LAKE SUCCESS, N.Y.,
Feb. 1, 2016 /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 second quarter ended
December 31, 2015.
Second Quarter Performance Highlights
- Record net sales of $752.6
million, an 8% increase, or 11% on a constant currency
basis, over prior year net sales of $696.4
million. Net sales were impacted by $18.3 million as a result of foreign exchange
rate movements versus a year ago.
- Earnings per diluted share of $0.55, a 28% increase; adjusted earnings per
diluted share of $0.57, a 6%
increase. Foreign currencies impacted reported results by
$0.01 per diluted share.
- Record operating income of $87.7
million, 11.7% of net sales; adjusted operating income of
$92.9 million, 12.3% of net
sales.
- Strong operating cash flow of $93.9
million, an increase of 82% over the prior year
quarter.
"Our record net sales reflect the continuing strong performance
from the United Kingdom and Rest
of World segments, which collectively grew 12% in constant currency
and the Hain Pure Protein Corporation segment ("HPPC"), which grew
21% excluding the acquisition of Empire®. Our strong sales
growth was impacted in the quarter primarily by reductions in
inventories at certain customers in the
United States segment," said Irwin
D. Simon, Founder, President and Chief Executive Officer of
Hain Celestial. "We were able to deliver these strong
results, reflecting our global diversified business model across
Hain Celestial's organic and natural brands, product categories,
customers and geographies."
Second Quarter 2016
The
United States segment reported second quarter net sales of
$342.3 million. In the
United Kingdom segment, net sales
were $194.2 million. HPPC reported
net sales of $141.7 million, and the
Rest of World segment reported net sales of $74.4 million. The Company had strong
branded sales in constant currency led by Plainville Farms®,
Tilda®, Ella's Kitchen®, Sun-Pat®, The Greek Gods®, Alba Botanica®
and Avalon Organics®. Net sales of Empire®, Kosher Valley®,
Joya® and Live Clean® brands acquired after the second quarter of
fiscal year 2015 also contributed to the sales growth.
The Company earned net income of $56.9
million, a 28% increase, and adjusted net income of
$59.2 million, a 7% increase,
compared to the prior year period. Earnings per diluted share
for the second quarter were $0.55, a
28% increase compared to the prior year period. On an
adjusted basis earnings per diluted share for the second quarter
were $0.57, a 6% increase compared to
the prior year period. Refer to Non-GAAP Financial Measures
in this press release for reconciliations.
"Hain Celestial continues to be at the forefront of the
evolution around changing consumer trends in consumer packaged
goods with a strong global brand portfolio in key growth
categories. We are uniquely positioned to satisfy the health
and wellness needs of consumers with our leading natural and
organic products as we work to deliver increased shareholder
value," concluded Irwin Simon.
Fiscal Year 2016 Guidance
The Company reiterated its
fiscal year 2016 guidance expectations of:
- Total net sales range of $2.90 billion
to $3.04 billion, an increase of approximately 7% to 12% as
compared to fiscal year 2015, and
- Earnings per diluted share range of $1.95 to $2.10, an increase of approximately 4%
to 12% as compared to fiscal year 2015.
With respect to the cadence of the second half of the Company's
fiscal year financial results, the Company expects net sales to be
slightly lower in the third quarter as compared to the fourth
quarter, while 42% to 46% of the Company's second half earnings
will be in the third quarter and the balance in the fourth
quarter.
Guidance is provided 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 results for the three and six
months ended December 31, 2015 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 12/31/15 (1)
|
$ 342,298
|
$ 194,226
|
$ 141,706
|
$
74,359
|
$
-
|
$ 752,589
|
|
|
|
|
|
|
|
Net sales - Three
months ended 12/31/14
|
$ 353,969
|
$ 200,797
|
$
86,216
|
$
55,401
|
$
-
|
$ 696,383
|
Non-GAAP Adjustments
(2)
|
$
5,331
|
$
-
|
$
-
|
$
-
|
$
-
|
$
5,331
|
Adjusted net sales -
Three months ended 12/31/14
|
$ 359,300
|
$ 200,797
|
$
86,216
|
$
55,401
|
$
-
|
$ 701,714
|
|
|
|
|
|
|
|
% change - FY'16 net
sales vs. FY'15 adjusted net sales
|
-4.7%
|
-3.3%
|
64.4%
|
34.2%
|
|
7.3%
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
Three months ended
12/31/15
|
|
|
|
|
|
|
Operating
income
|
$
50,221
|
$
18,768
|
$
18,125
|
$
4,689
|
$
(4,081)
|
$
87,722
|
Non-GAAP Adjustments
(2)
|
$
1,800
|
$
-
|
$
841
|
$
-
|
$
2,498
|
$
5,139
|
Adjusted operating
income
|
$
52,021
|
$
18,768
|
$
18,966
|
$
4,689
|
$
(1,583)
|
$
92,861
|
Adjusted operating
income margin
|
15.2%
|
9.7%
|
13.4%
|
6.3%
|
|
12.3%
|
|
|
|
|
|
|
|
Three months ended
12/31/14
|
|
|
|
|
|
|
Operating
income
|
$
55,591
|
$
12,263
|
$
7,715
|
$
5,613
|
$
(7,170)
|
$
74,012
|
Non-GAAP Adjustments
(2)
|
$
7,555
|
$
5,189
|
$
-
|
$
-
|
$
627
|
$
13,371
|
Adjusted operating
income
|
$
63,146
|
$
17,452
|
$
7,715
|
$
5,613
|
$
(6,543)
|
$
87,383
|
Adjusted operating
income margin
|
17.6%
|
8.7%
|
8.9%
|
10.1%
|
|
12.5%
|
|
|
|
|
|
|
|
(1) There were no
Non-GAAP adjustments to net sales for the three months ended
12/31/15
|
|
|
(2) 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 - Six
months ended 12/31/15 (1)
|
$ 673,511
|
$ 359,580
|
$ 265,694
|
$ 140,992
|
$
-
|
$ 1,439,777
|
|
|
|
|
|
|
|
Net sales - Six
months ended 12/31/14
|
$ 690,884
|
$ 373,076
|
$ 156,886
|
$ 106,794
|
$
-
|
$ 1,327,640
|
Non-GAAP Adjustments
(2)
|
$
15,773
|
$
-
|
$
-
|
$
928
|
$
-
|
$
16,701
|
Adjusted net sales -
Six months ended 12/31/14
|
$ 706,657
|
$ 373,076
|
$ 156,886
|
$ 107,722
|
$
-
|
$ 1,344,341
|
|
|
|
|
|
|
|
% change - FY'16 net
sales vs. FY'15 adjusted net sales
|
-4.7%
|
-3.6%
|
69.4%
|
30.9%
|
|
7.1%
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
Six months ended
12/31/15
|
|
|
|
|
|
|
Operating
income
|
$
94,687
|
$
28,972
|
$
28,396
|
$
6,784
|
$
(13,649)
|
$ 145,190
|
Non-GAAP Adjustments
(2)
|
$
3,897
|
$
1,020
|
$
886
|
$
514
|
$
4,592
|
$
10,909
|
Adjusted operating
income
|
$
98,584
|
$
29,992
|
$
29,282
|
$
7,298
|
$
(9,057)
|
$ 156,099
|
Adjusted operating
income margin
|
14.6%
|
8.3%
|
11.0%
|
5.2%
|
|
10.8%
|
|
|
|
|
|
|
|
Six months ended
12/31/14
|
|
|
|
|
|
|
Operating
income
|
$
85,181
|
$
17,858
|
$
11,534
|
$
6,248
|
$
(17,982)
|
$ 102,839
|
Non-GAAP Adjustments
(2)
|
$
30,358
|
$
8,164
|
$
140
|
$
2,187
|
$
2,496
|
$
43,345
|
Adjusted operating
income
|
$ 115,539
|
$
26,022
|
$
11,674
|
$
8,435
|
$
(15,486)
|
$ 146,184
|
Adjusted operating
income margin
|
16.4%
|
7.0%
|
7.4%
|
7.8%
|
|
10.9%
|
|
|
|
|
|
|
|
(1) There were no
Non-GAAP adjustments to net sales for the six months ended
12/31/15
|
|
|
|
(2) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
|
|
|
|
Webcast
Hain Celestial will host a conference call and
webcast at 4:30 PM Eastern Time today
to review its second quarter fiscal year 2016 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" 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", "remain", "potential", "can", "should",
"could", "future" and similar expressions, or the negative of those
expressions. 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 2016. 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. Such
factors include, among others, general economic and financial
market conditions; competition; our ability to respond to changes
and trends in customer and consumer demand, preferences and
consumption; our reliance on third party distributors,
manufacturers and suppliers; the consolidation or loss of a
significant customer; our ability to introduce new products and
improve existing products; availability and retention of key
personnel; our ability to effectively integrate our acquisitions;
our ability to successfully consummate any proposed divestitures;
liabilities arising from potential product recalls, market
withdrawals or product liability claims; outbreaks of diseases or
food-borne illnesses; potential litigation; the availability of
organic and natural ingredients; our ability to manage our supply
chain effectively; changes in fuel, raw material and commodity
costs; effects of climate change on our business and operations;
our ability to offset input cost increases; the interruption,
disruption or loss of operations at one or more of our
manufacturing facilities; the loss of one or more of our
independent co-packers; the disruption of our transportation
systems; risks associated with expansion into countries in which we
have no prior operating experience; risks associated with our
international sales and operations, including foreign currency
risks; impairment in the carrying value of our goodwill or other
intangible assets; our ability to use our trademarks; reputational
damage; changes in, or the failure to comply with, government laws
and regulations; liabilities or claims with respect to
environmental matters; our reliance on independent certification
for our products; a breach of security measures; our reliance on
our information technology systems; effects of general global
capital and credit market issues on our liquidity and cost of
borrowing; potential liabilities not covered by insurance; the
ability of joint venture investments to successfully execute
business plans; dilution in the value of our common shares; 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, 2015. 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.
Non-GAAP Financial Measures
This press release and the
accompanying tables include non-GAAP financial measures, including
adjusted operating income, adjusted income, adjusted income per
diluted share, 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 six months ended December 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 months and six months ended December 31, 2015 and 2014, adjusted EBITDA was
calculated as follows:
|
|
3 Months
Ended
|
6 Months
Ended
|
|
|
12/31/2015
|
12/31/2014
|
12/31/2015
|
12/31/2014
|
|
|
(dollars in
thousands)
|
Net Income
|
$
56,947
|
$
44,575
|
$
88,249
|
$
63,430
|
Income
taxes
|
21,379
|
20,931
|
35,761
|
26,997
|
Interest expense,
net
|
5,416
|
5,882
|
11,132
|
11,974
|
Depreciation and
amortization
|
15,843
|
14,322
|
31,409
|
28,902
|
Equity in earnings of
affiliates
|
31
|
(308)
|
(53)
|
(328)
|
Stock based
compensation
|
4,010
|
3,060
|
7,279
|
5,999
|
Subtotal
|
103,626
|
88,462
|
173,777
|
136,974
|
Adjustments
(a)
|
5,255
|
13,371
|
10,821
|
38,012
|
Adjusted
EBITDA
|
$
108,881
|
$
101,833
|
$
184,598
|
$
174,986
|
|
|
|
|
|
|
|
|
|
|
|
|
(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.
|
The Company defines Operating Free Cash Flow as cash provided
from or used in operating activities (a GAAP measure) less capital
expenditures. The Company views operating free cash flow as
an important measure because it is one factor in evaluating the
amount of cash available for discretionary investments. For
the six months ended December 31,
2015 and 2014, operating free cash flow was calculated as
follows:
|
Six Months
Ended
|
|
12/31/2015
|
|
12/31/2014
|
|
(dollars in
thousands)
|
Cash flow provided by
operating activities
|
$
|
99,644
|
|
|
$
|
54,251
|
|
Purchases of
property, plant and equipment
|
(41,177)
|
|
|
(25,766)
|
|
Operating free cash
flow
|
$
|
58,467
|
|
|
$
|
28,485
|
|
Our operating free cash flow was $58.5
million for the six months ended December 31, 2015, an
increase of $30.0 million from the
six months ended December 31, 2014. The increase in
operating free cash flow primarily resulted from an increase in net
income and other non-cash items. This was offset partially by
an increase in our capital expenditures principally related to the
purchase of a new factory location and production equipment in the
HPPC segment to accommodate current demand, as well as the
expansion of production lines at both our ready-to-heat rice
facility in the United Kingdom and
our plant-based beverage facilities in Europe to accommodate new products and
increased volume.
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
December 31,
2015
|
|
June 30,
2015
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
177,100
|
|
$
166,922
|
|
Accounts receivable,
net
|
350,408
|
|
320,197
|
|
Inventories
|
403,318
|
|
382,211
|
|
Deferred income
taxes
|
21,027
|
|
20,758
|
|
Prepaid expenses and
other current assets
|
49,513
|
|
42,931
|
|
|
Total current
assets
|
1,001,366
|
|
933,019
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
382,830
|
|
344,262
|
Goodwill,
net
|
1,219,725
|
|
1,136,079
|
Trademarks and other
intangible assets, net
|
659,267
|
|
647,754
|
Investments and joint
ventures
|
20,214
|
|
2,305
|
Other
assets
|
33,458
|
|
33,851
|
|
|
Total
assets
|
$
3,316,860
|
|
$
3,097,270
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
280,042
|
|
$
251,999
|
|
Accrued expenses and
other current liabilities
|
89,965
|
|
79,167
|
|
Current portion of
long-term debt
|
41,552
|
|
31,275
|
|
|
Total current
liabilities
|
411,559
|
|
362,441
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
940,462
|
|
812,608
|
Deferred income
taxes
|
145,984
|
|
145,297
|
Other noncurrent
liabilities
|
4,830
|
|
5,237
|
|
|
Total
liabilities
|
1,502,835
|
|
1,325,583
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
1,066
|
|
1,058
|
|
Additional paid-in
capital
|
1,103,357
|
|
1,073,671
|
|
Retained
earnings
|
885,763
|
|
797,514
|
|
Accumulated other
comprehensive loss
|
(107,577)
|
|
(42,406)
|
|
Subtotal
|
1,882,609
|
|
1,829,837
|
|
Treasury
stock
|
(68,584)
|
|
(58,150)
|
|
|
Total stockholders'
equity
|
1,814,025
|
|
1,771,687
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
3,316,860
|
|
$
3,097,270
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Income
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Six Months Ended
December 31,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
752,589
|
|
$
696,383
|
|
$
1,439,777
|
|
$
1,327,640
|
Cost of
sales
|
|
575,026
|
|
529,056
|
|
1,110,167
|
|
1,034,469
|
Gross
profit
|
|
177,563
|
|
167,327
|
|
329,610
|
|
293,171
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
82,607
|
|
88,621
|
|
168,861
|
|
179,544
|
Amortization/impairment of acquired
intangibles
|
|
4,736
|
|
4,303
|
|
9,408
|
|
8,813
|
Acquisition related
expenses, restructuring and
integration charges, net
|
|
2,498
|
|
391
|
|
6,151
|
|
1,975
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
87,722
|
|
74,012
|
|
145,190
|
|
102,839
|
|
|
|
|
|
|
|
|
|
Interest and other
expenses, net
|
|
9,365
|
|
8,814
|
|
21,233
|
|
12,740
|
Income before income
taxes and equity in earnings of
equity-method investees
|
|
78,357
|
|
65,198
|
|
123,957
|
|
90,099
|
Provision for income
taxes
|
|
21,379
|
|
20,931
|
|
35,761
|
|
26,997
|
Equity in net loss
(income) of equity-method investees
|
|
31
|
|
(308)
|
|
(53)
|
|
(328)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
56,947
|
|
$
44,575
|
|
$
88,249
|
|
$
63,430
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.55
|
|
$
0.44
|
|
$
0.86
|
|
$
0.63
|
Diluted
|
|
$
0.55
|
|
$
0.43
|
|
$
0.85
|
|
$
0.62
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
103,017
|
|
101,267
|
|
102,912
|
|
100,975
|
Diluted
|
|
104,161
|
|
103,226
|
|
104,209
|
|
102,941
|
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
|
2015 GAAP
|
Adjustments
|
|
2015
Adjusted
|
2014
Adjusted
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
752,589
|
$
-
|
|
$
752,589
|
$
701,714
|
Cost of
sales
|
|
575,026
|
(841)
|
|
574,185
|
523,967
|
Gross
profit
|
|
177,563
|
841
|
|
178,404
|
177,747
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
82,607
|
(1,800)
|
|
80,807
|
86,061
|
Amortization/impairment of acquired
intangibles
|
|
4,736
|
-
|
|
4,736
|
4,303
|
Acquisition related
expenses, restructuring and
integration charges, net
|
|
2,498
|
(2,498)
|
|
-
|
-
|
|
|
|
|
|
|
|
Operating
income
|
|
87,722
|
5,139
|
|
92,861
|
87,383
|
|
|
|
|
|
|
|
Interest and other
expenses, net
|
|
9,365
|
(2,980)
|
|
6,385
|
6,188
|
Income before income
taxes and equity in earnings of
equity-method investees
|
|
78,357
|
8,119
|
|
86,476
|
81,195
|
Provision for income
taxes
|
|
21,379
|
5,900
|
|
27,279
|
25,985
|
Equity in net loss
(income) of equity-method investees
|
|
31
|
-
|
|
31
|
(308)
|
|
|
|
|
|
|
|
Net income
|
|
$
56,947
|
$
2,219
|
|
$
59,166
|
$
55,518
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
$
0.55
|
$
0.02
|
|
$
0.57
|
$
0.55
|
Basic
|
|
$
0.55
|
$
0.02
|
|
$
0.57
|
$
0.54
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
103,017
|
|
|
103,017
|
101,267
|
Diluted
|
|
104,161
|
|
|
104,161
|
103,226
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2016
|
|
FY 2015
|
|
|
Impact on Income
Before Income Taxes
|
Impact on Income Tax
Provision
|
|
Impact on Income
Before Income Taxes
|
Impact on Income Tax
Provision
|
|
|
|
|
|
|
|
Nut butter
recall
|
|
$
-
|
$
-
|
|
$
5,331
|
$
2,026
|
Net sales
|
|
-
|
-
|
|
5,331
|
2,026
|
|
|
|
|
|
|
|
HPPC production
interruption related to chiller breakdown
|
|
841
|
320
|
|
-
|
-
|
Nut butter
recall
|
|
-
|
-
|
|
(496)
|
(188)
|
Fakenham inventory
allowance for fire
|
|
-
|
-
|
|
900
|
187
|
UK factory start-up
costs
|
|
-
|
-
|
|
3,289
|
682
|
Acquisition related
integration costs
|
|
-
|
-
|
|
1,396
|
364
|
Cost of
sales
|
|
841
|
320
|
|
5,089
|
1,045
|
|
|
|
|
|
|
|
Celestial Seasonings
marketing support related to new
packaging launch and Keurig transition
|
|
1,800
|
684
|
|
-
|
-
|
Nut butter
recall
|
|
-
|
-
|
|
2,432
|
924
|
Litigation
expenses
|
|
-
|
-
|
|
128
|
49
|
Selling, general and
administrative expenses
|
|
1,800
|
684
|
|
2,560
|
973
|
|
|
|
|
|
|
|
Acquisition related
fees and expenses, integration and
restructuring charges, including severance
|
|
2,498
|
549
|
|
391
|
142
|
Acquisition related
expenses, restructuring and
integration charges, net
|
|
2,498
|
549
|
|
391
|
142
|
|
|
|
|
|
|
|
Unrealized currency
impacts
|
|
2,764
|
980
|
|
2,626
|
868
|
HPPC chiller
disposal
|
|
216
|
82
|
|
-
|
-
|
Interest and other
expenses, net
|
|
2,980
|
1,062
|
|
2,626
|
868
|
|
|
|
|
|
|
|
UK tax rate change
impact on deferred taxes and
uncertain tax position reserve
|
|
-
|
3,285
|
|
-
|
-
|
Provision for income
taxes
|
|
-
|
3,285
|
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
adjustments
|
|
$
8,119
|
$
5,900
|
|
$
15,997
|
$
5,054
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
December 31,
|
|
|
2015 GAAP
|
Adjustments
|
|
2015
Adjusted
|
2014
Adjusted
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
1,439,777
|
$
-
|
|
$
1,439,777
|
$
1,344,341
|
Cost of
sales
|
|
1,110,167
|
(2,524)
|
|
1,107,643
|
1,015,338
|
Gross
profit
|
|
329,610
|
2,524
|
|
332,134
|
329,003
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
168,861
|
(2,234)
|
|
166,627
|
174,007
|
Amortization/impairment of acquired
intangibles
|
|
9,408
|
-
|
|
9,408
|
8,812
|
Acquisition related
expenses, restructuring and
integration charges, net
|
|
6,151
|
(6,151)
|
|
-
|
-
|
|
|
|
|
|
|
|
Operating
income
|
|
145,190
|
10,909
|
|
156,099
|
146,184
|
|
|
|
|
|
|
|
Interest and other
expenses, net
|
|
21,233
|
(7,443)
|
|
13,790
|
12,490
|
Income before income
taxes and equity in earnings of
equity-method investees
|
|
123,957
|
18,352
|
|
142,309
|
133,694
|
Provision for income
taxes
|
|
35,761
|
9,276
|
|
45,037
|
43,827
|
Equity in net loss
(income) of equity-method investees
|
|
(53)
|
-
|
|
(53)
|
(328)
|
|
|
|
|
|
|
|
Net income
|
|
$
88,249
|
$
9,076
|
|
$
97,325
|
$
90,195
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
$
0.86
|
$
0.09
|
|
$
0.95
|
$
0.89
|
Basic
|
|
$
0.85
|
$
0.08
|
|
$
0.93
|
$
0.88
|
Diluted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
102,912
|
|
|
102,912
|
100,975
|
Diluted
|
|
104,209
|
|
|
104,209
|
102,941
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2016
|
|
FY 2015
|
|
|
Impact on Income
Before Income Taxes
|
Impact on Income Tax
Provision
|
|
Impact on Income
Before Income Taxes
|
Impact on Income Tax
Provision
|
|
|
|
|
|
|
|
Nut butter
recall
|
|
$
-
|
$
-
|
|
$
15,773
|
$
5,994
|
European non-dairy
beverage withdrawal
|
|
-
|
-
|
|
928
|
316
|
Net sales
|
|
-
|
-
|
|
16,701
|
6,310
|
|
|
|
|
|
|
|
HPPC production
interruption related to chiller breakdown
|
|
841
|
320
|
|
-
|
-
|
US warehouse
consolidation project
|
|
426
|
162
|
|
-
|
-
|
Nut butter
recall
|
|
-
|
-
|
|
9,428
|
3,583
|
European non-dairy
beverage withdrawal
|
|
-
|
-
|
|
1,259
|
428
|
Fakenham inventory
allowance for fire
|
|
-
|
-
|
|
900
|
187
|
UK factory start-up
costs
|
|
743
|
149
|
|
6,021
|
1,249
|
Acquisition related
integration costs
|
|
514
|
155
|
|
1,523
|
390
|
Cost of
sales
|
|
2,524
|
786
|
|
19,131
|
5,837
|
|
|
|
|
|
|
|
Celestial Seasonings
marketing support related to new
packaging launch and Keurig transition
|
|
2,004
|
762
|
|
-
|
-
|
Tilda fire insurance
recovery costs
|
|
230
|
46
|
|
-
|
-
|
Nut butter
recall
|
|
-
|
-
|
|
4,909
|
1,864
|
Litigation
expenses
|
|
-
|
-
|
|
373
|
142
|
Acquisition related
integration costs
|
|
-
|
-
|
|
256
|
77
|
Selling, general and
administrative expenses
|
|
2,234
|
808
|
|
5,538
|
2,083
|
|
|
|
|
|
|
|
Acquisition related
fees and expenses, integration and
restructuring charges, including severance
|
|
6,151
|
1,929
|
|
1,694
|
637
|
Contingent
consideration expense
|
|
-
|
-
|
|
281
|
-
|
Acquisition related
expenses, restructuring and
integration charges, net
|
|
6,151
|
1,929
|
|
1,975
|
637
|
|
|
|
|
|
|
|
Unrealized currency
impacts
|
|
7,227
|
2,386
|
|
5,816
|
1,933
|
Gain on disposal of
investment held for sale
|
|
-
|
-
|
|
(311)
|
-
|
Gain on pre-existing
investment in HPPC
|
|
-
|
-
|
|
(5,334)
|
-
|
Interest accretion
and other items, net
|
|
-
|
-
|
|
79
|
30
|
HPPC chiller
disposal
|
|
216
|
82
|
|
-
|
-
|
Interest and other
expenses, net
|
|
7,443
|
2,468
|
|
250
|
1,963
|
|
|
|
|
|
|
|
UK tax rate change
impact on deferred taxes and
uncertain tax position reserve
|
|
-
|
3,285
|
|
-
|
-
|
Provision for income
taxes
|
|
-
|
3,285
|
|
-
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
adjustments
|
|
$
18,352
|
$
9,276
|
|
$
43,595
|
$
16,830
|
|
|
|
|
|
|
|
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SOURCE The Hain Celestial Group, Inc.