New financial structure helps lift Leiner
vitamins, minerals, and nutritional supplements, has seen a solid
financial performance in the first quarter of fiscal 2005 as its
new capital structure came into play.
Net sales for the company totaled $156.0 million, a 12 percent increase over the $138.9 million reported for the same period in fiscal 2004. Profits were down because of the May 2004 recapitalization; Leiner acknowledged $79.9 million worth of recapitalization charges in the first quarter, leading to a net loss of $61.6 million.
However, the company drew attention to the fact that excluding these charges and their income tax impact, net income was marginally up from the same period last year to $4.8 million from $4.1 million.
"The first quarter of 2005 was a very positive one for Leiner", said Robert Kaminski, the company's CEO. "We closed our recapitalization on 27 May, resulting in a capital structure designed to facilitate our growth vision."
Kaminski added that each of the company's three principal product categories - store brand vitamins, minerals and supplements, over-the-counter pharmaceuticals, and contract manufacturing services - had performed well during the quarter, with OTC pharmaceuticals and contract manufacturing services experiencing solid growth.
These results must be welcome news to the firm, which has experienced a difficult few years. In February 2002, it filed for Chapter 11 bankruptcy protection after a string of losses, culminating in a negative result of $11.1 million for the final quarter of 2001.
Carson, California based Leiner claims to be America's leading manufacturer of store brand vitamins, minerals, and nutritional supplements and its second largest supplier of over-the-counter pharmaceuticals in the food, drug, mass merchant and warehouse club retail market, as measured by retail sales. The company markets its own brand of vitamins under the YourLife name.
