Hain Celestial Reports Fourth Quarter and Fiscal Year 2021 Financial Results
Hain Celestial reported its fourth-quarter and fiscal year 2021 results, showing net sales of $450.7 million for Q4, a 12% decrease year-over-year. Adjusted net income rose to $39.7 million, while gross margin improved to 25.7%. For the fiscal year, net sales totaled $1.97 billion, a 4% decline, with adjusted EBITDA growing to $258.9 million. The company announced a new $300 million share repurchase authorization. Looking ahead, it expects low single-digit adjusted net sales growth and mid to high single-digit adjusted EBITDA growth for fiscal year 2022.
- Adjusted net income increased to $39.7 million in Q4, up from $32.3 million YoY.
- Adjusted EBITDA rose to $258.9 million for the fiscal year, a 29% increase.
- Gross margin improved to 25.7% in Q4, indicating better operational efficiency.
- New share repurchase authorization of $300 million shows commitment to shareholder return.
- Q4 net sales decreased 12% year-over-year to $450.7 million.
- Full fiscal year sales declined 4%, reflecting challenging market conditions.
- North America segment experienced a 15% decrease in net sales for Q4.
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 , or17% 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 , or7% 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
Segment gross profit in the fourth quarter was
Segment operating income in the fourth quarter was
Adjusted EBITDA in the fourth quarter was
North America net sales in fiscal year 2021 were
Segment gross profit in fiscal year 2021 was
Segment operating income in fiscal year 2021 was
Adjusted EBITDA in fiscal year 2021 was
International
International net sales in the fourth quarter were
Segment gross profit in the fourth quarter was
Segment operating income in the fourth quarter was
Adjusted EBITDA in the fourth quarter was
International net sales in fiscal year 2021 were
Segment gross profit in fiscal year 2021 was
Segment operating income in fiscal year 2021 was
Adjusted EBITDA in fiscal year 2021 was
CAPITAL MANAGEMENT
The Company is announcing today that its Board of Directors has approved an additional
During the fourth quarter of fiscal year 2021, the Company repurchased 0.7 million shares, or
During fiscal year 2021, the Company repurchased 3.1 million shares, or
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
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 | |||||||
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) | $ 3,239 | $ 77,364 | |||||
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 | $ 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 | |||||||
Adjusted gross margin | |||||||
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 | |||||||
Adjusted gross margin | |||||||
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 | |||||||
Adjusted operating income margin | |||||||
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 | |||||||
Adjusted operating income margin | |||||||
(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 | |||||||
Adjusted gross margin | |||||||
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 | |||||||
Adjusted gross margin | |||||||
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 | |||||||
Adjusted operating income margin | |||||||
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 | |||||||
Adjusted operating income margin | |||||||
(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 | $ - | $ 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 | $ 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 | $ 283,093 | $ 178,051 | $ 461,144 | ||
Net sales decline | (15.2)% | (7.4)% | (11.9)% | ||
Impact of divestitures and discontinued brands | |||||
Impact of foreign currency exchange | (1.3)% | (9.4)% | (4.7)% | ||
Net sales decline on a constant currency basis adjusted for | (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 | $ 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 | $ 1,111,807 | $ 799,252 | $ 1,911,059 | ||
Net sales decline | (5.7)% | (1.8)% | (4.1)% | ||
Impact of divestitures and discontinued brands | |||||
Impact of foreign currency exchange | (0.5)% | (6.3)% | (3.0)% | ||
Net sales (decline) growth on a constant currency basis adjusted | (1.7)% | (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) | $ 3,239 | $ 77,364 | |||||
Net (loss) income from discontinued operations, net of tax | - | (460) | 11,255 | (106,041) | |||
Net income from continuing operations | $ 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 | |||||||
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 | |||||||
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 | |||||||
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 | |||||||
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 | |||||||
THE HAIN CELESTIAL GROUP, INC. | |||||||
Operating Free Cash Flow | |||||||
(unaudited and in thousands) | |||||||
Fourth Quarter | Fourth Quarter Year to Date | ||||||
2021 | 2020 | 2021 | 2020 | ||||
Net cash provided by operating activities from continuing operations | |||||||
Purchases of property, plant and equipment | (18,491) | (13,932) | (71,553) | (60,893) | |||
Operating free cash flow from continuing operations | $ 96,021 | ||||||
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SOURCE The Hain Celestial Group, Inc.
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