Hain Celestial Announces Record Fourth Quarter And Fiscal Year 2015 Net Sales And Earnings Per Diluted Share

Fourth Quarter Net Sales Reach $698.1 Million, a 20% Increase

Fiscal Year Net Sales Reach $2.69 Billion, a 25% Increase

Adjusted Fiscal Year Net Sales Reach $2.71 Billion, a 26% Increase

Fourth Quarter Earnings Per Diluted Share $0.68, a 94% Increase

Adjusted Fourth Quarter Earnings Per Diluted Share $0.55, a 22% Increase

Fiscal Year Earnings Per Diluted Share $1.62, a 16% Increase

Adjusted Fiscal Year Earnings Per Diluted Share $1.88, an 18% Increase

Fiscal Year 2016 Guidance

Net Sales of $2.97 Billion to $3.11 Billion

$2.11 to $2.26 Earnings Per Diluted Share

Aug 18, 2015, 07:30 ET from The Hain Celestial Group, Inc.

LAKE SUCCESS, N.Y., Aug. 18, 2015 /PRNewswire/ -- The Hain Celestial Group, Inc. (NASDAQ: HAIN), a leading organic and natural products company with operations in North America, Europe and India providing consumers with A Healthier Way of Life™, today reported results for its fourth quarter and fiscal year ended June 30, 2015.

PERFORMANCE HIGHLIGHTS

Fourth Quarter Fiscal Year 2015

  • Record fourth quarter net sales of $698.1 million, a 20% increase over the prior year period;
  • Earnings per diluted share of $0.68, a 94% increase; adjusted earnings per diluted share of $0.55, a 22% increase;
  • Operating income of $74.7 million, 11% of net sales; adjusted operating income of $90.3 million, 13% of net sales.

Fiscal Year 2015

  • Record net sales of $2.69 billion, a 25% increase; adjusted net sales of $2.71 billion, adjusted for the nut butter voluntary recall in August 2014, a 26% increase over the prior year period;
  • Earnings per diluted share of $1.62, a 16% increase; adjusted earnings per diluted share of $1.88, an 18% increase;
  • Operating income of $237.7 million, 9% of net sales; adjusted operating income of $314.1 million, 12% of net sales.

"We ended the year with record net sales and earnings growth fueled by strong worldwide demand for our diverse portfolio of leading organic and natural brands across many product categories, sales channels and geographies," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial.  "We achieved these results while overcoming numerous challenges during the year including the largest voluntary recall in the Company's history, a fire that limited production for one of our largest brands and disruptions with some of our distributor and retail customers.  Our global team did a tremendous job in both the fourth quarter and fiscal year with product innovation, controlling expenses, improving productivity and successfully integrating acquisitions by leveraging our infrastructure."

Fourth Quarter 2015

Hain Celestial US reported record fourth quarter net sales of $332.8 million.  In the United Kingdom, net sales were $184.9 million, and the Rest of the World segment reported net sales of $62.0 million, which also includes the recently acquired Belvedere International, Inc. in Canada with its Live Clean® brand.  The Hain Pure Protein segment (HPPC) reported net sales of $118.5 million, which includes the recently acquired Empire® brand of kosher foods.  The Company had strong brand sales in constant currency led by certain global brands including Terra®, Tilda®, Imagine®, Earth's Best®, Avalon Organics® and Alba Botanica® with strong performance from Frank Cooper's®, Bearitos®, Rosetto®, Danival®, Lima®, Sensible Portions®, Hain Pure Foods® and Spectrum®.  Net sales of Rudi's Organic Bakery®, Plainville Farms®, FreeBird®, Empire®, Kosher Valley® and Live Clean® brands acquired during or after the fourth quarter of fiscal year 2014 also contributed to the growth.

The Company earned net income from continuing operations of $71.1 million, a 99% increase, and adjusted net income of $57.2 million, a 24% increase, compared to the prior year fourth quarter.  Earnings per diluted share for the fourth quarter were $0.68, a 94% increase versus the prior year period, which includes a $20.7 million tax benefit resulting from an election made during the quarter to change the tax status of one of the Company's international subsidiaries.  On an adjusted basis earnings per diluted share for the fourth quarter were $0.55, a 22% increase.  Refer to Non-GAAP Financial Measures in this press release for adjustments.

Fiscal Year 2015

Hain Celestial US reported record net sales of $1.367 billion.  In the United Kingdom, net sales were $736.0 million, and the Rest of World segment reported net sales of $226.5 million.  Rest of World includes the recently acquired Live Clean® brand.  HPPC, which includes the recently acquired Empire® brand of kosher foods, reported net sales of $358.6 million.  The Company had strong brand sales in constant currency led by global brands including Sensible Portions®, Natumi®, Terra®, Danival®, Garden of Eatin'®, Earth's Best®, Avalon Organics®, Alba Botanica® and Jason® with strong performance from Bearitos®, Westbrae® Earth's Best® and Frank Cooper's®.  Net sales of Plainville Farms®, FreeBird®, Empire®, Kosher Valley® and Live Clean® brands acquired after fiscal year 2014 also contributed to the growth.

The Company earned net income from continuing operations of $167.9 million, a 19% increase, and adjusted net income of $193.9 million, a 22% increase, for the fiscal year.  Earnings per diluted share for the fiscal year were $1.62, a 16% increase, and on an adjusted basis were $1.88, an 18% increase.  Refer to Non-GAAP Financial Measures in this press release for adjustments.   

Fiscal Year 2015 Achievements

The Company highlighted several of its accomplishments during fiscal year 2015:

  • Completed three strategic acquisitions:
    • Hain Pure Protein Corporation (Plainville Farms® and FreeBird® brands);
    • EK Holdings, Inc. (Empire® Kosher and Kosher Valley® brands);
    • Belvedere International, Inc. (Live Clean® brand);
  • Worldwide sales reached a record $2.7 billion;
  • Achieved record adjusted EBITDA of $375 million;
  • Hain Celestial US consumption measured by Nielsen of top 200 SKUs was up 11% with distribution up 5%;
  • Introduced over 200 new innovative products worldwide;
  • Delivered in excess of $55 million in worldwide productivity savings.

"Our outlook for growth in fiscal 2016 and beyond remains robust. We believe Hain Celestial is well-positioned as the consumption of branded organic and natural products continues to rise and our distribution footprint further evolves on a global basis in both new and existing markets across our broad network of sales channels," concluded Irwin Simon.

Fiscal Year 2016 Guidance

The Company provided annual guidance for fiscal year 2016: 

  • Total net sales range of $2.97 billion to $3.11 billion, an increase of approximately 10% to 15% as compared to fiscal year 2015;
  • Earnings range of $2.11 to $2.26 per diluted share, an increase of 12% to 20% as compared to fiscal year 2015.

Guidance is provided for continuing operations on a non-GAAP basis and excludes acquisition-related expenses, integration and restructuring charges, start-up costs, unrealized net foreign currency gains or losses, reserves for litigation matters and other non-recurring items, including any product recalls or market withdrawals, that have been or may be incurred during the Company's fiscal year 2016, which the Company will continue to identify as it reports its future financial results.  Guidance excludes the impact of any future acquisitions.  

Segment Results

The Company's operations are managed into the following segments:  United States, United Kingdom, HPPC and Rest of World (comprised of Canada and Continental Europe). 

The following is a summary of three months and twelve months results by reportable segment:

(dollars in thousands)

United

States

United Kingdom

Hain Pure Protein

Rest of

World

Corporate/ Other

Total

NET SALES

Net sales -

Three months ended 6/30/15

$          332,776

$          184,852

$          118,504

$            62,004

$                       -

$          698,136

Net sales -

Three months ended 6/30/14

$          322,984

$          200,469

$                      -

$            60,375

$                       -

$          583,828

% change -

FY'15 net sales vs. FY'14 net sales *

3.0%

-7.8%

2.7%

19.6%

* The calculated % change does not reflect the impact of the nut butter recall or foreign currency translation as compared to the prior period.

OPERATING INCOME

Three months ended 6/30/15

Operating income

$            58,870

$            16,604

$              9,974

$              5,778

$           (16,514)

$            74,712

Non-GAAP Adjustments (1)

$              3,364

$              3,256

$                 119

$                      -

$               8,869

$            15,608

Adjusted operating income

$            62,234

$            19,860

$            10,093

$              5,778

$             (7,645)

$            90,320

Adjusted operating income margin

18.7%

10.7%

8.5%

9.3%

12.9%

Three months ended 6/30/14

Operating income

$            46,286

$            20,383

$                       -

$              5,387

$           (12,033)

$            60,023

Non-GAAP Adjustments (1)

$              6,000

$              7,302

$                       -

$                      -

$                  583

$            13,885

Adjusted operating income

$            52,286

$            27,685

$                       -

$              5,387

$           (11,450)

$            73,908

Adjusted operating income margin

16.2%

13.8%

8.9%

12.7%

(1) See accompanying table of "Reconciliation of GAAP Results to Non-GAAP Measures"

(dollars in thousands)

United

States

United Kingdom

Hain Pure Protein

Rest of

World

Corporate/ Other

Total

NET SALES

Net sales -

Twelve months ended 6/30/15

$       1,367,388

$          735,996

$          358,582

$          226,549

$                       -

$       2,688,515

Non-GAAP Adjustments (1)

$            15,773

$                      -

$                      -

$                 928

$                       -

$            16,701

Adjusted net sales - Twelve months ended 6/30/15

$       1,383,161

$          735,996

$          358,582

$          227,477

$                       -

$       2,705,216

Net sales - Twelve months ended 6/30/14 (2)

$       1,282,175

$          637,454

$                       -

$          233,982

$                       -

$       2,153,611

% change - FY'15 adjusted net sales vs. FY'14 net sales

7.9%

15.5%

-2.8%

25.6%

OPERATING INCOME

Twelve months ended 6/30/15

Operating income

$          199,901

$            46,222

$            26,479

$            16,438

$           (51,295)

$          237,745

Non-GAAP Adjustments (1)

$            36,910

$            15,258

$                 259

$              2,187

$            21,690

$            76,304

Adjusted operating income

$          236,811

$            61,480

$            26,738

$            18,625

$           (29,605)

$          314,049

Adjusted operating income margin

17.1%

8.4%

7.5%

8.2%

11.6%

Twelve months ended 6/30/14

Operating income

$          205,864

$            52,661

$                       -

$            16,931

$           (47,719)

$          227,737

Non-GAAP Adjustments (1)

$              6,482

$              9,510

$                       -

$                 866

$            11,449

$            28,307

Adjusted operating income

$          212,346

$            62,171

$                       -

$            17,797

$           (36,270)

$          256,044

Adjusted operating income margin

16.6%

9.8%

7.6%

11.9%

(1) See accompanying table of "Reconciliation of GAAP Results to Non-GAAP Measures"

(2) There were no non-GAAP adjustments to net sales for the twelve months ended 6/30/14

Webcast

Hain Celestial will host a conference call and webcast at 8:30 AM Eastern Time today to review its fourth quarter and fiscal year 2015 results.  The conference call will be webcast and available under the Investor Relations section of the Company's website at www.hain.com.

The Hain Celestial Group, Inc.

The Hain Celestial Group (NASDAQ: HAIN), headquartered in Lake Success, NY, is a leading organic and natural products company with operations in North America, Europe and India.  Hain Celestial participates in many natural categories with well-known brands that include Celestial Seasonings®, Earth's Best®, Ella's Kitchen®, Terra®, Garden of Eatin'®, Sensible Portions®, Health Valley®, Arrowhead Mills®, MaraNatha®, SunSpire®, DeBoles®, Casbah®, Rudi's Organic Bakery®, Gluten Free Café™, Hain Pure Foods®, Spectrum®, Spectrum Essentials®, Walnut Acres Organic®, Imagine®, Almond Dream®, Rice Dream®, Soy Dream®, WestSoy®, The Greek Gods®, BluePrint®, FreeBird®, Plainville Farms®, Empire®, Kosher Valley®, Yves Veggie Cuisine®, Europe's Best®, Cully & Sully®, New Covent Garden Soup Co.®, Johnson's Juice Co.®, Farmhouse Fare®, Hartley's®, Sun-Pat®, Gale's®, Robertson's®, Frank Cooper's®, Linda McCartney®, Lima®, Danival®, Joya®, Natumi®, GG UniqueFiber®, Tilda®, JASON®, Avalon Organics®, Alba Botanica®, Live Clean® and Queen Helene®.  Hain Celestial has been providing A Healthier Way of Life™ since 1993.  For more information, visit www.hain.com.

Safe Harbor Statement

Certain statements contained in this press release constitute "forward-looking statements" under the Private Securities Litigation Reform Act of 1995.  Words such as "plan," "continue," "expect," "expected," "anticipate," "intend", "estimate," "believe," "seek", "may," "potential," "can," "positioned," "should," "future," "look forward", "outlook", and similar expressions, or the negative of those expressions, may identify forward-looking statements.  These forward-looking statements include the Company's beliefs or expectations relating to (i) the Company's guidance for net sales and earnings per diluted share for fiscal year 2016 and (ii) growth trends and distribution opportunities.  Such forward-looking statements involve known and unknown risks, uncertainties, and other factors which may cause the Company's 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.  Such factors include, among others, the Company's ability to achieve its guidance for net sales and earnings per diluted share in fiscal year 2016 given the economic environment in the U.S. and other markets that it sells products as well as economic, political and business conditions generally and their effect on the Company's customers and consumers' product preferences, and the Company's business, financial condition and results of operations; changes in estimates or judgments related to the Company's impairment analysis of goodwill and other intangible assets, as well as with respect to the Company's valuation allowances of its deferred tax assets; the Company's ability to implement its business and acquisition strategy; the ability of the Company's joint venture investment to successfully execute its business plan; the Company's ability to realize sustainable growth generally and from investments in core brands, offering new products and its focus on cost containment, productivity, cash flow and margin enhancement in particular; the Company's ability to effectively integrate its acquisitions; the Company's ability to successfully consummate its proposed divestitures; the effects on the Company's results of operations from the impacts of foreign exchange; competition; the success and cost of introducing new products as well as the Company's ability to increase prices on existing products; availability and retention of key personnel; the Company's reliance on third party distributors, manufacturers and suppliers; the Company's ability to maintain existing customers and secure and integrate new customers; the Company's ability to respond to changes and trends in customer and consumer demand, preferences and consumption; risks associated with international sales and operations; changes in fuel, raw material and commodity costs; changes in, or the failure to comply with, government laws and regulations; the availability of organic and natural ingredients; the loss of one or more of the Company's manufacturing facilities; independent co-packers or distribution centers; the ability to manage the Company's supply chain effectively; the ability to use the Company's trademarks; reputational damage; product liability; outbreaks of diseases or food-borne illnesses; product recall or market withdrawal; seasonality; litigation; the Company's reliance on its information technology systems; and the other risks detailed from time-to-time in the Company's reports filed with the  Securities and Exchange Commission, including the annual report on Form 10-K for the fiscal year ended June 30, 2014.  As a result of the foregoing and other factors, no assurance can be given as to future results, levels of activity and achievements and neither the Company nor any person assumes responsibility for the accuracy and completeness of these statements.

Non-GAAP Financial Measures

This press release and the accompanying tables include non-GAAP financial measures, including adjusted operating income, adjusted income from continuing operations, adjusted income per diluted share from continuing operations, adjusted EBITDA (defined below) 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 twelve months ended June 30, 2015 and 2014 and in the paragraphs below.  Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company's operations and are useful for period-over-period comparisons of operations.  These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures.  In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded.  They should be read only in connection with the Company's Consolidated Statements of Income presented in accordance with GAAP. 

The Company defines adjusted EBITDA as net income (a GAAP measure) before income taxes, net interest expense, depreciation and amortization, impairment of long lived assets, equity in the earnings of non-consolidated affiliates, stock based compensation, acquisition-related expenses, including integration and restructuring charges, and other non-recurring items.  The Company's management believes that this presentation provides 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 this measure for reviewing the financial results of the Company and as a component of performance-based executive compensation. 

For the three and twelve months ended June 30, 2015 and 2014, adjusted EBITDA was calculated as follows:

3 Months Ended

12 Months Ended

6/30/2015

6/30/2014

6/30/2015

6/30/2014

(dollars in thousands)

Net Income

$               71,072

$               35,724

$             167,896

$             139,851

Income taxes

2,739

21,851

47,883

70,098

Interest expense,

 net

5,726

5,791

23,369

21,985

Depreciation and

 amortization

13,523

13,443

56,587

48,040

Impairment of long

 lived assets

-

-

6,514

-

Equity in earnings

 of affiliates

(174)

(1,857)

(489)

(3,985)

Stock based

 compensation

3,263

2,792

12,197

12,449

Subtotal

96,149

77,744

313,957

288,438

Adjustments (a)

15,608

13,885

61,536

29,937

Adjusted EBITDA

$             111,757

$               91,629

$             375,493

$             318,375

(a) The adjustments include all adjustments in the table "Reconciliation of GAAP Results to Non-GAAP Measures" except for unrealized currency impacts, gain on disposal of investment held for sale, interest accretion, other items, net and taxes.

The Company defines Operating Free Cash Flow as cash provided from or used in operating activities (a GAAP measure) less capital expenditures.  The Company views operating free cash flow as an important measure because it is one factor in evaluating the amount of cash available for discretionary investments.  For the fiscal years ended June 30, 2015 and 2014, operating free cash flow was calculated as follows:

Fiscal Year  Ended

6/30/2015

6/30/2014

(dollars in thousands)

Cash flow provided by operating activities

$

185,482

$

184,768

Purchases of property, plant and equipment

(51,217)

(41,611)

Operating free cash flow

$

134,265

$

143,157

Operating free cash flow for the fiscal year ended June 30, 2015 was $134.3 million, compared to $143.2 million in the prior year period.  Our current period operating free cash flow was impacted primarily by the effects of the nut butter voluntary recall and higher capital expenditures.

 

 

THE HAIN CELESTIAL GROUP, INC.

Consolidated Balance Sheets

(In thousands)

June 30, 2015

June 30, 2014

 (Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

$            166,922

$          123,751

Accounts receivable, net

320,197

287,915

Inventories

382,211

320,251

Deferred income taxes

20,758

23,780

Prepaid expenses and other current assets

42,931

47,906

Total current assets

933,019

803,603

Property, plant and equipment, net

344,262

310,661

Goodwill, net

1,136,079

1,134,368

Trademarks and other intangible assets, net

647,754

651,482

Investments and joint ventures

2,305

36,511

Other assets

33,851

28,692

Total assets

$         3,097,270

$       2,965,317

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

$            251,999

$          239,162

Accrued expenses and other current liabilities

79,167

84,906

Current portion of long-term debt

31,275

100,096

Total current liabilities

362,441

424,164

Long-term debt, less current portion

812,608

767,827

Deferred income taxes

145,297

148,439

Other noncurrent liabilities

5,237

5,020

Total liabilities

1,325,583

1,345,450

Stockholders' equity:

Common stock *

1,058

1,031

Additional paid-in capital *

1,073,671

969,182

Retained earnings

797,514

629,618

Accumulated other comprehensive income (loss)

(42,406)

60,128

  Subtotal

1,829,837

1,659,959

Treasury stock

(58,150)

(40,092)

Total stockholders' equity

1,771,687

1,619,867

Total liabilities and stockholders' equity

$         3,097,270

$       2,965,317

*

Amounts as of June 30, 2014 have been retroactively adjusted to reflect a two-for-one

stock split of our common stock in the form of a 100% stock dividend.

 

 

 

THE HAIN CELESTIAL GROUP, INC.

 Consolidated Statements of Income

 (in thousands, except per share amounts)

Three Months Ended June 30,

Twelve Months Ended June 30,

2015

2014

2015

2014

(Unaudited)

(Unaudited)

(Unaudited)

Net sales

$       698,136

$       583,828

$    2,688,515

$    2,153,611

Cost of sales

530,439

431,628

2,069,898

1,586,418

Gross profit

167,697

152,200

618,617

567,193

Selling, general and administrative expenses

85,903

84,195

348,517

311,288

Amortization/impairment of acquired intangibles

4,494

4,352

23,495

15,600

Acquisition related expenses including integration and    restructuring charges, net

2,588

3,630

8,860

12,568

Operating income

74,712

60,023

237,745

227,737

Interest expense and other expenses, net

1,075

4,304

22,455

20,143

Income before income taxes and equity in earnings of    equity-method investees

73,637

55,719

215,290

207,594

Income tax provision

2,739

21,852

47,883

70,099

(Income) of equity-method investees, net of tax

(174)

(1,857)

(489)

(3,985)

Income from continuing operations

71,072

35,724

167,896

141,480

Loss from discontinued operations, net of tax

-

-

-

(1,629)

Net income

$         71,072

$         35,724

$       167,896

$       139,851

Basic net income per share *:

     From continuing operations

$             0.69

$             0.36

$             1.65

$             1.45

     From discontinued operations

-

-

-

(0.02)

Net income per share - basic

$             0.69

$             0.36

$             1.65

$             1.43

Diluted net income per share *:

     From continuing operations

$             0.68

$             0.35

$             1.62

$             1.42

     From discontinued operations

-

-

-

(0.02)

Net income per share - diluted

$             0.68

$             0.35

$             1.62

$             1.40

Weighted average common shares outstanding *:

Basic

102,610

100,158

101,703

97,750

Diluted

104,005

102,288

103,421

100,006

*  Share and per share amounts for the three and twelve months ended June 30, 2014 have been retroactively adjusted to reflect

    a two-for-one stock split of our common stock in the form of a 100% stock dividend.

 

 

 

THE HAIN CELESTIAL GROUP, INC.

 Reconciliation of GAAP Results to Non-GAAP Measures

 (in thousands, except per share amounts)

Three Months Ended June 30,

2015 GAAP

Adjustments

2015 Adjusted

2014 Adjusted

(Unaudited)

Net sales

$        698,136

$                -

$      698,136

$       583,828

Cost of sales

530,439

(6,343)

524,096

421,764

Gross profit

167,697

6,343

174,040

162,064

Selling, general and administrative expenses

85,903

(6,677)

79,226

83,804

Amortization/impairment of acquired intangibles

4,494

-

4,494

4,352

Acquisition related expenses including integration and    restructuring charges, net

2,588

(2,588)

-

-

Operating income

74,712

15,608

90,320

73,908

Interest expense and other expenses, net

1,075

5,559

6,634

5,651

Income before income taxes and equity in earnings of    equity-method investees

73,637

10,049

83,686

68,257

Income tax provision

2,739

23,920

26,659

23,189

(Income) of equity-method investees, net of tax

(174)

-

(174)

(976)

Income from continuing operations

$        71,072

$     (13,871)

$        57,201

$        46,044

Income per share from continuing operations - basic *

$            0.69

$         (0.13)

$            0.56

$            0.46

Income per share from continuing operations - diluted *

$            0.68

$         (0.13)

$            0.55

$            0.45

Weighted average common shares outstanding *:

Basic

102,610

102,610

100,158

Diluted

104,005

104,005

102,288

FY 2015

FY 2014

Impact on Income Before Income Taxes

Impact on Income Tax Provision

Impact on Income Before Income Taxes

Impact on Income Tax Provision

(Unaudited)

Nut butter recall

$         2,004

$          761

$        6,000

$       2,179

UK factory start-up costs

2,900

602

2,882

656

BluePrint and other integration costs

1,439

548

982

223

    Cost of sales

6,343

1,911

9,864

3,058

Litigation expenses

6,312

2,399

391

148

Other integration costs

365

81

-

-

    Selling, general and administrative expenses

6,677

2,480

391

148

Acquisition related fees and expenses, integration and    restructuring charges

2,588

768

5,310

1,477

Contingent consideration income

-

-

(1,680)

(638)

    Acquisition related expenses including integration and      restructuring charges, net

2,588

768

3,630

839

Unrealized currency impacts

(5,559)

(1,909)

(570)

(182)

Gain on disposal of investment held for sale

-

-

(809)

(307)

Interest accretion and other items, net

-

-

32

7

    Interest expense and other expenses, net

(5,559)

(1,909)

(1,347)

(482)

Net loss from Hutchison Hain Organic Holdings Limited    discontinued operation

-

-

(881)

-

    (Income) of equity-method investees, net of tax

-

-

(881)

-

Gain on tax restructuring

-

20,670

-

-

Valuation allowances due to factory start-up costs

-

-

-

(2,226)

    Income tax provision

-

20,670

-

(2,226)

        Total adjustments

$       10,049

$       23,920

$      11,657

$         1,337

*  Share and per share amounts for the three months ended June 30, 2014 have been retroactively adjusted to reflect

    a two-for-one stock split of our common stock in the form of a 100% stock dividend.

 

 

 

THE HAIN CELESTIAL GROUP, INC.

 Reconciliation of GAAP Results to Non-GAAP Measures

 (in thousands, except per share amounts)

Twelve Months Ended June 30,

2015 GAAP

Adjustments

2015 Adjusted

2014 Adjusted

(Unaudited)

Net sales

$      2,688,515

$         16,701

$        2,705,216

$     2,153,611

Cost of sales

2,069,898

(31,402)

2,038,496

1,572,517

Gross profit

618,617

48,103

666,720

581,094

Selling, general and administrative expenses

348,517

(13,831)

334,686

309,450

Amortization/impairment of acquired intangibles

23,495

(5,510)

17,985

15,600

Acquisition related expenses including integration and    restructuring charges, net

8,860

(8,860)

-

-

Operating income

237,745

76,304

314,049

256,044

Interest expense and other expenses, net

22,455

3,093

25,548

24,575

Income before income taxes and equity in earnings of    equity-method investees

215,290

73,211

288,501

231,469

Income tax provision

47,883

47,177

95,060

76,153

(Income) of equity-method investees, net of tax

(489)

-

(489)

(3,262)

Income from continuing operations

$       167,896

$         26,034

$       193,930

$     158,578

Income per share from continuing operations - basic *

$             1.65

$             0.26

$             1.91

$           1.62

Income per share from continuing operations - diluted *

$             1.62

$             0.26

$             1.88

$           1.59

Weighted average common shares outstanding *:

Basic

101,703

101,703

97,750

Diluted

103,421

103,421

100,006

FY 2015

FY 2014

Impact on Income Before Income Taxes

Impact on Income Tax Provision

Impact on Income Before Income Taxes

Impact on Income Tax Provision

(Unaudited)

Nut butter recall

$         15,773

$            5,994

$                 -

$                 -

European non-dairy beverage withdrawal

928

316

-

-

    Net sales

16,701

6,310

-

-

Nut butter recall

13,574

5,158

6,000

2,179

European non-dairy beverage withdrawal

1,259

428

-

-

Fakenham allowance for fire

900

187

-

-

Acquisition related integration costs

4,236

1,365

4,102

1,037

UK factory start-up costs

11,433

2,372

3,362

765

Co-pack contract termination costs

-

-

437

166

    Cost of sales

31,402

9,510

13,901

4,147

Nut butter recall

4,909

1,864

-

-

Litigation expenses

7,203

2,751

1,614

613

Tilda insurance consultancy and other start-up/integration costs

1,719

420

-

-

Expenses related to third party sale of common stock

-

-

224

85

    Selling, general and administrative expenses

13,831

5,035

1,838

698

Tradename impairment charge

5,510

1,102

-

-

    Amortization/impairment of acquired intangibles

5,510

1,102

-

-

Acquisition related fees and expenses, integration and    restructuring charges

8,579

2,868

16,184

5,272

Contingent consideration (income) expense, net

281

-

(3,616)

(1,755)

    Acquisition related expenses including integration and      restructuring charges, net

8,860

2,868

12,568

3,517

Unrealized currency impacts

5,398

1,652

(3,511)

(1,442)

Gain on pre-existing investments in HPPC and Empire Kosher

(8,256)

-

-

-

Gain on disposal of investment held for sale

(314)

-

(1,510)

(573)

Interest accretion and other items, net

79

30

589

191

    Interest expense and other expenses, net

(3,093)

1,682

(4,432)

(1,824)

Net income from Hutchison Hain Organic Holdings Limited discontinued operation

-

-

(881)

-

Hain Pure Protein Corporation mortality losses

-

-

158

-

    (Income) of equity-method investees, net of tax

-

-

(723)

-

Gain on tax restructuring

-

20,670

-

-

Change in valuation allowance

-

-

-

(2,226)

Discrete tax benefit resulting from enacted tax rate change

-

-

-

3,777

Change in unrecognized tax benefits

-

-

-

(550)

Nondeductible acquisition related transaction expenses

-

-

-

(1,485)

    Income tax provision

-

20,670

-

(484)

        Total adjustments

$         73,211

$          47,177

$        23,152

$       6,054

*  Share and per share amounts for the twelve months ended June 30, 2014 have been retroactively adjusted to reflect

    a two-for-one stock split of our common stock in the form of a 100% stock dividend.

Logo - http://photos.prnewswire.com/prnh/20130502/NY06743LOGO

SOURCE The Hain Celestial Group, Inc.



RELATED LINKS

http://www.hain-celestial.com