LAKE SUCCESS, N.Y.,
May 7, 2020 /PRNewswire/ -- The
Hain Celestial Group, Inc. (Nasdaq: HAIN) ("Hain Celestial", "Hain"
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 third quarter ended
March 31, 2020. 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, "I am
pleased to be raising our full year guidance for 2020 as third
quarter financial performance exceeded our previous guidance and is
expected to show continuing strength in the current quarter. With
our transformation plan taking hold and food-at-home consumption
accelerating, Hain Celestial's natural and organic product
offerings resonated with consumers, resulting in year-over-year
growth in third quarter net sales, the first such increase since
fiscal 2018."
Schiller continued, "Across our organization, we are taking
necessary safety measures to best manage our business in the
current operating environment as we continue to deliver against our
transformational strategic plan. I am proud of how Hain associates
across the globe rose to the occasion to partner with our valued
customers and suppliers to deliver for our consumers and local
communities in the face of unprecedented global challenges. As a
result of the actions we have taken, we are well positioned to
manage through this unprecedented crisis and emerge an even
stronger company."
FINANCIAL HIGHLIGHTS1
Summary of Third Quarter Results from Continuing
Operations2
- Net sales increased 1% to $553.3
million or 2% on a constant currency basis compared to the
prior year period.
- When adjusted for Foreign Exchange, Divestitures and Stock
Keeping Unit ("SKU") rationalization3, net sales
increased 6% compared to the prior year period.
- Gross margin of 23.9%, a 324 basis point increase from the
prior year period.
- Adjusted gross margin of 24.3%, a 282 basis point increase from
the prior year period.
- Operating income of $19.1 million
compared to $19.0 million in the
prior year period.
- Adjusted operating income of $45.7
million compared to $34.0
million in the prior year period.
- Net income of $25.0 million
compared to $8.8 million in the prior
year period.
- Adjusted net income of $28.8
million compared to $20.2
million in prior year period.
- Adjusted EBITDA of $60.7 million
compared to $49.1 million in the
prior year period.
- Adjusted EBITDA margin of 11.0%, a 199 basis point increase
compared to the prior year period.
- Earnings per diluted share ("EPS") of $0.24 compared to $0.08 in the prior year period.
- Adjusted EPS of $0.28 compared to
$0.19 in the prior year period.
- Repurchased 2.4 million shares, or 2.3% of the outstanding
common stock, at an average price of $23.52 per share.
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 third quarter were $320.4 million, an increase of 2% compared to the
prior year period. When adjusted for Divestitures and SKU
rationalization3, net sales increased 9% from the prior
year period.
Segment gross profit in the third quarter was $82.6 million, a 21% increase from the prior
year period. Adjusted gross profit was $84.5
million, an increase of 18% from the prior year period.
Gross margin was 25.8%, a 415 basis point increase from the prior
year period and adjusted gross margin was 26.4%, a 351 basis point
increase from the prior year.
Segment operating income in the third quarter was $28.9 million, a 35% increase from the prior year
period. Adjusted operating income was $38.1
million, a 44% increase from the prior year period.
Adjusted EBITDA was $42.9 million,
a 36% increase from the prior year period. As a percentage of sales
on a constant currency basis, North
America adjusted EBITDA margin was 13.4%, a 338 basis point
increase from the prior year period.
International
International net sales in the third
quarter were $232.9 million, flat
when compared to the prior year period. When adjusted for Foreign
Exchange, Divestitures and SKU rationalization3, net
sales increased 2% compared to the prior year period.
Segment gross profit in the third quarter was $49.8 million, a 10% increase from the prior
year period. Adjusted gross profit was $49.8
million, an increase of 9% from the prior year period. Gross
margin was 21.4%, a 197 basis point increase from the prior year
period and adjusted gross margin was 21.4%, a 184 basis point
increase from the prior year period.
Segment operating income in the third quarter was $18.7 million, a 6% decrease from the prior
year period. Adjusted operating income was $23.2 million, an increase of 11% from the prior
year period.
Adjusted EBITDA was $30.9 million,
a 7% increase from the prior year period. As a percentage of sales
on a constant currency basis, International adjusted EBITDA margin
was 13.3%, an 89 basis point increase from the prior year
period.
CAPITAL MANAGEMENT
During the month of March, the Company repurchased 2.4 million
shares, or 2.3% of the outstanding common stock, at an average
price of $23.52 per share for a total
of $57.4 million, excluding
commissions. As of March 31, 2020,
the Company had $192.6 million
remaining authorization under the share repurchase program.
SALE OF RUDI'S BAKERY
Effective May 1, 2020, the Company
has completed the divestiture of the Rudi's Gluten Free
BakeryTM and Rudi's Organic
Bakery® brands to an affiliate of Promise Gluten
Free. Details of the transaction were not disclosed.
FISCAL YEAR 2020 GUIDANCE
The Company now expects all profit metrics for the full year
ending June 30, 2020 to be higher
than their previously provided ranges as a result of the ongoing
execution of our transformation plan and higher food-at-home
consumption related to the COVID-19 pandemic. The Company
acknowledges that the magnitude and duration of increased demand
remains uncertain and a challenge it faces as a result of the
pandemic is its ability to maintain the level of supply needed to
keep up with the increased demand. Hain Celestial's outlook assumes
its supply chain continues to operate with minimal disruption for
the remainder of fiscal 2020. The Company is raising its annual
guidance for continuing operations for fiscal year 2020 as
follows:
|
Fiscal Year
2020
|
|
Reported
|
Constant
Currency
|
|
Adjusted
EBITDA
|
$190 Million to $200
Million
|
$195 Million to $205
Million
|
|
% Growth
|
+15% to
+21%
|
+18% to
+24%
|
|
Adjusted
EPS
|
$0.75 to
$0.82
|
$0.78 to
$0.85
|
|
% Growth
|
+25% to
+37%
|
+30% to
+42%
|
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®, Celestial Seasonings®, Clarks™, Coconut Dream®, Cully
& Sully®, Danival®, DeBoles®, Earth's Best®, Ella's Kitchen®,
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®,
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, challenges and uncertainty resulting from
the COVID-19 pandemic, 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,
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 nine months
ended March 31, 2020 and 2019 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 nine months ended March
31, 2020 and 2019, Operating Free Cash Flow from continuing
operations was calculated as follows:
|
Three Months Ended
March 31,
|
|
Nine Months Ended
March 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(unaudited and in
thousands)
|
|
|
|
|
|
|
|
|
|
Cash flow provided by
operating activities - continuing operations
|
$
46,944
|
|
$
18,335
|
|
$
64,092
|
|
$
18,331
|
|
Purchases of
property, plant and equipment
|
(17,624)
|
|
(14,075)
|
|
(46,961)
|
|
(55,073)
|
|
Operating Free Cash
Flow - continuing operations
|
$
29,320
|
|
$
4,260
|
|
$
17,131
|
|
$
(36,742)
|
The Company's Operating Free Cash Flow from continuing
operations was $29.3 million for the
three months ended March 31, 2020, an
increase of $25.1 million from the
three months ended March 31, 2019.
The Company's Operating Free Cash Flow from continuing operations
was $17.1 million for the nine months
ended March 31, 2020, an increase of
$53.9 million from the nine months
ended March 31, 2019. The improvement
in Operating Free Cash Flow resulted primarily from an improvement
in net income adjusted for non-cash charges in the current year and
a decrease in cash used in working capital accounts.
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 Adjusted EBITDA as net income (loss) before
income taxes, net interest expense, depreciation and amortization,
impairment of long-lived and intangible assets, 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, Productivity and transformation costs,
SKU rationalization and certain inventory write-downs, unrealized
currency gains and losses 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 nine months ended March
31, 2020 and 2019, Adjusted EBITDA from continuing
operations was calculated as follows:
|
Three Months Ended
March 31,
|
|
Nine Months Ended
March 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
(unaudited and in
thousands)
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
24,339
|
|
$
(65,837)
|
|
$
(83,646)
|
|
$
(169,763)
|
|
Net loss from
discontinued operations
|
(697)
|
|
(74,620)
|
|
(105,581)
|
|
(123,672)
|
|
Net income (loss)
from continuing operations
|
$
25,036
|
|
$
8,783
|
|
$
21,935
|
|
$
(46,091)
|
|
|
|
|
|
|
|
|
|
(Benefit) provision
for income taxes
|
(10,242)
|
|
2,943
|
|
(9,753)
|
|
(1,926)
|
|
Interest expense,
net
|
3,332
|
|
5,278
|
|
11,884
|
|
13,966
|
|
Depreciation and
amortization
|
12,927
|
|
12,483
|
|
40,069
|
|
37,548
|
|
Equity in net loss of
equity-method investees
|
564
|
|
205
|
|
1,219
|
|
391
|
|
Stock-based
compensation, net
|
3,761
|
|
3,927
|
|
9,581
|
|
5,489
|
|
Stock-based
compensation expense in connection with Chief Executive Officer
Succession Agreement
|
-
|
|
-
|
|
-
|
|
429
|
|
Long-lived asset and
intangibles impairment
|
13,525
|
|
-
|
|
15,414
|
|
23,709
|
|
Unrealized currency
(gains) losses
|
(1,011)
|
|
1,522
|
|
188
|
|
2,551
|
|
Productivity and
transformation costs
|
10,967
|
|
9,259
|
|
37,402
|
|
29,464
|
|
Chief Executive
Officer Succession Plan expense, net
|
-
|
|
455
|
|
-
|
|
29,727
|
|
Proceeds from
insurance claim
|
(400)
|
|
-
|
|
(2,962)
|
|
-
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
-
|
#
|
-
|
|
-
|
#
|
4,334
|
|
Warehouse/manufacturing facility start-up
costs
|
537
|
|
3,222
|
|
3,055
|
|
9,529
|
|
Loss on sale of
business
|
332
|
|
-
|
|
2,115
|
|
-
|
|
SKU rationalization
and inventory write-down
|
1,362
|
|
505
|
|
5,278
|
|
2,035
|
|
Plant closure related
costs
|
-
|
|
184
|
|
2,354
|
|
3,502
|
|
Litigation and
related expenses
|
-
|
|
371
|
|
48
|
|
1,062
|
|
Adjusted
EBITDA
|
$
60,690
|
|
$
49,137
|
|
$
137,827
|
|
$
115,719
|
|
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 3/31/20
|
$
320,440
|
$
232,857
|
$
-
|
$
553,297
|
|
Net sales - Three
months ended 3/31/19
|
$
314,321
|
$
232,936
|
$
-
|
$
547,257
|
|
% change - FY'20 net
sales vs. FY'19 net sales
|
1.9%
|
(0.0)%
|
|
1.1%
|
|
|
|
|
|
|
Gross
Profit
|
|
|
|
|
|
Three months ended
3/31/20
|
|
|
|
|
|
Gross
profit
|
$
82,626
|
$
49,769
|
$
-
|
$
132,395
|
|
Non-GAAP adjustments
(1)
|
1,873
|
-
|
-
|
1,873
|
|
Adjusted gross
profit
|
$
84,499
|
$
49,769
|
$
-
|
$
134,268
|
|
Gross
margin
|
25.8%
|
21.4%
|
|
23.9%
|
|
Adjusted gross
margin
|
26.4%
|
21.4%
|
|
24.3%
|
|
|
|
|
|
|
Three months ended
3/31/19
|
|
|
|
|
|
Gross
profit
|
$
68,014
|
$
45,194
|
$
-
|
$
113,208
|
|
Non-GAAP adjustments
(1)
|
3,845
|
308
|
-
|
4,153
|
|
Adjusted gross
profit
|
$
71,859
|
$
45,502
|
$
-
|
$
117,361
|
|
Gross
margin
|
21.6%
|
19.4%
|
|
20.7%
|
|
Adjusted gross
margin
|
22.9%
|
19.5%
|
|
21.4%
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
Three months ended
3/31/20
|
|
|
|
|
|
Operating income
(loss)
|
$
28,873
|
$
18,660
|
$
(28,398)
|
$
19,135
|
|
Non-GAAP adjustments
(1)
|
9,202
|
4,512
|
12,824
|
26,538
|
|
Adjusted operating
income (loss)
|
$
38,075
|
$
23,172
|
$
(15,574)
|
$
45,673
|
|
Operating income
margin
|
9.0%
|
8.0%
|
|
3.5%
|
|
Adjusted operating
income margin
|
11.9%
|
10.0%
|
|
8.3%
|
|
|
|
|
|
|
Three months ended
3/31/19
|
|
|
|
|
|
Operating income
(loss)
|
$
21,358
|
$
19,883
|
$
(22,249)
|
$
18,992
|
|
Non-GAAP adjustments
(1)
|
5,109
|
975
|
8,955
|
15,039
|
|
Adjusted operating
income (loss)
|
$
26,467
|
$
20,858
|
$
(13,294)
|
$
34,031
|
|
Operating income
margin
|
6.8%
|
8.5%
|
|
3.5%
|
|
Adjusted operating
income margin
|
8.4%
|
9.0%
|
|
6.2%
|
|
|
|
|
|
|
(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 - Nine
months ended 3/31/20
|
$
872,834
|
$
669,323
|
$
-
|
$
1,542,157
|
|
Net sales - Nine
months ended 3/31/19
|
$
911,086
|
$
688,215
|
$
-
|
$
1,599,301
|
|
% change - FY'20 net
sales vs. FY'19 net sales
|
(4.2)%
|
(2.7)%
|
|
(3.6)%
|
|
|
|
|
|
|
Gross
Profit
|
|
|
|
|
|
Nine months ended
3/31/20
|
|
|
|
|
|
Gross
profit
|
$
209,956
|
$
125,877
|
$
-
|
$
335,833
|
|
Non-GAAP adjustments
(1)
|
8,037
|
2,666
|
-
|
10,703
|
|
Adjusted gross
profit
|
$
217,993
|
$
128,543
|
$
-
|
$
346,536
|
|
Gross
margin
|
24.1%
|
18.8%
|
|
21.8%
|
|
Adjusted gross
margin
|
25.0%
|
19.2%
|
|
22.5%
|
|
|
|
|
|
|
Nine months ended
3/31/19
|
|
|
|
|
|
Gross
profit
|
$
175,048
|
$
128,419
|
$
-
|
$
303,467
|
|
Non-GAAP adjustments
(1)
|
12,644
|
2,665
|
-
|
15,309
|
|
Adjusted gross
profit
|
$
187,692
|
$
131,084
|
$
-
|
$
318,776
|
|
Gross
margin
|
19.2%
|
18.7%
|
|
19.0%
|
|
Adjusted gross
margin
|
20.6%
|
19.0%
|
|
19.9%
|
|
|
|
|
|
|
Operating income
(loss)
|
|
|
|
|
|
Nine months ended
3/31/20
|
|
|
|
|
|
Operating income
(loss)
|
$
64,067
|
$
40,666
|
$
(73,952)
|
$
30,781
|
|
Non-GAAP adjustments
(1)
|
18,063
|
10,503
|
32,775
|
61,341
|
|
Adjusted operating
income (loss)
|
$
82,130
|
$
51,169
|
$
(41,177)
|
$
92,122
|
|
Operating income
margin
|
7.3%
|
6.1%
|
|
2.0%
|
|
Adjusted operating
income margin
|
9.4%
|
7.6%
|
|
6.0%
|
|
|
|
|
|
|
Nine months ended
3/31/19
|
|
|
|
|
|
Operating income
(loss)
|
$
35,427
|
$
40,696
|
$
(105,975)
|
$
(29,852)
|
|
Non-GAAP adjustments
(1)
|
18,930
|
11,264
|
75,074
|
105,268
|
|
Adjusted operating
income (loss)
|
$
54,357
|
$
51,960
|
$
(30,901)
|
$
75,416
|
|
Operating income
(loss) margin
|
3.9%
|
5.9%
|
|
(1.9)%
|
|
Adjusted operating
income margin
|
6.0%
|
7.5%
|
|
4.7%
|
|
|
|
|
|
|
(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)
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
June
30,
|
|
|
|
2020
|
|
2019
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
41,549
|
|
$
31,017
|
|
Accounts receivable,
net
|
237,719
|
|
209,990
|
|
Inventories
|
238,133
|
|
299,341
|
|
Prepaid expenses and
other current assets
|
86,653
|
|
51,391
|
|
Current assets of
discontinued operations
|
-
|
|
110,048
|
|
Total current
assets
|
604,054
|
|
701,787
|
|
Property, plant and
equipment, net
|
287,629
|
|
287,845
|
|
Goodwill
|
|
861,067
|
|
875,881
|
|
Trademarks and other
intangible assets, net
|
355,714
|
|
380,286
|
|
Investments and joint
ventures
|
18,103
|
|
18,890
|
|
Operating lease
right-of-use assets
|
81,959
|
|
-
|
|
Other
assets
|
27,611
|
|
58,764
|
|
Noncurrent assets of
discontinued operations
|
-
|
|
259,167
|
|
Total
assets
|
$
2,236,137
|
|
$
2,582,620
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
$
181,783
|
|
$
219,957
|
|
Accrued expenses and
other current liabilities
|
118,405
|
|
114,265
|
|
Current portion of
long-term debt
|
2,041
|
|
17,232
|
|
Current liabilities
of discontinued operations
|
-
|
|
31,703
|
|
Total current
liabilities
|
302,229
|
|
383,157
|
|
Long-term debt, less
current portion
|
363,526
|
|
613,537
|
|
Deferred income
taxes
|
40,136
|
|
34,757
|
|
Operating lease
liabilities, noncurrent portion
|
74,937
|
|
-
|
|
Other noncurrent
liabilities
|
16,261
|
|
14,489
|
|
Noncurrent
liabilities of discontinued operations
|
-
|
|
17,361
|
|
Total
liabilities
|
797,089
|
|
1,063,301
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
1,092
|
|
1,088
|
|
Additional paid-in
capital
|
1,168,378
|
|
1,158,257
|
|
Retained
earnings
|
610,932
|
|
695,017
|
|
Accumulated other
comprehensive loss
|
(172,403)
|
|
(225,004)
|
|
|
|
1,607,999
|
|
1,629,358
|
|
Treasury
stock
|
(168,951)
|
|
(110,039)
|
|
Total stockholders'
equity
|
1,439,048
|
|
1,519,319
|
|
Total liabilities and
stockholders' equity
|
$
2,236,137
|
|
$
2,582,620
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
|
Consolidated
Statements of Operations
|
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Nine Months Ended
March 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
553,297
|
|
$
547,257
|
|
$
1,542,157
|
|
$
1,599,301
|
|
Cost of
sales
|
420,902
|
|
434,049
|
|
1,206,324
|
|
1,295,834
|
|
Gross
profit
|
132,395
|
|
113,208
|
|
335,833
|
|
303,467
|
|
Selling, general and
administrative expenses
|
85,447
|
|
81,088
|
|
245,205
|
|
235,561
|
|
Amortization of
acquired intangibles
|
3,174
|
|
3,265
|
|
9,446
|
|
9,946
|
|
Productivity and
transformation costs
|
11,514
|
|
9,408
|
|
37,949
|
|
29,613
|
|
Chief Executive
Officer Succession Plan expense, net
|
-
|
|
455
|
|
-
|
|
30,156
|
|
Proceeds from
insurance claim
|
(400)
|
|
-
|
|
(2,962)
|
|
-
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
-
|
|
-
|
|
-
|
|
4,334
|
|
Long-lived asset and
intangibles impairment
|
13,525
|
|
-
|
|
15,414
|
|
23,709
|
|
Operating income
(loss)
|
19,135
|
|
18,992
|
|
30,781
|
|
(29,852)
|
|
Interest and other
financing expense, net
|
4,037
|
|
5,994
|
|
15,068
|
|
15,736
|
|
Other (income)
expense, net
|
(260)
|
|
1,067
|
|
2,312
|
|
2,038
|
|
Income (loss) from
continuing operations before income taxes and equity in net loss of
equity-method investees
|
15,358
|
|
11,931
|
|
13,401
|
|
(47,626)
|
|
(Benefit) provision
for income taxes
|
(10,242)
|
|
2,943
|
|
(9,753)
|
|
(1,926)
|
|
Equity in net loss of
equity-method investees
|
564
|
|
205
|
|
1,219
|
|
391
|
|
Net
income (loss) from continuing operations
|
$
25,036
|
|
$
8,783
|
|
$
21,935
|
|
$
(46,091)
|
|
Net loss
from discontinued operations, net of tax
|
(697)
|
|
(74,620)
|
|
(105,581)
|
|
(123,672)
|
|
Net income
(loss)
|
$
24,339
|
|
$
(65,837)
|
|
$
(83,646)
|
|
$
(169,763)
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share(1):
|
|
|
|
|
|
|
|
|
Basic net income
(loss) per common share from continuing operations
|
$
0.24
|
|
$
0.08
|
|
$
0.21
|
|
$
(0.44)
|
|
Basic net loss per
common share from discontinued operations
|
(0.01)
|
|
(0.72)
|
|
(1.01)
|
|
(1.19)
|
|
Basic
net income (loss) per common share
|
$
0.23
|
|
$
(0.63)
|
|
$
(0.80)
|
|
$
(1.63)
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per common share from continuing operations
|
$
0.24
|
|
$
0.08
|
|
$
0.21
|
|
$
(0.44)
|
|
Diluted net loss per
common share from discontinued operations
|
(0.01)
|
|
(0.72)
|
|
(1.01)
|
|
(1.19)
|
|
Diluted
net income (loss) per common share
|
$
0.23
|
|
$
(0.63)
|
|
$
(0.80)
|
|
$
(1.63)
|
|
|
|
|
|
|
|
|
|
Shares used in the
calculation of net income (loss) per common share:
|
|
|
|
|
|
|
|
|
Basic
|
104,032
|
|
104,117
|
|
104,192
|
|
104,045
|
|
Diluted
|
104,337
|
|
104,334
|
|
104,489
|
|
104,045
|
|
|
|
|
|
|
|
|
|
(1)Net
income (loss) per common share may not add in certain periods due
to rounding.
|
|
|
|
|
|
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
|
Consolidated
Statements of Cash Flows
|
|
(unaudited and in
thousands)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
Nine Months Ended
March 31,
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
24,339
|
|
$
(65,837)
|
|
$
(83,646)
|
|
$
(169,763)
|
|
Net loss
from discontinued operations
|
(697)
|
|
(74,620)
|
|
(105,581)
|
|
(123,672)
|
|
Net
income (loss) from continuing operations
|
25,036
|
|
8,783
|
|
21,935
|
|
(46,091)
|
|
Adjustments to
reconcile net income (loss) from continuing operations to net cash
provided by operating activities from continuing
operations:
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
12,927
|
|
12,483
|
|
40,069
|
|
37,548
|
|
Deferred income
taxes
|
(3,880)
|
|
(1,858)
|
|
(9,035)
|
|
(24,524)
|
|
Chief Executive
Officer Succession Plan expense, net
|
-
|
|
455
|
|
-
|
|
29,727
|
|
Equity in net loss of
equity-method investees
|
564
|
|
205
|
|
1,219
|
|
391
|
|
Stock-based
compensation, net
|
3,761
|
|
3,927
|
|
9,581
|
|
5,918
|
|
Long-lived asset and
intangibles impairment
|
13,525
|
|
-
|
|
15,414
|
|
23,709
|
|
Other non-cash items,
net
|
(326)
|
|
2,412
|
|
2,335
|
|
3,697
|
|
Increase (decrease)
in cash attributable to changes in operating assets and
liabilities:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
(38,410)
|
|
(14,006)
|
|
(30,870)
|
|
(4,466)
|
|
Inventories
|
37,891
|
|
17,378
|
|
47,280
|
|
11,630
|
|
Other current
assets
|
8,407
|
|
1,305
|
|
10,302
|
|
(223)
|
|
Other assets and
liabilities
|
76
|
|
612
|
|
(1,166)
|
|
5,206
|
|
Accounts payable and
accrued expenses
|
(12,627)
|
|
(13,361)
|
|
(42,972)
|
|
(24,191)
|
|
Net cash provided by
operating activities - continuing operations
|
46,944
|
|
18,335
|
|
64,092
|
|
18,331
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchases of property
and equipment
|
(17,624)
|
|
(14,075)
|
|
(46,961)
|
|
(55,073)
|
|
Proceeds from sale of
businesses and other
|
1,308
|
|
-
|
|
14,428
|
|
3,863
|
|
Net cash used in
investing activities - continuing operations
|
(16,316)
|
|
(14,075)
|
|
(32,533)
|
|
(51,210)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Borrowings under bank
revolving credit facility
|
50,000
|
|
90,000
|
|
197,000
|
|
240,000
|
|
Repayments under bank
revolving credit facility
|
(9,000)
|
|
(49,145)
|
|
(254,500)
|
|
(186,791)
|
|
Repayments under term
loan
|
-
|
|
(3,750)
|
|
(206,250)
|
|
(11,250)
|
|
(Funding of) proceeds
from discontinued operations entities
|
(4,682)
|
|
(47,365)
|
|
305,247
|
|
(33,815)
|
|
Repayments of other
debt, net
|
(1,001)
|
|
(1,088)
|
|
(1,502)
|
|
(1,689)
|
|
Share
repurchases
|
(57,406)
|
|
-
|
|
(57,406)
|
|
-
|
|
Shares withheld for
payment of employee payroll taxes
|
(522)
|
|
(149)
|
|
(1,506)
|
|
(3,071)
|
|
Net cash (used in)
provided by financing activities - continuing operations
|
(22,611)
|
|
(11,497)
|
|
(18,917)
|
|
3,384
|
|
Effect of exchange
rate changes on cash - continuing operations
|
(3,492)
|
|
718
|
|
(2,110)
|
|
(774)
|
|
CASH FLOWS FROM
DISCONTINUED OPERATIONS
|
|
|
|
|
|
|
|
|
Cash (used in)
provided by operating activities
|
(459)
|
|
(10,768)
|
|
(6,146)
|
|
(13,627)
|
|
Cash (used in)
provided by investing activities
|
(4,223)
|
|
(30,089)
|
|
297,592
|
|
(33,561)
|
|
Cash provided by
(used in) financing activities
|
4,682
|
|
34,999
|
|
(299,418)
|
|
30,582
|
|
Effect of exchange
rate changes on cash - discontinued operations
|
-
|
|
26
|
|
(537)
|
|
(451)
|
|
Net cash flows used
in discontinued operations
|
-
|
|
(5,832)
|
|
(8,509)
|
|
(17,057)
|
|
Net increase
(decrease) in cash and cash equivalents
|
4,525
|
|
(12,351)
|
|
2,023
|
|
(47,326)
|
|
Cash and cash
equivalents at beginning of period
|
37,024
|
|
78,043
|
|
39,526
|
|
113,018
|
|
Cash and cash
equivalents and restricted cash at end of period
|
$
41,549
|
|
$
65,692
|
|
$
41,549
|
|
$
65,692
|
|
Less: cash and cash
equivalents of discontinued operations
|
-
|
|
(11,263)
|
|
-
|
|
(11,263)
|
|
Cash and cash
equivalents and restricted cash of continuing operations at end of
period
|
$
41,549
|
|
$
54,429
|
|
$
41,549
|
|
$
54,429
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
|
Reconciliation of GAAP Results to Non-GAAP
Measures
|
|
(unaudited and
in thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
|
2020
GAAP
|
Adjustments
|
2020
Adjusted
|
|
2019
GAAP
|
Adjustments
|
2019
Adjusted
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
553,297
|
-
|
553,297
|
|
$
547,257
|
-
|
$
547,257
|
|
Cost of
sales
|
420,902
|
(1,873)
|
419,029
|
|
434,049
|
(4,153)
|
429,896
|
|
Gross
profit
|
132,395
|
1,873
|
134,268
|
|
113,208
|
4,153
|
117,361
|
|
Operating expenses
(a)
|
102,146
|
(13,551)
|
88,595
|
|
84,353
|
(1,023)
|
83,330
|
|
Productivity and
transformation costs
|
11,514
|
(11,514)
|
-
|
|
9,408
|
(9,408)
|
-
|
|
Chief Executive
Officer Succession Plan expense, net
|
-
|
-
|
-
|
|
455
|
(455)
|
-
|
|
Proceeds from
insurance claims
|
(400)
|
400
|
-
|
|
-
|
-
|
-
|
|
Operating
income
|
19,135
|
26,538
|
45,673
|
|
18,992
|
15,039
|
34,031
|
|
Interest and other
expense (income), net (b)
|
3,777
|
679
|
4,456
|
|
7,061
|
(1,522)
|
5,539
|
|
(Benefit) provision
for income taxes
|
(10,242)
|
22,129
|
11,887
|
|
2,943
|
5,136
|
8,079
|
|
Net
income from continuing operations
|
25,036
|
3,730
|
28,766
|
|
8,783
|
11,425
|
20,208
|
|
Net
(loss) income from discontinued operations, net of tax
|
(697)
|
697
|
-
|
|
(74,620)
|
74,620
|
-
|
|
Net income
(loss)
|
24,339
|
4,427
|
28,766
|
|
(65,837)
|
86,045
|
20,208
|
|
|
|
|
|
|
|
|
|
Diluted net income
per common share from continuing operations
|
0.24
|
0.04
|
0.28
|
|
0.08
|
0.11
|
0.19
|
|
Diluted net (loss)
income per common share from discontinued operations
|
(0.01)
|
0.01
|
-
|
|
(0.72)
|
0.72
|
-
|
|
Diluted
net income (loss) per common share
|
0.23
|
0.04
|
0.28
|
|
(0.63)
|
0.82
|
0.19
|
|
|
|
|
|
|
|
|
|
Detail of
Adjustments:
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
March 31, 2020
|
|
|
|
Three Months
Ended
March 31, 2019
|
|
|
SKU rationalization
and inventory write-down
|
|
$
1,362
|
|
|
|
$
505
|
|
|
Warehouse/manufacturing facility start-up
costs
|
|
511
|
|
|
|
3,222
|
|
|
Plant closure related
costs
|
|
-
|
|
|
|
426
|
|
|
Cost of
sales
|
|
1,873
|
|
|
|
4,153
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
1,873
|
|
|
|
4,153
|
|
|
|
|
|
|
|
|
|
|
Intangibles
impairment
|
|
7,650
|
|
|
|
-
|
|
|
Long-lived asset
impairment
|
|
5,875
|
|
|
|
-
|
|
|
Warehouse/manufacturing facility start-up
costs
|
|
26
|
|
|
|
-
|
|
|
Stock-based
compensation acceleration
|
|
-
|
|
|
|
583
|
|
|
Litigation and
related expenses
|
|
-
|
|
|
|
371
|
|
|
Plant closure related
costs
|
|
-
|
|
|
|
69
|
|
|
Operating expenses
(a)
|
|
13,551
|
|
|
|
1,023
|
|
|
|
|
|
|
|
|
|
|
Productivity and
transformation costs
|
|
11,514
|
|
|
|
9,408
|
|
|
Productivity and
transformation costs
|
|
11,514
|
|
|
|
9,408
|
|
|
|
|
|
|
|
|
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
-
|
|
|
|
455
|
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
-
|
|
|
|
455
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
insurance claims
|
|
(400)
|
|
|
|
-
|
|
|
Proceeds from
insurance claims
|
|
(400)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
26,538
|
|
|
|
15,039
|
|
|
|
|
|
|
|
|
|
|
Unrealized currency
(gains) losses
|
|
(1,011)
|
|
|
|
1,522
|
|
|
Loss on sale of
business
|
|
332
|
|
|
|
-
|
|
|
Interest and other
expense (income), net (b)
|
|
(679)
|
|
|
|
1,522
|
|
|
|
|
|
|
|
|
|
|
Income tax related
adjustments
|
|
(22,129)
|
|
|
|
(5,136)
|
|
|
(Benefit) provision
for income taxes
|
|
(22,129)
|
|
|
|
(5,136)
|
|
|
|
|
|
|
|
|
|
|
Net
income from continuing operations
|
|
$
3,730
|
|
|
|
$
11,425
|
|
|
|
|
|
|
|
|
|
|
(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 (income),
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)
|
|
|
|
|
|
|
|
|
|
Nine Months Ended
March 31,
|
|
2020
GAAP
|
Adjustments
|
2020
Adjusted
|
|
2019
GAAP
|
Adjustments
|
2019
Adjusted
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
1,542,157
|
-
|
$
1,542,157
|
|
$
1,599,301
|
-
|
$
1,599,301
|
|
Cost of
sales
|
1,206,324
|
(10,703)
|
1,195,621
|
|
1,295,834
|
(15,309)
|
1,280,525
|
|
Gross
profit
|
335,833
|
10,703
|
346,536
|
|
303,467
|
15,309
|
318,776
|
|
Operating expenses
(a)
|
270,065
|
(15,651)
|
254,414
|
|
269,216
|
(25,857)
|
243,359
|
|
Productivity and
transformation costs
|
37,949
|
(37,949)
|
-
|
|
29,613
|
(29,613)
|
-
|
|
Chief Executive
Officer Succession Plan expense, net
|
-
|
-
|
-
|
|
30,156
|
(30,156)
|
-
|
|
Proceeds from
insurance claim
|
(2,962)
|
2,962
|
-
|
|
-
|
-
|
-
|
|
Accounting review and
remediation costs, net of insurance proceeds
|
-
|
-
|
-
|
|
4,334
|
(4,334)
|
-
|
|
Operating income
(loss)
|
30,781
|
61,341
|
92,122
|
|
(29,852)
|
105,269
|
75,416
|
|
Interest and other
expense (income), net (b)
|
17,380
|
(3,278)
|
14,102
|
|
17,774
|
(2,551)
|
15,223
|
|
(Benefit) provision
for income taxes
|
(9,753)
|
31,818
|
22,065
|
|
(1,926)
|
19,537
|
17,611
|
|
Net
income (loss) from continuing operations
|
21,935
|
32,801
|
54,736
|
|
(46,091)
|
88,283
|
42,192
|
|
Net
(loss) income from discontinued operations, net of tax
|
(105,581)
|
105,581
|
-
|
|
(123,672)
|
123,672
|
-
|
|
Net (loss)
income
|
(83,646)
|
138,382
|
54,736
|
|
(169,763)
|
211,955
|
42,192
|
|
|
|
|
|
|
|
|
|
Diluted net income
(loss) per common share from continuing operations
|
0.21
|
0.31
|
0.52
|
|
(0.44)
|
0.85
|
0.41
|
|
Diluted net (loss)
income per common share from discontinued operations
|
(1.01)
|
1.01
|
-
|
|
(1.19)
|
1.19
|
-
|
|
Diluted
net (loss) income per common share
|
(0.80)
|
1.32
|
0.52
|
|
(1.63)
|
2.04
|
0.41
|
|
|
|
|
|
|
|
|
|
Detail of
Adjustments:
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
March 31, 2020
|
|
|
|
Nine Months
Ended
March 31, 2019
|
|
|
SKU rationalization
and inventory write-down
|
|
$
5,278
|
|
|
|
$
2,035
|
|
|
Warehouse/manufacturing facility start-up
costs
|
|
2,866
|
|
|
|
9,529
|
|
|
Plant closure related
costs
|
|
2,559
|
|
|
|
3,745
|
|
|
Cost of
sales
|
|
10,703
|
|
|
|
15,309
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
10,703
|
|
|
|
15,309
|
|
|
|
|
|
|
|
|
|
|
Intangibles
impairment
|
|
9,539
|
|
|
|
17,900
|
|
|
Long-lived asset
impairment
|
|
5,875
|
|
|
|
5,809
|
|
|
Warehouse/manufacturing facility start-up
costs
|
|
189
|
|
|
|
-
|
|
|
Litigation and
related expenses
|
|
48
|
|
|
|
1,062
|
|
|
Plant closure related
costs
|
|
-
|
|
|
|
503
|
|
|
Stock-based
compensation acceleration
|
|
-
|
|
|
|
583
|
|
|
Operating expenses
(a)
|
|
15,651
|
|
|
|
25,857
|
|
|
|
|
|
|
|
|
|
|
Productivity and
transformation costs
|
|
37,949
|
|
|
|
29,613
|
|
|
Productivity and
transformation costs
|
|
37,949
|
|
|
|
29,613
|
|
|
|
|
|
|
|
|
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
-
|
|
|
|
30,156
|
|
|
Chief Executive
Officer Succession Plan expense, net
|
|
-
|
|
|
|
30,156
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
insurance claim
|
|
(2,962)
|
|
|
|
-
|
|
|
Proceeds from
insurance claim
|
|
(2,962)
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
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)
|
|
61,341
|
|
|
|
105,269
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
business
|
|
2,115
|
|
|
|
-
|
|
|
Unrealized currency
losses
|
|
188
|
|
|
|
2,551
|
|
|
Deferred financing
cost write-off
|
|
975
|
|
|
|
-
|
|
|
Interest and other
expense (income), net (b)
|
|
3,278
|
|
|
|
2,551
|
|
|
|
|
|
|
|
|
|
|
Income tax related
adjustments
|
|
(31,818)
|
|
|
|
(19,537)
|
|
|
(Benefit) provision
for income taxes
|
|
(31,818)
|
|
|
|
(19,537)
|
|
|
|
|
|
|
|
|
|
|
Net
income (loss) from continuing operations
|
|
$
32,801
|
|
|
|
$
88,283
|
|
|
|
|
|
|
|
|
|
|
(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 (income),
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 3/31/20
|
$
553,297
|
|
$
320,440
|
|
$
232,857
|
|
Impact of
foreign currency exchange
|
5,572
|
|
477
|
|
5,095
|
|
Net sales on a
constant currency basis -
Three months ended 3/31/20
|
$
558,869
|
|
$
320,917
|
|
$
237,952
|
|
|
|
|
|
|
|
Net sales - Three
months ended 3/31/19
|
$
547,257
|
|
$
314,321
|
|
$
232,936
|
|
Net sales growth on a
constant currency basis
|
2.1%
|
|
2.1%
|
|
2.2%
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
North
America
|
|
International
|
|
Net sales -
Nine months ended 3/31/20
|
$
1,542,157
|
|
$
872,834
|
|
$
669,323
|
|
Impact of
foreign currency exchange
|
19,279
|
|
764
|
|
18,515
|
|
Net sales on a
constant currency basis -
Nine months ended 3/31/20
|
$
1,561,436
|
|
$
873,598
|
|
$
687,838
|
|
|
|
|
|
|
|
Net sales - Nine
months ended 3/31/19
|
$
1,599,301
|
|
$
911,086
|
|
$
688,215
|
|
Net sales decline on
a constant currency basis
|
(2.4)%
|
|
(4.1)%
|
|
(0.1)%
|
|
|
|
|
|
|
|
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 3/31/20
|
$
558,869
|
|
$
320,917
|
|
$
237,952
|
|
|
|
|
|
|
|
Net sales - Three
months ended 3/31/19
|
$
547,257
|
|
$
314,321
|
|
$
232,936
|
|
Divestitures
|
(10,273)
|
|
(10,273)
|
|
-
|
|
SKU
rationalization
|
(10,141)
|
|
(9,522)
|
|
(619)
|
|
Net sales on a
constant currency basis adjusted for
divestitures and SKU rationalization - Three months
ended 3/31/20
|
$
526,843
|
|
$
294,526
|
|
$
232,317
|
|
Net sales
growth on a constant currency basis adjusted for
divestitures and SKU rationalization
|
6.1%
|
|
9.0%
|
|
2.4%
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
North
America
|
|
International
|
|
Net sales on a
constant currency basis -
Nine months ended 3/31/20
|
$
1,561,436
|
|
$
873,598
|
|
$
687,838
|
|
|
|
|
|
|
|
Net sales - Nine
months ended 3/31/19
|
$
1,599,301
|
|
$
911,086
|
|
$
688,215
|
|
Divestitures
|
(19,228)
|
|
(19,228)
|
|
-
|
|
SKU
rationalization
|
(43,422)
|
|
(35,550)
|
|
(7,872)
|
|
Net sales on a
constant currency basis adjusted for
divestitures and SKU rationalization - Nine months
ended 3/31/20
|
$
1,536,651
|
|
$
856,308
|
|
$
680,343
|
|
Net sales
growth on a constant currency basis adjusted for
divestitures and SKU rationalization
|
1.6%
|
|
2.0%
|
|
1.1%
|
|
|
|
|
|
|
|
Adjusted EBITDA
Growth at Constant Currency
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
North
America
|
|
International
|
|
Adjusted EBITDA
- Three months ended 3/31/20
|
$
60,690
|
|
$
42,920
|
|
$
30,927
|
|
Impact of
foreign currency exchange
|
880
|
|
63
|
|
818
|
|
Adjusted EBITDA
on a constant currency basis -
Three months ended 3/31/20
|
$
61,570
|
|
$
42,983
|
|
$
31,745
|
|
|
|
|
|
|
|
Net sales on a
constant currency basis -
Three months ended 3/31/20
|
$
558,869
|
|
$
320,917
|
|
$
237,952
|
|
Adjusted EBITDA
growth on a constant currency basis
|
11.0%
|
|
13.4%
|
|
13.3%
|
|
|
|
|
|
|
|
Hain
Consolidated
|
|
North
America
|
|
International
|
|
Adjusted EBITDA
- Nine months ended 3/31/20
|
$
137,828
|
|
$
97,101
|
|
$
75,787
|
|
Impact of
foreign currency exchange
|
2,215
|
|
86
|
|
2,129
|
|
Adjusted EBITDA
on a constant currency basis -
Nine months ended 3/31/20
|
$
140,043
|
|
$
97,187
|
|
$
77,916
|
|
|
|
|
|
|
|
Net sales on a
constant currency basis -
Nine months ended 3/31/20
|
$
1,561,436
|
|
$
873,598
|
|
$
687,838
|
|
Adjusted EBITDA
growth on a constant currency basis
|
9.0%
|
|
11.1%
|
|
11.3%
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
|
Segment EBITDA and
Adjusted EBITDA
|
|
Three Months
Ended
|
|
(unaudited and in
thousands)
|
|
|
|
|
|
North
America
|
|
|
|
|
|
March 31,
2020
|
|
March 31,
2019
|
|
|
|
|
|
Operating
income
|
$
28,873
|
|
$
21,358
|
|
Depreciation and
amortization
|
4,240
|
|
4,246
|
|
Long-lived asset
impairment
|
2,303
|
|
-
|
|
Other
|
352
|
|
765
|
|
Productivity and
transformation costs
|
5,000
|
|
1,263
|
|
SKU rationalization
and inventory write-down
|
1,362
|
|
506
|
|
Warehouse/manufacturing facility start-up
costs
|
537
|
|
3,221
|
|
Loss on sale of
business
|
253
|
|
-
|
|
Plant closure related
costs
|
-
|
|
119
|
|
Adjusted
EBITDA
|
$
42,920
|
|
$
31,478
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
March 31,
2020
|
|
March 31,
2019
|
|
|
|
|
|
Operating
income
|
$
18,660
|
|
$
19,883
|
|
Depreciation and
amortization
|
7,993
|
|
7,699
|
|
Long-lived asset
impairment
|
3,571
|
|
-
|
|
Other
|
(238)
|
|
315
|
|
Productivity and
transformation costs
|
941
|
|
897
|
|
Plant closure related
costs
|
-
|
|
78
|
|
Adjusted
EBITDA
|
$
30,927
|
|
$
28,872
|
|
THE HAIN CELESTIAL
GROUP, INC.
|
|
Segment EBITDA and
Adjusted EBITDA
|
|
Nine Months
Ended
|
|
(unaudited and in
thousands)
|
|
|
|
|
|
North
America
|
|
|
|
|
|
March 31,
2020
|
|
March 31,
2019
|
|
|
|
|
|
Operating
income
|
$
64,067
|
|
$
35,427
|
|
Depreciation and
amortization
|
12,789
|
|
12,790
|
|
Long-lived asset
impairment
|
2,303
|
|
1,503
|
|
Other
|
180
|
|
1,330
|
|
Productivity and
transformation costs
|
7,500
|
|
4,784
|
|
SKU rationalization
and inventory write-down
|
5,099
|
|
2,036
|
|
Warehouse/manufacturing facility start-up
costs
|
3,055
|
|
9,528
|
|
Loss on sale of
business
|
2,036
|
|
-
|
|
Plant closure related
costs
|
72
|
|
1,079
|
|
Adjusted
EBITDA
|
$
97,101
|
|
$
68,477
|
|
|
|
|
|
|
|
|
|
International
|
|
|
|
|
|
March 31,
2020
|
|
March 31,
2019
|
|
|
|
|
|
Operating
Income
|
$
40,666
|
|
$
40,696
|
|
Depreciation and
amortization
|
24,258
|
|
23,373
|
|
Long-lived asset
impairment
|
3,571
|
|
4,305
|
|
Other
|
562
|
|
343
|
|
Productivity and
transformation costs
|
4,269
|
|
4,099
|
|
Plant closure related
costs
|
2,282
|
|
2,409
|
|
SKU rationalization
and inventory write-down
|
179
|
|
-
|
|
Litigation and
related expenses
|
-
|
|
19
|
|
Adjusted
EBITDA
|
$
75,787
|
|
$
75,244
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/hain-celestial-reports-third-quarter-fiscal-year-2020-financial-results-301054566.html
SOURCE The Hain Celestial Group, Inc.