LAKE SUCCESS, N.Y.,
May 8, 2014 /PRNewswire/ -- The Hain
Celestial Group, Inc. (NASDAQ: HAIN), a leading organic and natural
products company providing consumers with A Healthier Way of Life™,
today reported record results for its third quarter ended
March 31, 2014.
Performance Highlights
- Adjusted earnings per diluted share from continuing operations
of $0.88, a 22% increase
- Earnings per diluted share from continuing operations of
$0.75, compared to $0.87 a year ago, which included a $0.28 one-time tax benefit
- Record quarterly net sales of $557.4
million, a 22% increase
- Operating income of $63.6
million, 11.4% of net sales; adjusted operating income of
$72.3 million, 13.0% of net
sales
- Adjusted EBITDA of $83.3 million,
14.9% of net sales; EBITDA of $76.4
million, 13.7% of net sales
- Operating Free Cash Flow of $91.6
million for the nine months ended March 31, 2014
"We are pleased with our record third quarter results, the
highest net sales in the Company's history and our 13th
consecutive quarter of year-over-year double digit net sales and
adjusted earnings growth," said Irwin D.
Simon, Founder, President and Chief Executive Officer of
Hain Celestial. "We continue to experience strong demand for
our organic and natural brands as demonstrated by the increasing
consumption of our products. Today, our products are
available on shelves across more geographies and sales channels,
and we believe the opportunities ahead are even more compelling as
we expand with new and existing customers."
Third Quarter Fiscal 2014
The Company reported net
sales of $557.4 million, a 22%
increase, compared to net sales of $456.1
million in the third quarter of fiscal year 2013. Hain
Celestial US reported record third quarter net sales of
$319.5 million, a 15% increase. In
the United Kingdom, net sales were
$176.9 million, and the Rest of World
segment reported net sales of $61.0
million. The Company had strong brand contribution
across various sales channels led by Imagine®, The Greek Gods®,
Spectrum®, Earth's Best®, Garden of Eatin'®, Sensible Portions®,
Bearitos®, Terra®, Cully & Sully®, Hartley's®, Gale's®,
Sun-Pat®, Frank Cooper's®,
Robertson's®, Linda McCartney®, Lima®, Danival®, Natumi® and Alba
Botanica®. The growth in net sales also resulted from sales
of the Ella's Kitchen® brand acquired in the fourth quarter of
fiscal year 2013 and the Tilda® brand acquired in the third quarter
of fiscal year 2014.
For the third quarter, the Company earned adjusted net income
from continuing operations of $44.5
million compared to $34.4
million in the prior year third quarter, a 29% increase and
reported adjusted earnings per diluted share from continuing
operations of $0.88 compared to
$0.72, a 22% increase. Net
income was $35.2 million compared to
$40.7 million in the prior year third
quarter when the Company reported a tax benefit of $13.2 million, or $0.28 per diluted share, resulting from a
worthless stock tax deduction for an investment in one of the
Company's UK subsidiaries. Refer to Non-GAAP Financial Measures for
adjustments.
"The third quarter was a significant quarter for the Company
with many accomplishments," added Irwin
Simon. "We closed on the acquisition of Tilda®, a
leading global rice brand, which expanded our branded grocery
product offerings with basmati rice into the Ethnic Specialty
Channel and into new geographies in the Middle East, North
Africa and India. At this year's Natural Products Expo
West, which had a record-breaking 67,000 attendees, we featured
over 100 new and exciting food, beverage and personal care products
and met with leading accounts from across all sales channels.
Lastly, with several of our key commodities rising, we managed to
control our costs and delivered productivity savings, which we
expect to continue throughout the rest of this fiscal year and into
fiscal year 2015. We expect additional integration
opportunities from our BluePrint and Ella's Kitchen acquisitions to
continue into next year."
Acquisitions and Divestitures
"We are excited by the
strategic acquisition of Rudi's Organic Bakery, Inc., ("Rudi's"), a
leading certified organic bread brand, as we look for the latest
trends, and consumers are increasing their purchases of whole
grains, organic and gluten-free product offerings," commented
Irwin Simon. "As a company
committed to driving product innovation, we plan to build upon
Rudi's leadership position and see the opportunity to take Rudi's
into complementary product categories. We have a proven
ability to expand great brands and products into various channels
of distribution including the conventional, mass and club channels
where we see significant opportunities for increased
growth."
During the third quarter, the Company completed the previously
announced divestiture of the Grains Noirs business as well as other
discontinued products in Europe,
which were non-core assets. The Company will continue to
review its portfolio as it focuses on its core strategy of organic
and natural brands and products by streamlining its business where
appropriate and seeking out strategic accretive acquisitions which
complement the Company's growth plans.
Fiscal Year 2014 Guidance
The Company raised its
annual guidance for fiscal year 2014 to reflect the Rudi's
acquisition completed in April 2014
and performance year to date:
- Total net sales range of $2.145 billion
to $2.150 billion for fiscal year 2014; an increase of
approximately 24% as compared to fiscal year 2013.
- Earnings range of $3.14 to $3.17
per diluted share for fiscal year 2014; an increase of 24% to 25%
as compared to fiscal year 2013.
Guidance is provided for continuing operations on a non-GAAP
basis and excludes acquisition-related fees and expenses,
integration and restructuring charges, factory start-up costs,
certain litigation expenses, unrealized currency gains and losses
and specific losses on equity-method investees that have been or
may be incurred during the Company's fiscal year 2014, 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 organized
into geographic segments: United
States, United Kingdom and
Rest of World (comprised of Canada
and Continental Europe).
The following is a summary of third quarter and nine month
results by reportable segment:
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(dollars in
thousands)
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United
States
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United
Kingdom
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|
Rest of
World
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Corporate/
Other
|
|
Non-GAAP
Adjustments (1)
|
|
Adjusted
(1)
|
Net sales - Three
months ended 3/31/14
|
|
$
319,471
|
|
$
176,939
|
|
$
61,010
|
|
$
-
|
|
$
-
|
|
$
557,420
|
Net sales - Three
months ended 3/31/13
|
|
$
277,582
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|
$
121,162
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|
$
57,343
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|
$
-
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|
$
-
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|
$
456,087
|
% change
|
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15.1%
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46.0%
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6.4%
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22.2%
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Operating income
(loss) - Three months ended 3/31/14
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$
56,702
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$
18,366
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|
$
5,100
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$
(16,539)
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|
$
8,627
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|
$
72,256
|
Operating income
(loss) - Three months ended 3/31/13
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$
51,260
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$
8,793
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$
5,170
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$
(14,164)
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$
6,561
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$
57,620
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% change
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10.6%
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108.9%
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-1.4%
|
|
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25.4%
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Operating income
margin - Three months ended 3/31/14
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17.7%
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10.4%
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8.4%
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13.0%
|
Operating income
margin - Three months ended 3/31/13
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18.5%
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7.3%
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9.0%
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12.6%
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(dollars in
thousands)
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United
States
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United
Kingdom
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Rest of
World
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Corporate/
Other
|
|
Non-GAAP
Adjustments (1)
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Adjusted
(1)
|
Net sales - Nine
months ended 3/31/14
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$
959,191
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$
436,985
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$
173,607
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$
-
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$
-
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$
1,569,783
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Net sales - Nine
months ended 3/31/13
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$
810,644
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$
299,277
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$
161,292
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$
-
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$
-
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$
1,271,213
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% change
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18.3%
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46.0%
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7.6%
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23.5%
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Operating income
(loss) - Nine months ended 3/31/14
|
|
$
159,578
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$
32,278
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|
$
12,010
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$
(36,152)
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$
14,423
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$
182,137
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Operating income
(loss) - Nine months ended 3/31/13
|
|
$
135,359
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$
19,843
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|
$
13,844
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$
(34,467)
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$
10,977
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|
$
145,556
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% change
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17.9%
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62.7%
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-13.2%
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25.1%
|
|
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Operating income
margin - Nine months ended 3/31/14
|
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16.6%
|
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7.4%
|
|
6.9%
|
|
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11.6%
|
Operating income
margin - Nine months ended 3/31/13
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16.7%
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6.6%
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8.6%
|
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11.5%
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(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
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Webcast
Hain Celestial will host a conference call and
webcast at 8:30 AM Eastern Time today
to review its third quarter fiscal year 2014 results. The
conference call will be webcast and available under the Investor
Relations section of the Company's website at www.hain.com.
The Hain Celestial Group, Inc.
The Hain Celestial
Group (NASDAQ: HAIN), headquartered in Lake Success, NY, is a leading organic and
natural products company in North
America and Europe. 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®, 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®, 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®, GG UniqueFiber®, Tilda®, Akash Basmati®, Abu
Shmagh®, JASON®, Avalon Organics®, Alba Botanica® 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
This press release contains
forward-looking statements under the Private Securities Litigation
Reform Act of 1995. Words such as "plan," "continue,"
"expect," "expected," "anticipate," "estimate," "believe," "may,"
"potential," "can," "positioned," "should," "future," "look
forward" and similar expressions, or the negative of those
expressions, may identify forward-looking statements. These
forward-looking statements include the Company's expectations
relating to (i) opportunities ahead; (ii) productivity savings;
(iii) integration opportunities; (iv) the acquisition of Rudi's and
the potential for growth therefrom; (v) its core strategy and (vi)
the Company's guidance for net sales and earnings per diluted share
for fiscal year 2014. Forward-looking statements involve
known and unknown risks and uncertainties, which could cause the
Company's actual results to differ materially from those described
in the forward-looking statements. These factors include, but
are not limited to the Company's ability to achieve its guidance
for net sales and earnings per diluted share in fiscal year 2014
given the economic environment in the U.S. and other markets that
it sells products as well as economic, political and business
conditions generally and their effect on the Company's customers
and consumers' product preferences, and the Company's business,
financial condition and results of operations; changes in estimates
or judgments related to the Company's impairment analysis of
goodwill and other intangible assets, as well as with respect to
the Company's valuation allowances of its deferred tax assets; the
Company's ability to implement its business and acquisition
strategy; the ability of the Company's joint venture investments to
successfully execute their business plans; the Company's ability to
realize sustainable growth generally and from investments in core
brands, offering new products and its focus on cost containment,
productivity, cash flow and margin enhancement in particular; the
Company's ability to effectively integrate its acquisitions; the
Company's ability to successfully consummate its proposed
divestitures; the effects on the Company's results of operations
from the impacts of foreign exchange; competition; the success and
cost of introducing new products as well as the Company's ability
to increase prices on existing products; availability and retention
of key personnel; the Company's reliance on third party
distributors, manufacturers and suppliers; the Company's ability to
maintain existing customers and secure and integrate new customers;
the Company's ability to respond to changes and trends in customer
and consumer demand, preferences and consumption; international
sales and operations; changes in fuel, raw material and commodity
costs; changes in, or the failure to comply with, government
regulations; the availability of organic and natural ingredients;
the loss of one or more of the Company's manufacturing facilities;
the ability to use the Company's trademarks; reputational damage;
product liability; seasonality; litigation; the Company's reliance
on its information technology systems; and the other risks detailed
from time-to-time in the Company's reports filed with the
SEC, including the annual report on Form 10-K for the fiscal year
ended June 30, 2013. As a
result of the foregoing and other factors, no assurance can be
given as to future results, levels of activity and achievements 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 net income from continuing operations, adjusted
earnings per diluted share, earnings before interest, taxes,
depreciation, and amortization ("EBITDA"), adjusted EBITDA 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, 2014 and 2013 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 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 and stock based compensation. Adjusted
EBITDA is defined as net income 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 and acquisition-related expenses,
including integration and restructuring charges. 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 one of the criteria for evaluating
performance-based executive compensation.
For the three and nine months ended March
31, 2014 and 2013, EBITDA and adjusted EBITDA were
calculated as follows:
|
|
3 Months
Ended
|
9 Months
Ended
|
(dollars in
thousands)
|
3/31/2014
|
3/31/2013
|
3/31/2014
|
3/31/2013
|
Net Income
|
$35,241
|
$40,715
|
$104,127
|
$88,723
|
Income
taxes
|
19,748
|
1,610
|
48,247
|
26,052
|
Interest expense,
net
|
5,699
|
4,777
|
16,193
|
12,891
|
Depreciation and
amortization
|
12,789
|
10,529
|
34,597
|
27,522
|
Equity in earnings of
affiliates
|
(83)
|
(293)
|
(2,128)
|
(151)
|
Stock based
compensation
|
3,020
|
3,236
|
9,657
|
9,837
|
EBITDA
|
76,414
|
60,574
|
210,693
|
164,874
|
|
|
|
|
|
Acquisition related
fees and expenses,
integration and restructuring charges
|
|
|
|
|
6,883
|
3,825
|
9,885
|
8,240
|
Adjusted
EBITDA
|
$83,297
|
$64,399
|
$220,578
|
$173,114
|
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,
2014 and 2013, operating free cash flow was calculated as
follows:
|
9 Months
Ended
|
9 Months
Ended
|
3/31/2014
|
3/31/2013
|
(dollars in
thousands)
|
|
Cash flow provided by
operating activities
|
$122,281
|
$67,864
|
Purchases of
property, plant and equipment
|
(30,724)
|
(49,021)
|
|
|
|
Operating free cash
flow
|
$91,557
|
$18,843
|
Operating free cash flow increased to $91.6 million for the nine months ended
March 31, 2014 from $18.8 million in the prior year period as a
result of the increase in our net income and improved working
capital management.
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Balance Sheets
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
June
30,
|
|
|
|
2014
|
|
2013
|
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
101,422
|
|
$
41,263
|
|
Trade receivables,
net
|
302,078
|
|
233,641
|
|
Inventories
|
299,464
|
|
250,175
|
|
Deferred income
taxes
|
17,620
|
|
17,716
|
|
Other current
assets
|
44,601
|
|
32,377
|
|
|
Total current
assets
|
765,185
|
|
575,172
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
298,897
|
|
235,841
|
Goodwill,
net
|
1,096,525
|
|
876,106
|
Trademarks and other
intangible assets, net
|
609,492
|
|
498,235
|
Investments and joint
ventures
|
39,367
|
|
46,799
|
Other
assets
|
28,586
|
|
26,341
|
|
|
Total
assets
|
$
2,838,052
|
|
$
2,258,494
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
217,746
|
|
$
184,996
|
|
Accrued expenses and
other current liabilities
|
90,223
|
|
76,657
|
|
Current portion of
long-term debt
|
82,395
|
|
12,477
|
|
|
Total current
liabilities
|
390,364
|
|
274,130
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
750,331
|
|
653,464
|
Deferred income
taxes
|
134,921
|
|
114,395
|
Other noncurrent
liabilities
|
13,014
|
|
14,950
|
|
|
Total
liabilities
|
1,288,630
|
|
1,056,939
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
514
|
|
490
|
|
Additional paid-in
capital
|
957,070
|
|
768,774
|
|
Retained
earnings
|
593,894
|
|
489,767
|
|
Accumulated other
comprehensive income
|
38,034
|
|
(27,251)
|
|
Subtotal
|
1,589,512
|
|
1,231,780
|
|
Treasury
stock
|
(40,090)
|
|
(30,225)
|
|
|
Total stockholders'
equity
|
1,549,422
|
|
1,201,555
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
2,838,052
|
|
$
2,258,494
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Income
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Nine Months Ended
March 31,
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
(Unaudited)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$ 557,420
|
|
$ 456,087
|
|
$
1,569,783
|
|
$
1,271,213
|
Cost of
sales
|
|
404,627
|
|
329,924
|
|
1,154,790
|
|
919,075
|
Gross
profit
|
|
152,793
|
|
126,163
|
|
414,993
|
|
352,138
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
78,268
|
|
70,087
|
|
227,092
|
|
202,652
|
Amortization of
acquired intangibles
|
|
4,133
|
|
3,161
|
|
11,248
|
|
8,635
|
Acquisition related
expenses including integration and
restructuring
charges, net
|
|
6,763
|
|
1,856
|
|
8,939
|
|
6,272
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
63,629
|
|
51,059
|
|
167,714
|
|
134,579
|
|
|
|
|
|
|
|
|
|
Interest expense and
other expenses
|
|
5,946
|
|
7,913
|
|
15,839
|
|
15,100
|
Income before income
taxes and equity in earnings of equity-
method
investees
|
|
57,683
|
|
43,146
|
|
151,875
|
|
119,479
|
Income tax
provision
|
|
19,748
|
|
1,610
|
|
48,247
|
|
25,770
|
Income of
equity-method investees, net of tax
|
|
(83)
|
|
(293)
|
|
(2,128)
|
|
(151)
|
|
|
|
|
|
|
|
|
|
Income from
continuing operations
|
|
38,018
|
|
41,829
|
|
105,756
|
|
93,860
|
Loss from
discontinued operations, net of tax
|
|
(2,777)
|
|
(1,114)
|
|
(1,629)
|
|
(5,137)
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
35,241
|
|
$
40,715
|
|
$
104,127
|
|
$
88,723
|
|
|
|
|
|
|
|
|
|
Basic net income per
share:
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
$
0.77
|
|
$
0.90
|
|
$
2.18
|
|
$
2.05
|
From discontinued
operations
|
|
(0.06)
|
|
(0.02)
|
|
(0.03)
|
|
(0.11)
|
Net income per share
- basic
|
|
$
0.71
|
|
$
0.88
|
|
$
2.15
|
|
$
1.94
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share:
|
|
|
|
|
|
|
|
|
From continuing
operations
|
|
$
0.75
|
|
$
0.87
|
|
$
2.13
|
|
$
1.99
|
From discontinued
operations
|
|
(0.06)
|
|
(0.02)
|
|
(0.03)
|
|
(0.11)
|
Net income per share
- diluted
|
|
$
0.69
|
|
$
0.85
|
|
$
2.10
|
|
$
1.88
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
49,695
|
|
46,508
|
|
48,473
|
|
45,822
|
Diluted
|
|
50,751
|
|
47,821
|
|
49,623
|
|
47,248
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
|
2014 GAAP
|
Adjustments
|
|
2014
Adjusted
|
2013
Adjusted
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
152,793
|
$
1,096
|
|
$
153,889
|
$
128,309
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
78,268
|
(768)
|
|
77,500
|
67,528
|
Amortization of
acquired intangibles
|
|
4,133
|
-
|
|
4,133
|
3,161
|
Acquisition related
expenses including integration and
restructuring
charges, net
|
|
6,763
|
(6,763)
|
|
-
|
-
|
|
|
|
|
|
|
|
Operating
income
|
|
63,629
|
8,627
|
|
72,256
|
57,620
|
|
|
|
|
|
|
|
Interest and other
expenses, net
|
|
5,946
|
913
|
|
6,859
|
5,775
|
Income before income
taxes and equity in earnings of equity-
method
investees
|
|
57,683
|
7,714
|
|
65,397
|
51,845
|
Income tax
provision
|
|
19,748
|
1,368
|
|
21,116
|
17,790
|
(Income) of
equity-method investees, net of tax
|
|
(83)
|
(158)
|
|
(241)
|
(362)
|
Income from
continuing operations
|
|
$
38,018
|
$
6,504
|
|
$
44,522
|
$
34,417
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations - basic
|
|
$
0.77
|
$
0.13
|
|
$
0.90
|
$
0.74
|
|
|
|
|
|
|
|
Income per share from
continuing operations - diluted
|
|
$
0.75
|
$
0.13
|
|
$
0.88
|
$
0.72
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
49,695
|
|
|
49,695
|
46,508
|
Diluted
|
|
50,751
|
|
|
50,751
|
47,821
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2014
|
|
FY 2013
|
|
|
Impact on
Income
Before Income
Taxes
|
Impact on Income
Tax
Provision
|
|
Impact on Income
Before
Income
Taxes
|
Impact on Income
Tax
Provision
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Factory
start-up costs
|
|
$
977
|
$
230
|
|
$
559
|
$
190
|
Acquisition
related integration costs
|
|
119
|
27
|
|
1,587
|
413
|
Cost of
sales
|
|
1,096
|
257
|
|
2,146
|
603
|
|
|
|
|
|
|
|
Acquisition
related integration costs
|
|
-
|
-
|
|
584
|
155
|
Litigation
expenses
|
|
768
|
292
|
|
1,975
|
751
|
Selling, general and
administrative expenses
|
|
768
|
292
|
|
2,559
|
906
|
|
|
|
|
|
|
|
Acquisition
related fees and expenses, integration and restructuring
charges
|
|
6,918
|
2,481
|
|
1,856
|
432
|
Contingent
consideration (income) expense, net
|
|
(155)
|
-
|
|
-
|
-
|
Acquisition related
(income) expenses including integration and
restructuring
charges
|
|
6,763
|
2,481
|
|
1,856
|
432
|
|
|
|
|
|
|
|
Unrealized
currency impacts
|
|
(524)
|
(213)
|
|
1,882
|
713
|
Gain on
disposal of investment held for sale
|
|
(467)
|
(177)
|
|
-
|
-
|
Interest
accretion and other items, net
|
|
78
|
20
|
|
256
|
79
|
Interest and other
expenses, net
|
|
(913)
|
(370)
|
|
2,138
|
792
|
|
|
|
|
|
|
|
Net (income)
loss from Hutchison Hain Organic Holdings Limited
discontinued
operation
|
|
-
|
-
|
|
69
|
-
|
Hain Pure
Protein Corporation mortality losses
|
|
158
|
-
|
|
-
|
-
|
After-tax (income)
loss of equity-method investees
|
|
158
|
-
|
|
69
|
-
|
|
|
|
|
|
|
|
Worthless
stock tax deduction
|
|
-
|
-
|
|
-
|
13,186
|
Decrease in
unrecognized tax benefits
|
|
-
|
-
|
|
-
|
261
|
Nondeductible
acquisition related transaction expenses
|
|
-
|
(1,292)
|
|
-
|
-
|
Income tax
provision
|
|
-
|
(1,292)
|
|
-
|
13,447
|
|
|
|
|
|
|
|
Total
adjustments
|
|
$
7,872
|
$
1,368
|
|
$
8,768
|
$
16,180
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(in thousands,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31,
|
|
|
2014 GAAP
|
Adjustments
|
|
2014
Adjusted
|
2013
Adjusted
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Gross
profit
|
|
$
414,993
|
$
4,037
|
|
$
419,030
|
$
354,284
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
227,092
|
(1,447)
|
|
225,645
|
200,093
|
Amortization of
acquired intangibles
|
|
11,248
|
-
|
|
11,248
|
8,635
|
Acquisition related
expenses including integration and
restructuring
charges, net
|
|
8,939
|
(8,939)
|
|
-
|
-
|
|
|
|
|
|
|
|
Operating
income
|
|
167,714
|
14,423
|
|
182,137
|
145,556
|
|
|
|
|
|
|
|
Interest and other
expenses, net
|
|
15,839
|
3,085
|
|
18,924
|
14,216
|
Income before income
taxes and equity in earnings of equity-
method
investees
|
|
151,875
|
11,338
|
|
163,213
|
131,340
|
Income tax
provision
|
|
48,247
|
4,717
|
|
52,964
|
44,355
|
(Income) of
equity-method investees, net of tax
|
|
(2,128)
|
(158)
|
|
(2,286)
|
(1,498)
|
Income from
continuing operations
|
|
$
105,756
|
$
6,779
|
|
$
112,535
|
$
88,483
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations - basic
|
|
$
2.18
|
$
0.14
|
|
$
2.32
|
$
1.93
|
|
|
|
|
|
|
|
Income per share from
continuing operations - diluted
|
|
$
2.13
|
$
0.14
|
|
$
2.27
|
$
1.87
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
48,473
|
|
|
48,473
|
45,822
|
Diluted
|
|
49,623
|
|
|
49,623
|
47,248
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FY 2014
|
|
FY 2013
|
|
|
Impact on
Income
Before Income
Taxes
|
Impact on Income
Tax
Provision
|
|
Impact on
Income Before
Income
Taxes
|
Impact on Income
Tax
Provision
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Factory
start-up costs
|
|
$
3,120
|
$
814
|
|
$
559
|
$
190
|
Acquisition
related integration costs
|
|
480
|
109
|
|
1,587
|
413
|
Co-pack
contract termination costs
|
|
437
|
166
|
|
-
|
-
|
Cost of
sales
|
|
4,037
|
1,089
|
|
2,146
|
603
|
|
|
|
|
|
|
|
Acquisition
related integration costs
|
|
-
|
-
|
|
584
|
155
|
Litigation
expenses
|
|
1,223
|
465
|
|
1,975
|
751
|
Expenses
related to third party sale of common stock
|
|
224
|
85
|
|
-
|
-
|
Selling, general and
administrative expenses
|
|
1,447
|
550
|
|
2,559
|
906
|
|
|
|
|
|
|
|
Acquisition
related fees and expenses, integration and
restructuring
charges
|
|
10,875
|
3,795
|
|
6,272
|
1,558
|
Contingent
consideration (income) expense, net
|
|
(1,936)
|
(1,117)
|
|
-
|
-
|
Acquisition related
(income) expenses including integration and
restructuring
charges
|
|
8,939
|
2,678
|
|
6,272
|
1,558
|
|
|
|
|
|
|
|
Unrealized
currency impacts
|
|
(2,941)
|
(1,260)
|
|
1,882
|
713
|
Gain on
disposal of investment held for sale
|
|
(701)
|
(266)
|
|
-
|
-
|
Currency gain
on acquisition payment
|
|
-
|
-
|
|
(1,396)
|
(548)
|
Interest
accretion and other items, net
|
|
557
|
184
|
|
398
|
113
|
Interest and other
expenses, net
|
|
(3,085)
|
(1,342)
|
|
884
|
278
|
|
|
|
|
|
|
|
Net (income)
loss from Hutchison Hain Organic Holdings Limited
discontinued
operation
|
|
-
|
-
|
|
1,347
|
-
|
Hain Pure
Protein Corporation mortality losses
|
|
158
|
-
|
|
-
|
-
|
After-tax (income)
loss of equity-method investees
|
|
158
|
-
|
|
1,347
|
-
|
|
|
|
|
|
|
|
Worthless
stock tax deduction
|
|
-
|
-
|
|
-
|
13,186
|
Discrete tax
benefit resulting from enacted tax rate change
|
|
-
|
3,777
|
|
-
|
-
|
Decrease
(increase) in unrecognized tax benefits
|
|
-
|
(550)
|
|
-
|
2,054
|
Nondeductible
acquisition related transaction expenses
|
|
-
|
(1,485)
|
|
-
|
-
|
Income tax
provision
|
|
-
|
1,742
|
|
-
|
15,240
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
adjustments
|
|
$
11,496
|
$
4,717
|
|
$
13,208
|
$
18,585
|
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SOURCE The Hain Celestial Group, Inc.