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  • The Hain Celestial Group is a leading organic and natural products company with operations in North America, Europe and India. Hain Celestial participates in many natural categories with well-known brands. Our mission is to be the leading marketer, manufacturer and seller of organic and natural, better-for-you products. We are committed to growing sustainably while continuing to implement environmentally sound business practices and manufacturing processes.
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Hain Celestial Announces Fourth Quarter and Fiscal Year Financial 2017 Results
Hain Celestial United States Reports Sales Growth for Fourth Quarter Fiscal Year 2017
Generates Annual Strong Operating Cash Flow of $217 Million
Provides Fiscal Year 2018 Financial Guidance

LAKE SUCCESS, N.Y., Aug. 29, 2017 /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 results for the fourth quarter and fiscal year ended June 30, 2017.

The Hain Celestial Group, Inc.  (PRNewsFoto/The Hain Celestial Group, Inc.)

"We are pleased to have achieved sales growth in all of our business segments on a constant currency basis in the fourth quarter, despite an ever changing operating environment for food manufacturers and retailers," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. "Building upon our core platforms and cost savings initiatives, our global team has made significant progress during the year executing on our strategic plan. The business momentum and operational improvements we experienced in the fourth quarter of fiscal 2017 reinforces our confidence in the tremendous opportunities ahead to generate the growth we know we are capable of achieving over the next several years."      

Financial Highlights1 
Fourth Quarter Fiscal Year 2017
For fourth quarter fiscal year 2017, the Company reported:

  • Net sales of $725.1 million, a 2% decrease, or a 2% increase on a constant currency basis, compared to the prior year period. Net sales were impacted by $28.2 million from foreign exchange rate movements versus the prior year period.
  • Operating income of $8.6 million; adjusted operating income of $67.2 million.
  • EBITDA of $82 million compared to $83 million in the prior year period; adjusted EBITDA of $86 million compared to $91 million in the prior year.
  • Earnings per diluted share was breakeven compared to a loss per diluted share of $0.86 in the prior year period; adjusted earnings per diluted share of $0.43 was in-line with the prior year period, and foreign currency exchange rates impacted reported results by $0.03 per diluted share.
  • Strong operating cash flow of $69 million.

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.

Fiscal Year 2017
For fiscal year 2017, the Company reported:

  • Net sales of $2.853 billion, a 1% decrease, or a 3% increase on a constant currency basis, compared to fiscal 2016 net sales of $2.885 billion. Net sales were impacted by $124.3 million in foreign exchange rate movements compared to the prior year.
  • Operating income of $111 million; adjusted operating income of $202 million.
  • EBITDA of $239 million compared to $362 million in the prior year; adjusted EBITDA of $275 million compared to $379 million in the prior year.
  • Earnings per diluted share of $0.65 compared to $0.46 in the prior year; adjusted earnings per diluted share of $1.22 compared to $1.85 in the prior year, and foreign currency exchange rates impacted reported results by $0.12 per diluted share.
  • Strong operating cash flow of $217 million.

Segment Highlights
Fourth Quarter 2017
Hain Celestial United States reported net sales of $309.0 million, an increase of 1% on a year-over-year basis including a $4.5 million impact from product rationalization and $2.9 million in foreign exchange movements driven by the Ella's Kitchen® brand.  Hain Celestial United Kingdom reported net sales of $194.8 million, a 10% decrease, compared to the prior year period, or a 3% increase adjusted for constant currency, acquisitions and divestitures.  Hain Pure Protein reported net sales of $122.2 million, an 8% increase compared to the prior year period.  Within the Rest of World segment, Hain Celestial Canada reported net sales of $40.2 million, a 2% increase, or a 7% increase on a constant currency basis, compared to the prior year period; Hain Celestial Europe reported net sales of $44.8 million, a 2% increase, or a 5% increase on a constant currency basis, compared to the prior year period.  The Company had strong brand sales in constant currency during the fourth quarter led by Earth's Best®, Terra®, Celestial Seasonings®, Imagine® and FreeBird® in the United States; Tilda, Ella's Kitchen®, Hartley's®, Linda McCartney's® and New Convent Garden Soup Co.® in the United Kingdom; Yves Veggie Cuisine®, Europe's Best® and Live Clean® in Canada and Lima® in Europe. 

Fiscal Year 2017
Hain Celestial United States reported net sales of $1.2 billion, a decrease of 5% on a year-over-year basis including a $60.0 million impact from inventory realignment of certain customers and product rationalization and $14.0 million in foreign exchange movements driven by the Ella's Kitchen® brand, which will be reported in the United Kingdom segment commencing in fiscal year 2018.  Hain Celestial United Kingdom reported net sales of $768.3 million, a 1% decrease, compared to the prior year, or a 6% increase adjusted for constant currency and acquisitions and divestitures.  Hain Pure Protein reported net sales of $509.6 million, a 3.5% increase compared to the prior year. Within the Rest of World segment, Hain Celestial Canada net sales of $151.5 million, a 7% increase on an actual and constant currency basis, compared to the prior year; Hain Celestial Europe reported net sales of $172.6 million, a 12% increase, or a 14% increase on a constant currency basis, compared to the prior year.  The Company had strong brand sales in constant currency during the fiscal year led by Terra®, Celestial Seasonings®, Imagine®, Alba Botanica®, Jason® and FreeBird® in the United States; Tilda®, Ella's Kitchen®, Hartley's®, Linda McCartney's®, New Convent Garden Soup Co.® and Sun-Pat® in the United Kingdom; Yves Veggie Cuisine®, Europe's Best® and Live Clean® in Canada and Lima® in Europe.   

Fiscal Year 2017 Achievements
The Company highlighted several of its achievements during fiscal year 2017, including executing on its strategic plan initiated in fiscal year 2016 to drive net sales and margin expansion, as follows:

  • Invested in Top Brands and Capabilities Globally
    • Increased strategic investments and consumer engagement in brand building assets.
    • Enhanced in-market and online retail activation.
    • Introduced over 200 new products worldwide.
  • Strategic Transactions
    • Expanded branded portfolio through two strategic acquisitions in the growing chilled category:
      • Yorkshire Provender™ under Hain Daniels and
      • Better Bean™ under Cultivate Ventures.
    • Entered into strategic joint venture with Future Group in India.
    • Licensed Rosetto® brand to Rosetto Foods LLC, a joint venture in which the Company holds a minority interest.
  • Project Terra
    • Established new core category platforms:
      • Better-For-You Baby, Better-For-You Pantry, Better-For-You Snacking, Fresh Living, Tea, Pure Personal Care and Cultivate Ventures.
    • Implemented stock-keeping unit ("SKU") rationalization, eliminating $24 million in net sales, or 20% of the SKUs in the United States.
    • Expanded global cost savings initiative to $350 million through fiscal year 2020 including annual productivity.
  • Enhanced Leadership Team to Deliver Strategic Plan
    • Strengthened management team with seasoned professionals including deep consumer products, brand building and natural product experience as well as financial industry expertise.

Irwin Simon concluded, "We are well-positioned among some of the fastest growing trends, categories and channels in consumer products today and are fortunate to have the financial flexibility to support our future business growth and capital allocation priorities.  We believe our continued ability to evolve our business as we grow our organic, natural and better-for-you brands, expand relationships with new and existing customers and attract new consumers globally, paired with Project Terra, will fuel our success and create long-term value for our shareholders."

Fiscal Year 2018 Guidance
The Company provided its annual guidance for fiscal year 2018:

  • Total net sales of $2.967 billion to $3.036 billion, an increase of approximately 4% to 6% as compared to fiscal year 2017.
  • Adjusted EBITDA of $350 million to $375 million, an increase of approximately 27% to 36% as compared to fiscal year 2017.
  • Adjusted earnings per diluted share of $1.63 to $1.80, an increase of approximately 34% to 48% as compared to fiscal year 2017.

Guidance, where adjusted, is provided on a non-GAAP basis, which excludes acquisition-related expenses, integration and restructuring charges, start-up costs, unrealized net foreign currency gains or losses, reserves for litigation matters and other non-recurring items that have been or may be incurred during the Company's fiscal year 2018, which the Company will continue to identify as it reports its future financial results. Guidance excludes the impact of any future acquisitions.

The Company has not reconciled its expected adjusted EBITDA to net income or adjusted earnings per diluted share to earnings per share under "Fiscal Year 2018 Guidance" 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.

Segment Results
Effective July 1, 2016, due to changes to the Company's internal management and reporting structure resulting from the formation of Cultivate Ventures, certain brands previously included within the United States operating segment were moved to a new operating segment called Cultivate.  As a result, the Company is now managed in eight operating segments: the United States (excluding Cultivate), United Kingdom, Tilda, Hain Pure Protein Corporation, Empire, Canada, Europe and Cultivate. The United States (excluding Cultivate) is its own reportable segment. Cultivate is now aggregated with Canada and Europe and reported within the "Rest of World". There were no changes to the United Kingdom (which includes Tilda) and Hain Pure Protein (which includes HPPC and Empire) reportable segments. The prior period segment information contained below has been adjusted to reflect the Company's new operating and reporting structure.















(unaudited and dollars in thousands)

United States

United
Kingdom

Hain Pure
Protein

Rest of World

Corporate/
Other

Total

NET SALES







Net sales - Three months ended 06/30/17

$          308,988

$          194,760

$          122,193

$             99,144

$                        -

$          725,085

Net sales - Three months ended 06/30/16

$          306,423

$          216,608

$          113,050

$          101,466

$                        -

$          737,547

% change - FY'17 net sales vs. FY'16 net sales

0.8%

-10.1%

8.1%

-2.3%


-1.7%








OPERATING INCOME







Three months ended 06/30/17







Operating income

$             46,053

$             16,957

$               1,413

$             10,117

$          (65,953)

$               8,587

Non-GAAP Adjustments (1)

-

942

-

-

57,661

58,603

Adjusted operating income

$             46,053

$             17,899

$               1,413

$             10,117

$             (8,292)

$             67,190

Adjusted operating income margin

14.9%

9.2%

1.2%

10.2%


9.3%

Three months ended 06/30/16







Operating income

$             54,653

$             11,907

$                   480

$             10,252

$        (142,430)

$          (65,138)

Non-GAAP Adjustments (1)

2,967

1,062

795

850

131,102

136,776

Adjusted operating income

$             57,620

$             12,969

$               1,275

$             11,102

$          (11,328)

$             71,638

Adjusted operating income margin

18.8%

6.0%

1.1%

10.9%


9.7%






























(unaudited and dollars in thousands)

United States

United
Kingdom

Hain Pure
Protein

Rest of World

Corporate/
Other

Total

NET SALES







Net sales - Twelve months ended 06/30/17

$       1,191,262

$          768,301

$          509,606

$          383,942

$                        -

$       2,853,111

Net sales - Twelve months ended 06/30/16

$       1,249,123

$          774,877

$          492,510

$          368,864

$                        -

$       2,885,374

% change - FY'17 net sales vs. FY'16 net sales

-4.6%

-0.8%

3.5%

4.1%


-1.1%








OPERATING INCOME







Twelve months ended 06/30/17







Operating income

$          157,506

$             39,749

$               1,382

$             32,010

$        (119,842)

$          110,805

Non-GAAP Adjustments (1)

6,193

4,696

-

(110)

80,402

91,181

Adjusted operating income

$          163,699

$             44,445

$               1,382

$             31,900

$          (39,440)

$          201,986

Adjusted operating income margin

13.7%

5.8%

0.3%

8.3%


7.1%

Twelve months ended 06/30/16







Operating income

$          203,481

$             56,000

$             31,558

$             27,898

$        (168,577)

$          150,360

Non-GAAP Adjustments (1)

5,858

2,082

4,734

1,438

141,011

155,123

Adjusted operating income

$          209,339

$             58,082

$             36,292

$             29,336

$          (27,566)

$          305,483

Adjusted operating income margin

16.8%

7.5%

7.4%

8.0%


10.6%








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

 

Webcasts and Upcoming 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 Company is also scheduled to present at Barclays Global Consumer Staples Conference on September 7, 2017 at 10:30 AM Eastern Time.  The events will be webcast  and 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 Celestial Seasonings®, Earth's Best®, Ella's Kitchen®, Terra®, Garden of Eatin'®, Sensible Portions®, Health Valley®, Arrowhead Mills®, MaraNatha®, SunSpire®, DeBoles®, Casbah®, Rudi's Organic Bakery®, Hain Pure Foods®, Spectrum®, Spectrum Essentials®, Imagine®, Almond Dream®, Rice Dream®, Soy Dream®, WestSoy®, The Greek Gods®, BluePrint®, FreeBird®, Plainville Farms®, Empire®, Kosher Valley®, Yves Veggie Cuisine®, Better Bean™, Europe's Best®, Cully & Sully®, New Covent Garden Soup Co.®, Yorkshire Provender™, Johnson's Juice Co.®, Farmhouse Fare®, Hartley's®, Sun-Pat®, Gale's®, Robertson's®, Frank Cooper's®, Linda McCartney®, Lima®, Danival®, Joya®, Natumi®, GG UniqueFiber®, Tilda®, JASON®, Avalon Organics®, Alba Botanica®, Live Clean® and Queen Helene®. Hain Celestial has been providing A Healthier Way of Life™ since 1993. For more information, visit www.hain.com.

Safe Harbor Statement
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of 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 facts. You can also identify forward-looking statements by discussions of guidance for the fiscal year 2018 strategy, plans or intentions related to our capital resources, performance and results of operations. Such 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 Company's beliefs or expectations relating to (i) the Company's guidance for Fiscal Year 2018; (ii) the Company's strategic plan including its ability to generate growth and execution against such plan and (iii) the Company's ability to deliver significant shareholder value creation; and the other risks detailed from time-to-time in the Company's reports filed with the Securities and Exchange Commission, including the Annual Report on Form 10-K for the fiscal year ended June 30, 2016, and our quarterly reports.  As a result of the foregoing and other factors, no assurance can be given as to the 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 excluding the impact of foreign currency, adjusted operating 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 months and 12 months ended June 30, 2017 and 2016 and in the paragraphs below. Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company's operations and are useful for period-over-period comparisons of operations. These non-GAAP financial measures should not be considered in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the Company's Consolidated Statements of Income presented in accordance with GAAP.

The Company defines Operating Free Cash Flow as cash provided from or used in operating activities (a GAAP measure) less capital expenditures. The Company views operating free cash flow as an important measure because it is one factor in evaluating the amount of cash available for discretionary investments. For the 12 months ended June 30, 2017 and 2016, operating free cash flow was calculated as follows:


Twelve Months Ended


06/30/2017


06/30/2016


(unaudited and dollars in thousands)

Cash flow provided by operating activities

$       216,624


$            206,575

Purchase of property, plant and equipment

(63,120)


(77,284)

Operating free cash flow

$       153,504


$            129,291

 

The Company's operating free cash flow was $153.5 million for the 12 months ended June 30, 2017, an increase of 19% from the 12 months ended June 30, 2016. 

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 year-to-year 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 defines EBITDA as net income or loss (a GAAP measure) before income taxes, net interest expense, depreciation and amortization, equity in net (income) loss of equity method investees, stock based compensation expense, impairment of long lived assets and intangibles, goodwill impairment, and unrealized currency gains and losses.  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 3 months ended June 30, 2017 and 2016 and the 12 months ended June 30, 2017 and 2016, EBITDA and adjusted EBITDA was calculated as follows:   


Three Months Ended 


Twelve Months Ended


6/30/2017


6/30/2016


6/30/2017


6/30/2016


(unaudited and dollars in thousands)









Net income (loss)

$               313


$  (88,597)


$           67,430


$    47,429

Provision for income taxes

2,520


11,086


21,842


70,932

Interest expense, net

4,922


4,866


18,446


22,231

Depreciation and amortization

17,397


17,524


68,697


65,622

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

(84)


(61)


(129)


47

Stock based compensation expense

2,139


2,683


9,658


12,688

Long-lived asset and tradename impairment

40,452


43,200


40,452


43,200

Goodwill impairment

-


84,548


-


84,548

Unrealized currency loss

14,056


7,739


12,570


14,831

EBITDA

81,715


82,988


238,966


361,528









Acquisition, restructuring, integration, severance,
and other charges

6,095


2,156


9,694


13,904

Chilled desserts contract related termination
costs

2,583


-


2,583


-

HPPC production interruption related to chiller
breakdown and factory start-up costs

-


594


-


4,705

Inventory costs for products discontinued or with
redesigned packaging

-


3,050


5,359


3,050

Costs incurred due to co-packer default

-


770


-


770

U.K. deferred synergies due to CMA Board
decision

-


949


918


949

U.K. factory start-up costs

-


-


-


743

U.S. warehouse consolidation project

-


197


-


623

Recall and other related costs

-


-


809


-

Accounting review costs

9,473


-


29,562


-

Litigation expenses

-


1,200


-


1,200

Celestial Seasonings marketing support and
Keurig transition

-


-


-


1,000

Tilda fire insurance recovery costs

-


112


-


342

Luton closure costs

-


-


1,804


-

Gain on Tilda fire related fixed assets

-


(739)


-


(9,752)

Realized currency gain on repayment of GBP
denominated debt

(14,290)


-


(14,290)


-

Adjusted EBITDA

$           85,576


$    91,277


$         275,405


$  379,062

 

 

THE HAIN CELESTIAL GROUP, INC.

Consolidated Balance Sheets

 (unaudited and in thousands) 










June 30,
2017


June 30,
2016













ASSETS





Current assets:





Cash and cash equivalents

$            146,992


$            127,926


Accounts receivable, net

248,436


278,933


Inventories

427,308


408,564


Prepaid expenses and other current assets

52,045


84,811



Total current assets

874,781


900,234







Property, plant and equipment, net

370,511


389,841

Goodwill


1,059,981


1,060,336

Trademarks and other intangible assets, net

573,268


604,787

Investments and joint ventures

18,998


20,244

Other assets

33,565


32,638



Total assets 

$         2,931,104


$         3,008,080







LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:





Accounts payable

$            222,136


$            251,712


Accrued expenses and other current liabilities

108,514


78,803


Current portion of long-term debt

9,844


26,513



Total current liabilities

340,494


357,028







Long-term debt, less current portion

740,304


836,171

Deferred income taxes 

121,475


131,507

Other noncurrent liabilities

15,999


18,860



Total liabilities

1,218,272


1,343,566







Stockholders' equity:





Common stock

1,080


1,075


Additional paid-in capital

1,137,724


1,123,206


Retained earnings

868,822


801,392


Accumulated other comprehensive loss

(195,479)


(172,111)


  Subtotal

1,812,147


1,753,562


Treasury stock

(99,315)


(89,048)



Total stockholders' equity

1,712,832


1,664,514









Total liabilities and stockholders' equity

$         2,931,104


$         3,008,080

 

 

THE HAIN CELESTIAL GROUP, INC.

 Consolidated Statements of Income 

 (unaudited and in thousands, except per share amounts) 













Three Months Ended June 30,


Twelve Months Ended June 30,



2017


2016


2017


2016



















Net sales


$                     725,085


$                     737,547


$                  2,853,111


$                  2,885,374

Cost of sales


575,366


587,466


2,311,739


2,271,243

Gross profit


149,719


150,081


541,372


614,131










Selling, general and administrative expenses


79,033


80,342


331,763


303,763

Amortization of acquired intangibles


4,438


4,973


18,402


18,869

Acquisition related expenses, restructuring and
  integration charges, and other


7,736


2,156


10,388


13,391

Accounting review costs


9,473


-


29,562


-

Goodwill impairment


-


84,548


-


84,548

Long-lived asset and tradename impairment


40,452


43,200


40,452


43,200










Operating income


8,587


(65,138)


110,805


150,360










Interest and other financing expenses, net


5,657


5,474


21,274


25,161

Other (income)/expense, net


181


7,699


388


16,543

Gain on fire insurance recovery


-


(739)


-


(9,752)










Income before income taxes and equity-method investees


2,749


(77,572)


89,143


118,408

Provision for income taxes


2,520


11,086


21,842


70,932

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


(84)


(61)


(129)


47










Net income (loss)


$                            313


$                     (88,597)


$                       67,430


$                       47,429










Net income per common share:









     Basic


$                              -


$                         (0.86)


$                           0.65


$                           0.46

     Diluted


$                              -


$                         (0.86)


$                           0.65


$                           0.46










Weighted average common shares outstanding:









Basic


103,693


103,453


103,611


103,135

Diluted


104,294


103,453


104,248


104,183

 

 

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,



2017 GAAP

Adjustments

2017 Adjusted


2016 GAAP

Adjustments

2016 Adjusted



















Net sales


$            725,085

$                      -

$            725,085


$            737,547

$                      -

$            737,547

Cost of sales


575,366

(942)

574,424


587,466

(5,061)

582,405

Operating expenses (a) 


123,923

(40,452)

83,471


213,063

(129,559)

83,504

Acquisition related expenses, restructuring and
  integration charges, and other


7,736

(7,736)

-


2,156

(2,156)

-

Accounting review costs


9,473

(9,473)

-


-

-

-

Operating Income


8,587

58,603

67,190


(65,138)

136,776

71,638

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


5,838

234

6,072


12,434

(7,000)

5,434

Provision for income taxes


2,520

14,332

16,852


11,086

9,844

20,930

Net income (loss)


313

44,037

44,350


(88,597)

133,932

45,335

Earnings (loss) per share - diluted


-

0.42

0.43


(0.86)

1.29

0.43



















Detail of Adjustments:

















Three Months
Ended June 30,




Three Months
Ended June 30,





2017




2016











HPP chiller breakdown related costs



$                        -




$                   594


Inventory costs for products discontinued or having redesigned
packaging



-




3,050


UK deferred synergies due to CMA Board decision



-




450


Costs incurred due to co-packer default



-




770


Acquisition related integration costs



-




197


Chilled desserts write off of maintenance parts & packaging



942




-


Cost of sales



942




5,061











UK deferred synergies due to CMA Board decision



-




499


Tilda fire insurance recovery costs and other setup/integration
costs



-




112


Litigation expenses



-




1,200


Goodwill impairment



-




84,548


Tradename impairment



14,079




39,724


Fixed asset impairment



26,373




3,476


Operating Expenses (a)



40,452




129,559











Acquisition related expenses, restructuring and
  integration charges, and other



7,736




2,156


Acquisition related expenses, restructuring and
  integration charges, and other



7,736




2,156




















Accounting review costs



9,473




-


Accounting review costs



9,473




-











Operating income



58,603




136,776











Unrealized currency loss



14,056




7,739


Realized currency gain on repayment of GBP denominated
debt



(14,290)




-


Gain on insurance recovery on Tilda related fixed asset
purchases



-




(739)


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



(234)




7,000











Income tax related adjustments



14,332




9,844


Provision for income taxes



14,332




9,844











Net income



$              44,037




$            133,932











(a)Operating expenses include amortization of acquired intangibles, selling, general, and administrative expenses and goodwill, long-lived assets and tradename impairment.

(b)Interest and other expenses, net include interest and other financing expenses, net, other (income)/expense, net, and gain on fire insurance recovery.

 

 

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,



2017 GAAP

Adjustments

2017 Adjusted


2016 GAAP

Adjustments

2016 Adjusted



















Net sales


$          2,853,111

$                       -

$          2,853,111


$          2,885,374

$                       -

$          2,885,374

Cost of sales


2,311,739

(7,205)

2,304,534


2,271,243

(10,639)

2,260,604

Operating expenses (a) 


390,617

(44,026)

346,591


450,380

(131,093)

319,287

Acquisition related expenses, restructuring and
  integration charges, and other


10,388

(10,388)

-


13,391

(13,391)

-

Accounting review costs


29,562

(29,562)

-


-

-

-

Operating Income


110,805

91,181

201,986


150,360

155,123

305,483

Interest and other expenses, net (b) 


21,662

1,720

23,382


31,952

(5,293)

26,659

Provision for income taxes


21,842

29,883

51,725


70,932

14,958

85,890

Net income


67,430

59,578

127,008


47,429

145,458

192,887

Earnings per share - diluted


0.65

0.57

1.22


0.46

1.40

1.85



















Detail of Adjustments:





















Twelve Months
Ended June 30,




Twelve Months
Ended June 30,





FY 2017




FY 2016











HPPC production interruption related to chiller breakdown and
factory start up costs



$                         -




$                 4,489


UK factory start up costs



-




743


US warehouse consolidation



-




426


Inventory costs for products discontinued or having redesigned
packaging



5,359




3,050


Recall and other costs



73




-


UK deferred synergies due to CMA Board decision



367




450


Luton closure costs



464




-


Costs incurred due to co-packer default



-




770


Acquisition related integration costs



-




711


Chilled desserts write off of maintenance parts & packaging



942




-


Cost of sales



7,205




10,639











Luton closure costs



1,340




-


Tilda fire insurance recovery costs and other



947




342


UK deferred synergies due to CMA Board decision



551




499


Recall and other costs



736




-


Keurig transition



-




1,304


Litigation expenses



-




1,200


Goodwill impairment



-




84,548


Tradename impairment



14,079




39,724


Fixed asset impairment



26,373




3,476


Operating Expenses (a)



44,026




131,093











Acquisition related expenses, restructuring and
  integration charges, and other



10,388




13,391


Acquisition related expenses, restructuring and
  integration charges, and other



10,388




13,391











Accounting review costs



29,562




-


Accounting review costs



29,562




-











Operating income



91,181




155,123











Unrealized currency loss



12,570




14,831


Realized currency gain on repayment of GBP denominated debt



(14,290)




-


Gain on insurance recovery on Tilda related fixed asset
purchases



-




(9,752)


HPP chiller disposal



-




214


Interest and other expenses, net (b) 



(1,720)




5,293











Income tax related adjustments



29,883




14,958


Provision for income taxes



29,883




14,958











Net income



$               59,578




$             145,458











(a)Operating expenses include amortization of acquired intangibles, selling, general, and administrative expenses and goodwill, long-lived assets and tradename impairment.

(b)Interest and other expenses, net include interest and other financing expenses, net, other (income)/expense, net, and gain on fire insurance recovery.

 

 

THE HAIN CELESTIAL GROUP, INC.

(unaudited and in thousands)











Net Sales Growth at Constant Currency:


Hain Consolidated


United States


United Kingdom


Canada


Europe

 Net sales - Three months ended 06/30/17 

$                 725,085


$                 308,988


$                 194,760


$                   40,239


$                   44,774

 Impact of foreign currency exchange 

28,169


2,899


22,292


1,731


1,247


$                 753,254


$                 311,887


$                 217,052


$                   41,970


$                   46,021











Net sales - Three months ended 06/30/16

$                 737,547


$                 306,423


$                 216,608


$                   39,289


$                   43,743


2.1%


1.8%


0.2%


6.8%


5.2%












Hain Consolidated


United States


United Kingdom


Canada


Europe

 Net sales - Twelve months ended 06/30/17 

$              2,853,111


$              1,191,262


$                 768,301


$                 151,456


$                 172,604

 Impact of foreign currency exchange 

124,319


14,032


106,650


303


3,334


$              2,977,430


$              1,205,294


$                 874,951


$                 151,759


$                 175,938











Net sales - Twelve months ended 06/30/16

$              2,885,374


$              1,249,123


$                 774,877


$                 141,851


$                 154,589


3.2%


-3.5%


12.9%


7.0%


13.8%





















Net Sales Growth at Constant Currency and Adjusted for Acquisitions/Divestitures:












United Kingdom







Net sales on a constant currency basis - Three months
ended 06/30/17

$                 217,052



















Net sales - Three months ended 06/30/16

$                 216,608









 Acquisitions 

1,175









 Divestitures 

(7,188)










$                 210,595










3.1%




















United Kingdom









Net sales on a constant currency basis - Twelve months
ended 06/30/17

$                 874,951









 Impact of foreign currency exchange on acquisitions 

15,804










$                 890,755



















Net sales - Twelve months ended 06/30/16

$                 774,877









 Acquisitions 

86,190









 Divestitures 

(21,024)










$                 840,043










6.0%









 

 

View original content with multimedia:http://www.prnewswire.com/news-releases/hain-celestial-announces-fourth-quarter-and-fiscal-year-financial-2017-results-300510592.html

SOURCE The Hain Celestial Group, Inc.

James Langrock/Mary Anthes, The Hain Celestial Group, Inc., 516-587-5000

 
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