LAKE SUCCESS, N.Y.,
Feb. 4, 2015 /PRNewswire/ -- The
Hain Celestial Group, Inc. (NASDAQ: HAIN), a leading organic
and natural products company with operations in North America, Europe and India providing consumers with A Healthier Way
of Life™, today reported record results for its second quarter
ended December 31, 2014.
Second Quarter Performance Highlights
- Record second quarter net sales of $696.4 million; record adjusted net sales of
$701.7 million, a 31% increase over
the prior year period adjusted net sales
- Earnings per diluted share of $0.43, which includes an after-tax charge of
$4.5 million for the nut butter
voluntary recall; record second quarter adjusted earnings per
diluted share of $0.54, a 26%
increase over the prior year period adjusted earnings per diluted
share
- Operating income $74.0 million;
adjusted operating income $87.4
million, a 31% increase over the prior year period adjusted
operating income
"We delivered a strong quarter across our diverse portfolio of
worldwide brands, overcoming foreign currency impacts to deliver
our 17th consecutive quarter of year-over-year double
digit sales and adjusted earnings growth," said Irwin D. Simon, Founder, President and Chief
Executive Officer of Hain Celestial. "I am happy to continue
to see our organic growth across the business and our high single
digit consumption growth in our U.S. business. The health and
wellness industry has a robust outlook, and we are well-positioned
to capitalize on this future growth with consumers through our
distribution of branded organic, natural and better-for-you product
offerings in over 65 countries."
Second Quarter Fiscal Year 2015
The Company reported
record net sales of $696.4 million
and adjusted net sales of $701.7
million, a 31% increase, as adjusted for the nut butter
voluntary recall. Hain Celestial US reported record second
quarter net sales of $354.0 million
and record second quarter adjusted net sales of $359.3 million, an increase of 10% over the prior
year second quarter, which includes a $5.3
million sales adjustment for the nut butter voluntary
recall. In the United
Kingdom, net sales were $200.8
million, a 38% increase which included approximately
$50 million from the acquisition of
Tilda, and the Rest of the World segment reported net sales of
$55.4 million. Hain Pure
Protein Corporation (HPPC) reported net sales of $86.2 million. The Company had strong brand
contribution led by double digit growth from Sensible Portions®,
The Greek Gods®, Terra®, Garden of Eatin'®, Imagine®, Little Bear®,
WestSoy®, Nile Spice®, Plainville Farms®, Hartley's®, Lima®,
Natumi®, Frank Cooper's®, Jason®,
Avalon Organic® and Alba Botanica®. Sales of the Rudi's Organic
Bakery®, FreeBird® and Plainville Farms® brands acquired after the
second quarter of fiscal year 2014 also contributed to the growth
in net sales.
The Company earned net income of $44.6
million and adjusted net income of $55.5 million for the second quarter.
Earnings per diluted share was $0.43
and on an adjusted basis was $0.54, a
26% increase from the prior year second quarter. Refer to
Non-GAAP Financial Measures for adjustments.
Fiscal Year 2015 Guidance
The Company updated its
annual net sales guidance by approximately $70 million for foreign currency and in addition
approximately $20 million, net,
primarily related to the nut butter recall and a fire affecting its
Tilda manufacturing facility:
- Total net sales range of $2.650 billion
to $2.675 billion; an increase of approximately 23% to 24%
as compared to fiscal year 2014.
- Earnings range of $1.85 to $1.89
per diluted share; an increase of 17% to 19% as compared to fiscal
year 2014.
With respect to the cadence of the second half of Company's
fiscal year, the Company expects net sales to be slightly higher in
the fourth quarter, as compared to the third quarter, while 40% to
45% of the Company's earnings will be in the third quarter and the
balance in the fourth quarter.
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 including any product
recalls or market withdrawals 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.
Segment Results
The Company's operations are managed
into the following segments: United
States, United Kingdom,
HPPC 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
|
HPPC
|
Rest of
World
|
Corporate/
Other
|
Total
|
NET
SALES
|
|
|
|
|
|
|
Net sales - Three
months ended 12/31/14
|
$
353,969
|
$
200,797
|
$
86,216
|
$
55,401
|
$
-
|
$
696,383
|
Non-GAAP Adjustments
(1)
|
$
5,331
|
$
-
|
$
-
|
$
-
|
$
-
|
$
5,331
|
Adjusted net sales -
Three months ended 12/31/14
|
$
359,300
|
$
200,797
|
$
86,216
|
$
55,401
|
$
-
|
$
701,714
|
|
|
|
|
|
|
|
Net sales - Three
months ended 12/31/13 (2)
|
$
327,725
|
$
146,051
|
$
-
|
$
61,103
|
$
-
|
$
534,879
|
% change - FY'14
adjusted net sales vs. FY'13 net sales
|
9.6%
|
37.5%
|
|
-9.3%
|
|
31.2%
|
OPERATING
INCOME
|
|
|
|
|
|
|
Three months ended
12/31/14
|
|
|
|
|
|
|
Operating
income
|
$
55,591
|
$
12,263
|
$
7,715
|
$
5,613
|
$
(7,170)
|
$
74,012
|
Non-GAAP Adjustments
(1)
|
$
7,555
|
$
5,189
|
$
-
|
$
-
|
$
627
|
$
13,371
|
Adjusted operating
income
|
$
63,146
|
$
17,452
|
$
7,715
|
$
5,613
|
$
(6,543)
|
$
87,383
|
Adjusted operating
income margin
|
17.6%
|
8.7%
|
8.9%
|
10.1%
|
|
12.5%
|
Three months ended
12/31/13
|
|
|
|
|
|
|
Operating
income
|
$
56,510
|
$
12,001
|
$
-
|
$
3,996
|
$
(8,194)
|
$
64,313
|
Non-GAAP Adjustments
(1)
|
$
482
|
$
1,296
|
$
-
|
$
336
|
$
437
|
$
2,551
|
Adjusted operating
income
|
$
56,992
|
$
13,297
|
$
-
|
$
4,332
|
$
(7,757)
|
$
66,864
|
Adjusted operating
income margin
|
17.4%
|
9.1%
|
|
7.1%
|
|
12.5%
|
(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
|
|
|
|
|
(2) There were no
non-GAAP adjustments to net sales for the three months ended
12/31/13
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
United
States
|
United
Kingdom
|
HPPC
|
Rest of
World
|
Corporate/
Other
|
Total
|
NET
SALES
|
|
|
|
|
|
|
Net sales - Six
months ended 12/31/14
|
$
690,884
|
$
373,076
|
$
156,886
|
$
106,794
|
$
-
|
$
1,327,640
|
Non-GAAP Adjustments
(1)
|
$
15,773
|
$
-
|
$
-
|
$
928
|
$
-
|
$
16,701
|
Adjusted net sales -
Six months ended 12/31/14
|
$
706,657
|
$
373,076
|
$
156,886
|
$
107,722
|
$
-
|
$
1,344,341
|
|
|
|
|
|
|
|
Net sales - Six
months ended 12/31/13 (2)
|
$
639,720
|
$
260,046
|
$
-
|
$
112,597
|
$
-
|
$
1,012,363
|
% change - FY'14
adjusted net sales vs. FY'13 net sales
|
10.5%
|
43.5%
|
|
-4.3%
|
|
32.8%
|
OPERATING
INCOME
|
|
|
|
|
|
|
Six months ended
12/31/14
|
|
|
|
|
|
|
Operating
income
|
$
85,181
|
$
17,858
|
$
11,534
|
$
6,248
|
$
(17,982)
|
$
102,839
|
Non-GAAP Adjustments
(1)
|
$
30,358
|
$
8,164
|
$
140
|
$
2,187
|
$
2,496
|
$
43,345
|
Adjusted operating
income
|
$
115,539
|
$
26,022
|
$
11,674
|
$
8,435
|
$
(15,486)
|
$
146,184
|
Adjusted operating
income margin
|
16.4%
|
7.0%
|
7.4%
|
7.8%
|
|
10.9%
|
Six months ended
12/31/13
|
|
|
|
|
|
|
Operating
income
|
$
102,876
|
$
13,912
|
$
-
|
$
6,444
|
$
(19,147)
|
$
104,085
|
Non-GAAP Adjustments
(1)
|
$
482
|
$
1,296
|
$
-
|
$
802
|
$
3,216
|
$
5,796
|
Adjusted operating
income
|
$
103,358
|
$
15,208
|
$
-
|
$
7,246
|
$
(15,931)
|
$
109,881
|
Adjusted operating
income margin
|
16.2%
|
5.8%
|
|
6.4%
|
|
10.9%
|
(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
|
|
|
|
|
(2) There were no
non-GAAP adjustments to net sales for the six months ended
12/31/13
|
|
|
|
|
Webcast
Hain Celestial will host a conference call and
webcast at 8:30 AM Eastern Time today
to review its second quarter fiscal year 2015 results. The
conference call will be webcast and available under the Investor
Relations section of the Company's website at www.hain.com.
Upcoming Events
The Company is scheduled to present at
the 2015 Consumer Analyst Group of New
York ("CAGNY") Conference on Tuesday,
February 17, 2015 at 4:15
PM. A live audio webcast and a replay of the event
will be 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 with operations in North America, Europe and India. 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®, Casbah®, 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®, Natumi®, GG UniqueFiber®, Tilda®, 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
Certain statements contained in
this press release constitute "forward-looking statements" under
the Private Securities Litigation Reform Act of 1995. Words
such as "plan," "continue," "expect," "expected," "anticipate,"
"intend", "estimate," "believe," "seek", "may," "potential," "can,"
"positioned," "should," "future," "look forward", "outlook", and
similar expressions, or the negative of those expressions, may
identify forward-looking statements. These forward-looking
statements include the Company's beliefs or expectations relating
to (i) the Company's guidance for net sales and earnings per
diluted share for fiscal year 2015, and (ii) growth trends and
distribution opportunities. Such forward-looking statements
involve known and unknown risks, uncertainties, and other factors
which may cause the Company's actual results, levels of activity,
performance or achievements of the Company, or industry results, to
be materially different from any future results, levels of
activity, performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among
others, 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 investment to
successfully execute its business plan; 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; product recall or market withdrawal;
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, 2014. 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 sales, adjusted gross profit, adjusted operating
income, and adjusted income from continuing operations, adjusted
income per diluted share from continuing operations and adjusted
EBITDA (defined below) and operating free cash flow. The
reconciliations of these non-GAAP financial measures to the
comparable GAAP financial measures including adjustments for the
recall and withdrawal are presented in the tables "Reconciliation
of GAAP Results to Non-GAAP Measures" for the three months and six
months ended December 31, 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 adjusted 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, stock based compensation,
acquisition-related expenses, including integration and
restructuring charges, and other non-recurring items. The
Company's management believes that this presentation provides
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 this measure for reviewing the financial results of
the Company and as a component of performance-based executive
compensation.
For the three and six months ended December 31, 2014 and 2013, adjusted EBITDA was
calculated as follows:
|
3 Months
Ended
|
6 Months
Ended
|
|
12/31/2014
|
12/31/2013
|
12/31/2014
|
12/31/2013
|
|
(dollars in
thousands)
|
Net Income
|
$44,575
|
$41,231
|
$63,430
|
$68,886
|
Income
taxes
|
20,931
|
19,748
|
26,997
|
28,499
|
Interest expense,
net
|
5,882
|
5,209
|
11,974
|
10,494
|
Depreciation and
amortization
|
14,322
|
11,355
|
28,902
|
21,808
|
Equity in earnings of
affiliates
|
(308)
|
(1,473)
|
(328)
|
(2,045)
|
Stock based
compensation
|
3,060
|
3,400
|
5,999
|
6,637
|
Subtotal
|
88,462
|
79,470
|
136,974
|
134,279
|
Adjustments(a)
|
13,371
|
1,402
|
38,012
|
4,647
|
Adjusted
EBITDA
|
$101,833
|
$80,872
|
$174,986
|
$138,926
|
|
|
|
|
|
(a) The adjustments
include all adjustments in the table "Reconciliation of GAAP
Results to Non-GAAP Measures" except for unrealized currency
impacts, gain on disposal of investment held for sale, interest
accretion and other items, net and taxes.
|
For the six months ended December 31,
2014 and 2013, operating free cash flow was calculated as
follows:
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,
2014 and 2013, operating free cash flow was calculated as
follows:
|
6 Months
Ended
|
|
12/31/2014
|
12/31/2013
|
|
|
(dollars in
thousands)
|
Cash flow provided by
operating activities
|
$
|
54,251
|
|
|
$
|
73,488
|
Purchases of
property, plant and equipment
|
|
(25,766)
|
|
|
|
(20,822)
|
Operating free cash
flow
|
$
|
28,485
|
|
|
$
|
52,666
|
Operating free cash flow for the six-months ended December 31, 2014 was $28.5 million, compared to $52.7 million in the prior year period. Our
current period operating free cash flow was impacted primarily by
the effects of our MaraNatha® nut butter recall and working capital
requirements on a higher sales base.
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
December 31,
2014
|
|
June 30,
2014
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
135,227
|
|
$
123,751
|
|
Trade receivables,
net
|
321,523
|
|
287,915
|
|
Inventories
|
372,146
|
|
320,251
|
|
Deferred income
taxes
|
25,592
|
|
23,780
|
|
Other current
assets
|
50,877
|
|
47,906
|
|
|
Total current
assets
|
905,365
|
|
803,603
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
333,824
|
|
310,661
|
Goodwill,
net
|
1,093,589
|
|
1,134,368
|
Trademarks and other
intangible assets, net
|
622,467
|
|
651,482
|
Investments and joint
ventures
|
6,572
|
|
36,511
|
Other
assets
|
29,886
|
|
28,692
|
|
|
Total
assets
|
$
2,991,703
|
|
$ 2,965,317
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
258,139
|
|
$
239,162
|
|
Accrued expenses and
other current liabilities
|
81,857
|
|
84,906
|
|
Current portion of
long-term debt
|
89,347
|
|
100,096
|
|
|
Total current
liabilities
|
429,343
|
|
424,164
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
785,845
|
|
767,827
|
Deferred income
taxes
|
151,316
|
|
148,439
|
Other noncurrent
liabilities
|
4,550
|
|
5,020
|
|
|
Total
liabilities
|
1,371,054
|
|
1,345,450
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock
*
|
1,048
|
|
1,031
|
|
Additional paid-in
capital *
|
1,027,769
|
|
969,182
|
|
Retained
earnings
|
693,048
|
|
629,618
|
|
Accumulated other
comprehensive income
|
(48,950)
|
|
60,128
|
|
Subtotal
|
1,672,915
|
|
1,659,959
|
|
Treasury
stock
|
(52,266)
|
|
(40,092)
|
|
|
Total stockholders'
equity
|
1,620,649
|
|
1,619,867
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
2,991,703
|
|
$ 2,965,317
|
|
|
|
|
|
|
|
|
|
|
|
|
*
|
Amounts as of June
30, 2014 have been retroactively adjusted to reflect a
two-for-one
|
|
stock split of our
common stock in the form of a 100% stock dividend.
|
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,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
696,383
|
|
$
534,879
|
|
$
1,327,640
|
|
$
1,012,363
|
Cost of
sales
|
|
529,056
|
|
391,802
|
|
1,034,469
|
|
750,163
|
Gross
profit
|
|
167,327
|
|
143,077
|
|
293,171
|
|
262,200
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
88,621
|
|
75,237
|
|
179,545
|
|
148,824
|
Amortization of
acquired intangibles
|
|
4,303
|
|
3,647
|
|
8,812
|
|
7,115
|
Acquisition related
expenses including integration and restructuring charges,
net
|
|
391
|
|
(120)
|
|
1,975
|
|
2,176
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
74,012
|
|
64,313
|
|
102,839
|
|
104,085
|
|
|
|
|
|
|
|
|
|
Interest expense and
other expenses
|
|
8,814
|
|
5,955
|
|
12,740
|
|
9,893
|
Income before income
taxes and equity in earnings of equity-method investees
|
|
65,198
|
|
58,358
|
|
90,099
|
|
94,192
|
Income tax
provision
|
|
20,931
|
|
19,748
|
|
26,997
|
|
28,499
|
(Income) of
equity-method investees, net of tax
|
|
(308)
|
|
(1,473)
|
|
(328)
|
|
(2,045)
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
44,575
|
|
40,083
|
|
63,430
|
|
67,738
|
Income from
discontinued operations, net of tax
|
|
-
|
|
1,148
|
|
-
|
|
1,148
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
44,575
|
|
$
41,231
|
|
$
63,430
|
|
$
68,886
|
|
|
|
|
|
|
|
|
|
Basic net income per
share *:
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
$
0.44
|
|
$
0.42
|
|
$
0.63
|
|
$
0.71
|
From discontinued
operations
|
|
-
|
|
0.01
|
|
-
|
|
0.01
|
Net income per share
- basic
|
|
$
0.44
|
|
$
0.43
|
|
$
0.63
|
|
$
0.72
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share *:
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
$
0.43
|
|
$
0.41
|
|
$
0.62
|
|
$
0.69
|
From discontinued
operations
|
|
-
|
|
0.01
|
|
-
|
|
0.01
|
Net income per share
- diluted
|
|
$
0.43
|
|
$
0.42
|
|
$
0.62
|
|
$
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding *:
|
|
|
|
|
|
|
|
|
Basic
|
|
101,267
|
|
96,038
|
|
100,975
|
|
95,726
|
Diluted
|
|
103,226
|
|
98,370
|
|
102,941
|
|
98,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Share and
per share amounts for the three and six months ended December 31,
2013 have been retroactively adjusted to reflect
a two-for-one stock split of our
common stock in the form of a 100% stock dividend.
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
2014 GAAP
|
Adjustments
|
|
2014
Adjusted
|
2013
Adjusted
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Net sales
|
|
$
696,383
|
$
5,331
|
|
$
701,714
|
$
534,879
|
Cost of
sales
|
|
529,056
|
(5,089)
|
|
523,967
|
389,586
|
Gross
profit
|
|
167,327
|
10,420
|
|
177,747
|
145,293
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
88,621
|
(2,560)
|
|
86,061
|
74,782
|
Amortization of
acquired intangibles
|
|
4,303
|
-
|
|
4,303
|
3,647
|
Acquisition related
expenses including integration and restructuring charges,
net
|
|
391
|
(391)
|
|
-
|
-
|
|
|
|
|
|
|
|
Operating
income
|
|
74,012
|
13,371
|
|
87,383
|
66,864
|
|
|
|
|
|
|
|
Interest and other
expenses, net
|
|
8,814
|
(2,626)
|
|
6,188
|
6,046
|
Income before income
taxes and equity in earnings of equity-method investees
|
|
65,198
|
15,997
|
|
81,195
|
60,818
|
Income tax
provision
|
|
20,931
|
5,054
|
|
25,985
|
19,604
|
(Income) of
equity-method investees, net of tax
|
|
(308)
|
-
|
|
(308)
|
(1,473)
|
Income from
continuing operations
|
|
$
44,575
|
$
10,943
|
|
$
55,518
|
$
42,687
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations - basic *
|
|
$
0.44
|
$
0.11
|
|
$
0.55
|
$
0.44
|
|
|
|
|
|
|
|
Income per share from
continuing operations - diluted *
|
|
$
0.43
|
$
0.11
|
|
$
0.54
|
$
0.43
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding *:
|
|
|
|
|
|
|
Basic
|
|
101,267
|
|
|
101,267
|
96,038
|
Diluted
|
|
103,226
|
|
|
103,226
|
98,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2015
|
|
FY 2014
|
|
|
Impact on
Income
Before Income
Taxes
|
Impact on Income
Tax Provision
|
|
Impact on
Income Before Income
Taxes
|
Impact on Income
Tax Provision
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Nut butter
recall
|
|
$
5,331
|
$
2,026
|
|
$
-
|
$
-
|
Net sales
|
|
5,331
|
2,026
|
|
-
|
-
|
|
|
|
|
|
|
|
Nut butter
recall
|
|
(496)
|
(188)
|
|
-
|
-
|
Fakenham inventory
allowance for fire
|
|
900
|
187
|
|
-
|
-
|
UK factory start-up
costs
|
|
3,289
|
682
|
|
1,677
|
426
|
Acquisition related
and other integration costs
|
|
1,396
|
364
|
|
102
|
23
|
Co-pack contract
termination costs
|
|
-
|
-
|
|
437
|
166
|
Cost of
sales
|
|
5,089
|
1,045
|
|
2,216
|
615
|
|
|
|
|
|
|
|
Nut butter
recall
|
|
2,432
|
924
|
|
-
|
-
|
Litigation
expenses
|
|
128
|
49
|
|
455
|
173
|
Selling, general and
administrative expenses
|
|
2,560
|
973
|
|
455
|
173
|
|
|
|
|
|
|
|
Acquisition related
fees and expenses, integration and restructuring charges
|
|
391
|
142
|
|
1,661
|
534
|
Contingent
consideration (income) expense, net
|
|
-
|
-
|
|
(1,781)
|
(1,117)
|
Acquisition related
(income) expenses including integration and restructuring
charges
|
|
391
|
142
|
|
(120)
|
(583)
|
|
|
|
|
|
|
|
Unrealized currency
impacts
|
|
2,626
|
868
|
|
(98)
|
(149)
|
Gain on disposal of
investment held for sale
|
|
-
|
-
|
|
(234)
|
(89)
|
Accretion of
contingent consideration
|
|
-
|
-
|
|
241
|
82
|
Interest and other
expenses, net
|
|
2,626
|
868
|
|
(91)
|
(156)
|
|
|
|
|
|
|
|
Nondeductible
acquisition related transaction expenses
|
|
-
|
-
|
|
-
|
(193)
|
Income tax
provision
|
|
-
|
-
|
|
-
|
(193)
|
|
|
|
|
|
|
|
Total
adjustments
|
|
$
15,997
|
$
5,054
|
|
$
2,460
|
$
(144)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Share and
per share amounts for the three months ended December 31, 2013 have
been retroactively adjusted to reflect a two-for-one stock split of our common stock in
the form of a 100% stock dividend.
|
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
December 31,
|
|
|
2014 GAAP
|
Adjustments
|
|
2014
Adjusted
|
2013
Adjusted
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Net sales
|
|
$
1,327,640
|
$
16,701
|
|
$
1,344,341
|
$
1,012,363
|
Cost of
sales
|
|
1,034,469
|
(19,131)
|
|
1,015,338
|
747,222
|
Gross
profit
|
|
293,171
|
35,832
|
|
329,003
|
265,141
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
179,545
|
(5,538)
|
|
174,007
|
148,145
|
Amortization of
acquired intangibles
|
|
8,812
|
-
|
|
8,812
|
7,115
|
Acquisition related
expenses including integration and restructuring charges,
net
|
|
1,975
|
(1,975)
|
|
-
|
-
|
|
|
|
|
|
|
|
Operating
income
|
|
102,839
|
43,345
|
|
146,184
|
109,881
|
|
|
|
|
|
|
|
Interest and other
expenses, net
|
|
12,740
|
(250)
|
|
12,490
|
12,065
|
Income before income
taxes and equity in earnings of equity-method investees
|
|
90,099
|
43,595
|
|
133,694
|
97,816
|
Income tax
provision
|
|
26,997
|
16,830
|
|
43,827
|
31,848
|
(Income) of
equity-method investees, net of tax
|
|
(328)
|
-
|
|
(328)
|
(2,045)
|
Income from
continuing operations
|
|
$
63,430
|
$
26,765
|
|
$
90,195
|
$
68,013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations - basic *
|
|
$
0.63
|
$
0.27
|
|
$
0.89
|
$
0.71
|
|
|
|
|
|
|
|
Income per share from
continuing operations - diluted *
|
|
$
0.62
|
$
0.26
|
|
$
0.88
|
$
0.69
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding *:
|
|
|
|
|
|
|
Basic
|
|
100,975
|
|
|
100,975
|
95,726
|
Diluted
|
|
102,941
|
|
|
102,941
|
98,120
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2015
|
|
FY 2014
|
|
|
Impact on Income
Before Income Taxes
|
Impact on Income Tax
Provision
|
|
Impact on Income
Before Income Taxes
|
Impact on Income Tax
Provision
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Nut butter
recall
|
|
$
15,773
|
$
5,994
|
|
$
-
|
$
-
|
European non-dairy
beverage withdrawal
|
|
928
|
316
|
|
-
|
-
|
Net sales
|
|
16,701
|
6,310
|
|
-
|
-
|
|
|
|
|
|
|
|
Nut butter
recall
|
|
9,428
|
3,583
|
|
-
|
-
|
European non-dairy
beverage withdrawal
|
|
1,259
|
428
|
|
|
|
Fakenham inventory
allowance for fire
|
|
900
|
187
|
|
-
|
-
|
UK factory start-up
costs
|
|
6,021
|
1,249
|
|
2,143
|
584
|
Acquisition related
and other integration costs
|
|
1,523
|
390
|
|
361
|
82
|
Co-pack contract
termination costs
|
|
-
|
-
|
|
437
|
166
|
Cost of
sales
|
|
19,131
|
5,837
|
|
2,941
|
832
|
|
|
|
|
|
|
|
Nut butter
recall
|
|
4,909
|
1,864
|
|
-
|
-
|
Litigation
expenses
|
|
373
|
142
|
|
455
|
173
|
Acquisition related
integration costs
|
|
256
|
77
|
|
-
|
-
|
Expenses related to
third party sale of common stock
|
|
-
|
-
|
|
224
|
85
|
Selling, general and
administrative expenses
|
|
5,538
|
2,083
|
|
679
|
258
|
|
|
|
|
|
|
|
Acquisition related
fees and expenses, integration and restructuring charges
|
|
1,694
|
637
|
|
3,957
|
1,314
|
Contingent
consideration (income) expense, net
|
|
281
|
-
|
|
(1,781)
|
(1,117)
|
Acquisition related (income) expenses including integration and
restructuring charges
|
|
1,975
|
637
|
|
2,176
|
197
|
|
|
|
|
|
|
|
Unrealized currency
impacts
|
|
5,816
|
1,933
|
|
(2,417)
|
(1,047)
|
Gain on disposal of
investment held for sale
|
|
(311)
|
-
|
|
(234)
|
(89)
|
Gain on pre-existing
investment in HPPC
|
|
(5,334)
|
-
|
|
-
|
-
|
Interest accretion
and other items, net
|
|
79
|
30
|
|
479
|
164
|
Interest and other
expenses, net
|
|
250
|
1,963
|
|
(2,172)
|
(972)
|
|
|
|
|
|
|
|
Nondeductible
acquisition related transaction expenses
|
|
-
|
-
|
|
-
|
(193)
|
Discrete tax benefit
resulting from enacted tax rate change
|
|
-
|
-
|
|
-
|
3,777
|
Increase in
unrecognized tax benefits
|
|
-
|
-
|
|
-
|
(550)
|
Income tax
provision
|
|
-
|
-
|
|
-
|
3,034
|
|
|
|
|
|
|
|
Total
adjustments
|
|
$
43,595
|
$
16,830
|
|
$
3,624
|
$
3,349
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Share and
per share amounts for the six months ended December 31, 2013 have
been retroactively adjusted to reflect a two-for-one stock split of our common stock in
the form of a 100% stock dividend.
|
|
|
|
|
|
|
|
Logo -
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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hain-celestial-announces-second-quarter-fiscal-year-2015-record-net-sales-and-adjusted-earnings-per-share-300030636.html
SOURCE The Hain Celestial Group, Inc.