2014

Vitamin Shoppe, Inc. Announces Fiscal Fourth Quarter and Year End 2009 Results - Comparable store sales growth of 7.0% for the fiscal fourth quarter 2009 versus the same quarter last year; net sales up 13.5%

- Income from operations increased 17.8%

- Operated 438 stores versus 401 stores compared to the prior year

- Completion of tender offer for $44.9 million of outstanding floating rate notes in the fourth quarter

NORTH BERGEN, N.J., Feb. 17 /PRNewswire-FirstCall/ -- Vitamin Shoppe, Inc. (NYSE: VSI), a leading specialty retailer and direct marketer of nutritional products, today announced its preliminary (unaudited) results for its fiscal fourth quarter and year ended December 26, 2009.  

"We are pleased to post record results in our business for the fourth quarter and the 2009 fiscal year," said Rick Markee, Chairman and Chief Executive Officer of Vitamin Shoppe, Inc. "Vitamin Shoppe's comparable store sales increased 7.0%, making this our 17th consecutive quarter of comparable same-store sales growth.  Vitamin Shoppe continues to demonstrate its ability to grow both sales and net income amidst broader economic conditions that remain challenging."

Fiscal Fourth Quarter 2009 Results

Net sales increased $19.3 million, or 13.5%, to $162.4 million for the three months ended December 26, 2009, compared with $143.1 million for the three months ended December 27, 2008. The increase was primarily the result of an increase in comparable store sales, new sales from non-comparable stores and a slight increase in direct sales.

The Company operated 438 stores as of December 26, 2009 compared with 401 stores as of December 27, 2008.  Overall store sales for the three months ended December 26, 2009 rose due to an increase in non-comparable store sales of $10.5 million and an increase in comparable store sales of $8.6 million, or 7.0%.

Cost of goods sold, which includes product, warehouse and distribution and occupancy costs, increased $13.4 million, or 13.8%, to $110.6 million for the three months ended December 26, 2009 compared with $97.2 million for the three months ended December 27, 2008. The increase was primarily due to an increase in product costs and occupancy costs for the quarter ended December 26, 2009, as compared with the quarter ended December 27, 2008.

Gross profit increased $5.9 million, or 12.8%, to $51.8 million for the three months ended December 26, 2009, compared with $45.9 million for the three months ended December 27, 2008. Gross profit as a percentage of sales was 31.9% for the quarter ended December 26, 2009, compared with 32.1% for the comparable prior year period.  The change in gross margin reflects reduced vendor incentives associated with the reduced number of new stores opened in the fourth quarter of 2009 compared with 2008.

Selling, general and administrative expenses, including operating payroll and related benefits, advertising and promotion expense, depreciation and amortization, and other selling, general and administrative expenses, increased $3.9 million, or 10.0%, to $42.6 million for the three months ended December 26, 2009, compared with $38.7 million for the three months ended December 27, 2008.  Selling, general and administrative expenses as a percentage of net sales decreased to 26.2% for the three months ended December 26, 2009, compared with 27.1% for the comparable prior year period reflecting leverage resulting from the comparable store sales increase and good expense control.  

Related party expenses this quarter increased $0.8 million to $1.2 million as compared with $0.4 million for last year's quarter.  This was due primarily to the $750,000 one time management fee paid to Irving Place Capital associated with our initial public offering.

Income from operations increased $1.2 million, or 17.8%, to $8.0 million for the three months ended December 26, 2009, compared with $6.8 million for the three months ended December 27, 2008. Income from operations as a percentage of net sales increased to 4.9% for the three months ended December 26, 2009, compared with 4.7% for the comparable prior year period.

Net income increased to $1.9 million for the three months ended December 26, 2009, compared with $0.6 million for the three months ended December 27, 2008.  Net income for the current quarter includes a pretax loss on extinguishment of debt of $1.8 million. Net income for the current period also includes a $0.5 million tax benefit resulting from favorable developments on certain outstanding income tax matters and a true up of the tax provision for the full year.

Vitamin Shoppe continues to take steps to reduce its debt.  The Company completed a tender offer for approximately $44.9 million aggregate principal amount of its outstanding floating rate notes in the fourth quarter.  Subsequent to the end of the year, the Company also completed the previously announced redemption of an additional $20 million of the notes. Accordingly, the Company expects to report an additional pretax loss on extinguishment of debt of approximately $0.6 million in the first quarter of 2010.

Fiscal Year Ended December 26, 2009

Net sales increased $73.0 million, or 12.1%, to $674.5 million for the year ended December 26, 2009, compared with $601.5 million for the year ended December 27, 2008.  Comparable store sales for the year increased by 5.2%, marking the 16th consecutive year of positive growth.  Gross profit increased $21.0 million, or 10.7%, to $216.9 million versus $195.9 million for the prior year.  Income from operations increased $5.7 million, or 16.0%, to $41.3 million versus $35.6 million for the prior year.  Income from operations as a percentage of net sales increased to 6.1% versus 5.9%.  Net income was $12.7 million for the year ended December 26, 2009, compared with $8.2 million for the year ended December 27, 2008.  

2010 Outlook

The Company's outlook for 2010 continues to be positive.  Vitamin Shoppe expects:

  • to open approximately 42 new stores and spend approximately $22 million in total capital expenditures;
  • to achieve comparable store sales growth in line with continued industry growth in the mid-single digits;
  • to improve its operating margin largely reflecting leverage on selling, general and administrative expenses (including corporate and depreciation and amortization expense);
  • an effective tax rate of approximately 40%
  • diluted weighted average shares outstanding of 27.8 million
  • inventory growth at a rate less than total sales growth, and
  • to generate excess cash flow which, by the end of the year, would be used to continue to reduce debt and for store growth.

Conference Call

The Company will hold a conference call at 10:00 am Eastern Time today to discuss its fiscal fourth quarter and year end 2009 results.  The call can be accessed live over the phone by dialing 1-888-679-8035, or for international callers, 1-617-213-4848, passcode number 97909912. A replay will be available one hour after the call and can be accessed by dialing 1-888-286-8010 or for international callers, 1-617-801-6888. The passcode for the replay is 29924441. The replay will be available until February 24, 2010.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investor Relations section of the Company's website at www.vitaminshoppe.com. The on-line replay will be available beginning immediately following the call.

About Vitamin Shoppe, Inc.

Vitamin Shoppe is a leading specialty retailer and direct marketer of nutritional products based in North Bergen, New Jersey.  The company sells vitamins, minerals, nutritional supplements, herbs, sports nutrition formulas, homeopathic remedies, green living products, and health and beauty aids to customers located primarily in the United States.  The company carries national brand products as well as exclusive products under the Vitamin Shoppe, BodyTech, MD Select, and VS Basics proprietary brands.  The Vitamin Shoppe conducts business through more than 400 company-owned retail stores, national mail order catalogs, and websites, www.VitaminShoppe.com, www.Bodytech.com, and www.EcoShoppe.com and has a social community site at www.VSconnect.com.

Source: Vitamin Shoppe, Inc.

Certain statements herein are "forward-looking statements". Such forward-looking statements reflect the Company's current expectations or beliefs concerning future events and actual results of operations may differ materially from historical results or current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including the strength of the economy, changes in the overall level of consumer spending, the performance of the Company's products within the prevailing retail environment, trade restrictions, availability of suitable store locations at appropriate terms and other factors which are set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 26, 2009 and in all filings with the Securities Exchange Commission made by the Company subsequent to the filing of the Form 10-K. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise.

    
                                                              
                        VITAMIN SHOPPE, INC. AND SUBSIDIARY
    
                       CONSOLIDATED STATEMENTS OF OPERATIONS
                  (In thousands, except share and per share data)            
                                  (Unaudited)
                                                                             
                           Three Months Ended            Fiscal Year Ended 
                           ------------------            ----------------- 
                     December 26,   December 27,   December 26,   December 27,
                          2009           2008           2009           2008 
                          ----           ----           ----           ---- 
    Net sales          $162,398       $143,131       $674,495       $601,540 
    Cost of goods sold  110,639         97,234        457,573        405,659 
                        -------         ------        -------        ------- 
    Gross profit         51,759         45,897        216,922        195,881 
    Selling, general 
     and administrative 
     expenses            42,592         38,733        173,144        158,713 
    Related party 
     expenses             1,186            391          2,446          1,523 
                          -----            ---          -----          ----- 
    Income from 
     operations           7,981          6,773         41,332         35,645 
    Loss on extinguishment
     of debt              1,753              -          2,016              - 
    Interest income         (40)           (67)           (43)          (116)
    Interest expense      4,171          5,185         18,679         21,253 
                          -----          -----         ------         ------ 
    Income before 
     provision for 
     income taxes         2,097          1,655         20,680         14,508 
    Provision for income
     taxes                  234          1,059          8,014          6,341 
                            ---          -----          -----          ----- 
    Net income           $1,863           $596        $12,666         $8,167 
                                                                              
    Preferred stock                                                           
     dividends in arrears   893          2,526          7,692          9,279 
                            ---          -----          -----          ----- 
    Net income (loss)
     applicable to                                                            
     common stockholders   $970        $(1,930)        $4,974        $(1,112)
                           ====        =======         ======        ======= 
                                                                              
    Earnings per share:                                                       
    Weighted average                                                          
     shares outstanding:                                                      
       Basic         22,455,694     14,175,906     16,238,338     14,175,906 
       Diluted       23,607,922     14,175,906     17,748,371     14,175,906 
    Net income (loss)
     per share                                                                
       Basic              $0.04         $(0.14)         $0.31         $(0.08)
       Diluted            $0.04         $(0.14)         $0.28         $(0.08)
             
    
    The following presents adjusted net income and adjusted net income per
    share data, which excludes the impact of IPO related charges from
    historical net income and net income per share, and also reflects our
    current common share structure as if shares issued and converted during
    IPO were outstanding for the entire three months ended December 26, 2009. 
    Such data represents non-GAAP financial measures.  We believe such
    information is meaningful to readers of this press release as it
    quantifies the impact of certain IPO related charges and equity changes to
    our reported results.
                                                                               
    Adjusted earnings 
     per share: 
    Net income*          $1,863 
    Add back: 
        Loss on    
         extinguishment 
         of debt          1,753 
        Termination of 
         management
         services 
         agreement          750 
        Tax effect on                                                         
         above items       (971)                                             
                           ----                                              
    Adjusted net income  $3,395                                              
    Adjusted weighted 
     average shares 
     outstanding**:                                                           
       Basic         26,617,961                                              
       Diluted       27,418,342                                              
    Adjusted net 
     income per share                                                         
       Basic              $0.13                                              
       Diluted            $0.12                                              
    
    *  excludes preferred dividends in arrears
    ** adjusted weighted average shares outstanding takes into effect the
       impact of the shares issued under the IPO,  and conversion of warrants 
       and preferred stock into common shares, as if these transactions
       occurred at September 27, 2009. 
    
    
    
    Key Performance Indicators and Statistics:
    
    (In thousands, except store data):
    
    
                          Three Months Ended            Fiscal Year Ended      
                         -------------------           -------------------      
                     December 26,   December 27,   December 26,   December 27,  
                         2009           2008           2009           2008 
                         ----           ----           ----           ---- 
                                                                             
                                                                             
    Net sales          $162,398       $143,131       $674,495       $601,540 
    Increase in                                                              
     comparable                                                              
     store net                                                               
     sales                  7.0%           3.7%           5.2%           6.2%
    Gross profit                                                             
     as a percent                                                            
     of net sales          31.9%          32.1%          32.2%          32.6%
    Income from                                                              
     operations          $7,981         $6,773        $41,332        $35,645 
    Depreciation                                                             
     and                                                                     
     Amortization        $5,492         $4,888        $21,095        $17,483 
    Amortization                                                             
     of deferred                                                             
     financing                                                               
     fees                  $350           $292         $1,227         $1,168 
    Capital                                                                  
     expenditures        $2,982         $9,529        $21,281        $35,389 
    
    
    
    
    
                          Three Months Ended                Fiscal Year       
                          -------------------           ------------------    
                     December 26,   December 27,   December 26,   December 27,
                          2009           2008           2009           2008 
                          ----           ----           ----           ---- 
    Store Data:                                                               
      Stores open at                                                          
       beginning of 
       period              434            374            401            341 
        Stores opened        5             28             39             62 
        Stores closed       (1)            (1)            (2)            (2)
                            --             --             --             -- 
      Stores open at                                                          
       end of period       438            401            438            401 
                           ===            ===            ===            === 
    
    
    
    Results of Operations by Sales Channel:
    
    (In thousands):
    
    
                          Three Months Ended            Fiscal Year Ended 
                          ------------------           --------------------   
                     December 26,   December 27,   December 26,   December 27,
                         2009           2008           2009           2008 
                         ----           ----           ----           ---- 
                                                                              
    Sales:                                                                    
      Retail         $143,272       $124,182       $596,253       $522,541 
      Direct           19,126         18,949         78,242         78,999 
                       ------         ------         ------         ------ 
    Net sales         162,398        143,131        674,495        601,540 
                                                                              
    Income from 
     operations:                                                   
      Retail           22,732         17,932         94,494         80,422 
      Direct            3,817          3,565         15,126         14,884 
      Corporate costs (18,568)       (14,724)       (68,288)       (59,661)
                      -------        -------        -------        ------- 
    Income from
     operations        $7,981         $6,773        $41,332        $35,645 
                       ======         ======        =======        ======= 
    
    
    Selected Balance Sheet Items:
    
    (In thousands):
    
    
    
                                    December 26,  December 27, 
                                       2009            2008
                                       ----            ----
    Cash and equivalents             $8,797          $1,623
    Inventory                      $106,091        $106,891
    Property and equipment, net     $83,960         $82,989
    Debt, excluding capital 
     Leases                        $120,106        $182,000
    Capital leases                   $3,840          $4,382
    Total stockholders’ equity     $234,350        $168,483
    

SOURCE The Vitamin Shoppe



RELATED LINKS
http://www.vitaminshoppe.com

More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.