LAKE SUCCESS, N.Y.,
Nov. 7, 2017 /PRNewswire/ -- The
Hain Celestial Group, Inc. (Nasdaq: HAIN) ("Hain Celestial" or
the "Company"), a leading organic and natural products company with
operations in North America,
Europe, Asia and the Middle
East providing consumers with A Healthier Way of Life™,
today reported financial results for the first quarter ended
September 30, 2017.
"Our first quarter results were solid with improved net sales
growth and profitability, meeting our expectations across our
business segments," said Irwin D.
Simon, Founder, President and Chief Executive Officer of
Hain Celestial. "Importantly, we are on track to build
momentum throughout the year as our execution of Project Terra
continues to drive incremental sales growth and margin improvement
to deliver long-term sustainable stockholder value."
FINANCIAL HIGHLIGHTS1
First Quarter Results Summary
- Net sales increased 4% to $708.3
million compared to the prior year period, or 3% on a
constant currency basis, primarily reflecting double digit net
sales increases from Canada and
Europe and low single digit net
sales increases from the United
States, United Kingdom and
Hain Pure Protein segments. Adjusted for both constant currency and
acquisitions and divestitures, net sales increased 4%, compared to
the prior year period.
- Gross margin as a percentage of net sales of 18.6%; adjusted
gross margin of 19.1%.
- Operating income of $31.5
million; adjusted operating income of $39.7 million.
- Net income of $19.8 million, an
increase of 131% over the prior year period; adjusted net income of
$23.7 million, an increase of 59%
over the prior year period.
- EBITDA increased 60% to $51.3
million compared to $32.2
million in the prior year period; adjusted EBITDA increased
30% to $59.5 million compared to
$45.6 million in the prior year
period.
- EPS of $0.19 compared to
$0.08 in the prior year period;
adjusted EPS per diluted share of $0.23 compared to $0.14 in the prior year period.
1 This press release includes certain non‐GAAP
financial measures which are intended to supplement, not substitute
for, comparable GAAP financial measures. Reconciliations of
non‐GAAP financial measures to GAAP financial measures are provided
herein.
FIRST QUARTER OPERATING SEGMENT HIGHLIGHTS
Hain Celestial United States
Net sales for Hain
Celestial United States increased 4% to $263.7 million over the prior year period,
reflecting growth from the Pure Personal Care, Better-for-You Baby
and Better-for-You Pantry platforms including Alba Botanica®,
Jason®, Avalon Organics®, Live Clean®; Earth's Best®; Spectrum® and
Imagine® brands; partially offset by declines in Fresh Living with
The Greek Gods® brand, Better-for-You-Snacking with Garden of
Eatin'® brand and Tea with Celestial Seasonings® brand. The
prior year first quarter results were also negatively impacted by
inventory realignment at certain customers. Segment operating
income was $20.9 million, an increase
of 11% over the prior year period and adjusted operating income was
$23.1 million, a decrease of 5% over
the prior year period, driven primarily by higher marketing
investments. The financial results for the current period as
well as the prior year first quarter results excludes the
United Kingdom operations of the
Ella's Kitchen® brand thereby eliminating net sales of
approximately $23.1 million and
$21.4 million, respectively as these
net sales are now reported as part of the United Kingdom reportable segment.
Hain Celestial United Kingdom
Net sales for Hain
Celestial United Kingdom increased 1% to $222.4 million over the prior year period,
reflecting 8% growth from Tilda® and Ella's Kitchen®, partially
offset by a 1% decrease from Hain Daniels. Hain Daniels net
sales, adjusted for both constant currency and acquisitions and
divestitures, increased 2% over the prior year period, with strong
brand performance from Hartley's®, Linda
McCartney's®, New Covent Garden Soup Co.® and Sun-Pat®
brands. Hain Celestial United Kingdom, on a consolidated
basis, was up 4% over the prior year period in constant currency
adjusted for acquisitions and divestitures. Segment operating
income of $9.6 million increased 23%
over the prior year period and adjusted operating income of
$12.9 million increased 39% over the
prior year period driven by strong contribution from the Hain
Daniels brands. As discussed above, the financial results for
the current period as well as the prior year first quarter results
includes the United Kingdom
operations of the Ella's Kitchen® brand, which was previously
reported as part of the United
States reportable segment.
Hain Pure Protein
Net sales for Hain Pure Protein
increased 2% to $119.1 million over
the prior year period, reflecting a 6% increase from the combined
FreeBird® and Plainville Farms® businesses while the Empire® Kosher
business net sales declined 6% with more sales attributable in the
prior year period due to the timing of the Jewish holidays.
Segment operating income increased to $2.2
million from the prior year period loss of $1.0 million and adjusted operating income
increased to $3.6 million from the
prior year period loss of $1.0
million due to improvements in operating expenses across the
business.
Rest of World
Net sales for Rest of World increased
14% to $103.1 million over the prior
year period, or 9% on a constant currency basis driven by 13%
growth from Hain Celestial Canada from Yves® Veggie Cuisine,
Sensible Portions®, Live Clean® and Tilda® brands and 10% growth
from Hain Celestial Europe from Danival® and Joya® brands and own
label. Segment operating income increased over 77% to
$9.0 million over the prior year
period.
Fiscal Year 2018 Guidance
The Company reiterated its annual guidance for fiscal year
2018:
- Net sales of $2.967 billion to $3.036
billion, an increase of approximately 4% to 6% as compared
to fiscal year 2017.
- Adjusted EBITDA of $350 million to $375
million, an increase of approximately 27% to 36% as compared
to fiscal year 2017.
- Adjusted earnings per diluted share of $1.63 to $1.80, an increase of approximately 34%
to 48% as compared to fiscal year 2017.
Guidance, where adjusted, is provided on a non-GAAP basis, which
excludes acquisition-related expenses, integration and
restructuring charges, start-up costs, unrealized net foreign
currency gains or losses, accounting review costs and other
non-recurring items that have been or may be incurred during the
Company's fiscal year 2018, which the Company will continue to
identify as it reports its future financial results. Guidance
excludes the impact of any future acquisitions.
The Company has not reconciled its expected adjusted EBITDA to
net income or adjusted earnings per diluted share to earnings per
share under "Fiscal Year 2018 Guidance" because certain items that
impact net income and other reconciling metrics are out of the
Company's control and/or cannot be reasonably predicted at this
time.
Effective July 1, 2017, due to
changes to the Company's internal management and reporting
structure the United Kingdom
operations of the Ella's Kitchen® brand, which was previously
included within the United States
reportable segment, is included in the United Kingdom reportable segment. The
prior period segment information contained below has been adjusted
to reflect the Company's new operating and reporting structure.
(unaudited and
dollars in thousands)
|
United
States
|
United
Kingdom
|
Hain Pure
Protein
|
Rest of
World
|
Corporate/
Other
|
Total
|
NET
SALES
|
|
|
|
|
|
|
Net sales - Three
months ended 9/30/17
|
$
263,659
|
$
222,445
|
$
119,057
|
$
103,115
|
$
-
|
$
708,276
|
Net sales - Three
months ended 9/30/16
|
$
254,232
|
$
220,151
|
$
116,669
|
$
90,412
|
$
-
|
$
681,464
|
% change - FY'18 net
sales vs. FY'17 net sales
|
3.7%
|
1.0%
|
2.0%
|
14.1%
|
|
3.9%
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
Three months ended
9/30/17
|
|
|
|
|
|
|
Operating
income
|
$
20,861
|
$
9,601
|
$
2,242
|
$
8,997
|
$
(10,218)
|
$
31,483
|
Non-GAAP Adjustments
(1)
|
$
2,283
|
$
3,335
|
$
1,342
|
$
-
|
$
1,256
|
$
8,216
|
Adjusted operating
income
|
$
23,144
|
$
12,936
|
$
3,584
|
$
8,997
|
$
(8,962)
|
$
39,699
|
Adjusted operating
income margin
|
8.8%
|
5.8%
|
3.0%
|
8.7%
|
|
5.6%
|
|
|
|
|
|
|
|
Three months ended
9/30/16
|
|
|
|
|
|
|
Operating
income
|
$
18,794
|
$
7,819
|
$
(1,018)
|
$
5,055
|
$
(16,899)
|
$
13,751
|
Non-GAAP Adjustments
(1)
|
$
5,526
|
$
1,503
|
$
-
|
$
-
|
$
6,421
|
$
13,450
|
Adjusted operating
income
|
$
24,320
|
$
9,322
|
$
(1,018)
|
$
5,055
|
$
(10,478)
|
$
27,201
|
Adjusted operating
income margin
|
9.6%
|
4.2%
|
(0.9)%
|
5.6%
|
|
4.0%
|
|
|
|
|
|
|
|
(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
|
|
|
|
|
Webcasts and Upcoming Presentation
Hain
Celestial will host a conference call and webcast today at
8:30 AM Eastern Time to discuss its
results and business outlook. The events will be webcast and
be available under the Investor Relations section of the Company's
website at www.hain.com.
About 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, Asia
and the Middle East. 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®, Hain Pure
Foods®, Spectrum®, Spectrum
Essentials®, Imagine®, Almond
Dream®, Rice Dream®, Soy Dream®,
WestSoy®, The Greek Gods®,
BluePrint®, FreeBird®, Plainville
Farms®, Empire®, Kosher Valley®,
Yves Veggie Cuisine®, Better Bean™, Europe's Best®, Cully &
Sully®, New Covent Garden Soup Co.®,
Yorkshire Provender™, 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" within
the meaning of the Private Securities Litigation Reform Act of
1995. Forward-looking statements are predictions based on
expectations and projections about future events, and are not
statements of historical fact. You can identify
forward-looking statements by the use of forward-looking
terminology such as "plan", "continue", "expect", "anticipate",
"intend", "predict", "project", "estimate", "likely", "believe",
"might", "seek", "may", "will", "remain", "potential", "can",
"should", "could", "future" and similar expressions, or the
negative of those expressions, or similar words or phrases that are
predictions of or indicate future events or trends and that do not
relate solely to historical facts. You can also identify
forward-looking statements by discussions of the Project Terra
strategic initiatives and our future performance and results of
operations. Such forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
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, and you
should not rely on them as predictions of future events.
Forward-looking statements depend on assumptions, data or methods
that may be incorrect or imprecise and may not be able to be
realized. We do not guarantee that the transactions and events
described will happen as described (or that they will happen at
all). Such factors, include, among others, the Company's
beliefs or expectations relating to (i) the Company's guidance for
Fiscal Year 2018; (ii) the Company's ability to improve results
throughout the fiscal year; and (iii) the Company's ability to
execute Project Terra initiatives to drive incremental sales growth
and margin improvement to deliver long-term sustainable stockholder
value; and the other risks detailed from time-to-time in the
Company's reports filed with the United States Securities and
Exchange Commission, including the Annual Report on Form 10-K for
the fiscal year ended June 30, 2017,
and our quarterly reports. As a result of the foregoing and
other factors, no assurance can be given as to the future results,
levels of activity and achievements of the Company, and neither the
Company nor any person assumes responsibility for the accuracy and
completeness of these statements. All forward-looking
statements contained herein apply as of the date hereof or as of
the date they were made and, except as required by applicable law,
the Company disclaims any obligation to publicly update or revise
any forward-looking statement to reflects changes in underlying
assumptions or factors of new methods, future events or other
changes.
Non-GAAP Financial Measures
This press release and the
accompanying tables include non-GAAP financial measures, including
net sales adjusted for the impact of foreign currency, net sales
adjusted for the impact of foreign currency and acquisitions and
divestitures, adjusted operating income, adjusted gross margin,
adjusted earnings per diluted share, EBITDA, adjusted EBITDA and
operating free cash flow. The reconciliations of these non-GAAP
financial measures to the comparable GAAP financial measures are
presented in the tables "Reconciliation of GAAP Results to Non-GAAP
Measures" for the three months ended September 30, 2017 and 2016 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 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 three
months ended September 30, 2017 and
2016, operating free cash flow was calculated as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
|
9/30/17
|
|
9/30/16
|
|
|
|
|
(unaudited and
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
Cash flow (used in)
provided by operating activities
|
$
(19,438)
|
|
$
12,819
|
|
|
|
Purchases of
property, plant and equipment
|
(14,913)
|
|
(14,553)
|
|
|
|
Operating free cash
flow
|
$
(34,351)
|
|
$
(1,734)
|
The Company's operating cash flow was negative $19.4 million for the three months ended
September 30, 2017, a decrease of
$32.3 million from the three months
ended September 30, 2016. The
Company's operating free cash flow was negative $34.4 million for the three months ended
September 30, 2017, compared to
negative $1.7 million for the three
months ended September 30, 2016. The decrease in
operating free cash flow was primarily attributable to an increase
in inventories and accounts receivables.
The Company believes presenting net sales at constant currency
provides useful information to investors because it provides
transparency to underlying performance in the Company's
consolidated net sales by excluding the effect that foreign
currency exchange rate fluctuations have on year-to-year
comparability given the volatility in foreign currency exchange
markets. To present this information for historical periods,
current period net sales for entities reporting in currencies other
than the U.S. Dollar are translated into U.S. Dollars at the
average monthly exchange rates in effect during the corresponding
period of the prior fiscal year, rather than at the actual average
monthly exchange rate in effect during the current period of the
current fiscal year. As a result, the foreign currency impact is
equal to the current year results in local currencies multiplied by
the change in average foreign currency exchange rate between the
current fiscal period and the corresponding period of the prior
fiscal year.
The Company also provides net sales adjusted for both constant
currency and acquisitions and divestitures to understand the growth
rate of net sales excluding the impact of constant currency as well
as acquisitions and divestitures. Our management believes net
sales adjusted for both constant currency and acquisitions and
divestitures is useful to investors because it enables them to
better understand the growth of our business from
period-to-period.
The Company defines EBITDA as net income (a GAAP measure) before
income taxes, net interest expense, depreciation and amortization,
equity in earnings of equity method investees, stock based
compensation expense, and unrealized currency gains. Adjusted
EBITDA is defined as EBITDA before acquisition-related expenses,
including integration and restructuring charges, and other
non-recurring items. The Company's management believes that
these presentations provide useful information to management,
analysts and investors regarding certain additional financial and
business trends relating to its results of operations and financial
condition. In addition, management uses these measures for
reviewing the financial results of the Company as well as a
component of performance-based executive compensation.
For the three months ended September 30,
2017 and 2016, EBITDA and adjusted EBITDA was calculated as
follows:
|
Three Months
Ended
|
|
|
9/30/2017
|
|
9/30/2016
|
|
|
(unaudited and
dollars in thousands)
|
|
|
|
|
|
Net Income
|
$
19,846
|
|
$
8,604
|
|
Income
taxes
|
8,470
|
|
762
|
|
Interest expense,
net
|
5,620
|
|
4,354
|
|
Depreciation and
amortization
|
17,626
|
|
17,220
|
|
Equity in net income
of equity-method investees
|
(11)
|
|
(184)
|
|
Stock based
compensation expense
|
3,164
|
|
2,704
|
|
Unrealized currency
gains
|
(3,419)
|
|
(1,293)
|
|
EBITDA
|
51,296
|
|
32,167
|
|
|
|
|
|
|
Acquisition related
expenses, restructuring and integration charges, and
other
|
5,846
|
|
1,408
|
|
Losses on terminated
chilled desserts contract
|
1,472
|
|
-
|
|
U.K. and HPP start-up
costs
|
1,083
|
|
-
|
|
Co-packer
disruption
|
1,173
|
|
-
|
|
SKU
rationalization
|
-
|
|
5,199
|
|
U.K. deferred
synergies due to CMA Board decision
|
-
|
|
471
|
|
Accounting review
costs, net of insurance proceeds
|
(1,358)
|
|
5,960
|
|
Recall and other
related costs
|
-
|
|
412
|
|
Adjusted
EBITDA
|
$
59,512
|
|
$
45,617
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Balance Sheets
|
(in
thousands)
|
|
|
|
|
|
|
|
|
|
September 30,
2017
|
|
June 30,
2017
|
|
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
126,787
|
|
$
146,992
|
|
Accounts receivable,
net
|
272,341
|
|
248,436
|
|
Inventories
|
484,792
|
|
427,308
|
|
Prepaid expenses and
other current assets
|
60,976
|
|
52,045
|
|
|
Total current
assets
|
944,896
|
|
874,781
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
380,478
|
|
370,511
|
Goodwill
|
|
1,073,681
|
|
1,059,981
|
Trademarks and other
intangible assets, net
|
578,419
|
|
573,268
|
Investments and joint
ventures
|
19,109
|
|
18,998
|
Other
assets
|
35,264
|
|
33,565
|
|
|
Total
assets
|
$
3,031,847
|
|
$
2,931,104
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
247,321
|
|
$
222,136
|
|
Accrued expenses and
other current liabilities
|
111,746
|
|
108,514
|
|
Current portion of
long-term debt
|
18,231
|
|
9,844
|
|
|
Total current
liabilities
|
377,298
|
|
340,494
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
746,392
|
|
740,304
|
Deferred income
taxes
|
124,166
|
|
121,475
|
Other noncurrent
liabilities
|
16,460
|
|
15,999
|
|
|
Total
liabilities
|
1,264,316
|
|
1,218,272
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
1,081
|
|
1,080
|
|
Additional paid-in
capital
|
1,140,887
|
|
1,137,724
|
|
Retained
earnings
|
888,668
|
|
868,822
|
|
Accumulated other
comprehensive loss
|
(161,692)
|
|
(195,479)
|
|
|
|
1,868,944
|
|
1,812,147
|
|
Treasury
stock
|
(101,413)
|
|
(99,315)
|
|
|
Total stockholders'
equity
|
1,767,531
|
|
1,712,832
|
|
|
Total liabilities and
stockholders' equity
|
$
3,031,847
|
|
$
2,931,104
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Income
|
(unaudited
and in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
708,276
|
|
$
681,464
|
|
Cost of
sales
|
|
576,673
|
|
571,597
|
|
Gross
profit
|
|
131,603
|
|
109,867
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
90,721
|
|
84,967
|
|
Amortization of
acquired intangibles
|
|
4,911
|
|
4,728
|
|
Acquisition related
expenses, restructuring and integration charges
|
|
5,846
|
|
461
|
|
Accounting review
costs, net of insurance proceeds
|
|
(1,358)
|
|
5,960
|
|
Operating
income
|
|
31,483
|
|
13,751
|
|
|
|
|
|
|
|
Interest and other
financing expenses, net
|
|
6,315
|
|
5,081
|
|
Other
(income)/expense, net
|
|
(3,137)
|
|
(512)
|
|
Income before income
taxes and equity in net income of equity-method
investees
|
|
28,305
|
|
9,182
|
|
Provision for income
taxes
|
|
8,470
|
|
762
|
|
Equity in net income
of equity-method investees
|
|
(11)
|
|
(184)
|
|
Net income
|
|
$
19,846
|
|
$
8,604
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
Basic
|
|
$
0.19
|
|
$
0.08
|
|
Diluted
|
|
$
0.19
|
|
$
0.08
|
|
|
|
|
|
|
|
Shares used in the
calculation of net income per common share:
|
|
|
|
|
|
Basic
|
|
103,709
|
|
103,468
|
|
Diluted
|
|
104,476
|
|
104,206
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(unaudited
and in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30,
|
|
|
2017 GAAP
|
Adjustments
|
2017
Adjusted
|
|
2016 GAAP
|
Adjustments
|
2016
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
708,276
|
$
-
|
$
708,276
|
|
$
681,464
|
$
-
|
$
681,464
|
Cost of
sales
|
|
576,673
|
(3,728)
|
572,945
|
|
571,597
|
(5,570)
|
566,027
|
Gross
Margin
|
|
131,603
|
3,728
|
135,331
|
|
109,867
|
5,570
|
115,437
|
Operating expenses
(a)
|
|
95,632
|
-
|
95,632
|
|
89,695
|
(1,459)
|
88,236
|
Acquisition related
expenses, restructuring and integration charges
|
|
5,846
|
(5,846)
|
-
|
|
461
|
(461)
|
-
|
Accounting review
costs, net of insurance proceeds
|
|
(1,358)
|
1,358
|
-
|
|
5,960
|
(5,960)
|
-
|
Operating
Income
|
|
31,483
|
8,216
|
39,699
|
|
13,751
|
13,450
|
27,201
|
Interest and other
expenses (income), net (b)
|
|
3,178
|
3,420
|
6,598
|
|
4,569
|
1,293
|
5,862
|
Provision for income
taxes
|
|
8,470
|
972
|
9,442
|
|
762
|
5,856
|
6,618
|
Net income
|
|
19,846
|
3,824
|
23,670
|
|
8,604
|
6,301
|
14,906
|
Earnings per share -
diluted
|
|
0.19
|
0.04
|
0.23
|
|
0.08
|
0.06
|
0.14
|
(a)Operating expenses include amortization
of acquired intangibles and selling, general, and administrative
expenses
|
|
|
|
|
(b)Interest and other expenses, net
include interest and other financing expenses, net and other
(income)/expense, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Detail of
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
|
|
Three Months
Ended
September 30,
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
Losses on terminated
chilled desserts contract
|
|
|
$
1,472
|
|
|
|
$
-
|
|
SKU
rationalization
|
|
|
-
|
|
|
|
5,199
|
|
Recall and other
related costs
|
|
|
-
|
|
|
|
183
|
|
U.K. deferred
synergies due to CMA Board decision
|
|
|
-
|
|
|
|
188
|
|
Co-packer
disruption
|
|
|
1,173
|
|
|
|
-
|
|
U.K. and HPP start-up
costs
|
|
|
1,083
|
|
|
|
-
|
|
Cost of
sales
|
|
|
3,728
|
|
|
|
5,570
|
|
|
|
|
|
|
|
|
|
|
Gross
Margin
|
|
|
3,728
|
|
|
|
5,570
|
|
|
|
|
|
|
|
|
|
|
U.K. deferred
synergies due to CMA Board decision
|
|
|
-
|
|
|
|
283
|
|
Recall and other
related costs
|
|
|
-
|
|
|
|
229
|
|
Severance related
costs
|
|
|
-
|
|
|
|
947
|
|
Operating Expenses
(a)
|
|
|
-
|
|
|
|
1,459
|
|
|
|
|
|
|
|
|
|
|
Acquisition related
expenses, restructuring and integration charges
|
|
|
5,846
|
|
|
|
461
|
|
Acquisition related expenses,
restructuring and integration charges
|
|
|
5,846
|
|
|
|
461
|
|
|
|
|
|
|
|
|
|
|
Accounting review
costs, net of insurance proceeds
|
|
|
(1,358)
|
|
|
|
5,960
|
|
Accounting review
costs, net of insurance proceeds
|
|
|
(1,358)
|
|
|
|
5,960
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
|
8,216
|
|
|
|
13,450
|
|
|
|
|
|
|
|
|
|
|
Unrealized currency
gains
|
|
|
(3,420)
|
|
|
|
(1,293)
|
|
Interest and other
expenses (income), net (b)
|
|
|
(3,420)
|
|
|
|
(1,293)
|
|
|
|
|
|
|
|
|
|
|
Income tax related
adjustments
|
|
|
(972)
|
|
|
|
(5,856)
|
|
Provision for income
taxes
|
|
|
(972)
|
|
|
|
(5,856)
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
$
3,824
|
|
|
|
$
6,301
|
|
|
|
|
|
|
|
|
|
|
(a)Operating expenses include amortization
of acquired intangibles and selling, general, and administrative
expenses
|
(b)Interest and other expenses (income),
net includes interest and other financing expenses, net and other
(income)/expense, net
|
THE HAIN CELESTIAL
GROUP, INC.
|
Net Sales Growth
at Constant Currency
|
(unaudited and in
thousands)
|
|
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
United
Kingdom
|
|
Rest of
World
|
Net sales -
Three months ended 9/30/17
|
|
$
708,276
|
|
$
222,445
|
|
$
103,115
|
Impact of
foreign currency exchange
|
|
(4,143)
|
|
33
|
|
$
(4,177)
|
Net sales on a
constant currency basis -
Three months ended 9/30/17
|
|
$
704,133
|
|
$
222,478
|
|
$
98,938
|
|
|
|
|
|
|
|
Net sales -
Three months ended 9/30/16
|
|
$
681,464
|
|
$
220,151
|
|
$
90,412
|
Net sales
growth on a constant currency basis
|
|
3.3%
|
|
1.1%
|
|
9.4%
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales Growth
at Constant Currency and Adjusted for
Acquisitions/Divestitures
|
|
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
United
Kingdom
|
|
|
Net sales on a
constant currency basis -
Three months ended 9/30/17
|
|
$
704,133
|
|
$
222,478
|
|
|
|
|
|
|
|
|
|
Net sales - Three
months ended 9/30/16
|
|
$
681,464
|
|
$
220,151
|
|
|
Acquisitions
|
|
1,780
|
|
1,525
|
|
|
Divestitures
|
|
(8,732)
|
|
(6,968)
|
|
|
Net sales on a
constant currency basis adjusted for
acquisitions and divestitures - Three months
ended
9/30/16
|
|
$
674,512
|
|
$
214,708
|
|
|
Net sales
growth on a constant currency
basis adjusted for acquisitions and
divestitures
|
|
4.4%
|
|
3.6%
|
|
|
|
|
|
|
|
|
|
|
|
Hain
Daniels
|
|
|
|
|
Net Sales growth -
Three months ended 9/30/17
|
|
(1.4)%
|
|
|
|
|
Impact of
foreign currency exchange
|
|
0.0%
|
|
|
|
|
Impact of
acquisitions
|
|
(0.9)%
|
|
|
|
|
Impact of
divestitures
|
|
4.3%
|
|
|
|
|
Net sales growth on a
constant currency basis
adjusted for acquisitions and divestitures - Three
months ended 9/30/17
|
|
2.0%
|
|
|
|
|
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SOURCE The Hain Celestial Group, Inc.