LAKE SUCCESS, N.Y.,
Feb. 6, 2020 /PRNewswire/ -- The
Hain Celestial Group, Inc. (Nasdaq: HAIN) ("Hain Celestial" 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, 2019. The results
contained herein are presented with the Hain Pure Protein and Tilda
operating segments being treated as discontinued operations.
Mark L. Schiller, Hain
Celestial's President and Chief Executive Officer, commented, "Our
team continues to execute on our transformational strategic plan,
as we demonstrate another quarter of operational and financial
improvement on a year-over-year basis. We have made significant
progress in a very short period of time. We are delivering on the
commitments we communicated to further simplify the portfolio and
organization, strengthen our core capabilities, expand our margins
and cash flow as well as reinvigorate profitable sales growth in a
core set of high potential brands. We remain committed to
delivering strong, consistent results for all our
stakeholders."
FINANCIAL HIGHLIGHTS1
Summary of Second Quarter Results from Continuing
Operations2
- Net sales of $506.8 million
decreased 5% on an as reported and constant currency basis compared
to the prior year period.
- When adjusted for Foreign Exchange, Divestitures and Stock
Keeping Unit ("SKU") rationalization3, net sales
decreased 1% compared to the prior year period.
- Gross margin of 20.8%, a 180 basis point increase from the
prior year period.
- Adjusted gross margin of 22.0%, a 220 basis point increase from
the prior year period.
- Operating income of $9.2 million
compared to an operating loss of $20.9
million in the prior year period.
- Adjusted operating income of $29.5
million compared to $24.4
million in the prior year period.
- Net income of $1.9 million
compared to a net loss of $31.8
million in the prior year period.
- Adjusted net income of $17.6
million compared to $13.0
million in prior year period.
- EBITDA of $24.9 million compared
to $12.2 million in the prior year
period.
- EBITDA margin of 4.9%, a 260 basis point improvement from the
prior year period.
- Adjusted EBITDA of $45.0 million
compared to $37.9 million in the
prior year period.
- Adjusted EBITDA margin of 8.9%, a 180 basis point increase
compared to the prior year period.
- Earnings per diluted share ("EPS") of $0.02 compared to a loss of $0.31 per share in the prior year period.
- Adjusted EPS of $0.17 compared to
$0.12 in the prior year period.
__________________
1 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 are
provided herein in the tables "Reconciliation of GAAP Results to
Non-GAAP Measures."
2 Unless otherwise noted all results included in
this press release are from continuing operations.
3 Refer to "Net Sales Growth at Constant Currency"
and "Adjusted for Divestitures and SKU Rationalization" provided
herein.
SEGMENT HIGHLIGHTS FROM CONTINUING OPERATIONS
Historically, the Company had three reportable segments:
United States, United Kingdom and Rest of World.
Effective July 1, 2019, the Company
reassessed its segment reporting structure, pursuant to which the
Company's Canada and Hain Ventures
operating segments, which were included within the Rest of World
reportable segment, were moved to the
United States reportable segment and renamed the
North America segment.
Additionally, the Europe operating
segment, which was included in the Rest of World reportable
segment, was combined with the United
Kingdom reportable segment and renamed the International
reportable segment. Accordingly, the Company now operates under two
reportable segments: North America
and International. Prior period segment information included herein
has been adjusted to reflect the Company's new reporting
structure.
North America
North America net sales in the
second quarter were $280.7 million, a
decrease of 8% compared to the prior year period. When adjusted for
Divestitures and SKU rationalization3, net sales
decreased 2% from the prior year period.
Segment gross profit in the second quarter was $65.0 million, a 13% increase from the
prior year period. Adjusted gross profit was $69.4 million, an increase of 14% from the prior
year period. Gross margin was 23.1%, a 430 basis point increase
from the prior year period and adjusted gross margin was 24.7%, a
480 basis point increase from the prior year.
Segment operating income in the second quarter was $20.1 million, a 110% increase from the prior
year period. Adjusted operating income was $25.0 million, a 51% increase from the prior year
period.
Segment EBITDA in the second quarter was $23.4 million, a 47% increase from the prior year
period. Adjusted EBITDA was $30.1
million, a 41% increase from the prior year period. As a
percent of sales on a constant currency basis, North America adjusted EBITDA margin was
10.7%, a 370 basis point increase from the prior year period.
International
International net sales in the second quarter were $226.1 million, a decrease of 1% from the prior
year period. When adjusted for Foreign Exchange, Divestitures and
SKU rationalization3, net sales increased 1% compared to
the prior year period.
Segment gross profit in the second quarter was $40.6 million, an 8% decrease from the
prior year period. Adjusted gross profit was $42.2 million, a decrease of 6% from the prior
year period. Gross margin was 18.0%, a 130 basis point decrease
from the prior year period and adjusted gross margin was 18.7%, a
90 basis point decrease from the prior year period.
Segment operating income in the second quarter was $12.9 million, a 15% decrease from the prior
year period. Adjusted operating income was $16.5 million, a decrease of 12% from the prior
year period.
Segment EBITDA in the second quarter was $21.6 million, a 5% decrease from the prior year
period. Adjusted EBITDA was $25.1
million, a 5% decrease from the prior year period. As a
percent of sales on a constant currency basis, International
adjusted EBITDA margin was 11.1%, a 50 basis point decrease from
the prior year period.
FISCAL YEAR 2020 GUIDANCE
The Company narrows and reaffirms its annual guidance for
continuing operations for fiscal year 2020:
|
Fiscal Year
2020
|
|
Reported
|
Constant
Currency
|
Adjusted
EBITDA
|
$177 Million to $192
Million
|
$179 Million to $194
Million
|
% Growth
|
+7% to
+16%
|
+8% to
+18%
|
Adjusted
EPS
|
$0.62 to
$0.72
|
$0.64 to
$0.74
|
% Growth
|
+3% to
+20%
|
+7% to
+23%
|
Guidance, where adjusted, is provided on a non-GAAP basis and
excludes: acquisition and divestiture related expenses; integration
charges; restructuring charges, start-up costs, consulting fees and
other costs associated with the Company's productivity and
transformation initiatives; unrealized net foreign currency gains
or losses; and other non-recurring items that may be incurred
during the Company's fiscal year 2020, which the Company will
continue to identify as it reports its future financial results.
Guidance also excludes the impact of any future acquisitions,
divestitures, or share repurchases.
The Company cannot reconcile its expected Adjusted EBITDA to net
income or adjusted earnings per diluted share to earnings per
diluted share under "Fiscal Year 2020 Guidance" without
unreasonable effort because certain items that impact net income
and other reconciling metrics are out of the Company's control
and/or cannot be reasonably predicted at this time.
Webcast Presentation
Hain Celestial will host a conference call and webcast today at
8:30 AM Eastern Time to discuss its
results and business outlook. 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 Almond Dream®, Bearitos®, Better Bean®,
BluePrint®, Casbah®, Celestial Seasonings®, Clarks™, Coconut
Dream®, Cully & Sully®, Danival®, DeBoles®, Earth's Best®,
Ella's Kitchen®, Europe's Best®,
Farmhouse Fare™, Frank Cooper's®,
Gale's®, Garden of Eatin'®, GG UniqueFiber™, Hain Pure Foods®,
Hartley's®, Health Valley®, Imagine™, Johnson's Juice Co.™, Joya®,
Lima®, Linda McCartney® (under license), MaraNatha®, Mary Berry (under license), Natumi®, New Covent
Garden Soup Co.®, Orchard House®, Rice Dream®, Robertson's®, Rudi's
Gluten-Free Bakery™, Rudi's Organic Bakery®, Sensible Portions®,
Spectrum® Organics, Soy Dream®, Sun-Pat®, Sunripe®, Terra®, The
Greek Gods®, Walnut Acres®, Yorkshire Provender®, Yves Veggie
Cuisine® and William's™. The Company's personal care products are
marketed under the Alba Botanica®, Avalon Organics®, Earth's Best®,
JASON®, Live Clean® and Queen Helene® brands.
Safe Harbor Statement
Certain statements contained in this press release constitute
"forward-looking statements" within the meaning of federal
securities laws, including the Private Securities Litigation Reform
Act of 1995. Forward-looking statements are predictions based on
expectations and projections about future events and are not
statements of historical fact. You can identify forward-looking
statements by the use of forward-looking terminology such as
"plan", "continue", "expect", "anticipate", "intend", "predict",
"project", "estimate", "likely", "believe", "might", "seek", "may",
"will", "remain", "potential", "can", "should", "could", "future"
and similar expressions, or the negative of those expressions, or
similar words or phrases that are predictions of or indicate future
events or trends and that do not relate solely to historical
matters. You can also identify forward-looking statements by
discussions of the Company's strategic initiatives, including
productivity and transformation, the Company's Guidance for Fiscal
Year 2020 and our future performance and results of operations.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
levels of activity, performance or achievements of the Company, or
industry results, to be materially different from any future
results, levels of activity, performance or achievements expressed
or implied by such forward-looking statements, and you should not
rely on them as predictions of future events. Forward-looking
statements depend on assumptions, data or methods that may be
incorrect or imprecise and may not be able to be realized. We do
not guarantee that the transactions and events described will
happen as described (or that they will happen at all). Such factors
include, among others, the impact of competitive products and
changes to the competitive environment, changes to consumer
preferences, the United Kingdom's
exit from the European Union, consolidation of customers or the
loss of a significant customer, reliance on independent
distributors, general economic and financial market conditions,
risks associated with our international sales and operations, our
ability to manage our supply chain effectively, volatility in the
cost of commodities, ingredients, freight and fuel, our ability to
execute and realize cost savings initiatives, including SKU
rationalization plans, the impact of our debt and our credit
agreements on our financial condition and our business, our ability
to manage our financial reporting and internal control system
processes, potential liabilities due to legal claims, government
investigations and other regulatory enforcement actions, costs
incurred due to pending and future litigation, potential liability,
including in connection with indemnification obligations to our
current and former officers and members of our Board of Directors
that may not be covered by insurance, potential liability if our
products cause illness or physical harm, impairments in the
carrying value of goodwill or other intangible assets, our ability
to consummate divestitures, our ability to integrate past
acquisitions, the availability of organic ingredients, disruption
of operations at our manufacturing facilities, loss of one or more
independent co-packers, disruption of our transportation systems,
risks relating to the protection of intellectual property, the risk
of liabilities and claims with respect to environmental matters,
the reputation of our brands, our reliance on independent
certification for a number of our products, and other risks
detailed from time-to-time in the Company's reports filed with the
United States Securities and Exchange Commission, including our
most recent Annual Report on Form 10-K and our subsequent reports
on Forms 10-Q and 8-K. As a result of the foregoing and other
factors, the Company cannot provide any assurance regarding future
results, levels of activity and achievements of the Company, and
neither the Company nor any person assumes responsibility for the
accuracy and completeness of these statements. All forward-looking
statements contained herein apply as of the date hereof or as of
the date they were made and, except as required by applicable law,
the Company disclaims any obligation to publicly update or revise
any forward-looking statement to reflects changes in underlying
assumptions or factors of new methods, future events or other
changes.
Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP
financial measures, including net sales adjusted for the impact of
Foreign Exchange, Divestitures and certain other items, including
SKU rationalization, as applicable in each case, adjusted operating
income, adjusted gross margin, adjusted net income, adjusted
earnings per diluted share, 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 and six months ended December
31, 2019 and 2018 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 Operations presented in accordance with
GAAP.
The Company defines Operating Free Cash Flow as cash provided by
or used in operating activities from continuing operations (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 three and six months ended December 31, 2019 and 2018, Operating Free Cash
Flow from continuing operations was calculated as follows:
|
Three Months Ended
December 31,
|
|
Six Months Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(unaudited and in
thousands)
|
|
|
|
|
|
|
|
|
Cash flow provided by
(used in) operating activities - continuing operations
|
$
20,729
|
|
$
19,566
|
|
$
17,148
|
|
$
(4)
|
Purchases of
property, plant and equipment
|
(16,173)
|
|
(18,737)
|
|
(29,337)
|
|
(40,998)
|
Operating Free Cash
Flow - continuing operations
|
$
4,556
|
|
$
829
|
|
$
(12,189)
|
|
$
(41,002)
|
The Company's Operating Free Cash Flow from continuing
operations was $4.6 million for the
three months ended December 31, 2019,
an increase of $3.7 million from the
three months ended December 31, 2018.
The Company's Operating Free Cash Flow from continuing operations
was negative $12.2 million for the
six months ended December 31, 2019,
an increase of $28.8 million from the
six months ended December 31, 2018.
The improvement in operating free cash flow resulted primarily from
an improvement in net loss adjusted for non-cash charges in the
current year and a decrease in capital expenditures.
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 constant currency,
divestitures, and certain other items including SKU
rationalization, as applicable in each case, 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 EBITDA as net income (loss) from continuing
operations (a GAAP measure) before income taxes, net interest
expense, depreciation and amortization, equity in net loss of
equity-method investees, stock-based compensation, net, stock-based
compensation expense in connection with the Company's Former CEO
succession plan, long-lived asset and intangible impairments and
unrealized currency gains and losses. The Company defines segment
EBITDA as operating income (a GAAP measure) before depreciation and
amortization, stock-based compensation, net and long-lived asset
impairments. Adjusted EBITDA is defined as EBITDA before
divestiture related expenses, including integration and
restructuring charges, 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.
For the three and six months ended December 31, 2019 and 2018, EBITDA and Adjusted
EBITDA from continuing operations was calculated as follows:
|
Three Months Ended
December 31,
|
|
Six Months Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
(unaudited and in
thousands)
|
|
|
|
|
|
|
|
|
Net loss
|
$
(964)
|
|
$
(66,501)
|
|
$
(107,985)
|
|
$
(103,926)
|
Net loss from
discontinued operations
|
(2,816)
|
|
(34,714)
|
|
(104,884)
|
|
(49,052)
|
Net income (loss)
from continuing operations
|
$
1,852
|
|
$
(31,787)
|
|
$
(3,101)
|
|
$
(54,874)
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
1,020
|
|
5,097
|
|
489
|
|
(4,869)
|
Interest expense,
net
|
4,000
|
|
4,884
|
|
8,552
|
|
8,688
|
Depreciation and
amortization
|
13,219
|
|
12,205
|
|
27,142
|
|
25,065
|
Equity in net loss of
equity-method investees
|
338
|
|
11
|
|
655
|
|
186
|
Stock-based
compensation, net
|
3,083
|
|
1,776
|
|
5,820
|
|
1,562
|
Stock-based
compensation expense in connection with
Chief Executive Officer Succession Agreement
|
-
|
|
117
|
|
-
|
|
429
|
Long-lived asset and
intangibles impairment
|
1,889
|
|
19,473
|
|
1,889
|
|
23,709
|
Unrealized currency
(gains) losses
|
(485)
|
|
439
|
|
1,199
|
|
1,029
|
EBITDA
|
$
24,916
|
|
$
12,215
|
|
$
42,645
|
|
$
925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Productivity and
transformation costs
|
12,260
|
|
9,872
|
|
26,435
|
|
20,205
|
Chief Executive
Officer Succession Plan expense, net
|
-
|
|
10,031
|
|
-
|
|
29,272
|
Proceeds from
insurance claim
|
-
|
|
-
|
|
(2,562)
|
|
-
|
Accounting review and
remediation costs, net of
insurance proceeds
|
-
|
|
920
|
|
-
|
|
4,334
|
SKU
rationalization
|
3,927
|
|
1,530
|
|
3,916
|
|
1,530
|
Loss on sale of
business
|
1,783
|
|
-
|
|
1,783
|
|
-
|
Plant closure related
costs
|
1,522
|
|
1,490
|
|
2,354
|
|
3,319
|
Warehouse/manufacturing facility start-up
costs
|
639
|
|
1,708
|
|
2,518
|
|
6,307
|
Litigation and
related expenses
|
-
|
|
122
|
|
48
|
|
691
|
Adjusted
EBITDA
|
$
45,047
|
|
$
37,888
|
|
$
77,137
|
|
$
66,583
|
THE HAIN CELESTIAL
GROUP, INC.
|
Net Sales, Gross
Profit and Operating Income (Loss) by Segment
|
(unaudited and
in thousands)
|
|
|
|
|
|
|
North
America
|
International
|
Corporate/Other
|
Total
|
Net
Sales
|
|
|
|
|
Net sales - Three
months ended 12/31/19
|
$
280,693
|
$
226,091
|
$
-
|
$
506,784
|
Net sales - Three
months ended 12/31/18
|
$
305,574
|
$
227,992
|
$
-
|
$
533,566
|
% change - FY'20 net
sales vs. FY'19 net sales
|
(8.1)%
|
(0.8)%
|
|
(5.0)%
|
|
|
|
|
|
Gross
Profit
|
|
|
|
|
Three months ended
12/31/19
|
|
|
|
|
Gross
profit
|
$
64,969
|
$
40,638
|
$
-
|
$
105,607
|
Non-GAAP adjustments
(1)
|
4,439
|
1,590
|
-
|
6,029
|
Adjusted gross
profit
|
$
69,408
|
$
42,228
|
$
-
|
$
111,636
|
Gross
margin
|
23.1%
|
18.0%
|
|
20.8%
|
Adjusted gross
margin
|
24.7%
|
18.7%
|
|
22.0%
|
|
|
|
|
|
Three months ended
12/31/18
|
|
|
|
|
Gross
profit
|
$
57,410
|
$
43,941
|
$
-
|
$
101,351
|
Non-GAAP adjustments
(1)
|
3,470
|
824
|
-
|
4,294
|
Adjusted gross
profit
|
$
60,880
|
$
44,765
|
$
-
|
$
105,645
|
Gross
margin
|
18.8%
|
19.3%
|
|
19.0%
|
Adjusted gross
margin
|
19.9%
|
19.6%
|
|
19.8%
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
Three months ended
12/31/19
|
|
|
|
|
Operating income
(loss)
|
$
20,062
|
$
12,899
|
$
(23,770)
|
$
9,191
|
Non-GAAP adjustments
(1)
|
4,965
|
3,647
|
11,729
|
20,341
|
Adjusted operating
income (loss)
|
$
25,027
|
$
16,546
|
$
(12,041)
|
$
29,532
|
Operating income
margin
|
7.1%
|
5.7%
|
|
1.8%
|
Adjusted operating
income margin
|
8.9%
|
7.3%
|
|
5.8%
|
|
|
|
|
|
Three months ended
12/31/18
|
|
|
|
|
Operating income
(loss)
|
$
9,563
|
$
15,153
|
$
(45,596)
|
$
(20,880)
|
Non-GAAP adjustments
(1)
|
6,995
|
3,644
|
34,624
|
45,263
|
Adjusted operating
income (loss)
|
$
16,558
|
$
18,797
|
$
(10,972)
|
$
24,383
|
Operating income
(loss) margin
|
3.1%
|
6.6%
|
|
(3.9)%
|
Adjusted operating
income margin
|
5.4%
|
8.2%
|
|
4.6%
|
|
|
|
|
|
(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
|
THE HAIN CELESTIAL
GROUP, INC.
|
Net Sales, Gross
Profit and Operating Income (Loss) by Segment
|
(unaudited and
in thousands)
|
|
|
|
|
|
|
North
America
|
International
|
Corporate/Other
|
Total
|
Net
Sales
|
|
|
|
|
Net sales - Six
months ended 12/31/19
|
$
552,394
|
$
436,466
|
$
-
|
$
988,860
|
Net sales - Six
months ended 12/31/18
|
$
596,765
|
$
455,279
|
$
-
|
$
1,052,044
|
% change - FY'20 net
sales vs. FY'19 net sales
|
(7.4)%
|
(4.1)%
|
|
(6.0)%
|
|
|
|
|
|
Gross
Profit
|
|
|
|
|
Six months ended
12/31/19
|
|
|
|
|
Gross
profit
|
$
127,330
|
$
76,108
|
$
-
|
$
203,438
|
Non-GAAP adjustments
(1)
|
6,164
|
2,666
|
-
|
8,830
|
Adjusted gross
profit
|
$
133,494
|
$
78,774
|
$
-
|
$
212,268
|
Gross
margin
|
23.1%
|
17.4%
|
|
20.6%
|
Adjusted gross
margin
|
24.2%
|
18.0%
|
|
21.5%
|
|
|
|
|
|
Six months ended
12/31/18
|
|
|
|
|
Gross
profit
|
$
107,034
|
$
83,225
|
$
-
|
$
190,259
|
Non-GAAP adjustments
(1)
|
8,799
|
2,357
|
-
|
11,156
|
Adjusted gross
profit
|
$
115,833
|
$
85,582
|
$
-
|
$
201,415
|
Gross
margin
|
17.9%
|
18.3%
|
|
18.1%
|
Adjusted gross
margin
|
19.4%
|
18.8%
|
|
19.1%
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
Six months ended
12/31/19
|
|
|
|
|
Operating income
(loss)
|
$
35,194
|
$
22,006
|
$
(45,554)
|
$
11,646
|
Non-GAAP adjustments
(1)
|
8,861
|
5,991
|
19,951
|
34,803
|
Adjusted operating
income (loss)
|
$
44,055
|
$
27,997
|
$
(25,603)
|
$
46,449
|
Operating income
margin
|
6.4%
|
5.0%
|
|
1.2%
|
Adjusted operating
income margin
|
8.0%
|
6.4%
|
|
4.7%
|
|
|
|
|
|
Six months ended
12/31/18
|
|
|
|
|
Operating income
(loss)
|
$
14,069
|
$
20,813
|
$
(83,726)
|
$
(48,844)
|
Non-GAAP adjustments
(1)
|
13,821
|
10,290
|
66,119
|
90,230
|
Adjusted operating
income (loss)
|
$
27,890
|
$
31,103
|
$
(17,607)
|
$
41,386
|
Operating income
(loss) margin
|
2.4%
|
4.6%
|
|
(4.6)%
|
Adjusted operating
income margin
|
4.7%
|
6.8%
|
|
3.9%
|
|
|
|
|
|
(1) See
accompanying table of "Reconciliation of GAAP Results to Non-GAAP
Measures"
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Balance Sheets
|
(unaudited and
in thousands)
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
June
30,
|
|
|
|
2019
|
|
2019
|
ASSETS
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
37,024
|
|
$
31,017
|
|
Accounts receivable,
net
|
206,583
|
|
209,990
|
|
Inventories
|
283,127
|
|
299,341
|
|
Prepaid expenses and
other current assets
|
50,019
|
|
51,391
|
|
Current assets of
discontinued operations
|
-
|
|
110,048
|
|
Total current
assets
|
576,753
|
|
701,787
|
Property, plant and
equipment, net
|
298,558
|
|
287,845
|
Goodwill
|
|
879,705
|
|
875,881
|
Trademarks and other
intangible assets, net
|
378,796
|
|
380,286
|
Investments and joint
ventures
|
18,990
|
|
18,890
|
Operating lease right
of use assets
|
83,845
|
|
-
|
Other
assets
|
48,298
|
|
58,764
|
Noncurrent assets of
discontinued operations
|
-
|
|
259,167
|
|
Total
assets
|
$
2,284,945
|
|
$
2,582,620
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
187,376
|
|
$
219,957
|
|
Accrued expenses and
other current liabilities
|
123,272
|
|
114,265
|
|
Current portion of
long-term debt
|
1,387
|
|
17,232
|
|
Current liabilities
of discontinued operations
|
-
|
|
31,703
|
|
Total current
liabilities
|
312,035
|
|
383,157
|
Long-term debt, less
current portion
|
324,864
|
|
613,537
|
Deferred income
taxes
|
35,012
|
|
34,757
|
Operating lease
liabilities, noncurrent portion
|
76,726
|
|
-
|
Other noncurrent
liabilities
|
15,225
|
|
14,489
|
Noncurrent
liabilities of discontinued operations
|
-
|
|
17,361
|
Total
liabilities
|
763,862
|
|
1,063,301
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
1,091
|
|
1,088
|
|
Additional paid-in
capital
|
1,164,618
|
|
1,158,257
|
|
Retained
earnings
|
586,593
|
|
695,017
|
|
Accumulated other
comprehensive loss
|
(120,197)
|
|
(225,004)
|
|
|
|
1,632,105
|
|
1,629,358
|
|
Treasury
stock
|
(111,022)
|
|
(110,039)
|
|
Total stockholders'
equity
|
1,521,083
|
|
1,519,319
|
|
Total liabilities and
stockholders' equity
|
$
2,284,945
|
|
$
2,582,620
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Operations
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Six Months Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Net sales
|
$
506,784
|
|
$
533,566
|
|
$
988,860
|
|
$
1,052,044
|
Cost of
sales
|
401,177
|
|
432,215
|
|
785,422
|
|
861,785
|
Gross
profit
|
105,607
|
|
101,351
|
|
203,438
|
|
190,259
|
Selling, general and
administrative expenses
|
79,078
|
|
78,496
|
|
159,758
|
|
154,473
|
Amortization of
acquired intangibles
|
3,189
|
|
3,322
|
|
6,272
|
|
6,681
|
Productivity and
transformation costs
|
12,260
|
|
9,872
|
|
26,435
|
|
20,205
|
Chief Executive
Officer Succession Plan expense, net
|
-
|
|
10,148
|
|
-
|
|
29,701
|
Proceeds from
insurance claim
|
-
|
|
-
|
|
(2,562)
|
|
-
|
Accounting review and
remediation costs, net of insurance
proceeds
|
-
|
|
920
|
|
-
|
|
4,334
|
Long-lived asset and
intangibles impairment
|
1,889
|
|
19,473
|
|
1,889
|
|
23,709
|
Operating income
(loss)
|
9,191
|
|
(20,880)
|
|
11,646
|
|
(48,844)
|
Interest and other
financing expense, net
|
4,737
|
|
5,428
|
|
11,031
|
|
9,742
|
Other expense,
net
|
1,244
|
|
371
|
|
2,572
|
|
971
|
Income (loss) from
continuing operations before income taxes
and equity in net loss of equity-method investees
|
3,210
|
|
(26,679)
|
|
(1,957)
|
|
(59,557)
|
Provision (benefit)
for income taxes
|
1,020
|
|
5,097
|
|
489
|
|
(4,869)
|
Equity in net loss of
equity-method investees
|
338
|
|
11
|
|
655
|
|
186
|
Net
income (loss) from continuing operations
|
$
1,852
|
|
$
(31,787)
|
|
$
(3,101)
|
|
$
(54,874)
|
Net loss
from discontinued operations, net of tax
|
(2,816)
|
|
(34,714)
|
|
(104,884)
|
|
(49,052)
|
Net loss
|
$
(964)
|
|
$
(66,501)
|
|
$
(107,985)
|
|
$
(103,926)
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share:
|
|
|
|
|
|
|
|
Basic net income
(loss) per common share from continuing
operations
|
$
0.02
|
|
$
(0.31)
|
|
$
(0.03)
|
|
$
(0.53)
|
Basic net loss per
common share from discontinued
operations
|
(0.03)
|
|
(0.33)
|
|
(1.01)
|
|
(0.47)
|
Basic
net loss per common share
|
$
(0.01)
|
|
$
(0.64)
|
|
$
(1.04)
|
|
$
(1.00)
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per common share from
continuing operations
|
$
0.02
|
|
$
(0.31)
|
|
$
(0.03)
|
|
$
(0.53)
|
Diluted net loss per
common share from discontinued
operations
|
(0.03)
|
|
(0.33)
|
|
(1.01)
|
|
(0.47)
|
Diluted
net loss per common share
|
$
(0.01)
|
|
$
(0.64)
|
|
$
(1.04)
|
|
$
(1.00)
|
|
|
|
|
|
|
|
|
Shares used in the
calculation of net income (loss) per common share:
|
|
|
|
|
|
|
Basic
|
104,318
|
|
104,056
|
|
104,272
|
|
104,009
|
Diluted
|
104,619
|
|
104,056
|
|
104,272
|
|
104,009
|
THE HAIN CELESTIAL
GROUP, INC.
|
Consolidated
Statements of Cash Flows
|
(unaudited and in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
Six Months Ended
December 31,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
Net loss
|
$
(964)
|
|
$
(66,501)
|
|
$
(107,985)
|
|
$
(103,926)
|
Net loss
from discontinued operations
|
(2,816)
|
|
(34,714)
|
|
(104,884)
|
|
(49,052)
|
Net
income (loss) from continuing operations
|
1,852
|
|
(31,787)
|
|
(3,101)
|
|
(54,874)
|
Adjustments to
reconcile net income (loss) from continuing operations to net cash
provided
by (used in) operating activities from continuing
operations:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
13,219
|
|
12,205
|
|
27,142
|
|
25,065
|
Deferred income
taxes
|
(751)
|
|
(9,448)
|
|
(5,155)
|
|
(22,666)
|
Chief Executive
Officer Succession Plan expense, net
|
-
|
|
10,031
|
|
-
|
|
29,272
|
Equity in net loss of
equity-method investees
|
338
|
|
11
|
|
655
|
|
186
|
Stock-based
compensation, net
|
3,083
|
|
1,893
|
|
5,820
|
|
1,991
|
Long-lived asset and
intangibles impairment
|
1,889
|
|
19,473
|
|
1,889
|
|
23,709
|
Other non-cash items,
net
|
897
|
|
444
|
|
2,661
|
|
1,285
|
Increase (decrease)
in cash attributable to changes in operating assets and
liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable
|
8,393
|
|
5,774
|
|
7,540
|
|
9,540
|
Inventories
|
14,896
|
|
12,892
|
|
9,389
|
|
(5,748)
|
Other current
assets
|
(12,328)
|
|
(1,531)
|
|
1,895
|
|
(1,528)
|
Other assets and
liabilities
|
(1,386)
|
|
4,626
|
|
(1,242)
|
|
4,594
|
Accounts payable and
accrued expenses
|
(9,373)
|
|
(5,017)
|
|
(30,345)
|
|
(10,830)
|
Net cash provided by
(used in) operating activities - continuing operations
|
20,729
|
|
19,566
|
|
17,148
|
|
(4)
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(16,173)
|
|
(18,737)
|
|
(29,337)
|
|
(40,998)
|
Proceeds from sale of
businesses and other
|
13,120
|
|
4,515
|
|
13,120
|
|
3,863
|
Net cash used in
investing activities - continuing operations
|
(3,053)
|
|
(14,222)
|
|
(16,217)
|
|
(37,135)
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
Borrowings under bank
revolving credit facility
|
67,000
|
|
80,000
|
|
147,000
|
|
150,000
|
Repayments under bank
revolving credit facility
|
(67,000)
|
|
(77,646)
|
|
(245,500)
|
|
(137,646)
|
Repayments under term
loan
|
-
|
|
(3,750)
|
|
(206,250)
|
|
(7,500)
|
(Funding of) proceeds
from discontinued operations entities
|
(2,266)
|
|
16,661
|
|
309,929
|
|
13,550
|
(Repayments)
borrowings of other debt, net
|
(510)
|
|
175
|
|
(501)
|
|
(601)
|
Shares withheld for
payment of employee payroll taxes
|
(672)
|
|
(1,943)
|
|
(984)
|
|
(2,922)
|
Net cash (used in)
provided by financing activities - continuing operations
|
(3,448)
|
|
13,497
|
|
3,694
|
|
14,881
|
Effect of exchange
rate changes on cash - continuing operations
|
2,274
|
|
(822)
|
|
1,382
|
|
(1,492)
|
CASH FLOWS FROM
DISCONTINUED OPERATIONS
|
|
|
|
|
|
|
|
Cash provided by
(used in) operating activities
|
2,339
|
|
11,728
|
|
(5,687)
|
|
(2,859)
|
Cash (used in)
provided by investing activities
|
(4,605)
|
|
(1,551)
|
|
301,815
|
|
(3,472)
|
Cash provided by
(used in) financing activities
|
2,266
|
|
(9,965)
|
|
(304,100)
|
|
(4,417)
|
Effect of exchange
rate changes on cash - discontinued operations
|
-
|
|
(87)
|
|
(537)
|
|
(477)
|
Net cash flows
provided by (used in) discontinued operations
|
-
|
|
125
|
|
(8,509)
|
|
(11,225)
|
Net increase
(decrease) in cash and cash equivalents
|
16,502
|
|
18,144
|
|
(2,502)
|
|
(34,975)
|
Cash and cash
equivalents at beginning of period
|
20,522
|
|
59,899
|
|
39,526
|
|
113,018
|
Cash and cash
equivalents and restricted cash at end of period
|
$
37,024
|
|
$
78,043
|
|
$
37,024
|
|
$
78,043
|
Less: cash and cash
equivalents of discontinued operations
|
-
|
|
(17,098)
|
|
-
|
|
(17,098)
|
Cash and cash
equivalents and restricted cash of continuing operations at end of
period
|
$
37,024
|
|
$
60,945
|
|
$
37,024
|
|
$
60,945
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31,
|
|
2019
GAAP
|
Adjustments
|
2019
Adjusted
|
|
2018
GAAP
|
Adjustments
|
2018
Adjusted
|
|
|
|
|
|
|
|
|
Net sales
|
$
506,784
|
-
|
$
506,784
|
|
$
533,566
|
-
|
$
533,566
|
Cost of
sales
|
401,177
|
(6,029)
|
395,148
|
|
432,215
|
(4,294)
|
427,921
|
Gross
profit
|
105,607
|
6,029
|
111,636
|
|
101,351
|
4,294
|
105,645
|
Operating expenses
(a)
|
84,156
|
(2,052)
|
82,104
|
|
101,291
|
(20,029)
|
81,262
|
Productivity and
transformation costs
|
12,260
|
(12,260)
|
-
|
|
9,872
|
(9,872)
|
-
|
Chief Executive
Officer Succession Plan expense, net
|
-
|
-
|
-
|
|
10,148
|
(10,148)
|
-
|
Accounting review and
remediation costs, net of insurance proceeds
|
-
|
-
|
-
|
|
920
|
(920)
|
-
|
Operating income
(loss)
|
9,191
|
20,341
|
29,532
|
|
(20,880)
|
45,263
|
24,383
|
Interest and other
expense (income), net (b)
|
5,981
|
(1,298)
|
4,683
|
|
5,799
|
(439)
|
5,360
|
Provision (benefit)
for income taxes
|
1,020
|
5,889
|
6,909
|
|
5,097
|
934
|
6,031
|
Net
income (loss) from continuing operations
|
1,852
|
15,750
|
17,602
|
|
(31,787)
|
44,768
|
12,981
|
Net
(loss) income from discontinued operations, net of tax
|
(2,816)
|
2,816
|
-
|
|
(34,714)
|
34,714
|
-
|
Net (loss)
income
|
(964)
|
18,566
|
17,602
|
|
(66,501)
|
79,482
|
12,981
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per common share from continuing operations
|
0.02
|
0.15
|
0.17
|
|
(0.31)
|
0.43
|
0.12
|
Diluted net (loss)
income per common share from discontinued operations
|
(0.03)
|
0.03
|
-
|
|
(0.33)
|
0.33
|
-
|
Diluted
net (loss) income per common share
|
(0.01)
|
0.18
|
0.17
|
|
(0.64)
|
0.76
|
0.12
|
|
|
|
|
|
|
|
|
Detail of
Adjustments:
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31, 2019
|
|
|
|
Three Months
Ended
December 31, 2018
|
|
SKU
rationalization
|
|
$
3,927
|
|
|
|
$
1,530
|
|
Plant closure related
costs
|
|
1,626
|
|
|
|
1,056
|
|
Warehouse/manufacturing facility start-up
costs
|
|
476
|
|
|
|
1,708
|
|
Cost of
sales
|
|
6,029
|
|
|
|
4,294
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
6,029
|
|
|
|
4,294
|
|
|
|
|
|
|
|
|
|
Intangibles
impairment
|
|
1,889
|
|
|
|
17,900
|
|
Warehouse/manufacturing facility start-up
costs
|
|
163
|
|
|
|
-
|
|
Litigation and
related expenses
|
|
-
|
|
|
|
122
|
|
Long-lived asset
impairment charge associated with plant closure
|
|
-
|
|
|
|
1,573
|
|
Plant closure related
costs
|
|
-
|
|
|
|
434
|
|
Operating expenses
(a)
|
|
2,052
|
|
|
|
20,029
|
|
|
|
|
|
|
|
|
|
Productivity and
transformation costs
|
|
12,260
|
|
|
|
9,872
|
|
Productivity and
transformation costs
|
|
12,260
|
|
|
|
9,872
|
|
|
|
|
|
|
|
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
-
|
|
|
|
10,148
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
-
|
|
|
|
10,148
|
|
|
|
|
|
|
|
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
-
|
|
|
|
920
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
-
|
|
|
|
920
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
20,341
|
|
|
|
45,263
|
|
|
|
|
|
|
|
|
|
Unrealized currency
(gains) losses
|
|
(485)
|
|
|
|
439
|
|
Loss on sale of
business
|
|
1,783
|
|
|
|
-
|
|
Interest and other
expense (income), net (b)
|
|
1,298
|
|
|
|
439
|
|
|
|
|
|
|
|
|
|
Income tax related
adjustments
|
|
(5,889)
|
|
|
|
(934)
|
|
Provision (benefit)
for income taxes
|
|
(5,889)
|
|
|
|
(934)
|
|
|
|
|
|
|
|
|
|
Net
income (loss) from continuing operations
|
|
$
15,750
|
|
|
|
$
44,768
|
|
|
|
|
|
|
|
|
|
(a)Operating expenses include amortization
of acquired intangibles, selling, general, and administrative
expenses and long-lived asset and intangibles
impairment.
|
|
(b)Interest and other expense, net
includes interest and other financing expenses, net and other
expense, net.
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Six Months Ended
December 31,
|
|
2019
GAAP
|
Adjustments
|
2019
Adjusted
|
|
2018
GAAP
|
Adjustments
|
2018
Adjusted
|
|
|
|
|
|
|
|
|
Net sales
|
$
988,860
|
-
|
$
988,860
|
|
$
1,052,044
|
-
|
$
1,052,044
|
Cost of
sales
|
785,422
|
(8,830)
|
776,592
|
|
861,785
|
(11,156)
|
850,629
|
Gross
profit
|
203,438
|
8,830
|
212,268
|
|
190,259
|
11,156
|
201,415
|
Operating expenses
(a)
|
167,919
|
(2,100)
|
165,819
|
|
184,863
|
(24,834)
|
160,029
|
Productivity and
transformation costs
|
26,435
|
(26,435)
|
-
|
|
20,205
|
(20,205)
|
-
|
Chief Executive
Officer Succession Plan expense, net
|
-
|
-
|
-
|
|
29,701
|
(29,701)
|
-
|
Proceeds from
insurance claim
|
(2,562)
|
2,562
|
-
|
|
-
|
-
|
-
|
Accounting review and
remediation costs, net of insurance proceeds
|
-
|
-
|
-
|
|
4,334
|
(4,334)
|
-
|
Operating income
(loss)
|
11,646
|
34,803
|
46,449
|
|
(48,844)
|
90,230
|
41,386
|
Interest and other
expense (income), net (b)
|
13,603
|
(3,957)
|
9,646
|
|
10,713
|
(1,029)
|
9,684
|
Provision (benefit)
for income taxes
|
489
|
9,689
|
10,178
|
|
(4,869)
|
14,401
|
9,532
|
Net
(loss) income from continuing operations
|
(3,101)
|
29,071
|
25,970
|
|
(54,874)
|
76,858
|
21,984
|
Net
(loss) income from discontinued operations, net of tax
|
(104,884)
|
104,884
|
-
|
|
(49,052)
|
49,052
|
-
|
Net (loss)
income
|
(107,985)
|
133,955
|
25,970
|
|
(103,926)
|
125,910
|
21,984
|
|
|
|
|
|
|
|
|
Diluted net (loss)
income per common share from continuing operations
|
(0.03)
|
0.28
|
0.25
|
|
(0.53)
|
0.74
|
0.21
|
Diluted net (loss)
income per common share from discontinued operations
|
(1.01)
|
1.01
|
-
|
|
(0.47)
|
0.47
|
-
|
Diluted
net (loss) income per common share
|
(1.04)
|
1.28
|
0.25
|
|
(1.00)
|
1.21
|
0.21
|
|
|
|
|
|
|
|
|
Detail of
Adjustments:
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
December 31, 2019
|
|
|
|
Six Months
Ended
December 31, 2018
|
|
SKU
rationalization
|
|
$
3,916
|
|
|
|
$
1,530
|
|
Plant closure related
costs
|
|
2,559
|
|
|
|
3,319
|
|
Warehouse/manufacturing facility start-up
costs
|
|
2,355
|
|
|
|
6,307
|
|
Cost of
sales
|
|
8,830
|
|
|
|
11,156
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
8,830
|
|
|
|
11,156
|
|
|
|
|
|
|
|
|
|
Intangibles
impairment
|
|
1,889
|
|
|
|
17,900
|
|
Warehouse/manufacturing facility start-up
costs
|
|
163
|
|
|
|
-
|
|
Litigation and
related expenses
|
|
48
|
|
|
|
691
|
|
Long-lived asset
impairment charge associated with plant closure
|
|
-
|
|
|
|
5,809
|
|
Plant closure related
costs
|
|
-
|
|
|
|
434
|
|
Operating expenses
(a)
|
|
2,100
|
|
|
|
24,834
|
|
|
|
|
|
|
|
|
|
Productivity and
transformation costs
|
|
26,435
|
|
|
|
20,205
|
|
Productivity and
transformation costs
|
|
26,435
|
|
|
|
20,205
|
|
|
|
|
|
|
|
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
-
|
|
|
|
29,701
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
-
|
|
|
|
29,701
|
|
|
|
|
|
|
|
|
|
Proceeds from
insurance claim
|
|
(2,562)
|
|
|
|
-
|
|
Proceeds from
insurance claim
|
|
(2,562)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
-
|
|
|
|
4,334
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
|
-
|
|
|
|
4,334
|
|
|
|
|
|
|
|
|
|
Operating income
(loss)
|
|
34,803
|
|
|
|
90,230
|
|
|
|
|
|
|
|
|
|
Loss on sale of
business
|
|
1,783
|
|
|
|
-
|
|
Unrealized currency
losses
|
|
1,199
|
|
|
|
1,029
|
|
Deferred financing
cost write-off
|
|
975
|
|
|
|
-
|
|
Interest and other
expense (income), net (b)
|
|
3,957
|
|
|
|
1,029
|
|
|
|
|
|
|
|
|
|
Income tax related
adjustments
|
|
(9,689)
|
|
|
|
(14,401)
|
|
Provision (benefit)
for income taxes
|
|
(9,689)
|
|
|
|
(14,401)
|
|
|
|
|
|
|
|
|
|
Net
(loss) income from continuing operations
|
|
$
29,071
|
|
|
|
$
76,858
|
|
|
|
|
|
|
|
|
|
(a)Operating expenses include amortization
of acquired intangibles, selling, general, and administrative
expenses and long-lived asset and intangibles
impairment.
|
(b)Interest and other expense, net
includes interest and other financing expenses, net and other
expense, net.
|
THE HAIN CELESTIAL
GROUP, INC.
|
Net Sales Growth
at Constant Currency
|
(unaudited and in
thousands)
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
North
America
|
|
International
|
Net sales -
Three months ended 12/31/19
|
$
506,784
|
|
$
280,693
|
|
$
226,091
|
Impact of
foreign currency exchange
|
2,012
|
|
(69)
|
|
2,081
|
Net sales on a
constant currency basis -
Three months ended
12/31/19
|
$
508,796
|
|
$
280,624
|
|
$
228,172
|
|
|
|
|
|
|
Net sales -
Three months ended 12/31/18
|
$
533,566
|
|
$
305,574
|
|
$
227,992
|
Net sales
(decline) growth on a constant currency basis
|
(4.6)%
|
|
(8.2)%
|
|
0.1%
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
North
America
|
|
International
|
Net sales - Six
months ended 12/31/19
|
$
988,860
|
|
$
552,394
|
|
$
436,466
|
Impact of
foreign currency exchange
|
13,706
|
|
287
|
|
13,419
|
Net sales on a
constant currency basis -
Six months ended
12/31/19
|
$
1,002,566
|
|
$
552,681
|
|
$
449,885
|
|
|
|
|
|
|
Net sales - Six
months ended 12/31/18
|
$
1,052,044
|
|
$
596,765
|
|
$
455,279
|
Net sales
decline on a constant currency basis
|
(4.7)%
|
|
(7.4)%
|
|
(1.2)%
|
|
|
|
|
|
|
Net Sales Growth
at Constant Currency and Adjusted for Divestitures and SKU
Rationalization
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
North
America
|
|
International
|
Net sales on a
constant currency basis -
Three months ended
12/31/19
|
$
508,796
|
|
$
280,624
|
|
$
228,172
|
|
|
|
|
|
|
Net sales -
Three months ended 12/31/18
|
$
533,566
|
|
$
305,574
|
|
$
227,992
|
Divestitures
|
(7,024)
|
|
(7,024)
|
|
-
|
SKU
rationalization
|
(13,811)
|
|
(12,239)
|
|
(1,572)
|
Net sales on a
constant currency basis adjusted for
divestitures and SKU rationalization - Three months
ended 12/31/18
|
$
512,731
|
|
$
286,311
|
|
$
226,420
|
Net sales
(decline) growth on a constant currency
basis adjusted for divestitures and SKU
rationalization
|
(0.8)%
|
|
(2.0)%
|
|
0.8%
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
North
America
|
|
International
|
Net sales on a
constant currency basis -
Six months ended
12/31/19
|
$
1,002,566
|
|
$
552,681
|
|
$
449,885
|
|
|
|
|
|
|
Net sales - Six
months ended 12/31/18
|
$
1,052,044
|
|
$
596,765
|
|
$
455,279
|
Divestitures
|
(8,955)
|
|
(8,955)
|
|
-
|
SKU
rationalization
|
(33,281)
|
|
(26,028)
|
|
(7,253)
|
Net sales on a
constant currency basis adjusted for
divestitures and SKU rationalization - Six months
ended 12/31/18
|
$
1,009,808
|
|
$
561,782
|
|
$
448,026
|
Net sales
(decline) growth on a constant currency
basis adjusted for divestitures and SKU
rationalization
|
(0.7)%
|
|
(1.6)%
|
|
0.4%
|
|
|
|
|
|
|
Adjusted EBITDA
Growth at Constant Currency
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
North
America
|
|
International
|
Adjusted EBITDA
- Three months ended 12/31/19
|
$
45,047
|
|
$
30,141
|
|
$
25,148
|
Impact of
foreign currency exchange
|
264
|
|
(11)
|
|
276
|
Adjusted EBITDA
on a constant currency basis -
Three months ended
12/31/19
|
$
45,311
|
|
$
30,130
|
|
$
25,424
|
|
|
|
|
|
|
Net sales on a
constant currency basis -
Three months ended
12/31/19
|
$
508,796
|
|
$
280,624
|
|
$
228,172
|
Adjusted EBITDA
growth on a constant currency basis
|
8.9%
|
|
10.7%
|
|
11.1%
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
North
America
|
|
International
|
Adjusted EBITDA
- Six months ended 12/31/19
|
$
77,137
|
|
$
54,180
|
|
$
44,859
|
Impact of
foreign currency exchange
|
1,335
|
|
24
|
|
1,312
|
Adjusted EBITDA
on a constant currency basis -
Six months ended
12/31/19
|
$
78,472
|
|
$
54,204
|
|
$
46,171
|
|
|
|
|
|
|
Net sales on a
constant currency basis -
Six months ended
12/31/19
|
$
1,002,566
|
|
$
552,681
|
|
$
449,885
|
Adjusted EBITDA
growth on a constant currency basis
|
7.8%
|
|
9.8%
|
|
10.3%
|
THE HAIN CELESTIAL
GROUP, INC.
|
Segment EBITDA and
Adjusted EBITDA
|
Three Months
Ended
|
(unaudited and in
thousands)
|
|
|
|
|
North
America
|
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
|
|
Operating
Income
|
$
20,062
|
|
$
9,563
|
Depreciation and
amortization
|
4,201
|
|
4,269
|
Long-lived asset
impairment
|
-
|
|
1,510
|
Other
|
(838)
|
|
610
|
EBITDA
|
$
23,425
|
|
$
15,952
|
Productivity and
transformation costs
|
332
|
|
2,017
|
SKU
rationalization
|
3,927
|
|
1,530
|
Loss on sale of
business
|
1,783
|
|
-
|
Warehouse/manufacturing facility start-up
costs
|
639
|
|
1,708
|
Plant closure related
costs
|
35
|
|
231
|
Adjusted
EBITDA
|
$
30,141
|
|
$
21,438
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
|
|
Operating
Income
|
$
12,899
|
|
$
15,153
|
Depreciation and
amortization
|
8,339
|
|
7,502
|
Long-lived asset
impairment
|
-
|
|
62
|
Other
|
367
|
|
95
|
EBITDA
|
$
21,605
|
|
$
22,812
|
Productivity and
transformation costs
|
2,056
|
|
2,349
|
Plant closure related
costs
|
1,487
|
|
1,232
|
Adjusted
EBITDA
|
$
25,148
|
|
$
26,393
|
THE HAIN CELESTIAL
GROUP, INC.
|
Segment EBITDA and
Adjusted EBITDA
|
Six Months
Ended
|
(unaudited and in
thousands)
|
|
|
|
|
North
America
|
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
|
|
Operating
Income
|
$
35,194
|
|
$
14,069
|
Depreciation and
amortization
|
8,549
|
|
8,544
|
Long-lived asset
impairment
|
-
|
|
1,503
|
Other
|
(173)
|
|
565
|
EBITDA
|
$
43,570
|
|
$
24,681
|
Productivity and
transformation costs
|
2,500
|
|
3,521
|
SKU
rationalization
|
3,737
|
|
1,530
|
Warehouse/manufacturing facility start-up
costs
|
2,518
|
|
6,307
|
Loss on sale of
business
|
1,783
|
|
-
|
Plant closure related
costs
|
72
|
|
960
|
Adjusted
EBITDA
|
$
54,180
|
|
$
36,999
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
|
|
Operating
Income
|
$
22,006
|
|
$
20,813
|
Depreciation and
amortization
|
16,265
|
|
15,674
|
Long-lived asset
impairment
|
-
|
|
4,305
|
Other
|
799
|
|
26
|
EBITDA
|
$
39,070
|
|
$
40,818
|
Productivity and
transformation costs
|
3,328
|
|
3,202
|
Plant closure related
costs
|
2,282
|
|
2,331
|
SKU
rationalization
|
179
|
|
-
|
Litigation and
related expenses
|
-
|
|
19
|
Adjusted
EBITDA
|
$
44,859
|
|
$
46,370
|
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SOURCE The Hain Celestial Group, Inc.