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Hain Celestial Reports Fourth Quarter and Fiscal Year 2021 Financial Results
Fourth Quarter Net Income Improved by $37 million from $4 million in the Prior Year
Fourth Quarter GAAP EPS of $0.40; Adjusted EPS of $0.39
Fourth Quarter Adjusted EBITDA Growth of 10%
Announces Incremental $300 Million Share Repurchase Authorization
Provides Fiscal Year 2022 Guidance

LAKE SUCCESS, N.Y., Aug. 26, 2021 /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 fourth quarter and fiscal year ended June 30, 2021.

Mark L. Schiller, Hain Celestial's President and Chief Executive Officer, commented, "We are very proud of our solid fourth quarter and full fiscal year 2021 results. In spite of the many challenges our industry faced this past year, we continued to successfully execute against our transformation plan, delivering robust full year margin expansion and strong adjusted EBITDA growth. Heading into 2022, we expect another strong year with adjusted net sales growth, margin expansion and adjusted EBITDA growth even in this challenging environment of high inflation and labor shortages."

FINANCIAL HIGHLIGHTS*

Summary of Fourth Quarter Results from Continuing Operations

  • Net sales decreased 12% to $450.7 million, or 17% on a constant currency basis, compared to the prior year period.
  • When adjusted for foreign exchange, divestitures and discontinued brands, net sales decreased 8% compared to the prior year period.
  • Gross margin of 25.0%, a 41 basis point decrease from the prior year period.
  • Adjusted gross margin of 25.7%, a 49 basis point increase from the prior year period.
  • Operating income of $41.6 million compared $25.3 million in the prior year period.
  • Adjusted operating income of $53.0 million compared to $47.9 million in the prior year period.
  • Net income of $40.5 million compared to $3.7 million in the prior year period.
  • Adjusted net income of $39.7 million compared to $32.3 million in prior year period.
  • Adjusted EBITDA of $68.1 million compared to $62.2 million in the prior year period.
  • Adjusted EBITDA margin of 15.1%, a 296 basis point increase compared to the prior year period.
  • Earnings per diluted share ("EPS") of $0.40 compared to $0.04 in the prior year period.
  • Adjusted EPS of $0.39 compared to $0.32 in the prior year period.
  • Repurchased 0.7 million shares, or 0.7% of the outstanding common stock, at an average price of $40.41 per share.

Summary of Fiscal Year 2021 Results from Continuing Operations

  • Net sales decreased 4% to $1,970.3 million, or 7% on a constant currency basis, compared to the prior year.
  • When adjusted for foreign exchange, divestitures and discontinued brands, net sales decreased 1% compared to the prior year.
  • Gross margin of 25.0%, a 227 basis point increase over the prior year.
  • Adjusted gross margin of 25.6%, a 249 basis point increase over the prior year.
  • Operating income of $107.4 million compared to $56.0 million in the prior year.
  • Adjusted operating income of $199.5 million compared to $140.0 million in the prior year.
  • Net income of $66.1 million compared to $25.6 million in the prior year.
  • Adjusted net income of $146.5 million compared to $87.1 million in the prior year.
  • Adjusted EBITDA of $258.9 million compared to $200.0 million in the prior year.
  • Adjusted EBITDA margin of 13.1%, a 340 basis point increase compared to the prior year.
  • EPS of $0.65 compared to $0.25 in the prior year.
  • Adjusted EPS of $1.45 compared to $0.84 in the prior year.
  • Repurchased 3.1 million shares, or 3.0% of the outstanding common stock, at an average price of $34.87 per share.

SEGMENT HIGHLIGHTS FROM CONTINUING OPERATIONS

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

North America
North America net sales in the fourth quarter were $253.3 million, a decrease of 15% compared to the prior year period. When adjusted for foreign exchange, divestitures and discontinued brands, net sales decreased 12% from the prior year period.

Segment gross profit in the fourth quarter was $59.6 million, a 29% decrease from the prior year period. Adjusted gross profit was $62.4 million, a decrease of 25% from the prior year period. Gross margin was 23.5%, a 446 basis point decrease from the prior year period, and adjusted gross margin was 24.6%, a 313 basis point decrease from the prior year period.

Segment operating income in the fourth quarter was $23.8 million, a 25% decrease from the prior year period. Adjusted operating income was $29.6 million, a 24% decrease from the prior year period.

Adjusted EBITDA in the fourth quarter was $34.8 million, a 20% decrease from the prior year period. As a percentage of sales, North America adjusted EBITDA margin was 13.7%, a 92 basis point decrease from the prior year period.

North America net sales in fiscal year 2021 were $1,104.1 million, a decrease of 6% compared to the prior year. When adjusted for foreign exchange, divestitures and discontinued brands, net sales decreased 2% from the prior year. On an adjusted basis, the decrease was primarily driven by pantry stocking in the prior year as a result of stay-at-home orders at the beginning of the COVID-19 pandemic and a large program with a wholesale club which was not repeated in the current year.

Segment gross profit in fiscal year 2021 was $291.4 million, a 1% decrease from the prior year. Adjusted gross profit was $300.6 million, relatively flat compared to the prior year. Gross margin was 26.4%, a 134 basis point increase from the prior year and adjusted gross margin was 27.2%, a 155 basis point increase from the prior year.

Segment operating income in fiscal year 2021 was $129.0 million, a 34% increase from the prior year. Adjusted operating income was $143.7 million, a 19% increase from the prior year.

Adjusted EBITDA in fiscal year 2021 was $162.0 million, a 15% increase from the prior year. As a percentage of sales, North America adjusted EBITDA margin was 14.7%, a 265 basis point increase from the prior year.

International
International net sales in the fourth quarter were $197.3 million, a decrease of 7% 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 fourth quarter was $53.0 million, a 14% increase from the prior year period. Adjusted gross profit was $53.6 million, an increase of 16% from the prior year period. Gross margin was 26.8%, a 509 basis point increase from the prior year period, and adjusted gross margin was 27.2%, a 543 basis point increase from the prior year period.

Segment operating income in the fourth quarter was $29.9 million, a 104% increase from the prior year period. Adjusted operating income was $31.3 million, an increase of 38% from the prior year period.

Adjusted EBITDA in the fourth quarter was $38.3 million, a 28% increase from the prior year period. As a percentage of sales, International adjusted EBITDA margin was 19.4%, a 536 basis point increase from the prior year period.

International net sales in fiscal year 2021 were $866.2 million, a decrease of 2% when compared to the prior year. When adjusted for foreign exchange, divestitures and discontinued brands, net sales increased 1% compared to the prior year. On an adjusted basis, the increase was mainly due to sustained demand from the prior year with additional growth in the current year from our plant-based food and beverage products.

Segment gross profit in fiscal year 2021 was $200.2 million, a 16% increase from the prior year. Adjusted gross profit was $204.7 million, an increase of 17% from the prior year. Gross margin was 23.1%, a 359 basis point increase from the prior year and adjusted gross margin was 23.6%, a 382 basis point increase from the prior year.

Segment operating income in fiscal year 2021 was $38.0 million, a 31% decrease from the prior year. Adjusted operating income was $103.3 million, an increase of 40% from the prior year.

Adjusted EBITDA in fiscal year 2021 was $133.9 million, a 27% increase from the prior year. As a percentage of sales, International adjusted EBITDA margin was 15.5%, a 348 basis point increase from the prior year.

CAPITAL MANAGEMENT

The Company is announcing today that its Board of Directors has approved an additional $300 million share repurchase authorization. Share repurchases under this 2021 authorization will commence after the Company's existing 2017 authorization is fully utilized. As of June 30, 2021, the Company had $82.4 million remaining under the 2017 authorization. The extent to which the Company repurchases its shares and the timing of such repurchases will be at the Company's discretion and will depend upon market conditions and other corporate considerations. Repurchases may be made from time to time in the open market, pursuant to pre-set trading plans, in private transactions or otherwise.

During the fourth quarter of fiscal year 2021, the Company repurchased 0.7 million shares, or 0.7% of the outstanding common stock, at an average price of $40.41 per share for a total of $27.2 million, excluding commissions, under its 2017 share repurchase authorization.

During fiscal year 2021, the Company repurchased 3.1 million shares, or 3.0% of the outstanding common stock, at an average price of $34.87 per share for a total of $107.4 million, excluding commissions, under its 2017 share repurchase authorization.

FISCAL YEAR 2022 GUIDANCE

For fiscal year 2022, compared to fiscal year 2021, the Company expects:

  • Low single digit adjusted net sales growth,
  • Adjusted gross margin expansion, and
  • Mid to high single digit adjusted EBITDA growth.

Relative to fiscal 2019, the most recent pre-pandemic period, the Company expects full year adjusted net sales growth of high single digits with adjusted EBITDA and EBITDA margin growth of at least 65% and 500 bps, respectively.

Given the elevated demand during the first half of fiscal year 2021 from the COVID-19 pandemic and the timing of the price increase, among other factors, the Company expects:

  • Net sales to be down low to mid single digits on an adjusted basis in the first half of fiscal year 2022 and up by mid to high single digits in the second half, and
  • Adjusted EBITDA to be close to flat in the first half of fiscal year 2022 and up high single digits to low double digits in the second half.

In addition, for the first quarter of fiscal year 2022, the Company expects:

  • Net sales to be down low to mid single digits on an adjusted basis but down low double digits on a reported basis, compared to the first quarter of fiscal year 2021,
  • Net sales to be up by mid to high single digits on an adjusted basis compared to the first quarter of fiscal year 2020, the most recent pre-pandemic period,
  • Adjusted gross margin expansion, compared to the first quarter of fiscal year 2021, and
  • A mid to high teens adjusted EBITDA decrease compared to the first quarter of fiscal year 2021, given the overlap of 70% adjusted EBITDA growth in the first quarter of fiscal year 2021 versus prior year, lower sales due to divestitures, a highly inflationary environment and the timing of the Company's pricing actions.

Notes: Adjusted net sales is defined as adjusted for the impact of foreign currency changes, divestitures and discontinued brands. All references in this "Fiscal Year 2022 Guidance" section to growth or declines in adjusted net sales or adjusted EBITDA compared to a prior period represent percentage growth or percentage decline.

Webcast Presentation
Hain Celestial will host a conference call and webcast today at 8:30 AM Eastern Time to discuss its results and business outlook. The call will be webcast and the accompanying presentation will be available under the Investor Relations section of the Company's website at www.hain.com.

About The Hain Celestial Group, Inc.
The Hain Celestial Group (Nasdaq: HAIN), headquartered in Lake Success, NY, is a leading organic and natural products company with operations in North America, Europe, Asia and the Middle East. Hain Celestial participates in many natural categories with well-known brands that include Celestial Seasonings®, Clarks™, Cully & Sully®, Earth's Best®, Ella's Kitchen®, Frank Cooper's®, Gale's®, Garden of Eatin'®, Hain Pure Foods®, Hartley's®, Health Valley®, Imagine®, Joya®, Lima®, Linda McCartney's® (under license), MaraNatha®, Natumi®, New Covent Garden Soup Co.®, Robertson's®, Rose's® (under license), Sensible Portions®, Spectrum®, Sun-Pat®, Terra®, The Greek Gods®, Yorkshire Provender® and Yves Veggie Cuisine®. The Company's personal care products are marketed under the Alba Botanica®, Avalon Organics®, JASON®, Live Clean® and Queen Helene® brands.

Safe Harbor Statement
Certain statements contained in this press release constitute "forward-looking statements" within the meaning of federal securities laws, including the Private Securities Litigation Reform Act of 1995. Forward-looking statements are predictions based on expectations and projections about future events and are not statements of historical fact. You can identify forward-looking statements by the use of forward-looking terminology such as "plan," "continue," "expect," "anticipate," "intend," "predict," "project," "estimate," "likely," "believe," "might," "seek," "may," "will," "remain," "potential," "can," "should," "could," "future" and similar expressions, or the negative of those expressions, or similar words or phrases that are predictions of or indicate future events or trends and that do not relate solely to historical matters. You can also identify forward-looking statements by discussions of the Company's strategic initiatives, including productivity and transformation, the Company's guidance for fiscal year 2022 and our future performance and results of operations.

Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, levels of activity, performance or achievements of the Company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements, and you should not rely on them as predictions of future events. Forward-looking statements depend on assumptions, data or methods that may be incorrect or imprecise and may not be able to be realized. We do not guarantee that the transactions and events described will happen as described (or that they will happen at all). Such factors include, among others, the impact of competition; challenges and uncertainty resulting from the COVID-19 pandemic; our ability to manage our supply chain effectively; disruption of operations at our manufacturing facilities; reliance on independent contract manufacturers; changes to consumer preferences; customer concentration; reliance on independent distributors; the availability of organic ingredients; risks associated with our international sales and operations; risks associated with outsourcing arrangements; our ability to execute our cost reduction initiatives and related strategic initiatives; our reliance on independent certification for a number of our products; the reputation of our Company and our brands; our ability to use and protect trademarks; general economic conditions; input cost inflation; the United Kingdom's exit from the European Union; cybersecurity incidents; disruptions to information technology systems; the impact of climate change; liabilities, claims or regulatory change with respect to environmental matters; potential liability if our products cause illness or physical harm; the highly regulated environment in which we operate; pending and future litigation; compliance with data privacy laws; compliance with our credit agreement; the discontinuation of LIBOR; concentration in the ownership of our common stock; our ability to issue preferred stock; the adequacy of our insurance coverage; impairments in the carrying value of goodwill or other intangible assets;  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 and Cash Flows presented in accordance with GAAP.

Certain forward-looking non-GAAP financial measures included in this press release are not reconciled to the comparable forward-looking GAAP financial measures. The Company is not able to reconcile these forward-looking non-GAAP financial measures to their most directly comparable forward-looking GAAP financial measures without unreasonable efforts because the Company is unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact GAAP measures but would not impact the non-GAAP measures. Such items may include litigation and related expenses, productivity and transformation costs, impairments, gains or losses on sales of assets and businesses, foreign exchange movements and other items. The unavailable information could have a significant impact on the Company's GAAP financial results.

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, unrealized currency gains and losses, productivity and transformation costs, proceeds from an insurance claim, impairment of long-lived assets and intangibles, warehouse and manufacturing consolidation and other costs, gains or losses on sales of assets and businesses, litigation and related expenses, plant closure related costs, SKU rationalization and inventory write-downs 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.

* Notes:

(1)

The results contained in this press release are presented with the Hain Pure Protein and Tilda operating segments being treated as discontinued operations. Unless otherwise noted, all results included in this press release are from continuing operations.

(2)

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 in the tables included in this press release.

 

THE HAIN CELESTIAL GROUP, INC.

Consolidated Balance Sheets

 (unaudited and in thousands) 








June 30, 2021


June 30, 2020

ASSETS




Current assets:





Cash and cash equivalents

$        75,871


$        37,771


Accounts receivable, net

174,066


170,969


Inventories

285,410


248,170


Prepaid expenses and other current assets

39,834


95,690


Assets held for sale

1,874


8,334


Total current assets

577,055


560,934

Property, plant and equipment, net

312,777


289,256

Goodwill

871,067


861,958

Trademarks and other intangible assets, net

314,895


346,462

Investments and joint ventures

16,917


17,439

Operating lease right-of-use assets

92,010


88,165

Other assets

21,187


24,238


Total assets 

$    2,205,908


$    2,188,452

LIABILITIES AND STOCKHOLDERS' EQUITY




Current liabilities:





Accounts payable

$       171,947


$       171,009


Accrued expenses and other current liabilities

117,957


124,045


Current portion of long-term debt

530


1,656


Liabilities related to assets held for sale

-


3,567


Total current liabilities

290,434


300,277

Long-term debt, less current portion

230,492


281,118

Deferred income taxes 

42,639


51,849

Operating lease liabilities, noncurrent portion

85,929


82,962

Other noncurrent liabilities

33,531


28,692


Total liabilities

683,025


744,898


Total stockholders' equity

1,522,883


1,443,554


Total liabilities and stockholders' equity

$    2,205,908


$    2,188,452

 

THE HAIN CELESTIAL GROUP, INC.

 Consolidated Statements of Operations 

 (unaudited and in thousands, except per share amounts) 










Fourth Quarter


Fourth Quarter Year to Date


2021


2020


2021


2020









Net sales

$ 450,653


$ 511,746


$ 1,970,302


$ 2,053,903

Cost of sales

338,073


381,809


1,478,687


1,588,133

Gross profit

112,580


129,937


491,615


465,770

Selling, general and administrative expenses

62,082


79,171


299,077


324,376

Amortization of acquired intangible assets

2,160


2,192


8,931


11,638

Productivity and transformation costs

6,528


10,840


18,899


48,789

Proceeds from insurance claim

-


-


(592)


(2,962)

Goodwill impairment

-


394


-


394

Long-lived asset and intangibles impairment

244


12,079


57,920


27,493

Operating income

41,566


25,261


107,380


56,042

Interest and other financing expense, net

1,834


3,190


8,654


18,258

Other (income) expense, net

(9,215)


1,644


(10,067)


3,956

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

48,947


20,427


108,793


33,828

Provision for income taxes

7,896


15,958


41,093


6,205

Equity in net loss of equity-method investees

566


770


1,591


1,989

   Net income from continuing operations

$  40,485


$    3,699


$     66,109


$     25,634

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

-


(460)


11,255


(106,041)

Net income (loss)

$  40,485


$    3,239


$     77,364


$    (80,407)









Net income (loss) per common share: 








Basic net income per common share from continuing operations

$      0.41


$      0.04


$         0.66


$         0.25

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

-


-


0.11


(1.02)

Basic net income (loss) per common share

$      0.41


$      0.04


$         0.77


$        (0.77)









Diluted net income per common share from continuing operations

$      0.40


$      0.04


$         0.65


$         0.25

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

-


-


0.11


(1.02)

Diluted net income (loss) per common share

$      0.40


$      0.04


$         0.76


$        (0.77)









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








Basic

99,435


101,895


100,235


103,618

Diluted

101,133


102,280


101,322


103,937

 

THE HAIN CELESTIAL GROUP, INC.

 Consolidated Statements of Cash Flows  

(unaudited and in thousands)










Fourth Quarter


Fourth Quarter Year to Date


2021


2020


2021


2020

CASH FLOWS FROM OPERATING ACTIVITIES








Net income (loss)

$ 40,485


$    3,239


$  77,364


$ (80,407)

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

-


(460)


11,255


(106,041)

Net income from continuing operations

40,485


3,699


66,109


25,634

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








Depreciation and amortization

11,801


12,019


49,569


52,088

Deferred income taxes

6,668


45,195


9,884


36,160

Equity in net loss of equity-method investees

566


770


1,591


1,989

Stock-based compensation, net

3,771


3,497


15,659


13,078

Goodwill impairment

-


394


-


394

Long-lived asset and intangibles impairment

244


12,079


57,920


27,493

Gain on sale of assets

(4,900)


-


(4,900)


-

(Gain) loss on sale of businesses

(3,897)


1,448


(2,604)


3,564

Other non-cash items, net

1,152


123


353


342

(Decrease) increase in cash attributable to changes in operating assets and liabilities:








Accounts receivable

17,831


64,726


(2,890)


33,856

Inventories

21,782


(14,044)


(38,522)


33,236

Other current assets

(1,315)


(55,639)


55,172


(45,337)

Other assets and liabilities

732


7,152


(220)


5,986

Accounts payable and accrued expenses

(44,678)


11,403


(10,362)


(31,569)

Net cash provided by operating activities from continuing operations

50,242


92,822


196,759


156,914

CASH FLOWS FROM INVESTING ACTIVITIES








Purchases of property, plant and equipment

(18,491)


(13,932)


(71,553)


(60,893)

Proceeds from sale of assets

10,395


-


10,395


-

Proceeds from sale of businesses, net and other

31,700


1,337


58,794


15,765

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

23,604


(12,595)


(2,364)


(45,128)

CASH FLOWS FROM FINANCING ACTIVITIES








Borrowings under bank revolving credit facility

35,000


65,000


241,000


262,000

Repayments under bank revolving credit facility

(60,000)


(147,169)


(291,000)


(401,669)

Repayments under term loan

-


-


-


(206,250)

Proceeds from discontinued operations entities

-


398


-


305,645

Repayments of other debt, net

(177)


(538)


(2,094)


(2,040)

Share repurchases

(25,769)


(2,815)


(106,067)


(60,221)

Shares withheld for payment of employee payroll taxes

(541)


(425)


(4,282)


(1,931)

Net cash used in financing activities from continuing operations

(51,487)


(85,549)


(162,443)


(104,466)

Effect of exchange rate changes on cash from continuing operations

498


1,544


6,148


(566)

CASH FLOWS FROM DISCONTINUED OPERATIONS








Cash provided by (used in) operating activities

-


398


-


(5,748)

Cash provided by investing activities

-


-


-


297,592

Cash used in financing activities

-


(398)


-


(299,816)

Effect of exchange rate changes on cash from discontinued operations

-


-


-


(537)

Net cash flows used in discontinued operations

-


-


-


(8,509)

Net increase (decrease) in cash and cash equivalents

22,857


(3,778)


38,100


(1,755)

Cash and cash equivalents at beginning of period

53,014


41,549


37,771


39,526

Cash and cash equivalents at end of period

$ 75,871


$  37,771


$  75,871


$  37,771

 

 

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 - Q4 FY21

$         253,348


$     197,305


$                      -


$                450,653

Net sales - Q4 FY20

$         298,644


$     213,102


$                      -


$                511,746

% change - FY21 net sales vs. FY20 net sales

(15.2)%


(7.4)%




(11.9)%









Gross Profit








Q4 FY21








Gross profit

$          59,622


$       52,958


$                      -


$                112,580

Non-GAAP adjustments (1)

2,752


686


-


3,438

Adjusted gross profit

$          62,374


$       53,644


$                      -


$                116,018

Gross margin

23.5%


26.8%




25.0%

Adjusted gross margin

24.6%


27.2%




25.7%









Q4 FY20








Gross profit

$          83,589


$       46,348


$                      -


$                129,937

Non-GAAP adjustments (1)

(728)


13


-


(715)

Adjusted gross profit

$          82,861


$       46,361


$                      -


$                129,222

Gross margin

28.0%


21.7%




25.4%

Adjusted gross margin

27.7%


21.8%




25.3%









Operating income (loss)








Q4 FY21








Operating income (loss)

$          23,822


$       29,892


$             (12,148)


$                  41,566

Non-GAAP adjustments (1)

5,732


1,439


4,227


11,398

Adjusted operating income (loss)

$          29,554


$       31,331


$              (7,921)


$                  52,964

Operating income margin

9.4%


15.2%




9.2%

Adjusted operating income margin

11.7%


15.9%




11.8%









Q4 FY20








Operating income (loss)

$          31,867


$       14,667


$             (21,273)


$                  25,261

Non-GAAP adjustments (1)

7,020


8,056


7,521


22,597

Adjusted operating income (loss)

$          38,887


$       22,723


$             (13,752)


$                  47,858

Operating income margin

10.7%


6.9%




4.9%

Adjusted operating income margin

13.0%


10.7%




9.4%









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

 

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 - Q4 FY21 YTD

$      1,104,128


$     866,174


$                      -


$            1,970,302

Net sales - Q4 FY20 YTD

$      1,171,478


$     882,425


$                      -


$            2,053,903

% change - FY21 net sales vs. FY20 net sales

(5.7)%


(1.8)%




(4.1)%









Gross Profit








Q4 FY21 YTD








Gross profit

$         291,435


$     200,180


$                      -


$               491,615

Non-GAAP adjustments (1)

9,190


4,555


-


13,745

Adjusted gross profit

$         300,625


$     204,735


$                      -


$               505,360

Gross margin

26.4%


23.1%




25.0%

Adjusted gross margin

27.2%


23.6%




25.6%









Q4 FY20 YTD








Gross profit

$         293,545


$     172,225


$                      -


$               465,770

Non-GAAP adjustments (1)

7,309


2,679


-


9,988

Adjusted gross profit

$         300,854


$     174,904


$                      -


$               475,758

Gross margin

25.1%


19.5%




22.7%

Adjusted gross margin

25.7%


19.8%




23.2%









Operating income (loss)








Q4 FY21 YTD








Operating income (loss)

$         129,010


$       38,036


$             (59,666)


$               107,380

Non-GAAP adjustments (1)

14,661


65,231


12,208


92,100

Adjusted operating income (loss)

$         143,671


$     103,267


$             (47,458)


$               199,480

Operating income margin

11.7%


4.4%




5.4%

Adjusted operating income margin

13.0%


11.9%




10.1%









Q4 FY20 YTD








Operating income (loss)

$          95,934


$       55,333


$             (95,225)


$                 56,042

Non-GAAP adjustments (1)

25,083


18,559


40,296


83,938

Adjusted operating income (loss)

$         121,017


$       73,892


$             (54,929)


$               139,980

Operating income margin

8.2%


6.3%




2.7%

Adjusted operating income margin

10.3%


8.4%




6.8%









(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) 










Fourth Quarter


2021 GAAP

Adjustments

2021 Adjusted


2020 GAAP

Adjustments

2020 Adjusted









Net sales

$  450,653

$               -

$        450,653


$  511,746

$               -

$        511,746

Cost of sales

338,073

(3,438)

334,635


381,809

715

382,524

Gross profit

112,580

3,438

116,018


129,937

(715)

129,222

Operating expenses (a) 

64,486

(1,432)

63,054


93,442

(12,079)

81,363

Productivity and transformation costs

6,528

(6,528)

-


10,840

(10,840)

-

Goodwill impairment

-

-

-


394

(394)

-

Operating income

41,566

11,398

52,964


25,261

22,597

47,858

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

(7,381)

7,510

129


4,834

(1,803)

3,031

Provision (benefit) for income taxes

7,896

4,714

12,610


15,958

(4,243)

11,715

   Net income (loss) from continuing operations

40,485

(826)

39,659


3,699

28,644

32,343

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

-

-

-


(460)

460

-

Net income (loss)

40,485

(826)

39,659


3,239

29,104

32,343









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

0.40

(0.01)

0.39


0.04

0.28

0.32

Diluted net income per common share from discontinued operations

-

-

-


-

-

-

Diluted net income (loss) per common share

0.40

(0.01)

0.39


0.04

0.28

0.32









Detail of Adjustments:










Q4 FY21




Q4 FY20


Warehouse/manufacturing consolidation and other costs


$          4,038




$             385


Plant closure related costs


132




3


SKU rationalization and inventory write-down


(732)




(1,103)


Cost of sales


3,438




(715)










Gross profit


3,438




(715)










Litigation and related expenses


943




-


Warehouse/manufacturing consolidation and other costs


245




-


Long-lived asset impairment 


244




12,079


Operating expenses (a) 


1,432




12,079










Productivity and transformation costs


6,528




10,840


Productivity and transformation costs


6,528




10,840










Goodwill impairment


-




394


Goodwill impairment


-




394










Operating income


11,398




22,597










Unrealized currency losses


1,287




355


Gain on sale of assets


(4,900)




-


(Gain) loss on sale of businesses


(3,897)




1,448


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


(7,510)




1,803










Income tax related adjustments


(4,714)




4,243


(Benefit) provision for income taxes


(4,714)




4,243










   Net (loss) income from continuing operations


$            (826)




$        28,644










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

(b)Interest and other (income) expense, net includes interest and other financing expenses, net, unrealized currency losses, (gain) loss on sale of assets and businesses and other expense, net.

 

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) 










Fourth Quarter Year to Date


2021 GAAP

Adjustments

2021 Adjusted


2020 GAAP

Adjustments

2020 Adjusted









Net sales

$ 1,970,302

$               -

$     1,970,302


$ 2,053,903

$               -

$     2,053,903

Cost of sales

1,478,687

(13,745)

1,464,942


1,588,133

(9,988)

1,578,145

Gross profit

491,615

13,745

505,360


465,770

9,988

475,758

Operating expenses (a) 

365,928

(60,048)

305,880


363,507

(27,730)

335,777

Productivity and transformation costs

18,899

(18,899)

-


48,789

(48,789)

-

Proceeds from insurance claim

(592)

592

-


(2,962)

2,962

-

Goodwill impairment

-

-

-


394

(394)

-

Operating income

107,380

92,100

199,480


56,042

83,938

139,980

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

(1,413)

6,752

5,339


22,214

(5,082)

17,132

Provision for income taxes

41,093

4,929

46,022


6,205

27,575

33,780

   Net income from continuing operations

66,109

80,419

146,528


25,634

61,445

87,079

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

11,255

(11,255)

-


(106,041)

106,041

-

Net income (loss) 

77,364

69,164

146,528


(80,407)

167,486

87,079









Diluted net income per common share from continuing operations

0.65

0.80

1.45


0.25

0.59

0.84

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

0.11

(0.11)

-


(1.02)

1.02

-

Diluted net income (loss) per common share

0.76

0.69

1.45


(0.77)

1.61

0.84









Detail of Adjustments:










Q4 FY21 YTD




Q4 FY20 YTD


Warehouse/manufacturing consolidation and other costs


$        11,313




$          3,251


Plant closure related costs


2,853




2,562


SKU rationalization and inventory write-down


(421)




4,175


Cost of sales


13,745




9,988










Gross profit


13,745




9,988










Long-lived asset impairment 


57,920




17,954


Litigation and related expenses


1,587




48


Warehouse/manufacturing consolidation and other costs


508




189


Plant closure related costs


33




-


Intangibles impairment


-




9,539


Operating expenses (a) 


60,048




27,730










Productivity and transformation costs


18,899




48,789


Productivity and transformation costs


18,899




48,789










Proceeds from insurance claim


(592)




(2,962)


Proceeds from insurance claim


(592)




(2,962)










Goodwill impairment


-




394


Goodwill impairment


-




394










Operating income


92,100




83,938










Unrealized currency losses 


752




543


Gain on sale of assets


(4,900)




-


(Gain) loss on sale of businesses


(2,604)




3,564


Deferred financing cost write-off


-




975


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


(6,752)




5,082










Income tax related adjustments


(4,929)




(27,575)


Benefit for income taxes


(4,929)




(27,575)










   Net income from continuing operations


$        80,419




$        61,445










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

(b)Interest and other (income) expense, net includes interest and other financing expenses, net, unrealized currency losses, (gain) loss on sale of assets and businesses and other expense, net.

 

THE HAIN CELESTIAL GROUP, INC.

Adjusted Net Sales Growth

(unaudited and in thousands)







Q4 FY21

North America


International


Hain Consolidated

Net sales

$         253,348


$     197,305


$               450,653

Divestitures and discontinued brands

(525)


-


(525)

Impact of foreign currency exchange

(3,940)


(20,091)


(24,031)

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

$         248,883


$     177,214


$               426,097







Q4 FY20






Net sales 

$         298,644


$     213,102


$               511,746

Divestitures and discontinued brands

(15,551)


(35,051)


(50,602)

Net sales adjusted for divestitures and discontinued
    brands 

$         283,093


$     178,051


$               461,144







Net sales decline

(15.2)%


(7.4)%


(11.9)%

Impact of divestitures and discontinued brands

4.4%


16.3%


9.0%

Impact of foreign currency exchange

(1.3)%


(9.4)%


(4.7)%

Net sales decline on a constant currency basis adjusted for
   divestitures and discontinued brands 

(12.1)%


(0.5)%


(7.6)%







Q4 FY21 YTD

North America


International


Hain Consolidated

Net sales

$      1,104,128


$     866,174


$            1,970,302

Divestitures and discontinued brands

(4,630)


(5,052)


(9,682)

Impact of foreign currency exchange

(6,083)


(55,224)


(61,307)

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

$      1,093,415


$     805,898


$            1,899,313







Q4 FY20 YTD






Net sales

$      1,171,478


$     882,425


$            2,053,903

Divestitures and discontinued brands

(59,671)


(83,173)


(142,844)

Net sales adjusted for divestitures and discontinued
    brands 

$      1,111,807


$     799,252


$            1,911,059







Net sales decline

(5.7)%


(1.8)%


(4.1)%

Impact of divestitures and discontinued brands

4.5%


8.9%


6.5%

Impact of foreign currency exchange

(0.5)%


(6.3)%


(3.0)%

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

(1.7)%


0.8%


(0.6)%

 

THE HAIN CELESTIAL GROUP, INC.

 Adjusted EBITDA 

 (unaudited and in thousands) 










Fourth Quarter


Fourth Quarter Year to Date


2021


2020


2021


2020









Net income (loss)

$ 40,485


$  3,239


$  77,364


$ (80,407)

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

-


(460)


11,255


(106,041)

Net income from continuing operations

$ 40,485


$  3,699


$  66,109


$  25,634









Provision for income taxes

7,896


15,958


41,093


6,205

Interest expense, net

1,099


2,467


5,880


14,351

Depreciation and amortization

11,801


12,019


49,569


52,088

Equity in net loss of equity-method investees

566


770


1,591


1,989

Stock-based compensation, net

3,771


3,497


15,659


13,078

Goodwill impairment

-


394


-


394

Unrealized currency losses

1,287


355


752


543

Productivity and transformation costs

5,435


10,194


15,863


47,596

Proceeds from insurance claim

-


-


(592)


(2,962)

Long-lived asset and intangibles impairment

244


12,079


57,920


27,493

Warehouse/manufacturing consolidation and other costs

4,061


385


11,374


3,440

Litigation and related expenses

943


-


1,587


48

Plant closure related costs

41


3


58


2,357

Gain on sale of assets

(4,900)


-


(4,900)


-

(Gain) loss on sale of businesses

(3,897)


1,448


(2,604)


3,564

SKU rationalization and inventory write-down

(732)


(1,103)


(421)


4,175

Adjusted EBITDA

$ 68,100


$ 62,165


$ 258,938


$ 199,993

 

THE HAIN CELESTIAL GROUP, INC.

Adjusted EBITDA and Adjusted EBITDA Margin by Segment

(unaudited and in thousands)










North America


International


Corporate/Other


Hain Consolidated

Q4 FY21








Operating income (loss)

$          23,822


$       29,892


$               (12,148)


$                 41,566

Depreciation and amortization

4,123


6,946


732


11,801

Stock-based compensation, net

841


312


2,618


3,771

Productivity and transformation costs

2,954


285


2,196


5,435

Long-lived asset impairment

-


244


-


244

Warehouse/manufacturing consolidation and other costs

3,396


665


-


4,061

Plant closure related costs

41


-


-


41

SKU rationalization and inventory write-down

(732)


-


-


(732)

Litigation and related expenses

-


-


943


943

Other

372


(85)


683


970

Adjusted EBITDA

$          34,817


$       38,259


$                 (4,976)


$                 68,100









Net sales 

$         253,348


$     197,305




$               450,653

Adjusted EBITDA margin 

13.7%


19.4%




15.1%










North America


International


Corporate/Other


Hain Consolidated

Q4 FY20








Operating income (loss)

$          31,867


$       14,667


$               (21,273)


$                 25,261

Depreciation and amortization

4,101


7,179


739


12,019

Stock-based compensation, net

631


333


2,533


3,497

Goodwill impairment

-


394


-


394

Productivity and transformation costs

1,553


2,765


5,876


10,194

Long-lived asset impairment

6,196


4,883


1,000


12,079

SKU rationalization and inventory write-down

(1,103)


-


-


(1,103)

Warehouse/manufacturing consolidation and other costs

385


-


-


385

Plant closure related costs

3


-


-


3

Other

153


(312)


(405)


(564)

Adjusted EBITDA

$          43,786


$       29,909


$               (11,530)


$                 62,165









Net sales 

$         298,644


$     213,102




$               511,746

Adjusted EBITDA margin 

14.7%


14.0%




12.1%

 

THE HAIN CELESTIAL GROUP, INC.

Adjusted EBITDA and Adjusted EBITDA Margin by Segment

(unaudited and in thousands)










North America


International


Corporate/Other


Hain Consolidated

Q4 FY21 YTD








Operating income (loss)

$         129,010


$       38,036


$               (59,666)


$               107,380

Depreciation and amortization

16,816


29,915


2,838


49,569

Stock-based compensation, net

3,410


1,535


10,714


15,659

Productivity and transformation costs

5,388


3,880


6,595


15,863

Proceeds from insurance claim

-


-


(592)


(592)

Long-lived asset impairment

(11)


56,348


1,583


57,920

Warehouse/manufacturing consolidation and other costs

7,809


3,565


-


11,374

Plant closure related costs

34


24


-


58

SKU rationalization and inventory write-down

(421)


-


-


(421)

Litigation and related expenses

-


-


1,587


1,587

Other

10


579


(48)


541

Adjusted EBITDA

$         162,045


$     133,882


$               (36,989)


$               258,938









Net sales 

$      1,104,128


$     866,174




$            1,970,302

Adjusted EBITDA margin 

14.7%


15.5%




13.1%










North America


International


Corporate/Other


Hain Consolidated

Q4 FY20 YTD








Operating income (loss)

$          95,934


$       55,333


$               (95,225)


$                 56,042

Depreciation and amortization

16,890


31,437


3,761


52,088

Stock-based compensation, net

2,716


1,316


9,046


13,078

Goodwill impairment

-


394


-


394

Productivity and transformation costs

9,053


7,034


31,509


47,596

Proceeds from insurance claim

-


-


(2,962)


(2,962)

Long-lived asset and intangibles impairment

8,499


8,454


10,540


27,493

SKU rationalization and inventory write-down

3,996


179


-


4,175

Warehouse/manufacturing consolidation and other costs

3,440


-


-


3,440

Plant closure related costs

75


2,282


-


2,357

Litigation and related expenses

-


-


48


48

Other

283


(733)


(3,306)


(3,756)

Adjusted EBITDA

$         140,886


$     105,696


$               (46,589)


$               199,993









Net sales 

$      1,171,478


$     882,425




$            2,053,903

Adjusted EBITDA margin 

12.0%


12.0%




9.7%

 

THE HAIN CELESTIAL GROUP, INC.

 Operating Free Cash Flow 

(unaudited and in thousands)










Fourth Quarter


Fourth Quarter Year to Date


2021


2020


2021