NBTY Announces Intention to Reprice and Amend Its Existing Senior Credit Facility; Provides Financial Guidance for First Quarter 2011
RONKONKOMA, N.Y., Feb. 7, 2011 /PRNewswire/ -- NBTY, Inc. (www.NBTY.com) today announced that the Company will be entering into discussions with a syndicate of banks and financial institutions in connection with a repricing and amendment to certain other terms of its existing senior credit facility entered into in October 2010 in connection with its merger with an affiliate of The Carlyle Group. The transaction is expected to be completed during the Company's second fiscal quarter.
NBTY also announced that, in advance of these discussions, the Company is providing guidance that sales for the fiscal quarter ended December 31, 2010 were approximately $740 million, Consolidated EBITDA (as defined in the Company's existing Credit Agreement) for the fiscal quarter ended December 31, 2010 was approximately $150 million, capital expenditures for the fiscal quarter ended December 31, 2010 were approximately $12 million, cash and cash equivalents at December 31, 2010 were approximately $147 million, and total debt at December 31, 2010 was approximately $2,400 million. The Company expects to post the financial results for its first fiscal quarter of 2011 on its web site by February 14, 2011.
NBTY, Inc. (www.NBTY.com) is the leading vertically integrated manufacturer, marketer, distributor and retailer of high-quality vitamins, nutritional supplements and related products in the United States, with operations worldwide. Under a number of NBTY and third party brands, the Company offers over 25,000 products, including products marketed by the Company's Nature's Bounty® (http://www.naturesbounty.com), Vitamin World® (http://www.vitaminworld.com), Puritan's Pride® (http://www.puritan.com), Holland & Barrett® (http://www.hollandandbarrett.com), Rexall® (http://www.rexall.com), Sundown® (http://www.sundownnaturals.com), MET-Rx® (http://www.metrx.com), Worldwide Sport Nutrition® (http://www.sportnutrition.com), American Health® (http://www.americanhealthus.com), GNC (UK)® (http://www.gnc.co.uk), DeTuinen® (http://www.detuinen.nl), LeNaturiste™ (http://www.lenaturiste.com), SISU® (http://www.sisu.com), Solgar® (http://www.solgar.com), Good 'n' Natural® (http://www.goodnnatural.com), Home Health™ (http://www.homehealthus.com), Julian Graves, Ester-C® (http://www.ester-c.com) and Natural Wealth (http://www.naturalwealth.com) brands. NBTY routinely posts information that may be important to investors on its website.
This release refers to non-GAAP financial measures, such as Consolidated EBITDA (as defined in the Company's existing Credit Agreement). This non-GAAP financial measure is not prepared in accordance with generally accepted accounting principles and may be different from non-GAAP financial measures used by other companies. Non-GAAP financial measures should not be considered in isolation or as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. Management believes the presentation of Consolidated EBITDA is relevant and useful because Consolidated EBITDA is a measurement industry analysts utilize when evaluating NBTY's operating performance. Management also believes while Consolidated EBITDA may have limitations as an analytical tool, it enhances an investor's understanding of NBTY's results of operations because it measures NBTY's operating performance exclusive of interest and non-cash charges for depreciation and amortization. Management also provides this non-GAAP measurement as a way to help investors better understand its core operating performance, enhance comparisons of NBTY's core operating performance from period to period and to allow better comparisons of NBTY's operating performance to that of its competitors.
This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to NBTY and its business. These forward-looking statements can be identified by the use of terminology such as "subject to," "believe," "expects," "plan," "project," "estimate," "intend," "may," "will," "should," "can," or "anticipates," or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy. Although all of these forward looking statements are believed to be reasonable, they are inherently uncertain. Factors which may materially affect such forward-looking statements include, but are not limited to (i) slow or negative growth in the nutritional supplement industry; (ii) interruption of business or negative impact on sales and earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil unrest or disruption of mail service; (iii) adverse publicity regarding nutritional supplements; (iv) inability to retain customers of companies (or mailing lists) recently acquired; (v) increased competition; (vi) increased costs; (vii) loss or retirement of key members of management; (viii) increases in the cost of borrowings and/or unavailability of additional debt or equity capital; (ix) unavailability of, or inability to consummate, advantageous acquisitions in the future, including those that may be subject to bankruptcy approval or the inability of NBTY to integrate acquisitions into the mainstream of its business; (x) changes in general worldwide economic and political conditions in the markets in which NBTY may compete from time to time; (xi) the inability of NBTY to gain and/or hold market share of its wholesale and/or retail customers anywhere in the world; (xii) unavailability of electricity in certain geographical areas; (xiii) the inability of NBTY to obtain and/or renew insurance and/or the costs of the same; (xiv) exposure to and expense of defending and resolving product liability and intellectual property claims and other litigation; (xv) the ability of NBTY to successfully implement its business strategy; (xvi) the inability of NBTY to manage its retail, wholesale, manufacturing and other operations efficiently; (xvii) consumer acceptance of NBTY's products; (xviii) the inability of NBTY to renew leases for its retail locations; (xix) the inability of NBTY's retail stores to attain or maintain profitability; (xx) the absence of clinical trials for many of NBTY's products; (xxi) sales and earnings volatility and/or trends for the Company and its market segments; (xxii) the efficacy of NBTY's Internet and on-line sales and marketing strategies; (xxiii) fluctuations in foreign currencies, including the British pound, the Euro, the Canadian dollar and the Chinese yuan; (xxiv) import-export controls on sales to foreign countries; (xxv) the inability of NBTY to secure favorable new sites for, and delays in opening, new retail and manufacturing locations; (xxvi) introduction of and compliance with new federal, state, local or foreign legislation or regulation or adverse determinations by regulators anywhere in the world (including the banning of products) and more particularly Good Manufacturing Practices in the United States, the Food Supplements Directive and Traditional Herbal Medicinal Products Directive in Europe and Section 404 requirements of the Sarbanes-Oxley Act of 2002; (xxvii) the mix of NBTY's products and the profit margins thereon; (xxviii) the availability and pricing of raw materials; (xxix) risk factors discussed in NBTY's filings with the U.S. Securities and Exchange Commission; (xxx) adverse effects on NBTY as a result of increased energy prices and potentially reduced traffic flow to NBTY's retail locations; (xxxi) adverse tax determinations; (xxxii) the loss of a significant customer of the Company; (xxxiii) potential investment losses as a result of liquidity conditions; and (xxxiv) other factors beyond the Company's control.
Readers are cautioned not to place undue reliance on forward-looking statements. NBTY cannot guarantee future results, trends, events, levels of activity, performance or achievements. NBTY does not undertake and specifically declines any obligation to update, republish or revise forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrences of unanticipated events.
Consequently, such forward-looking statements should be regarded solely as NBTY's current plans, estimates and beliefs.
President & Chief Financial Officer
SOURCE NBTY, Inc.