8.9.2005: Meldung: The Hain Celestial Group, Inc.: Asian Alliance - Cash Flow Statement
Fiscal Year 2005 Operating Free Cash Flow Increases by 20% and Cash
Conversion Cycle is Reduced by 17 Days
Issues Annual Cash Flow Statement and Final June 30, 2005 Balance Sheet
Hurricane Katrina Efforts
MELVILLE, N.Y., Sept. 8 -- The Hain Celestial Group, Inc., a leading natural and organic food and personal care products company, today announced the completion of its Asian alliance with Yeo Hiap Seng Limited ("YHS"). Pursuant to the August 2005 investment agreements between Hain Celestial and YHS, the companies exchanged $2 million in equity investments in each other on September 6, 2005, resulting in the issuance of 100,482 shares of Hain Celestial common stock to YHS and the issuance of 1,326,938 ordinary shares of YHS to Hain Celestial. These investments represent the completion of the first stage of the alliance established between Hain Celestial and YHS, a Singapore based natural food and beverage company listed on the Singapore Stock Exchange. The companies are currently pursuing joint interests in marketing and distribution of food and beverages and product development.
Operating Free Cash Flow
The Company also announced that it generated Operating Free Cash Flow of $25.1 million for fiscal year 2005 achieving a 20% improvement over the prior year"s $20.9 million. The Company computes its Operating Free Cash Flow by deducting Capital Expenditures from its Cash Flow from Operations. During fiscal year 2005, Capital Expenditures amounted to $9.9 million, which when deducted from cash flow from operations of $35.0 million resulted in Operating Free Cash Flow of $25.1 million for the fiscal year compared with $20.9 million in the prior year period.
The Company"s Cash Conversion Cycle was reduced to 69 days, a 17-day reduction from the prior year period. At June 30, 2005, there were 42 days sales in the Company"s accounts receivable, 62 days in the Company"s inventories, and 35 days in the Company"s accounts payable. The improvement in these measurements resulted from the Company"s increased focus on its balance sheet introduced earlier in fiscal year 2005.
"We are very pleased with the progress we made in the first year of our intensified focus on balance sheet management and cash measurements, a process we initiated midway through our fiscal year. We succeeded in increasing our operating free cash flow by 20% and by reducing the number of days needed to generate our operating activities into cash by 17 days this year, which represents a full 20% reduction since last year. We look for continued improvements in Fiscal 2006," commented Ira J. Lamel, Chief Financial Officer of Hain Celestial.
The Company released its Statement of Cash Flows for the fiscal year 2005 and its final balance sheet reflecting minor reclassifications when compared with the balance sheet released earlier.
Fiscal Year 2006 Guidance
On September 1st, the Company announced its fiscal year 2006 guidance of $650 million to $670 million in sales and earnings of $0.98 to $1.05 per share.
Effects of Hurricane Katrina
The Company"s operations in Louisiana are operating normally after minimal disruption from the effects of Hurricane Katrina. Through its DeBoles pasta manufacturing facility in Shreveport, the Company has worked with the American Red Cross and donated over 12 truckloads of its products including baby food, cereal, juice, tea, pasta, soup, snacks, personal care items and cleaning products and coordinated the delivery of the shipments with its transportation partners.
"We wanted to reach out to those directly impacted by the horrific events of the past week in a community where we have important operations," said Irwin D. Simon, President and Chief Executive Officer of Hain Celestial. "Led by senior management at DeBoles, we coordinated a Company-wide response where our products will go to immediate use by persons displaced by Hurricane Katrina."
On September 8, 2005, the Company is scheduled to present at the Prudential Equity Group, LLC Back to School Consumer Conference.
The Hain Celestial Group
The Hain Celestial Group (Nasdaq: HAIN), headquartered in Melville, NY, is a leading natural and organic food and personal care products company in North America and Europe. Hain Celestial participates in almost all natural food categories with well-known brands that include Celestial Seasonings(R), Terra Chips(R), Garden of Eatin"(R), Health Valley(R), WestSoy(R), Earth"s Best(R), Arrowhead Mills(R), Hain Pure Foods(R), Raised Right(R), Hollywood(R), Walnut Acres Organic(R), Imagine Foods(R), Rice Dream(R), Soy Dream(R), Rosetto(R), Ethnic Gourmet(R), Yves Veggie Cuisine(R), Lima(R), Biomarche(R), Grains Noirs(R), Natumi(R), JASON(R) and Zia(R) Natural Skincare. For more information, visit http://www.hain-celestial.com.
Safe Harbor Statement
SOURCE The Hain Celestial Group, Inc.
/CONTACT: Ira Lamel or Mary Anthes, both of The Hain Celestial Group,
Inc., +1-631-730-2200; or Jeremy Fielding or David Lilly, both of Kekst and
Company, +1-212-521-4800 /
/Web site: http://www.hain-celestial.com /