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8/14/2019 Shiff Nutrition September 2009
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CanaccordAdamsHealthyLivingConferenceCanaccordAdamsHealthyLivingConference
September23,2009September23,2009
CanaccordAdamsHealthyLivingConferenceCanaccordAdamsHealthyLivingConference
September
23,
2009September
23,
2009
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CanaccordAdamsHealthyLivingConferenceCanaccordAdamsHealthyLivingConference
September23,2009September23,2009
SafeHarborStatementSafeHarborStatement
Thispresentation
contains
forward
looking
statements
within
the
meaning
of
Section
27A
oftheSecuritiesActof1933andSection21EoftheSecuritiesExchangeActof1934that
arebasedonmanagementsbeliefsandassumptions,currentexpectations,estimates,
andprojections.Thesestatementsaresubjecttoknownandunknownrisksand
uncertainties,certain
of
which
are
beyond
the
companys
ability
to
control
or
predict,
and,therefore,actualresultsmaydiffermaterially.Anyforwardlookingstatementsare
madepursuanttothePrivateSecuritiesLitigationReformActof 1995and,assuch,speak
onlyasofthedatehereof.SchiffNutritiondisclaimsanyobligationtoupdateany
forward
looking
statements
whether
as
a
result
of
new
information,
future
events
or
otherwise.Youarecautionednottoplaceunduerelianceontheseforwardlooking
statements.
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CanaccordAdamsHealthyLivingConferenceCanaccordAdamsHealthyLivingConference
September23,2009September23,2009
CompanyBackgroundCompanyBackground
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CanaccordCanaccordAdamsHealthyLivingConferenceAdamsHealthyLivingConference
September23,2009September23,2009
SchiffNutritionInternationalMissionSchiffNutritionInternationalMission
Develop and provide high qualitybranded supplements and other
alternatives that promote
health and wellness
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CanaccordCanaccordAdamsHealthyLivingConferenceAdamsHealthyLivingConference
September23,2009September23,2009
Schiffrankedintop10U.S.supplementcompanies*Schiffrankedintop10U.S.supplementcompanies*
Products:
Products:
400+SKUPortfolio
HighQuality,NaturalIngredientformulas
Tablets,Capsules,Softgels,NutritionBars
Locations:Locations:
SaltLakeCityHeadquartersfacility(Openedin'97)
Bentonville,ARsalesofficeservicingWalMart/Sam's
BeijingSourcing/QAoffice
Employees:Employees:
Schiffemploys486people 257management,sales,purchasing,
logisticsand
administration
229manufacturing
*Source: Nutriti on Business Journal (excludes MLM)
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CanaccordCanaccordAdamsHealthyLivingConferenceAdamsHealthyLivingConference
September23,2009September23,2009
CompanyHistoryCompanyHistory
2007:
Net cash balance of$80M; $1.50/share
special dividenddeclared1989:
Weider Health & Fitnessestablishes three
principal businessdivisions (Sporting
Goods, Nutrition andPublications)
Schiff Brand acquired
1998:
Debt peaks at$133M
1940:
Joe Weiderpublishes his firstbodybuildingmagazine,starting hiscareer in sportsnutrition
1997:
Company taken public
Pain Free brandlaunched
2000:
Pain Free
namechangedto MoveFree
2005:
Divestiture program
completed,company namechanged to SNI
2006:Move FreeAdvancedintroduced
2009:Net cash balance of$57M; $0.50/sharespecial dividenddeclared
2008:Net cashbalanceof $49M(post $43millionspecial
dividend)
2009:
MegaRedintroduced
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CanaccordCanaccordAdamsHealthyLivingConferenceAdamsHealthyLivingConference
September23,2009September23,2009
Wellestablished
customer
relationships
CustomerAnalysisCustomerAnalysis
Schiffspremier
productofferings
havesolidifiedlong
standing
relationshipswith
industryleading
customers
Warehouse
Clubs
Mass
Merchandisers
Supermarkets
Drug
Stores
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CanaccordCanaccordAdamsHealthyLivingConferenceAdamsHealthyLivingConference
September23,2009September23,2009
MarketBackgroundMarketBackground
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CanaccordCanaccordAdamsHealthyLivingConferenceAdamsHealthyLivingConference
September23,2009September23,2009
MarketDynamicsMarketDynamics
*Source:Nutrition
Business
Journal
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CanaccordCanaccordAdamsHealthyLivingConferenceAdamsHealthyLivingConference
September23,2009September23,2009
U.S.DietarySupplementsMarketChannelsU.S.DietarySupplementsMarketChannels
Source:Nutrition
Business
Journal
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CanaccordCanaccordAdamsHealthyLivingConferenceAdamsHealthyLivingConference
September23,2009September23,2009
LongLong--term
Shareholder
Value
Strategyterm
Shareholder
Value
Strategy
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CanaccordCanaccordAdamsHealthyLivingConferenceAdamsHealthyLivingConference
September23,2009September23,2009
LongLong--termProfitableGrowthtermProfitableGrowth
Strengthenbrandedposition Enhanceproductsandproductlines
Supportselectedbrandswithappropriatemarketinginvestment
Introducenewproducts
Growexportbusiness
Expandprivatelabelbusiness Complementarytocorebrandedstrategy
Achievesuperior
quality
and
operational
efficiencies
Meetcompliancestandardsthroughcomprehensivequalitycontrol
Improvecostperformancewithstateoftheartmanufacturingfacility,procurementcapabilities
Support
growth
platform
with
exceptional
customer
service M&Aactivity:selectiveinterestasopportunitiessurface
Strongbalancesheet;$53millionincashequivalents atAugust31,2009
Unused$80millioncreditfacility
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CanaccordCanaccordAdamsHealthyLivingConferenceAdamsHealthyLivingConference
September23,2009September23,2009
LeveragingStrongBrandsLeveragingStrongBrands
Joint
Care
CategoryJoint
Care
Category Schiff MoveFree Innovationdrivesmarketleadingposition
Improvedconsumerexperience:
AdvancedFormula
(FY06)
SmallerTablet(FY08)
Extendedproductlinetoaddvalueandefficacy BlueBox withMSMandVitaminD(FY08)
SchiffGlucosamine
the
brand
leader
in
value
priced
segment
CardiovascularHealth:FishOilCategoryCardiovascularHealth:FishOilCategory SchiffMegaRed launchedinFY08
Providescardiovascular
benefits
Smallersize;nofishyodororaftertaste
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CanaccordCanaccordAdamsHealthyLivingConferenceAdamsHealthyLivingConference
September23,2009September23,2009
FinancialStabilityandFoundationFinancialStabilityandFoundation
AsReported
Financial
Results
(unaudited)
FY10
vs.
FY09
Strong,LiquidBalanceSheetatAugust31,2009
CashandSTSecuritiesof$53.2million(post$14.4millionspecialdividend)
Currentratio approximately5x
Nodebt
15
3MonthsEndedAugust31,
2008 2009
Net
Sales
$ 47.8M $ 48.6MGrossProfitMargin 37.4% 39.5%
IncomefromOperations $ 5.0M $ 7.0M
OperatingMargin 10.5% 14.5%
EarningsPer
Share
diluted $ 0.11 $ 0.15
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CanaccordCanaccordAdamsHealthyLivingConferenceAdamsHealthyLivingConference
September23,2009September23,2009
HistoricalConsolidatedFinancialResultsHistoricalConsolidatedFinancialResults
($inmillions,exceptpersharedata)($inmillions,exceptpersharedata) ASREPORTED
FY08 FY09
NetSales $ 176.9 $ 190.7
GrossProfitMargin 42.1% 35.1%
IncomefromOperations $ 16.4 $ 15.2
Operating
Margin 9.2% 8.0%EarningsPerShare diluted $ 0.40 $ 0.36
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CanaccordCanaccordAdamsHealthyLivingConferenceAdamsHealthyLivingConference
September23,2009September23,2009
ExperiencedmanagementwithproventrackrecordExperiencedmanagementwithproventrackrecord
Eric WeiderChairman of the Boardof Directors
11+ years CEO & President of WeiderHealth & Fitness, Schif fs majorityshareholder
Bruce Wood CEO, President &Director
10+ years Schiff , 24 years prior experiencein food business (Nabisco, Inc.)
Joe BatyCFO & Executive VicePresident
12+ years Schiff , 13 years prior experienceas CPA & partner (KPMG LLP)
Tom ElitharpOperations & SupportServices, Executive
Vice President
11+ years Schiff , 18 years prior experiencein food business (Welch Foods Inc.)
OtherVPs 15FunctionalExperts 8yearsaverageSchiffexperience
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