NTY Nbty Inc.

NBTY Updates Fourth Quarter And Year-End Results BOHEMIA, N.Y., Nov. 11 /PRNewswire-FirstCall/ -- NBTY, Inc. (http://www.nbty.com/) announced results for its fiscal fourth quarter and year ended September 30, 2003. Included in these results was a $7 million, pre-tax, one- time charge for the write-off relating to the Company's investment in bonds purchased in anticipation of an acquisition that NBTY determined not to pursue. Subsequent to September 30, 2003, the Company sold a portion of such bonds, recouping approximately $3 million of the write-off. Accordingly, the Company is reducing this reported write-off to $4 million, which has the effect of increasing the Company's net income and earnings per diluted share for the fiscal fourth quarter and year ended September 30, 2003. These revised results are as follows: (Dollars in thousands, except per share amounts) Three Months Ended Fiscal Year Ended September 30, 2003 September 30, 2003 Net Income $15,882 $81,585 Earnings per diluted share $ 0.23 $ 1.19 ABOUT NBTY NBTY is a leading vertically integrated manufacturer and distributor of a broad line of high-quality, value-priced nutritional supplements in the United States and throughout the world. The Company markets approximately 1,500 products under several brands, including Nature's Bounty(R), Vitamin World(R), Puritan's Pride(R), Holland & Barrett(R), Rexall(R), Sundown(R), MET-Rx(R), WORLDWIDE Sports Nutrition(R), American Health(R), GNC (UK)(R) and DeTuinen(R). NBTY, INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars and shares in thousands, except per share amounts) For the three months ended September 30, 2003 2002 Net sales $364,847 $245,461 Cost and expenses: Cost of sales 182,249 107,805 Discontinued product charge (1,500) Catalog printing, postage and promotion 20,439 13,561 Selling, general and administrative 132,281 90,568 Litigation recovery of raw material costs (836) 333,469 211,098 Income from operations 31,378 34,363 Other (expense): Interest (5,674) (3,912) Investment write down (4,084) Miscellaneous, net (112) (765) (9,870) (4,677) Income before income taxes 21,508 29,686 Provision for income taxes 5,626 338 Net income $15,882 $29,348 Net income per share: Basic $0.24 $0.44 Diluted $0.23 $0.43 Weighted average common shares outstanding: Basic 66,547 66,122 Diluted 68,796 67,986 NBTY, INC. and SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Dollars and shares in thousands, except per share amounts) For the fiscal years ended September 30, 2003 2002 Net sales $1,192,548 $964,083 Cost and expenses: Cost of sales 554,804 433,611 Discontinued product charge 4,500 Catalog printing, postage and promotion 66,455 47,846 Selling, general and administrative 435,748 348,334 Litigation recovery of raw material costs (21,354) 1,061,507 808,437 Income from operations 131,041 155,646 Other income (expense): Interest (17,384) (18,499) Investment write down (4,084) Miscellaneous, net 5,424 1,560 (16,044) (16,939) Income before income taxes 114,997 138,707 Provision for income taxes 33,412 42,916 Net income $81,585 $95,791 Net income per share: Basic $1.23 $1.45 Diluted $1.19 $1.41 Weighted average common shares outstanding: Basic 66,452 65,952 Diluted 68,538 67,829 NBTY, INC. and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS (Dollars and shares in thousands) September 30, September 30, 2003 2002 Current assets: Cash and cash equivalents $49,349 $26,229 Investments in bonds 4,158 8,194 Accounts receivable, less allowance for doubtful accounts of $10,463 at September 30, 2003 and $4,194 at September 30, 2002 89,430 36,825 Inventories 314,091 204,402 Deferred income taxes 37,021 11,206 Prepaid expenses and other current assets 44,736 24,691 Total current assets 538,785 311,547 Property, plant and equipment, net 298,344 216,245 Goodwill 213,362 144,999 Intangible assets, net 137,469 48,413 Other assets 16,423 8,936 Total assets $1,204,383 $730,140 NBTY, INC. and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS LIABILITIES AND STOCKHOLDERS' EQUITY (Dollars and shares in thousands) September 30, September 30, 2003 2002 Current liabilities: Current portion of long-term debt and capital lease obligations $12,841 $23,044 Accounts payable 87,039 48,616 Accrued expenses and other current liabilities 124,630 54,177 Total current liabilities 224,510 125,837 Long-term debt 413,989 163,874 Deferred income taxes 40,213 16,928 Other liabilities 10,872 4,244 Total liabilities 689,584 310,883 Commitments and contingencies Stockholders' equity: Common stock, $0.008 par; authorized 175,000 shares; issued and outstanding 66,620 shares at September 30, 2003 and 66,322 shares at September 30, 2002 533 529 Capital in excess of par 130,208 126,283 Retained earnings 369,453 287,868 500,194 414,680 Accumulated other comprehensive income 14,605 4,577 Total stockholders' equity 514,799 419,257 Total liabilities and stockholders' equity $1,204,383 $730,140 NBTY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) For the fiscal years ended September 30, 2003 2002 Cash flows from operating activities: Net income $81,585 $95,791 Adjustments to reconcile net income to net cash provided by operating activities: (Gain)/loss on disposal/sale of property, plant and equipment (711) 102 Depreciation and amortization 46,884 42,192 Foreign currency exchange rate (gain) loss (334) 1,556 Amortization of deferred financing costs 1,003 782 Amortization of bond discount 124 124 Investment write down 4,084 Allowance for doubtful accounts (2,906) 972 Deferred income taxes 6,033 (5,829) Compensation expense for ESOP 1,710 Tax benefit from exercise of stock options 1,072 1,815 Changes in assets and liabilities, net of acquisitions: Accounts receivable (1,466) (7,011) Inventories (23,879) (14,277) Prepaid expenses and other current assets (15,855) (3,432) Other assets 616 (586) Accounts payable (2,773) (3,442) Accrued expenses and other liabilities 16,345 (3,670) Net cash provided by operating activities 111,532 105,087 Cash flows from investing activities: Cash paid for acquisitions, net of cash acquired (289,676) (7,702) Purchase of property, plant and equipment (37,510) (21,489) Proceeds from sale of property, plant, and equipment 1,498 1,004 Proceeds from sale of intangibles 53 Purchase of short term investments (8,242) Release of cash held in escrow 2,403 4,600 Net cash used in investing activities (323,285) (31,776) Cash flows from financing activities: Principal payments under long-term debt agreements and capital leases (35,212) (85,353) Proceeds from borrowings under long term debt agreements 275,000 Payments for debt issuance costs (7,500) Proceeds from stock options exercised 1,147 1,899 Net cash provided by (used in) financing activities 233,435 (83,454) Effect of exchange rate changes on cash and cash equivalents 1,438 1,938 Net increase (decrease) in cash and cash equivalents 23,120 (8,205) Cash and cash equivalents at beginning of year 26,229 34,434 Cash and cash equivalents at end of year $49,349 $26,229 Supplemental disclosure of cash flow information: Cash paid during the period for interest $17,709 $18,513 Cash paid during the period for income taxes $34,698 $55,101 DATASOURCE: NBTY Contact: Harvey Kamil, President and Chief Financial Officer of NBTY, Inc., +1-631-244-2020; or Carl Hymans of G.S. Schwartz & Co., +1-212-725-4500, , for NBTY, Inc. Web site: http://www.nbty.com/

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