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 second quarter ended
December 31, 2021.
Mark L. Schiller, Hain Celestial’s President and
Chief Executive Officer, commented, “Our second quarter results
delivered adjusted net sales growth consistent with initial
guidance, behind strong U.S. consumption growth, despite
industry-wide labor and supply chain challenges. We have utilized
aggressive pricing and productivity to offset most of the cost
headwinds and have revised guidance to reflect the expectation of
accelerating topline growth in the second half of the year and
continued elevated supply chain costs and disruptions. We believe
that many of these costs will abate over time and remain very
focused on our Hain 3.0 strategy as we pivot toward becoming a high
growth and highly profitable global health and wellness
company.”
FINANCIAL
HIGHLIGHTS1
Summary of Second Quarter Results from Continuing
Operations
- Net sales decreased 10% to $476.9 million compared to the prior
year period.
- When adjusted for foreign exchange, acquisitions, divestitures
and discontinued brands, net sales decreased 2% compared to the
prior year period.
- Gross margin of 24.6% was flat compared to the prior year
period.
- Adjusted gross margin of 24.6%, a 74 basis point decrease from
the prior year period.
- Operating income of $32.0 million compared to $13.0 million in
the prior year period.
- Adjusted operating income of $45.7 million compared to $48.1
million in the prior year period.
- Net income of $30.9 million compared to $2.2 million in the
prior year period.
- Adjusted net income of $34.3 million compared to $34.7 million
in prior year period.
- Adjusted EBITDA of $59.3 million compared to $62.2 million in
the prior year period.
- Adjusted EBITDA margin of 12.4%, a 66 basis point increase
compared to the prior year period.
- Earnings per diluted share (“EPS”) of $0.33 compared to $0.02
in the prior year period.
- Adjusted EPS of $0.36 compared to $0.34 in the prior year
period.
- Repurchased 2.0 million shares, or 2.1% of the outstanding
common stock, at an average price of $44.31 per share.
SEGMENT HIGHLIGHTS FROM CONTINUING
OPERATIONS
The Company operates under two reportable
segments: North America and International.
North AmericaNorth America net
sales in the second quarter were $275.0 million, a decrease of 3%
compared to the prior year period. When adjusted for foreign
exchange, acquisitions, divestitures and discontinued brands, net
sales increased 1% from the prior year period mainly due to
stronger sales in the snacks category.
Segment gross profit in the second quarter was
$67.7 million, a 13% decrease from the prior year period. Adjusted
gross profit was $67.9 million, a decrease of 16% from the prior
year period. Gross margin was 24.6%, a 310 basis point decrease
from the prior year period, and adjusted gross margin was 24.7%, a
380 basis point decrease from the prior year period. The decrease
was mainly driven by higher cost of sales, including delivery and
warehouse expenses in the United States operating segment.
Segment operating income in the second quarter
was $27.2 million, a 16% decrease from the prior year period.
Adjusted operating income was $29.0 million, an 18% decrease from
the prior year period.
Adjusted EBITDA in the second quarter was $33.3
million, a 16% decrease from the prior year period. As a percentage
of sales, North America adjusted EBITDA margin was 12.1%, a 190
basis point decrease from the prior year period.
InternationalInternational net
sales in the second quarter were $201.9 million, a decrease of 18%
compared to the prior year period. When adjusted for foreign
exchange, divestitures and discontinued brands, net sales decreased
6% compared to the prior year period mainly due to a decline in the
Europe operating segment, partially offset by an increase in sales
in the Ella's Kitchen UK operating segment.
Segment gross profit in the second quarter was
$49.6 million, a 4% decrease from the prior year period. Adjusted
gross profit was $49.4 million, a decrease of 7% from the prior
year period. Gross margin was 24.6%, a 350 basis point increase
from the prior year period, and adjusted gross margin was 24.5%, a
280 basis point increase from the prior year period. The decrease
in gross profit was mainly due to the aforementioned decrease in
sales compared to the prior year period. The improvement in gross
margin was driven by the divestiture of the fruit business in the
third quarter of fiscal year 2021 and the implementation of
productivity initiatives, partially offset by inflationary
pressures.
Segment operating income in the second quarter
was $27.4 million, compared to a loss of $2.7 million in the prior
year period. Adjusted operating income was $27.8 million, an
increase of 11% from the prior year period. The increase in
operating income reflects non-recurring impairment charges
associated with the fruit business that were recognized in the
prior year period. Additionally, there were lower selling, general
and administrative expenses mainly driven by lower labor-related
expenses compared to the prior year period.
Adjusted EBITDA in the second quarter was $34.3
million, a 7% increase from the prior year period. As a percentage
of sales, International adjusted EBITDA margin was 17.0%, a 390
basis point increase from the prior year period.
CAPITAL MANAGEMENT
The Company is announcing today that its Board
of Directors has approved an additional $200 million share
repurchase authorization. Share repurchases under this
authorization will commence after the Company’s existing $300
million authorization is 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 second quarter of fiscal year 2022,
the Company repurchased 2.0 million shares, or 2.1% of the
outstanding common stock, at an average price of $44.31 per share
for a total of $89.8 million, excluding commissions. As of December
31, 2021, the Company had $117.0 million remaining under its $300
million authorization, prior to the approval of the additional $200
million authorization.
AMENDED AND RESTATED CREDIT AGREEMENT
In the second quarter, the Company refinanced
its revolving credit facility by entering into a Fourth Amended and
Restated Credit Agreement, which provides for senior secured
financing of $1.1 billion in the aggregate, consisting of (1) $300
million in aggregate principal amount of term loans maturing in
five years and (2) an $800 million senior secured revolving credit
facility which is comprised of a $440 million U.S. revolving credit
facility and $360 million global revolving credit facility. Both
the term loans and revolving credit facility mature on December 22,
2026.
ACQUISITION OF
PARMCRISPS® AND
THINSTERS®
On December 28, 2021, the Company completed its
acquisition of That’s How We Roll from Clearlake Capital Group.
That’s How We Roll is the producer and marketer of ParmCrisps® and
Thinsters®, two fast-growing brands offering simple and delicious,
better-for-you snacks. Consideration for the transaction consisted
of cash, net of cash acquired, totaling $261 million, subject to an
adjustment for working capital. Of the total consideration, $255
million was paid at closing, with the remaining $6 million payable
during the third quarter of fiscal year 2022.
FISCAL YEAR 2022 GUIDANCE
The Company updates its guidance for full fiscal
year 2022 compared to fiscal year 2021 and now expects:
- Low single digit adjusted net sales
growth consistent with prior guidance,
- Modest adjusted gross margin
reduction, and
- Adjusted EBITDA approximately flat
versus prior year.
Notes: Adjusted net sales is defined as adjusted
for the impact of foreign currency changes, acquisitions,
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.
Contacts:Investor Relations:Chris Mandeville
and Anna Kate HellerICR hain@icrinc.com
Media:Robin Shallowrobin@robincomm.com
Conference Call and Webcast
InformationHain Celestial will host a conference call and
webcast today at 8:30 AM Eastern Time to discuss its results and
business outlook. Investors interested in participating in the live
call can dial 877-407-9716 from the U.S. and 201-493-6779
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.®, ParmCrisps®, Robertson’s®, Rose’s® (under
license), Sensible Portions®, Spectrum®, Sun-Pat®, Terra®, The
Greek Gods®, Thinsters®, 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 StatementsThis
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; the
success of our pricing negotiations; 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 ability to identify and complete acquisitions or divestitures
and our level of success in integrating acquisitions; 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 MeasuresThis
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,
acquisitions, 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, acquisitions, 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 net interest expense, income taxes,
depreciation and amortization, equity in net loss of equity-method
investees, stock-based compensation, unrealized currency gains and
losses, litigation and related costs, plant closure related costs,
net, productivity and transformation costs, warehouse and
manufacturing consolidation and other costs, costs associated with
acquisitions, divestitures and other transactions, gains or losses
on sales of assets and businesses, inventory write-downs,
impairment of long-lived assets 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) |
|
|
|
|
|
|
|
December 31, 2021 |
|
June 30, 2021 |
ASSETS |
|
|
|
Current assets: |
|
|
|
|
Cash and cash equivalents |
$ |
77,202 |
|
$ |
75,871 |
|
Accounts
receivable, net |
|
163,672 |
|
|
174,066 |
|
Inventories |
|
289,239 |
|
|
285,410 |
|
Prepaid
expenses and other current assets |
|
45,505 |
|
|
39,834 |
|
Assets held
for sale |
|
3,354 |
|
|
1,874 |
|
Total
current assets |
|
578,972 |
|
|
577,055 |
Property, plant and equipment, net |
|
320,047 |
|
|
312,777 |
Goodwill |
|
956,283 |
|
|
871,067 |
Trademarks and other intangible assets, net |
|
500,093 |
|
|
314,895 |
Investments and joint ventures |
|
16,409 |
|
|
16,917 |
Operating lease right-of-use assets, net |
|
91,739 |
|
|
92,010 |
Other assets |
|
21,826 |
|
|
21,187 |
|
Total
assets |
$ |
2,485,369 |
|
$ |
2,205,908 |
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
Current liabilities: |
|
|
|
|
Accounts
payable |
$ |
179,808 |
|
$ |
171,947 |
|
Accrued
expenses and other current liabilities |
|
110,030 |
|
|
117,957 |
|
Current
portion of long-term debt |
|
7,834 |
|
|
530 |
|
Total
current liabilities |
|
297,672 |
|
|
290,434 |
Long-term debt, less current portion |
|
731,613 |
|
|
230,492 |
Deferred income taxes |
|
82,020 |
|
|
42,639 |
Operating lease liabilities, noncurrent portion |
|
84,219 |
|
|
85,929 |
Other noncurrent liabilities |
|
25,989 |
|
|
33,531 |
|
Total
liabilities |
|
1,221,513 |
|
|
683,025 |
|
Total
stockholders' equity |
|
1,263,856 |
|
|
1,522,883 |
|
Total
liabilities and stockholders' equity |
$ |
2,485,369 |
|
$ |
2,205,908 |
|
|
|
|
|
|
|
|
|
|
THE HAIN
CELESTIAL GROUP, INC. |
Consolidated
Statements of Operations |
(unaudited and in
thousands, except per share amounts) |
|
|
|
|
|
|
|
|
|
Second Quarter |
|
Second Quarter Year to Date |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
476,941 |
|
|
$ |
528,418 |
|
|
$ |
931,844 |
|
|
$ |
1,027,045 |
|
Cost of
sales |
|
359,646 |
|
|
|
398,453 |
|
|
|
709,131 |
|
|
|
777,916 |
|
Gross profit |
|
117,295 |
|
|
|
129,965 |
|
|
|
222,713 |
|
|
|
249,129 |
|
Selling,
general and administrative expenses |
|
80,136 |
|
|
|
84,625 |
|
|
|
154,125 |
|
|
|
164,146 |
|
Amortization
of acquired intangible assets |
|
2,049 |
|
|
|
2,193 |
|
|
|
4,144 |
|
|
|
4,626 |
|
Productivity
and transformation costs |
|
2,786 |
|
|
|
5,011 |
|
|
|
6,769 |
|
|
|
6,444 |
|
Proceeds
from insurance claim |
|
- |
|
|
|
- |
|
|
|
(196 |
) |
|
|
- |
|
Long-lived
asset impairment |
|
303 |
|
|
|
25,179 |
|
|
|
303 |
|
|
|
57,676 |
|
Operating income |
|
32,021 |
|
|
|
12,957 |
|
|
|
57,568 |
|
|
|
16,237 |
|
Interest and
other financing expense, net |
|
2,592 |
|
|
|
2,337 |
|
|
|
4,448 |
|
|
|
4,790 |
|
Other
income, net |
|
(9,070 |
) |
|
|
(1,045 |
) |
|
|
(9,858 |
) |
|
|
(2,418 |
) |
Income from continuing operations before income taxes and equity in
net loss of equity-method investees |
|
38,499 |
|
|
|
11,665 |
|
|
|
62,978 |
|
|
|
13,865 |
|
Provision
for income taxes |
|
7,145 |
|
|
|
8,438 |
|
|
|
11,687 |
|
|
|
21,400 |
|
Equity in
net loss of equity-method investees |
|
465 |
|
|
|
1,076 |
|
|
|
991 |
|
|
|
1,095 |
|
Net income (loss) from continuing operations |
$ |
30,889 |
|
|
$ |
2,151 |
|
|
$ |
50,300 |
|
|
$ |
(8,630 |
) |
Net (loss) income from discontinued operations,
net of tax |
|
- |
|
|
|
(11 |
) |
|
|
- |
|
|
|
11,255 |
|
Net
income |
$ |
30,889 |
|
|
$ |
2,140 |
|
|
$ |
50,300 |
|
|
$ |
2,625 |
|
|
|
|
|
|
|
|
|
Net income
(loss) per common share: |
|
|
|
|
|
|
|
Basic net
income (loss) per common share from continuing operations |
$ |
0.33 |
|
|
$ |
0.02 |
|
|
$ |
0.53 |
|
|
$ |
(0.09 |
) |
Basic net
income per common share from discontinued operations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.11 |
|
Basic net
income per common share |
$ |
0.33 |
|
|
$ |
0.02 |
|
|
$ |
0.53 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
Diluted net
income (loss) per common share from continuing operations |
$ |
0.33 |
|
|
$ |
0.02 |
|
|
$ |
0.52 |
|
|
$ |
(0.09 |
) |
Diluted net
income per common share from discontinued operations |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.11 |
|
Diluted net
income per common share |
$ |
0.33 |
|
|
$ |
0.02 |
|
|
$ |
0.52 |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
Shares used
in the calculation of net income (loss) per common share: |
|
|
|
|
|
|
|
Basic |
|
94,036 |
|
|
|
100,117 |
|
|
|
95,579 |
|
|
|
100,837 |
|
Diluted |
|
94,808 |
|
|
|
100,562 |
|
|
|
96,123 |
|
|
|
100,837 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE HAIN
CELESTIAL GROUP, INC. |
Consolidated
Statements of Cash Flows |
(unaudited and in
thousands) |
|
|
|
|
|
|
|
|
|
Second Quarter |
|
Second Quarter Year to Date |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
CASH FLOWS
FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
Net
income |
$ |
30,889 |
|
|
$ |
2,140 |
|
|
$ |
50,300 |
|
|
$ |
2,625 |
|
Net (loss)
income from discontinued operations, net of tax |
|
- |
|
|
|
(11 |
) |
|
|
- |
|
|
|
11,255 |
|
Net income
(loss) from continuing operations |
|
30,889 |
|
|
|
2,151 |
|
|
|
50,300 |
|
|
|
(8,630 |
) |
Adjustments
to reconcile net income (loss) from continuing operations to net
cash provided by operating activities from continuing
operations: |
|
|
|
|
|
|
|
Depreciation and amortization |
|
10,903 |
|
|
|
11,193 |
|
|
|
21,758 |
|
|
|
24,954 |
|
Deferred income taxes |
|
(1,166 |
) |
|
|
1,022 |
|
|
|
(3,271 |
) |
|
|
92 |
|
Equity in net loss of equity-method investees |
|
465 |
|
|
|
1,076 |
|
|
|
991 |
|
|
|
1,095 |
|
Stock-based compensation |
|
4,156 |
|
|
|
3,823 |
|
|
|
8,443 |
|
|
|
8,190 |
|
Long-lived asset impairment |
|
303 |
|
|
|
25,179 |
|
|
|
303 |
|
|
|
57,676 |
|
Gain on sale of assets |
|
(8,645 |
) |
|
|
- |
|
|
|
(8,921 |
) |
|
|
- |
|
Loss (gain) on sale of businesses |
|
- |
|
|
|
9 |
|
|
|
- |
|
|
|
(611 |
) |
Other non-cash items, net |
|
(393 |
) |
|
|
(107 |
) |
|
|
(1,486 |
) |
|
|
(1,154 |
) |
Increase (decrease) in cash attributable to changes in operating
assets and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
21,813 |
|
|
|
(5,948 |
) |
|
|
12,370 |
|
|
|
(9,523 |
) |
Inventories |
|
196 |
|
|
|
(13,550 |
) |
|
|
2,473 |
|
|
|
(58,512 |
) |
Other current assets |
|
(6,026 |
) |
|
|
17,849 |
|
|
|
(5,126 |
) |
|
|
55,718 |
|
Other assets and liabilities |
|
3,342 |
|
|
|
504 |
|
|
|
1,776 |
|
|
|
(1,037 |
) |
Accounts payable and accrued expenses |
|
(25,392 |
) |
|
|
20,660 |
|
|
|
(11,579 |
) |
|
|
36,272 |
|
Net cash provided by operating activities from continuing
operations |
|
30,445 |
|
|
|
63,861 |
|
|
|
68,031 |
|
|
|
104,530 |
|
CASH FLOWS
FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
Purchases of
property, plant and equipment |
|
(10,186 |
) |
|
|
(17,516 |
) |
|
|
(27,996 |
) |
|
|
(29,671 |
) |
Acquisitions
of businesses, net of cash acquired |
|
(254,569 |
) |
|
|
- |
|
|
|
(254,569 |
) |
|
|
- |
|
Investment
in joint venture |
|
(106 |
) |
|
|
- |
|
|
|
(514 |
) |
|
|
(431 |
) |
Proceeds
from sale of assets |
|
10,570 |
|
|
|
- |
|
|
|
10,734 |
|
|
|
- |
|
Proceeds
from sale of businesses, net and other |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,858 |
|
Net cash used in investing activities from continuing
operations |
|
(254,291 |
) |
|
|
(17,516 |
) |
|
|
(272,345 |
) |
|
|
(25,244 |
) |
CASH FLOWS
FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
Borrowings
under bank revolving credit facility |
|
420,000 |
|
|
|
95,000 |
|
|
|
540,000 |
|
|
|
150,000 |
|
Repayments
under bank revolving credit facility |
|
(325,000 |
) |
|
|
(90,000 |
) |
|
|
(330,000 |
) |
|
|
(137,000 |
) |
Borrowings
under term loan |
|
300,000 |
|
|
|
- |
|
|
|
300,000 |
|
|
|
- |
|
Payments of
other debt, net |
|
(2,948 |
) |
|
|
(272 |
) |
|
|
(3,185 |
) |
|
|
(1,711 |
) |
Share
repurchases |
|
(89,830 |
) |
|
|
(29,684 |
) |
|
|
(266,933 |
) |
|
|
(71,736 |
) |
Employee
shares withheld for taxes |
|
(29,858 |
) |
|
|
(1,255 |
) |
|
|
(31,033 |
) |
|
|
(1,723 |
) |
Net cash provided by (used in) financing activities from continuing
operations |
|
272,364 |
|
|
|
(26,211 |
) |
|
|
208,849 |
|
|
|
(62,170 |
) |
Effect of
exchange rate changes on cash from continuing operations |
|
(278 |
) |
|
|
3,234 |
|
|
|
(3,204 |
) |
|
|
5,734 |
|
Net increase
in cash and cash equivalents |
|
48,240 |
|
|
|
23,368 |
|
|
|
1,331 |
|
|
|
22,850 |
|
Cash and
cash equivalents at beginning of period |
|
28,962 |
|
|
|
37,253 |
|
|
|
75,871 |
|
|
|
37,771 |
|
Cash and
cash equivalents at end of period |
$ |
77,202 |
|
|
$ |
60,621 |
|
|
$ |
77,202 |
|
|
$ |
60,621 |
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents included in the line item Assets held for sale on the
Consolidated Balance Sheets as shown below, represents amounts
included within held for sale accounting related to the sale of the
Company's U.K. fruit business, the Orchard House Foods Limited
business and associated brands. |
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
77,202 |
|
|
$ |
46,813 |
|
|
$ |
77,202 |
|
|
$ |
46,813 |
|
Cash and
cash equivalents classified in assets held for sale |
|
- |
|
|
|
13,808 |
|
|
|
- |
|
|
|
13,808 |
|
Total cash
and cash equivalents shown in the Consolidated Statements of Cash
Flows |
$ |
77,202 |
|
|
$ |
60,621 |
|
|
$ |
77,202 |
|
|
$ |
60,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 - Q2 FY22 |
$ |
275,014 |
|
|
$ |
201,927 |
|
|
$ |
- |
|
|
$ |
476,941 |
|
Net sales -
Q2 FY21 |
$ |
282,612 |
|
|
$ |
245,806 |
|
|
$ |
- |
|
|
$ |
528,418 |
|
% change -
FY22 net sales vs. FY21 net sales |
|
(2.7 |
)% |
|
|
(17.9 |
)% |
|
|
|
|
(9.7 |
)% |
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
|
|
|
|
Q2 FY22 |
|
|
|
|
|
|
|
Gross
profit |
$ |
67,721 |
|
|
$ |
49,574 |
|
|
$ |
- |
|
|
$ |
117,295 |
|
Non-GAAP
adjustments(1) |
|
183 |
|
|
|
(168 |
) |
|
|
- |
|
|
|
15 |
|
Adjusted
gross profit |
$ |
67,904 |
|
|
$ |
49,406 |
|
|
$ |
- |
|
|
$ |
117,310 |
|
Gross
margin |
|
24.6 |
% |
|
|
24.6 |
% |
|
|
|
|
24.6 |
% |
Adjusted
gross margin |
|
24.7 |
% |
|
|
24.5 |
% |
|
|
|
|
24.6 |
% |
|
|
|
|
|
|
|
|
Q2 FY21 |
|
|
|
|
|
|
|
Gross
profit |
$ |
78,285 |
|
|
$ |
51,680 |
|
|
$ |
- |
|
|
$ |
129,965 |
|
Non-GAAP
adjustments(1) |
|
2,233 |
|
|
|
1,675 |
|
|
|
- |
|
|
|
3,908 |
|
Adjusted
gross profit |
$ |
80,518 |
|
|
$ |
53,355 |
|
|
$ |
- |
|
|
$ |
133,873 |
|
Gross
margin |
|
27.7 |
% |
|
|
21.0 |
% |
|
|
|
|
24.6 |
% |
Adjusted
gross margin |
|
28.5 |
% |
|
|
21.7 |
% |
|
|
|
|
25.3 |
% |
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
|
|
|
|
Q2 FY22 |
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
27,162 |
|
|
$ |
27,368 |
|
|
$ |
(22,509 |
) |
|
$ |
32,021 |
|
Non-GAAP
adjustments(1) |
|
1,802 |
|
|
|
396 |
|
|
|
11,498 |
|
|
|
13,696 |
|
Adjusted
operating income (loss) |
$ |
28,964 |
|
|
$ |
27,764 |
|
|
$ |
(11,011 |
) |
|
$ |
45,717 |
|
Operating
income margin |
|
9.9 |
% |
|
|
13.6 |
% |
|
|
|
|
6.7 |
% |
Adjusted
operating income margin |
|
10.5 |
% |
|
|
13.7 |
% |
|
|
|
|
9.6 |
% |
|
|
|
|
|
|
|
|
Q2 FY21 |
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
32,440 |
|
|
$ |
(2,741 |
) |
|
$ |
(16,742 |
) |
|
$ |
12,957 |
|
Non-GAAP
adjustments(1) |
|
3,003 |
|
|
|
27,800 |
|
|
|
4,320 |
|
|
|
35,123 |
|
Adjusted
operating income (loss) |
$ |
35,443 |
|
|
$ |
25,059 |
|
|
$ |
(12,422 |
) |
|
$ |
48,080 |
|
Operating
income (loss) margin |
|
11.5 |
% |
|
|
(1.1 |
)% |
|
|
|
|
2.5 |
% |
Adjusted
operating income margin |
|
12.5 |
% |
|
|
10.2 |
% |
|
|
|
|
9.1 |
% |
|
|
|
|
|
|
|
|
(1) See accompanying
table "Adjusted Gross Profit, Adjusted Operating Income, Adjusted
Net Income and Adjusted EPS" |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 - Q2 FY22 YTD |
$ |
540,539 |
|
|
$ |
391,305 |
|
|
$ |
- |
|
|
$ |
931,844 |
|
Net sales -
Q2 FY21 YTD |
$ |
563,280 |
|
|
$ |
463,765 |
|
|
$ |
- |
|
|
$ |
1,027,045 |
|
% change -
FY22 net sales vs. FY21 net sales |
|
(4.0 |
)% |
|
|
(15.6 |
)% |
|
|
|
|
(9.3 |
)% |
|
|
|
|
|
|
|
|
Gross Profit |
|
|
|
|
|
|
|
Q2 FY22
YTD |
|
|
|
|
|
|
|
Gross
profit |
$ |
124,530 |
|
|
$ |
98,183 |
|
|
$ |
- |
|
|
$ |
222,713 |
|
Non-GAAP
adjustments(1) |
|
2,593 |
|
|
|
707 |
|
|
|
- |
|
|
|
3,300 |
|
Adjusted
gross profit |
$ |
127,123 |
|
|
$ |
98,890 |
|
|
$ |
- |
|
|
$ |
226,013 |
|
Gross
margin |
|
23.0 |
% |
|
|
25.1 |
% |
|
|
|
|
23.9 |
% |
Adjusted
gross margin |
|
23.5 |
% |
|
|
25.3 |
% |
|
|
|
|
24.3 |
% |
|
|
|
|
|
|
|
|
Q2 FY21
YTD |
|
|
|
|
|
|
|
Gross
profit |
$ |
153,300 |
|
|
$ |
95,829 |
|
|
$ |
- |
|
|
$ |
249,129 |
|
Non-GAAP
adjustments(1) |
|
3,166 |
|
|
|
1,915 |
|
|
|
- |
|
|
|
5,081 |
|
Adjusted
gross profit |
$ |
156,466 |
|
|
$ |
97,744 |
|
|
$ |
- |
|
|
$ |
254,210 |
|
Gross
margin |
|
27.2 |
% |
|
|
20.7 |
% |
|
|
|
|
24.3 |
% |
Adjusted
gross margin |
|
27.8 |
% |
|
|
21.1 |
% |
|
|
|
|
24.8 |
% |
|
|
|
|
|
|
|
|
Operating income (loss) |
|
|
|
|
|
|
|
Q2 FY22
YTD |
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
44,004 |
|
|
$ |
51,437 |
|
|
$ |
(37,873 |
) |
|
$ |
57,568 |
|
Non-GAAP
adjustments(1) |
|
5,497 |
|
|
|
1,572 |
|
|
|
15,424 |
|
|
|
22,493 |
|
Adjusted
operating income (loss) |
$ |
49,501 |
|
|
$ |
53,009 |
|
|
$ |
(22,449 |
) |
|
$ |
80,061 |
|
Operating
income margin |
|
8.1 |
% |
|
|
13.1 |
% |
|
|
|
|
6.2 |
% |
Adjusted
operating income margin |
|
9.2 |
% |
|
|
13.5 |
% |
|
|
|
|
8.6 |
% |
|
|
|
|
|
|
|
|
Q2 FY21
YTD |
|
|
|
|
|
|
|
Operating
income (loss) |
$ |
65,696 |
|
|
$ |
(18,630 |
) |
|
$ |
(30,829 |
) |
|
$ |
16,237 |
|
Non-GAAP
adjustments(1) |
|
4,491 |
|
|
|
60,994 |
|
|
|
5,125 |
|
|
|
70,610 |
|
Adjusted
operating income (loss) |
$ |
70,187 |
|
|
$ |
42,364 |
|
|
$ |
(25,704 |
) |
|
$ |
86,847 |
|
Operating
income (loss) margin |
|
11.7 |
% |
|
|
(4.0 |
)% |
|
|
|
|
1.6 |
% |
Adjusted
operating income margin |
|
12.5 |
% |
|
|
9.1 |
% |
|
|
|
|
8.5 |
% |
|
|
|
|
|
|
|
|
(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) |
|
|
|
|
|
|
|
|
|
Second Quarter |
|
2022 GAAP |
Adjustments |
2022 Adjusted |
|
2021 GAAP |
Adjustments |
2021 Adjusted |
|
|
|
|
|
|
|
|
Net sales |
$ |
476,941 |
|
$ |
- |
|
$ |
476,941 |
|
$ |
528,418 |
|
$ |
- |
|
$ |
528,418 |
Cost of
sales |
|
359,646 |
|
|
(15 |
) |
|
359,631 |
|
|
398,453 |
|
|
(3,908 |
) |
|
394,545 |
Gross profit |
|
117,295 |
|
|
15 |
|
|
117,310 |
|
|
129,965 |
|
|
3,908 |
|
|
133,873 |
Operating
expenses(a) |
|
82,488 |
|
|
(10,895 |
) |
|
71,593 |
|
|
111,997 |
|
|
(26,204 |
) |
|
85,793 |
Productivity
and transformation costs |
|
2,786 |
|
|
(2,786 |
) |
|
- |
|
|
5,011 |
|
|
(5,011 |
) |
|
- |
Operating income |
|
32,021 |
|
|
13,696 |
|
|
45,717 |
|
|
12,957 |
|
|
35,123 |
|
|
48,080 |
Interest and
other (income) expense, net(b) |
|
(6,478 |
) |
|
9,136 |
|
|
2,658 |
|
|
1,292 |
|
|
(234 |
) |
|
1,058 |
Provision
for income taxes |
|
7,145 |
|
|
1,110 |
|
|
8,255 |
|
|
8,438 |
|
|
2,827 |
|
|
11,265 |
Net income from continuing operations |
|
30,889 |
|
|
3,450 |
|
|
34,339 |
|
|
2,151 |
|
|
32,530 |
|
|
34,681 |
Net (loss) income from discontinued operations,
net of tax |
|
- |
|
|
- |
|
|
- |
|
|
(11 |
) |
|
11 |
|
|
- |
Net
income |
|
30,889 |
|
|
3,450 |
|
|
34,339 |
|
|
2,140 |
|
|
32,541 |
|
|
34,681 |
|
|
|
|
|
|
|
|
Diluted net
income per common share from continuing operations |
|
0.33 |
|
|
0.03 |
|
|
0.36 |
|
|
0.02 |
|
|
0.32 |
|
|
0.34 |
Diluted net
income per common share from discontinued operations |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
Diluted net
income per common share |
|
0.33 |
|
|
0.03 |
|
|
0.36 |
|
|
0.02 |
|
|
0.32 |
|
|
0.34 |
|
|
|
|
|
|
|
|
Detail of
Adjustments: |
|
|
|
|
|
|
|
|
|
Q2 FY22 |
|
|
|
Q2 FY21 |
|
Inventory
write-down |
|
$ |
(46 |
) |
|
|
|
$ |
107 |
|
|
Plant
closure related costs, net |
|
|
(188 |
) |
|
|
|
|
476 |
|
|
Warehouse/manufacturing consolidation and other costs |
|
|
249 |
|
|
|
|
|
3,325 |
|
|
Cost of
sales |
|
|
15 |
|
|
|
|
|
3,908 |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
15 |
|
|
|
|
|
3,908 |
|
|
|
|
|
|
|
|
|
|
Transaction
costs, net |
|
|
8,963 |
|
|
|
|
|
1,005 |
|
|
Litigation
expenses |
|
|
1,624 |
|
|
|
|
|
- |
|
|
Long-lived
asset impairment |
|
|
303 |
|
|
|
|
|
25,179 |
|
|
Plant
closure related costs, net |
|
|
5 |
|
|
|
|
|
20 |
|
|
Operating
expenses(a) |
|
|
10,895 |
|
|
|
|
|
26,204 |
|
|
|
|
|
|
|
|
|
|
Productivity
and transformation costs |
|
|
2,786 |
|
|
|
|
|
5,011 |
|
|
Productivity and transformation costs |
|
|
2,786 |
|
|
|
|
|
5,011 |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
|
13,696 |
|
|
|
|
|
35,123 |
|
|
|
|
|
|
|
|
|
|
Gain on sale
of assets |
|
|
(8,656 |
) |
|
|
|
|
- |
|
|
Loss on sale
of businesses |
|
|
- |
|
|
|
|
|
9 |
|
|
Unrealized
currency (gains) losses |
|
|
(480 |
) |
|
|
|
|
225 |
|
|
Interest
and other (income) expense, net(b) |
|
|
(9,136 |
) |
|
|
|
|
234 |
|
|
|
|
|
|
|
|
|
|
Income tax
related adjustments |
|
|
(1,110 |
) |
|
|
|
|
(2,827 |
) |
|
Provision
for income taxes |
|
|
(1,110 |
) |
|
|
|
|
(2,827 |
) |
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
3,450 |
|
|
|
|
$ |
32,530 |
|
|
|
|
|
|
|
|
|
|
(a) Operating expenses
include amortization of acquired intangibles, selling, general and
administrative expenses and long-lived asset impairment. |
(b) Interest and other
(income) expense, net includes interest and other financing
expenses, net, unrealized currency (gains) losses, (gain) loss on
sale of assets and businesses and other expense, net. |
|
|
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) |
|
|
|
|
|
|
|
|
|
Second Quarter Year to Date |
|
2022 GAAP |
Adjustments |
2022 Adjusted |
|
2021 GAAP |
Adjustments |
2021 Adjusted |
|
|
|
|
|
|
|
|
Net sales |
$ |
931,844 |
|
$ |
- |
|
$ |
931,844 |
|
$ |
1,027,045 |
|
$ |
- |
|
$ |
1,027,045 |
Cost of
sales |
|
709,131 |
|
|
(3,300 |
) |
|
705,831 |
|
|
777,916 |
|
|
(5,081 |
) |
|
772,835 |
Gross profit |
|
222,713 |
|
|
3,300 |
|
|
226,013 |
|
|
249,129 |
|
|
5,081 |
|
|
254,210 |
Operating
expenses(a) |
|
158,572 |
|
|
(12,620 |
) |
|
145,952 |
|
|
226,448 |
|
|
(59,085 |
) |
|
167,363 |
Productivity
and transformation costs |
|
6,769 |
|
|
(6,769 |
) |
|
- |
|
|
6,444 |
|
|
(6,444 |
) |
|
- |
Proceeds
from insurance claim |
|
(196 |
) |
|
196 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
Operating income |
|
57,568 |
|
|
22,493 |
|
|
80,061 |
|
|
16,237 |
|
|
70,610 |
|
|
86,847 |
Interest and
other (income) expense, net(b) |
|
(5,410 |
) |
|
10,605 |
|
|
5,195 |
|
|
2,372 |
|
|
1,588 |
|
|
3,960 |
Provision
(benefit) for income taxes |
|
11,687 |
|
|
4,020 |
|
|
15,707 |
|
|
21,400 |
|
|
(1,735 |
) |
|
19,665 |
Net income (loss) from continuing operations |
|
50,300 |
|
|
7,868 |
|
|
58,168 |
|
|
(8,630 |
) |
|
70,757 |
|
|
62,127 |
Net income (loss) from discontinued operations,
net of tax |
|
- |
|
|
- |
|
|
- |
|
|
11,255 |
|
|
(11,255 |
) |
|
- |
Net
income |
|
50,300 |
|
|
7,868 |
|
|
58,168 |
|
|
2,625 |
|
|
59,502 |
|
|
62,127 |
|
|
|
|
|
|
|
|
Diluted net
income (loss) per common share from continuing operations |
|
0.52 |
|
|
0.09 |
|
|
0.61 |
|
|
(0.09 |
) |
|
0.71 |
|
|
0.62 |
Diluted net
income (loss) per common share from discontinued operations |
|
- |
|
|
- |
|
|
- |
|
|
0.11 |
|
|
(0.11 |
) |
|
- |
Diluted net
income per common share |
|
0.52 |
|
|
0.09 |
|
|
0.61 |
|
|
0.02 |
|
|
0.60 |
|
|
0.62 |
|
|
|
|
|
|
|
|
Detail of
Adjustments: |
|
|
|
|
|
|
|
|
|
Q2 FY22 YTD |
|
|
|
Q2 FY21 YTD |
|
Inventory
write-down |
|
$ |
(46 |
) |
|
|
|
$ |
311 |
|
|
Plant
closure related costs, net |
|
|
808 |
|
|
|
|
|
1,055 |
|
|
Warehouse/manufacturing consolidation and other costs |
|
|
2,538 |
|
|
|
|
|
3,715 |
|
|
Cost of
sales |
|
|
3,300 |
|
|
|
|
|
5,081 |
|
|
|
|
|
|
|
|
|
|
Gross
profit |
|
|
3,300 |
|
|
|
|
|
5,081 |
|
|
|
|
|
|
|
|
|
|
Transaction
costs, net |
|
|
8,732 |
|
|
|
|
|
1,374 |
|
|
Litigation
expenses |
|
|
3,580 |
|
|
|
|
|
- |
|
|
Long-lived
asset impairment |
|
|
303 |
|
|
|
|
|
57,676 |
|
|
Plant
closure related costs, net |
|
|
5 |
|
|
|
|
|
35 |
|
|
Operating
expenses(a) |
|
|
12,620 |
|
|
|
|
|
59,085 |
|
|
|
|
|
|
|
|
|
|
Productivity
and transformation costs |
|
|
6,769 |
|
|
|
|
|
6,444 |
|
|
Productivity and transformation costs |
|
|
6,769 |
|
|
|
|
|
6,444 |
|
|
|
|
|
|
|
|
|
|
Proceeds
from insurance claim |
|
|
(196 |
) |
|
|
|
|
- |
|
|
Proceeds
from insurance claim |
|
|
(196 |
) |
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Operating
income |
|
|
22,493 |
|
|
|
|
|
70,610 |
|
|
|
|
|
|
|
|
|
|
Gain on sale
of assets |
|
|
(9,102 |
) |
|
|
|
|
- |
|
|
Gain on sale
of businesses |
|
|
- |
|
|
|
|
|
(611 |
) |
|
Unrealized
currency gains |
|
|
(1,503 |
) |
|
|
|
|
(977 |
) |
|
Interest
and other (income) expense, net(b) |
|
|
(10,605 |
) |
|
|
|
|
(1,588 |
) |
|
|
|
|
|
|
|
|
|
Income tax
related adjustments |
|
|
(4,020 |
) |
|
|
|
|
1,735 |
|
|
Provision
(benefit) for income taxes |
|
|
(4,020 |
) |
|
|
|
|
1,735 |
|
|
|
|
|
|
|
|
|
|
Net income from continuing operations |
|
$ |
7,868 |
|
|
|
|
$ |
70,757 |
|
|
|
|
|
|
|
|
|
|
(a) Operating expenses
include amortization of acquired intangibles, selling, general and
administrative expenses and long-lived asset impairment. |
(b) Interest and other
(income) expense, 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) |
|
|
|
|
|
|
Q2
FY22 |
North America |
|
International |
|
Hain Consolidated |
Net sales |
$ |
275,014 |
|
|
$ |
201,927 |
|
|
$ |
476,941 |
|
Acquisitions, divestitures and discontinued brands |
|
(349 |
) |
|
|
- |
|
|
|
(349 |
) |
Impact of
foreign currency exchange |
|
(1,008 |
) |
|
|
(99 |
) |
|
|
(1,107 |
) |
Net sales on
a constant currency basis adjusted for acquisitions, divestitures
and discontinued brands |
$ |
273,657 |
|
|
$ |
201,828 |
|
|
$ |
475,485 |
|
|
|
|
|
|
|
Q2
FY21 |
|
|
|
|
|
Net
sales |
$ |
282,612 |
|
|
$ |
245,806 |
|
|
$ |
528,418 |
|
Divestitures
and discontinued brands |
|
(10,353 |
) |
|
|
(31,657 |
) |
|
|
(42,010 |
) |
Net sales
adjusted for divestitures and discontinued brands |
$ |
272,259 |
|
|
$ |
214,149 |
|
|
$ |
486,408 |
|
|
|
|
|
|
|
Net sales
decline |
|
(2.7 |
)% |
|
|
(17.9 |
)% |
|
|
(9.7 |
)% |
Impact of
acquisitions, divestitures and discontinued brands |
|
3.6 |
% |
|
|
12.1 |
% |
|
|
7.7 |
% |
Impact of
foreign currency exchange |
|
(0.4 |
)% |
|
|
(0.0 |
)% |
|
|
(0.2 |
)% |
Net sales
growth (decline) on a constant currency basis adjusted for
acquisitions, divestitures and discontinued brands |
|
0.5 |
% |
|
|
(5.8 |
)% |
|
|
(2.2 |
)% |
|
|
|
|
|
|
Q2
FY22 YTD |
North America |
|
International |
|
Hain Consolidated |
Net
sales |
$ |
540,539 |
|
|
$ |
391,305 |
|
|
$ |
931,844 |
|
Acquisitions, divestitures and discontinued brands |
|
(527 |
) |
|
|
- |
|
|
|
(527 |
) |
Impact of
foreign currency exchange |
|
(2,727 |
) |
|
|
(8,368 |
) |
|
|
(11,095 |
) |
Net sales on
a constant currency basis adjusted for acquisitions, divestitures
and discontinued brands |
$ |
537,285 |
|
|
$ |
382,937 |
|
|
$ |
920,222 |
|
|
|
|
|
|
|
Q2
FY21 YTD |
|
|
|
|
|
Net
sales |
$ |
563,280 |
|
|
$ |
463,765 |
|
|
$ |
1,027,045 |
|
Divestitures
and discontinued brands |
|
(23,974 |
) |
|
|
(71,287 |
) |
|
|
(95,261 |
) |
Net sales
adjusted for divestitures and discontinued brands |
$ |
539,306 |
|
|
$ |
392,478 |
|
|
$ |
931,784 |
|
|
|
|
|
|
|
Net sales
decline |
|
(4.0 |
)% |
|
|
(15.6 |
)% |
|
|
(9.3 |
)% |
Impact of
acquisitions, divestitures and discontinued brands |
|
4.1 |
% |
|
|
15.0 |
% |
|
|
9.1 |
% |
Impact of
foreign currency exchange |
|
(0.5 |
)% |
|
|
(1.8 |
)% |
|
|
(1.1 |
)% |
Net sales
decline on a constant currency basis adjusted for acquisitions,
divestitures and discontinued brands |
|
(0.4 |
)% |
|
|
(2.4 |
)% |
|
|
(1.3 |
)% |
|
|
|
|
|
|
|
|
|
|
|
|
THE HAIN
CELESTIAL GROUP, INC. |
Adjusted
EBITDA |
(unaudited and in
thousands) |
|
|
|
|
|
|
|
|
|
Second Quarter |
|
Second Quarter Year to Date |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net
income |
$ |
30,889 |
|
|
$ |
2,140 |
|
|
$ |
50,300 |
|
|
$ |
2,625 |
|
Net (loss)
income from discontinued operations, net of tax |
|
- |
|
|
|
(11 |
) |
|
|
- |
|
|
|
11,255 |
|
Net income
(loss) from continuing operations |
$ |
30,889 |
|
|
$ |
2,151 |
|
|
$ |
50,300 |
|
|
$ |
(8,630 |
) |
|
|
|
|
|
|
|
|
Depreciation
and amortization |
|
10,903 |
|
|
|
11,193 |
|
|
|
21,758 |
|
|
|
24,954 |
|
Equity in
net loss of equity-method investees |
|
465 |
|
|
|
1,076 |
|
|
|
991 |
|
|
|
1,095 |
|
Interest
expense, net |
|
1,685 |
|
|
|
1,300 |
|
|
|
2,831 |
|
|
|
3,454 |
|
Provision
for income taxes |
|
7,145 |
|
|
|
8,438 |
|
|
|
11,687 |
|
|
|
21,400 |
|
Stock-based
compensation |
|
4,156 |
|
|
|
3,823 |
|
|
|
8,443 |
|
|
|
8,190 |
|
Unrealized
currency (gains) losses |
|
(480 |
) |
|
|
225 |
|
|
|
(1,503 |
) |
|
|
(977 |
) |
Litigation
and related costs |
|
|
|
|
|
|
|
Litigation expenses |
|
1,624 |
|
|
|
- |
|
|
|
3,580 |
|
|
|
- |
|
Proceeds from insurance claim |
|
- |
|
|
|
- |
|
|
|
(196 |
) |
|
|
- |
|
Restructuring activities |
|
|
|
|
|
|
|
Plant closure related costs, net |
|
(183 |
) |
|
|
2 |
|
|
|
813 |
|
|
|
(4 |
) |
Productivity and transformation costs |
|
2,247 |
|
|
|
4,358 |
|
|
|
5,451 |
|
|
|
5,139 |
|
Warehouse/manufacturing consolidation and other costs |
|
249 |
|
|
|
3,325 |
|
|
|
2,538 |
|
|
|
3,715 |
|
Acquisitions, divestitures and other |
|
|
|
|
|
|
|
Transaction costs, net |
|
8,963 |
|
|
|
1,005 |
|
|
|
8,732 |
|
|
|
1,374 |
|
Gain on sale of assets |
|
(8,656 |
) |
|
|
- |
|
|
|
(9,102 |
) |
|
|
- |
|
Loss (gain) on sale of businesses |
|
- |
|
|
|
9 |
|
|
|
- |
|
|
|
(611 |
) |
Impairment
charges |
|
|
|
|
|
|
|
Inventory write-down |
|
(46 |
) |
|
|
107 |
|
|
|
(46 |
) |
|
|
311 |
|
Long-lived asset impairment |
|
303 |
|
|
|
25,179 |
|
|
|
303 |
|
|
|
57,676 |
|
Adjusted
EBITDA |
$ |
59,264 |
|
|
$ |
62,191 |
|
|
$ |
106,580 |
|
|
$ |
117,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE HAIN
CELESTIAL GROUP, INC. |
Adjusted
EBITDA and Adjusted EBITDA Margin by Segment |
(unaudited and in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
FY22 |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Operating income (loss) |
$ |
27,162 |
|
|
$ |
27,368 |
|
|
$ |
(22,509 |
) |
|
$ |
32,021 |
|
Depreciation
and amortization |
|
3,654 |
|
|
|
6,295 |
|
|
|
954 |
|
|
|
10,903 |
|
Stock-based
compensation |
|
778 |
|
|
|
346 |
|
|
|
3,032 |
|
|
|
4,156 |
|
Transaction
costs, net |
|
43 |
|
|
|
- |
|
|
|
8,920 |
|
|
|
8,963 |
|
Litigation
expenses |
|
- |
|
|
|
- |
|
|
|
1,624 |
|
|
|
1,624 |
|
Plant
closure related costs, net |
|
122 |
|
|
|
(305 |
) |
|
|
- |
|
|
|
(183 |
) |
Productivity
and transformation costs |
|
1,577 |
|
|
|
255 |
|
|
|
415 |
|
|
|
2,247 |
|
Warehouse/manufacturing consolidation and other costs |
|
106 |
|
|
|
143 |
|
|
|
- |
|
|
|
249 |
|
Inventory
write-down |
|
(46 |
) |
|
|
- |
|
|
|
- |
|
|
|
(46 |
) |
Long-lived
asset impairment |
|
- |
|
|
|
303 |
|
|
|
- |
|
|
|
303 |
|
Other |
|
(59 |
) |
|
|
(106 |
) |
|
|
(808 |
) |
|
|
(973 |
) |
Adjusted
EBITDA |
$ |
33,337 |
|
|
$ |
34,299 |
|
|
$ |
(8,372 |
) |
|
$ |
59,264 |
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
275,014 |
|
|
$ |
201,927 |
|
|
|
|
$ |
476,941 |
|
Adjusted
EBITDA margin |
|
12.1 |
% |
|
|
17.0 |
% |
|
|
|
|
12.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
FY21 |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Operating
income (loss) |
$ |
32,440 |
|
|
$ |
(2,741 |
) |
|
$ |
(16,742 |
) |
|
$ |
12,957 |
|
Depreciation
and amortization |
|
4,117 |
|
|
|
6,418 |
|
|
|
658 |
|
|
|
11,193 |
|
Stock-based
compensation |
|
855 |
|
|
|
369 |
|
|
|
2,599 |
|
|
|
3,823 |
|
Transaction
costs, net |
|
(21 |
) |
|
|
18 |
|
|
|
1,008 |
|
|
|
1,005 |
|
Plant
closure related costs, net |
|
29 |
|
|
|
(27 |
) |
|
|
- |
|
|
|
2 |
|
Productivity
and transformation costs |
|
772 |
|
|
|
2,511 |
|
|
|
1,075 |
|
|
|
4,358 |
|
Warehouse/manufacturing consolidation and other costs |
|
1,622 |
|
|
|
1,703 |
|
|
|
- |
|
|
|
3,325 |
|
Inventory
write-down |
|
107 |
|
|
|
- |
|
|
|
- |
|
|
|
107 |
|
Long-lived
asset impairment |
|
- |
|
|
|
23,596 |
|
|
|
1,583 |
|
|
|
25,179 |
|
Other |
|
(321 |
) |
|
|
326 |
|
|
|
237 |
|
|
|
242 |
|
Adjusted
EBITDA |
$ |
39,600 |
|
|
$ |
32,173 |
|
|
$ |
(9,582 |
) |
|
$ |
62,191 |
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
282,612 |
|
|
$ |
245,806 |
|
|
|
|
$ |
528,418 |
|
Adjusted
EBITDA margin |
|
14.0 |
% |
|
|
13.1 |
% |
|
|
|
|
11.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE HAIN
CELESTIAL GROUP, INC. |
Adjusted
EBITDA and Adjusted EBITDA Margin by Segment |
(unaudited and in
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
FY22 YTD |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Operating income (loss) |
$ |
44,004 |
|
|
$ |
51,437 |
|
|
$ |
(37,873 |
) |
|
$ |
57,568 |
|
Depreciation
and amortization |
|
7,396 |
|
|
|
12,705 |
|
|
|
1,657 |
|
|
|
21,758 |
|
Stock-based
compensation |
|
1,414 |
|
|
|
1,067 |
|
|
|
5,962 |
|
|
|
8,443 |
|
Transaction
costs, net |
|
(298 |
) |
|
|
- |
|
|
|
9,030 |
|
|
|
8,732 |
|
Litigation
expenses |
|
- |
|
|
|
- |
|
|
|
3,580 |
|
|
|
3,580 |
|
Proceeds
from insurance claim |
|
- |
|
|
|
- |
|
|
|
(196 |
) |
|
|
(196 |
) |
Plant
closure related costs, net |
|
1,118 |
|
|
|
(305 |
) |
|
|
- |
|
|
|
813 |
|
Productivity
and transformation costs |
|
3,202 |
|
|
|
554 |
|
|
|
1,695 |
|
|
|
5,451 |
|
Warehouse/manufacturing consolidation and other costs |
|
1,519 |
|
|
|
1,019 |
|
|
|
- |
|
|
|
2,538 |
|
Inventory
write-down |
|
(46 |
) |
|
|
- |
|
|
|
- |
|
|
|
(46 |
) |
Long-lived
asset impairment |
|
- |
|
|
|
303 |
|
|
|
- |
|
|
|
303 |
|
Other |
|
(870 |
) |
|
|
(47 |
) |
|
|
(1,447 |
) |
|
|
(2,364 |
) |
Adjusted
EBITDA |
$ |
57,439 |
|
|
$ |
66,733 |
|
|
$ |
(17,592 |
) |
|
$ |
106,580 |
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
540,539 |
|
|
$ |
391,305 |
|
|
|
|
$ |
931,844 |
|
Adjusted
EBITDA margin |
|
10.6 |
% |
|
|
17.1 |
% |
|
|
|
|
11.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2
FY21 YTD |
North America |
|
International |
|
Corporate/ Other |
|
Hain Consolidated |
Operating
income (loss) |
$ |
65,696 |
|
|
$ |
(18,630 |
) |
|
$ |
(30,829 |
) |
|
$ |
16,237 |
|
Depreciation
and amortization |
|
8,262 |
|
|
|
15,281 |
|
|
|
1,411 |
|
|
|
24,954 |
|
Stock-based
compensation |
|
1,719 |
|
|
|
1,044 |
|
|
|
5,427 |
|
|
|
8,190 |
|
Transaction
costs, net |
|
(72 |
) |
|
|
86 |
|
|
|
1,360 |
|
|
|
1,374 |
|
Plant
closure related costs, net |
|
(28 |
) |
|
|
24 |
|
|
|
- |
|
|
|
(4 |
) |
Productivity
and transformation costs |
|
1,377 |
|
|
|
2,888 |
|
|
|
874 |
|
|
|
5,139 |
|
Warehouse/manufacturing consolidation and other costs |
|
1,822 |
|
|
|
1,893 |
|
|
|
- |
|
|
|
3,715 |
|
Inventory
write-down |
|
311 |
|
|
|
- |
|
|
|
- |
|
|
|
311 |
|
Long-lived
asset impairment |
|
(11 |
) |
|
|
56,104 |
|
|
|
1,583 |
|
|
|
57,676 |
|
Other |
|
(354 |
) |
|
|
188 |
|
|
|
(340 |
) |
|
|
(506 |
) |
Adjusted
EBITDA |
$ |
78,722 |
|
|
$ |
58,878 |
|
|
$ |
(20,514 |
) |
|
$ |
117,086 |
|
|
|
|
|
|
|
|
|
Net
sales |
$ |
563,280 |
|
|
$ |
463,765 |
|
|
|
|
$ |
1,027,045 |
|
Adjusted
EBITDA margin |
|
14.0 |
% |
|
|
12.7 |
% |
|
|
|
|
11.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE HAIN
CELESTIAL GROUP, INC. |
Operating
Free Cash Flow |
(unaudited and in
thousands) |
|
|
|
|
|
|
|
|
|
Second Quarter |
|
Second Quarter Year to Date |
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
Net cash
provided by operating activities from continuing operations |
$ |
30,445 |
|
|
$ |
63,861 |
|
|
$ |
68,031 |
|
|
$ |
104,530 |
|
Purchases of
property, plant and equipment |
|
(10,186 |
) |
|
|
(17,516 |
) |
|
|
(27,996 |
) |
|
|
(29,671 |
) |
Operating
free cash flow from continuing operations |
$ |
20,259 |
|
|
$ |
46,345 |
|
|
$ |
40,035 |
|
|
$ |
74,859 |
|
|
|
|
|
|
|
|
|
Hain Celestial (NASDAQ:HAIN)
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From Jun 2024 to Jul 2024
Hain Celestial (NASDAQ:HAIN)
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From Jul 2023 to Jul 2024