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Non-Tech : GNCI General Nutrition -- Ignore unavailable to you. Want to Upgrade?

To: bruce who wrote (72)	5/18/1999 3:10:00 PM
From: Roger Bodine	Respond to of 110

05/18 13:48 BancBoston Robertson Stephens Reiterates Buy Rating on GNCI GNCI.O> BancBoston Robertson Stephens Reiterates Buy Rating on GNCI SAN FRANCISCO, May 18 /PRNewswire/ -- The following is being issued by BancBoston Robertson Stephens, a member of the National Association of Securities Dealers, CRD number 41271: BancBoston Robertson Stephens managing director and senior specialty retailing analyst Janet Joseph Kloppenburg today reiterated her Buy rating on General Nutrition Companies, Inc. (Nasdaq: GNCI). GNC is the only nationwide specialty retailer of vitamin and mineral supplements, sports nutrition products and herbs, and is also a leading provider of personal care and other health-related products. "We are reiterating our Buy rating on GNC as we believe the stock has strong momentum and is a great value play for investors," said Kloppenburg. "The company reported first quarter 1999 earnings per share of $0.25, slightly below our $0.26 earnings per share estimate, while first quarter revenues increased 2.7 percent to $336.4 million, ahead of our $333.0 million estimate. "With the stock trading at 13.1 times and 10.5 times our fiscal 1999 and fiscal 2000 earnings per share estimate of $1.37 and $1.70, respectively, we continue to recommend purchase," said Kloppenburg. "We believe GNC's strong brand positioning, coupled with Rite-Aid's credibility in their in-store joint venture and the Internet scheduled October launch, should capture considerable market share gains and drive earnings per share upside to our current estimates." Clients interested in receiving more information should contact their salesperson at 415-781-9700. BancBoston Robertson Stephens is a leading international investment banking firm focused on growth companies. The firm's 55 equity and high yield research analysts cover more than 600 companies. Additional information is available upon request. The information contained herein is not a complete analysis of every material fact respecting any company, industry or security. Although opinions and estimates expressed herein reflect the current judgment of BancBoston Robertson Stephens, the information upon which such opinions and estimates are based is not necessarily updated on a regular basis; when it is, the date of the change in estimate will be noted. In addition, opinions and estimates are subject to change without notice. This Report contains forward-looking statements, which involve risks and uncertainties. Actual results may differ significantly from the results described in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in "Investment Risks." BancBoston Robertson Stephens from time to time performs corporate finance or other services for some companies described herein and may occasionally possess material, nonpublic information regarding such companies. This information is not used in the preparation of the opinions and estimates herein. While the information contained in this Report and the opinions contained herein are based on sources believed to be reliable, BancBoston Robertson Stephens has not independently verified the facts, assumptions and estimates contained in this Report. Accordingly, no representation or warranty, expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information and opinions contained in this Report. BancBoston Robertson Stephens, its managing directors, its affiliates, and/or its employees may have an interest in the securities of the issue(s) described and may make purchases or sales while this report is in circulation. BancBoston Robertson Stephens International Ltd. is regulated by the Securities and Futures Authority in the United Kingdom. This publication is not meant for private customers. The securities discussed herein are not FDIC insured, are not deposits or other obligations or guarantees of BankBoston N.A., and are subject to investment risk, including possible loss of any principal amount invested. SOURCE BancBoston Robertson Stephens -0- 05/18/99 /CONTACT: press only, Elizabeth Keys, 202-326-1763, for BancBoston Robertson Stephens/ /Company News On-Call: prnewswire.com or fax, 800-758-5804, ext. 110914/ /Web site: rsco.com -- SFTU089 -- 2810 05/18/99 13:33 EDT prnewswire.com Copyright PR Newswire 1998. All rights reserved.

To: bruce who wrote (72)	5/18/1999 3:12:00 PM
From: Roger Bodine	Read Replies (1) \| Respond to of 110

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 prnewswire.com Copyright PR Newswire 1998. All rights reserved.