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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 Third Quarter Fiscal Year 2016 Results
Net Sales Reach $750 Million, a 13% Increase or 15% on a Constant Currency Basis
Earnings Per Diluted Share $0.47, a 47% Increase
Adjusted Earnings Per Diluted Share $0.49, a 9% Increase

LAKE SUCCESS, N.Y., May 4, 2016 /PRNewswire/ -- The Hain Celestial Group, Inc. (NASDAQ: HAIN), a leading organic and natural products company with operations in North America, Europe and India providing consumers with A Healthier Way of Life™, today reported results for its third quarter ended March 31, 2016.

Third Quarter Performance Highlights

  • Net sales of $750.0 million, a 13% increase, or 15% on a constant currency basis, over prior year period net sales of $662.7 million.  Net sales were impacted by $13.9 million of foreign exchange rate movements versus a year ago.
  • Hain Celestial US net sales increased by 2.7% on a constant currency basis over the prior year period.    
  • Earnings per diluted share of $0.47, a 47% increase over the prior year period, or on an adjusted basis $0.49, a 9% increase over the prior year period. Foreign currencies impacted reported results by $0.01 per diluted share.
  • Operating income of $69.0 million, or 9.2% of net sales; adjusted operating income of $80.4 million, or 10.7% of net sales.
  • Strong nine month operating cash flow of $131 million, an increase of 87% over the prior year period. 

"Our net sales reflect the strong performance across our businesses led by Hain Celestial United States, Hain Pure Protein, Hain Celestial United Kingdom and Hain Celestial Europe as well as Hain Celestial Canada," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial.  "The diversification of our product portfolio with leading organic, natural and better-for-you brands around the world, combined with our team's solid execution of our operational initiatives fueled our financial performance.  We are extremely pleased with our US results where we returned to growth in the third quarter and expect these trends to continue."

Third Quarter 2016  
The United States segment reported third quarter net sales of $351.9 million.  In the United Kingdom segment, net sales were $208.4 million. Hain Pure Protein reported net sales of $113.6 million, and the Rest of World segment reported net sales of $75.9 million.  The Company had strong branded sales in constant currency led by Imagine®, Plainville Farms®, Terra®, Garden of Eatin'®, Tilda®, Yves®, FreeBird®, The Greek Gods®, Spectrum® and Sensible Portions® brands as well as its personal care brands, Alba Botanica® and Jason®.  Net sales of Joya® brand and the Orchard House Foods business, both acquired after the third quarter of fiscal year 2015 also contributed to the net sales growth.

The Company earned net income of $49.0 million, a 47% increase, and adjusted net income of $50.6 million, a 9% increase, compared to the prior year period.  Earnings per diluted share for the third quarter were $0.47, a 47% increase compared to the prior year period.  On an adjusted basis earnings per diluted share for the third quarter were $0.49, a 9% increase compared to the prior year period.   Refer to "Non-GAAP Financial Measures" section in this press release for reconciliations.

Project Terra  
As previously communicated, the Company commenced a strategic review under Project Terra and has identified approximately $100 million in global cost savings, which it expects to achieve during fiscal years 2017 through 2019.  These initiatives are expected to include optimizing plants, co-packers and procurement and rationalizing the Company's product portfolio, and reinvesting these incremental savings into the business to further brand building efforts and household penetration.  Effective immediately, James R. Meiers has been appointed to the newly-created position of Chief Operations Officer for Hain Celestial reporting to Irwin Simon, with responsibility for achieving the cost savings across the Company's worldwide operations.

The strategic review has also resulted in the Company redefining its core platforms for future growth based upon consumer trends to create and inspire A Healthier Way of Life™.  The core platforms are now defined by common consumer need, route-to-market or internal advantage and are aligned with the Company's strategic roadmap to continue its leadership position in the organic and natural, better-for-you industry.   

Beginning in fiscal year 2017, the Company plans to establish five strategic platforms within Hain Celestial US with the purpose to drive accelerated net sales and margin growth.  The platforms will be: 

  • Fresh Living—includes poultry, yogurt, plant-based proteins and other refrigerated products;
  • Better-for-You Baby—includes infant foods, infant formula, diapers and wipe products that nurture and care for babies and toddlers;  
  • Better-for-You Snacking—wholesome products for in-between meals;
  • Better-for-You Pantry—core consumer staples; and
  • Pure Personal Care—personal care products focused on providing consumers with cleaner and gentler ingredients.

In addition, the Company will launch Cultivate Ventures ("Cultivate"), a venture unit whose purpose is threefold:  (i) to strategically invest in the Company's smaller brands in high potential categories such as SunSpire® chocolates and DeBoles® pasta by giving them a dedicated, creative focus for refresh and relaunch; (ii) to incubate small acquisitions until they reach the scale for the Company's core platforms; and (iii) to invest in concepts, products and technology, which focus on health and wellness. 

Hain Celestial Core Platforms for Future Growth.

The Company has also identified certain brands representing approximately $30 million in sales, which no longer fit into its core strategy for future growth, and it intends to sell these as a group. 

"We are excited about the launch of our new platforms in fiscal year 2017, which are uniquely aligned with consumer eating habits and usage needs," commented Irwin Simon. "We believe our platforms represent distinct opportunities for incremental growth and margin improvement.  We expect this new approach will enable us to define more distinct channel strategies for our branded product offerings, and ensure that we continue to extend our organic and natural industry leadership position."

Fiscal Year 2016 Guidance  
The Company updated its fiscal year 2016 guidance expectations:

  • Total net sales range of $2.946 billion to $2.966 billion, an increase of approximately 9% to 10% as compared to fiscal year 2015,  and
  • Earnings per diluted share range of $2.00 to $2.04, an increase of approximately 6% to 9% as compared to fiscal year 2015. 

Guidance is provided on a non-GAAP basis and 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, including any product recalls or market withdrawals, that have been or may be incurred during the Company's fiscal year 2016, which the Company will continue to identify as it reports its future financial results.  Guidance excludes the impact of any future acquisitions.

Segment Results   
The Company's operations are managed into the following segments:  United States, United Kingdom, Hain Pure Protein and Rest of World (comprised of Canada and Continental Europe). 

The following is a summary of results for the three and nine months ended March 31, 2016 by reportable segment:

(dollars in thousands)

United States

United Kingdom

Hain Pure Protein

Rest of World

Corporate/
Other

Total

NET SALES







Net sales - Three months ended 03/31/16

$             351,887

$             208,391

$             113,643

$               75,941

$                         -

$             749,862








Net sales - Three months ended 03/31/15

$             343,728

$             178,068

$               83,192

$               57,751

$                         -

$             662,739








% change - FY'16 net sales vs. FY'15 net sales

2.4%

17.0%

36.6%

31.5%


13.1%








OPERATING INCOME







Three months ended 03/31/16







Operating income

$               54,546

$               16,217

$                 4,613

$                 6,198

$             (12,567)

$               69,007

Non-GAAP Adjustments (1)

$                 2,700

$                         -

$                 3,054

$                         -

$                 5,701

$               11,455

Adjusted operating income

$               57,246

$               16,217

$                 7,667

$                 6,198

$               (6,866)

$               80,462

Adjusted operating income margin

16.3%

7.8%

6.7%

8.2%


10.7%








Three months ended 03/31/15







Operating income

$               55,851

$               11,760

$                 4,970

$                 4,412

$             (16,799)

$               60,194

Non-GAAP Adjustments (1)

$                 3,188

$                 3,838

$                         -

$                         -

$               10,326

$               17,352

Adjusted operating income

$               59,039

$               15,598

$                 4,970

$                 4,412

$               (6,473)

$               77,546

Adjusted operating income margin

17.2%

8.8%

6.0%

7.6%


11.7%








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



















(dollars in thousands)

United States

United Kingdom

Hain Pure Protein

Rest of World

Corporate/
Other

Total

NET SALES







Net sales - Nine months ended 03/31/16(1)

$          1,025,398

$             567,971

$             379,336

$             216,934

$                         -

$          2,189,639








Net sales - Nine months ended 03/31/15

$          1,034,612

$             551,144

$             240,078

$             164,545

$                         -

$          1,990,379

Non-GAAP Adjustments (2)

$               15,773

$                         -

$                         -

$                    928

$                         -

$               16,701

Adjusted net sales - Nine months ended 03/31/15

$          1,050,385

$             551,144

$             240,078

$             165,473

$                         -

$          2,007,080








% change - FY'16 net sales vs. FY'15 adjusted net sales

-2.4%

3.1%

58.0%

31.1%


9.1%








OPERATING INCOME







Nine months ended 03/31/16







Operating income

$             149,233

$               45,189

$               33,009

$               12,981

$             (26,216)

$             214,196

Non-GAAP Adjustments (2)

$                 6,597

$                 1,020

$                 3,940

$                    515

$               10,293

$               22,365

Adjusted operating income

$             155,830

$               46,209

$               36,949

$               13,496

$             (15,923)

$             236,561

Adjusted operating income margin

15.2%

8.1%

9.7%

6.2%


10.8%








Nine months ended 03/31/15







Operating income

$             141,031

$               29,618

$               16,505

$               10,660

$             (34,781)

$             163,033

Non-GAAP Adjustments (2)

$               33,546

$               12,002

$                    140

$                 2,187

$               12,822

$               60,697

Adjusted operating income

$             174,577

$               41,620

$               16,645

$               12,847

$             (21,959)

$             223,730

Adjusted operating income margin

16.6%

7.6%

6.9%

7.8%


11.1%








(1) There were no Non-GAAP adjustments to net sales for the nine months ended 03/31/16





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





Webcasts  
Hain Celestial will host a conference call and webcast at 8:30 AM Eastern Time today to review its third quarter fiscal year 2016 results.  The conference call will be webcast and available under the Investor Relations section of the Company's website at www.hain.com.

On Thursday, May 19, 2016 at 8:50 AM Eastern Time the Company is scheduled to present at BMO Capital Markets 2016 Farm to Market Conference.  The presentation will be webcast and available under the Investor Relations section of the Company's website at www.hain.com.

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 and India.  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®, Gluten Free Café™, Hain Pure Foods®, Spectrum®, Spectrum Essentials®, Walnut Acres Organic®, Imagine®, Almond Dream®, Rice Dream®, Soy Dream®, WestSoy®, The Greek Gods®, BluePrint®, FreeBird®, Plainville Farms®, Empire®, Kosher Valley®, Yves Veggie Cuisine®, Europe's Best®, Cully & Sully®, New Covent Garden Soup Co.®, 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", "remain", "potential", "can", "should", "could", "future" and similar expressions, or the negative of those expressions.  These forward-looking statements include the Company's beliefs or expectations relating to (i) the Company's growth trends, initiatives and strategies with respect to Project Terra and its strategic platforms; (ii) the Company's ability to achieve approximately $100 million in global cost savings; and (iii) the Company's guidance for net sales and earnings per diluted share for fiscal year 2016.  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.  Such factors include, among others, general economic and financial market conditions; competition; our ability to respond to changes and trends in customer and consumer demand, preferences and consumption; our reliance on third party distributors, manufacturers and suppliers; the consolidation or loss of a significant customer; our ability to introduce new products and improve existing products; availability and retention of key personnel; our ability to effectively integrate our acquisitions; our ability to successfully consummate any proposed divestitures; liabilities arising from potential product recalls, market withdrawals or product liability claims; outbreaks of diseases or food-borne illnesses; potential litigation; the availability of organic and natural ingredients; our ability to manage our supply chain effectively; changes in fuel, raw material and commodity costs; effects of climate change on our business and operations; our ability to offset input cost increases; the interruption, disruption or loss of operations at one or more of our manufacturing facilities; the loss of one or more of our independent co-packers; the disruption of our transportation systems; risks associated with expansion into countries in which we have no prior operating experience; risks associated with our international sales and operations, including foreign currency risks; impairment in the carrying value of our goodwill or other intangible assets; our ability to use our trademarks; reputational damage; changes in, or the failure to comply with, government laws and regulations; liabilities or claims with respect to environmental matters; our reliance on independent certification for our products; a breach of security measures; our reliance on our information technology systems; effects of general global capital and credit market issues on our liquidity and cost of borrowing; potential liabilities not covered by insurance; the ability of joint venture investments to successfully execute business plans; dilution in the value of our common shares; 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, 2015.  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. 

Non-GAAP Financial Measures

This press release and the accompanying tables include non-GAAP financial measures, including adjusted operating income, adjusted net income, adjusted earnings per diluted share, adjusted EBITDA (defined below) 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 nine months ended March 31, 2016 and 2015 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 nine months ended March 31, 2016 and 2015, operating free cash flow was calculated as follows:


Nine Months Ended


03/31/2016


03/31/2015


(dollars in thousands)

Cash flow provided by operating activities

$

131,853



$

70,169


Purchases of property, plant and equipment

(58,022)



(36,312)


Operating free cash flow

$

73,831



$

33,857


Our operating free cash flow was $73.8 million for the nine months ended March 31, 2016, an increase of $40.0 million from the nine months ended March 31, 2015.  The increase in operating free cash flow primarily resulted from an increase in net income.  This was offset partially by an increase in our capital expenditures principally related to the purchase of a new factory location and production equipment in the Hain Pure Protein segment to accommodate current demand, as well as the expansion of production lines at both our ready-to-heat rice facility in the United Kingdom and our plant-based beverage facilities in Europe to accommodate new products and increased volume. 

The Company defines adjusted EBITDA as net income (a GAAP measure) before income taxes, net interest expense, depreciation and amortization, impairment of long lived assets, equity in the earnings of non-consolidated affiliates, stock based compensation, acquisition-related expenses, including integration and restructuring charges, and other non-recurring items.  The Company's management believes that this presentation provides 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 this measure for reviewing the financial results of the Company and as a component of performance-based executive compensation. 

For the three months and nine months ended March 31, 2016 and 2015, adjusted EBITDA was calculated as follows:


3 Months Ended


9 Months Ended


3/31/2016


3/31/2015


3/31/2016


3/31/2015


(dollars in thousands)

Net Income

$    48,985


$    33,394


$  137,234


$    96,824

Income taxes

21,576


18,147


57,337


45,144

Interest expense, net

6,233


5,670


17,365


17,644

Depreciation and amortization

16,085


14,162


47,190


43,064

Equity in earnings of affiliates

161


13


108


(315)

Stock based compensation

2,776


2,935


10,004


8,934

Tradename impairment charge

-


5,510


-


5,510

Acquisition related fees and expenses,
  integration and restructuring charges,
  including severance, and other

4,190


5,572


10,855


8,789

Contingent consideration expense

1,511


-


1,511


281

Nut butter recall

-


-


-


30,110

European non-dairy beverage withdrawal

-


-


-


2,187

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

3,054


-


4,111


-

Ashland factory and related expenses

-


2,142


-


2,142

UK factory start-up costs

-


2,512


743


8,533

US warehouse consolidation project

-


-


426


-

Fakenham inventory allowance for fire

-


-


-


900

Litigation expenses

-


518


-


891

Celestial Seasonings packaging launch support and Keurig transition

2,700


-


4,704


-

Tilda fire insurance recovery costs and other start-up/ integration costs

-


1,098


230


1,354

Gain on Tilda fire 

(9,013)


-


(9,013)


-

Gain on pre-existing investment in HPPC and Empire Kosher

-


(2,922)


-


(8,256)

Adjusted EBITDA

$    98,258


$    88,751


$  282,805


$  263,736









 

 

THE HAIN CELESTIAL GROUP, INC.

Consolidated Balance Sheets

(In thousands)










March 31,
2016


June 30,
2015




 (Unaudited) 









ASSETS





Current assets:





Cash and cash equivalents

$            125,390


$            166,922


Accounts receivable, net

360,964


320,197


Inventories

394,958


382,211


Deferred income taxes

21,421


20,758


Prepaid expenses and other current assets

43,469


42,931



Total current assets

946,202


933,019







Property, plant and equipment, net

392,719


344,262

Goodwill, net

1,195,305


1,136,079

Trademarks and other intangible assets, net

643,940


647,754

Investments and joint ventures

20,034


2,305

Other assets

32,966


33,851



Total assets 

$         3,231,166


$         3,097,270







LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:





Accounts payable

$            233,642


$            251,999


Accrued expenses and other current liabilities

93,050


79,167


Current portion of long-term debt

37,806


31,275



Total current liabilities

364,498


362,441







Long-term debt, less current portion

879,627


812,608

Deferred income taxes 

142,188


145,297

Other noncurrent liabilities

5,986


5,237



Total liabilities

1,392,299


1,325,583







Stockholders' equity:





Common stock

1,075


1,058


Additional paid-in capital

1,120,777


1,073,671


Retained earnings

934,748


797,514


Accumulated other comprehensive loss

(129,062)


(42,406)


  Subtotal

1,927,538


1,829,837


Treasury stock

(88,671)


(58,150)



Total stockholders' equity

1,838,867


1,771,687









Total liabilities and stockholders' equity

$         3,231,166


$         3,097,270







 

 

THE HAIN CELESTIAL GROUP, INC.

 Consolidated Statements of Income 

 (unaudited and in thousands, except per share amounts) 













Three Months Ended March 31,


Nine Months Ended March 31,



2016


2015


2016


2015



















Net sales


$                     749,862


$                     662,739


$                  2,189,639


$                  1,990,379

Cost of sales


576,653


504,990


1,686,820


1,539,459

Gross profit


173,209


157,749


502,819


450,920










Selling, general and administrative expenses


93,915


83,068


262,776


262,613

Amortization/impairment of acquired intangibles


4,586


10,189


13,994


19,001

Acquisition related expenses, restructuring and
  integration charges, and other


5,701


4,298


11,852


6,273










Operating income


69,007


60,194


214,197


163,033










Interest and other expenses, net


(1,715)


8,640


19,518


21,380

Income before income taxes and equity in earnings of
   equity-method investees


70,722


51,554


194,679


141,653

Provision for income taxes


21,576


18,147


57,337


45,144

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


161


13


108


(315)










Net income


$                       48,985


$                       33,394


$                     137,234


$                       96,824










Net income per common share:









     Basic


$                           0.47


$                           0.33


$                           1.33


$                           0.95

     Diluted


$                           0.47


$                           0.32


$                           1.32


$                           0.94










Weighted average common shares outstanding:









Basic


103,265


102,252


103,030


101,401

Diluted


104,087


103,796


104,168


103,226










 

 

THE HAIN CELESTIAL GROUP, INC.

 Reconciliation of GAAP Results to Non-GAAP Measures 

 (unaudited and in thousands, except per share amounts) 





















Three Months Ended March 31,



2016 GAAP

Adjustments

2016 Adjusted


2015 GAAP

Adjustments

2015 Adjusted













Net sales


$                     749,862

$                -

$              749,862


$                     662,739

$                -

$              662,739

Cost of sales


576,653

(3,054)

573,599


504,990

(5,928)

499,062

Operating expenses (a)


98,501

(2,700)

95,801


93,257

(7,126)

86,131

Acquisition related expenses, restructuring and
  integration charges, and other


5,701

(5,701)

-


4,298

(4,298)

-

Operating Income


69,007

11,455

80,462


60,194

17,352

77,546

Interest and other expenses, net


(1,715)

9,149

7,434


8,640

(2,216)

6,424

Provision for income taxes


21,576

712

22,288


18,147

6,427

24,574

Net income


48,985

1,594

50,579


33,394

13,141

46,535

Earnings per share - diluted


0.47

0.02

0.49


0.32

0.13

0.45










(a)Operating expenses include amortization/impairment of acquired intangibles and selling, general, and administrative expenses.























Three Months Ended March 31,



FY 2016


FY 2015



Impact on Income Before Income Taxes


Impact on Income Tax Provision


Impact on Income Before Income Taxes


Impact on Income Tax Provision










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


3,054


943


-


-

Ashland factory and related expenses


-


-


2,142


814

UK factory start-up costs


-


-


2,512


521

Acquisition and other integration costs


-


-


1,274


427

Cost of sales


3,054


943


5,928


1,762










Celestial Seasonings packaging launch support


2,700


833


-


-

Tilda fire insurance recovery costs and other start-up/
  integration costs


-


-


1,098


275

Litigation expenses


-


-


518


197

Selling, general and administrative expenses


2,700


833


1,616


472










Tradename impairment charge


-


-


5,510


1,102

Amortization/impairment of acquired intangibles


-


-


5,510


1,102










Acquisition related fees and expenses, integration and
   restructuring charges, including severance, and other


4,190


1,294


4,298


1,463

Contingent consideration expense


1,511


466


-


-

Acquisition related expenses, restructuring and
  integration charges, and other


5,701


1,760


4,298


1,463










Unrealized currency impacts


(136)


(42)


5,138


1,628

Gain on Tilda fire 


(9,013)


(2,782)


-


-

Gain on pre-existing investment in HPPC and Empire Kosher


-


-


(2,922)


-

Interest and other expenses, net


(9,149)


(2,824)


2,216


1,628










Total adjustments


$                         2,306


$                     712


$                       19,568


$                  6,427










 

 

THE HAIN CELESTIAL GROUP, INC.

 Reconciliation of GAAP Results to Non-GAAP Measures 

 (unaudited and in thousands, except per share amounts) 





















Nine Months Ended March 31,



2016 GAAP

Adjustments

2016 Adjusted


2015 GAAP

Adjustments

2015 Adjusted













Net sales


$                  2,189,639

$                -

$           2,189,639


$                  1,990,379

$        16,701

$           2,007,080

Cost of sales


1,686,820

(5,578)

1,681,242


1,539,459

(25,059)

1,514,400

Operating expenses (a)


276,770

(4,934)

271,836


281,614

(12,664)

268,950

Acquisition related expenses, restructuring and
  integration charges, and other


11,852

(11,852)

-


6,273

(6,273)

-

Operating Income


214,197

22,364

236,561


163,033

60,697

223,730

Interest and other expenses, net


19,518

1,706

21,224


21,380

(2,466)

18,914

Provision for income taxes


57,337

9,988

67,325


45,144

23,257

68,401

Net income


137,234

10,670

147,904


96,824

39,906

136,730

Earnings per share - diluted


1.32

0.10

1.42


0.94

0.38

1.32










(a)Operating expenses include amortization/impairment of acquired intangibles and selling, general, and administrative expenses.

























Nine Months Ended March 31,



FY 2016


FY 2015



Impact on Income Before Income Taxes


Impact on Income Tax Provision


Impact on Income Before Income Taxes


Impact on Income Tax Provision










Nut butter recall


$                                 -


$                          -


$                       15,773


$                  5,994

European non-dairy beverage withdrawal


-


-


928


316

Net sales


-


-


16,701


6,310










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


3,895


1,263


-


-

US warehouse consolidation project


426


162


-


-

UK factory start-up costs


743


149


8,533


1,770

Acquisition and other integration costs


514


155


2,797


817

Ashland factory and related expenses


-


-


2,142


814

Nut butter recall


-


-


9,428


3,583

European non-dairy beverage withdrawal


-


-


1,259


428

Fakenham inventory allowance for fire


-


-


900


187

Cost of sales


5,578


1,729


25,059


7,599










Celestial Seasonings packaging launch support
  and Keurig transition


4,704


1,595


-


-

Tilda fire insurance recovery costs and other start-up/
  integration costs


230


46


1,354


352

Nut butter recall


-


-


4,909


1,864

Litigation expenses


-


-


891


339

Selling, general and administrative expenses


4,934


1,641


7,154


2,555










Tradename impairment charge


-


-


5,510


1,102

Amortization/impairment of acquired intangibles


-


-


5,510


1,102










Acquisition related fees and expenses, integration and restructuring
  charges, including severance, and other


10,341


3,223


5,992


2,100

Contingent consideration expense


1,511


466


281


-

Acquisition related expenses, restructuring and
  integration charges, and other


11,852


3,689


6,273


2,100










Unrealized currency impacts


7,091


2,344


10,957


3,561

Gain on Tilda fire 


(9,013)


(2,782)


-


-

Gain on disposal of investment held for sale


-


-


(314)


-

Gain on pre-existing investment in HPPC and Empire Kosher


-


-


(8,256)


-

Interest accretion and other items, net


-


-


79


30

HPPC chiller disposal


216


82


-


-

Interest and other expenses, net


(1,706)


(356)


2,466


3,591










UK tax rate change impact on deferred taxes and
   uncertain tax position reserve


-


3,285


-


-

Provision for income taxes


-


3,285


-


-



















Total adjustments


$                       20,658


$                  9,988


$                       63,163


$                23,257



















 

 

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

Photo - http://photos.prnewswire.com/prnh/20160503/363415   
Logo -  http://photos.prnewswire.com/prn/20130502/NY06743LOGO

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/hain-celestial-announces-third-quarter-fiscal-year-2016-results-300262511.html

SOURCE The Hain Celestial Group, Inc.

Pat Conte/Mary Anthes, The Hain Celestial Group, Inc., 516-587-5000

 
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