05/17 17:00 General Nutrition Reports First Quarter
Results <GNCI.O>
General Nutrition Reports First Quarter Results
Rite Aid Alliance Ahead of Schedule
PITTSBURGH, May 17 /PRNewswire/ -- Pittsburgh-based General Nutrition
Companies, Inc. (Nasdaq: GNCI) today reported diluted earnings for the first
fiscal quarter ended May 1, 1999 of $0.25 per share vs $0.36 for the quarter a
year ago. Consolidated revenue grew by 3% to $336.4 million for the quarter,
reflecting only two Gold Card promotions in this years quarter versus three in
the same period last year.
Comparable store sales decreased 1.97% in the quarter for Company-owned
GNC domestic locations. Comparable store sales for the quarter rose 2.1%
in domestic franchise locations. The Company opened 104 new U.S. based
stores, (43 company-owned and 61 franchised) as well as 19 new
international locations, (7 company-owned and 12 franchised).
William E. Watts, President and CEO, said, "GNC has made the necessary
changes in pricing strategy to strengthen and maintain our leadership
position in the dietary supplement industry, both as the largest specialty
retailer and the largest manufacturer of supplements. We have refocused the
Company on our core strengths and we are very excited about the progress
made to date in the implementation of our strategic alliance with Rite Aid. All
aspects of the program are on track or ahead of schedule."
General Nutrition Companies, Inc., which is based in Pittsburgh,
Pennsylvania is the only nationwide specialty retailer of vitamin and mineral
supplements, sports nutrition and herbal products and is also a leading
provider of personal care and other health related products. The Company's
products are sold through a network of 4,203 retail stores operating under the
General Nutrition Centers, Health & Diet Centre, GNC Live Well of which
2,726 are Company-owned and 1,477 are franchised. GNC stores are located
in all 50 States, Puerto Rico and 25 international markets. GENERAL
NUTRITION COMPANIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited) 12 Weeks Ended
May 1, April 25,
1999 1998
Net revenue $336,357 $327,617
Cost of sales, including costs of
warehousing, distribution and occupancy 222,088 195,852
Selling, general and administrative 75,844 77,572
Operating earnings 38,425 54,193 Interest expense 11,802 5,259
Earnings before income taxes 26,623 48,934
Income taxes 9,851 18,696
Net earnings $16,772 $30,238
Basic earnings per share $0.25 $0.37
Basic weighted average common shares 67,842 82,424
Diluted earnings per share $0.25 $0.36
Diluted weighted average common shares 68,256 84,700
Supplemental data:
Operating earnings $38,425 $54,193
Depreciation expense 12,024 9,451
Amortization expense 3,100 2,738
EBITDA $53,549 $66,382 SOURCE General Nutrition Companies, Inc.
-0- 05/17/99
/CONTACT: Media, Greg Miller, 914-834-1868, or Investors, Edwin J.
Kozlowski, 412-288-4661, for General Nutrition Companies/
/Company News On-Call: prnewswire.com or
fax, 800-758-5804, ext. 352050/ -- PHM065 -- 1900 05/17/99 16:30 EDT
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