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Hain Celestial Reports First Quarter Fiscal Year 2021 Financial Results
Third Consecutive Quarter of Net Sales Growth
 
360 Basis Point Expansion of Gross Margin
 
$44 Million Improvement in Operating Cash Flow
 
Gross Margin Improvement and Adjusted EBITDA Growth Expected to Continue

LAKE SUCCESS, N.Y., Nov. 9, 2020 /PRNewswire/ -- The Hain Celestial Group, Inc. (Nasdaq: HAIN) ("Hain Celestial", "Hain" 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 first quarter ended September 30, 2020. The results contained herein are presented with the Hain Pure Protein and Tilda operating segments being treated as discontinued operations. All growth comparisons are against corresponding prior year period unless otherwise noted.

Mark L. Schiller, Hain Celestial's President and Chief Executive Officer, commented, "We are very pleased with our first quarter results, which exceeded our initial expectations of several hundred basis points of margin expansion, significant growth in adjusted EBITDA and mid-single digit adjusted net sales growth. The strength in adjusted earnings, in both the North America and International segments once again showcases our continued ability to execute against our transformational plan. While the current macro operating environment remains fluid, we remain confident and committed to sustainable long-term growth, including continued gross and adjusted EBITDA margin expansion and double-digit adjusted EBITDA growth in fiscal year 2021."

FINANCIAL HIGHLIGHTS1

Summary of First Quarter Results from Continuing Operations2 

  • Net sales increased 3% to $498.6 million, or 1% on a constant currency basis, compared to the prior year period.
  • When adjusted to exclude the effects of foreign exchange, divestitures and discontinued brands, net sales increased 5% compared to the prior year period.
  • Gross margin of 23.9%, a 360 basis point increase from the prior year period.
  • Adjusted gross margin of 24.1%, a 326 basis point increase from the prior year period.
  • Operating income of $3.3 million compared to $2.5 million in the prior year period.
  • Adjusted operating income of $38.8 million compared to $16.9 million in the prior year period.
  • Net loss of $10.8 million primarily driven by the United Kingdom fruit business impairment of $32.5 million compared to $5.0 million in the prior year period.
  • Adjusted net income of $27.4 million compared to $8.4 million in prior year period.
  • Adjusted EBITDA of $54.9 million compared to $32.1 million in the prior year period.
  • Adjusted EBITDA margin of 11.0%, a 435 basis point increase compared to the prior year period.
  • Loss per diluted share of $0.11 compared to $0.05 in the prior year period.
  • Adjusted earnings per diluted share ("EPS") of $0.27 compared to $0.08 in the prior year period.
  • Repurchased 1.3 million shares, or 1.3% of the outstanding common stock, at an average price of $32.81 per share.
  • Net cash provided by continuing operations of $40.7 million compared to net cash used in continuing operations of $3.6 million in prior year period.
  • Operating free cash flow from continuing operations of $28.5 million compared to negative operating free cash flow of $16.7 million in prior year period.

 





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 and other non-GAAP financial calculations are provided herein in the tables.

2 Unless otherwise noted all results included in this press release are from continuing operations.

SEGMENT HIGHLIGHTS FROM CONTINUING OPERATIONS

The Company operates under two reportable segments: North America and International.

North America
North America net sales in the first quarter were $280.7 million, an increase of 3% compared to the prior year period. When adjusted for foreign exchange, divestitures and discontinued brands, net sales increased 10% from the prior year period.

Segment gross profit in the first quarter was $75.0 million, a 20% increase from the prior year period. Adjusted gross profit was $75.9 million, an increase of 19% from the prior year period. Gross margin was 26.7%, a 378 basis point increase from the prior year period and adjusted gross margin was 27.1%, a 347 basis point increase from the prior year period.

Segment operating income in the first quarter was $33.3 million, a 120% increase from the prior year period. Adjusted operating income was $34.7 million, an 83% increase from the prior year period.

Adjusted EBITDA in the first quarter was $39.1 million, a 63% increase from the prior year period. As a percentage of sales on a constant currency basis, North America adjusted EBITDA margin was 13.9%, a 510 basis point increase from the prior year period.

International
International net sales in the first quarter were $218.0 million, an increase of 4% compared to the prior year period. When adjusted for foreign exchange, divestitures and discontinued brands, net sales decreased 1% compared to the prior year period.

Segment gross profit in the first quarter was $44.1 million, a 25% increase from the prior year period. Adjusted gross profit was $44.4 million, an increase of 22% from the prior year period. Gross margin was 20.3%, a 340 basis point increase from the prior year period and adjusted gross margin was 20.4%, a 299 basis point increase from the prior year period.

Segment operating loss in the first quarter was $15.9 million, compared to operating income of $9.1 million in the prior year period. The operating loss for the current period includes an impairment charge of $32.5 million related to the reserve recorded against the assets of the Company's United Kingdom fruit business resulting from held for sale classification. Adjusted operating income was $17.3 million, an increase of 51% from the prior year period.

Adjusted EBITDA in the first quarter was $26.7 million, a 35% increase from the prior year period. As a percentage of sales on a constant currency basis, International adjusted EBITDA margin was 12.2%, a 280 basis point increase from the prior year period.

CAPITAL MANAGEMENT

During the first quarter fiscal year 2021, the Company repurchased 1.3 million shares, or 1.3% of the outstanding common stock, at an average price of $32.81 per share for a total of $42.0 million, excluding commissions. As of September 30, 2020, the Company had $147.8 million remaining authorization under its share repurchase program.

FISCAL YEAR 2021 GUIDANCE

The Company reaffirms its expectation for gross and adjusted EBITDA margin expansion as well as strong double-digit adjusted EBITDA and operating free cash flow growth for fiscal year 2021. Due to the continuing uncertainty around the duration and impact of the COVID-19 pandemic, the Company is not providing specific financial guidance for fiscal year 2021. However, for second quarter fiscal year 2021, the Company expects mid-single digit topline growth (on a constant currency basis adjusted for divestitures and discontinued brands) with several hundred basis points of gross margin improvement and adjusted EBITDA growth similar to the growth in the second half of prior year.

Webcast Presentation
Hain Celestial will host a conference call and webcast tomorrow 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 Celestial Seasonings®, Clarks™, Cully & Sully®, Dream®, Earth's Best®, Ella's Kitchen®, Farmhouse Fare™, Frank Cooper's®, GG UniqueFiber®, Gale's®, Garden of Eatin'®, Hain Pure Foods®, Hartley's®, Health Valley®, Imagine®, Joya®, Lima®, Linda McCartney® (under license), MaraNatha®, Natumi®, New Covent Garden Soup Co.®, Orchard House®, Robertson's®, Sensible Portions®, Spectrum®, Sun-Pat®, Sunripe®, Terra®, The Greek Gods®, William's™, Yorkshire Provender® and Yves Veggie Cuisine®. The Company's personal care products are marketed under the Alba Botanica®, Avalon Organics®, Earth's Best®, JASON®, Live Clean®, One Step® 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 productivity and transformation, the Company's guidance for fiscal year 2021 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, challenges and uncertainty resulting from the COVID-19 pandemic, the impact of competitive products and changes to the competitive environment, changes to consumer preferences, general economic and financial market conditions, the United Kingdom's exit from the European Union, consolidation of customers or the loss of a significant customer, reliance on independent distributors, 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 implement cost reduction initiatives, the impact of our debt covenants, the potential discontinuation of LIBOR, 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 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, 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 reflect changes in underlying assumptions or factors or new methods, future events or other changes.

Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures, including adjusted operating income and its related margin, adjusted gross margin, adjusted net income, adjusted earnings per diluted share, net sales adjusted for the impact of foreign exchange, divestitures and discontinued brands, adjusted EBITDA and its related margin and operating free cash flow. The reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are provided herein in the tables. 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 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 the impact of foreign currency, divestitures and discontinued brands 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 adjusted EBITDA as net income (loss) before income taxes, net interest expense, depreciation and amortization, equity in net loss of equity-method investees, stock-based compensation, net, impairment of long-lived assets, unrealized currency gains and losses, productivity and transformation costs, proceeds from an insurance claim, gains on sales of businesses, warehouse and manufacturing consolidation and other costs, plant closure related costs, SKU rationalization and inventory write-downs, litigation and related expenses and other adjustments. 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.

The Company defines operating free cash flow as cash provided by or used in operating activities from continuing operations (a GAAP measure) less purchases of property, plant and equipment. 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.

THE HAIN CELESTIAL GROUP, INC.

Consolidated Balance Sheets

 (unaudited and in thousands) 










September 30, 2020


June 30, 2020

ASSETS




Current assets:





Cash and cash equivalents

$                   27,523


$        37,771


Accounts receivable, net

166,086


170,969


Inventories

292,968


248,170


Prepaid expenses and other current assets

55,151


95,690


Assets held for sale

71,023


8,334


Total current assets

612,751


560,934

Property, plant and equipment, net

275,708


289,256

Goodwill


860,347


861,958

Trademarks and other intangible assets, net

319,760


346,462

Investments and joint ventures

17,899


17,439

Operating lease right-of-use assets

89,397


88,165

Other assets

23,872


24,238


Total assets 

$              2,199,734


$    2,188,452

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:





Accounts payable

$                 184,997


$       171,009


Accrued expenses and other current liabilities

117,352


124,045


Current portion of long-term debt

445


1,656


Liabilities related to assets held for sale

26,209


3,567


Total current liabilities

329,003


300,277

Long-term debt, less current portion

289,042


281,118

Deferred income taxes 

30,985


51,849

Operating lease liabilities, noncurrent portion

82,962


82,962

Other noncurrent liabilities

31,161


28,692


Total liabilities

763,153


744,898


Total stockholders' equity

1,436,581


1,443,554


Total liabilities and stockholders' equity

$              2,199,734


$    2,188,452

 

THE HAIN CELESTIAL GROUP, INC.

 Consolidated Statements of Operations 

 (unaudited and in thousands, except per share amounts) 






First Quarter


2021


2020





Net sales

$ 498,627


$  482,076

Cost of sales

379,463


384,245

Gross profit

119,164


97,831

Selling, general and administrative expenses

79,152


80,680

Amortization of acquired intangible assets

2,433


3,083

Productivity and transformation costs

1,802


14,175

Proceeds from insurance claim

-


(2,562)

Long-lived asset impairment

32,497


-

Operating income

3,280


2,455

Interest and other financing expense, net

2,453


6,294

Other (income) expense, net

(1,373)


1,328

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

2,200


(5,167)

Provision (benefit) for income taxes

12,962


(531)

Equity in net loss of equity-method investees

19


317

   Net loss from continuing operations

$ (10,781)


$     (4,953)

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

11,266


(102,068)

Net income (loss)

$        485


$ (107,021)





Net (loss) income per common share: 




Basic net loss per common share from continuing operations

$     (0.11)


$       (0.05)

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

0.11


(0.98)

   Basic net loss per common share

$             -


$       (1.03)





Diluted net loss per common share from continuing operations

$     (0.11)


$       (0.05)

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

0.11


(0.98)

   Diluted net loss per common share

$             -


$       (1.03)





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




Basic

101,558


104,225

Diluted

101,558


104,225

 

THE HAIN CELESTIAL GROUP, INC.

 Consolidated Statements of Cash Flows  

(unaudited and in thousands)






First Quarter


2021


2020

CASH FLOWS FROM OPERATING ACTIVITIES




Net income (loss)

$     485


$ (107,021)

   Net income (loss) from discontinued operations

11,266


(102,068)

   Net loss from continuing operations

(10,781)


(4,953)

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




Depreciation and amortization

13,761


13,923

Deferred income taxes

(930)


(4,404)

Equity in net loss of equity-method investees

19


317

Stock-based compensation, net

4,367


2,737

Long-lived asset impairment

32,497


-

Other non-cash items, net

(1,667)


1,764

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



Accounts receivable

(3,575)


(853)

Inventories

(44,962)


(5,507)

Other current assets

37,869


14,223

Other assets and liabilities

(1,541)


144

Accounts payable and accrued expenses

15,612


(20,972)

Net cash provided by (used in) operating activities from continuing operations

40,669


(3,581)

CASH FLOWS FROM INVESTING ACTIVITIES




Purchases of property, plant and equipment

(12,155)


(13,164)

Proceeds from sale of businesses and other

4,427


-

Net cash used in investing activities from continuing operations

(7,728)


(13,164)

CASH FLOWS FROM FINANCING ACTIVITIES




Borrowings under bank revolving credit facility

55,000


80,000

Repayments under bank revolving credit facility

(47,000)


(178,500)

Repayments under term loan

-


(206,250)

Proceeds from discontinued operations entities

-


312,195

(Repayments) borrowings of other debt, net

(1,439)


9

Share repurchases

(42,052)


-

Shares withheld for payment of employee payroll taxes

(468)


(312)

Net cash (used in) provided by financing activities from continuing operations

(35,959)


7,142

Effect of exchange rate changes on cash from continuing operations

2,500


(892)

CASH FLOWS FROM DISCONTINUED OPERATIONS




Cash used in operating activities

-


(8,026)

Cash provided by investing activities

-


306,420

Cash used in financing activities

-


(306,366)

Effect of exchange rate changes on cash from discontinued operations

-


(537)

Net cash flows used in discontinued operations

-


(8,509)

Net decrease in cash and cash equivalents

(518)


(19,004)

Cash and cash equivalents at beginning of period

37,771


39,526

Cash and cash equivalents at end of period

$ 37,253


$    20,522


To reconcile cash and cash equivalents on the Consolidated Balance Sheets to cash and cash equivalents at end of period on the Consolidated Statements of Cash Flows:


Cash and cash equivalents 

$ 27,523


$    20,522

Cash and cash equivalents classified in assets held for sale

9,730


-

Total cash and cash equivalents shown in the Statement of Cash Flows

$ 37,253


$    20,522


 

THE HAIN CELESTIAL GROUP, INC.

Net Sales, Gross Profit and Operating Income (Loss) by Segment

 (unaudited and in thousands) 










North America


International


Corporate/Other


Hain Consolidated

Net Sales








Net sales - Q1 FY21

$         280,668


$           217,959


$                      -


$               498,627

Net sales - Q1 FY20

$         271,701


$           210,375


$                      -


$               482,076

% change - FY'21 net sales vs. FY'20 net sales

3.3%


3.6%




3.4%









Gross Profit








Q1 FY21








Gross profit

$          75,015


$             44,149


$                      -


$               119,164

Non-GAAP adjustments (1)

933


240


-


1,173

Adjusted gross profit

$          75,948


$             44,389


$                      -


$               120,337

Gross margin

26.7%


20.3%




23.9%

Adjusted gross margin

27.1%


20.4%




24.1%









Q1 FY20








Gross profit

$          62,361


$             35,470


$                      -


$                 97,831

Non-GAAP adjustments (1)

1,725


1,076


-


2,801

Adjusted gross profit

$          64,086


$             36,546


$                      -


$               100,632

Gross margin

23.0%


16.9%




20.3%

Adjusted gross margin

23.6%


17.4%




20.9%









Operating income (loss)








Q1 FY21








Operating income (loss)

$          33,256


$            (15,889)


$             (14,087)


$                  3,280

Non-GAAP adjustments (1)

1,488


33,194


805


35,487

Adjusted operating income (loss)

$          34,744


$             17,305


$             (13,282)


$                 38,767

Operating income (loss) margin

11.8%


(7.3)%




0.7%

Adjusted operating income margin

12.4%


7.9%




7.8%









Q1 FY20








Operating income (loss)

$          15,132


$               9,107


$             (21,784)


$                  2,455

Non-GAAP adjustments (1)

3,896


2,344


8,222


14,462

Adjusted operating income (loss)

$          19,028


$             11,451


$             (13,562)


$                 16,917

Operating income margin

5.6%


4.3%




0.5%

Adjusted operating income margin

7.0%


5.4%




3.5%


(1) See accompanying table "Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Income and Adjusted EPS"

 

THE HAIN CELESTIAL GROUP, INC.

 Adjusted Gross Profit, Adjusted Operating Income, Adjusted Net Income and Adjusted EPS 

 (unaudited and in thousands, except per share amounts) 










First Quarter


2021 GAAP

Adjustments

2021 Adjusted


2020 GAAP

Adjustments

2020 Adjusted









Net sales

$  498,627

$               -

$        498,627


$  482,076

$               -

$        482,076

Cost of sales

379,463

(1,173)

378,290


384,245

(2,801)

381,444

Gross profit

119,164

1,173

120,337


97,831

2,801

100,632

Operating expenses (a) 

114,082

(32,512)

81,570


83,763

(48)

83,715

Productivity and transformation costs

1,802

(1,802)

-


14,175

(14,175)

-

Proceeds from insurance claims

-

-

-


(2,562)

2,562

-

Operating income

3,280

35,487

38,767


2,455

14,462

16,917

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

1,080

1,822

2,902


7,622

(2,659)

4,963

Provision (benefit) provision for income taxes

12,962

(4,562)

8,400


(531)

3,800

3,269

   Net (loss) income from continuing operations

(10,781)

38,227

27,446


(4,953)

13,321

8,368

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

11,266

(11,266)

-


(102,068)

102,068

-

Net income (loss) 

485

26,961

27,446


(107,021)

115,389

8,368









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

(0.11)

0.38

0.27


(0.05)

0.13

0.08

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

0.11

(0.11)

-


(0.98)

0.98

-

   Diluted net (loss) income per common share

-

0.27

0.27


(1.03)

1.11

0.08









Detail of Adjustments:










Q1 FY21




Q1 FY20


Plant closure related costs


$             579




$             933


SKU rationalization and inventory write-down


204




(11)


Warehouse/manufacturing consolidation and other costs


390




1,879


Cost of sales


1,173




2,801










Gross profit


1,173




2,801










Long-lived asset impairment 


32,497




-


Plant closure related costs


15




-


Litigation and related expenses


-




48


Operating expenses (a) 


32,512




48










Productivity and transformation costs


1,802




14,175


Productivity and transformation costs


1,802




14,175










Proceeds from insurance claims


-




(2,562)


Proceeds from insurance claims


-




(2,562)










Operating income


35,487




14,462










Unrealized currency (gains) losses 


(1,202)




1,684


Gain on sale of businesses


(620)




-


Deferred financing cost write-off


-




975


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


(1,822)




2,659










Income tax related adjustments


4,562




(3,800)


Provision (benefit) provision for income taxes


4,562




(3,800)










   Net income from continuing operations


$        38,227




$        13,321



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

(b)Interest and other expense (income), net includes interest and other financing expenses, net and other expense, net.

 

THE HAIN CELESTIAL GROUP, INC.

Adjusted Net Sales Growth

(unaudited and in thousands)







Q1 FY21

North America


International


Hain Consolidated

 Net sales - Q1 FY21 

$         280,668


$     217,959


$               498,627

 Divestitures and discontinued brands 

(3,379)


(908)


(4,287)

 Impact of foreign currency exchange 

363


(9,886)


(9,523)

 Net sales on a constant currency basis adjusted for divestitures and discontinued brands - Q1 FY21 

$         277,652


$     207,165


$               484,817







Q1 FY20






 Net sales Q1 FY20 

$         271,701


$     210,375


$               482,076

 Divestitures and discontinued brands 

(19,709)


(1,612)


(21,321)

 Net sales adjusted for divestitures and discontinued brands - Q1 FY20 

$         251,992


$     208,763


$               460,755







 Net sales growth 

3.3%


3.6%


3.4%

 Impact of foreign currency exchange 

0.1%


(4.7)%


(2.0)%

 Impact of divestitures and discontinued brands 

6.6%


0.3%


3.8%

 Net sales growth/(decline) on a constant currency basis adjusted for divestitures and discontinued brands  

10.1%


(0.8)%


5.2%

 

THE HAIN CELESTIAL GROUP, INC.

 Adjusted EBITDA 

 (unaudited and in thousands) 






First Quarter


2021


2020





Net income (loss)

$       485


$ (107,021)

Net income (loss) from discontinued operations

11,266


(102,068)

Net loss from continuing operations

$ (10,781)


$     (4,953)





Provision (benefit) for income taxes

12,962


(531)

Interest expense, net

2,154


4,552

Depreciation and amortization

13,761


13,923

Equity in net loss of equity-method investees

19


317

Stock-based compensation, net

4,367


2,737

Long-lived asset impairment

32,497


-

Unrealized currency (gains) losses 

(1,202)


1,684

Productivity and transformation costs

1,150


14,175

Proceeds from insurance claim

-


(2,562)

Gain on sale of businesses

(620)


-

Warehouse/manufacturing consolidation and other costs

390


1,879

Plant closure related costs

(6)


832

SKU rationalization and inventory write-down

204


(11)

Litigation and related expenses

-


48

Adjusted EBITDA

$  54,895


$    32,090

 

THE HAIN CELESTIAL GROUP, INC.

Adjusted EBITDA by Segment

(unaudited and in thousands)










North America


International


Corporate/Other


Hain Consolidated

Q1 FY21








Operating income (loss)

$          33,256


$      (15,889)


$               (14,087)


$                  3,280

Depreciation and amortization

4,145


8,862


754


13,761

Long-lived asset impairment

(11)


32,508


-


32,497

Productivity and transformation costs

554


445


803


1,802

Loss (gain) on sale of businesses

189


(1,344)


535


(620)

Warehouse/manufacturing consolidation and other costs

200


190


-


390

Plant closure related costs

(57)


51


-


(6)

SKU rationalization and inventory write-down

204


-


-


204

Other

642


1,881


1,064


3,587

Adjusted EBITDA

$          39,122


$       26,704


$               (10,931)


$                 54,895


















North America


International


Corporate/Other


Hain Consolidated

Q1 FY20








Operating income (loss)

$          15,132


$         9,107


$               (21,784)


$                  2,455

Depreciation and amortization

4,348


7,926


1,649


13,923

Productivity and transformation costs

2,168


1,272


10,735


14,175

Proceeds from insurance claim

-


-


(2,562)


(2,562)

Warehouse/manufacturing consolidation and other costs

1,879


-


-


1,879

Plant closure related costs

37


795


-


832

SKU rationalization and inventory write-down

(190)


179


-


(11)

Litigation and related expenses

-


-


48


48

Other

665


432


254


1,351

Adjusted EBITDA

$          24,039


$       19,711


$               (11,660)


$                 32,090

 

THE HAIN CELESTIAL GROUP, INC.

Adjusted EBITDA Margin at Constant Currency by Segment

(unaudited and in thousands)









Q1 FY21

North America


International


Corporate/Other


Hain Consolidated

 Adjusted EBITDA - Q1 FY21 

$           39,122


$         26,704


$               (10,931)


$                      54,895

 Impact of foreign currency exchange 

61


(1,281)


-


(1,220)

 Adjusted EBITDA on a constant currency basis - Q1 FY21 

$           39,183


$         25,423


$               (10,931)


$                      53,675









 Net sales on a constant currency basis - Q1 FY21 

$         281,031


$       208,073




$                    489,104

 Adjusted EBITDA margin on a constant currency basis 

13.9%


12.2%




11.0%

 

THE HAIN CELESTIAL GROUP, INC.

 Operating Free Cash Flow 

(unaudited and in thousands)






First Quarter


2021


2020





Net cash provided by (used in) operating activities from continuing operations

$ 40,669


$   (3,581)

Purchases of property, plant and equipment

(12,155)


(13,164)

Operating free cash flow from continuing operations (1)

$ 28,514


$ (16,745)


(1) The increase in operating free cash flow resulted primarily from an improvement in net income adjusted for non-cash charges in the current period and greater cash generation from our working capital accounts.

 

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SOURCE The Hain Celestial Group, Inc.

Chris Mandeville and Anna Kate Heller, ICR, 203-682-8304