LAKE SUCCESS, N.Y.,
Nov. 9, 2021 /PRNewswire/ -- The
Hain Celestial Group, Inc. (Nasdaq: HAIN) ("Hain Celestial", "Hain"
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, 2021.
Mark L. Schiller, Hain
Celestial's President and Chief Executive Officer, commented, "We
are pleased to have delivered better top line and bottom line first
quarter performance than our guidance as we navigated a challenging
operating environment affected by industry-wide inflation and labor
challenges. In September, we held our Investor Day, during which we
shared our Hain 3.0 vision and strategy for the next several years
at Hain, focused on building a global healthy food and beverage
company with industry-leading top line growth. We believe that we
are well positioned for the future, and we expect another strong
year as we continue to create shareholder value."
FINANCIAL HIGHLIGHTS*
Summary of First Quarter Results from Continuing
Operations
- Net sales decreased 9% to $454.9
million, or 11% on a constant currency basis, compared to
the prior year period.
- When adjusted for foreign exchange, divestitures and
discontinued brands, net sales were flat compared to the prior year
period.
- Gross margin of 23.2%, a 72 basis point decrease from the prior
year period.
- Adjusted gross margin of 23.9%, a 24 basis point decrease from
the prior year period.
- Operating income of $25.5 million
compared $3.3 million in the prior
year period.
- Adjusted operating income of $34.3
million compared to $38.8
million in the prior year period.
- Net income of $19.4 million
compared to a net loss of $10.8
million in the prior year period.
- Adjusted net income of $23.8
million compared to $27.4
million in prior year period.
- Adjusted EBITDA of $47.3 million
compared to $54.9 million in the
prior year period.
- Adjusted EBITDA margin of 10.4%, a 61 basis point decrease
compared to the prior year period.
- Earnings per diluted share ("EPS") of $0.20 compared to a loss of $0.11 in the prior year period.
- Adjusted EPS of $0.25 compared to
$0.27 in the prior year period.
- Repurchased 4.5 million shares, or 4.6% of the outstanding
common stock, at an average price of $38.80 per share.
SEGMENT HIGHLIGHTS FROM CONTINUING OPERATIONS
The Company operates under two reportable segments: North America and International.
North
America
North
America net sales in the first quarter were $265.5 million, a decrease of 5% compared to the
prior year period. When adjusted for foreign exchange,
divestitures and discontinued brands, net sales decreased 1%
from the prior year period.
Segment gross profit in the first quarter was $56.8 million, a 24% decrease from the prior
year period. Adjusted gross profit was $59.2
million, a decrease of 22% from the prior year period. Gross
margin was 21.4%, a 533 basis point decrease from the prior year
period, and adjusted gross margin was 22.3%, a 476 basis point
decrease from the prior year period.
Segment operating income in the first quarter was $16.8 million, a 49% decrease from the prior year
period. Adjusted operating income was $20.5
million, a 41% decrease from the prior year period.
Adjusted EBITDA in the first quarter was $24.1 million, a 38% decrease from the prior year
period. As a percentage of sales, North
America adjusted EBITDA margin was 9.1%, a 486 basis point
decrease from the prior year period.
International
International net sales in the first
quarter were $189.4 million, a
decrease of 13% compared to the prior year period. When adjusted
for foreign exchange, divestitures and discontinued brands,
net sales increased 2% compared to the prior year period.
Segment gross profit in the first quarter was $48.6 million, a 10% increase from the prior
year period. Adjusted gross profit was $49.5
million, an increase of 11% from the prior year period.
Gross margin was 25.7%, a 541 basis point increase from the prior
year period, and adjusted gross margin was 26.1%, a 576 basis point
increase from the prior year period.
Segment operating income in the first quarter was $24.1 million, compared to a loss of
$15.9 million in the prior year
period. Adjusted operating income was $25.2 million, an increase of 46% from the prior
year period.
Adjusted EBITDA in the first quarter was $32.4 million, a 21% increase from the prior year
period. As a percentage of sales, International adjusted EBITDA
margin was 17.1%, a 487 basis point increase from the prior year
period.
CAPITAL MANAGEMENT
As previously disclosed, the Board of Directors of the Company
approved an additional $300 million
share repurchase authorization in August
2021. Share repurchases under the 2021 authorization
commenced in August 2021, after the
2017 authorization was fully utilized. The extent to which the
Company repurchases its shares and the timing of such repurchases
will be at the Company's discretion and will depend upon market
conditions and other corporate considerations. Repurchases may be
made from time to time in the open market, pursuant to pre-set
trading plans, in private transactions or otherwise.
During the first quarter of fiscal year 2022, the Company
repurchased 4.5 million shares, or 4.6% of the outstanding common
stock, at an average price of $38.80
per share for a total of $175.6
million, excluding commissions. As of September 30, 2021, the Company had $206.8 million remaining under the 2021
authorization.
FISCAL YEAR 2022 GUIDANCE
For full fiscal year 2022, compared to fiscal year 2021, the
Company continues to expect:
- Low single digit adjusted net sales growth,
- Modest adjusted gross margin expansion, and
- Mid to high single digit adjusted EBITDA growth.
Given the elevated demand during the first half of fiscal year
2021 from the COVID-19 pandemic, a highly inflationary current
environment and the timing of the price increase, among other
factors, the Company expects:
- Net sales to be down low single digit on an adjusted basis in
the first half of fiscal year 2022 and up by mid to high single
digit in the second half, and
- Adjusted EBITDA to be down mid-single digit in the first half
of fiscal year 2022 and up low double digits in the second
half.
Notes: Adjusted net sales is defined as adjusted for the impact
of foreign currency changes, divestitures and discontinued
brands. All references in this "Fiscal Year 2022 Guidance"
section to growth or declines in adjusted net sales or adjusted
EBITDA compared to a prior period represent percentage growth or
percentage decline.
Conference Call and Webcast Information
Hain Celestial
will host a conference call and webcast today at 8:00 AM Eastern Time to discuss its results and
business outlook. Investors interested in participating in the live
call can dial 855-327-6837 from the U.S. and 631-891-4304
internationally. The call will be webcast and the accompanying
presentation will 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®, Clarks™, Cully &
Sully®, Earth's Best®, Ella's Kitchen®, Frank Cooper's®, Gale's®, Garden of Eatin'®,
Hain Pure Foods®, Hartley's®, Health Valley®, Imagine®, Joya®,
Lima®, Linda McCartney's® (under
license), MaraNatha®, Natumi®, New Covent Garden Soup Co.®,
Robertson's®, Rose's® (under license), Sensible Portions®,
Spectrum®, Sun-Pat®, Terra®, The Greek Gods®, Yorkshire Provender®
and Yves Veggie Cuisine®. The Company's personal care products are
marketed under the Alba Botanica®, Avalon Organics®, JASON®, Live
Clean® and Queen Helene® brands.
Forward-Looking Statements
This press release contains
forward-looking statements within the meaning of safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Such statements involve risks, uncertainties and assumptions. If
the risks or uncertainties ever materialize or the assumptions
prove incorrect, our results may differ materially from those
expressed or implied by such forward-looking statements. The words
"believe," "expect," "anticipate," "may," "should," "plan,"
"intend," "potential," "will" and similar expressions are intended
to identify such forward-looking statements. Forward-looking
statements include, among other things, our beliefs or expectations
relating to our future performance, results of operations and
financial condition; our strategic initiatives, business strategy,
supply chain, brand portfolio and product performance; the COVID-19
pandemic; current or future macroeconomic trends; and future
corporate acquisitions or dispositions.
Risks and uncertainties that may cause actual results to differ
materially from forward-looking statements include:
challenges and uncertainty resulting from the impact of
competition; challenges and uncertainty resulting from the COVID-19
pandemic; our ability to manage our supply chain effectively;
disruption of operations at our manufacturing facilities; reliance
on independent contract manufacturers; changes to consumer
preferences; customer concentration; reliance on independent
distributors; the availability of organic ingredients; risks
associated with our international sales and operations; risks
associated with outsourcing arrangements; our ability to execute
our cost reduction initiatives and related strategic initiatives;
our reliance on independent certification for a number of our
products; the reputation of our Company and our brands; our ability
to use and protect trademarks; general economic conditions; input
cost inflation; the United
Kingdom's exit from the European Union; cybersecurity
incidents; disruptions to information technology systems; the
impact of climate change; liabilities, claims or regulatory change
with respect to environmental matters; potential liability if our
products cause illness or physical harm; the highly regulated
environment in which we operate; pending and future litigation;
compliance with data privacy laws; compliance with our credit
agreement; the discontinuation of LIBOR; concentration in the
ownership of our common stock; our ability to issue preferred
stock; the adequacy of our insurance coverage; impairments in the
carrying value of goodwill or other intangible assets; and other
risks and matters described in our most recent Annual Report on
Form 10-K and our other filings from time to time with the U.S.
Securities and Exchange Commission.
We undertake no obligation to update forward-looking statements
to reflect actual results or changes in assumptions or
circumstances, except as required by applicable law.
Non-GAAP Financial Measures
This press release and the
accompanying tables include non-GAAP financial measures, including,
among others, adjusted operating income and its related margin,
adjusted gross profit and its related margin, adjusted net income,
adjusted earnings per diluted share, net sales adjusted for the
impact of foreign exchange, divestitures and discontinued
brands, adjusted EBITDA and its related margin and operating free
cash flow. The reconciliations of these non-GAAP financial measures
to the comparable GAAP financial measures are provided herein in
the tables. 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
Operations and Cash Flows presented in accordance with GAAP.
Certain forward-looking non-GAAP financial measures included in
this press release are not reconciled to the comparable
forward-looking GAAP financial measures. The Company is not able to
reconcile these forward-looking non-GAAP financial measures to
their most directly comparable forward-looking GAAP financial
measures without unreasonable efforts because the Company is unable
to predict with a reasonable degree of certainty the type and
extent of certain items that would be expected to impact GAAP
measures but would not impact the non-GAAP measures. Such items may
include litigation and related expenses, transaction costs
associated with acquisitions and divestitures, productivity and
transformation costs, impairments, gains or losses on sales of
assets and businesses, foreign exchange movements and other items.
The unavailable information could have a significant impact on the
Company's GAAP financial results.
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 period-to-period
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 provides net sales adjusted for the impact of
foreign currency, divestitures and discontinued brands to
understand the growth rate of net sales excluding the impact of
such items. The Company's management believes net sales adjusted
for such items is useful to investors because it enables them to
better understand the growth of our business from
period-to-period.
The Company defines adjusted EBITDA as net income (loss) before
income taxes, net interest expense, depreciation and amortization,
equity in net loss of equity-method investees, stock-based
compensation, unrealized currency gains and losses, transaction
costs associated with acquisitions and divestitures, productivity
and transformation costs, proceeds from an insurance claim,
impairment of long-lived assets, warehouse and manufacturing
consolidation and other costs, gains or losses on sales of assets
and businesses, litigation and related expenses, plant closure
related costs, inventory write-downs and other adjustments. 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.
The Company defines operating free cash flow as cash provided by
or used in operating activities from continuing operations (a GAAP
measure) less purchases of property, plant and equipment. 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.
_________________________
|
* Notes:
|
(1)
|
The results contained
in this press release are presented with the Tilda operating
segment being treated as discontinued operations. Unless otherwise
noted, all results included in this press release are from
continuing operations.
|
(2)
|
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 and other non-GAAP financial calculations are provided in
the tables included in this press release.
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Balance Sheets
|
(unaudited and
in thousands)
|
|
|
|
|
|
|
|
|
|
September 30,
2021
|
|
June 30,
2021
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
28,962
|
|
$
75,871
|
|
Accounts receivable,
net
|
181,048
|
|
174,066
|
|
Inventories
|
280,176
|
|
285,410
|
|
Prepaid expenses and
other current assets
|
38,496
|
|
39,834
|
|
Assets held for
sale
|
3,642
|
|
1,874
|
|
Total current
assets
|
532,324
|
|
577,055
|
Property, plant and
equipment, net
|
312,426
|
|
312,777
|
Goodwill
|
|
863,348
|
|
871,067
|
Trademarks and other
intangible assets, net
|
308,588
|
|
314,895
|
Investments and joint
ventures
|
16,718
|
|
16,917
|
Operating lease
right-of-use assets, net
|
88,387
|
|
92,010
|
Other
assets
|
20,474
|
|
21,187
|
|
Total
assets
|
$
2,142,265
|
|
$
2,205,908
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
172,733
|
|
$
171,947
|
|
Accrued expenses and
other current liabilities
|
123,296
|
|
117,957
|
|
Current portion of
long-term debt
|
335
|
|
530
|
|
Total current
liabilities
|
296,364
|
|
290,434
|
Long-term debt, less
current portion
|
345,414
|
|
230,492
|
Deferred income
taxes
|
40,345
|
|
42,639
|
Operating lease
liabilities, noncurrent portion
|
82,176
|
|
85,929
|
Other noncurrent
liabilities
|
29,210
|
|
33,531
|
|
Total
liabilities
|
793,509
|
|
683,025
|
|
Total stockholders'
equity
|
1,348,756
|
|
1,522,883
|
|
Total liabilities and
stockholders' equity
|
$
2,142,265
|
|
$
2,205,908
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Operations
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
First
Quarter
|
|
2022
|
|
2021
|
|
|
|
|
Net sales
|
$
454,903
|
|
$
498,627
|
Cost of
sales
|
349,485
|
|
379,463
|
Gross
profit
|
105,418
|
|
119,164
|
Selling, general and
administrative expenses
|
73,989
|
|
79,521
|
Amortization of
acquired intangible assets
|
2,095
|
|
2,433
|
Productivity and
transformation costs
|
3,983
|
|
1,433
|
Proceeds from
insurance claim
|
(196)
|
|
-
|
Long-lived asset
impairment
|
-
|
|
32,497
|
Operating
income
|
25,547
|
|
3,280
|
Interest and other
financing expense, net
|
1,856
|
|
2,453
|
Other income,
net
|
(788)
|
|
(1,373)
|
Income from
continuing operations before income taxes and equity in net loss of
equity-method investees
|
24,479
|
|
2,200
|
Provision for income
taxes
|
4,542
|
|
12,962
|
Equity in net loss of
equity-method investees
|
526
|
|
19
|
Net
income (loss) from continuing operations
|
$
19,411
|
|
$
(10,781)
|
Net
income from discontinued operations, net of tax
|
-
|
|
11,266
|
Net income
|
$
19,411
|
|
$
485
|
|
|
|
|
Net income (loss) per
common share:
|
|
|
|
Basic net income
(loss) per common share from continuing operations
|
$
0.20
|
|
$
(0.11)
|
Basic net income per
common share from discontinued operations
|
-
|
|
0.11
|
Basic net income per
common share
|
$
0.20
|
|
$
-
|
|
|
|
|
Diluted net income
(loss) per common share from continuing operations
|
$
0.20
|
|
$
(0.11)
|
Diluted net income
per common share from discontinued operations
|
-
|
|
0.11
|
Diluted net income
per common share
|
$
0.20
|
|
$
-
|
|
|
|
|
Shares used in the
calculation of net income (loss) per common share:
|
|
|
|
Basic
|
97,121
|
|
101,558
|
Diluted
|
97,438
|
|
101,558
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Cash Flows
|
(unaudited and in
thousands)
|
|
|
|
|
|
First
Quarter
|
|
2022
|
|
2021
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
Net income
|
$
19,411
|
|
$
485
|
Net income from
discontinued operations, net of tax
|
-
|
|
11,266
|
Net income (loss)
from continuing operations
|
19,411
|
|
(10,781)
|
Adjustments to
reconcile net income (loss) from continuing operations to net cash
provided by operating activities from continuing
operations:
|
|
|
|
Depreciation and
amortization
|
10,855
|
|
13,761
|
Deferred income
taxes
|
(2,105)
|
|
(930)
|
Equity in net loss of
equity-method investees
|
526
|
|
19
|
Stock-based
compensation
|
4,287
|
|
4,367
|
Long-lived asset
impairment
|
-
|
|
32,497
|
Gain on sale of
assets
|
(276)
|
|
-
|
Gain on sale of
businesses
|
-
|
|
(620)
|
Other non-cash items,
net
|
(1,093)
|
|
(1,047)
|
(Decrease) increase
in cash attributable to changes in operating assets and
liabilities:
|
|
|
|
Accounts
receivable
|
(9,443)
|
|
(3,575)
|
Inventories
|
2,277
|
|
(44,962)
|
Other current
assets
|
900
|
|
37,869
|
Other assets and
liabilities
|
(1,566)
|
|
(1,541)
|
Accounts payable and
accrued expenses
|
13,813
|
|
15,612
|
Net cash provided by
operating activities from continuing operations
|
37,586
|
|
40,669
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
Purchases of
property, plant and equipment
|
(17,810)
|
|
(12,155)
|
Investment in joint
venture
|
(408)
|
|
-
|
Proceeds from sale of
assets
|
164
|
|
-
|
Proceeds from sale of
businesses, net and other
|
-
|
|
4,427
|
Net cash used in
investing activities from continuing operations
|
(18,054)
|
|
(7,728)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
Borrowings under bank
revolving credit facility
|
120,000
|
|
55,000
|
Repayments under bank
revolving credit facility
|
(5,000)
|
|
(47,000)
|
Repayments of other
debt, net
|
(237)
|
|
(1,439)
|
Share
repurchases
|
(177,103)
|
|
(42,052)
|
Shares withheld for
payment of employee payroll taxes
|
(1,175)
|
|
(468)
|
Net cash used in
financing activities from continuing operations
|
(63,515)
|
|
(35,959)
|
Effect of exchange
rate changes on cash from continuing operations
|
(2,926)
|
|
2,500
|
Net decrease in cash
and cash equivalents
|
(46,909)
|
|
(518)
|
Cash and cash
equivalents at beginning of period
|
75,871
|
|
37,771
|
Cash and cash
equivalents at end of period
|
$
28,962
|
|
$
37,253
|
THE HAIN CELESTIAL
GROUP, INC.
|
Net Sales, Gross
Profit and Operating Income (Loss) by Segment
|
(unaudited and
in thousands)
|
|
|
|
|
|
|
|
|
|
North
America
|
|
International
|
|
Corporate/Other
|
|
Hain
Consolidated
|
Net
Sales
|
|
|
|
|
|
|
|
Net sales - Q1
FY22
|
$
265,525
|
|
$
189,378
|
|
$
-
|
|
$
454,903
|
Net sales - Q1
FY21
|
$
280,668
|
|
$
217,959
|
|
$
-
|
|
$
498,627
|
% change - FY22 net
sales vs. FY21 net sales
|
(5.4)%
|
|
(13.1)%
|
|
|
|
(8.8)%
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
|
|
|
|
|
Q1 FY22
|
|
|
|
|
|
|
|
Gross
profit
|
$
56,809
|
|
$
48,609
|
|
$
-
|
|
$
105,418
|
Non-GAAP
adjustments(1)
|
2,410
|
|
875
|
|
-
|
|
3,285
|
Adjusted gross
profit
|
$
59,219
|
|
$
49,484
|
|
$
-
|
|
$
108,703
|
Gross
margin
|
21.4%
|
|
25.7%
|
|
|
|
23.2%
|
Adjusted gross
margin
|
22.3%
|
|
26.1%
|
|
|
|
23.9%
|
|
|
|
|
|
|
|
|
Q1 FY21
|
|
|
|
|
|
|
|
Gross
profit
|
$
75,015
|
|
$
44,149
|
|
$
-
|
|
$
119,164
|
Non-GAAP
adjustments(1)
|
933
|
|
240
|
|
-
|
|
1,173
|
Adjusted gross
profit
|
$
75,948
|
|
$
44,389
|
|
$
-
|
|
$
120,337
|
Gross
margin
|
26.7%
|
|
20.3%
|
|
|
|
23.9%
|
Adjusted gross
margin
|
27.1%
|
|
20.4%
|
|
|
|
24.1%
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
|
|
Q1 FY22
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
16,842
|
|
$
24,069
|
|
$
(15,364)
|
|
$
25,547
|
Non-GAAP
adjustments(1)
|
3,695
|
|
1,176
|
|
3,926
|
|
8,797
|
Adjusted operating
income (loss)
|
$
20,537
|
|
$
25,245
|
|
$
(11,438)
|
|
$
34,344
|
Operating income
margin
|
6.3%
|
|
12.7%
|
|
|
|
5.6%
|
Adjusted operating
income margin
|
7.7%
|
|
13.3%
|
|
|
|
7.5%
|
|
|
|
|
|
|
|
|
Q1 FY21
|
|
|
|
|
|
|
|
Operating income
(loss)
|
$
33,256
|
|
$
(15,889)
|
|
$
(14,087)
|
|
$
3,280
|
Non-GAAP
adjustments(1)
|
1,488
|
|
33,194
|
|
805
|
|
35,487
|
Adjusted operating
income (loss)
|
$
34,744
|
|
$
17,305
|
|
$
(13,282)
|
|
$
38,767
|
Operating income
(loss) margin
|
11.8%
|
|
(7.3)%
|
|
|
|
0.7%
|
Adjusted operating
income margin
|
12.4%
|
|
7.9%
|
|
|
|
7.8%
|
|
|
|
|
|
|
|
|
(1)See
accompanying table "Adjusted Gross Profit, Adjusted Operating
Income, Adjusted Net Income and Adjusted EPS"
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Adjusted
Gross Profit, Adjusted Operating Income, Adjusted Net Income and
Adjusted EPS
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
First
Quarter
|
|
2022
GAAP
|
Adjustments
|
2022
Adjusted
|
|
2021
GAAP
|
Adjustments
|
2021
Adjusted
|
|
|
|
|
|
|
|
|
Net sales
|
$
454,903
|
$
-
|
$
454,903
|
|
$
498,627
|
$
-
|
$
498,627
|
Cost of
sales
|
349,485
|
(3,285)
|
346,200
|
|
379,463
|
(1,173)
|
378,290
|
Gross
profit
|
105,418
|
3,285
|
108,703
|
|
119,164
|
1,173
|
120,337
|
Operating
expenses(a)
|
76,084
|
(1,725)
|
74,359
|
|
114,451
|
(32,881)
|
81,570
|
Productivity and
transformation costs
|
3,983
|
(3,983)
|
-
|
|
1,433
|
(1,433)
|
-
|
Proceeds from
insurance claim
|
(196)
|
196
|
-
|
|
-
|
-
|
-
|
Operating
income
|
25,547
|
8,797
|
34,344
|
|
3,280
|
35,487
|
38,767
|
Interest and other
expense (income), net(b)
|
1,068
|
1,469
|
2,537
|
|
1,080
|
1,822
|
2,902
|
Provision (benefit)
for income taxes
|
4,542
|
2,910
|
7,452
|
|
12,962
|
(4,562)
|
8,400
|
Net
income (loss) from continuing operations
|
19,411
|
4,418
|
23,829
|
|
(10,781)
|
38,227
|
27,446
|
Net
income (loss) from discontinued operations, net of tax
|
-
|
-
|
-
|
|
11,266
|
(11,266)
|
-
|
Net income
|
19,411
|
4,418
|
23,829
|
|
485
|
26,961
|
27,446
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per common share from continuing operations
|
0.20
|
0.05
|
0.25
|
|
(0.11)
|
0.38
|
0.27
|
Diluted net income
(loss) per common share from discontinued operations
|
-
|
-
|
-
|
|
0.11
|
(0.11)
|
-
|
Diluted net income
per common share
|
0.20
|
0.05
|
0.25
|
|
-
|
0.27
|
0.27
|
|
|
|
|
|
|
|
|
Detail of
Adjustments:
|
|
|
|
|
|
|
|
|
|
Q1
FY22
|
|
|
|
Q1
FY21
|
|
Inventory
write-down
|
|
$
-
|
|
|
|
$
204
|
|
Plant closure related
costs
|
|
996
|
|
|
|
579
|
|
Warehouse/manufacturing consolidation and other
costs
|
|
2,289
|
|
|
|
390
|
|
Cost of
sales
|
|
3,285
|
|
|
|
1,173
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
3,285
|
|
|
|
1,173
|
|
|
|
|
|
|
|
|
|
Acquisitions &
divestitures transaction costs, net
|
|
(231)
|
|
|
|
369
|
|
Litigation
expenses
|
|
1,956
|
|
|
|
-
|
|
Long-lived asset
impairment
|
|
-
|
|
|
|
32,497
|
|
Plant closure related
costs
|
|
-
|
|
|
|
15
|
|
Operating
expenses(a)
|
|
1,725
|
|
|
|
32,881
|
|
|
|
|
|
|
|
|
|
Productivity and
transformation costs
|
|
3,983
|
|
|
|
1,433
|
|
Productivity and
transformation costs
|
|
3,983
|
|
|
|
1,433
|
|
|
|
|
|
|
|
|
|
Proceeds from
insurance claim
|
|
(196)
|
|
|
|
-
|
|
Proceeds from
insurance claim
|
|
(196)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
8,797
|
|
|
|
35,487
|
|
|
|
|
|
|
|
|
|
Gain on sale of
assets
|
|
(446)
|
|
|
|
-
|
|
Gain on sale of
businesses
|
|
-
|
|
|
|
(620)
|
|
Unrealized currency
gains
|
|
(1,023)
|
|
|
|
(1,202)
|
|
Interest and other
expense (income), net(b)
|
|
(1,469)
|
|
|
|
(1,822)
|
|
|
|
|
|
|
|
|
|
Income tax related
adjustments
|
|
(2,910)
|
|
|
|
4,562
|
|
(Benefit) provision
for income taxes
|
|
(2,910)
|
|
|
|
4,562
|
|
|
|
|
|
|
|
|
|
Net
income from continuing operations
|
|
$
4,418
|
|
|
|
$
38,227
|
|
|
|
|
|
|
|
|
|
(a)Operating expenses include amortization
of acquired intangibles, selling, general and administrative
expenses and long-lived asset impairment.
|
|
|
(b)Interest and other expense (income),
net includes interest and other financing expenses, net, unrealized
currency gains, gain on sale of assets and businesses and other
expense, net.
|
THE HAIN CELESTIAL
GROUP, INC.
|
Adjusted Net Sales
Growth
|
(unaudited and in
thousands)
|
|
|
|
|
|
|
Q1
FY22
|
North
America
|
|
International
|
|
Hain
Consolidated
|
Net sales
|
$
265,525
|
|
$
189,378
|
|
$
454,903
|
Divestitures and
discontinued brands
|
(178)
|
|
-
|
|
(178)
|
Impact of foreign
currency exchange
|
(1,719)
|
|
(8,269)
|
|
(9,988)
|
Net sales on a
constant currency basis adjusted for divestitures and discontinued
brands
|
$
263,628
|
|
$
181,109
|
|
$
444,737
|
|
|
|
|
|
|
Q1
FY21
|
|
|
|
|
|
Net
sales
|
$
280,668
|
|
$
217,959
|
|
$
498,627
|
Divestitures and
discontinued brands
|
(13,621)
|
|
(39,630)
|
|
(53,251)
|
Net sales adjusted
for divestitures and discontinued brands
|
$
267,047
|
|
$
178,329
|
|
$
445,376
|
|
|
|
|
|
|
Net sales
decline
|
(5.4)%
|
|
(13.1)%
|
|
(8.8)%
|
Impact of
divestitures and discontinued brands
|
4.7%
|
|
18.5%
|
|
10.7%
|
Impact of foreign
currency exchange
|
(0.6)%
|
|
(3.8)%
|
|
(2.0)%
|
Net sales (decline)
growth on a constant currency basis adjusted for divestitures and
discontinued brands
|
(1.3)%
|
|
1.6%
|
|
(0.1)%
|
THE HAIN CELESTIAL
GROUP, INC.
|
Adjusted
EBITDA
|
(unaudited and
in thousands)
|
|
|
|
|
|
First
Quarter
|
|
2022
|
|
2021
|
|
|
|
|
Net income
|
$
19,411
|
|
$
485
|
Net income from
discontinued operations, net of tax
|
-
|
|
11,266
|
Net income (loss)
from continuing operations
|
$
19,411
|
|
$
(10,781)
|
|
|
|
|
Depreciation and
amortization
|
10,855
|
|
13,761
|
Equity in net loss of
equity-method investees
|
526
|
|
19
|
Interest expense,
net
|
1,146
|
|
2,154
|
Provision for income
taxes
|
4,542
|
|
12,962
|
Stock-based
compensation
|
4,287
|
|
4,367
|
Unrealized currency
gains
|
(1,023)
|
|
(1,202)
|
Litigation &
related costs
|
|
|
|
Litigation
expenses
|
1,956
|
|
-
|
Proceeds from
insurance claim
|
(196)
|
|
-
|
Restructuring
activities
|
|
|
|
Plant closure related
costs
|
996
|
|
(6)
|
Productivity and
transformation costs
|
3,204
|
|
781
|
Warehouse/manufacturing consolidation and other
costs
|
2,289
|
|
390
|
Acquisitions &
divestitures
|
|
|
|
Acquisitions &
divestitures transaction costs, net
|
(231)
|
|
369
|
Gain on sale of
assets
|
(446)
|
|
-
|
Gain on sale of
businesses
|
-
|
|
(620)
|
Impairment
charges
|
|
|
|
Inventory
write-down
|
-
|
|
204
|
Long-lived asset
impairment
|
-
|
|
32,497
|
Adjusted
EBITDA
|
$
47,316
|
|
$
54,895
|
THE HAIN CELESTIAL
GROUP, INC.
|
Adjusted EBITDA
and Adjusted EBITDA Margin by Segment
|
(unaudited and in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
FY22
|
North
America
|
|
International
|
|
Corporate/Other
|
|
Hain
Consolidated
|
Operating income
(loss)
|
$
16,842
|
|
$
24,069
|
|
$
(15,364)
|
|
$
25,547
|
Depreciation and
amortization
|
3,742
|
|
6,410
|
|
703
|
|
10,855
|
Stock-based
compensation
|
636
|
|
721
|
|
2,930
|
|
4,287
|
Acquisitions &
divestitures transaction costs, net
|
(341)
|
|
-
|
|
110
|
|
(231)
|
Litigation
expenses
|
-
|
|
-
|
|
1,956
|
|
1,956
|
Proceeds from
insurance claim
|
-
|
|
-
|
|
(196)
|
|
(196)
|
Plant closure related
costs
|
996
|
|
-
|
|
-
|
|
996
|
Productivity and
transformation costs
|
1,625
|
|
299
|
|
1,280
|
|
3,204
|
Warehouse/manufacturing consolidation and other
costs
|
1,413
|
|
876
|
|
-
|
|
2,289
|
Other
|
(811)
|
|
59
|
|
(639)
|
|
(1,391)
|
Adjusted
EBITDA
|
$
24,102
|
|
$
32,434
|
|
$
(9,220)
|
|
$
47,316
|
|
|
|
|
|
|
|
|
Net
sales
|
$
265,525
|
|
$
189,378
|
|
|
|
$
454,903
|
Adjusted EBITDA
margin
|
9.1%
|
|
17.1%
|
|
|
|
10.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1
FY21
|
North
America
|
|
International
|
|
Corporate/Other
|
|
Hain
Consolidated
|
Operating income
(loss)
|
$
33,256
|
|
$
(15,889)
|
|
$
(14,087)
|
|
$
3,280
|
Depreciation and
amortization
|
4,145
|
|
8,862
|
|
754
|
|
13,761
|
Stock-based
compensation
|
864
|
|
675
|
|
2,828
|
|
4,367
|
Acquisitions &
divestitures transaction costs, net
|
(51)
|
|
68
|
|
352
|
|
369
|
Plant closure related
costs
|
(57)
|
|
51
|
|
-
|
|
(6)
|
Productivity and
transformation costs
|
605
|
|
377
|
|
(201)
|
|
781
|
Warehouse/manufacturing consolidation and other
costs
|
200
|
|
190
|
|
-
|
|
390
|
Inventory
write-down
|
204
|
|
-
|
|
-
|
|
204
|
Long-lived asset
impairment
|
(11)
|
|
32,508
|
|
-
|
|
32,497
|
Other
|
(33)
|
|
(138)
|
|
(577)
|
|
(748)
|
Adjusted
EBITDA
|
$
39,122
|
|
$
26,704
|
|
$
(10,931)
|
|
$
54,895
|
|
|
|
|
|
|
|
|
Net
sales
|
$
280,668
|
|
$
217,959
|
|
|
|
$
498,627
|
Adjusted EBITDA
margin
|
13.9%
|
|
12.3%
|
|
|
|
11.0%
|
THE HAIN CELESTIAL
GROUP, INC.
|
Operating
Free Cash Flow
|
(unaudited and in
thousands)
|
|
|
|
|
|
First
Quarter
|
|
2022
|
|
2021
|
|
|
|
|
Net cash provided by
operating activities from continuing operations
|
$
37,586
|
|
$
40,669
|
Purchases of
property, plant and equipment
|
(17,810)
|
|
(12,155)
|
Operating free cash
flow from continuing operations
|
$
19,776
|
|
$
28,514
|
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SOURCE The Hain Celestial Group, Inc.