LAKE SUCCESS, N.Y.,
Aug. 20, 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 results for the fourth quarter and
fiscal year ended June 30, 2014.
PERFORMANCE HIGHLIGHTS
Fourth Quarter Fiscal Year 2014
- Record net sales of $583.8
million, a 26% increase
- GAAP earnings per diluted share from continuing operations of
$0.70, a 32% increase
- Adjusted earnings per diluted share from continuing operations
of $0.90, a 39% increase
- Adjusted operating income of $73.9
million, 12.7% of net sales
- Record adjusted EBITDA of $79.4
million, a 27% increase
Fiscal Year 2014
- Record net sales of $2.154
billion, a 24% increase
- GAAP earnings per diluted share from continuing operations of
$2.83, a 12% increase
- Adjusted earnings per diluted share from continuing operations
of $3.17, a 25% increase
- Adjusted operating income of $256.0
million, 11.9% of net sales
- Record adjusted EBITDA of $300.0
million, a 27% increase
- Operating free cash flow reached $143.2
million for the 12-months ended June
30, 2014
"We completed our fiscal year with record net sales by
delivering solid performance across brands and geographies, and I
am pleased with the results," said Irwin D.
Simon, Founder, President and Chief Executive Officer of
Hain Celestial. "Our US business continued to generate strong
results as momentum for organic and natural products builds across
various channels of distribution. Our UK business posted
record sales with increased profit contribution and our Rest of
World segment delivered high single digit sales growth."
Fourth Quarter 2014
Worldwide net sales for the fourth
quarter of fiscal year 2014 were a record $583.8 million, an increase of 26.0% compared to
net sales of $463.5 million in the
prior year fourth quarter. Hain Celestial US reported record
net sales of $323.0 million, a 13.2%
increase. In the United
Kingdom net sales were a record $200.5 million. The Rest of World segment
reported net sales of $60.4 million.
The Company had strong brand contribution across various
sales channels including Ella's Kitchen®, Garden of Eatin®,
Imagine®, The Greek Gods®, Sensible Portions®, Terra®, Westbrae®,
Spectrum® and Alba Botanica® in North
America and Gale's®, Natumi®, Frank
Cooper's®, SunRipe®, Hartley's®, Sun-Pat®, Linda McCartney®,
and Cully & Sully® internationally. The growth in net
sales also resulted from sales of the Tilda® and Rudi's Organic
Bakery® brands acquired earlier this year.
The Company earned income from continuing operations of
$35.7 million compared to
$25.9 million in the prior year
fourth quarter and reported earnings per diluted share from
continuing operations of $0.70
compared to $0.53 in the prior year
fourth quarter, a 32.1% increase. Adjusted income from
continuing operations was $46.0
million compared to $31.7
million, a 45.3% increase, and adjusted earnings per diluted
share from continuing operations was $0.90 compared to $0.65, a 38.5% increase, from the prior year
fourth quarter. Adjusted EBITDA reached a record $79.4 million during the fourth quarter.
Refer to Non-GAAP Financial Measures for adjustments.
Fiscal Year 2014
Worldwide net sales for fiscal year
2014 were a record $2.154 billion, an
increase of 24.2% compared to net sales of $1.735 billion in the prior year. Hain
Celestial US reported record net sales of $1.282 billion, a 17.0% increase. In the
United Kingdom, net sales were a
record $637.5 million. The Rest
of World segment net sales were a record $234.0 million. The Company had strong
brand contribution across various sales channels led by Ella's
Kitchen, BluePrint®, Garden of Eatin', The Greek Gods, Spectrum,
Bearitos®, Sensible Portions, Imagine, Hain Pure Foods®, Earth's
Best®, MaraNatha®, Arrowhead Mills® and Alba Botanica in North
America and Frank Cooper's,
Sun-Pat, Natumi, Danival®, Cully & Sully, Linda McCartney and Lima® internationally.
The growth in net sales also resulted from sales of the Tilda and
Rudi's Organic Bakery brands acquired earlier this year and the
full year contribution of Ella's Kitchen, BluePrint and UK grocery
brands acquired in fiscal year 2013.
The Company earned income from continuing operations of
$141.5 million compared to
$119.8 million in the prior year and
reported earnings per diluted share from continuing operations of
$2.83 compared to $2.52 in the prior year, a 12.3% increase.
Adjusted income from continuing operations was $158.6 million compared to $120.2 million, a 32.0% increase, and adjusted
earnings per diluted share from continuing operations was
$3.17 compared to $2.53 in the prior year, a 25.3% increase.
Adjusted EBITDA reached a new high of $300.0 million for the fiscal year ended
June 30, 2014. Operating free
cash flow reached a record $143.2
million for the 12 months ended June
30, 2014. Refer to Non-GAAP Financial Measures for
adjustments.
Fiscal Year 2014 Highlights
The Company highlighted several of its accomplishments during
fiscal year 2014:
- Completed two strategic acquisitions:
- Tilda, a leading premium 100% branded Basmati and specialty
rice products company, which offers a range of over 60 dry rice and
ready-to-heat branded products principally in the United Kingdom, the Middle East and North Africa, Continental Europe, North America and India;
- Rudi's Organic Bakery, a leading organic and gluten-free
company, which offers a range of USDA-certified organic and
gluten-free bread and baked goods in the
United States and Canada;
- Worldwide net sales surpassed $2
billion;
- Introduced over 200 new innovative products worldwide;
- Hain Celestial AOC US consumption as measured by AC Nielsen was
10.8% for the 52-weeks ended July 5,
2014;
- Delivered in excess of $50
million in worldwide productivity savings;
- Achieved record adjusted EBITDA of $300.0 million;
- Generated record operating free cash flow of $143.2 million; and
- Divested non-core Grains Noirs foodservice business in
Belgium.
The Company, through one of its subsidiaries, nSpired Natural
Foods, Inc., initiated a voluntary recall on August 19, 2014 of certain lots of MaraNatha®
almond butters and peanut butters, Arrowhead Mills® peanut butters
and specific private label nut butters. As a result of this
voluntary recall, the Company has accrued costs of $6.0 million as of June
30, 2014.
"Our business continues to benefit from strong growth trends in
the organic and natural, better-for-you segment of consumer
packaged goods as more consumers and retailers seek out our
products. The success of our initiatives to drive profitable
sales growth through distribution gains, strategic brand
investments, new product innovation and accretive strategic
acquisitions in complementary growth categories and geographies has
positioned the Company with a solid foundation to capitalize on the
tremendous opportunities in front of us. I'm also proud to
once again have Hain Celestial ranked as one of FORTUNE's
100 Fastest Growing Companies, moving up to No. 61 in 2014, in
recognition of the tremendous growth in the Company's
revenues and earnings over the last three years," concluded
Irwin Simon.
Fiscal Year 2015 Guidance
The Company provided annual
guidance for fiscal year 2015 including the July 2014 acquisition of Hain Pure Protein
Corporation ("HPP") with approximately $230
million in net sales in fiscal year 2014, which is expected
to be accretive by $0.03 to $0.05 per
diluted share:
- Total net sales range of $2.725 billion
to $2.80 billion; an increase of approximately 27% to 30% as
compared to fiscal year 2014.
- Earnings range of $3.72 to $3.90
per diluted share; an increase of 17% to 23% as compared to fiscal
year 2014.
Guidance is provided for continuing operations on a non-GAAP
basis and excludes acquisition-related expenses, integration and
restructuring charges, factory start-up costs, unrealized net
foreign currency gains or losses, reserves for litigation
settlements and other non-recurring items that have been or may be
incurred during the Company's fiscal year 2015, which the Company
will continue to identify as it reports its future financial
results. Guidance excludes the impact of any future
acquisitions. Sales in the Company's second quarter are
historically the highest, and the Company's earnings growth is
expected to be the lowest in the first quarter and relatively
consistent in the second, third and fourth quarters.
Segment Results
During fiscal year 2014 the Company's
operations were organized into the following segments:
United States, United Kingdom and Rest of World (comprised of
Canada and Continental
Europe). In fiscal year 2015, HPP will be a reportable
segment.
The following is a summary of fourth quarter and annual results
by reportable segment:
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|
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(dollars in
thousands)
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United
States
|
|
United
Kingdom
|
|
Rest of
World
|
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Corporate/
Other
|
|
Non-GAAP
Adjustments (1)
|
|
Adjusted
(1)
|
Net sales - Three
months ended 6/30/14
|
$
|
322,984
|
$
|
200,469
|
$
|
60,375
|
$
|
-
|
$
|
-
|
$
|
583,828
|
Net sales - Three
months ended 6/30/13
|
$
|
285,223
|
$
|
121,131
|
$
|
7,116
|
$
|
-
|
$
|
-
|
$
|
463,470
|
% change
|
|
13.2%
|
|
65.5%
|
|
5.7%
|
|
|
|
|
|
26.0%
|
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|
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|
Operating income
(loss) - Three months ended 6/30/14
|
$
|
52,286
|
$
|
20,383
|
$
|
5,387
|
$
|
(18,033)
|
$
|
13,885
|
$
|
73,908
|
Operating income
(loss) - Three months ended 6/30/13
|
$
|
41,993
|
$
|
11,226
|
$
|
4,827
|
$
|
(18,313)
|
$
|
9,968
|
$
|
49,701
|
% change
|
|
24.5%
|
|
81.6%
|
|
11.6%
|
|
|
|
|
|
48.7%
|
|
|
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|
|
|
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|
|
|
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Operating income
margin - Three months ended 6/30/14
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16.2%
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|
10.2%
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|
8.9%
|
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12.7%
|
Operating income
margin - Three months ended 6/30/13
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14.7%
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|
9.3%
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8.5%
|
|
|
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10.7%
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(dollars in
thousands)
|
|
United
States
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|
United
Kingdom
|
|
Rest of
World
|
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Corporate/
Other
|
|
Non-GAAP
Adjustments (1)
|
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Adjusted
(1)
|
Net sales - Twelve
months ended 6/30/14
|
$
|
1,282,175
|
$
|
637,454
|
$
|
233,982
|
$
|
-
|
$
|
-
|
$
|
2,153,611
|
Net sales - Twelve
months ended 6/30/13
|
$
|
1,095,867
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$
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420,408
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$
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218,408
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$
|
-
|
$
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-
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$
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1,734,683
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% change
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17.0%
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51.6%
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7.1%
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24.2%
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Operating income
(loss) - Twelve months ended 6/30/14
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$
|
211,864
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$
|
52,661
|
$
|
17,397
|
$
|
(54,185)
|
$
|
28,307
|
$
|
256,044
|
Operating income
(loss) - Twelve months ended 6/30/13
|
$
|
177,352
|
$
|
31,069
|
$
|
18,671
|
$
|
(52,780)
|
$
|
20,945
|
$
|
195,257
|
% change
|
|
19.5%
|
|
69.5%
|
|
-6.8%
|
|
|
|
|
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31.1%
|
|
|
|
|
|
|
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Operating income
margin - Twelve months ended 6/30/14
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16.5%
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8.3%
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7.4%
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11.9%
|
Operating income
margin - Twelve months ended 6/30/13
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16.2%
|
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7.4%
|
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8.5%
|
|
|
|
|
|
11.3%
|
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(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
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Webcast
Hain Celestial will host a conference call and
webcast at 8:30 AM Eastern Time today
to review its fourth quarter and 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®, Rudi's Organic Bakery®,
Gluten Free Cafe™, Hain Pure Foods®, Spectrum®, Spectrum
Essentials®, Walnut Acres Organic®, Imagine®, Almond Dream®, Rice
Dream®, Soy Dream®, WestSoy®, The Greek Gods®, BluePrint®,
FreeBird®, Plainville Farms®, 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" 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 Company's guidance for net sales and earnings
per diluted share for fiscal year 2015; and (ii) growth trends,
strategic initiatives and opportunities. 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 2015 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 income from continuing operations, adjusted gross profit,
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- and 12-months ended June 30, 2014 and 2013 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 a component of performance-based executive
compensation.
For the three-months and 12-months ended June 30, 2014 and 2013, EBITDA and adjusted
EBITDA were calculated as follows:
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3-Months
Ended
|
12-Months
Ended
|
|
|
|
6/30/2014
|
6/30/2013
|
6/30/2014
|
6/30/2013
|
|
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|
(dollars in
thousands)
|
Net Income
|
$35,724
|
$25,933
|
$139,851
|
$114,656
|
|
Income
taxes
|
21,851
|
8,554
|
70,098
|
34,606
|
|
Interest expense,
net
|
5,791
|
5,084
|
21,985
|
17,974
|
|
Depreciation and
amortization
|
13,443
|
12,571
|
48,040
|
40,093
|
|
Equity in earnings of
affiliates
|
(1,857)
|
(144)
|
(3,985)
|
(295)
|
|
Stock based
compensation
|
2,792
|
3,173
|
12,449
|
13,010
|
|
EBITDA
|
77,744
|
55,171
|
288,438
|
220,044
|
|
Acquisition related
expenses
|
|
|
|
|
|
|
and restructuring
charges
|
1,695
|
7,514
|
11,580
|
15,754
|
|
Adjusted
EBITDA
|
$79,439
|
$62,685
|
$300,018
|
$235,798
|
|
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 fiscal years ended June 30,
2014 and 2013, operating free cash flow was calculated as
follows:
|
12-Months
Ended
6/30/2014
|
12-Months
Ended
6/30/2013
|
|
(dollars in
thousands)
|
|
|
|
Cash flow provided by
operating activities
|
$184,768
|
$120,962
|
Purchases of
property, plant and equipment
|
(41,611)
|
(72,877)
|
Operating free cash
flow
|
$143,157
|
$48,085
|
Operating free cash flow for the fiscal year
ended June 30, 2014 was $143.2 million, an increase of $95.1 million over the prior year period
primarily as a result of the increase in our net income and
improved working capital management.
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
June 30,
2014
|
|
June 30,
2013
|
|
|
|
(unaudited)
|
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|
|
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|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
123,751
|
|
$
41,263
|
|
Trade receivables,
net
|
287,915
|
|
233,641
|
|
Inventories
|
320,251
|
|
250,175
|
|
Deferred income
taxes
|
23,780
|
|
17,716
|
|
Other current
assets
|
47,906
|
|
32,377
|
|
|
Total current
assets
|
803,603
|
|
575,172
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
310,661
|
|
235,841
|
Goodwill,
net
|
1,134,368
|
|
876,106
|
Trademarks and other
intangible assets, net
|
651,482
|
|
498,235
|
Investments and joint
ventures
|
36,511
|
|
46,799
|
Other
assets
|
28,692
|
|
26,341
|
|
|
Total
assets
|
$ 2,965,317
|
|
$ 2,258,494
|
|
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|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
239,162
|
|
$
184,996
|
|
Accrued expenses and
other current liabilities
|
84,906
|
|
76,657
|
|
Current portion of
long-term debt
|
100,096
|
|
12,477
|
|
|
Total current
liabilities
|
424,164
|
|
274,130
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
767,827
|
|
653,464
|
Deferred income
taxes
|
148,439
|
|
114,395
|
Other noncurrent
liabilities
|
5,020
|
|
14,950
|
|
|
Total
liabilities
|
1,345,450
|
|
1,056,939
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
516
|
|
490
|
|
Additional paid-in
capital
|
969,697
|
|
768,774
|
|
Retained
earnings
|
629,618
|
|
489,767
|
|
Accumulated other
comprehensive income
|
60,128
|
|
(27,251)
|
|
Subtotal
|
1,659,959
|
|
1,231,780
|
|
Treasury
stock
|
(40,092)
|
|
(30,225)
|
|
|
Total stockholders'
equity
|
1,619,867
|
|
1,201,555
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$ 2,965,317
|
|
$ 2,258,494
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Income
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
Twelve Months
Ended June 30,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
583,828
|
|
$
463,470
|
|
$
2,153,611
|
|
$
1,734,683
|
Cost of
sales
|
|
431,628
|
|
340,748
|
|
1,586,418
|
|
1,259,823
|
Gross
profit
|
|
152,200
|
|
122,722
|
|
567,193
|
|
474,860
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
84,195
|
|
72,097
|
|
311,288
|
|
274,750
|
Amortization of
acquired intangibles
|
|
4,352
|
|
3,558
|
|
15,600
|
|
12,192
|
Acquisition related
expenses including integration and restructuring charges,
net
|
|
3,630
|
|
7,334
|
|
12,568
|
|
13,606
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
60,023
|
|
39,733
|
|
227,737
|
|
174,312
|
|
|
|
|
|
|
|
|
|
Interest expense and
other expenses
|
|
4,304
|
|
5,390
|
|
20,143
|
|
20,490
|
Income before income
taxes and equity in earnings of
equity-method investees
|
|
55,719
|
|
34,343
|
|
207,594
|
|
153,822
|
Income tax
provision
|
|
21,852
|
|
8,554
|
|
70,099
|
|
34,324
|
Income of
equity-method investees, net of tax
|
|
(1,857)
|
|
(144)
|
|
(3,985)
|
|
(295)
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
35,724
|
|
25,933
|
|
141,480
|
|
119,793
|
Loss from
discontinued operations, net of tax
|
|
-
|
|
-
|
|
(1,629)
|
|
(5,137)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
35,724
|
|
$
25,933
|
|
$
139,851
|
|
$
114,656
|
|
|
|
|
|
|
|
|
|
Basic net income per
share:
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
$
0.71
|
|
$
0.55
|
|
$
2.89
|
|
$
2.59
|
From discontinued
operations
|
|
-
|
|
-
|
|
(0.03)
|
|
(0.11)
|
Net income per share
- basic
|
|
$
0.71
|
|
$
0.55
|
|
$
2.86
|
|
$
2.48
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
$
0.70
|
|
$
0.53
|
|
$
2.83
|
|
$
2.52
|
From discontinued
operations
|
|
-
|
|
-
|
|
(0.03)
|
|
(0.11)
|
Net income per share
- diluted
|
|
$
0.70
|
|
$
0.53
|
|
$
2.80
|
|
$
2.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
50,079
|
|
47,235
|
|
48,875
|
|
46,176
|
Diluted
|
|
51,144
|
|
48,543
|
|
50,003
|
|
47,572
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2014 GAAP
|
Adjustments
|
|
2014
Adjusted
|
2013
Adjusted
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
152,200
|
$
9,864
|
|
$
162,064
|
$
125,067
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
84,195
|
(391)
|
|
83,804
|
71,808
|
Amortization of
acquired intangibles
|
|
4,352
|
-
|
|
4,352
|
3,558
|
Acquisition related
expenses including integration and
restructuring charges, net
|
|
3,630
|
(3,630)
|
|
-
|
-
|
|
|
|
|
|
|
|
Operating
income
|
|
60,023
|
13,885
|
|
73,908
|
49,701
|
|
|
|
|
|
|
|
Interest and other
expenses, net
|
|
4,304
|
1,347
|
|
5,651
|
5,943
|
Income before income
taxes and equity in earnings of equity-method investees
|
|
55,719
|
12,538
|
|
68,257
|
43,758
|
Income tax
provision
|
|
21,852
|
1,337
|
|
23,189
|
12,714
|
(Income) of
equity-method investees, net of tax
|
|
(1,857)
|
881
|
|
(976)
|
(648)
|
Income from
continuing operations
|
|
$
35,724
|
$
10,320
|
|
$
46,044
|
$
31,692
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations - basic
|
|
$
0.71
|
$
0.21
|
|
$
0.92
|
$
0.67
|
|
|
|
|
|
|
|
Income per share from
continuing operations - diluted
|
|
$
0.70
|
$
0.20
|
|
$
0.90
|
$
0.65
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
50,079
|
|
|
50,079
|
47,235
|
Diluted
|
|
51,144
|
|
|
51,144
|
48,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
Acquisition
related integration costs
|
|
$
982
|
$
223
|
|
$
995
|
$
233
|
Factory
start-up costs
|
|
2,882
|
656
|
|
1,350
|
459
|
Product recall
costs
|
|
6,000
|
2,179
|
|
-
|
-
|
Cost of
sales
|
|
9,864
|
3,058
|
|
2,345
|
692
|
|
|
|
|
|
|
|
Litigation
expenses
|
|
391
|
148
|
|
-
|
-
|
Acquisition
related integration costs
|
|
-
|
-
|
|
289
|
110
|
Selling, general and
administrative expenses
|
|
391
|
148
|
|
289
|
110
|
|
|
|
|
|
|
|
Acquisition
related fees and expenses, integration and restructuring
charges
|
|
5,310
|
1,477
|
|
4,998
|
1,441
|
Contingent
consideration (income) expense, net
|
|
(1,680)
|
(638)
|
|
2,336
|
888
|
Acquisition related
(income) expenses including integration and restructuring
charges
|
|
3,630
|
839
|
|
7,334
|
2,329
|
|
|
|
|
|
|
|
Unrealized
currency impacts
|
|
(570)
|
(182)
|
|
(284)
|
(96)
|
Gain on
disposal of investment held for sale
|
|
(809)
|
(307)
|
|
-
|
-
|
Currency gain
on acquisition payment
|
|
-
|
-
|
|
(373)
|
(142)
|
Interest
accretion and other items, net
|
|
32
|
7
|
|
104
|
43
|
Interest and other
expenses, net
|
|
(1,347)
|
(482)
|
|
(553)
|
(195)
|
|
|
|
|
|
|
|
Net (income)
loss from Hutchison Hain Organic Holdings Limited discontinued
operation
|
|
(881)
|
-
|
|
504
|
-
|
After-tax (income)
loss of equity-method investees
|
|
(881)
|
-
|
|
504
|
-
|
|
|
|
|
|
|
|
Discrete tax
benefit resulting from enacted tax rate change
|
|
-
|
-
|
|
-
|
1,690
|
Valuation
allowances due to factory start-up costs
|
|
-
|
(2,226)
|
|
-
|
-
|
Increase in
unrecognized tax benefits
|
|
-
|
-
|
|
-
|
(466)
|
Income tax
provision
|
|
-
|
(2,226)
|
|
-
|
1,224
|
|
|
|
|
|
|
|
Total
adjustments
|
|
$
11,657
|
$
1,337
|
|
$
9,919
|
$
4,160
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
June 30,
|
|
|
2014 GAAP
|
Adjustments
|
|
2014
Adjusted
|
2013
Adjusted
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
567,193
|
$
13,901
|
|
$
581,094
|
$
479,351
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
311,288
|
(1,838)
|
|
309,450
|
271,902
|
Amortization of
acquired intangibles
|
|
15,600
|
-
|
|
15,600
|
12,192
|
Acquisition related
expenses including integration and restructuring charges,
net
|
|
12,568
|
(12,568)
|
|
-
|
-
|
|
|
|
|
|
|
|
Operating
income
|
|
227,737
|
28,307
|
|
256,044
|
195,257
|
|
|
|
|
|
|
|
Interest and other
expenses, net
|
|
20,143
|
4,432
|
|
24,575
|
20,159
|
Income before income
taxes and equity in earnings of equity-method investees
|
|
207,594
|
23,875
|
|
231,469
|
175,098
|
Income tax
provision
|
|
70,099
|
6,054
|
|
76,153
|
57,069
|
(Income) of
equity-method investees, net of tax
|
|
(3,985)
|
723
|
|
(3,262)
|
(2,146)
|
Income from
continuing operations
|
|
$
141,480
|
$
17,098
|
|
$
158,578
|
$
120,175
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations - basic
|
|
$
2.89
|
$
0.35
|
|
$
3.24
|
$
2.60
|
|
|
|
|
|
|
|
Income per share from
continuing operations - diluted
|
|
$
2.83
|
$
0.34
|
|
$
3.17
|
$
2.53
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
48,875
|
|
|
48,875
|
46,176
|
Diluted
|
|
50,003
|
|
|
50,003
|
47,572
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
Acquisition
related integration costs
|
|
$
4,102
|
$
1,037
|
|
$
2,582
|
$
646
|
Factory
start-up costs
|
|
3,362
|
765
|
|
1,909
|
649
|
Co-pack
contract termination costs
|
|
437
|
166
|
|
-
|
-
|
Product recall
costs
|
|
6,000
|
2,179
|
|
-
|
-
|
Cost of
sales
|
|
13,901
|
4,147
|
|
4,491
|
1,295
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition
related integration costs
|
|
-
|
-
|
|
873
|
265
|
Reserve for
litigation settlements
|
|
1,614
|
613
|
|
1,975
|
751
|
Expenses
related to third party sale of common stock
|
|
224
|
85
|
|
-
|
-
|
Selling, general and
administrative expenses
|
|
1,838
|
698
|
|
2,848
|
1,016
|
|
|
|
|
|
|
|
Acquisition
related fees and expenses, integration and restructuring
charges
|
|
16,184
|
5,272
|
|
11,270
|
2,999
|
Contingent
consideration (income) expense, net
|
|
(3,616)
|
(1,755)
|
|
2,336
|
888
|
Acquisition related
(income) expenses including integration and restructuring
charges
|
|
12,568
|
3,517
|
|
13,606
|
3,887
|
|
|
|
|
|
|
|
Unrealized
currency impacts
|
|
(3,511)
|
(1,442)
|
|
1,598
|
617
|
Gain on
disposal of investment held for sale
|
|
(1,510)
|
(573)
|
|
|
|
Currency gain
on acquisition payment
|
|
-
|
-
|
|
(1,769)
|
(690)
|
Interest
accretion and other items, net
|
|
589
|
191
|
|
502
|
156
|
Interest and other
expenses, net
|
|
(4,432)
|
(1,824)
|
|
331
|
83
|
|
|
|
|
|
|
|
Net (income)
loss from Hutchison Hain Organic Holdings Limited discontinued
operation
|
|
(881)
|
-
|
|
1,851
|
-
|
Hain Pure
Protein Corporation mortality losses
|
|
158
|
-
|
|
-
|
-
|
After-tax (income)
loss of equity-method investees
|
|
(723)
|
-
|
|
1,851
|
-
|
|
|
|
|
|
|
|
Worthless
stock tax deduction
|
|
-
|
-
|
|
-
|
13,186
|
Change in
valuation allowances
|
|
-
|
(2,226)
|
|
-
|
1,690
|
Discrete tax
benefit resulting from enacted tax rate change
|
|
-
|
3,777
|
|
-
|
1,824
|
Change in
unrecognized tax benefits
|
|
-
|
(550)
|
|
-
|
(236)
|
Nondeductible
acquisition related transaction expenses
|
|
-
|
(1,485)
|
|
-
|
-
|
Income tax
provision
|
|
-
|
(484)
|
|
-
|
16,464
|
|
|
|
|
|
|
|
Total
adjustments
|
|
$
23,152
|
$
6,054
|
|
$
23,127
|
$
22,745
|
Logo -
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SOURCE The Hain Celestial Group, Inc.