LAKE SUCCESS, N.Y.,
Aug. 18, 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 fourth quarter and fiscal
year ended June 30, 2015.
PERFORMANCE HIGHLIGHTS
Fourth Quarter Fiscal Year 2015
- Record fourth quarter net sales of $698.1 million, a 20% increase over the prior
year period;
- Earnings per diluted share of $0.68, a 94% increase; adjusted earnings per
diluted share of $0.55, a 22%
increase;
- Operating income of $74.7
million, 11% of net sales; adjusted operating income of
$90.3 million, 13% of net sales.
Fiscal Year 2015
- Record net sales of $2.69
billion, a 25% increase; adjusted net sales of $2.71 billion, adjusted for the nut butter
voluntary recall in August 2014, a
26% increase over the prior year period;
- Earnings per diluted share of $1.62, a 16% increase; adjusted earnings per
diluted share of $1.88, an 18%
increase;
- Operating income of $237.7
million, 9% of net sales; adjusted operating income of
$314.1 million, 12% of net
sales.
"We ended the year with record net sales and earnings growth
fueled by strong worldwide demand for our diverse portfolio of
leading organic and natural brands across many product categories,
sales channels and geographies," said Irwin
D. Simon, Founder, President and Chief Executive Officer of
Hain Celestial. "We achieved these results while overcoming
numerous challenges during the year including the largest voluntary
recall in the Company's history, a fire that limited production for
one of our largest brands and disruptions with some of our
distributor and retail customers. Our global team did a
tremendous job in both the fourth quarter and fiscal year with
product innovation, controlling expenses, improving productivity
and successfully integrating acquisitions by leveraging our
infrastructure."
Fourth Quarter 2015
Hain Celestial US reported record fourth quarter net sales of
$332.8 million. In the
United Kingdom, net sales were
$184.9 million, and the Rest of the
World segment reported net sales of $62.0
million, which also includes the recently acquired Belvedere
International, Inc. in Canada with
its Live Clean® brand. The Hain Pure Protein segment (HPPC)
reported net sales of $118.5 million,
which includes the recently acquired Empire® brand of kosher
foods. The Company had strong brand sales in constant
currency led by certain global brands including Terra®, Tilda®,
Imagine®, Earth's Best®, Avalon Organics® and Alba Botanica® with
strong performance from Frank
Cooper's®, Bearitos®, Rosetto®, Danival®, Lima®, Sensible
Portions®, Hain Pure Foods® and Spectrum®. Net sales of
Rudi's Organic Bakery®, Plainville Farms®, FreeBird®, Empire®,
Kosher Valley® and Live Clean® brands acquired during or after the
fourth quarter of fiscal year 2014 also contributed to the
growth.
The Company earned net income from continuing operations of
$71.1 million, a 99% increase, and
adjusted net income of $57.2 million,
a 24% increase, compared to the prior year fourth quarter.
Earnings per diluted share for the fourth quarter were $0.68, a 94% increase versus the prior year
period, which includes a $20.7
million tax benefit resulting from an election made during
the quarter to change the tax status of one of the Company's
international subsidiaries. On an adjusted basis earnings per
diluted share for the fourth quarter were $0.55, a 22% increase. Refer to Non-GAAP
Financial Measures in this press release for adjustments.
Fiscal Year 2015
Hain Celestial US reported record net sales of $1.367 billion. In the United Kingdom, net sales were $736.0 million, and the Rest of World segment
reported net sales of $226.5
million. Rest of World includes the recently acquired
Live Clean® brand. HPPC, which includes the recently acquired
Empire® brand of kosher foods, reported net sales of $358.6 million. The Company had strong
brand sales in constant currency led by global brands including
Sensible Portions®, Natumi®, Terra®, Danival®, Garden of Eatin'®,
Earth's Best®, Avalon Organics®, Alba Botanica® and Jason® with
strong performance from Bearitos®, Westbrae® Earth's Best® and
Frank Cooper's®. Net sales of
Plainville Farms®, FreeBird®, Empire®, Kosher Valley® and Live
Clean® brands acquired after fiscal year 2014 also contributed to
the growth.
The Company earned net income from continuing operations of
$167.9 million, a 19% increase, and
adjusted net income of $193.9
million, a 22% increase, for the fiscal year. Earnings
per diluted share for the fiscal year were $1.62, a 16% increase, and on an adjusted basis
were $1.88, an 18% increase.
Refer to Non-GAAP Financial Measures in this press release for
adjustments.
Fiscal Year 2015 Achievements
The Company highlighted several of its accomplishments during
fiscal year 2015:
- Completed three strategic acquisitions:
- Hain Pure Protein Corporation (Plainville Farms® and FreeBird®
brands);
- EK Holdings, Inc. (Empire® Kosher and Kosher Valley®
brands);
- Belvedere International, Inc. (Live Clean® brand);
- Worldwide sales reached a record $2.7
billion;
- Achieved record adjusted EBITDA of $375
million;
- Hain Celestial US consumption measured by Nielsen of top 200
SKUs was up 11% with distribution up 5%;
- Introduced over 200 new innovative products worldwide;
- Delivered in excess of $55
million in worldwide productivity savings.
"Our outlook for growth in fiscal 2016 and beyond remains
robust. We believe Hain Celestial is well-positioned as the
consumption of branded organic and natural products continues to
rise and our distribution footprint further evolves on a global
basis in both new and existing markets across our broad network of
sales channels," concluded Irwin
Simon.
Fiscal Year 2016 Guidance
The Company provided annual guidance for fiscal year
2016:
- Total net sales range of $2.97 billion
to $3.11 billion, an increase of approximately 10% to 15% as
compared to fiscal year 2015;
- Earnings range of $2.11 to $2.26
per diluted share, an increase of 12% to 20% as compared to fiscal
year 2015.
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 matters 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 2016, 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 three months and twelve months
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
6/30/15
|
$
332,776
|
$
184,852
|
$
118,504
|
$
62,004
|
$
-
|
$
698,136
|
Net sales
-
Three months ended
6/30/14
|
$
322,984
|
$
200,469
|
$
-
|
$
60,375
|
$
-
|
$
583,828
|
|
|
|
|
|
|
|
% change -
FY'15 net sales vs.
FY'14 net sales *
|
3.0%
|
-7.8%
|
|
2.7%
|
|
19.6%
|
|
|
|
|
|
|
|
* The calculated
% change does not
reflect the impact of the
nut butter recall or
foreign currency translation as compared to the prior period.
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
Three months ended
6/30/15
|
|
|
|
|
|
|
Operating
income
|
$
58,870
|
$
16,604
|
$
9,974
|
$
5,778
|
$
(16,514)
|
$
74,712
|
Non-GAAP Adjustments
(1)
|
$
3,364
|
$
3,256
|
$
119
|
$
-
|
$
8,869
|
$
15,608
|
Adjusted operating
income
|
$
62,234
|
$
19,860
|
$
10,093
|
$
5,778
|
$
(7,645)
|
$
90,320
|
Adjusted operating
income margin
|
18.7%
|
10.7%
|
8.5%
|
9.3%
|
|
12.9%
|
|
|
|
|
|
|
|
Three months ended
6/30/14
|
|
|
|
|
|
|
Operating
income
|
$
46,286
|
$
20,383
|
$
-
|
$
5,387
|
$
(12,033)
|
$
60,023
|
Non-GAAP Adjustments
(1)
|
$
6,000
|
$
7,302
|
$
-
|
$
-
|
$
583
|
$
13,885
|
Adjusted operating
income
|
$
52,286
|
$
27,685
|
$
-
|
$
5,387
|
$
(11,450)
|
$
73,908
|
Adjusted operating
income margin
|
16.2%
|
13.8%
|
|
8.9%
|
|
12.7%
|
|
|
|
|
|
|
|
(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
-
Twelve months ended
6/30/15
|
$ 1,367,388
|
$
735,996
|
$
358,582
|
$
226,549
|
$
-
|
$ 2,688,515
|
Non-GAAP Adjustments
(1)
|
$
15,773
|
$
-
|
$
-
|
$
928
|
$
-
|
$
16,701
|
Adjusted net sales -
Twelve months ended 6/30/15
|
$ 1,383,161
|
$
735,996
|
$
358,582
|
$
227,477
|
$
-
|
$ 2,705,216
|
|
|
|
|
|
|
|
Net sales - Twelve
months ended 6/30/14 (2)
|
$ 1,282,175
|
$
637,454
|
$
-
|
$
233,982
|
$
-
|
$ 2,153,611
|
|
|
|
|
|
|
|
% change - FY'15
adjusted net sales vs. FY'14 net sales
|
7.9%
|
15.5%
|
|
-2.8%
|
|
25.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
Twelve months ended
6/30/15
|
|
|
|
|
|
|
Operating
income
|
$
199,901
|
$
46,222
|
$
26,479
|
$
16,438
|
$
(51,295)
|
$
237,745
|
Non-GAAP Adjustments
(1)
|
$
36,910
|
$
15,258
|
$
259
|
$
2,187
|
$
21,690
|
$
76,304
|
Adjusted operating
income
|
$
236,811
|
$
61,480
|
$
26,738
|
$
18,625
|
$
(29,605)
|
$
314,049
|
Adjusted operating
income margin
|
17.1%
|
8.4%
|
7.5%
|
8.2%
|
|
11.6%
|
|
|
|
|
|
|
|
Twelve months ended
6/30/14
|
|
|
|
|
|
|
Operating
income
|
$
205,864
|
$
52,661
|
$
-
|
$
16,931
|
$
(47,719)
|
$
227,737
|
Non-GAAP Adjustments
(1)
|
$
6,482
|
$
9,510
|
$
-
|
$
866
|
$
11,449
|
$
28,307
|
Adjusted operating
income
|
$
212,346
|
$
62,171
|
$
-
|
$
17,797
|
$
(36,270)
|
$
256,044
|
Adjusted operating
income margin
|
16.6%
|
9.8%
|
|
7.6%
|
|
11.9%
|
|
|
|
|
|
|
|
(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 twelve months ended
6/30/14
|
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 2015 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 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®, Joya®, 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 (i) the Company's guidance for net sales and earnings per
diluted share for fiscal year 2016 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 2016 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; risks associated
with international sales and operations; changes in fuel, raw
material and commodity costs; changes in, or the failure to comply
with, government laws and regulations; the availability of organic
and natural ingredients; the loss of one or more of the Company's
manufacturing facilities; independent co-packers or distribution
centers; the ability to manage the Company's supply chain
effectively; the ability to use the Company's trademarks;
reputational damage; product liability; outbreaks of diseases or
food-borne illnesses; 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 Securities and
Exchange Commission, 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 and twelve months ended
June 30, 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 twelve months ended June 30, 2015 and 2014, adjusted EBITDA was
calculated as follows:
|
|
|
3 Months
Ended
|
12 Months
Ended
|
|
|
|
6/30/2015
|
6/30/2014
|
6/30/2015
|
6/30/2014
|
|
|
|
(dollars in
thousands)
|
|
Net Income
|
$
71,072
|
$
35,724
|
$
167,896
|
$
139,851
|
|
Income
taxes
|
2,739
|
21,851
|
47,883
|
70,098
|
|
Interest
expense,
net
|
5,726
|
5,791
|
23,369
|
21,985
|
|
Depreciation
and
amortization
|
13,523
|
13,443
|
56,587
|
48,040
|
|
Impairment of
long
lived
assets
|
-
|
-
|
6,514
|
-
|
|
Equity in
earnings
of
affiliates
|
(174)
|
(1,857)
|
(489)
|
(3,985)
|
|
Stock
based
compensation
|
3,263
|
2,792
|
12,197
|
12,449
|
|
Subtotal
|
96,149
|
77,744
|
313,957
|
288,438
|
|
Adjustments
(a)
|
15,608
|
13,885
|
61,536
|
29,937
|
|
Adjusted
EBITDA
|
$
111,757
|
$
91,629
|
$
375,493
|
$
318,375
|
|
|
|
|
|
|
|
|
(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, other items, net and taxes.
|
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, 2015
and 2014, operating free cash flow was calculated as follows:
|
Fiscal Year
Ended
|
|
6/30/2015
|
|
6/30/2014
|
|
(dollars in
thousands)
|
Cash flow provided by
operating activities
|
$
|
185,482
|
|
|
$
|
184,768
|
|
Purchases of
property, plant and equipment
|
(51,217)
|
|
|
(41,611)
|
|
Operating free cash
flow
|
$
|
134,265
|
|
|
$
|
143,157
|
|
Operating free cash flow for the fiscal year ended June 30, 2015 was $134.3
million, compared to $143.2
million in the prior year period. Our current period
operating free cash flow was impacted primarily by the effects of
the nut butter voluntary recall and higher capital
expenditures.
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
June 30,
2015
|
|
June 30,
2014
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
166,922
|
|
$
123,751
|
|
Accounts receivable,
net
|
320,197
|
|
287,915
|
|
Inventories
|
382,211
|
|
320,251
|
|
Deferred income
taxes
|
20,758
|
|
23,780
|
|
Prepaid expenses and
other current assets
|
42,931
|
|
47,906
|
|
|
Total current
assets
|
933,019
|
|
803,603
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
344,262
|
|
310,661
|
Goodwill,
net
|
1,136,079
|
|
1,134,368
|
Trademarks and other
intangible assets, net
|
647,754
|
|
651,482
|
Investments and joint
ventures
|
2,305
|
|
36,511
|
Other
assets
|
33,851
|
|
28,692
|
|
|
Total
assets
|
$
3,097,270
|
|
$ 2,965,317
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
251,999
|
|
$
239,162
|
|
Accrued expenses and
other current liabilities
|
79,167
|
|
84,906
|
|
Current portion of
long-term debt
|
31,275
|
|
100,096
|
|
|
Total current
liabilities
|
362,441
|
|
424,164
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
812,608
|
|
767,827
|
Deferred income
taxes
|
145,297
|
|
148,439
|
Other noncurrent
liabilities
|
5,237
|
|
5,020
|
|
|
Total
liabilities
|
1,325,583
|
|
1,345,450
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common stock
*
|
1,058
|
|
1,031
|
|
Additional paid-in
capital *
|
1,073,671
|
|
969,182
|
|
Retained
earnings
|
797,514
|
|
629,618
|
|
Accumulated other
comprehensive income (loss)
|
(42,406)
|
|
60,128
|
|
Subtotal
|
1,829,837
|
|
1,659,959
|
|
Treasury
stock
|
(58,150)
|
|
(40,092)
|
|
|
Total stockholders'
equity
|
1,771,687
|
|
1,619,867
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
3,097,270
|
|
$ 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
June 30,
|
|
Twelve Months
Ended June 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$ 698,136
|
|
$ 583,828
|
|
$ 2,688,515
|
|
$ 2,153,611
|
Cost of
sales
|
|
530,439
|
|
431,628
|
|
2,069,898
|
|
1,586,418
|
Gross
profit
|
|
167,697
|
|
152,200
|
|
618,617
|
|
567,193
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
85,903
|
|
84,195
|
|
348,517
|
|
311,288
|
Amortization/impairment of acquired
intangibles
|
4,494
|
|
4,352
|
|
23,495
|
|
15,600
|
Acquisition related
expenses including integration and
restructuring charges, net
|
2,588
|
|
3,630
|
|
8,860
|
|
12,568
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
74,712
|
|
60,023
|
|
237,745
|
|
227,737
|
|
|
|
|
|
|
|
|
|
Interest expense and
other expenses, net
|
1,075
|
|
4,304
|
|
22,455
|
|
20,143
|
Income before income
taxes and equity in earnings of
equity-method investees
|
73,637
|
|
55,719
|
|
215,290
|
|
207,594
|
Income tax
provision
|
|
2,739
|
|
21,852
|
|
47,883
|
|
70,099
|
(Income) of
equity-method investees, net of tax
|
(174)
|
|
(1,857)
|
|
(489)
|
|
(3,985)
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
71,072
|
|
35,724
|
|
167,896
|
|
141,480
|
Loss from
discontinued operations, net of tax
|
-
|
|
-
|
|
-
|
|
(1,629)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
71,072
|
|
$
35,724
|
|
$ 167,896
|
|
$ 139,851
|
|
|
|
|
|
|
|
|
|
Basic net income per
share *:
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
$
0.69
|
|
$
0.36
|
|
$
1.65
|
|
$
1.45
|
From discontinued
operations
|
|
-
|
|
-
|
|
-
|
|
(0.02)
|
Net income per share
- basic
|
|
$
0.69
|
|
$
0.36
|
|
$
1.65
|
|
$
1.43
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share *:
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
$
0.68
|
|
$
0.35
|
|
$
1.62
|
|
$
1.42
|
From discontinued
operations
|
|
-
|
|
-
|
|
-
|
|
(0.02)
|
Net income per share
- diluted
|
|
$
0.68
|
|
$
0.35
|
|
$
1.62
|
|
$
1.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding *:
|
|
|
|
|
|
|
|
Basic
|
|
102,610
|
|
100,158
|
|
101,703
|
|
97,750
|
Diluted
|
|
104,005
|
|
102,288
|
|
103,421
|
|
100,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Share and
per share amounts for the three and twelve months ended 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.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30,
|
|
|
2015 GAAP
|
Adjustments
|
|
2015
Adjusted
|
2014
Adjusted
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Net sales
|
|
$
698,136
|
$
-
|
|
$ 698,136
|
$ 583,828
|
Cost of
sales
|
|
530,439
|
(6,343)
|
|
524,096
|
421,764
|
Gross
profit
|
|
167,697
|
6,343
|
|
174,040
|
162,064
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
85,903
|
(6,677)
|
|
79,226
|
83,804
|
Amortization/impairment of acquired
intangibles
|
4,494
|
-
|
|
4,494
|
4,352
|
Acquisition related
expenses including integration and
restructuring charges, net
|
2,588
|
(2,588)
|
|
-
|
-
|
|
|
|
|
|
|
|
Operating
income
|
|
74,712
|
15,608
|
|
90,320
|
73,908
|
|
|
|
|
|
|
|
Interest expense and
other expenses, net
|
1,075
|
5,559
|
|
6,634
|
5,651
|
Income before income
taxes and equity in earnings of
equity-method investees
|
73,637
|
10,049
|
|
83,686
|
68,257
|
Income tax
provision
|
|
2,739
|
23,920
|
|
26,659
|
23,189
|
(Income) of
equity-method investees, net of tax
|
(174)
|
-
|
|
(174)
|
(976)
|
|
|
|
|
|
|
|
Income from
continuing operations
|
$ 71,072
|
$ (13,871)
|
|
$ 57,201
|
$ 46,044
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations - basic *
|
$
0.69
|
$
(0.13)
|
|
$
0.56
|
$
0.46
|
Income per share from
continuing operations - diluted *
|
$
0.68
|
$
(0.13)
|
|
$
0.55
|
$
0.45
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding *:
|
|
|
|
|
|
Basic
|
|
102,610
|
|
|
102,610
|
100,158
|
Diluted
|
|
104,005
|
|
|
104,005
|
102,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
$ 2,004
|
$
761
|
|
$ 6,000
|
$ 2,179
|
UK factory start-up
costs
|
|
2,900
|
602
|
|
2,882
|
656
|
BluePrint and other
integration costs
|
|
1,439
|
548
|
|
982
|
223
|
Cost of sales
|
|
6,343
|
1,911
|
|
9,864
|
3,058
|
|
|
|
|
|
|
|
Litigation
expenses
|
|
6,312
|
2,399
|
|
391
|
148
|
Other integration
costs
|
|
365
|
81
|
|
-
|
-
|
Selling, general and administrative expenses
|
6,677
|
2,480
|
|
391
|
148
|
|
|
|
|
|
|
|
Acquisition related
fees and expenses, integration and
restructuring charges
|
2,588
|
768
|
|
5,310
|
1,477
|
Contingent
consideration income
|
-
|
-
|
|
(1,680)
|
(638)
|
Acquisition related expenses including integration and
restructuring charges, net
|
2,588
|
768
|
|
3,630
|
839
|
|
|
|
|
|
|
|
Unrealized currency
impacts
|
|
(5,559)
|
(1,909)
|
|
(570)
|
(182)
|
Gain on disposal of
investment held for sale
|
-
|
-
|
|
(809)
|
(307)
|
Interest accretion
and other items, net
|
-
|
-
|
|
32
|
7
|
Interest expense and other expenses, net
|
(5,559)
|
(1,909)
|
|
(1,347)
|
(482)
|
|
|
|
|
|
|
|
Net loss from
Hutchison Hain Organic Holdings Limited
discontinued operation
|
-
|
-
|
|
(881)
|
-
|
(Income) of equity-method investees, net of tax
|
-
|
-
|
|
(881)
|
-
|
|
|
|
|
|
|
|
Gain on tax
restructuring
|
-
|
20,670
|
|
-
|
-
|
Valuation allowances
due to factory start-up costs
|
-
|
-
|
|
-
|
(2,226)
|
Income tax provision
|
|
-
|
20,670
|
|
-
|
(2,226)
|
|
|
|
|
|
|
|
Total
adjustments
|
|
$ 10,049
|
$ 23,920
|
|
$ 11,657
|
$ 1,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Share and
per share amounts for the three months ended 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.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended
June 30,
|
|
|
2015 GAAP
|
Adjustments
|
|
2015
Adjusted
|
2014
Adjusted
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Net sales
|
|
$ 2,688,515
|
$
16,701
|
|
$
2,705,216
|
$ 2,153,611
|
Cost of
sales
|
|
2,069,898
|
(31,402)
|
|
2,038,496
|
1,572,517
|
Gross
profit
|
|
618,617
|
48,103
|
|
666,720
|
581,094
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
348,517
|
(13,831)
|
|
334,686
|
309,450
|
Amortization/impairment of acquired
intangibles
|
23,495
|
(5,510)
|
|
17,985
|
15,600
|
Acquisition related
expenses including integration and
restructuring charges, net
|
8,860
|
(8,860)
|
|
-
|
-
|
|
|
|
|
|
|
|
Operating
income
|
|
237,745
|
76,304
|
|
314,049
|
256,044
|
|
|
|
|
|
|
|
Interest expense and
other expenses, net
|
22,455
|
3,093
|
|
25,548
|
24,575
|
Income before income
taxes and equity in earnings of
equity-method investees
|
215,290
|
73,211
|
|
288,501
|
231,469
|
Income tax
provision
|
|
47,883
|
47,177
|
|
95,060
|
76,153
|
(Income) of
equity-method investees, net of tax
|
|
(489)
|
-
|
|
(489)
|
(3,262)
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
$ 167,896
|
$
26,034
|
|
$ 193,930
|
$ 158,578
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations - basic *
|
$
1.65
|
$
0.26
|
|
$
1.91
|
$
1.62
|
|
|
|
|
|
|
|
Income per share from
continuing operations - diluted *
|
$
1.62
|
$
0.26
|
|
$
1.88
|
$
1.59
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding *:
|
|
|
|
|
|
Basic
|
|
101,703
|
|
|
101,703
|
97,750
|
Diluted
|
|
103,421
|
|
|
103,421
|
100,006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
13,574
|
5,158
|
|
6,000
|
2,179
|
European non-dairy
beverage withdrawal
|
|
1,259
|
428
|
|
-
|
-
|
Fakenham allowance
for fire
|
|
900
|
187
|
|
-
|
-
|
Acquisition related
integration costs
|
|
4,236
|
1,365
|
|
4,102
|
1,037
|
UK factory start-up
costs
|
|
11,433
|
2,372
|
|
3,362
|
765
|
Co-pack contract
termination costs
|
|
-
|
-
|
|
437
|
166
|
Cost of sales
|
|
31,402
|
9,510
|
|
13,901
|
4,147
|
|
|
|
|
|
|
|
Nut butter
recall
|
|
4,909
|
1,864
|
|
-
|
-
|
Litigation
expenses
|
|
7,203
|
2,751
|
|
1,614
|
613
|
Tilda insurance
consultancy and other start-up/integration costs
|
1,719
|
420
|
|
-
|
-
|
Expenses related to
third party sale of common stock
|
-
|
-
|
|
224
|
85
|
Selling, general and administrative expenses
|
|
13,831
|
5,035
|
|
1,838
|
698
|
|
|
|
|
|
|
|
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
|
8,579
|
2,868
|
|
16,184
|
5,272
|
Contingent
consideration (income) expense, net
|
|
281
|
-
|
|
(3,616)
|
(1,755)
|
Acquisition related expenses including integration and
restructuring charges, net
|
8,860
|
2,868
|
|
12,568
|
3,517
|
|
|
|
|
|
|
|
Unrealized currency
impacts
|
|
5,398
|
1,652
|
|
(3,511)
|
(1,442)
|
Gain on pre-existing
investments in HPPC and Empire Kosher
|
(8,256)
|
-
|
|
-
|
-
|
Gain on disposal of
investment held for sale
|
(314)
|
-
|
|
(1,510)
|
(573)
|
Interest accretion
and other items, net
|
79
|
30
|
|
589
|
191
|
Interest expense and other expenses, net
|
(3,093)
|
1,682
|
|
(4,432)
|
(1,824)
|
|
|
|
|
|
|
|
Net income from
Hutchison Hain Organic Holdings Limited discontinued
operation
|
-
|
-
|
|
(881)
|
-
|
Hain Pure Protein
Corporation mortality losses
|
-
|
-
|
|
158
|
-
|
(Income) of equity-method investees, net of tax
|
-
|
-
|
|
(723)
|
-
|
|
|
|
|
|
|
|
Gain on tax
restructuring
|
|
-
|
20,670
|
|
-
|
-
|
Change in valuation
allowance
|
|
-
|
-
|
|
-
|
(2,226)
|
Discrete tax benefit
resulting from enacted tax rate change
|
-
|
-
|
|
-
|
3,777
|
Change in
unrecognized tax benefits
|
|
-
|
-
|
|
-
|
(550)
|
Nondeductible
acquisition related transaction expenses
|
-
|
-
|
|
-
|
(1,485)
|
Income tax provision
|
|
-
|
20,670
|
|
-
|
(484)
|
|
|
|
|
|
|
|
Total
adjustments
|
|
$
73,211
|
$
47,177
|
|
$ 23,152
|
$ 6,054
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Share and
per share amounts for the twelve months ended 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.
|
|
|
|
|
|
|
|
|
Logo -
http://photos.prnewswire.com/prnh/20130502/NY06743LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hain-celestial-announces-record-fourth-quarter-and-fiscal-year-2015-net-sales-and-earnings-per-diluted-share-300129770.html
SOURCE The Hain Celestial Group, Inc.