LAKE SUCCESS, N.Y.,
May 6, 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 results for its third quarter ended
March 31, 2015.
Third Quarter Performance Highlights
- Record third quarter net sales of $662.7
million, a 19% increase over the prior year period. Foreign
exchange rate changes on a year-over-year basis impacted sales by
$26 million. Excluding the
effect of these exchange rate changes, sales would have been
$688.7 million, or a 24% increase
over the prior year period.
- Earnings per diluted share of $0.32; adjusted earnings per diluted share of
$0.45. Unfavorable foreign
currencies impacted reported results by $0.04 per diluted share and by $0.01 per adjusted diluted share.
- Operating income of $60.2
million; adjusted operating income of $77.5 million.
"I am pleased with our third quarter results. We had
record third quarter net sales, as the strength of our core brands
and contributions from acquisitions helped us to overcome foreign
currency impacts to deliver our 18th consecutive
year-over-year double digit net sales growth," said Irwin D. Simon, Founder, President and Chief
Executive Officer of Hain Celestial. "Our team managed our
expenses and focused on productivity improvements to deliver
profitable worldwide expansion in the quarter, while we also
experienced greater contribution from our Hain Pure Protein
Corporation business as consumers today increasingly seek fresh,
antibiotic-free and organic proteins to complement their healthy
lifestyles."
Third Quarter Fiscal Year 2015
Hain Celestial
US reported record third quarter net sales of $343.7 million, an increase of 8%, over the prior
year third quarter. In the United
Kingdom, net sales were $178.1
million, and the Rest of the World segment reported net
sales of $57.8 million, which
includes the recently acquired Belvedere International with its
Live Clean® brand. The Hain Pure Protein segment (HPPC),
which includes the recently acquired Empire® brand of kosher foods,
reported net sales of $83.2
million. The Company had strong brand contribution led
by double digit growth in constant currency from Sensible
Portions®, Tilda®, Ella's Kitchen®, The Greek Gods®, Terra®, Hain
Pure Foods®, DeBoles®, Natumi®, Jason® and Avalon Organics®.
Net sales of Rudi's Organic Bakery®, Plainville Farms®,
FreeBird®, Empire®, Kosher Valley® and Live Clean® brands acquired
after the third quarter of fiscal year 2014 also contributed to the
growth.
The Company earned net income of $33.4
million and adjusted net income of $46.5 million for the third quarter.
Earnings per diluted share for the third quarter were $0.32 and on an adjusted basis were $0.45. Included in reported results for the
third quarter is a non-cash partial impairment charge of
$5.5 million ($4.4 million after-tax or $0.04 per diluted share) for an intangible asset
related to the United Kingdom
segment. Refer to Non-GAAP Financial Measures in this press release
for adjustments.
Fiscal Year 2015 Guidance
The Company updated
its annual net sales guidance for the acquisitions of
Belvedere International with its Live Clean® personal care brand
and Empire® brands during the third quarter and updated its
earnings guidance.
- Total net sales range of $2.692 billion
to $2.700 billion; an increase of approximately 25% as
compared to fiscal year 2014.
- Earnings range of $1.86 to $1.90
per diluted share; an increase of 17% to 20% 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, 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 third quarter and nine month
results by reportable segment:
(dollars in
thousands)
|
United
States
|
United
Kingdom
|
Hain Pure
Protein
|
Rest of
World
|
Corporate/
Other
|
Total
|
|
NET
SALES
|
|
|
|
|
|
|
|
Net sales - Three
months ended 3/31/15
|
$
343,728
|
$
178,068
|
$
83,192
|
$
57,751
|
$
-
|
$
662,739
|
|
Net sales - Three
months ended 3/31/14
|
$
319,471
|
$
176,939
|
$
-
|
$
61,010
|
$
-
|
$
557,420
|
|
|
|
|
|
|
|
|
|
% change - FY'15 net
sales vs. FY'14 net sales
|
7.6%
|
0.6%
|
|
-5.3%
|
|
18.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
|
Three months ended
3/31/15
|
|
|
|
|
|
|
|
Operating
income
|
$
55,851
|
$
11,760
|
$
4,970
|
$
4,412
|
$
(16,799)
|
$
60,194
|
|
Non-GAAP Adjustments
(1)
|
$
3,188
|
$
3,838
|
$
-
|
$
-
|
$
10,326
|
$
17,352
|
|
Adjusted operating
income
|
$
59,039
|
$
15,598
|
$
4,970
|
$
4,412
|
$
(6,473)
|
$
77,546
|
|
Adjusted operating
income margin
|
17.2%
|
8.8%
|
6.0%
|
7.6%
|
|
11.7%
|
|
|
|
|
|
|
|
|
|
Three months ended
3/31/14
|
|
|
|
|
|
|
|
Operating
income
|
$
56,702
|
$
18,366
|
$
-
|
$
5,100
|
$
(16,539)
|
$
63,629
|
|
Non-GAAP Adjustments
(1)
|
$
-
|
$
913
|
$
-
|
$
65
|
$
7,649
|
$
8,627
|
|
Adjusted operating
income
|
$
56,702
|
$
19,279
|
$
-
|
$
5,165
|
$
(8,890)
|
$
72,256
|
|
Adjusted operating
income margin
|
17.7%
|
10.9%
|
|
8.5%
|
|
13.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
|
|
(dollars in
thousands)
|
United
States
|
United
Kingdom
|
Hain Pure
Protein
|
Rest of
World
|
Corporate/
Other
|
Total
|
|
NET
SALES
|
|
|
|
|
|
|
|
Net sales - Nine
months ended 3/31/15
|
$ 1,034,612
|
$
551,144
|
$
240,078
|
$
164,545
|
$
-
|
$ 1,990,379
|
|
Non-GAAP Adjustments
(1)
|
$
15,773
|
$
-
|
$
-
|
$
928
|
$
-
|
$
16,701
|
|
Adjusted net sales -
Nine months ended 3/31/15
|
$ 1,050,385
|
$
551,144
|
$
240,078
|
$
165,473
|
$
-
|
$ 2,007,080
|
|
|
|
|
|
|
|
|
|
Net sales - Nine
months ended 3/31/14 (2)
|
$
959,191
|
$
436,985
|
$
-
|
$
173,607
|
$
-
|
$ 1,569,783
|
|
|
|
|
|
|
|
|
|
% change - FY'15
adjusted net sales vs. FY'14 net sales
|
9.5%
|
26.1%
|
|
-4.7%
|
|
27.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
|
Nine months ended
3/31/15
|
|
|
|
|
|
|
|
Operating
income
|
$
141,031
|
$
29,618
|
$
16,505
|
$
10,660
|
$
(34,781)
|
$
163,033
|
|
Non-GAAP Adjustments
(1)
|
$
33,546
|
$
12,002
|
$
140
|
$
2,187
|
$
12,822
|
$
60,697
|
|
Adjusted operating
income
|
$
174,577
|
$
41,620
|
$
16,645
|
$
12,847
|
$
(21,959)
|
$
223,730
|
|
Adjusted operating
income margin
|
16.6%
|
7.6%
|
6.9%
|
7.8%
|
|
11.1%
|
|
|
|
|
|
|
|
|
|
Nine months ended
3/31/14
|
|
|
|
|
|
|
|
Operating
income
|
$
159,578
|
$
32,278
|
$
-
|
$
11,544
|
$
(35,686)
|
$
167,714
|
|
Non-GAAP Adjustments
(1)
|
$
482
|
$
2,209
|
$
-
|
$
866
|
$
10,866
|
$
14,423
|
|
Adjusted operating
income
|
$
160,060
|
$
34,487
|
$
-
|
$
12,410
|
$
(24,820)
|
$
182,137
|
|
Adjusted operating
income margin
|
16.7%
|
7.9%
|
|
7.1%
|
|
11.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 nine months ended
3/31/14
|
|
|
|
|
|
|
|
|
Webcast
Hain Celestial will host a conference
call and webcast at 8:30 AM Eastern
Time today to review its third 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 several conferences in May, all times indicated are eastern
daylight saving time: J.P. Morgan Global Consumer and Retail
Conference on Tuesday, May 19, 2015
at 7:45 AM in London; BMO Capital Markets Farm to Market
Conference on Thursday, May 21, 2015
at 11:00 AM and Citi 2015 Global
Consumer Conference on Wednesday, May
27th at 11:20 AM,
both in New York City. A live audio webcast and a replay of
the events 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 Café™, Hain Pure Foods®, Spectrum®,
Spectrum Essentials®, Walnut Acres Organic®, Imagine®, Almond
Dream®, Rice Dream®, Soy Dream®, WestSoy®, The Greek Gods®,
BluePrint®, FreeBird®, Plainville Farms®, Empire®, Kosher Valley®,
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®, Live Clean® 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 the Company's guidance for net sales and
earnings per diluted share for fiscal year 2015. 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 operating income, adjusted income from continuing
operations, adjusted income per diluted share from continuing
operations, adjusted EBITDA (defined below) 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 nine months ended March 31, 2015 and 2014 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 nine months ended March
31, 2015 and 2014, adjusted EBITDA was calculated as
follows:
|
|
|
3 Months
Ended
|
6 Months
Ended
|
|
|
|
3/31/2015
|
3/31/2014
|
3/31/2015
|
3/31/2014
|
|
|
|
(dollars in
thousands)
|
|
Net Income
|
$
33,394
|
$
35,241
|
$
96,824
|
$
104,127
|
|
Income
taxes
|
18,147
|
19,748
|
45,144
|
48,247
|
|
Interest expense,
net
|
5,670
|
5,699
|
17,644
|
16,193
|
|
Depreciation and
amortization
|
14,163
|
12,789
|
43,064
|
34,597
|
|
Impairment of long
lived assets
|
6,514
|
-
|
6,514
|
-
|
|
Equity in earnings of
affiliates
|
13
|
(83)
|
(315)
|
(2,128)
|
|
Stock based
compensation
|
2,935
|
3,020
|
8,934
|
9,657
|
|
Subtotal
|
80,836
|
76,414
|
217,809
|
210,693
|
|
Adjustments
(a)
|
7,916
|
11,405
|
45,927
|
16,052
|
|
Adjusted
EBITDA
|
$
88,752
|
$
87,819
|
$
263,736
|
$
226,745
|
|
|
|
|
|
|
|
|
(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. It also includes
loss from discontinued operations, net of tax.
|
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 nine-months ended March 31, 2015
and 2014, operating free cash flow was calculated as follows:
|
9 Months
Ended
|
|
3/31/2015
|
|
3/31/2014
|
|
(dollars in
thousands)
|
Cash flow provided by
operating activities
|
$
|
70,169
|
|
|
$
|
122,281
|
|
Purchases of
property, plant and equipment
|
(36,312)
|
|
|
(30,724)
|
|
Operating free cash
flow
|
$
|
33,857
|
|
|
$
|
91,577
|
|
Operating free cash flow for the nine-months ended March 31, 2015 was $33.9
million, compared to $91.6
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)
|
|
|
|
|
|
|
|
|
|
March 31,
2015
|
|
June 30,
2014
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
100,325
|
|
$
123,751
|
|
Accounts receivable,
net
|
337,516
|
|
287,915
|
|
Inventories
|
369,968
|
|
320,251
|
|
Deferred income
taxes
|
26,581
|
|
23,780
|
|
Prepaid expenses and
other current assets
|
46,514
|
|
47,906
|
|
|
Total current
assets
|
880,904
|
|
803,603
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
325,966
|
|
310,661
|
Goodwill,
net
|
1,107,328
|
|
1,134,368
|
Trademarks and other
intangible assets, net
|
631,866
|
|
651,482
|
Investments and joint
ventures
|
3,449
|
|
36,511
|
Other
assets
|
31,686
|
|
28,692
|
|
|
Total
assets
|
$
2,981,199
|
|
$ 2,965,317
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
226,497
|
|
$
239,162
|
|
Accrued expenses and
other current liabilities
|
82,319
|
|
84,906
|
|
Current portion of
long-term debt
|
33,870
|
|
100,096
|
|
|
Total current
liabilities
|
342,686
|
|
424,164
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
845,103
|
|
767,827
|
Deferred income
taxes
|
159,743
|
|
148,439
|
Other noncurrent
liabilities
|
5,834
|
|
5,020
|
|
|
Total
liabilities
|
1,353,366
|
|
1,345,450
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock
*
|
1,058
|
|
1,031
|
|
Additional paid-in
capital *
|
1,064,341
|
|
969,182
|
|
Retained
earnings
|
726,442
|
|
629,618
|
|
Accumulated other
comprehensive income (loss)
|
(105,937)
|
|
60,128
|
|
Subtotal
|
1,685,904
|
|
1,659,959
|
|
Treasury
stock
|
(58,071)
|
|
(40,092)
|
|
|
Total stockholders'
equity
|
1,627,833
|
|
1,619,867
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
2,981,199
|
|
$ 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
March 31,
|
|
Nine Months Ended
March 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
662,739
|
|
$
557,420
|
|
$
1,990,379
|
|
$
1,569,783
|
Cost of
sales
|
|
504,990
|
|
404,627
|
|
1,539,459
|
|
1,154,790
|
Gross
profit
|
|
157,749
|
|
152,793
|
|
450,920
|
|
414,993
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
83,068
|
|
78,268
|
|
262,613
|
|
227,092
|
Amortization/impairment of acquired
intangibles
|
|
10,189
|
|
4,133
|
|
19,001
|
|
11,248
|
Acquisition related
expenses including integration and
restructuring charges, net
|
|
4,298
|
|
6,763
|
|
6,273
|
|
8,939
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
60,194
|
|
63,629
|
|
163,033
|
|
167,714
|
|
|
|
|
|
|
|
|
|
Interest expense and
other expenses, net
|
|
8,640
|
|
5,946
|
|
21,380
|
|
15,839
|
Income before income
taxes and equity in earnings of
equity-method investees
|
|
51,554
|
|
57,683
|
|
141,653
|
|
151,875
|
Income tax
provision
|
|
18,147
|
|
19,748
|
|
45,144
|
|
48,247
|
Loss (income) of
equity-method investees, net of tax
|
|
13
|
|
(83)
|
|
(315)
|
|
(2,128)
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
33,394
|
|
38,018
|
|
96,824
|
|
105,756
|
Loss from
discontinued operations, net of tax
|
|
-
|
|
(2,777)
|
|
-
|
|
(1,629)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
33,394
|
|
$
35,241
|
|
$
96,824
|
|
$
104,127
|
|
|
|
|
|
|
|
|
|
Basic net income per
share *:
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
$
0.33
|
|
$
0.38
|
|
$
0.95
|
|
$
1.09
|
From discontinued
operations
|
|
-
|
|
(0.03)
|
|
-
|
|
(0.02)
|
Net income per share
- basic
|
|
$
0.33
|
|
$
0.35
|
|
$
0.95
|
|
$
1.07
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share *:
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
$
0.32
|
|
$
0.37
|
|
$
0.94
|
|
$
1.07
|
From discontinued
operations
|
|
-
|
|
(0.03)
|
|
-
|
|
(0.02)
|
Net income per share
- diluted
|
|
$
0.32
|
|
$
0.34
|
|
$
0.94
|
|
$
1.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding *:
|
|
|
|
|
|
|
|
|
Basic
|
|
102,252
|
|
99,390
|
|
101,401
|
|
96,946
|
Diluted
|
|
103,796
|
|
101,502
|
|
103,226
|
|
99,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Share and
per share amounts for the three and nine months ended March 31,
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.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2015 GAAP
|
Adjustments
|
|
2015
Adjusted
|
2014
Adjusted
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Net sales
|
|
$
662,739
|
$
-
|
|
$
662,739
|
$
557,420
|
Cost of
sales
|
|
504,990
|
(5,928)
|
|
499,062
|
403,531
|
Gross
profit
|
|
157,749
|
5,928
|
|
163,677
|
153,889
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
83,068
|
(1,616)
|
|
81,452
|
77,500
|
Amortization/impairment of acquired
intangibles
|
|
10,189
|
(5,510)
|
|
4,679
|
4,133
|
Acquisition related
expenses including integration and
restructuring charges, net
|
|
4,298
|
(4,298)
|
|
-
|
-
|
|
|
|
|
|
|
|
Operating
income
|
|
60,194
|
17,352
|
|
77,546
|
72,256
|
|
|
|
|
|
|
|
Interest expense and
other expenses, net
|
|
8,640
|
(2,216)
|
|
6,424
|
6,859
|
Income before income
taxes and equity in earnings of
equity-method investees
|
|
51,554
|
19,568
|
|
71,122
|
65,397
|
Income tax
provision
|
|
18,147
|
6,427
|
|
24,574
|
21,116
|
Loss (income) of
equity-method investees, net of tax
|
|
13
|
-
|
|
13
|
(241)
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
33,394
|
$
13,141
|
|
$
46,535
|
$
44,522
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations - basic *
|
|
$
0.33
|
$
0.13
|
|
$
0.46
|
$
0.45
|
Income per share from
continuing operations - diluted *
|
|
$
0.32
|
$
0.13
|
|
$
0.45
|
$
0.44
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding *:
|
|
|
|
|
|
|
Basic
|
|
102,252
|
|
|
102,252
|
99,390
|
Diluted
|
|
103,796
|
|
|
103,796
|
101,502
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
|
|
|
|
|
|
Ashland factory and
related expenses
|
|
$
2,142
|
$
814
|
|
$
-
|
$
-
|
UK factory start-up
costs
|
|
2,512
|
521
|
|
977
|
230
|
Other integration
costs
|
|
1,274
|
427
|
|
119
|
27
|
Cost of
sales
|
|
5,928
|
1,762
|
|
1,096
|
257
|
|
|
|
|
|
|
|
Tilda insurance
consultancy and other start-up/integration costs
|
|
1,098
|
275
|
|
-
|
-
|
Litigation
expenses
|
|
518
|
197
|
|
768
|
292
|
Selling, general and
administrative expenses
|
|
1,616
|
472
|
|
768
|
292
|
|
|
|
|
|
|
|
Tradename impairment
charge
|
|
5,510
|
1,102
|
|
-
|
-
|
Amortization/impairment of acquired
intangibles
|
|
5,510
|
1,102
|
|
-
|
-
|
|
|
|
|
|
|
|
Acquisition related
fees and expenses, integration and
restructuring charges
|
|
4,298
|
1,463
|
|
6,918
|
2,481
|
Contingent
consideration (income) expense, net
|
|
-
|
-
|
|
(155)
|
-
|
Acquisition related
expenses including integration and
restructuring charges, net
|
|
4,298
|
1,463
|
|
6,763
|
2,481
|
|
|
|
|
|
|
|
Unrealized currency
impacts
|
|
5,141
|
1,628
|
|
(524)
|
(213)
|
Gain on pre-existing
investment in Empire Kosher
|
|
(2,922)
|
-
|
|
-
|
-
|
Gain on disposal of
investment held for sale
|
|
(3)
|
-
|
|
(467)
|
(177)
|
Interest accretion
and other items, net
|
|
-
|
-
|
|
78
|
20
|
Interest expense and
other expenses, net
|
|
2,216
|
1,628
|
|
(913)
|
(370)
|
|
|
|
|
|
|
|
Hain Pure Protein
Corporation mortality losses
|
|
-
|
-
|
|
158
|
-
|
Loss (income) of
equity-method investees, net of tax
|
|
-
|
-
|
|
158
|
-
|
|
|
|
|
|
|
|
Nondeductible
acquisition related transaction expenses
|
|
-
|
-
|
|
-
|
(1,292)
|
Income tax
provision
|
|
-
|
-
|
|
-
|
(1,292)
|
|
|
|
|
|
|
|
Total
adjustments
|
|
$
19,568
|
$
6,427
|
|
$
7,872
|
$
1,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Share and
per share amounts for the three months ended March 31, 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.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31,
|
|
|
2015 GAAP
|
Adjustments
|
|
2015
Adjusted
|
2014
Adjusted
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Net sales
|
|
$
1,990,379
|
$
16,701
|
|
$
2,007,080
|
$
1,569,783
|
Cost of
sales
|
|
1,539,459
|
(25,059)
|
|
1,514,400
|
1,150,753
|
Gross
profit
|
|
450,920
|
41,760
|
|
492,680
|
419,030
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
262,613
|
(7,154)
|
|
255,459
|
225,645
|
Amortization/impairment of acquired
intangibles
|
|
19,001
|
(5,510)
|
|
13,491
|
11,248
|
Acquisition related
expenses including integration and
restructuring charges, net
|
|
6,273
|
(6,273)
|
|
-
|
-
|
|
|
|
|
|
|
|
Operating
income
|
|
163,033
|
60,697
|
|
223,730
|
182,137
|
|
|
|
|
|
|
|
Interest expense and
other expenses, net
|
|
21,380
|
(2,466)
|
|
18,914
|
18,924
|
Income before income
taxes and equity in earnings of
equity-method investees
|
|
141,653
|
63,163
|
|
204,816
|
163,213
|
Income tax
provision
|
|
45,144
|
23,257
|
|
68,401
|
52,964
|
Loss (income) of
equity-method investees, net of tax
|
|
(315)
|
-
|
|
(315)
|
(2,286)
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$
96,824
|
$
39,906
|
|
$
136,730
|
$
112,535
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations - basic *
|
|
$
0.95
|
$
0.40
|
|
$
1.35
|
$
1.16
|
|
|
|
|
|
|
|
Income per share from
continuing operations - diluted *
|
|
$
0.94
|
$
0.38
|
|
$
1.32
|
$
1.13
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding *:
|
|
|
|
|
|
|
Basic
|
|
101,401
|
|
|
101,401
|
96,946
|
Diluted
|
|
103,226
|
|
|
103,226
|
99,246
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 allowance
for fire
|
|
900
|
187
|
|
-
|
-
|
Ashland factory and
related expenses
|
|
2,142
|
814
|
|
-
|
-
|
UK factory start-up
costs
|
|
8,533
|
1,770
|
|
3,120
|
814
|
Acquisition related
and other integration costs
|
|
2,797
|
817
|
|
480
|
109
|
Co-pack contract
termination costs
|
|
-
|
-
|
|
437
|
166
|
Cost of
sales
|
|
25,059
|
7,599
|
|
4,037
|
1,089
|
|
|
|
|
|
|
|
Nut butter
recall
|
|
4,909
|
1,864
|
|
-
|
-
|
Tilda insurance
consultancy and other start-up/integration costs
|
|
1,354
|
352
|
|
-
|
-
|
Litigation
expenses
|
|
891
|
339
|
|
1,223
|
465
|
Expenses related to
third party sale of common stock
|
|
-
|
-
|
|
224
|
85
|
Selling, general and
administrative expenses
|
|
7,154
|
2,555
|
|
1,447
|
550
|
|
|
|
|
|
|
|
Tradename impairment
charge
|
|
5,510
|
1,102
|
|
-
|
-
|
Amortization/impairment of acquired
intangibles
|
|
5,510
|
1,102
|
|
-
|
-
|
|
|
|
|
|
|
|
Acquisition related
fees and expenses, integration and
restructuring charges
|
|
5,992
|
2,100
|
|
10,875
|
3,795
|
Contingent
consideration (income) expense, net
|
|
281
|
-
|
|
(1,936)
|
(1,117)
|
Acquisition related
expenses including integration and
restructuring charges, net
|
|
6,273
|
2,100
|
|
8,939
|
2,678
|
|
|
|
|
|
|
|
Unrealized currency
impacts
|
|
10,957
|
3,561
|
|
(2,941)
|
(1,260)
|
Gain on pre-existing
investments in HPPC and Empire Kosher
|
|
(8,256)
|
-
|
|
-
|
-
|
Gain on disposal of
investment held for sale
|
|
(314)
|
-
|
|
(701)
|
(266)
|
Interest accretion
and other items, net
|
|
79
|
30
|
|
557
|
184
|
Interest expense and
other expenses, net
|
|
2,466
|
3,591
|
|
(3,085)
|
(1,342)
|
|
|
|
|
|
|
|
Hain Pure Protein
Corporation mortality losses
|
|
-
|
-
|
|
158
|
-
|
Loss (income) of
equity-method investees, net of tax
|
|
-
|
-
|
|
158
|
-
|
|
|
|
|
|
|
|
Discrete tax benefit
resulting from enacted tax rate change
|
|
-
|
-
|
|
-
|
3,777
|
Increase in
unrecognized tax benefits
|
|
-
|
-
|
|
-
|
(550)
|
Nondeductible
acquisition related transaction expenses
|
|
-
|
-
|
|
-
|
(1,485)
|
Income tax
provision
|
|
-
|
-
|
|
-
|
1,742
|
|
|
|
|
|
|
|
Total
adjustments
|
|
$
63,163
|
$
23,257
|
|
$
11,496
|
$
4,717
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Share and
per share amounts for the nine months ended March 31, 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.
|
Logo -
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visit:http://www.prnewswire.com/news-releases/hain-celestial-announces-record-third-quarter-fiscal-year-2015-net-sales-and-adjusted-earnings-per-share-300078397.html
SOURCE The Hain Celestial Group, Inc.