RATON, Fla., Nov. 5 /PRNewswire/ -- Rexall Sundown, Inc.
(Nasdaq: RXSD) announced today that it expects its fiscal first quarter sales
to be 11-12% above the prior year first quarter while earnings per share are
expected to be below the $0.20 reported last year. The Company primarily
attributes its expected first quarter results to a slow down in retail sales
within the nutritional industry.
The Company indicated today that the most recent market data reported that
the industry growth rate was 15% for the latest four-week period compared to
the prior year, down 3.7% sequentially, during a period where the Company
expected a sequential increase. This slower than expected growth rate
precipitated many retailers to re-align their inventory positions and ordering
patterns which adversely impacted sales in the first quarter.
Chris Nast, Chief Executive Officer, said, "Reviewing the most recent
market data, we now believe that the industry has returned to its historical
mid-teens growth, more quickly than we expected." In its most recently
completed fiscal year, the Company's sales increased over 82%, reaching
$531 million, fueled by a 30% growth rate in Food, Drug and Mass for the
52-week period ending September 27, 1998.
The Company believes that it will continue to increase its market share
and distribution reach through the introduction of new and innovative products
coupled with the ongoing addition of new retail accounts. "Two of these new
products that we expected to launch in the first quarter will now be
introduced in the second quarter. When coupled with a return to more normal
retail order patterns, we anticipate our growth rate to be in the 20%-25%
range for the remainder of the fiscal year," added Mr. Nast.
Sundown(R) is the number one brand in both vitamins and herbals in the
Food, Drug and Mass segments of the nutritional industry. "Over the long
term, we remain very optimistic about our prospects to succeed and retain our
leadership position in the nutritional industry. With strong cash flow our
financial leverage remains in tact, with over $100 million in cash, to fund
our share repurchase program and invest for the future," said Mr. Nast.
Rexall Sundown Inc. develops, manufactures and distributes vitamins,
nutritional supplements and other consumer health products in the United
States and internationally. Visit the Company's websites at
http://www.rexallsundown.com or http://www.rexallshowcase.com.
This press release may contain "forward looking statements" as such term
is defined in the Private Securities Litigation Reform Act of 1995 or by the
Securities and Exchange Commission in its rules, regulations and releases,
which represents the Company's interpretation or beliefs. These forward
looking statements, by their nature, involve substantial risks and
uncertainties, certain of which may be beyond the Company's control and actual
results may differ materially depending on a variety of important factors
including uncertainties related to acquisitions, government regulation,
managing and maintaining growth, the effect of adverse publicity, reliance on
independent distributors of Rexall Showcase, competition and other factors
described in the Company's filings with the Securities and Exchange
Commission.
SOURCE Rexall Sundown, Inc.
 back to top
Related links:
http://www.rexallsundown.com
CONTACT:
Geary Cotton, Chief Financial Officer,
561-241-9400, Rexall Sundown, Inc.; or Karen Griffiths, General,
or Lynn Sawyer-Landau, Analysts, 212-661-8030, both of The
Financial Relations Board
|
