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P. LEINER NUTRITIONAL PRODUCTS CORP. REPORTS THIRD QUARTER RESULTS

 P. LEINER NUTRITIONAL PRODUCTS CORP. REPORTS THIRD QUARTER RESULTS
 TORRANCE, Calif., Jan. 28 /PRNewswire/ -- P. Leiner Nutritional Products Corp. (AMEX: PLI) had slightly higher sales in its third quarter which ended Dec. 31, 1991, but income was sharply reduced, reflecting, in part, expenses related to the proposed sale of the company.
 For the three-month period, net income was $672,000, equal to 13 cents per share, vs. $1,582,000, or 30 cents per share, a year earlier. During the most recent quarter, non-operating expenses totaling $587,000 were incurred in respect of investment banking, legal and other advisory fees in connection with the proposed sale of the company. These expenses, which are expected to be non-deductible for tax purposes, reduced net income by 11 cents per share. Net sales for the quarter were $36,378,000, 1 percent higher than a year ago.
 For the first nine months, net income was $2,506,000, equal to 47 cents per share, compared with $3,365,000 or 64 cents per share in the first three quarters of last fiscal year. Last year's results included a non-recurring credit of $300,000 pre-tax which added 3 cents per share to net income. Net sales for the nine months were $98,340,000, slightly ahead of the same period last year.
 Michael Leiner, chairman and chief executive officer, said: "Sales of the company's over-the-counter, non-prescription drug products, including those manufactured by our recently acquired Classic Pharmaceuticals subsidiary, continued to show strong growth. However, sales of vitamins and nutritional supplements remained below last year's level.
 "Operating profit margin was reduced due to the effect of increased raw material costs, as well as a lower proportion of branded products in our sales mix.
 "We expect sales to strengthen in the fourth quarter as we commence shipments to a number of new customers and begin market testing our new Bodycology(TM) line of natural body-care products.
 "As to the previously announced agreement for the sale of the company to PLI Investors Inc., the corporation formed by AEA Investors Inc. with the support of the senior management of the company, we plan to mail a proxy statement to our shareholders in March for a vote on the matter in April. Under the proposed transaction, the public shareholders would receive $15.00 per share in cash."
 P. Leiner Nutritional Products Corp. is a leading U.S. manufacturer and marketer of vitamins, over-the-counter drugs and other health and beauty care products.
 P. LEINER NUTRITIONAL PRODUCTS CORP.
 Consolidated Income Statement Data
 (In thousands, except per share data and percentages)
 (Unaudited)
 Three months ended Dec. 31,
 1991 1990 Percent change
 Net sales $36,378 $36,007 +1
 Cost of products sold 25,006 24,379 ---
 Gross profit 11,372 11,628 -2
 Expenses:
 Marketing, selling & distribution 6,498 6,454 ---
 General & administrative 2,687 2,418 ---
 Non-recurring credit - product
 recall --- --- ---
 Interest expense, net 191 199 ---
 Non-recurring expense -
 evaluation of merger(a) 587 --- ---
 Total expenses 9,963 9,071 +10
 Income before taxes 1,409 2,557 -45
 Provision for income taxes 737 975 ---
 Net income $672 $1,582 -58
 Net income per share $.13 $.30 -57
 Average shares outstanding 5,340 5,259 ---
 Nine months ended Dec. 31,
 1991 1990 Percent change
 Net sales $98,340 $97,968 0
 Cost of products sold 65,882 66,337 ---
 Gross profit 32,458 31,631 +3
 Expenses:
 Marketing, selling & distribution 18,720 18,029 ---
 General & administrative 7,884 7,555 ---
 Non-recurring credit - product
 recall --- (300) ---
 Interest expense, net 751 909 ---
 Non-recurring expense - evaluation
 of merger(a) 587 --- ---
 Total expenses 27,942 26,193 +7
 Income before taxes 4,516 5,438 -17
 Provision for income taxes 2,010 2,073 ---
 Net income $2,506 $3,365 -26
 Net income per share $.47 $.64 -27
 Avgerage shares outstanding 5,319 5,253 ---
 (a) This expense consists of investment banking, legal and other advisory fees incurred in connection with the decision of the company's majority shareholder to dispose of its shareholding in the company. In December, the board of directors unanimously approved the sale of the company by means of a merger which will be subject to shareholder approval.
 -0- 1/28/92
 /CONTACT: Michael Leiner, CEO of P. Leiner Nutritional Products, 310-328-9610/
 (PLI) CO: P. Leiner Nutritional Products Corp. ST: California IN: SU: ERN


EH-KJ -- LA011 -- 4267 01/28/92 12:55 EST
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