Vitamin Village, Inc. - Page 21




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          characteristics during the fiscal years at issue are set out                
          below:                                                                      

                             Ratio of                  Net                            
                              gross        Net        income/                         
                             profits     income/     loss as a   Return on            
            Guideline co.    to sales     loss      percentage    equity              
               and year     (percent)   (million)    of sales    (percent)            
          NBTY, Inc.                                                                  
          1995                  40      $5.4           3.2      6.6                   
          1996                  49      9.5            5.0      10.4                  
          National Health                                                             
          1995                  53        (0.5)     -15.7       -17.5                 
          1996                  9         (2.9)     -66.5       -86.6                 
          Natural                                                                     
          1995                  29         2.0      5.4         15.3                  
          1996                  28         3.2      6.8         18.18                 
          Nutritional 21                                                              
          1995                  73         0.5      4.1         4.5                   
          1996                  61        (4.4)     -27.7       -25.9                 
          Reliv’                                                                      
          1995                  78      1              3.4      18.5                  
                     1996       38      (10)        -31.2       -188.1                
          Average    1995       55        1.68      0.08        5.9                   
          Average    1996       37       (0.92)     -22.72      -54.4                 
               Fourth, Mr. Hakala stated a CEO may be entitled to increased           
          compensation during a year when his or her company earns higher             
          profits.  He opined that petitioner was more profitable than all            
          five companies in terms of the ratio of net income to sales (net            
          margin).  Petitioner’s net margins for the fiscal years at issue            









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