LAKE SUCCESS, N.Y.,
May 4, 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 third quarter ended
March 31, 2016.
Third Quarter Performance Highlights
- Net sales of $750.0 million, a
13% increase, or 15% on a constant currency basis, over prior year
period net sales of $662.7 million.
Net sales were impacted by $13.9
million of foreign exchange rate movements versus a year
ago.
- Hain Celestial US net sales increased by 2.7% on a constant
currency basis over the prior year period.
- Earnings per diluted share of $0.47, a 47% increase over the prior year period,
or on an adjusted basis $0.49, a 9%
increase over the prior year period. Foreign currencies impacted
reported results by $0.01 per diluted
share.
- Operating income of $69.0
million, or 9.2% of net sales; adjusted operating income of
$80.4 million, or 10.7% of net
sales.
- Strong nine month operating cash flow of $131 million, an increase of 87% over the prior
year period.
"Our net sales reflect the strong performance across our
businesses led by Hain Celestial United States, Hain Pure Protein,
Hain Celestial United Kingdom and Hain Celestial Europe as well as
Hain Celestial Canada," said Irwin D.
Simon, Founder, President and Chief Executive Officer of
Hain Celestial. "The diversification of our product portfolio
with leading organic, natural and better-for-you brands around the
world, combined with our team's solid execution of our operational
initiatives fueled our financial performance. We are
extremely pleased with our US results where we returned to growth
in the third quarter and expect these trends to continue."
Third Quarter 2016
The United States segment reported
third quarter net sales of $351.9
million. In the United
Kingdom segment, net sales were $208.4 million. Hain Pure Protein reported net
sales of $113.6 million, and the Rest
of World segment reported net sales of $75.9
million. The Company had strong branded sales in
constant currency led by Imagine®, Plainville Farms®, Terra®,
Garden of Eatin'®, Tilda®, Yves®, FreeBird®, The Greek Gods®,
Spectrum® and Sensible Portions® brands as well as its personal
care brands, Alba Botanica® and Jason®. Net sales of
Joya® brand and the Orchard House Foods business, both acquired
after the third quarter of fiscal year 2015 also contributed to the
net sales growth.
The Company earned net income of $49.0
million, a 47% increase, and adjusted net income of
$50.6 million, a 9% increase,
compared to the prior year period. Earnings per diluted share
for the third quarter were $0.47, a
47% increase compared to the prior year period. On an
adjusted basis earnings per diluted share for the third quarter
were $0.49, a 9% increase compared to
the prior year period. Refer to "Non-GAAP Financial
Measures" section in this press release for reconciliations.
Project Terra
As previously communicated, the Company commenced a strategic
review under Project Terra and has identified approximately
$100 million in global cost savings,
which it expects to achieve during fiscal years 2017 through
2019. These initiatives are expected to include optimizing
plants, co-packers and procurement and rationalizing the Company's
product portfolio, and reinvesting these incremental savings into
the business to further brand building efforts and household
penetration. Effective immediately, James R. Meiers has been appointed to the
newly-created position of Chief Operations Officer for Hain
Celestial reporting to Irwin Simon,
with responsibility for achieving the cost savings across the
Company's worldwide operations.
The strategic review has also resulted in the Company redefining
its core platforms for future growth based upon consumer trends to
create and inspire A Healthier Way of Life™. The core
platforms are now defined by common consumer need, route-to-market
or internal advantage and are aligned with the Company's strategic
roadmap to continue its leadership position in the organic and
natural, better-for-you industry.
Beginning in fiscal year 2017, the Company plans to establish
five strategic platforms within Hain Celestial US with the purpose
to drive accelerated net sales and margin growth. The
platforms will be:
- Fresh Living—includes poultry, yogurt, plant-based
proteins and other refrigerated products;
- Better-for-You Baby—includes infant foods, infant
formula, diapers and wipe products that nurture and care for babies
and toddlers;
- Better-for-You Snacking—wholesome products for
in-between meals;
- Better-for-You Pantry—core consumer staples; and
- Pure Personal Care—personal care products focused on
providing consumers with cleaner and gentler ingredients.
In addition, the Company will launch Cultivate Ventures
("Cultivate"), a venture unit whose purpose is threefold: (i)
to strategically invest in the Company's smaller brands in high
potential categories such as SunSpire® chocolates and DeBoles®
pasta by giving them a dedicated, creative focus for refresh and
relaunch; (ii) to incubate small acquisitions until they reach the
scale for the Company's core platforms; and (iii) to invest in
concepts, products and technology, which focus on health and
wellness.
The Company has also identified certain brands representing
approximately $30 million in sales,
which no longer fit into its core strategy for future growth, and
it intends to sell these as a group.
"We are excited about the launch of our new platforms in fiscal
year 2017, which are uniquely aligned with consumer eating habits
and usage needs," commented Irwin
Simon. "We believe our platforms represent distinct
opportunities for incremental growth and margin improvement.
We expect this new approach will enable us to define more distinct
channel strategies for our branded product offerings, and ensure
that we continue to extend our organic and natural industry
leadership position."
Fiscal Year 2016 Guidance
The Company updated its fiscal year 2016 guidance expectations:
- Total net sales range of $2.946 billion
to $2.966 billion, an increase of approximately 9% to 10% as
compared to fiscal year 2015, and
- Earnings per diluted share range of $2.00 to $2.04, an increase of approximately 6%
to 9% as compared to fiscal year 2015.
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, Hain Pure Protein and Rest of
World (comprised of Canada and
Continental Europe).
The following is a summary of results for the three and nine
months ended March 31, 2016 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 03/31/16
|
$
351,887
|
$
208,391
|
$
113,643
|
$
75,941
|
$
-
|
$
749,862
|
|
|
|
|
|
|
|
Net sales - Three
months ended 03/31/15
|
$
343,728
|
$
178,068
|
$
83,192
|
$
57,751
|
$
-
|
$
662,739
|
|
|
|
|
|
|
|
% change - FY'16 net
sales vs. FY'15 net sales
|
2.4%
|
17.0%
|
36.6%
|
31.5%
|
|
13.1%
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
Three months ended
03/31/16
|
|
|
|
|
|
|
Operating
income
|
$
54,546
|
$
16,217
|
$
4,613
|
$
6,198
|
$
(12,567)
|
$
69,007
|
Non-GAAP Adjustments
(1)
|
$
2,700
|
$
-
|
$
3,054
|
$
-
|
$
5,701
|
$
11,455
|
Adjusted operating
income
|
$
57,246
|
$
16,217
|
$
7,667
|
$
6,198
|
$
(6,866)
|
$
80,462
|
Adjusted operating
income margin
|
16.3%
|
7.8%
|
6.7%
|
8.2%
|
|
10.7%
|
|
|
|
|
|
|
|
Three months ended
03/31/15
|
|
|
|
|
|
|
Operating
income
|
$
55,851
|
$
11,760
|
$
4,970
|
$
4,412
|
$
(16,799)
|
$
60,194
|
Non-GAAP Adjustments
(1)
|
$
3,188
|
$
3,838
|
$
-
|
$
-
|
$
10,326
|
$
17,352
|
Adjusted operating
income
|
$
59,039
|
$
15,598
|
$
4,970
|
$
4,412
|
$
(6,473)
|
$
77,546
|
Adjusted operating
income margin
|
17.2%
|
8.8%
|
6.0%
|
7.6%
|
|
11.7%
|
|
|
|
|
|
|
|
(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(dollars in
thousands)
|
United
States
|
United
Kingdom
|
Hain Pure
Protein
|
Rest of
World
|
Corporate/
Other
|
Total
|
NET
SALES
|
|
|
|
|
|
|
Net sales - Nine
months ended 03/31/16(1)
|
$
1,025,398
|
$
567,971
|
$
379,336
|
$
216,934
|
$
-
|
$
2,189,639
|
|
|
|
|
|
|
|
Net sales - Nine
months ended 03/31/15
|
$
1,034,612
|
$
551,144
|
$
240,078
|
$
164,545
|
$
-
|
$
1,990,379
|
Non-GAAP Adjustments
(2)
|
$
15,773
|
$
-
|
$
-
|
$
928
|
$
-
|
$
16,701
|
Adjusted net sales -
Nine months ended 03/31/15
|
$
1,050,385
|
$
551,144
|
$
240,078
|
$
165,473
|
$
-
|
$
2,007,080
|
|
|
|
|
|
|
|
% change - FY'16 net
sales vs. FY'15 adjusted net sales
|
-2.4%
|
3.1%
|
58.0%
|
31.1%
|
|
9.1%
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
|
|
|
|
|
Nine months ended
03/31/16
|
|
|
|
|
|
|
Operating
income
|
$
149,233
|
$
45,189
|
$
33,009
|
$
12,981
|
$
(26,216)
|
$
214,196
|
Non-GAAP Adjustments
(2)
|
$
6,597
|
$
1,020
|
$
3,940
|
$
515
|
$
10,293
|
$
22,365
|
Adjusted operating
income
|
$
155,830
|
$
46,209
|
$
36,949
|
$
13,496
|
$
(15,923)
|
$
236,561
|
Adjusted operating
income margin
|
15.2%
|
8.1%
|
9.7%
|
6.2%
|
|
10.8%
|
|
|
|
|
|
|
|
Nine months ended
03/31/15
|
|
|
|
|
|
|
Operating
income
|
$
141,031
|
$
29,618
|
$
16,505
|
$
10,660
|
$
(34,781)
|
$
163,033
|
Non-GAAP Adjustments
(2)
|
$
33,546
|
$
12,002
|
$
140
|
$
2,187
|
$
12,822
|
$
60,697
|
Adjusted operating
income
|
$
174,577
|
$
41,620
|
$
16,645
|
$
12,847
|
$
(21,959)
|
$
223,730
|
Adjusted operating
income margin
|
16.6%
|
7.6%
|
6.9%
|
7.8%
|
|
11.1%
|
|
|
|
|
|
|
|
(1) There were no
Non-GAAP adjustments to net sales for the nine months ended
03/31/16
|
|
|
|
|
(2) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
|
|
|
|
|
Webcasts
Hain Celestial will host a
conference call and webcast at 8:30 AM
Eastern Time today to review its third 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.
On Thursday, May 19, 2016 at
8:50 AM Eastern Time the Company is
scheduled to present at BMO Capital Markets 2016 Farm to Market
Conference. The presentation 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 (i) the Company's growth trends, initiatives and strategies with
respect to Project Terra and its strategic platforms; (ii) the
Company's ability to achieve approximately $100 million in global cost savings; and (iii)
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
net income, adjusted earnings 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 nine months ended March 31,
2016 and 2015 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 nine months ended March 31, 2016
and 2015, operating free cash flow was calculated as follows:
|
Nine Months
Ended
|
|
03/31/2016
|
|
03/31/2015
|
|
(dollars in
thousands)
|
Cash flow provided by
operating activities
|
$
|
131,853
|
|
|
$
|
70,169
|
|
Purchases of
property, plant and equipment
|
(58,022)
|
|
|
(36,312)
|
|
Operating free cash
flow
|
$
|
73,831
|
|
|
$
|
33,857
|
|
Our operating free cash flow was $73.8
million for the nine months ended March 31, 2016, an
increase of $40.0 million from the
nine months ended March 31, 2015. The increase in
operating free cash flow primarily resulted from an increase in net
income. 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 Hain Pure Protein
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 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 nine months ended March 31, 2016 and 2015, adjusted EBITDA was
calculated as follows:
|
3 Months
Ended
|
|
9 Months
Ended
|
|
3/31/2016
|
|
3/31/2015
|
|
3/31/2016
|
|
3/31/2015
|
|
(dollars in
thousands)
|
Net Income
|
$ 48,985
|
|
$ 33,394
|
|
$ 137,234
|
|
$ 96,824
|
Income
taxes
|
21,576
|
|
18,147
|
|
57,337
|
|
45,144
|
Interest expense,
net
|
6,233
|
|
5,670
|
|
17,365
|
|
17,644
|
Depreciation and
amortization
|
16,085
|
|
14,162
|
|
47,190
|
|
43,064
|
Equity in earnings of
affiliates
|
161
|
|
13
|
|
108
|
|
(315)
|
Stock based
compensation
|
2,776
|
|
2,935
|
|
10,004
|
|
8,934
|
Tradename impairment
charge
|
-
|
|
5,510
|
|
-
|
|
5,510
|
Acquisition related
fees and expenses,
integration and restructuring charges,
including severance, and other
|
4,190
|
|
5,572
|
|
10,855
|
|
8,789
|
Contingent
consideration expense
|
1,511
|
|
-
|
|
1,511
|
|
281
|
Nut butter
recall
|
-
|
|
-
|
|
-
|
|
30,110
|
European non-dairy
beverage withdrawal
|
-
|
|
-
|
|
-
|
|
2,187
|
HPPC costs related to
chiller breakdown and factory start-up costs
|
3,054
|
|
-
|
|
4,111
|
|
-
|
Ashland factory and
related expenses
|
-
|
|
2,142
|
|
-
|
|
2,142
|
UK factory start-up
costs
|
-
|
|
2,512
|
|
743
|
|
8,533
|
US warehouse
consolidation project
|
-
|
|
-
|
|
426
|
|
-
|
Fakenham inventory
allowance for fire
|
-
|
|
-
|
|
-
|
|
900
|
Litigation
expenses
|
-
|
|
518
|
|
-
|
|
891
|
Celestial Seasonings
packaging launch support and Keurig transition
|
2,700
|
|
-
|
|
4,704
|
|
-
|
Tilda fire insurance
recovery costs and other start-up/ integration
costs
|
-
|
|
1,098
|
|
230
|
|
1,354
|
Gain on Tilda
fire
|
(9,013)
|
|
-
|
|
(9,013)
|
|
-
|
Gain on pre-existing
investment in HPPC and Empire Kosher
|
-
|
|
(2,922)
|
|
-
|
|
(8,256)
|
Adjusted
EBITDA
|
$ 98,258
|
|
$ 88,751
|
|
$ 282,805
|
|
$ 263,736
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
March 31,
2016
|
|
June 30,
2015
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
125,390
|
|
$
166,922
|
|
Accounts receivable,
net
|
360,964
|
|
320,197
|
|
Inventories
|
394,958
|
|
382,211
|
|
Deferred income
taxes
|
21,421
|
|
20,758
|
|
Prepaid expenses and
other current assets
|
43,469
|
|
42,931
|
|
|
Total current
assets
|
946,202
|
|
933,019
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
392,719
|
|
344,262
|
Goodwill,
net
|
1,195,305
|
|
1,136,079
|
Trademarks and other
intangible assets, net
|
643,940
|
|
647,754
|
Investments and joint
ventures
|
20,034
|
|
2,305
|
Other
assets
|
32,966
|
|
33,851
|
|
|
Total
assets
|
$
3,231,166
|
|
$
3,097,270
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
233,642
|
|
$
251,999
|
|
Accrued expenses and
other current liabilities
|
93,050
|
|
79,167
|
|
Current portion of
long-term debt
|
37,806
|
|
31,275
|
|
|
Total current
liabilities
|
364,498
|
|
362,441
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
879,627
|
|
812,608
|
Deferred income
taxes
|
142,188
|
|
145,297
|
Other noncurrent
liabilities
|
5,986
|
|
5,237
|
|
|
Total
liabilities
|
1,392,299
|
|
1,325,583
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
1,075
|
|
1,058
|
|
Additional paid-in
capital
|
1,120,777
|
|
1,073,671
|
|
Retained
earnings
|
934,748
|
|
797,514
|
|
Accumulated other
comprehensive loss
|
(129,062)
|
|
(42,406)
|
|
Subtotal
|
1,927,538
|
|
1,829,837
|
|
Treasury
stock
|
(88,671)
|
|
(58,150)
|
|
|
Total stockholders'
equity
|
1,838,867
|
|
1,771,687
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
3,231,166
|
|
$
3,097,270
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Income
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Nine Months Ended
March 31,
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
749,862
|
|
$
662,739
|
|
$
2,189,639
|
|
$
1,990,379
|
Cost of
sales
|
|
576,653
|
|
504,990
|
|
1,686,820
|
|
1,539,459
|
Gross
profit
|
|
173,209
|
|
157,749
|
|
502,819
|
|
450,920
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
93,915
|
|
83,068
|
|
262,776
|
|
262,613
|
Amortization/impairment of acquired
intangibles
|
|
4,586
|
|
10,189
|
|
13,994
|
|
19,001
|
Acquisition related
expenses, restructuring and
integration charges, and other
|
|
5,701
|
|
4,298
|
|
11,852
|
|
6,273
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
69,007
|
|
60,194
|
|
214,197
|
|
163,033
|
|
|
|
|
|
|
|
|
|
Interest and other
expenses, net
|
|
(1,715)
|
|
8,640
|
|
19,518
|
|
21,380
|
Income before income
taxes and equity in earnings of
equity-method investees
|
|
70,722
|
|
51,554
|
|
194,679
|
|
141,653
|
Provision for income
taxes
|
|
21,576
|
|
18,147
|
|
57,337
|
|
45,144
|
Equity in net loss
(income) of equity-method investees
|
|
161
|
|
13
|
|
108
|
|
(315)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
48,985
|
|
$
33,394
|
|
$
137,234
|
|
$
96,824
|
|
|
|
|
|
|
|
|
|
Net income per common
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.47
|
|
$
0.33
|
|
$
1.33
|
|
$
0.95
|
Diluted
|
|
$
0.47
|
|
$
0.32
|
|
$
1.32
|
|
$
0.94
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
103,265
|
|
102,252
|
|
103,030
|
|
101,401
|
Diluted
|
|
104,087
|
|
103,796
|
|
104,168
|
|
103,226
|
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2016 GAAP
|
Adjustments
|
2016
Adjusted
|
|
2015 GAAP
|
Adjustments
|
2015
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
749,862
|
$
-
|
$
749,862
|
|
$
662,739
|
$
-
|
$
662,739
|
Cost of
sales
|
|
576,653
|
(3,054)
|
573,599
|
|
504,990
|
(5,928)
|
499,062
|
Operating expenses
(a)
|
|
98,501
|
(2,700)
|
95,801
|
|
93,257
|
(7,126)
|
86,131
|
Acquisition related
expenses, restructuring and
integration charges, and other
|
|
5,701
|
(5,701)
|
-
|
|
4,298
|
(4,298)
|
-
|
Operating
Income
|
|
69,007
|
11,455
|
80,462
|
|
60,194
|
17,352
|
77,546
|
Interest and other
expenses, net
|
|
(1,715)
|
9,149
|
7,434
|
|
8,640
|
(2,216)
|
6,424
|
Provision for income
taxes
|
|
21,576
|
712
|
22,288
|
|
18,147
|
6,427
|
24,574
|
Net income
|
|
48,985
|
1,594
|
50,579
|
|
33,394
|
13,141
|
46,535
|
Earnings per share -
diluted
|
|
0.47
|
0.02
|
0.49
|
|
0.32
|
0.13
|
0.45
|
|
|
|
|
|
|
|
|
|
(a)Operating expenses include
amortization/impairment of acquired intangibles and selling,
general, and administrative expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
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
|
|
|
|
|
|
|
|
|
|
HPPC costs related to
chiller breakdown and
factory start-up costs
|
|
3,054
|
|
943
|
|
-
|
|
-
|
Ashland factory and
related expenses
|
|
-
|
|
-
|
|
2,142
|
|
814
|
UK factory start-up
costs
|
|
-
|
|
-
|
|
2,512
|
|
521
|
Acquisition and other
integration costs
|
|
-
|
|
-
|
|
1,274
|
|
427
|
Cost of
sales
|
|
3,054
|
|
943
|
|
5,928
|
|
1,762
|
|
|
|
|
|
|
|
|
|
Celestial Seasonings
packaging launch support
|
|
2,700
|
|
833
|
|
-
|
|
-
|
Tilda fire insurance
recovery costs and other start-up/
integration costs
|
|
-
|
|
-
|
|
1,098
|
|
275
|
Litigation
expenses
|
|
-
|
|
-
|
|
518
|
|
197
|
Selling, general and
administrative expenses
|
|
2,700
|
|
833
|
|
1,616
|
|
472
|
|
|
|
|
|
|
|
|
|
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, including severance, and
other
|
|
4,190
|
|
1,294
|
|
4,298
|
|
1,463
|
Contingent
consideration expense
|
|
1,511
|
|
466
|
|
-
|
|
-
|
Acquisition related
expenses, restructuring and
integration charges, and other
|
|
5,701
|
|
1,760
|
|
4,298
|
|
1,463
|
|
|
|
|
|
|
|
|
|
Unrealized currency
impacts
|
|
(136)
|
|
(42)
|
|
5,138
|
|
1,628
|
Gain on Tilda
fire
|
|
(9,013)
|
|
(2,782)
|
|
-
|
|
-
|
Gain on pre-existing
investment in HPPC and Empire Kosher
|
|
-
|
|
-
|
|
(2,922)
|
|
-
|
Interest and other
expenses, net
|
|
(9,149)
|
|
(2,824)
|
|
2,216
|
|
1,628
|
|
|
|
|
|
|
|
|
|
Total
adjustments
|
|
$
2,306
|
|
$
712
|
|
$
19,568
|
|
$
6,427
|
|
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31,
|
|
|
2016 GAAP
|
Adjustments
|
2016
Adjusted
|
|
2015 GAAP
|
Adjustments
|
2015
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
2,189,639
|
$
-
|
$
2,189,639
|
|
$
1,990,379
|
$ 16,701
|
$
2,007,080
|
Cost of
sales
|
|
1,686,820
|
(5,578)
|
1,681,242
|
|
1,539,459
|
(25,059)
|
1,514,400
|
Operating expenses
(a)
|
|
276,770
|
(4,934)
|
271,836
|
|
281,614
|
(12,664)
|
268,950
|
Acquisition related
expenses, restructuring and
integration charges, and other
|
|
11,852
|
(11,852)
|
-
|
|
6,273
|
(6,273)
|
-
|
Operating
Income
|
|
214,197
|
22,364
|
236,561
|
|
163,033
|
60,697
|
223,730
|
Interest and other
expenses, net
|
|
19,518
|
1,706
|
21,224
|
|
21,380
|
(2,466)
|
18,914
|
Provision for income
taxes
|
|
57,337
|
9,988
|
67,325
|
|
45,144
|
23,257
|
68,401
|
Net income
|
|
137,234
|
10,670
|
147,904
|
|
96,824
|
39,906
|
136,730
|
Earnings per share -
diluted
|
|
1.32
|
0.10
|
1.42
|
|
0.94
|
0.38
|
1.32
|
|
|
|
|
|
|
|
|
|
(a)Operating expenses include
amortization/impairment of acquired intangibles and selling,
general, and administrative expenses.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31,
|
|
|
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 costs related to
chiller breakdown and
factory start-up costs
|
|
3,895
|
|
1,263
|
|
-
|
|
-
|
US warehouse
consolidation project
|
|
426
|
|
162
|
|
-
|
|
-
|
UK factory start-up
costs
|
|
743
|
|
149
|
|
8,533
|
|
1,770
|
Acquisition and other
integration costs
|
|
514
|
|
155
|
|
2,797
|
|
817
|
Ashland factory and
related expenses
|
|
-
|
|
-
|
|
2,142
|
|
814
|
Nut butter
recall
|
|
-
|
|
-
|
|
9,428
|
|
3,583
|
European non-dairy
beverage withdrawal
|
|
-
|
|
-
|
|
1,259
|
|
428
|
Fakenham inventory
allowance for fire
|
|
-
|
|
-
|
|
900
|
|
187
|
Cost of
sales
|
|
5,578
|
|
1,729
|
|
25,059
|
|
7,599
|
|
|
|
|
|
|
|
|
|
Celestial Seasonings
packaging launch support
and Keurig transition
|
|
4,704
|
|
1,595
|
|
-
|
|
-
|
Tilda fire insurance
recovery costs and other start-up/
integration costs
|
|
230
|
|
46
|
|
1,354
|
|
352
|
Nut butter
recall
|
|
-
|
|
-
|
|
4,909
|
|
1,864
|
Litigation
expenses
|
|
-
|
|
-
|
|
891
|
|
339
|
Selling, general and
administrative expenses
|
|
4,934
|
|
1,641
|
|
7,154
|
|
2,555
|
|
|
|
|
|
|
|
|
|
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, including severance, and other
|
|
10,341
|
|
3,223
|
|
5,992
|
|
2,100
|
Contingent
consideration expense
|
|
1,511
|
|
466
|
|
281
|
|
-
|
Acquisition related
expenses, restructuring and
integration charges, and other
|
|
11,852
|
|
3,689
|
|
6,273
|
|
2,100
|
|
|
|
|
|
|
|
|
|
Unrealized currency
impacts
|
|
7,091
|
|
2,344
|
|
10,957
|
|
3,561
|
Gain on Tilda
fire
|
|
(9,013)
|
|
(2,782)
|
|
-
|
|
-
|
Gain on disposal of
investment held for sale
|
|
-
|
|
-
|
|
(314)
|
|
-
|
Gain on pre-existing
investment in HPPC and Empire Kosher
|
|
-
|
|
-
|
|
(8,256)
|
|
-
|
Interest accretion
and other items, net
|
|
-
|
|
-
|
|
79
|
|
30
|
HPPC chiller
disposal
|
|
216
|
|
82
|
|
-
|
|
-
|
Interest and other
expenses, net
|
|
(1,706)
|
|
(356)
|
|
2,466
|
|
3,591
|
|
|
|
|
|
|
|
|
|
UK tax rate change
impact on deferred taxes and
uncertain tax position reserve
|
|
-
|
|
3,285
|
|
-
|
|
-
|
Provision for income
taxes
|
|
-
|
|
3,285
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
adjustments
|
|
$
20,658
|
|
$
9,988
|
|
$
63,163
|
|
$
23,257
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Photo -
http://photos.prnewswire.com/prnh/20160503/363415
Logo -
http://photos.prnewswire.com/prn/20130502/NY06743LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/hain-celestial-announces-third-quarter-fiscal-year-2016-results-300262511.html
SOURCE The Hain Celestial Group, Inc.