LAKE SUCCESS, N.Y.,
Feb. 4, 2014 /PRNewswire/ -- The
Hain Celestial Group, Inc. (NASDAQ: HAIN), a leading organic
and natural products company providing consumers with A Healthier
Way of Life™, today reported record results for its second quarter
ended December 31, 2013.
(Logo:
http://photos.prnewswire.com/prnh/20130502/NY06743LOGO )
Performance Highlights
- Record quarterly net sales of $535
million, an 18% increase
- Record second quarter GAAP earnings per diluted share of
$0.84, a 25% increase, which includes
$0.03 earnings per diluted share from
discontinued operations
- Record quarterly adjusted earnings per diluted share of
$0.87, an 18% increase
- GAAP operating income of $64
million, 12.0% of net sales; adjusted operating income of
$67 million, 12.5% of net sales
- Adjusted EBITDA of $79 million,
14.9% of net sales
"We are pleased with our record second quarter results, the
highest in the Company's history and our twelfth consecutive
quarter of year-over-year double digit sales and adjusted earnings
growth. We delivered strong sales driven by expanded
distribution and brand contribution as well as robust operating
margin expansion as we leveraged our selling, general and
administrative expenses with a higher sales base. Our gross
margin was impacted in the quarter by higher commodity costs,
product mix and a shift in trade spending to point of sale
activities, which are reported against net sales," said
Irwin D. Simon, Founder, President
and Chief Executive Officer of Hain Celestial. "With a good
start to our third quarter, we expect to deliver a strong second
half in sales and profitability as consumption trends reflect
consumers seeking out our organic and natural products.
We will continue to focus on driving profitable sales and
sustained earnings growth over the next several years by expanding
distribution of our brands, including our newly acquired Tilda®
brand, across geographies and sales channels to capitalize on the
tremendous white space opportunities in various retail
channels."
Second Quarter Fiscal 2014
The Company reported record net sales of $535 million in the second quarter, an 18%
increase, compared to net sales of $455
million in the second quarter of fiscal year 2013.
Hain Celestial US reported record second quarter net sales of
$328 million, a 17% increase. In the
United Kingdom, Hain Daniels net sales were $146 million, a 22% increase, and the Rest of
World segment reported net sales of $61
million, a 12% increase. The Company had strong brand
contribution across various sales channels led by double-digit
growth of nineteen brands and mid to high single digit growth of
five brands, including Spectrum®, MaraNatha®, The Greek Gods®,
Garden of Eatin'®, Arrowhead Mills®, Celestial Seasonings®, Jason®,
Alba Botanica®, Linda McCartney®, Cully & Sully®, Danival® and
Europe's Best®. The growth
in net sales also resulted from sales of Hartley's®, Robertson's®,
Sun-Pat®, Frank Cooper's®, Gale's®
and BluePrint® brands, acquired during the second quarter of fiscal
year 2013, and Ella's Kitchen® brand, acquired in the fourth
quarter of fiscal year 2013.
The Company earned net income of $41
million compared to $32
million in the prior year second quarter, a 30% increase,
and reported earnings per diluted share of $0.84, which includes $0.03 earnings per diluted share from
discontinued operations, compared to $0.67, a 25% increase compared to last
year. Adjusted net income was $43
million compared to $35
million in the prior year second quarter, a 23% increase,
and adjusted earnings per diluted share was $0.87 compared to $0.74, an 18% increase compared to last
year. Adjusted amounts exclude those items detailed in Fiscal
Year 2014 Guidance.
Recent Tilda Acquisition
"We are excited to expand our worldwide better-for-you product
portfolio into premium Basmati rice and specialty rice products
with the strategic acquisition of Tilda Limited ("Tilda"), which we
completed in mid-January. After working with the Tilda team
for just a few weeks, we look forward to their future contributions
and are pleased with the performance of the Tilda brand," commented
Irwin Simon. "We plan to
expand the growth of the Tilda® brand by increasing sales of its
Basmati and ready-to-heat rice product offerings through our
existing extensive distribution platform in the United States, Canada and Europe. In addition, we will
look to expand the distribution of our global brands including
Earth's Best®, Ella's Kitchen®, Celestial Seasonings®, Terra®, Rice
Dream® and Almond Dream®, into Tilda's existing, fast-growing
markets in the Middle East,
North Africa and India."
Fiscal Year 2014 Guidance
The Company updated its annual net sales and earnings guidance
for fiscal year 2014 for the Tilda acquisition completed on
January 13, 2014:
- Total net sales range of $2.115 billion
to $2.145 billion for fiscal year 2014; an increase of
approximately 22% to 24% as compared to fiscal year 2013.
- Earnings range of $3.07 to $3.15
per diluted share for fiscal year 2014; an increase of 21% to 25%
as compared to fiscal year 2013.
Guidance is provided for continuing operations on a non-GAAP
basis and excludes acquisition-related fees and expenses and
contingent consideration, integration and restructuring charges,
factory start-up and co-pack contract termination costs, certain
litigation expenses, unrealized currency gains and losses and
disposal of an investment held for sale that have been or may be
incurred during the Company's fiscal year 2014, which the Company
will continue to identify as it reports its future financial
results. Guidance excludes the impact of any future
acquisitions.
Segment Results
The Company's operations are organized into geographic
segments: United States,
United Kingdom and Rest of World
(comprised of Canada and
Continental Europe).
The following is a summary of second quarter and six month
results by reportable segment:
(dollars in
thousands)
|
|
United
States
|
|
United
Kingdom
|
|
Rest of
World
|
|
Corporate/
Other
|
|
Non-GAAP
Adjustments
(1)
|
|
Adjusted
(1)
|
Net sales - Three
months ended 12/31/13
|
|
$
327,725
|
|
$
146,051
|
|
$
61,103
|
|
$
-
|
|
$
-
|
|
$
534,879
|
Net sales - Three
months ended 12/31/12
|
|
$
280,415
|
|
$
120,167
|
|
$
54,737
|
|
$
-
|
|
$
-
|
|
$
455,319
|
% change
|
|
16.9%
|
|
21.5%
|
|
11.6%
|
|
|
|
|
|
17.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) - Three months ended 12/31/13
|
|
$
56,510
|
|
$
12,001
|
|
$
3,996
|
|
$
(8,194)
|
|
$
2,551
|
|
$
66,864
|
Operating income
(loss) - Three months ended 12/31/12
|
|
$
47,582
|
|
$
12,076
|
|
$
4,268
|
|
$
(12,682)
|
|
$
3,775
|
|
$
55,019
|
% change
|
|
18.8%
|
|
-0.6%
|
|
-6.4%
|
|
|
|
|
|
21.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
margin - Three months ended 12/31/13
|
|
17.2%
|
|
8.2%
|
|
6.5%
|
|
|
|
|
|
12.5%
|
Operating income
margin - Three months ended 12/31/12
|
|
17.0%
|
|
10.0%
|
|
7.8%
|
|
|
|
|
|
12.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
|
United
States
|
|
United
Kingdom
|
|
Rest of
World
|
|
Corporate/
Other
|
|
Non-GAAP
Adjustments
(1)
|
|
Adjusted
(1)
|
Net sales - Six
months ended 12/31/13
|
|
$
639,720
|
|
$
260,046
|
|
$
112,597
|
|
$
-
|
|
$
-
|
|
$
1,012,363
|
Net sales - Six
months ended 12/31/12
|
|
$
533,062
|
|
$
178,115
|
|
$
103,949
|
|
$
-
|
|
$
-
|
|
$
815,126
|
% change
|
|
20.0%
|
|
46.0%
|
|
8.3%
|
|
|
|
|
|
24.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) - Six months ended 12/31/13
|
|
$
102,876
|
|
$
13,912
|
|
$
6,910
|
|
$
(19,613)
|
|
$
5,796
|
|
$
109,881
|
Operating income
(loss) - Six months ended 12/31/12
|
|
$
84,099
|
|
$
11,050
|
|
$
8,674
|
|
$
(20,303)
|
|
$
4,416
|
|
$
87,936
|
% change
|
|
22.3%
|
|
25.9%
|
|
-20.3%
|
|
|
|
|
|
25.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
margin - Six months ended 12/31/13
|
|
16.1%
|
|
5.3%
|
|
6.1%
|
|
|
|
|
|
10.9%
|
Operating income
margin - Six months ended 12/31/12
|
|
15.8%
|
|
6.2%
|
|
8.3%
|
|
|
|
|
|
10.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
|
Webcast
Hain Celestial will host a conference call and webcast at
4:30 PM Eastern Time today to review
its second quarter fiscal year 2014 results. The conference
call will be webcast and available under the Investor Relations
section of the Company's website at www.hain.com.
The Hain Celestial Group, Inc.
The Hain Celestial Group (NASDAQ: HAIN), headquartered in
Lake Success, NY, is a leading
organic and natural products company in North America and Europe. Hain Celestial
participates in many natural categories with well-known brands that
include Celestial Seasonings®, Earth's Best®, Ella's Kitchen®,
Terra®, Garden of Eatin'®, Sensible Portions®, Health Valley®,
Arrowhead Mills®, MaraNatha®, SunSpire®, DeBoles®, Gluten Free
Café™, Hain Pure Foods®, Spectrum®, Spectrum Essentials®, Walnut
Acres Organic®, Imagine®, Almond Dream®, Rice Dream®, Soy Dream®,
WestSoy®, The Greek Gods®, BluePrint®, Yves Veggie Cuisine®,
Europe's Best®, Cully &
Sully®, New Covent Garden Soup Co.®, Johnson's Juice Co.®,
Farmhouse Fare®, Hartley's®, Sun-Pat®, Gale's®, Robertson's®,
Frank Cooper's®, Linda McCartney®,
Lima®, Danival®, GG UniqueFiber®, Tilda®, Akash Basmati®, Abu
Shmagh®, JASON®, Avalon Organics®, Alba Botanica® and Queen
Helene®. Hain Celestial has been providing A Healthier Way of
Life™ since 1993. For more information, visit
www.hain.com.
Safe Harbor Statement
This press release contains forward-looking statements under the
Private Securities Litigation Reform Act of 1995. Words such
as "plan," "continue," "expect," "expected," "anticipate,"
"estimate," "believe," "may," "potential," "can," "positioned,"
"should," "future," "look forward," "seek" and similar expressions,
or the negative of those expressions, may identify forward-looking
statements. These forward-looking statements include the
Company's expectations relating to (i) the second half of the
Company's fiscal year; (ii) the Company's growth strategy; (iii)
the acquisition of Tilda and the potential for growth therefrom;
and (iv) the Company's guidance for fiscal year 2014.
Forward-looking statements involve known and unknown risks and
uncertainties, which could cause the Company's actual results to
differ materially from those described in the forward-looking
statements. These factors include, but are not limited to the
Company's ability to achieve its guidance for net sales and
earnings per diluted share in fiscal year 2014 given the economic
environment in the U.S. and other markets that it sells products as
well as economic, political and business conditions generally and
their effect on the Company's customers and consumers' product
preferences, and the Company's business, financial condition and
results of operations; changes in estimates or judgments related to
the Company's impairment analysis of goodwill and other intangible
assets, as well as with respect to the Company's valuation
allowances of its deferred tax assets; the Company's ability to
implement its business and acquisition strategy; the ability of the
Company's joint venture investments to successfully execute their
business plans; the Company's ability to realize sustainable growth
generally and from investments in core brands, offering new
products and its focus on cost containment, productivity, cash flow
and margin enhancement in particular; the Company's ability to
effectively integrate its acquisitions; the Company's ability to
successfully consummate its proposed divestitures; the effects on
the Company's results of operations from the impacts of foreign
exchange; competition; the success and cost of introducing new
products as well as the Company's ability to increase prices on
existing products; availability and retention of key personnel; the
Company's reliance on third party distributors, manufacturers and
suppliers; the Company's ability to maintain existing customers and
secure and integrate new customers; the Company's ability to
respond to changes and trends in customer and consumer demand,
preferences and consumption; international sales and operations;
changes in fuel, raw material and commodity costs; changes in, or
the failure to comply with, government regulations; the
availability of organic and natural ingredients; the loss of one or
more of the Company's manufacturing facilities; the ability to use
the Company's trademarks; reputational damage; product liability;
seasonality; litigation; the Company's reliance on its information
technology systems; and the other risks detailed from time-to-time
in the Company's reports filed with the SEC, including the
annual report on Form 10-K for the fiscal year ended June 30, 2013. As a result of the foregoing
and other factors, no assurance can be given as to future results,
levels of activity and achievements and neither the Company nor any
person assumes responsibility for the accuracy and completeness of
these statements.
Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP
financial measures, including adjusted net income, adjusted
operating margin, adjusted operating income, adjusted earnings per
diluted share, earnings before interest, taxes, depreciation, and
amortization ("EBITDA"), adjusted EBITDA and operating free cash
flow. The reconciliations of these non-GAAP financial measures to
the comparable GAAP financial measures are presented in the tables
"Reconciliation of GAAP Results to Non-GAAP Measures" for the three
months and six months ended December 31,
2013 and 2012 and in the paragraphs below. Management
believes that the non-GAAP financial measures presented provide
useful additional information to investors about current trends in
the Company's operations and are useful for period-over-period
comparisons of operations. These non-GAAP financial measures
should not be considered in isolation or as a substitute for the
comparable GAAP measures. In addition, these non-GAAP
measures may not be the same as similar measures provided by other
companies due to potential differences in methods of calculation
and items being excluded. They should be read only in
connection with the Company's Consolidated Statements of Income
presented in accordance with GAAP.
The Company defines EBITDA as net income (a GAAP measure) before
income taxes, net interest expense, depreciation and amortization,
impairment of long lived assets, equity in the earnings of
non-consolidated affiliates and stock based compensation. Adjusted
EBITDA is defined as net income before income taxes, net interest
expense, depreciation and amortization, impairment of long lived
assets, equity in the earnings of non-consolidated affiliates,
stock based compensation and acquisition-related expenses,
including integration and restructuring charges. The Company's
management believes that these presentations provide useful
information to management, analysts and investors regarding certain
additional financial and business trends relating to its results of
operations and financial condition. In addition, management
uses these measures for reviewing the financial results of the
Company as well as one of the criteria for evaluating
performance-based executive compensation.
For the three months and six months ended December 31, 2013 and 2012, EBITDA and adjusted
EBITDA were calculated as follows:
|
|
3 Months
Ended
|
6 Months
Ended
|
(dollars in
thousands)
|
12/31/2013
|
12/31/2012
|
12/31/2013
|
12/31/2012
|
Net Income
|
$41,231
|
$31,622
|
$68,886
|
$48,008
|
Income
taxes
|
19,748
|
16,106
|
28,499
|
24,442
|
Interest expense,
net
|
5,209
|
4,365
|
10,494
|
8,114
|
Depreciation and
amortization
|
11,355
|
8,984
|
21,808
|
16,993
|
Equity in earnings of
affiliates
|
(1,473)
|
(596)
|
(2,045)
|
142
|
Stock based
compensation
|
3,400
|
3,709
|
6,637
|
6,601
|
EBITDA
|
79,470
|
64,190
|
134,279
|
104,300
|
|
|
|
|
|
Acquisition related
fees and expenses, integration and restructuring charges
|
|
|
|
|
(19)
|
3,775
|
3,002
|
4,415
|
Adjusted
EBITDA
|
$79,451
|
$67,965
|
$137,281
|
$108,715
|
The Company defines Operating Free Cash Flow as cash provided
from or used in operating activities (a GAAP measure) less capital
expenditures. The Company views operating free cash flow as
an important measure because it is one factor in evaluating the
amount of cash available for discretionary investments.
For the six months ended December 31,
2013 and 2012, operating free cash flow was calculated as
follows:
|
6
Months
Ended
12/31/2013
|
6
Months
Ended
12/31/2012
|
(dollars in
thousands)
|
|
Cash flow provided by
operating activities
|
$73,488
|
$61,182
|
Purchases of
property, plant and equipment
|
(20,822)
|
(24,931)
|
|
|
|
Operating free cash
flow
|
$52,666
|
$36,251
|
Operating free cash flow increased to $53
million for the six months ended December 31, 2013 from $36
million in the year ago six month period as a result of the
increase in our net income and lower capital expenditures.
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
June
30,
|
|
|
|
2013
|
|
2013
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
67,533
|
|
$
41,263
|
|
Trade receivables,
net
|
252,386
|
|
233,641
|
|
Inventories
|
262,949
|
|
250,175
|
|
Deferred income
taxes
|
17,521
|
|
17,716
|
|
Other current
assets
|
36,527
|
|
32,377
|
|
|
Total current
assets
|
636,916
|
|
575,172
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
255,257
|
|
235,841
|
Goodwill,
net
|
920,369
|
|
876,106
|
Trademarks and other
intangible assets, net
|
489,918
|
|
498,235
|
Investments and joint
ventures
|
41,329
|
|
46,799
|
Other
assets
|
28,529
|
|
26,341
|
|
|
Total
assets
|
$
2,372,318
|
|
$
2,258,494
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
197,716
|
|
$
184,996
|
|
Accrued expenses and
other current liabilities
|
66,656
|
|
76,657
|
|
Current portion of
long-term debt
|
181
|
|
12,477
|
|
|
Total current
liabilities
|
264,553
|
|
274,130
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
627,521
|
|
653,464
|
Deferred income
taxes
|
115,797
|
|
114,395
|
Other noncurrent
liabilities
|
13,327
|
|
14,950
|
|
|
Total
liabilities
|
1,021,198
|
|
1,056,939
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
497
|
|
490
|
|
Additional paid-in
capital
|
801,091
|
|
768,774
|
|
Retained
earnings
|
558,653
|
|
489,767
|
|
Accumulated other
comprehensive income
|
30,957
|
|
(27,251)
|
|
Subtotal
|
1,391,198
|
|
1,231,780
|
|
Treasury
stock
|
(40,078)
|
|
(30,225)
|
|
|
Total stockholders'
equity
|
1,351,120
|
|
1,201,555
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
2,372,318
|
|
$
2,258,494
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Income
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Six Months Ended
December 31,
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
534,879
|
|
$
455,319
|
|
$
1,012,363
|
|
$
815,126
|
Cost of
sales
|
|
391,802
|
|
324,556
|
|
750,163
|
|
589,151
|
Gross
profit
|
|
143,077
|
|
130,763
|
|
262,200
|
|
225,975
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
75,237
|
|
72,903
|
|
148,824
|
|
132,565
|
Amortization of
acquired intangibles
|
|
3,647
|
|
2,841
|
|
7,115
|
|
5,474
|
Acquisition related
expenses including integration and restructuring charges
|
(120)
|
|
3,775
|
|
2,176
|
|
4,416
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
64,313
|
|
51,244
|
|
104,085
|
|
83,520
|
|
|
|
|
|
|
|
|
|
Interest expense and
other expenses
|
|
5,955
|
|
3,295
|
|
9,893
|
|
7,187
|
Income before income
taxes and equity in earnings of equity-method investees
|
58,358
|
|
47,949
|
|
94,192
|
|
76,333
|
Income tax
provision
|
|
19,748
|
|
16,302
|
|
28,499
|
|
24,160
|
(Income) loss of
equity-method investees, net of tax
|
|
(1,473)
|
|
(596)
|
|
(2,045)
|
|
142
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
40,083
|
|
32,243
|
|
67,738
|
|
52,031
|
Income (loss) from
discontinued operations, net of tax
|
|
1,148
|
|
(621)
|
|
1,148
|
|
(4,023)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
41,231
|
|
$
31,622
|
|
$
68,886
|
|
$
48,008
|
|
|
|
|
|
|
|
|
|
Basic net income per
share:
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
$
0.83
|
|
$
0.70
|
|
$
1.42
|
|
$
1.14
|
From discontinued
operations
|
|
0.03
|
|
(0.01)
|
|
0.02
|
|
(0.08)
|
Net income per share
- basic
|
|
$
0.86
|
|
$
0.69
|
|
$
1.44
|
|
$
1.06
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
$
0.81
|
|
$
0.68
|
|
$
1.38
|
|
$
1.11
|
From discontinued
operations
|
|
0.03
|
|
(0.01)
|
|
0.02
|
|
(0.09)
|
Net income per share
- diluted
|
|
$
0.84
|
|
$
0.67
|
|
$
1.40
|
|
$
1.02
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
48,019
|
|
45,942
|
|
47,863
|
|
45,480
|
Diluted
|
|
49,185
|
|
47,355
|
|
49,060
|
|
46,962
|
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
2013 GAAP
|
Adjustments
|
|
2013
Adjusted
|
2012
Adjusted
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
143,077
|
$
2,216
|
|
$
145,293
|
$
130,763
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
75,237
|
(455)
|
|
74,782
|
72,903
|
Amortization of
acquired intangibles
|
|
3,647
|
-
|
|
3,647
|
2,841
|
Acquisition related
(income) expenses including integration and
restructuring charges
|
(120)
|
120
|
|
-
|
-
|
|
|
|
|
|
|
|
Operating
income
|
|
64,313
|
2,551
|
|
66,864
|
55,019
|
|
|
|
|
|
|
|
Interest and other
expenses, net
|
|
5,955
|
91
|
|
6,046
|
4,619
|
Income before income
taxes and equity in earnings of equity-method
investees
|
58,358
|
2,460
|
|
60,818
|
50,400
|
Income tax
provision
|
|
19,748
|
(144)
|
|
19,604
|
16,788
|
(Income) of
equity-method investees, net of tax
|
(1,473)
|
-
|
|
(1,473)
|
(1,217)
|
Income from
continuing operations
|
|
$
40,083
|
$
2,604
|
|
$
42,687
|
$
34,829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations - basic
|
$
0.83
|
$
0.06
|
|
$
0.89
|
$
0.76
|
|
|
|
|
|
|
|
Income per share from
continuing operations - diluted
|
$
0.81
|
$
0.06
|
|
$
0.87
|
$
0.74
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
48,019
|
|
|
48,019
|
45,942
|
Diluted
|
|
49,185
|
|
|
49,185
|
47,355
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2014
|
|
FY 2013
|
|
|
Impact on Income
Before Income Taxes
|
Impact on Income
Tax
Provision
|
|
Impact on Income
Before Income Taxes
|
Impact on Income
Tax
Provision
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Factory
start-up costs
|
|
$
1,677
|
$
426
|
|
-
|
-
|
|
|
|
|
|
|
|
Acquisition
related integration and restructuring charges
|
102
|
23
|
|
-
|
-
|
|
|
|
|
|
|
|
Co-pack
contract termination costs
|
|
437
|
166
|
|
-
|
-
|
|
|
|
|
|
|
|
Cost of
sales
|
2,216
|
615
|
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation
expenses
|
|
455
|
173
|
|
-
|
-
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
455
|
173
|
|
-
|
-
|
|
|
|
|
|
|
|
Acquisition
related fees and expenses, integration and
restructuring charges
|
1,661
|
534
|
|
$
3,775
|
$
1,017
|
|
|
|
|
|
|
|
Contingent
consideration (income) expense, net
|
|
(1,781)
|
(1,117)
|
|
-
|
-
|
|
|
|
|
|
|
|
Acquisition related
(income) expenses including
integration and restructuring charges
|
(120)
|
(583)
|
|
3,775
|
1,017
|
|
|
|
|
|
|
|
Gain on
disposal of investment held for sale
|
|
(234)
|
(89)
|
|
-
|
-
|
|
|
|
|
|
|
|
Unrealized
currency impacts
|
|
(98)
|
(149)
|
|
-
|
-
|
|
|
|
|
|
|
|
Currency gain
on acquisition payment
|
|
|
|
|
(1,324)
|
(531)
|
|
|
|
|
|
|
|
Accretion of
contingent consideration
|
|
241
|
82
|
|
-
|
-
|
|
|
|
|
|
|
|
Interest and other
expenses, net
|
(91)
|
(156)
|
|
(1,324)
|
(531)
|
|
|
|
|
|
|
|
Net (income)
loss from HHO discontinued operation
|
|
-
|
|
621
|
-
|
|
|
|
|
|
|
|
After-tax (income)
loss of equity-method investees
|
-
|
-
|
|
621
|
-
|
|
|
|
|
|
|
|
Nondeductible
acquisition related transaction expenses
|
-
|
(193)
|
|
-
|
-
|
|
|
|
|
|
|
|
Income tax
provision
|
-
|
(193)
|
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
adjustments
|
$
2,460
|
$
(144)
|
|
$
3,072
|
$
486
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
December 31,
|
|
|
2013 GAAP
|
Adjustments
|
|
2013
Adjusted
|
2012
Adjusted
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
262,200
|
$
2,941
|
|
$
265,141
|
$
225,975
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
148,824
|
(679)
|
|
148,145
|
132,565
|
Amortization of
acquired intangibles
|
|
7,115
|
-
|
|
7,115
|
5,474
|
Acquisition related
(income) expenses including integration and
restructuring charges
|
2,176
|
(2,176)
|
|
-
|
-
|
|
|
|
|
|
|
|
Operating
income
|
|
104,085
|
5,796
|
|
109,881
|
87,936
|
|
|
|
|
|
|
|
Interest and other
expenses, net
|
|
9,893
|
2,172
|
|
12,065
|
8,441
|
Income before income
taxes and equity in earnings of equity-method
investees
|
94,192
|
3,624
|
|
97,816
|
79,495
|
Income tax
provision
|
|
28,499
|
3,349
|
|
31,848
|
26,565
|
(Income) of
equity-method investees, net of tax
|
|
(2,045)
|
-
|
|
(2,045)
|
(1,136)
|
Income from
continuing operations
|
|
$
67,738
|
$
275
|
|
$
68,013
|
$
54,066
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations - basic
|
|
$
1.42
|
$
0.01
|
|
$
1.42
|
$
1.19
|
|
|
|
|
|
|
|
Income per share from
continuing operations - diluted
|
|
$
1.38
|
$
0.01
|
|
$
1.39
|
$
1.15
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
47,863
|
|
|
47,863
|
45,480
|
Diluted
|
|
49,060
|
|
|
49,060
|
46,962
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2014
|
|
FY 2013
|
|
|
Impact on Income
Before Income Taxes
|
Impact on Income
Tax
Provision
|
|
Impact on Income
Before Income Taxes
|
Impact on Income
Tax
Provision
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Factory
start-up costs
|
|
$
2,143
|
$
584
|
|
-
|
-
|
|
|
|
|
|
|
|
Acquisition related
integration and restructuring charges
|
361
|
82
|
|
-
|
-
|
|
|
|
|
|
|
|
Co-pack
contract termination costs
|
|
437
|
166
|
|
-
|
-
|
|
|
|
|
|
|
|
Cost of
sales
|
2,941
|
832
|
|
-
|
-
|
|
|
|
|
|
|
|
Litigation
expenses
|
|
455
|
173
|
|
|
|
|
|
|
|
|
|
|
Expenses
related to third party sale of common stock
|
|
224
|
85
|
|
-
|
-
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
679
|
258
|
|
-
|
-
|
|
|
|
|
|
|
|
Acquisition
related fees and expenses, integration and restructuring
charges
|
3,957
|
1,314
|
|
$
4,416
|
$
1,126
|
|
|
|
|
|
|
|
Contingent
consideration (income) expense, net
|
|
(1,781)
|
(1,117)
|
|
-
|
-
|
|
|
|
|
|
|
|
Acquisition related
(income) expenses including
integration and restructuring charges
|
2,176
|
197
|
|
4,416
|
1,126
|
|
|
|
|
|
|
|
Unrealized
currency impacts
|
|
(2,417)
|
(1,047)
|
|
-
|
-
|
|
|
|
|
|
|
|
Gain on
disposal of investment held for sale
|
|
(234)
|
(89)
|
|
-
|
-
|
|
|
|
|
|
|
|
Currency gain
on acquisition payment
|
|
|
|
|
(1,254)
|
(514)
|
|
|
|
|
|
|
|
Accretion of
contingent consideration
|
|
479
|
164
|
|
-
|
-
|
|
|
|
|
|
|
|
Interest and other
expenses, net
|
(2,172)
|
(972)
|
|
(1,254)
|
(514)
|
|
|
|
|
|
|
|
Net (income)
loss from HHO discontinued operation
|
|
-
|
-
|
|
1,278
|
-
|
|
|
|
|
|
|
|
After-tax (income)
loss of equity-method investees
|
-
|
-
|
|
1,278
|
-
|
|
|
|
|
|
|
|
Discrete tax
benefit resulting from enacted tax rate change
|
-
|
3,777
|
|
-
|
1,793
|
|
|
|
|
|
|
|
Increase in
unrecognized tax benefits
|
|
-
|
(550)
|
|
-
|
-
|
|
|
|
|
|
|
|
Nondeductible
acquisition related transaction expenses
|
-
|
(193)
|
|
-
|
-
|
|
|
|
|
|
|
|
Income tax
provision
|
-
|
3,034
|
|
-
|
1,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
adjustments
|
$
3,624
|
$
3,349
|
|
$
4,440
|
$
2,405
|
|
|
|
|
|
|
|
SOURCE The Hain Celestial Group, Inc.