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Hain Celestial Reports Fourth Quarter and Fiscal Year 2019 Financial Results
Successful Continued Execution of Transformational Strategic Plan
Third Consecutive Quarter of Sequential Adjusted Margin Improvement
Provides Fiscal Year 2020 Guidance

LAKE SUCCESS, N.Y., Aug. 29, 2019 /PRNewswire/ -- The Hain Celestial Group, Inc. (Nasdaq: HAIN) ("Hain Celestial" 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 fourth quarter and fiscal year ended June 30, 2019. The results contained herein are presented with the Hain Pure Protein operating segment being treated as a discontinued operation.

"We are pleased with our team's solid execution on our transformational strategic plan during the fourth quarter. Our financial results demonstrate the third consecutive quarter of sequential adjusted margin improvement along with key operational improvements in the United States and internationally," commented Mark L. Schiller, Hain Celestial's President and Chief Executive Officer. "In a very short period of time, we have started to make significant progress on our key strategies in the United States including simplifying the portfolio, strengthening our core capabilities and expanding margins and cash flow. The team is delivering on the plan we outlined at our Investor Day in February which was to first get smaller and more profitable so that we could then focus our resources on reinvigorating profitable topline growth in a core set of brands by optimizing in-store assortment, building innovation and enhancing marketing. For fiscal 2020, we remain confident in our ability to generate significant further improvements in overall profit across our business and in building the foundation for future accelerated growth."

FINANCIAL HIGHLIGHTS1

Summary of Fourth Quarter Results from Continuing Operations2

  • Net sales decreased 10% to $557.7 million compared to the prior year period.
  • Net sales decreased 7% on a constant currency basis compared to the prior year period.
  • When adjusted for Foreign Exchange and Acquisitions, Divestitures and certain other items, including the Project Terra Stock Keeping Unit ("SKU") rationalization3, net sales decreased 6% compared to the prior year period.
  • Gross margin of 19.0%, a 120 basis point decrease over the prior year period and a 190 basis point decrease from the third quarter of fiscal 2019.
  • Adjusted gross margin of 23.0%, a 190 basis point increase over the prior year period and a 140 basis point increase from the third quarter of fiscal 2019.
  • Operating income of $0.7 million compared to $16.6 million in the prior year period and $23.9 million in the third quarter of fiscal 2019.
  • Adjusted operating income of $40.5 million compared to $44.5 million in the prior year period and $38.9 million in the third quarter of fiscal 2019.
  • Net loss of $7.7 million compared to $4.6 million in the prior year period and net income of $10.1 million in the third quarter of fiscal 2019.
  • Adjusted net income of $22.4 million compared to $27.7 million in prior year period and $21.7 million in the third quarter of fiscal 2019.
  • EBITDA of $25.9 million compared to $45.8 million in the prior year period and $41.5 million in the third quarter of fiscal 2019.
  • EBITDA margin of 4.6%, a 280 basis point decrease compared to the prior year period and 230 basis point decrease from the third quarter of fiscal 2019.
  • Adjusted EBITDA of $57.0 million compared to $61.4 million in the prior year period and $55.5 million in the third quarter of fiscal 2019.
  • Adjusted EBITDA margin of 10.2%, a 30 basis point increase compared to the prior year period and a 90 basis point increase from the third quarter of fiscal 2019.
  • Loss per diluted share of $0.07 compared to $0.04 in the prior year period and earnings per diluted share ("EPS") of $0.10 in the third quarter of fiscal 2019.
  • Adjusted EPS of $0.21 compared to $0.27 in the prior year period and $0.21 in the third quarter of fiscal 2019.

Summary of Fiscal Year 2019 Results from Continuing Operations2

  • Net sales decreased 6% to $2,302.5 million compared to the prior year.
  • Net sales decreased 4% on a constant currency basis compared to the prior year.
  • When adjusted for Foreign Exchange and Acquisitions, Divestitures and certain other items, including the Project Terra SKU rationalization3, net sales decreased 2% compared to the prior year.
  • Gross margin of 19.3%, a 170 basis point decrease over the prior year.
  • Adjusted gross margin of 21.0%, a 110 basis point decrease over the prior year.
  • Operating loss of $14.9 million compared to operating income of $106.0 million in the prior year.
  • Adjusted operating income of $130.2 million compared to $186.1 million in the prior year.
  • Net loss of $49.9 million compared to net income of $82.4 million in the prior year.
  • Adjusted net income of $68.7 million compared to $121.3 million in prior year.
  • EBITDA of $80.7 million compared to $197.2 million in the prior year.
  • EBITDA margin of 3.5%, a 450 basis point decrease compared to the prior year.
  • Adjusted EBITDA of $191.4 million compared to $255.9 million in the prior year.
  • Adjusted EBITDA margin of 8.3%, a 210 basis point decrease compared to the prior year.
  • Loss per diluted share of $0.48 compared to EPS of $0.79 in the prior year.
  • Adjusted EPS of $0.66 compared to $1.16 in the prior year.

SEGMENT HIGHLIGHTS FROM CONTINUING OPERATIONS

Hain Celestial United States
Hain Celestial United States net sales in the fourth quarter were $239.8 million, a decrease of 11% over the prior year period. When adjusted for Acquisitions, Divestitures and certain other items including the Project Terra SKU rationalization3, net sales decreased 8% over the prior year period. Segment operating loss in the fourth quarter was $2.6 million, a 114% decrease from the prior year period and a 115% decrease from the third quarter of fiscal 2019. Adjusted operating income was $20.3 million, a 12% decrease over the prior year period and a 7% decrease from the third quarter of fiscal 2019. Segment EBITDA in the fourth quarter was $6.0 million, a 73% decrease from the prior year period and a 71% decrease from the third quarter of fiscal 2019. Adjusted EBITDA was $24.2 million, a 10% decrease over the prior year period and a 5% decrease from the third quarter of 2019.

Hain Celestial United States net sales in fiscal year 2019 were $1,009.4 million, a decrease of 7% over the prior year. When adjusted for Acquisitions, Divestitures and certain other items including the Project Terra SKU rationalization3, net sales decreased 4% over the prior year. Segment operating income in fiscal year 2019 was $23.9 million, a 72% decrease from the prior year. Adjusted operating income was $63.2 million, a 44% decrease over the prior year. Segment EBITDA in fiscal year 2019 was $44.6 million, a 59% decrease from the prior year. Adjusted EBITDA was $77.9 million, a 40% decrease over the prior year.

Hain Celestial United Kingdom
Hain Celestial United Kingdom net sales in the fourth quarter were $214.4 million, a decrease of 10% over the prior year period. When adjusted for Foreign Exchange, Acquisitions and Divestitures and certain other items3 net sales decreased 5% over the prior year period. The net sales decrease compared to the prior year period was driven by 14% and 7% declines from Hain Daniels and Ella's Kitchen®, respectively, partially offset by 3% growth from Tilda®, or 9% and 2% declines from Hain Daniels and Ella's Kitchen®, respectively, and 8% growth from Tilda®, after adjusting for Foreign Exchange, Acquisitions and Divestitures and certain other items3. The results for the United Kingdom segment compared to the prior year period were primarily driven by declines from the New Covent Garden Soup Co.®, Yorkshire Provender® and Johnson's Juice Co.™ brands and private label sales, offset in part by growth in the Linda McCartney®, Hartley's® and Cully & Sully® brands. Segment operating income was $15.6 million, an 18% decrease over the prior year period and a 14% decrease from the third quarter of fiscal 2019. Adjusted operating income was $22.3 million, an increase of 10% over the prior year period and a 17% increase from the third quarter of fiscal 2019.  Segment EBITDA in the fourth quarter was $27.1 million, a 1% increase from the prior year period and a 5% increase from the third quarter of fiscal 2019. Adjusted EBITDA was $29.4 million, a 7% increase over the prior year period and 10% increase from the third quarter of 2019.

Hain Celestial United Kingdom net sales in fiscal year 2019 were $885.5 million, a decrease of 6% over the prior year. When adjusted for Foreign Exchange, Acquisitions and Divestitures and certain other items3 net sales decreased 1% over the prior year. The results for the United Kingdom segment compared to the prior year reflected a 9% decline in Hain Daniels, or 4% after adjusting for Foreign Exchange, Acquisitions and Divestitures and certain other items3, primarily driven by declines from the New Covent Garden Soup Co.® and Johnson's Juice Co.™ brands and private label sales, offset in part by growth in the Linda McCartney® and Hartley's® brands. This was partially offset by 3% growth from Tilda® and 1% growth from Ella's Kitchen®, or 8% and 5% growth, respectively, after adjusting for Foreign Exchange, Acquisitions and Divestitures and certain other items3. Segment operating income was $52.4 million, a 7% decrease over the prior year. Adjusted operating income was $70.2 million, flat compared to the prior year. Segment EBITDA in fiscal year 2019 was $90.9 million, a 2% increase from the prior year. Adjusted EBITDA was $99.5 million, a 1% decrease over the prior year.

Rest of World
Rest of World net sales in the fourth quarter were $103.5 million, a decrease of 7% over the prior year period. When adjusted for Foreign Exchange, Acquisitions and Divestitures and certain other items3 net sales decreased 1% over the prior year period. Net sales for Hain Celestial Canada decreased 8% compared to the prior year period, or 2% after adjusting for Foreign Exchange, Acquisitions and Divestitures and certain other items3, primarily driven by declines from the Sensible Portions®, Europe's Best® and Spectrum® Organics brands, offset in part by growth from the Live Clean® and Yves Veggie Cuisine® brands. Net sales for Hain Celestial Europe increased 1%, or 7% on a constant currency basis, primarily driven by growth from the Natumi® brand and private label sales, offset in part by declines from the Dream® and Joya® brands. Net sales for Hain Ventures, formerly known as Cultivate Ventures, decreased 29%, or 29% after adjusting for Acquisitions and Divestitures and certain other items3, primarily driven by declines from the BluePrint®, DeBoles® and SunSpire® brands, offset in part by growth from private label sales. Segment operating income in the fourth quarter was $5.7 million, a 29% decrease over the prior year period and a 47% decrease from the third quarter of fiscal 2019. Adjusted operating income was $11.2 million, a 13% increase over the prior year period and a 1% decrease from the third quarter of fiscal 2019. Segment EBITDA in the fourth quarter was $8.0 million, a 33% decrease from the prior year period and a 43% decrease from the third quarter of fiscal 2019. Adjusted EBITDA was $14.6 million, a 13% increase over the prior year period and a 1% increase from the third quarter of 2019.

Rest of World net sales in fiscal year 2019 were $407.6 million, a decrease of 6% over the prior year. When adjusted for Foreign Exchange, Acquisitions and Divestitures and certain other items3 net sales decreased 1% over the prior year. Net sales for Hain Celestial Canada decreased 8% compared to the prior year, or 2% after adjusting for Foreign Exchange, Acquisitions and Divestitures and certain other items3, primarily driven by declines from the Europe's Best®, Dream® and Spectrum® Organics brands and private label sales, offset in part by growth from the Live Clean®, Sensible Portions® and Yves Veggie Cuisine® brands. Net sales for Hain Celestial Europe decreased 1%, or increased 4% on a constant currency basis, primarily driven by strong performance from the Joya® and Natumi® brands and private label sales, offset in part by declines from the Lima®, Danival® and Dream® brands. Net sales for Hain Ventures, formerly known as Cultivate Ventures, decreased 20%, or 18% after adjusting for Acquisitions and Divestitures and certain other items3, primarily driven by declines from the BluePrint®, DeBoles® and SunSpire® brands, offset in part by growth from the GG UniqueFiber™ brand and private label sales. Segment operating income in fiscal year 2019 was $32.8 million, a 15% decrease over the prior year. Adjusted operating income was $41.0 million, a 4% decrease over the prior year. Segment EBITDA in fiscal year 2019 was $44.0 million, a 13% decrease from the prior year. Adjusted EBITDA was $53.3 million, flat compared to the prior year.

Hain Pure Protein Discontinued Operations
As previously disclosed on May 5, 2018, the results of operations, financial position and cash flows related to the operations of the Hain Pure Protein business segment have been moved to discontinued operations in the current and prior periods. On February 15, 2019, the Company completed the sale of substantially all of the assets used primarily for the Plainville Farms business and on June 28, 2019 the Company completed the sale of its equity interest in Hain Pure Protein Corporation, which included the FreeBird® and Empire Kosher® businesses. Net sales for Hain Pure Protein in the fourth quarter were $58.7 million, a decrease of 48% compared to the prior year period. Net loss from discontinued operations, net of tax in the fourth quarter was $5.9 million and included loss on sale of $0.6 million.

For fiscal year 2019, net sales for Hain Pure Protein were $408.1 million, a decrease of 20% compared to the prior year. Net loss from discontinued operations, net of tax for fiscal year 2019 was $133.4 million and included a $80.0 million non-cash impairment charge and a loss on sale of $30.0 million.

Fiscal Year 2020 Guidance
The Company expects the following for fiscal year 2020 pro forma results excluding the contribution from its recently announced completed sale of Tilda®:


Fiscal Year 2020


Reported

Constant Currency

Adjusted EBITDA

$168 Million to $192 Million

$173 Million to $198 Million

% Growth

+2% to +16%

+5% to +20%

Adjusted EPS

$0.59 to $0.72

$0.62 to $0.75

% Growth

-2% to +20%

+3% to +25%

Guidance, where adjusted, is provided on a non-GAAP basis and excludes acquisition-related expenses; integration charges; restructuring charges, start-up costs, consulting fees and other costs associated with Project Terra; 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 and divestitures.

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.

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 Acquisitions, Divestitures and Other" provided herein.

(unaudited and dollars in thousands)

United
States

United
Kingdom

Rest of
World

Corporate/
Other

Total

Net Sales






Net sales - Three months ended 6/30/19

$     239,821

$     214,367

$     103,494

$               -

$     557,682

Net sales - Three months ended 6/30/18

$     269,857

$     239,061

$     110,680

$               -

$     619,598

% change - FY'19 net sales vs. FY'18 net sales

(11.1)%

(10.3)%

(6.5)%


(10.0)%







Operating income (loss)






Three months ended 6/30/19






Operating (loss) income

$       (2,585)

$       15,591

$        5,742

$      (18,008)

$           740

Non-GAAP adjustments (1)

22,934

6,719

5,447

4,706

39,806

Adjusted operating income (loss)

$       20,349

$       22,310

$       11,189

$      (13,302)

$       40,546

Operating (loss) income margin

(1.1)%

7.3%

5.5%


0.1%

Adjusted operating income margin

8.5%

10.4%

10.8%


7.3%







Three months ended 6/30/18






Operating income (loss)

$       18,623

$       18,984

$        8,069

$      (29,096)

$       16,580

Non-GAAP adjustments (1)

4,571

1,257

1,862

20,211

27,901

Adjusted operating income (loss)

$       23,194

$       20,241

$        9,931

$       (8,885)

$       44,481

Operating income margin

6.9%

7.9%

7.3%


2.7%

Adjusted operating income margin

8.6%

8.5%

9.0%


7.2%







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









(unaudited and dollars in thousands)

United
States

United
Kingdom

Rest of
World

Corporate/
Other

Total

Net Sales






Net sales - Twelve months ended 6/30/19

$  1,009,406

$     885,488

$     407,574

$               -

$  2,302,468

Net sales - Twelve months ended 6/30/18

$  1,084,871

$     938,029

$     434,869

$               -

$  2,457,769

% change - FY'19 net sales vs. FY'18 net sales

(7.0)%

(5.6)%

(6.3)%


(6.3)%







Operating (loss) income






Twelve months ended 6/30/19






Operating income (loss)

$       23,864

$       52,413

$       32,820

$    (123,983)

$      (14,886)

Non-GAAP adjustments (1)

39,347

17,769

8,179

79,781

145,076

Adjusted operating income (loss)

$       63,211

$       70,182

$       40,999

$      (44,202)

$     130,190

Operating income (loss) margin

2.4%

5.9%

8.1%


(0.6)%

Adjusted operating income margin

6.3%

7.9%

10.1%


5.7%







Twelve months ended 6/30/18






Operating income (loss)

$       86,319

$       56,046

$       38,660

$      (74,985)

$     106,040

Non-GAAP adjustments (1)

26,841

14,227

3,985

34,980

80,033

Adjusted operating income (loss)

$     113,160

$       70,273

$       42,645

$      (40,005)

$     186,073

Operating income margin

8.0%

6.0%

8.9%


4.3%

Adjusted operating income margin

10.4%

7.5%

9.8%


7.6%







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



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®, Arrowhead Mills®, Bearitos®, Better Bean®, BluePrint®, Casbah®, Celestial Seasonings®, Clarks™, Coconut Dream®, Cully & Sully®, Danival®, DeBoles®, Earth's Best®, Ella's Kitchen®, Europe's Best®, 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®, Rudi's Gluten-Free Bakery™, Rudi's Organic Bakery®, Sensible Portions®, Spectrum® Organics, Soy Dream®, Sun-Pat®, Sunripe®, SunSpire®, Terra®, The Greek Gods®, Walnut Acres®, WestSoy®, 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 Project Terra, 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, the impact of competitive products and changes to the competitive environment, changes to consumer preferences, political uncertainty in the United Kingdom and the negotiation of its 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, Acquisitions and 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, EBITDA, 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 twelve months ended June 30, 2019 and 2018 and the three months ended March 31, 2019 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 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 twelve months ended June 30, 2019 and 2018, Operating Free Cash Flow from continuing operations was calculated as follows:


Three Months Ended June 30,


Twelve Months Ended June 30,


2019


2018


2019


2018




 

(unaudited and dollars in thousands)











Cash flow provided by operating activities - continuing operations

$           37,476


$           53,938


$           49,519


$         121,308

Purchases of property, plant and equipment

(21,236)


(22,523)


(77,128)


(70,891)

Operating Free Cash Flow - continuing operations

$           16,240


$           31,415


$          (27,609)


$           50,417


 

The Company's Operating Free Cash Flow from continuing operations was $16.2 million for the three months ended June 30, 2019, a decrease of $15.2 million from the three months ended June 30, 2018. This decrease resulted primarily from a decrease in net (loss) income adjusted for non-cash charges. The Company's Operating Free Cash Flow from continuing operations was negative $27.6 million for the twelve months ended June 30, 2019, a decrease of $78.0 million from the twelve months ended June 30, 2018. This decrease resulted primarily from a decrease in net income adjusted for non-cash charges and increased capital expenditures in the current year, offset in part by cash provided by 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, acquisitions and 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 EBITDA as net (loss) income from continuing operations (a GAAP measure) before income taxes, net interest expense, depreciation and amortization, equity in net loss (income) of equity-method investees, stock-based compensation, net, stock-based compensation expense in connection with the Succession Plan, long-lived asset and intangible impairments and unrealized currency gains and losses. The Company defines segment EBITDA as operating income (a GAAP measure) before depreciation and amortization, stock-based compensation, net and long-lived asset impairments. Adjusted EBITDA is defined as EBITDA before acquisition-related expenses, including integration and restructuring charges, and other non-recurring items. 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 twelve months ended June 30, 2019 and 2018, EBITDA and Adjusted EBITDA from continuing operations was calculated as follows:


Three Months Ended June 30,


Twelve Months Ended June 30,


2019


2018


2019


2018


(unaudited and dollars in thousands)









Net (loss) income

$          (13,551)


$          (69,941)


$        (183,314)


$            9,694

Net loss from discontinued operations

(5,897)


(65,385)


(133,369)


(72,734)

Net (loss) income from continuing operations

$           (7,654)


$           (4,556)


$          (49,945)


$           82,428









(Benefit) provision for income taxes

(1,018)


10,629


(2,697)


(887)

Interest expense, net

8,877


6,804


32,970


24,339

Depreciation and amortization

14,840


15,670


56,914


60,809

Equity in net loss (income) of equity-method investees

264


(235)


655


(339)

Stock-based compensation, net

4,001


3,122


9,503


13,380

Stock-based compensation expense in connection with
Chief Executive Officer Succession Agreement

-


(2,203)


429


(2,203)

Goodwill impairment

-


7,700


-


7,700

Long-lived asset and intangibles impairment

10,010


5,743


33,719


14,033

Unrealized currency (gains)/losses

(3,401)


3,143


(850)


(2,027)

EBITDA

$           25,919


$           45,817


$           80,698


$         197,233

















Project Terra costs and other

10,494


4,276


39,958


18,026

Chief Executive Officer Succession Plan expense, net

-


2,723


29,727


2,723

Proceeds from insurance claims

(4,460)


-


(4,460)


-

Accounting review and remediation costs, net of insurance proceeds

-


2,887


4,334


9,293

Warehouse/manufacturing facility start-up costs

8,107


3,024


17,636


4,179

SKU rationalization

10,346


-


12,381


4,913

Plant closure related costs

3,954


1,567


7,457


5,513

Realized currency loss on repayment of international loans

2,706


-


2,706


-

Litigation and related expenses

455


780


1,517


1,015

Gain on sale of business

(534)


-


(534)


-

Losses on terminated chilled desserts contract

-


-


-


6,553

Co-packer disruption

-


-


-


3,692

Regulated packaging change

-


-


-


1,007

Toys "R" Us bad debt

-


-


-


897

Recall and other related costs

-


307


-


580

Machine break-down costs

-


-


-


317

Adjusted EBITDA

$           56,987


$           61,381


$         191,420


$         255,941

 

 

THE HAIN CELESTIAL GROUP, INC.

Consolidated Balance Sheets

 (unaudited and in thousands) 










 June 30, 


 June 30, 




2019


2018

ASSETS




Current assets:





Cash and cash equivalents

$              39,526


$            106,557


Accounts receivable, net

236,945


252,708


Inventories

364,887


391,525


Prepaid expenses and other current assets

60,429


59,946


Current assets of discontinued operations

-


240,851


Total current assets

701,787


1,051,587

Property, plant and equipment, net

328,362


310,172

Goodwill


1,008,979


1,024,136

Trademarks and other intangible assets, net

465,211


510,387

Investments and joint ventures

18,890


20,725

Other assets

59,391


29,667


Total assets 

$          2,582,620


$          2,946,674

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:





Accounts payable

$            238,298


$            229,993


Accrued expenses and other current liabilities

118,940


116,001


Current portion of long-term debt

25,919


26,605


Current liabilities of discontinued operations

-


49,846


Total current liabilities

383,157


422,445

Long-term debt, less current portion

613,537


687,501

Deferred income taxes 

51,910


86,909

Other noncurrent liabilities

14,697


12,770

Total liabilities

1,063,301


1,209,625

Stockholders' equity:





Common stock

1,088


1,084


Additional paid-in capital

1,158,257


1,148,196


Retained earnings

695,017


878,516


Accumulated other comprehensive loss

(225,004)


(184,240)




1,629,358


1,843,556


Treasury stock

(110,039)


(106,507)


Total stockholders' equity

1,519,319


1,737,049


Total liabilities and stockholders' equity

$          2,582,620


$          2,946,674

 

 

THE HAIN CELESTIAL GROUP, INC.

 Consolidated Statements of Operations 

 (unaudited and in thousands, except per share amounts) 










Three Months Ended June 30,


Twelve Months Ended June 30,


2019


2018


2019


2018









Net sales

$           557,682


$           619,598


$        2,302,468


$        2,457,769

Cost of sales

451,605


494,501


1,857,255


1,942,321

Gross profit

106,077


125,097


445,213


515,448

Selling, general and administrative expenses

85,566


83,048


340,949


341,634

Amortization of acquired intangibles

3,727


4,343


15,294


18,202

Project Terra costs and other

10,494


4,276


40,107


18,026

Chief Executive Officer Succession Plan expense, net

-


520


30,156


520

Proceeds from insurance claims

(4,460)


-


(4,460)


-

Accounting review and remediation costs, net of insurance proceeds

-


2,887


4,334


9,293

Goodwill impairment

-


7,700


-


7,700

Long-lived asset and intangibles impairment

10,010


5,743


33,719


14,033

Operating income (loss)

740


16,580


(14,886)


106,040

Interest and other financing expense, net

10,166


7,382


36,078


26,925

Other (income)/expense, net

(1,018)


3,360


1,023


(2,087)

(Loss) income from continuing operations before income taxes
and equity in net loss (income) of equity-method investees

(8,408)


5,838


(51,987)


81,202

(Benefit) provision for income taxes

(1,018)


10,629


(2,697)


(887)

Equity in net loss (income) of equity-method investees

264


(235)


655


(339)

   Net (loss) income from continuing operations

$             (7,654)


$             (4,556)


$           (49,945)


$            82,428

   Net loss from discontinued operations, net of tax

(5,897)


(65,385)


(133,369)


(72,734)

Net (loss) income

$           (13,551)


$           (69,941)


$          (183,314)


$              9,694









Net (loss) income per common share:








Basic net (loss) income per common share from continuing operations

$               (0.07)


$               (0.04)


$               (0.48)


$                0.79

Basic net loss per common share from discontinued operations

(0.06)


(0.63)


(1.28)


(0.70)

   Basic net (loss) income per common share

$               (0.13)


$               (0.67)


$               (1.76)


$                0.09









Diluted net (loss) income per common share from continuing operations

$               (0.07)


$               (0.04)


$               (0.48)


$                0.79

Diluted net loss per common share from discontinued operations

(0.06)


(0.63)


(1.28)


(0.70)

   Diluted net (loss) income per common share

$               (0.13)


$               (0.67)


$               (1.76)


$                0.09









Shares used in the calculation of net (loss) income per common share:







Basic

104,167


103,927


104,076


103,848

Diluted

104,167


103,927


104,076


104,477

 

 

THE HAIN CELESTIAL GROUP, INC.

 Consolidated Statements of Cash Flows  

(unaudited and dollars in thousands)










Three Months Ended June 30,


Twelve Months Ended June 30,


2019


2018


2019


2018

CASH FLOWS FROM OPERATING ACTIVITIES








Net (loss) income

$          (13,551)


$          (69,941)


$        (183,314)


$            9,694

Net loss from discontinued operations

(5,897)


(65,385)


(133,369)


(72,734)

Net (loss) income from continuing operations

(7,654)


(4,556)


(49,945)


82,428

Adjustments to reconcile net (loss) income from continuing operations to net cash
provided by operating activities from continuing operations:








Depreciation and amortization

14,840


15,670


56,914


60,809

Deferred income taxes

(1,137)


8,612


(25,790)


(21,503)

Equity in net loss (income) of equity-method investees

264


(235)


655


(339)

Stock-based compensation, net

4,001


919


9,932


11,177

Impairment charges

10,010


13,443


33,719


21,733

Other non-cash items, net

(2,478)


1,284


1,225


(741)

Increase (decrease) in cash attributable to changes in operating assets and
liabilities:








Accounts receivable

30,018


(843)


21,194


(24,841)

Inventories

27,824


(1,681)


20,648


(45,036)

Other current assets

(6,073)


(1,116)


(5,758)


(9,269)

Other assets and liabilities

(1,551)


(7,763)


3,697


(2,396)

Accounts payable and accrued expenses

(30,588)


30,204


(16,972)


49,286

Net cash provided by operating activities - continuing operations

37,476


53,938


49,519


121,308

CASH FLOWS FROM INVESTING ACTIVITIES








Purchases of property and equipment

(21,236)


(22,523)


(77,128)


(70,891)

Acquisitions of businesses, net of cash acquired

-


696


-


(12,368)

Proceeds from sale of assets and other

3,282


614


7,145


738

Net cash used in investing activities - continuing operations

(17,954)


(21,213)


(69,983)


(82,521)

CASH FLOWS FROM FINANCING ACTIVITIES








Borrowings under bank revolving credit facility

45,000


20,000


285,000


65,000

Repayments under bank revolving credit facility

(82,000)


(45,035)


(268,791)


(400,220)

Borrowings under term loan

-


-


-


299,245

Repayments under term loan

(78,750)


(3,750)


(90,000)


(3,750)

Proceeds from (funding of) discontinued operations entities

73,480


(4,401)


36,029


(21,568)

Borrowings (repayments) of other debt, net

1,599


(4,107)


(3,171)


(996)

Shares withheld for payment of employee payroll taxes

(461)


(340)


(3,532)


(7,193)

Net cash used in financing activities - continuing operations

(41,132)


(37,633)


(44,465)


(69,482)

Effect of exchange rate changes on cash

(878)


(5,687)


(2,102)


197

CASH FLOWS FROM DISCONTINUED OPERATIONS








Cash used in operating activities

(911)


(2,303)


(8,250)


(14,086)

Cash provided by (used in) investing activities

70,683


(2,221)


37,941


(10,752)

Cash (used in) provided by financing activities

(73,450)


4,350


(36,151)


21,361

Net cash flows used in discontinued operations

(3,678)


(174)


(6,460)


(3,477)

Net decrease in cash and cash equivalents

(26,166)


(10,769)


(73,491)


(33,975)

Cash and cash equivalents at beginning of period

65,692


123,786


113,017


146,992

Cash and cash equivalents at end of period

$           39,526


$         113,017


$           39,526


$         113,017

Less: cash and cash equivalents of discontinued operations

-


(6,460)


-


(6,460)

Cash and cash equivalents of continuing operations at end of period

$           39,526


$         106,557


$           39,526


$         106,557

 

 

THE HAIN CELESTIAL GROUP, INC.

 Reconciliation of GAAP Results to Non-GAAP Measures 

 (unaudited and in thousands, except per share amounts) 










Three Months Ended June 30,


2019 GAAP

Adjustments

2019 Adjusted


2018 GAAP

Adjustments

2018 Adjusted









Net sales

$                557,682

-

$                557,682


$                619,598

-

$                619,598

Cost of sales

451,605

(22,314)

429,291


494,501

(5,346)

489,155

Gross profit

106,077

22,314

128,391


125,097

5,346

130,443

Operating expenses (a) 

99,303

(11,459)

87,844


93,134

(7,172)

85,962

Project Terra costs and other

10,494

(10,494)

-


4,276

(4,276)

-

Chief Executive Officer Succession Plan expense, net

-

-

-


520

(520)

-

Proceeds from insurance claims

(4,460)

4,460

-


-

-

-

Accounting review and remediation costs, net of insurance proceeds

-

-

-


2,887

(2,887)

-

Goodwill impairment

-

-

-


7,700

(7,700)

-

Operating income

740

39,807

40,547


16,580

27,901

44,481

Interest and other expense (income), net (b) 

9,147

882

10,029


10,742

(3,143)

7,599

(Benefit) provision for income taxes

(1,018)

8,912

7,894


10,629

(1,255)

9,374

   Net (loss) income from continuing operations

(7,654)

30,013

22,359


(4,556)

32,299

27,743

   Net (loss) income from discontinued operations, net of tax

(5,897)

5,897

-


(65,385)

65,385

-

Net (loss) income

(13,551)

35,910

22,359


(69,941)

97,684

27,743









Diluted net (loss) income per common share from continuing operations

(0.07)

0.29

0.21


(0.04)

0.31

0.27

Diluted net (loss) income per common share from discontinued operations

(0.06)

0.06

-


(0.63)

0.63

-

   Diluted net (loss) income per common share

(0.13)

0.34

0.21


(0.67)

0.94

0.27









Detail of Adjustments:










Three Months Ended
June 30, 2019




Three Months Ended
June 30, 2018


Warehouse/manufacturing facility start-up costs


$                      8,107




$                      3,024


Plant closure related costs


3,861




2,015


SKU rationalization


10,346




-


Recall and other related costs


-




307


Cost of sales


22,314




5,346










Gross profit


22,314




5,346










Stock-based compensation acceleration


875




-


Intangibles impairment


-




5,632


Long-lived asset impairment charge associated with plant closure 


10,010




111


Litigation and related expenses


455




780


Plant closure related costs


119




-


Accelerated Depreciation on software disposal


-




461


Warehouse/manufacturing facility start-up costs


-




188


Operating expenses (a) 


11,459




7,172










Project Terra costs and other


10,494




4,276


Project Terra costs and other


10,494




4,276










Chief Executive Officer Succession Plan expense, net


-




520


Chief Executive Officer Succession Plan expense, net


-




520










Proceeds from insurance claims


(4,460)




-


Proceeds from insurance claims


(4,460)




-










Accounting review and remediation costs, net of insurance proceeds


-




2,887


Accounting review and remediation costs, net of insurance proceeds


-




2,887










Goodwill impairment


-




7,700


Goodwill impairment


-




7,700










Operating income


39,807




27,901










Unrealized currency gains


(3,401)




3,143


Realized currency loss on repayment of international loans


2,706




-


Gain on sale of business


(534)




-


Deferred financing cost write-off


347




-


Interest and other expense (income), net (b) 


(882)




3,143










Income tax related adjustments


(8,912)




1,255


(Benefit) provision for income taxes


(8,912)




1,255










   Net (loss) income from continuing operations


$                    30,013




$                    32,299










(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 (income), net.





 

 

THE HAIN CELESTIAL GROUP, INC.

 Reconciliation of GAAP Results to Non-GAAP Measures 

 (unaudited and in thousands, except per share amounts) 










Twelve Months Ended June 30,


2019 GAAP

Adjustments

2019 Adjusted


2018 GAAP

Adjustments

2018 Adjusted









Net sales

$             2,302,468

-

$             2,302,468


$             2,457,769

-

$             2,457,769

Cost of sales

1,857,255

(37,623)

1,819,632


1,942,321

(27,200)

1,915,121

Gross profit

445,213

37,623

482,836


515,448

27,200

542,648

Operating expenses (a) 

389,962

(37,316)

352,646


373,869

(17,294)

356,575

Project Terra costs and other

40,107

(40,107)

-


18,026

(18,026)

-

Chief Executive Officer Succession Plan expense, net

30,156

(30,156)

-


520

(520)

-

Proceeds from insurance claims

(4,460)

4,460

-


-

-

-

Accounting review and remediation costs, net of insurance proceeds

4,334

(4,334)

-


9,293

(9,293)

-

Goodwill impairment

-

-

-


7,700

(7,700)

-

Operating (loss) income

(14,886)

145,076

130,190


106,040

80,033

186,073

Interest and other expense (income), net (b) 

37,100

(1,669)

35,431


24,838

2,027

26,865

(Benefit) provision for income taxes

(2,697)

28,116

25,419


(887)

39,133

38,246

   Net (loss) income from continuing operations

(49,945)

118,628

68,683


82,428

38,873

121,301

   Net (loss) income from discontinued operations, net of tax

(133,369)

133,369

-


(72,734)

72,734

-

Net (loss) income

(183,314)

251,997

68,683


9,694

111,607

121,301









Diluted net (loss) income per common share from continuing operations

(0.48)

1.14

0.66


0.79

0.37

1.16

Diluted net (loss) income per common share from discontinued operations

(1.28)

1.28

-


(0.70)

0.70

-

   Diluted net (loss) income per common share

(1.76)

2.42

0.66


0.09

1.07

1.16









Detail of Adjustments:


















Twelve Months Ended
June 30, 2019




Twelve Months Ended
June 30, 2018


Warehouse/manufacturing facility start-up costs


$                        17,636




$                         4,179


Plant closure related costs


7,606




5,958


SKU rationalization


12,381




4,913


Recall and other related costs


-




580


Machine break-down costs


-




317


Losses on terminated chilled desserts contract


-




6,553


Co-packer disruption


-




3,692


Regulated packaging change


-




1,007


Cost of sales


37,623




27,200










Gross profit


37,623




27,200










Intangibles impairment


17,900




5,632


Long-lived asset impairment charge associated with plant closure 


15,819




8,401


Litigation and related expenses


1,517




1,015


Stock-based compensation acceleration


1,458




700


Plant closure related costs


622




-


Toys "R" Us bad debt


-




897


Accelerated Depreciation on software disposal


-




461


Warehouse/manufacturing facility start-up costs


-




188


Operating expenses (a) 


37,316




17,294










Project Terra costs and other


40,107




18,026


Project Terra costs and other


40,107




18,026










Chief Executive Officer Succession Plan expense, net


30,156




520


Chief Executive Officer Succession Plan expense, net


30,156




520










Proceeds from insurance claims


(4,460)




-


Proceeds from insurance claims


(4,460)




-










Accounting review and remediation costs, net of insurance proceeds


4,334




9,293


Accounting review and remediation costs, net of insurance proceeds


4,334




9,293










Goodwill impairment


-




7,700


Goodwill impairment


-




7,700










Operating (loss) income


145,076




80,033










Unrealized currency gains


(850)




(2,027)


Realized currency loss on repayment of international loans


2,706




-


Gain on sale of business


(534)




-


Deferred financing cost write-off


347




-


Interest and other expense (income), net (b) 


1,669




(2,027)










Income tax related adjustments


(28,116)




(39,133)


(Benefit) provision for income taxes


(28,116)




(39,133)










   Net (loss) income from continuing operations


$                      118,628




$                        38,873










(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 (income), net.





 

 

THE HAIN CELESTIAL GROUP, INC.





Net Sales Growth at Constant Currency





(unaudited and dollars in thousands)


















Hain Consolidated


United Kingdom


Rest of World







 Net sales - Three months ended 6/30/19 

$     557,682


$     214,367


$     103,494







 Impact of foreign currency exchange 

17,036


12,225


4,811







 Net sales on a constant currency basis -
   Three months ended 6/30/19 

$     574,718


$     226,592


$     108,305



















Net sales - Three months ended 6/30/18

$     619,598


$     239,061


$     110,680







Net sales growth on a constant currency basis
   

(7.2)%


(5.2)%


(2.1)%




















Hain Consolidated


United Kingdom


Rest of World







 Net sales - Twelve months ended 6/30/19 

$  2,302,468


$     885,488


$     407,574







 Impact of foreign currency exchange 

52,622


36,122


16,500







 Net sales on a constant currency basis -
   Twelve months ended 6/30/19 

$  2,355,090


$     921,610


$     424,074



















Net sales - Twelve months ended 6/30/18

$  2,457,769


$     938,029


$     434,869







Net sales growth on a constant currency basis
   

(4.2)%


(1.8)%


(2.5)%



















Net Sales Growth at Constant Currency and Adjusted for Acquisitions, Divestitures and Other



















Hain Consolidated


United States


United Kingdom


Rest of World





 Net sales on a constant currency basis -
   Three months ended 6/30/19 

$     574,718


$     239,821


$     226,592


$     108,305

















Net sales - Three months ended 6/30/18

$     619,598


$     269,857


$     239,061


$     110,680





Project Terra SKU rationalization

(10,445)


(9,335)


-


(1,110)





 Net sales on a constant currency basis adjusted for
   acquisitions, divestitures and other - Three months ended 6/30/18 

$     609,153


$     260,522


$     239,061


$     109,570





 Net sales growth on a constant currency
   basis adjusted for acquisitions, divestitures and other 

(5.7)%


(7.9)%


(5.2)%


(1.2)%


















Tilda


Hain Daniels


Ella's Kitchen


Hain Celestial Europe


Hain Celestial Canada


Hain Ventures

Net sales growth - Three months ended 6/30/19

2.6%


(14.3)%


(7.3)%


0.6%


(7.8)%


(29.2)%

Impact of foreign currency exchange

5.3%


5.0%


5.4%


6.3%


3.4%


– %

Impact of Project Terra SKU rationalization

– %


– %


– %


– %


2.3%


0.5%

 Net sales growth on a constant currency basis adjusted for
   acquisitions, divestitures and other - Three months ended 6/30/19 

7.9%


(9.3)%


(1.9)%


6.9%


(2.1)%


(28.7)%


























Hain Consolidated


United States


United Kingdom


Rest of World





 Net sales on a constant currency basis -
   Twelve months ended 6/30/19 

$  2,355,090


$  1,009,406


$     921,610


$     424,074

















Net sales - Twelve months ended 6/30/18

$  2,457,769


$  1,084,871


$     938,029


$     434,869





Acquisitions

4,335


-


4,335


-





Castle contract termination

(12,359)


-


(12,359)


-





Project Terra SKU rationalization

(43,310)


(38,226)


-


(5,084)





 Net sales on a constant currency basis adjusted for
   acquisitions, divestitures and other - Twelve months ended 6/30/18 

$  2,406,435


$  1,046,645


$     930,005


$     429,785





 Net sales growth on a constant currency
   basis adjusted for acquisitions, divestitures and other 

(2.1)%


(3.6)%


(0.9)%


(1.3)%


















Tilda


Hain Daniels


Ella's Kitchen


Hain Celestial Europe


Hain Celestial Canada


Hain Ventures

Net sales growth - Twelve months ended 6/30/19

3.2%


(8.8)%


0.5%


(1.1)%


(7.9)%


(19.6)%

Impact of foreign currency exchange

4.3%


3.7%


4.1%


4.8%


3.9%


– %

Impact of acquisitions

– %


(0.6)%


– %


– %


– %


– %

Impact of castle contract termination

– %


1.8%


– %


– %


– %


– %

Impact of Project Terra SKU rationalization

– %


– %


– %


– %


2.1%


2.0%

 Net sales growth on a constant currency basis adjusted for
   acquisitions, divestitures and other - Twelve months ended 6/30/19 

7.5%


(3.9)%


4.6%


3.7%


(1.9)%


(17.6)%

 

 

THE HAIN CELESTIAL GROUP, INC.

Segment EBITDA and Adjusted EBITDA

Three Months Ended

(unaudited and dollars in thousands)







United States








June 30, 2019


March 31, 2019


June 30, 2018







Operating (Loss) Income

$                  (2,585)


$                  17,099


$                  18,623

Depreciation and amortization

3,235


3,274


3,670

Long-lived asset impairment

5,179


-


(286)

Other

172


499


71

EBITDA

$                   6,001


$                  20,872


$                  22,078

Project Terra costs and other

3,085


1,246


894

Warehouse/manufacturing facility start-up costs

7,974


3,101


2,943

Plant closure related costs

31


26


711

SKU rationalization

6,665


303


-

Realized currency loss on repayment of international loans

465


-


-

Recall and other related costs

-


-


307

Adjusted EBITDA

$                  24,221


$                  25,548


$                  26,933













United Kingdom








June 30, 2019


March 31, 2019


June 30, 2018







Operating Income

$                  15,591


$                  18,147


$                  18,984

Depreciation and amortization

7,523


7,258


8,057

Long-lived asset impairment

4,393


-