2014

Vitamin Shoppe, Inc. Announces Record Second Quarter 2012 Results 27th Consecutive Quarter of Positive Comparable Sales Growth

NORTH BERGEN, N.J., Aug. 7, 2012 /PRNewswire/ --

Second Quarter Highlights:

  • Comparable store sales grew 8.3%
  • E-commerce revenue increased 20.3%
  • Net sales increased 13.4%
  • Fully diluted EPS of $0.55, an increase of 37.5%

Vitamin Shoppe, Inc. (NYSE: VSI), a leading specialty retailer and direct marketer of nutritional products, today announced preliminary results for its fiscal second quarter ended June 30, 2012.  Net sales in fiscal second quarter 2012 advanced 13.4% while operating income rose 35.9%.  During the period, the company reported fully diluted earnings per share (EPS) of $0.55; up from $0.40 in fiscal second quarter 2011.

Tony Truesdale, Chief Executive Officer of the Company commented, "I am very pleased with our strong second quarter results.  Our top line growth was driven by continued strong retail performance with positive comparable store sales and solid e-commerce sales.  The strength of our sales performance is supported by disciplined merchandising, knowledgeable Health Enthusiasts and superior execution."

Mr. Truesdale further commented, "Looking ahead, we have many opportunities to continue to fuel our long-term growth.  These include; expanding our store base, introducing new products, international expansion and continuing to grow e-commerce.  We also have the operational and financial discipline to continue to manage our business to ensure we deliver profitable growth."

Fiscal Second Quarter 2012 Results

Net sales increased $29.0 million, or 13.4%, to $245.0 million for the three months ended June 30, 2012, compared with $215.9 million for the three months ended June 25, 2011.  This increase was the result of; 1) an 8.3% increase in comparable store sales, 2) growth from new stores, and 3) a 20.3% increase in e-commerce sales.

Cost of goods sold, which includes product, warehouse, distribution and occupancy costs, increased $17.0 million, or 11.9%, to $159.2 million for the three months ended June 30, 2012, compared with $142.2 million for the three months ended June 25, 2011.  

Gross profit increased $12.0 million, or 16.3%, to $85.8 million for the fiscal 2012 second quarter, compared with $73.7 million for fiscal second quarter 2011.  Gross profit as a percentage of net sales was 35.0% for the quarter ended June 30, 2012, up from 34.1% in fiscal second quarter 2011.  The improvement in gross profit margin reflects leverage on occupancy and supply chain costs.

Selling, general and administrative expenses (SG&A), including operating payroll and related benefits, advertising and promotion expense, depreciation and amortization, and other SG&A, increased $4.7 million, or 8.9%, to $58.1 million for the quarter ended June 30, 2012, compared with $53.3 million for the quarter ended June 25, 2011.  SG&A as a percentage of net sales was 23.7% for the quarter ended June 30, 2012, compared to 24.7% in fiscal second quarter 2011. 

Income from operations increased $7.3 million, or 35.9%, to $27.7 million for the three months ended June 30, 2012, compared with $20.4 million for the three months ended June 25, 2011.  As a percentage of revenue, income from operations was 11.3% for the fiscal 2012 second quarter, compared with 9.4% for fiscal second quarter 2011.

Net income increased $4.6 million or 38.8%, to $16.6 million for the three months ended June 30, 2012, compared with $12.0 million for fiscal second quarter 2011.  This was primarily attributable to stronger sales and margin improvement.

Earnings per diluted share increased 37.5% to $0.55 in fiscal second quarter 2012 from $0.40 in second quarter 2011.

Balance Sheet and Cash Flow

Cash and equivalents at June 30, 2012 were $50.4 million.  Capital expenditures were $5.0 million in the quarter.  Capital expenditures were used primarily for the build-out of new stores and improvements to existing stores, as well as computer equipment related to those stores.

2012 Outlook

For the current year management expects:

  • To open 52 new stores
  • Comparable store sales growth in mid-single digits for the remainder of the year
  • Continued improvement in operating income  margin
  • Capital expenditures between $35 million and $40 million

Webcast

Management will host a conference call to discuss its fiscal second quarter 2012 results at 8:30 a.m. Eastern Time (ET) today.  Interested investors and other parties may listen to the simultaneous webcast of the conference call by logging onto the Investor Relations section of the Company's website at www.vitaminshoppe.com. The online replay will be available immediately following the call.  A telephonic replay will also be available beginning at 11:30 a.m. ET and can be accessed by dialing 1-877-870-5176 or for international callers, 1-858-384-5517. The passcode for the replay is 9067140. The replay will be available until 11:59 p.m. ET on August 14, 2012.

About Vitamin Shoppe, Inc. (NYSE: VSI)

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 and True Athlete proprietary brands. The Vitamin Shoppe conducts business through more than 550 company-owned retail stores, national mail order catalogs, and website, www.VitaminShoppe.com. Follow The Vitamin Shoppe on Facebook at http://www.facebook.com/THEVITAMINSHOPPE and on Twitter at http://twitter.com/#!/VitaminShoppe.

Forward Looking Statement

Certain statements in this press release 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 described in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and in all filings with the Securities and 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, unless required by law. 

VITAMIN SHOPPE, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except share and per share data)

(unaudited)






Three Months Ended


Six Months Ended


June 30,


June 25,


June 30,


June 25,


2012


2011


2012


2011









Net sales

$     244,981


$     215,942


$     493,032


$     432,794

Cost of goods sold

159,226


142,230


318,941


283,806

Gross profit

85,755


73,712


174,091


148,988

Selling, general and administrative expenses

58,051


53,319


115,958


107,770

Income from operations

27,704


20,393


58,133


41,218

Loss on extinguishment of debt

-


-


-


552

Interest expense, net

187


527


374


1,657

Income before provision for income taxes

27,517


19,866


57,759


39,009

Provision for income taxes

10,922


7,914


22,903


15,468

Net income 

$       16,595


$       11,952


$       34,856


$       23,541









Weighted average common shares outstanding








   Basic

29,309,667


28,750,355


29,177,598


28,653,474

   Diluted

29,918,219


29,538,485


29,868,078


29,416,315

Net income per common share








   Basic

$          0.57


$          0.42


$          1.19


$          0.82

   Diluted

$          0.55


$          0.40


$          1.17


$          0.80

















 

SEGMENT DATA, KEY PERFORMANCE INDICATORS AND STORE INFO


($ in thousands)


unaudited








Three Months Ended


Six Months Ended



June 30,


June 25,


June 30,


June 25,



2012


2011


2012


2011










Sales:









Retail 

$         220,175


$        194,674


$         441,150


$        387,316


Direct

24,806


21,268


51,882


45,478

Net sales

$         244,981


$        215,942


$          493,032


$         432,794










Income from operations:









Retail 

$           45,706


$           37,385


$            93,676


$           76,212


Direct

4,758


3,990


10,368


8,568


Corporate costs

(22,760)


(20,982)


(45,911)


(43,562)

Income from operations

$           27,704


$           20,393


$            58,133


$           41,218










Increase in comparable store net sales

8.3%


8.0%


9.0%


8.0%

Depreciation and amortization 

$             5,326


$             5,000


$            10,855


$             9,848

Impairment charge on fixed assets

$                     -


$                291


$                 528


$                291

Amortization of deferred financing fees

$                  83


$                  84


$                 165


$                198










Capital Expenditures

$             4,996


$             5,412


$            10,883


$             9,911










Gross profit as a percent of net sales

35.0%


34.1%


35.3%


34.4%

Income from operations as a percent of net sales

11.3%


9.4%


11.8%


9.5%










Store Data:









Stores open at beginning of period 

543


497


528


484


    Stores opened 

9


9


24


24


    Stores closed 

(1)


(1)


(1)


(3)


Stores open at end of period

551


505


551


505











 

VITAMIN SHOPPE, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in thousands, except per share data)

(Unaudited)






June 30,


December 31,


2012


2011

ASSETS




Current assets:




  Cash and cash equivalents

$               50,436


$                10,754

  Inventories

120,024


121,494

  Prepaid expenses and other current assets

22,247


20,768

     Total current assets

192,707


153,016

Property and equipment, net of accumulated depreciation and amortization of $171,329 




  and $163,247 in 2012 and 2011, respectively

86,532


88,677

Goodwill

177,248


177,248

Other intangibles, net

68,789


68,852

Other assets

3,101


2,812

Total assets

$             528,377


$              490,605

LIABILITIES AND STOCKHOLDERS' EQUITY 




Current liabilities:




  Current portion of capital lease obligations

$                    343


$                     956

  Accounts payable

20,549


22,279

  Accrued expenses and other current liabilities

48,525


60,438

     Total current liabilities

69,417


83,673

Capital lease obligations, net of current portion

125


-

Deferred income taxes

14,741


13,725

Deferred rent

29,468


28,738

Other long-term liabilities 

9,173


8,666





Commitments and contingencies








Stockholders' equity:




  Preferred stock, $0.01 par value; 250,000,000 shares authorized and no shares issued and outstanding at 



   June 30, 2012 and December 31, 2011

-


-

  Common stock, $0.01 par value; 400,000,000 shares authorized, 29,721,187 shares issued and 




   outstanding at June 30, 2012, and 29,216,888 shares issued and outstanding at December 31, 2011

297


292

  Additional paid-in capital

271,584


256,795

  Retained earnings 

133,572


98,716

           Total stockholders' equity 

405,453


355,803

Total liabilities and stockholders' equity

$             528,377


$              490,605









SOURCE Vitamin Shoppe, Inc.



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http://www.vitaminshoppe.com

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