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Biotech / Medical : RXSD Rexall Sundown -- Ignore unavailable to you. Want to Upgrade?

To: Terry Barcus who wrote (117)	10/7/1998 6:18:00 PM
From: BARRY ALLEN	Read Replies (1) \| Respond to of 327

Wednesday October 7, 5:17 pm Eastern Time Company Press Release SOURCE: Rexall Sundown, Inc. Rexall Sundown Announces Record Fourth Quarter Sales Increase 73% and Net Income Advances 81% Fiscal Year Record Revenue Exceeds $530 Million BOCA RATON, Fla., Oct. 7 /PRNewswire/ -- Rexall Sundown, Inc. (Nasdaq: RXSD - news) announced today record results for the fourth quarter and fiscal year ended August 31, 1998. Net sales for the fourth quarter were $153.6 million, reflecting a 73% increase over $88.6 million reported in the same period of the prior year. Net income of $20.6 million for the three months just ended increased $9.2 million, or 81%, compared to last year's pro forma fourth quarter. Diluted earnings per share for the fourth quarter were $0.28 compared to $0.16 in the fourth quarter last year reflecting a 75% increase. In making the announcement, Chris Nast, the Company's Chief Executive Officer, stated, ''We once again achieved outstanding revenue and net income growth.'' Sales to retailers rose 99% and sales of Rexall Showcase International, the Company's Direct Sales division, increased 42% compared to the prior year's quarter. ''More impressive is the fact that our fourth quarter operating margins of 20.6 percent increased approximately 1.9 points, compared to the fourth quarter of 1997, during a period where we more than doubled our investment in advertising and product development,'' Mr. Nast added. For the fiscal year ended August 31, 1998, net sales increased 83% to $530.7 million from $290.6 million the previous year. Mr. Nast said, ''We continue to achieve a substantially higher sales growth rate compared to the overall nutritional industry reflecting our continued success at gaining new distribution, broadening distribution within our existing accounts, expanding our direct sales distributor base and introducing innovative new science-based products.'' The Company's Osteo Bi-Flex(TM) brand has become the second best-selling national brand supplement in the country and the Sundown(R) vitamin and Sundown(R) herbal lines remain the number one selling brands in both units and dollars in the total U.S. food, drug and mass markets. Pro forma net income for the year ended August 31, 1998 rose 86% to $69.2 million from $37.2 million in 1997. Diluted earnings per share for the 1998 fiscal year were $0.94, reflecting an increase of 77%, compared to $0.53 in 1997. Carl DeSantis, Chairman of the Board, said, ''1998 was a year of dramatic sales and income growth for the Company supported by record performance throughout the organization.'' The Company invested over $30 million in 1998, upgrading its infrastructure through the installation of new manufacturing and packaging equipment, a new enterprise-wide computer system and new administrative facilities. ''These investments coupled with the recently authorized share repurchase program reflects our continued confidence in the Company, its future growth potential and our positive outlook regarding the long-term fundamentals of the vitamin and nutritional supplement industry. Our employees and distributors, led by an experienced and expanded management team, continue to exhibit an outstanding passion and an entrepreneurial spirit that will help us not only maintain, but broaden, our leadership position in the industry,'' Mr. DeSantis added.