Einfach E-Mail-Adresse eintragen und auf "Abschicken" klicken - willkommen!
Hain Celestial: Second Quarter Results
Die untenstehende Meldung ist eine Original-Meldung des Unternehmens. Sie ist nicht von der ECOreporter.de-Redaktion bearbeitet. Die presserechtliche Verantwortlichkeit liegt bei dem meldenden Unternehmen.
The Hain Celestial Group, Inc., a leading natural and organic products company, reported results for the second quarter ended December 31, 2008. The Company reported solid second quarter net sales of $315.6 million, a 14.2% increase over the prior year's second quarter sales of $276.2 million. Net income in the second quarter was $8.1 million on a GAAP basis and $14.9 million adjusted(1). Diluted earnings per share for the second quarter totaled $0.20 on a GAAP basis and $0.36 adjusted(1).
"In these challenging economic times, we are seeing that consumers are still health conscious and seeking natural and organic products in a variety of distribution channels. Despite a strong start in the quarter, sales moderated toward the end of the quarter with the acceleration of the economic downturn. Although there is evidence that some customers are reducing their inventories and some consumers are destocking their pantries, we continue to see growth in key categories, supported by our innovative new products," said Irwin D. Simon, President and Chief Executive Officer. "Inventory reductions, grain costs at Hain Pure Protein ("HPP") and the lag in fully realizing our August price increase impacted our earnings by almost $0.11 per share this quarter. We continue to evaluate our business while aggressively managing costs with a sharpened focus on productivity to position the Company for the difficult worldwide economic macroeconomic conditions. The work we have done in the past four years in this regard gives a strong foundation from which to implement these improvements"
Adjusted gross margin for the same brands operated by the Company (other than the Company's lower margin HPP joint venture) was 28.7% in the second quarter, versus 30.9% in the prior year quarter. Inflation in input costs caused a 458 basis point decline in gross margin with productivity improvements recouping 95 basis points. The August price increase contributed 304 basis points to gross margin. The full benefit of the price increase is expected to improve the Company's revenues and margin during the second half of the year. Increased consumer couponing negatively impacted margin by 44 basis points, and disappointing margin performance in the United Kingdom impacted margin by 95 basis points.
Despite strong holiday sales, HPP faced challenges in the protein category with increased grain costs year-over-year and the effects of an unfavorable antibiotic-free to conventional sales mix. As a result, HPP gross margin declined by 670 basis points versus the prior year quarter. The Company and HPP should benefit from lower commodity costs in the second half of the year.
Adjusted selling, general and administrative expenses declined as a percentage of sales to 15.4% in this year's quarter compared to 17.5% in the prior year quarter. This reduction comes from the Company's continued successful focus on its cost structure and from the increased scale of HPP.
Interest expense, net, was $4.1 million in the second quarter compared to $3.0 million for the prior year quarter. The Company's interest cost this year includes the cost of higher borrowings resulting from acquisitions during the prior fiscal year. Foreign exchange losses from the rapid strengthening of the U.S. dollar amounted to $1.4 million during the second quarter this year versus $0.2 million in the prior year quarter. The Company's effective tax rate for the current period increased to 38.5% to bring the full year estimated rate to 38.25%.
The Company's balance sheet remains strong, with $275.5 million in working capital and a current ratio of 3.0 at December 31, 2008. Debt as a percentage of equity was 43.9%, with equity at $729.1 million. The Company's cash conversion cycle was 80 days compared to 72 days in the prior year. Operating free cash flow in the second quarter this year was $9.4 million compared to $4.9 million in the prior year quarter. The Company's cash balance at December 31, 2008 was $50 million.
"The Company remains well-positioned for the difficult worldwide economic slowdown. As we benefit from stabilizing input costs and from pricing in the second half of the year, we'll provide market support where necessary to provide consumers with healthy, innovative products," concluded Irwin Simon.
In a separate press release issued today, the Company announced a license agreement with Martha Stewart Living Omnimedia, Inc. to produce natural home cleaning solutions, which the Company expects to introduce in the Fall of 2009.
Fiscal Year 2009 Guidance
The Company updated its fiscal year 2009 guidance to account for the rapid deceleration in global economic conditions, and now expects $1.175 to $1.20 billion in sales and $1.38 to $1.42 earnings per share. Guidance has been reset to reflect current economic conditions and may change based on future events. This earnings guidance is before deducting $0.08 per share in stock compensation expense to amortize the previous year's equity grants.
Webcast
Hain Celestial will host a conference call and webcast at 4:30 PM Eastern Standard Time today to review its second quarter fiscal year 2009 results. The event will be webcast and available under the Investor Relations section of the Company's website at www.hain-celestial.com.
The Hain Celestial Group
The Hain Celestial Group (NASDAQ: HAIN - News), 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®, Terra®, Garden of Eatin'®, Health Valley®, WestSoy®, Earth's Best®, Arrowhead Mills®, MaraNatha®, SunSpire®, DeBoles®, Hain Pure Foods®, FreeBird(TM), Plainville Farms®, Hollywood®, Spectrum Naturals®, Spectrum Essentials®, Walnut Acres Organic®, Imagine®, Rice Dream®, Soy Dream®, Rosetto®, Ethnic Gourmet®, Yves Veggie Cuisine®, Granose®, Realeat®, Linda McCartney®, Daily Bread(TM), Lima®, Grains Noirs®, Natumi®, JASON®, Zia® Natural Skincare, Avalon Organics®, Alba Botanica®, Queen Helene®, Tushies® and TenderCare®. Hain Celestial has been providing "A Healthy Way of Life(TM)" since 1993. For more information, visit www.hain-celestial.com.
Safe Harbor Statement
This press release contains forward-looking statements within and constitutes a "Safe Harbor" statement under the Private Securities Litigation Act of 1995. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve known and unknown risks and uncertainties, which could cause our actual results to differ materially from those described in the forward-looking statements. These risks include but are not limited to general economic and business conditions; our ability to implement our business and acquisition strategy; our ability to effectively integrate our acquisitions; competition; availability and retention of key personnel; our reliance on third party distributors, manufacturers and suppliers; changes in customer preferences; international sales and operations; escalating fuel and commodity costs; the resolution of the SEC inquiry and litigation regarding our stock option practices; changes in, or the failure to comply with, government regulations; and 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, 2008. 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
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 only be read in connection with the Company's condensed consolidated statements of earnings presented in accordance with GAAP.
(1) See Reconciliation of GAAP Results to Non-GAAP Presentation Table
THE HAIN CELESTIAL GROUP, INC.
Consolidated Balance Sheets
(In thousands)
December 31, June 30,
------------- ----------
2008 2008
------------- ----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $49,912 $58,513
Trade receivables, net 113,586 118,867
Inventories 212,763 175,667
Deferred income taxes 12,456 12,512
Other current assets 21,964 27,482
------------- ----------
Total current assets 410,681 393,041
Property, plant and equipment, net 143,448 159,089
Goodwill, net 529,154 550,238
Trademarks and other intangible assets,
net 142,072 136,861
Other assets 19,946 20,155
------------- ----------
Total assets $1,245,301 $1,259,384
============= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $133,953 $145,186
Income taxes payable 917 907
Current portion of long-term debt 267 222
------------- ----------
Total current liabilities 135,137 146,315
Deferred income taxes 25,023 26,524
Other noncurrent liabilities 2,127 5,012
Long-term debt, less current portion 319,608 308,220
------------- ----------
Total liabilities 481,895 486,071
Minority Interest 34,316 30,502
Stockholders' equity:
Common stock 414 411
Additional paid-in capital 497,114 488,650
Retained earnings 252,170 237,008
Treasury stock (15,517) (15,473)
Accumulated other comprehensive income
(loss) (5,091) 32,215
------------- ----------
Total stockholders' equity 729,090 742,811
------------- ----------
Total liabilities and stockholders'
equity $1,245,301 $1,259,384
============= ==========
THE HAIN CELESTIAL GROUP, INC.
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
December 31, December 31,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
(Unaudited)
Net sales $315,561 $276,233 $604,878 $513,478
Cost of sales 241,838 197,089 459,789 365,483
-------- -------- -------- --------
Gross profit 73,723 79,144 145,089 147,995
SG&A expenses 54,212 49,882 110,682 100,428
-------- -------- -------- --------
Operating income 19,511 29,262 34,407 47,567
Interest and other
expenses, net 6,284 4,312 9,853 5,271
-------- -------- -------- --------
Income before income taxes 13,227 24,950 24,554 42,296
Income tax provision 5,087 9,368 9,392 15,894
-------- -------- -------- --------
Net income $8,140 $15,582 $15,162 $26,402
======== ======== ======== ========
Basic net income per share $0.20 $0.39 $0.38 $0.66
======== ======== ======== ========
Diluted net income per share $0.20 $0.37 $0.37 $0.63
======== ======== ======== ========
Weighted average common
shares outstanding:
Basic 40,464 40,048 40,344 40,037
======== ======== ======== ========
Diluted 41,025 42,096 41,262 41,961
======== ======== ======== ========
THE HAIN CELESTIAL GROUP, INC.
Consolidated Statements of Operations With Adjustments
Reconciliation of GAAP Results to Non-GAAP Presentation
(in thousands, except per share amounts)
Three Months Ended December 31,
-----------------------------------------
2008 2008 2007
GAAP Adjustments Adjusted Adjusted
-----------------------------------------
(Unaudited)
Net sales $315,561 $315,561 $276,233
Cost of Sales 241,838 $(2,984) 238,854 195,005
-----------------------------------------
Gross profit 73,723 2,984 76,707 81,228
SG&A expenses 54,212 (5,690) 48,522 48,240
-----------------------------------------
Operating income 19,511 8,674 28,185 32,988
Interest and other expenses,
net 6,284 (1,385) 4,899 4,312
-----------------------------------------
Income before income taxes 13,227 10,059 23,286 28,676
Income tax provision 5,087 3,305 8,392 10,753
-----------------------------------------
Net income $8,140 $6,754 $14,894 $17,923
=========================================
Basic net income per share $0.20 $0.17 $0.37 $0.45
=========================================
Diluted net income per share $0.20 $0.16 $0.36 $0.43
=========================================
Weighted average common shares
outstanding:
Basic 40,464 40,464 40,048
=========================================
Diluted 41,025 41,025 42,096
=========================================
FY 2009 FY 2008
--------------------- ---------------------
Impact on Impact on
Income Impact on Income Impact on
before Income before Income
income tax income tax
taxes provision taxes provision
--------------------- ---------------------
(Unaudited)
Start-up costs at the
Fakenham manufacturing
facility related to the
integration of the
Haldane Foods frozen
meat-free operations
and, in 2009, also
includes unabsorbed
overhead resulting from
expiration of a
co-pack agreement with
prior owner $2,596 $634 $2,084 $774
Severence and other
reorganization costs 388 106
--------------------- ---------------------
Cost of sales 2,984 740 2,084 774
--------------------- ---------------------
Professional fees and
other expenses incurred
in connection with the
review of the Company's
stock option practices 1,966 699 1,747 650
Stock compensation
expense 1,480 523 (105) (39)
Legal settlement 1,350 505
Severence and other
reorganization costs 894 309
--------------------- ---------------------
SG&A expenses 5,690 2,036 1,642 611
--------------------- ---------------------
Other (income) expenses,
net 1,385 529
--------------------- ---------------------
Interest and other
expenses, net 1,385 529 - -
--------------------- ---------------------
Total adjustments $10,059 $3,305 $3,726 $1,385
===================== =====================
THE HAIN CELESTIAL GROUP, INC.
Consolidated Statements of Operations With Adjustments
Reconciliation of GAAP Results to Non-GAAP Presentation
(in thousands, except per share amounts)
Six Months Ended December 31,
-----------------------------------------
2008 2008 2007
GAAP Adjustments Adjusted Adjusted
-----------------------------------------
(Unaudited)
Net sales $604,878 $604,878 $513,478
Cost of Sales 459,789 $(6,524) 453,265 362,326
-----------------------------------------
Gross profit 145,089 6,524 151,613 151,152
SG&A expenses 110,682 (9,458) 101,224 96,100
-----------------------------------------
Operating income 34,407 15,982 50,389 55,052
Interest and other expenses, net 9,853 (1,025) 8,828 7,273
-----------------------------------------
Income before income taxes 24,554 17,007 41,561 47,779
Income tax provision 9,392 5,844 15,236 17,917
-----------------------------------------
Net income $15,162 $11,163 $26,325 $29,862
=========================================
Basic net income per share $0.38 $0.28 $0.65 $0.75
=========================================
Diluted net income per share $0.37 $0.27 $0.64 $0.71
=========================================
Weighted average common shares
outstanding:
Basic 40,344 40,344 40,037
=========================================
Diluted 41,262 41,262 41,961
=========================================
FY 2009 FY 2008
--------------------- ----------------------
Impact on Impact on
Income Impact on Income Impact on
before Income before Income
income tax income tax
taxes provision taxes provision
--------------------- ----------------------
(Unaudited)
Start-up costs at the
Fakenham manufacturing
facility related to the
integration of the
Haldane Foods frozen meat-
free operations
and, in 2009, also
includes unabsorbed
overhead resulting from
expiration of a
co-pack agreement with
prior owner $5,115 $1,433 $3,157 $1,184
Severence and other
reorganization costs 688 224
Impact of co-pack pricing
agreement related
to acquisition of turkey
processing facility 721 277
--------------------- ----------------------
Cost of sales 6,524 1,934 3,157 1,184
--------------------- ----------------------
Professional fees and
other expenses incurred
in connection with the
review of the Company's
stock option practices 3,719 1,391 4,013 1,505
Stock compensation
expense 2,897 1,083 315 118
Legal settlement 1,350 505
Severence and other
reorganization costs 1,492 540
--------------------- ----------------------
SG&A expenses 9,458 3,519 4,328 1,623
--------------------- ----------------------
Other (income) expenses,
net 1,025 391 (2,002) (784)
--------------------- ----------------------
Interest and other
expenses, net 1,025 391 (2,002) (784)
--------------------- ----------------------
Total adjustments $17,007 $5,844 $5,483 $2,023
=============================================
Source: The Hain Celestial Group, Inc.
The Hain Celestial Group, Inc., a leading natural and organic products company, reported results for the second quarter ended December 31, 2008. The Company reported solid second quarter net sales of $315.6 million, a 14.2% increase over the prior year's second quarter sales of $276.2 million. Net income in the second quarter was $8.1 million on a GAAP basis and $14.9 million adjusted(1). Diluted earnings per share for the second quarter totaled $0.20 on a GAAP basis and $0.36 adjusted(1).
"In these challenging economic times, we are seeing that consumers are still health conscious and seeking natural and organic products in a variety of distribution channels. Despite a strong start in the quarter, sales moderated toward the end of the quarter with the acceleration of the economic downturn. Although there is evidence that some customers are reducing their inventories and some consumers are destocking their pantries, we continue to see growth in key categories, supported by our innovative new products," said Irwin D. Simon, President and Chief Executive Officer. "Inventory reductions, grain costs at Hain Pure Protein ("HPP") and the lag in fully realizing our August price increase impacted our earnings by almost $0.11 per share this quarter. We continue to evaluate our business while aggressively managing costs with a sharpened focus on productivity to position the Company for the difficult worldwide economic macroeconomic conditions. The work we have done in the past four years in this regard gives a strong foundation from which to implement these improvements"
Adjusted gross margin for the same brands operated by the Company (other than the Company's lower margin HPP joint venture) was 28.7% in the second quarter, versus 30.9% in the prior year quarter. Inflation in input costs caused a 458 basis point decline in gross margin with productivity improvements recouping 95 basis points. The August price increase contributed 304 basis points to gross margin. The full benefit of the price increase is expected to improve the Company's revenues and margin during the second half of the year. Increased consumer couponing negatively impacted margin by 44 basis points, and disappointing margin performance in the United Kingdom impacted margin by 95 basis points.
Despite strong holiday sales, HPP faced challenges in the protein category with increased grain costs year-over-year and the effects of an unfavorable antibiotic-free to conventional sales mix. As a result, HPP gross margin declined by 670 basis points versus the prior year quarter. The Company and HPP should benefit from lower commodity costs in the second half of the year.
Adjusted selling, general and administrative expenses declined as a percentage of sales to 15.4% in this year's quarter compared to 17.5% in the prior year quarter. This reduction comes from the Company's continued successful focus on its cost structure and from the increased scale of HPP.
Interest expense, net, was $4.1 million in the second quarter compared to $3.0 million for the prior year quarter. The Company's interest cost this year includes the cost of higher borrowings resulting from acquisitions during the prior fiscal year. Foreign exchange losses from the rapid strengthening of the U.S. dollar amounted to $1.4 million during the second quarter this year versus $0.2 million in the prior year quarter. The Company's effective tax rate for the current period increased to 38.5% to bring the full year estimated rate to 38.25%.
The Company's balance sheet remains strong, with $275.5 million in working capital and a current ratio of 3.0 at December 31, 2008. Debt as a percentage of equity was 43.9%, with equity at $729.1 million. The Company's cash conversion cycle was 80 days compared to 72 days in the prior year. Operating free cash flow in the second quarter this year was $9.4 million compared to $4.9 million in the prior year quarter. The Company's cash balance at December 31, 2008 was $50 million.
"The Company remains well-positioned for the difficult worldwide economic slowdown. As we benefit from stabilizing input costs and from pricing in the second half of the year, we'll provide market support where necessary to provide consumers with healthy, innovative products," concluded Irwin Simon.
In a separate press release issued today, the Company announced a license agreement with Martha Stewart Living Omnimedia, Inc. to produce natural home cleaning solutions, which the Company expects to introduce in the Fall of 2009.
Fiscal Year 2009 Guidance
The Company updated its fiscal year 2009 guidance to account for the rapid deceleration in global economic conditions, and now expects $1.175 to $1.20 billion in sales and $1.38 to $1.42 earnings per share. Guidance has been reset to reflect current economic conditions and may change based on future events. This earnings guidance is before deducting $0.08 per share in stock compensation expense to amortize the previous year's equity grants.
Webcast
Hain Celestial will host a conference call and webcast at 4:30 PM Eastern Standard Time today to review its second quarter fiscal year 2009 results. The event will be webcast and available under the Investor Relations section of the Company's website at www.hain-celestial.com.
The Hain Celestial Group
The Hain Celestial Group (NASDAQ: HAIN - News), 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®, Terra®, Garden of Eatin'®, Health Valley®, WestSoy®, Earth's Best®, Arrowhead Mills®, MaraNatha®, SunSpire®, DeBoles®, Hain Pure Foods®, FreeBird(TM), Plainville Farms®, Hollywood®, Spectrum Naturals®, Spectrum Essentials®, Walnut Acres Organic®, Imagine®, Rice Dream®, Soy Dream®, Rosetto®, Ethnic Gourmet®, Yves Veggie Cuisine®, Granose®, Realeat®, Linda McCartney®, Daily Bread(TM), Lima®, Grains Noirs®, Natumi®, JASON®, Zia® Natural Skincare, Avalon Organics®, Alba Botanica®, Queen Helene®, Tushies® and TenderCare®. Hain Celestial has been providing "A Healthy Way of Life(TM)" since 1993. For more information, visit www.hain-celestial.com.
Safe Harbor Statement
This press release contains forward-looking statements within and constitutes a "Safe Harbor" statement under the Private Securities Litigation Act of 1995. Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements that involve known and unknown risks and uncertainties, which could cause our actual results to differ materially from those described in the forward-looking statements. These risks include but are not limited to general economic and business conditions; our ability to implement our business and acquisition strategy; our ability to effectively integrate our acquisitions; competition; availability and retention of key personnel; our reliance on third party distributors, manufacturers and suppliers; changes in customer preferences; international sales and operations; escalating fuel and commodity costs; the resolution of the SEC inquiry and litigation regarding our stock option practices; changes in, or the failure to comply with, government regulations; and 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, 2008. 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
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 only be read in connection with the Company's condensed consolidated statements of earnings presented in accordance with GAAP.
(1) See Reconciliation of GAAP Results to Non-GAAP Presentation Table
THE HAIN CELESTIAL GROUP, INC.
Consolidated Balance Sheets
(In thousands)
December 31, June 30,
------------- ----------
2008 2008
------------- ----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $49,912 $58,513
Trade receivables, net 113,586 118,867
Inventories 212,763 175,667
Deferred income taxes 12,456 12,512
Other current assets 21,964 27,482
------------- ----------
Total current assets 410,681 393,041
Property, plant and equipment, net 143,448 159,089
Goodwill, net 529,154 550,238
Trademarks and other intangible assets,
net 142,072 136,861
Other assets 19,946 20,155
------------- ----------
Total assets $1,245,301 $1,259,384
============= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $133,953 $145,186
Income taxes payable 917 907
Current portion of long-term debt 267 222
------------- ----------
Total current liabilities 135,137 146,315
Deferred income taxes 25,023 26,524
Other noncurrent liabilities 2,127 5,012
Long-term debt, less current portion 319,608 308,220
------------- ----------
Total liabilities 481,895 486,071
Minority Interest 34,316 30,502
Stockholders' equity:
Common stock 414 411
Additional paid-in capital 497,114 488,650
Retained earnings 252,170 237,008
Treasury stock (15,517) (15,473)
Accumulated other comprehensive income
(loss) (5,091) 32,215
------------- ----------
Total stockholders' equity 729,090 742,811
------------- ----------
Total liabilities and stockholders'
equity $1,245,301 $1,259,384
============= ==========
THE HAIN CELESTIAL GROUP, INC.
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended Six Months Ended
December 31, December 31,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
(Unaudited)
Net sales $315,561 $276,233 $604,878 $513,478
Cost of sales 241,838 197,089 459,789 365,483
-------- -------- -------- --------
Gross profit 73,723 79,144 145,089 147,995
SG&A expenses 54,212 49,882 110,682 100,428
-------- -------- -------- --------
Operating income 19,511 29,262 34,407 47,567
Interest and other
expenses, net 6,284 4,312 9,853 5,271
-------- -------- -------- --------
Income before income taxes 13,227 24,950 24,554 42,296
Income tax provision 5,087 9,368 9,392 15,894
-------- -------- -------- --------
Net income $8,140 $15,582 $15,162 $26,402
======== ======== ======== ========
Basic net income per share $0.20 $0.39 $0.38 $0.66
======== ======== ======== ========
Diluted net income per share $0.20 $0.37 $0.37 $0.63
======== ======== ======== ========
Weighted average common
shares outstanding:
Basic 40,464 40,048 40,344 40,037
======== ======== ======== ========
Diluted 41,025 42,096 41,262 41,961
======== ======== ======== ========
THE HAIN CELESTIAL GROUP, INC.
Consolidated Statements of Operations With Adjustments
Reconciliation of GAAP Results to Non-GAAP Presentation
(in thousands, except per share amounts)
Three Months Ended December 31,
-----------------------------------------
2008 2008 2007
GAAP Adjustments Adjusted Adjusted
-----------------------------------------
(Unaudited)
Net sales $315,561 $315,561 $276,233
Cost of Sales 241,838 $(2,984) 238,854 195,005
-----------------------------------------
Gross profit 73,723 2,984 76,707 81,228
SG&A expenses 54,212 (5,690) 48,522 48,240
-----------------------------------------
Operating income 19,511 8,674 28,185 32,988
Interest and other expenses,
net 6,284 (1,385) 4,899 4,312
-----------------------------------------
Income before income taxes 13,227 10,059 23,286 28,676
Income tax provision 5,087 3,305 8,392 10,753
-----------------------------------------
Net income $8,140 $6,754 $14,894 $17,923
=========================================
Basic net income per share $0.20 $0.17 $0.37 $0.45
=========================================
Diluted net income per share $0.20 $0.16 $0.36 $0.43
=========================================
Weighted average common shares
outstanding:
Basic 40,464 40,464 40,048
=========================================
Diluted 41,025 41,025 42,096
=========================================
FY 2009 FY 2008
--------------------- ---------------------
Impact on Impact on
Income Impact on Income Impact on
before Income before Income
income tax income tax
taxes provision taxes provision
--------------------- ---------------------
(Unaudited)
Start-up costs at the
Fakenham manufacturing
facility related to the
integration of the
Haldane Foods frozen
meat-free operations
and, in 2009, also
includes unabsorbed
overhead resulting from
expiration of a
co-pack agreement with
prior owner $2,596 $634 $2,084 $774
Severence and other
reorganization costs 388 106
--------------------- ---------------------
Cost of sales 2,984 740 2,084 774
--------------------- ---------------------
Professional fees and
other expenses incurred
in connection with the
review of the Company's
stock option practices 1,966 699 1,747 650
Stock compensation
expense 1,480 523 (105) (39)
Legal settlement 1,350 505
Severence and other
reorganization costs 894 309
--------------------- ---------------------
SG&A expenses 5,690 2,036 1,642 611
--------------------- ---------------------
Other (income) expenses,
net 1,385 529
--------------------- ---------------------
Interest and other
expenses, net 1,385 529 - -
--------------------- ---------------------
Total adjustments $10,059 $3,305 $3,726 $1,385
===================== =====================
THE HAIN CELESTIAL GROUP, INC.
Consolidated Statements of Operations With Adjustments
Reconciliation of GAAP Results to Non-GAAP Presentation
(in thousands, except per share amounts)
Six Months Ended December 31,
-----------------------------------------
2008 2008 2007
GAAP Adjustments Adjusted Adjusted
-----------------------------------------
(Unaudited)
Net sales $604,878 $604,878 $513,478
Cost of Sales 459,789 $(6,524) 453,265 362,326
-----------------------------------------
Gross profit 145,089 6,524 151,613 151,152
SG&A expenses 110,682 (9,458) 101,224 96,100
-----------------------------------------
Operating income 34,407 15,982 50,389 55,052
Interest and other expenses, net 9,853 (1,025) 8,828 7,273
-----------------------------------------
Income before income taxes 24,554 17,007 41,561 47,779
Income tax provision 9,392 5,844 15,236 17,917
-----------------------------------------
Net income $15,162 $11,163 $26,325 $29,862
=========================================
Basic net income per share $0.38 $0.28 $0.65 $0.75
=========================================
Diluted net income per share $0.37 $0.27 $0.64 $0.71
=========================================
Weighted average common shares
outstanding:
Basic 40,344 40,344 40,037
=========================================
Diluted 41,262 41,262 41,961
=========================================
FY 2009 FY 2008
--------------------- ----------------------
Impact on Impact on
Income Impact on Income Impact on
before Income before Income
income tax income tax
taxes provision taxes provision
--------------------- ----------------------
(Unaudited)
Start-up costs at the
Fakenham manufacturing
facility related to the
integration of the
Haldane Foods frozen meat-
free operations
and, in 2009, also
includes unabsorbed
overhead resulting from
expiration of a
co-pack agreement with
prior owner $5,115 $1,433 $3,157 $1,184
Severence and other
reorganization costs 688 224
Impact of co-pack pricing
agreement related
to acquisition of turkey
processing facility 721 277
--------------------- ----------------------
Cost of sales 6,524 1,934 3,157 1,184
--------------------- ----------------------
Professional fees and
other expenses incurred
in connection with the
review of the Company's
stock option practices 3,719 1,391 4,013 1,505
Stock compensation
expense 2,897 1,083 315 118
Legal settlement 1,350 505
Severence and other
reorganization costs 1,492 540
--------------------- ----------------------
SG&A expenses 9,458 3,519 4,328 1,623
--------------------- ----------------------
Other (income) expenses,
net 1,025 391 (2,002) (784)
--------------------- ----------------------
Interest and other
expenses, net 1,025 391 (2,002) (784)
--------------------- ----------------------
Total adjustments $17,007 $5,844 $5,483 $2,023
=============================================
Source: The Hain Celestial Group, Inc.