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General Nutrition Centers, Inc. Reports Third Quarter 2008 Financial Results

ace under-performing


-- economic, political and other risks associated with our international


-- our failure to keep pace with the demands of our customers for new

products and services;

-- the lack of long-term experience with human consumption of some of our

products with innovative ingredients;

-- disruptions in our manufacturing system or losses of manufacturing


-- increases in the frequency and severity of insurance claims,

particularly for claims for which we are self-insured;

-- loss or retirement of key members of management;

-- increases in the cost of borrowings and unavailability of additional

debt or equity capital;

-- the impact of our substantial indebtedness on our operating income and

our ability to grow;

-- the failure to adequately protect or enforce our intellectual property

rights against competitors;

-- changes in applicable laws relating to our franchise operations; and

-- our inability to expand our franchise operations to attract new


Results of Operations

(Dollars in millions and percentages expressed as a percentage of total

net revenues)


Three Months Ended September 30,

2008 2007


Retail $298.8 72.1% $289.4 73.2%

Franchise 67.5 16.3% 65.8 16.7%

Manufacturing / Wholesale 47.9 11.6% 40.1 10.1%

Total net revenues 414.2 100.0% 395.3 100.0%

Operating expenses:

Cost of sales, including

warehousing, distribution and

occupancy costs

SOURCE General Nutrition Centers, Inc.
Copyright©2008 PR Newswire.
All rights reserved

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