PITTSBURGH, April 18, 2017 /PRNewswire/ -- GNC Holdings,
Inc. (NYSE: GNC) (the "Company") reported consolidated revenue of
$644.8 million in the first quarter
of 2017, compared with consolidated revenue of $668.9 million for the first quarter of 2016.
Same store sales decreased 3.9% in domestic company-owned stores
(including GNC.com sales) in the first quarter of 2017. In domestic
franchise locations, same store sales decreased 4.6%.
For the first quarter of 2017, the Company reported net income
of $23.9 million compared with
$50.8 million in the prior year
quarter. Diluted earnings per share ("EPS") was $0.35 for the first quarter of 2017 compared with
$0.69 in the prior year quarter.
Excluding gains on refranchising in both periods and a legal charge
in the current quarter related to the outcome of litigation the
Company pursued of a potential breach under its UK license
agreement, adjusted EPS was $0.37 and
$0.69 in the three months ended
March 31, 2017 and 2016,
respectively.
"The One New GNC, represents a fundamental change in our
business model and in the first quarter of 2017, we saw those
transformational changes begin to bear fruit," said Bob Moran, Interim Chief Executive Officer.
"We're encouraged by positive trends in transactions, and by the
early performance of our new loyalty programs, which are
demonstrating their power to increase consumer frequency and
spending."
Update on One New
GNC
- Transaction growth continued in the first quarter, up 9.3%,
resulting in sequential improvement in same store sales.
- As of the end of the first quarter of 2017, 5 million consumers
had joined the myGNC Rewards Program and there were approximately
78,000 PRO Access members. Over the course of the year, the Company
will begin leveraging the CRM information to better reach and more
cost effectively speak to its customers.
- GNC.com sales decreased 7.2% in the first quarter of 2017. In
the third quarter of 2016, prices at GNC.com were aligned with
stores to eliminate any competition between selling channels,
including franchisees. As an element of the Company's omnichannel
strategy, early in the first quarter of 2017, the Company launched
a GNC storefront on Amazon (sales from which are included in the
GNC.com business unit) which is exceeding the Company's initial
expectations. During the first quarter, the Company also increased
its online marketing program and was pleased with the lift in
traffic that we experienced during the campaign.
Same Store Sales
As fully defined below, the Company has clarified the definition
of same store sales, which now excludes sales from its membership
programs, including the Gold Card program discontinued in the U.S.
in December 2016 and the new loyalty
PRO Access program launched in connection with the One New GNC.
Same store sales will now include only product sales. The table
below presents the same stores calculation under the new
presentation for the current quarter and the previously reported
quarters in 2016 and 2015.
|
2017
|
|
2016
|
|
2015
|
U.S. Company-Owned
Same Store
Sales
|
Q1
3/31
|
|
Q1
3/31
|
|
Q2
6/30
|
|
Q3
9/30
|
|
Q4
12/31
|
|
Q1
3/31
|
|
Q2
6/30
|
|
Q3
9/30
|
|
Q4
12/31
|
Total same store
sales
|
(3.9)
|
%
|
|
(2.3)
|
%
|
|
(3.9)
|
%
|
|
(8.6)
|
%
|
|
(11.3)
|
%
|
|
(4.1)
|
%
|
|
(2.0)
|
%
|
|
0.5
|
%
|
|
1.4
|
%
|
Drivers of same store
sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of
transactions
|
9.3
|
%
|
|
(4.1)
|
%
|
|
(5.5)
|
%
|
|
(6.6)
|
%
|
|
(6.5)
|
%
|
|
(5.4)
|
%
|
|
(2.5)
|
%
|
|
(0.8)
|
%
|
|
0.0
|
%
|
Average transaction
amount
|
(12.1)
|
%
|
|
1.8
|
%
|
|
1.7
|
%
|
|
(2.2)
|
%
|
|
(5.2)
|
%
|
|
1.4
|
%
|
|
0.5
|
%
|
|
1.3
|
%
|
|
1.4
|
%
|
Contribution to
same store sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic Retail same
store sales
|
(3.6)
|
%
|
|
(1.9)
|
%
|
|
(3.4)
|
%
|
|
(6.5)
|
%
|
|
(6.6)
|
%
|
|
(3.4)
|
%
|
|
(2.7)
|
%
|
|
0.1
|
%
|
|
0.8
|
%
|
GNC.com contribution
to same store
sales
|
(0.3)
|
%
|
|
(0.4)
|
%
|
|
(0.5)
|
%
|
|
(2.1)
|
%
|
|
(4.7)
|
%
|
|
(0.7)
|
%
|
|
0.7
|
%
|
|
0.4
|
%
|
|
0.6
|
%
|
Total Same Store
Sales
|
(3.9)
|
%
|
|
(2.3)
|
%
|
|
(3.9)
|
%
|
|
(8.6)
|
%
|
|
(11.3)
|
%
|
|
(4.1)
|
%
|
|
(2.0)
|
%
|
|
0.5
|
%
|
|
1.4
|
%
|
Segment Operating Performance
U.S. & Canada
Revenues in the U.S. and Canada
segment decreased $21.7 million, or
3.8%, to $552.9 million for the three
months ended March 31, 2017 compared with $574.6 million in the prior year quarter.
E-commerce sales which include GNC.com and Lucky Vitamin, were 9.3%
of U.S. and Canada revenue in each
of the quarters ended March 31, 2017 and 2016.
Negative domestic retail same store sales of 3.9%, which
includes GNC.com sales, resulted in a $16.0
million decrease in revenue in the current quarter as
compared with the prior year quarter. Negative same store sales
were primarily due to lower sales in the Protein, Vitamins,
Food/Drink and Weight Management categories, partially offset by
the Health and Beauty and Performance Supplements categories.
GNC.com sales decreased in the current quarter compared with the
prior year quarter due in part to better aligning web promotions to
stores, partially offset by sales through third-party websites. In
addition, the corporate store count decreased from 3,573 at
March 31, 2016 to 3,499 at March 31, 2017, contributing
approximately $12 million to the
decline in sales.
Partially offsetting the above decreases in revenue was a net
increase associated with the change in the loyalty programs of
$4.0 million. Gold Card revenue
increased from $15.6 million in the
prior year quarter to $23.9 million
in the current quarter due to the impact of the recognition of
$24.4 million in domestic Gold Card
deferred revenue in the first quarter of 2017, net of $1.4 million of applicable coupon redemptions.
The net change in the deferred points liability associated with the
launch of the new myGNC Rewards loyalty program resulted in a
$4.3 million decrease to revenue in
the current quarter compared with the prior year quarter.
Domestic franchise revenue increased $1.3
million to $83.1 million in
the current quarter compared with $81.8
million in the prior year quarter primarily due to an
increase in the number of franchise stores from 1,082 at
March 31, 2016 to 1,164 at March 31, 2017, partially
offset by the impact of negative retail same store sales of 4.6% in
the current quarter.
Operating income decreased $36.2
million to $50.1 million for
the three months ended March 31, 2017 compared with
$86.3 million for the same period in
2016. Operating income as a percentage of segment revenue was 9.1%
in the current quarter compared with 15.0% in the prior year
quarter. The decrease compared with the prior year quarter was
primarily due to higher marketing expense of $12.3 million related to the media campaign
around the One New GNC and online advertising. In addition, lower
domestic retail product margin rate resulted from the impact of
pricing associated with the One New GNC, partially offset by higher
Gold Card revenue as explained above and the favorable comparative
effect of prior year deep discounts on excess vitamin inventory
nearing expiration. Lastly, operating income rate declined in the
current quarter compared with the prior year quarter due to expense
deleverage in occupancy and salaries.
International
Revenues in the International segment increased $2.6 million, or 7.0%, to $39.4 million in the current quarter compared
with $36.8 million in the prior year
quarter. Revenues from international franchisees increased
$1.3 million primarily due to an
increase in wholesale sales quarter over quarter. International
franchisees reported an increase in retail same store sales of 3.8%
in the current quarter (excluding the impact of foreign exchange
rate changes relative to the U.S. dollar). Revenues from the
China business increased
$1.2 million in the current quarter
compared with the prior quarter.
Operating income increased $1.4
million, or 10.9%, to $14.5
million for the three months ended March 31, 2017
compared with $13.1 million in the
prior year quarter. Operating income was 36.9% of segment revenue
in the current quarter compared with 35.6% in the prior year
quarter. The increase in operating income percentage was primarily
due to higher product margin rate due in part to a higher mix of
proprietary sales.
Manufacturing / Wholesale
Revenues in the Manufacturing / Wholesale segment, excluding
intersegment sales, decreased $5.0
million, or 8.6%, to $52.5
million for the three months ended March 31, 2017
compared with $57.5 million in the
prior year quarter. Third-party contract manufacturing sales
increased $0.3 million, or 0.9%, to
$30.7 million for the three months
ended March 31, 2017 compared with $30.4 million in the prior year quarter. Sales to
wholesale partners decreased $5.3
million, or 19.3% from $27.1
million in the prior year quarter to $21.8 million in the current quarter.
Intersegment sales decreased $1.7
million from $63.0 million in
the prior year quarter to $61.3
million in the current quarter primarily due to lower
proprietary sales in the U.S. and Canada segment.
Operating income decreased $1.9
million, or 10.2%, to $16.6
million for the three months ended March 31, 2017
compared with $18.4 million in the
prior year quarter. Operating income as a percentage of segment
revenue decreased from 15.3% in the prior year quarter to 14.5% in
the current quarter.
Operating Metrics
As of March 31, 2017, the Company had 3,499 corporate
stores in the U.S. and Canada,
1,164 domestic franchise locations, 2,371 Rite Aid franchise
store-within-a-store locations and 1,949 international stores. The
Company now has 8,983 store locations worldwide.
For the first three months of 2017, the Company generated net
cash from operating activities of $46.1
million and invested $13.9
million in capital expenditures. The Company generated free
cash flow of $33.4 million (which it
defines as cash provided by operating activities less cash used in
investing activities excluding acquisitions except for store
acquisitions). As of March 31, 2017, the Company's cash and
cash equivalents were $39.9 million,
long-term debt was $1.5 billion and
the Company had $194.3 million
available under the Revolving Credit Facility.
Conference Call
GNC has scheduled a live webcast to report its first quarter
2017 financial results on April 18,
2017 at 8:30 a.m. Eastern
time. To participate on the live call listeners in
North America may dial (888)
312-9837 and international listeners may dial (719) 785-1760; the
conference identification number for all callers is 9031777. In
addition, a live webcast of the call will be available on
www.gnc.com via the Investor Relations section under "About GNC." A
replay of this webcast will be available through May 18, 2017.
About Us
GNC Holdings, Inc. (NYSE: GNC) - Headquartered in
Pittsburgh, PA - is a leading
global specialty health, wellness and performance retailer.
GNC connects customers to their best selves by offering a
premium assortment of heath, wellness and performance products,
including protein, performance supplements, weight management
supplements, vitamins, herbs and greens, wellness supplements,
health and beauty, food and drink and other general merchandise.
This assortment features proprietary GNC and nationally recognized
third-party brands.
GNC's diversified, multi-channel business model generates
revenue from product sales through company-owned retail stores,
domestic and international franchise activities, third-party
contract manufacturing, e-commerce and corporate partnerships. As
of March 31, 2017, GNC had approximately 9,000 locations, of
which more than 6,800 retail locations are in the United States (including 2,371 Rite Aid
franchise store-within-a-store locations) and franchise operations
in approximately 50 countries.
Forward-Looking Statements Involving Known and Unknown Risks
and Uncertainties
This release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
with respect to the Company's financial condition, results of
operations and business that is not historical information.
Forward-looking statements can be identified by the use of
terminology such as "subject to," "believes," "anticipates,"
"plans," "expects," "intends," "estimates," "projects," "may,"
"will," "should," "can," the negatives thereof, variations thereon
and similar expressions, or by discussions regarding dividend,
share repurchase plan, strategy and outlook. While GNC believes
there is a reasonable basis for its expectations and beliefs, they
are inherently uncertain. The Company may not realize its
expectations and its beliefs may not prove correct. Many factors
could affect future performance and cause actual results to differ
materially from those matters expressed in or implied by
forward-looking statements, including but not limited to
unfavorable publicity or consumer perception of the Company's
products; costs of compliance and any failure on management's part
to comply with new and existing governmental regulations governing
our products; limitations of or disruptions in the manufacturing
system or losses of manufacturing certifications; disruptions in
the distribution network; or failure to successfully execute the
Company's growth strategy, including any inability to expand
franchise operations or attract new franchisees, any inability to
expand company-owned retail operations, any inability to grow the
international footprint, any inability to expand the e-commerce
businesses, or any inability to successfully integrate businesses
that are acquired. The Company undertakes no obligation to publicly
update or revise any forward-looking statement, whether as a result
of new information, future events or otherwise. Actual results
could differ materially from those described or implied by such
forward-looking statements. For a listing of factors that may
materially affect such forward-looking statements, please refer to
the Company's Annual Report on Form 10-K for the year ended
December 31, 2016.
Same store sales for company-owned stores include point-of-sale
retail sales from all domestic stores which have been operating for
twelve full months following the opening period. The Company is an
omnichannel retailer with capabilities that allow a customer to use
more than one channel when making a purchase, including in-store
and through e-commerce channels which include its wholly-owned
website GNC.com and third party websites (the sales from which are
included in the GNC.com business unit) where product assortment and
price are controlled by the Company, and have the purchase
fulfilled, in most cases, either through in-store customer pickup
or by direct shipment to the customer from one of the Company's
distribution facilities or stores as well as third party e-commerce
vendors. Customer orders placed online and picked up in a store are
recorded as in-store sales. In-store sales are reduced by sales
originally consummated online or through mobile devices and
subsequently returned in-store. Sales of membership programs,
including the new PRO Access loyalty program and former Gold Card
program, which is no longer offered in the U.S., as well as the net
change in the deferred points liability associated with the myGNC
Rewards program, are excluded from same store sales.
Same store sales are calculated on a daily basis for each store
and exclude the net sales of a store for any period if the store
was not open during the same period of the prior year. When a
store's square footage has been changed as a result of
reconfiguration or relocation in the same mall or shopping center,
the store continues to be treated as a same store. If, during the
period presented, a store was closed, relocated to a different mall
or shopping center, or converted to a franchise store or a
company-owned store, sales from that store up to and including the
closing day or the day immediately preceding the relocation or
conversion are included as same store sales as long as the store
was open during the same period of the prior year. Corporate stores
are included in same store sales after the thirteenth month
following a relocation or conversion to a company-owned stores.
The Company also provides retail comparable same stores of its
franchisees. While these sales are not included in the Company's
consolidated financial statements, the metric serves as a key
performance indicator for its franchisees, which ultimately impacts
wholesale sales and royalties and fees received from franchisees.
The Company computes same store sales for its domestic and
international franchisees consistent with the description of
corporate same store sales above. Same store sales for
international franchisees excludes the impact of foreign exchange
rate changes relative to the U.S. dollar.
Management has included non-GAAP financial measures in this
press release because it believes they represent an effective
supplemental means by which to measure the Company's operating
performance. Management believes that net income and earnings per
share, adjusted to exclude gains on refranchising and certain other
expenses as reflected in this release, and free cash flow are
useful to investors as they enable the Company and its investors to
evaluate and compare the Company's results from operations in a
more meaningful and consistent manner by excluding specific items
which are not reflective of ongoing operating results. However,
these measures are not measurements of the Company's performance
under GAAP and should not be considered as alternatives to earnings
per share, net income or any other performance measures derived in
accordance with GAAP, or as an alternative to GAAP cash flow from
operating activities, or as a measure of the Company's
profitability or liquidity. For more information, see the
attached reconciliations of non-GAAP financial measures.
GNC
HOLDINGS, INC. AND SUBSIDIARIES
Consolidated
Statements of Income
(in thousands,
except per share amounts)
|
|
|
Three months
ended
March 31,
|
|
2017
|
|
2016
|
|
(unaudited)
|
|
|
|
|
Revenue
|
$
|
644,838
|
|
|
$
|
668,905
|
|
Cost of sales,
including warehousing, distribution and occupancy
|
431,867
|
|
|
433,060
|
|
Gross
profit
|
212,971
|
|
|
235,845
|
|
Selling, general, and
administrative
|
160,581
|
|
|
143,072
|
|
Gains on
refranchising
|
(154)
|
|
|
(1,015)
|
|
Other income,
net
|
(1,009)
|
|
|
(277)
|
|
Operating
income
|
53,553
|
|
|
94,065
|
|
Interest expense,
net
|
15,894
|
|
|
14,443
|
|
Income before
income taxes
|
37,659
|
|
|
79,622
|
|
Income tax
expense
|
13,809
|
|
|
28,807
|
|
Net
income
|
$
|
23,850
|
|
|
$
|
50,815
|
|
Earnings per
share:
|
|
|
|
Basic
|
$
|
0.35
|
|
|
$
|
0.70
|
|
Diluted
|
$
|
0.35
|
|
|
$
|
0.69
|
|
Weighted average
common shares outstanding:
|
|
|
|
Basic
|
68,246
|
|
|
73,078
|
|
Diluted
|
68,300
|
|
|
73,373
|
|
GNC
HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of
Net Income and Diluted EPS to Adjusted Net Income and Adjusted
Diluted EPS
(in thousands,
except per share data)
|
|
|
Three months
ended
March 31,
|
|
2017
|
|
2016
|
|
Net
Income
|
|
Diluted
EPS
|
|
Net
Income
|
|
Diluted
EPS
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
Reported
|
$
|
23,850
|
|
|
$
|
0.35
|
|
|
$
|
50,815
|
|
|
$
|
0.69
|
|
Gains on
refranchising
|
(154)
|
|
|
—
|
|
|
(1,015)
|
|
|
(0.01)
|
|
Legal
charge
|
2,097
|
|
|
0.03
|
|
|
—
|
|
|
—
|
|
Tax effect
|
(705)
|
|
|
(0.01)
|
|
|
1,012
|
|
|
0.01
|
|
Adjusted
|
$
|
25,088
|
|
|
$
|
0.37
|
|
|
$
|
50,812
|
|
|
$
|
0.69
|
|
|
|
|
|
|
|
|
|
Weighted average
diluted common shares outstanding
|
68,300
|
|
|
|
|
73,373
|
|
|
|
GNC
HOLDINGS, INC. AND SUBSIDIARIES
Consolidated
Balance Sheets
(in
thousands)
|
|
|
March
31,
|
|
December
31,
|
|
2017
|
|
2016
|
|
(unaudited)
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
39,872
|
|
|
$
|
34,464
|
|
Receivables,
net
|
123,344
|
|
|
129,178
|
|
Inventory
|
602,586
|
|
|
583,212
|
|
Prepaid and other
current assets
|
36,695
|
|
|
39,400
|
|
Total current
assets
|
802,497
|
|
|
786,254
|
|
Long-term
assets:
|
|
|
|
Goodwill
|
176,140
|
|
|
176,062
|
|
Brand name
|
720,000
|
|
|
720,000
|
|
Other intangible
assets, net
|
109,312
|
|
|
111,229
|
|
Property, plant and
equipment, net
|
226,204
|
|
|
232,292
|
|
Other long-term
assets
|
28,466
|
|
|
30,005
|
|
Total long-term
assets
|
1,260,122
|
|
|
1,269,588
|
|
Total
assets
|
$
|
2,062,619
|
|
|
$
|
2,055,842
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
202,351
|
|
|
$
|
179,933
|
|
Current portion of
long-term debt
|
12,562
|
|
|
12,562
|
|
Deferred revenue and
other current liabilities
|
97,450
|
|
|
115,171
|
|
Total current
liabilities
|
312,363
|
|
|
307,666
|
|
Long-term
liabilities:
|
|
|
|
Long-term
debt
|
1,502,820
|
|
|
1,527,891
|
|
Deferred income
taxes
|
260,280
|
|
|
259,203
|
|
Other long-term
liabilities
|
56,378
|
|
|
56,129
|
|
Total long-term
liabilities
|
1,819,478
|
|
|
1,843,223
|
|
Total
liabilities
|
2,131,841
|
|
|
2,150,889
|
|
Stockholders'
deficit:
|
|
|
|
Common
stock
|
114
|
|
|
114
|
|
Additional paid-in
capital
|
923,868
|
|
|
922,687
|
|
Retained
earnings
|
740,290
|
|
|
716,198
|
|
Treasury stock, at
cost
|
(1,725,349)
|
|
|
(1,725,349)
|
|
Accumulated other
comprehensive loss
|
(8,145)
|
|
|
(8,697)
|
|
Total
stockholders' deficit
|
(69,222)
|
|
|
(95,047)
|
|
Total liabilities
and stockholders' deficit
|
$
|
2,062,619
|
|
|
$
|
2,055,842
|
|
The Company reclassified $12.9
million of deferred income taxes within "Total Current
Assets" to deferred income taxes within "Total Long-Term
Liabilities" at December 31, 2016 to
conform to the current year presentation in connection with the
adoption of Accounting Standards Update 2015-17, which requires an
entity to classify deferred tax assets and liabilities as
noncurrent on the balance sheet.
GNC
HOLDINGS, INC. AND SUBSIDIARIES
Consolidated
Statements of Cash Flows
(in
thousands)
|
|
|
Three months
ended
March 31,
|
|
2017
|
|
2016
|
|
(unaudited)
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
23,850
|
|
|
$
|
50,815
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization expense
|
16,739
|
|
|
14,045
|
|
Amortization of debt
costs
|
3,288
|
|
|
3,099
|
|
Stock-based
compensation
|
1,410
|
|
|
1,419
|
|
Gains on
refranchising
|
(154)
|
|
|
(1,015)
|
|
Changes in assets and
liabilities:
|
|
|
|
Decrease in
receivables
|
5,890
|
|
|
17,402
|
|
(Increase) in
inventory
|
(18,545)
|
|
|
(13,021)
|
|
(Increase) in prepaid
and other current assets
|
(8,785)
|
|
|
(9,056)
|
|
Increase in accounts
payable
|
27,411
|
|
|
41,364
|
|
(Decrease) increase
in deferred revenue and accrued liabilities
|
(5,198)
|
|
|
33,250
|
|
Other operating
activities
|
197
|
|
|
4,023
|
|
Net cash provided
by operating activities
|
46,103
|
|
|
142,325
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
Capital
expenditures
|
(13,906)
|
|
|
(10,542)
|
|
Refranchising
proceeds
|
1,344
|
|
|
830
|
|
Store acquisition
costs
|
(98)
|
|
|
(519)
|
|
Net cash used in
investing activities
|
(12,660)
|
|
|
(10,231)
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
Borrowings under
revolving credit facility
|
64,000
|
|
|
90,000
|
|
Payments on revolving
credit facility
|
(91,000)
|
|
|
—
|
|
Payments on term loan
facility
|
(1,138)
|
|
|
(1,138)
|
|
Debt issuance
costs
|
—
|
|
|
(1,712)
|
|
Proceeds from
exercise of stock options
|
—
|
|
|
292
|
|
Minimum tax
withholding requirements
|
(229)
|
|
|
(519)
|
|
Cash paid for
treasury stock
|
—
|
|
|
(201,002)
|
|
Dividends paid to
shareholders
|
—
|
|
|
(14,274)
|
|
Net cash used in
financing activities
|
(28,367)
|
|
|
(128,353)
|
|
|
|
|
|
Effect of exchange
rate changes on cash and cash equivalents
|
332
|
|
|
796
|
|
Net increase in cash
and cash equivalents
|
5,408
|
|
|
4,537
|
|
Beginning balance,
cash and cash equivalents
|
34,464
|
|
|
56,462
|
|
Ending balance, cash
and cash equivalents
|
$
|
39,872
|
|
|
$
|
60,999
|
|
GNC
HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of
Net Cash Provided by Operating Activities to Free Cash
Flow
(in
thousands)
|
|
|
Three months
ended
March 31,
|
|
2017
|
|
2016
|
|
(unaudited)
|
|
|
|
|
Net cash provided
by operating activities
|
$
|
46,103
|
|
|
$
|
142,325
|
|
Capital
expenditures
|
(13,906)
|
|
|
(10,542)
|
|
Refranchising
proceeds
|
1,344
|
|
|
830
|
|
Store acquisition
costs
|
(98)
|
|
|
(519)
|
|
Free cash
flow
|
$
|
33,443
|
|
|
$
|
132,094
|
|
|
|
|
|
GNC
HOLDINGS, INC. AND SUBSIDIARIES
Segment Financial
Data
(in
thousands)
|
|
|
Three months
ended
March 31,
|
|
2017
|
|
2016
|
|
(unaudited)
|
Revenue:
|
|
|
|
U.S. and
Canada
|
$
|
552,921
|
|
|
$
|
574,600
|
|
International
|
39,417
|
|
|
36,842
|
|
Manufacturing /
Wholesale:
|
|
|
|
Intersegment
revenues
|
61,298
|
|
|
63,031
|
|
Third-party
|
52,500
|
|
|
57,463
|
|
Subtotal
Manufacturing / Wholesale
|
113,798
|
|
|
120,494
|
|
Total reportable
segment revenues
|
706,136
|
|
|
731,936
|
|
Elimination of
intersegment revenues
|
(61,298)
|
|
|
(63,031)
|
|
Total
revenue
|
$
|
644,838
|
|
|
$
|
668,905
|
|
Operating
income:
|
|
|
|
U.S. and
Canada
|
$
|
50,145
|
|
|
$
|
86,301
|
|
International
|
14,535
|
|
|
13,103
|
|
Manufacturing /
Wholesale
|
16,557
|
|
|
18,433
|
|
Total reportable
segment operating income
|
81,237
|
|
|
117,837
|
|
Unallocated corporate
costs and other
|
(27,684)
|
|
|
(23,772)
|
|
Total operating
income
|
$
|
53,553
|
|
|
$
|
94,065
|
|
GNC
HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Store
Count Activity
|
|
|
Three months
ended
March 31,
|
|
2017
|
|
2016
|
U.S. &
Canada
|
|
|
|
Company-owned(a):
|
|
|
|
Beginning of period
balance
|
3,513
|
|
|
3,584
|
|
Store
openings
|
19
|
|
|
8
|
|
Acquired franchise
stores(b)
|
12
|
|
|
5
|
|
Franchise
conversions(c)
|
(1)
|
|
|
(4)
|
|
Store
closings
|
(44)
|
|
|
(20)
|
|
End of period
balance
|
3,499
|
|
|
3,573
|
|
Domestic
Franchise:
|
|
|
|
Beginning of period
balance
|
1,178
|
|
|
1,084
|
|
Store
openings
|
6
|
|
|
4
|
|
Acquired franchise
stores(b)
|
(12)
|
|
|
(5)
|
|
Franchise
conversions(c)
|
1
|
|
|
4
|
|
Store
closings
|
(9)
|
|
|
(5)
|
|
End of period
balance
|
1,164
|
|
|
1,082
|
|
International(d):
|
|
|
|
Beginning of period
balance
|
1,973
|
|
|
2,095
|
|
Store
openings
|
22
|
|
|
18
|
|
Store
closings
|
(46)
|
|
|
(44)
|
|
End of period
balance
|
1,949
|
|
|
2,069
|
|
Store-within-a-store (Rite Aid):
|
|
|
|
Beginning of period
balance
|
2,358
|
|
|
2,327
|
|
Store
openings
|
16
|
|
|
14
|
|
Store
closings
|
(3)
|
|
|
(1)
|
|
End of period
balance
|
2,371
|
|
|
2,340
|
|
Total
Stores
|
8,983
|
|
|
9,064
|
|
|
|
(a)
|
Includes
Canada.
|
(b)
|
Stores that were
acquired from franchisees and subsequently converted into
company-owned stores.
|
(c)
|
Company-owned store
locations sold to franchisees.
|
(d)
|
Includes franchise
locations in approximately 50 countries (including distribution
centers where sales are made) and company-owned stores located in
Ireland (The Health Store) and China.
|
Contacts:
|
|
Investors:
|
Amy Greene, Vice
President - Investor & Government Relations, (412) 288-4744;
or
|
|
John Mills, Partner -
ICR, (646) 277-1254
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gnc-holdings-inc-reports-first-quarter-2017-results-300440624.html
SOURCE GNC Holdings, Inc.