RONKONKOMA, N.Y., April 27 /PRNewswire-FirstCall/ -- NBTY, Inc.
(NYSE: NTY) (www.NBTY.com), a leading global manufacturer and
marketer of nutritional supplements, today announced results for
the fiscal second quarter and six months ended March 31, 2010.
For the fiscal second quarter ended March
31, 2010, net sales were $705
million, compared to $596
million for the fiscal second quarter ended March 31, 2009, an increase of $110 million or 18%. Net income for the
fiscal second quarter ended March 31,
2010 was $47 million, or
$0.73 per diluted share, compared to
net income of $23 million, or
$0.37 per diluted share, for the
fiscal second quarter ended March 31,
2009.
Net income for the fiscal second quarter of 2010 reflects
greater sales and overall higher gross profits. The overall
gross profit percentage for the fiscal second quarter of 2010
increased 4% to 46% from 42% for the fiscal second quarter of 2009.
Selling, general & administrative costs decreased to 28%
of sales for the fiscal second quarter of 2010, from 29% for fiscal
second quarter of 2009.
Net income for the fiscal second quarter of 2010 was adversely
affected by the Company's increased television advertising to
support its Nature's Bounty, Osteo Bi Flex, Ester C and Pure
Protein brands. Accordingly, advertising costs were
$51 million, an increase of
$18 million, or 7.2% of sales for the
fiscal second quarter of 2010, compared with 5.5% of sales for the
fiscal second quarter of 2009. The Company expects its
branded sales for fiscal 2010 to benefit from this additional
advertising. This level of advertising is not anticipated to
continue for the balance of the 2010 fiscal year.
Adjusted EBITDA for the fiscal second quarter of 2010 was
$99 million, compared to $62 million for the fiscal second quarter of
2009. The Company's balance sheet continues to be strong and
well capitalized. During the first six months of fiscal 2010,
the Company repaid $36 million of its
long term debt. At March 31,
2010, the Company's working capital was $778 million, which included over $200 million in cash or equivalents, total assets
were $2 billion, and $325 million remained undrawn and available under
the Company's Revolving Credit Facility.
For the six months ended March 31,
2010, net sales were $1.5
billion compared to $1.3
billion for the six months ended March 31, 2009, an increase of $200 million or 16%. Net income for the six
months ended March 31, 2010, was
$122 million, or $1.92 per diluted share, compared to net income
of $37 million, or $0.58 per diluted share, for the six months ended
March 31, 2009.
Adjusted EBITDA for the six months ended March 31, 2010 was $247
million, compared to $116
million for the six months ended March 31, 2009.
OPERATIONS FOR THE FISCAL SECOND QUARTER ENDED MARCH 31, 2010
Net sales for the Wholesale/US Nutrition division, which markets
various branded products, including Nature's Bounty, Osteo
Bi-Flex, Rexall, Sundown, Ester-C, Pure Protein, Solgar, and
private label products, increased $77
million, or 22%, to $427
million. NBTY's branded products, which have higher
gross profit margins than the Company's private label products,
represent a larger part of the wholesale business. Branded
products accounted for 62% of wholesale sales in the fiscal second
quarter of 2010, compared to 58% of wholesale sales in the fiscal
second quarter of 2009. At the same time, private label
sales accounted for 38% of wholesale sales in the fiscal second
quarter of 2010, compared to 42% of wholesale sales in the fiscal
second quarter of 2009. Gross profit for the Wholesale/US
Nutrition division increased 8% to 35% for the fiscal second
quarter of 2010, compared with 27% for the fiscal second quarter of
2009.
The Nielsen Company tracks industry-wide sales of vitamins,
minerals, herbs and other supplements in the food, drug and mass
market sectors. For the thirteen week period ended
April 3, 2010, Nielsen reported an
increase in the entire category of 12.5%. According to
Nielsen, for that same period, the Company's Wholesale brands
increased 21%.
The Wholesale/US Nutrition division utilizes valuable consumer
preference sales data generated by the Company's Vitamin World
retail stores and Puritan's Pride Direct Response/E-Commerce
operations to empower its wholesale customers with this latest
data. The Vitamin World stores are used as a laboratory for
new ideas and are an effective tool in determining and monitoring
consumer preferences. This information, as well as scanned
sales data from the Vitamin World stores, is shared on a real time
basis with our wholesale customers to give them a competitive
advantage.
Net sales for the North American Retail division, comprised of
Vitamin World Stores in the United
States and LeNaturiste stores in Canada, were $55
million, a 5% increase from the prior like quarter.
The division's same store sales were up 5% for the fiscal second
quarter of 2010 as the modernization of the Vitamin World stores
had a favorable impact on its operations.
During the fiscal second quarter of 2010, the North American
Retail division opened one new store and closed 4 stores.
Fourteen additional stores are expected to open in fiscal
2010. At the end of the fiscal second quarter of 2010, the
North American Retail division operated a total of 531 stores,
consisting of 446 Vitamin World stores in the United States and 85 LeNaturiste stores in
Canada.
European Retail net sales for the fiscal second quarter ended
March 31, 2010 were $159 million, an 18% increase compared to
$134 million for the prior like
quarter. In local currency (British Pound Sterling),
European Retail net sales increased 9% and same store sales
increased 6%. The Company has continued to integrate the
Julian Graves operations into its European Retail Division.
During this fiscal quarter, 23 Julian Graves stores were converted
into Holland & Barrett and GNC
stores, resulting in a 19% sales increase for these converted
stores.
The European Retail division continues to leverage its premier
status, high street locations and brand awareness to generate these
results. At March 31, 2010, the
European Retail division consisted of 565 Holland & Barrett
stores, 324 Julian Graves stores and 35 GNC stores in the UK, 27
Nature's Way stores in Ireland,
and 85 DeTuinen stores in the
Netherlands, for a total of 1,036 stores in Europe and 16 Holland & Barrett franchised
stores in South Africa,
Singapore and Malta.
Net sales from Direct Response/E-Commerce operations for the
fiscal second quarter of 2010 increased 9% to $65 million from $59
million for the fiscal second quarter of 2009. As this
division varies its promotional strategy throughout the fiscal
year, its results should be viewed on an annual and not quarterly
basis. Puritan's Pride is the leader in the Direct Response
and E-Commerce sectors and continues to increase the number of
products available via its catalog and web sites. On-line sales
were 53% of total sales for the fiscal second quarter of 2010
compared with 46% for the prior comparable quarter.
NBTY Chairman and CEO, Scott
Rudolph, said: "We are pleased to report strong sales growth
with improved gross profits. However, because of the
increasing competitive nature of the private label business, we
anticipate gross profits for our private label business to decrease
for the remainder of fiscal 2010. This should adversely
affect gross profits for our wholesale division during this period.
To address this issue, we have begun the process of
initiating additional improvements in supply chain management.
We are also increasing our focus on our branded product
sales, which traditionally have higher gross profits. Our
financial strength continues to play a vital role in generating
future growth and shareholder value."
NBTY will web cast a presentation by Harvey Kamil, President and Chief Financial
Officer of NBTY, at the Barclays Capital Retail and Restaurants
Conference live on the Company website, www.nbty.com, on
Thursday, April 29, 2010 at
8:45 am (ET).
ABOUT NBTY
NBTY is a leading global vertically integrated manufacturer,
marketer and distributor of a broad line of high-quality,
value-priced nutritional supplements in the United States and throughout the world.
Under a number of NBTY and third party brands, the Company offers
over 25,000 products, including products marketed by the Company's
Nature's Bounty(R) (www.naturesbounty.com), Vitamin World(R)
(www.vitaminworld.com), Puritan's Pride(R) (www.puritan.com),
Holland & Barrett(R) (www.hollandandbarrett.com), Rexall(R)
(www.rexall.com), Sundown(R) (www.sundownnaturals.com), MET-Rx(R)
(www.metrx.com), Worldwide Sport Nutrition(R)
(www.sportnutrition.com), American Health(R)
(www.americanhealthus.com), GNC (UK)(R) (www.gnc.co.uk),
DeTuinen(R) (www.detuinen.nl), LeNaturiste™ (www.lenaturiste.com),
SISU(R) (www.sisu.com), Solgar(R) (www.solgar.com), Good 'n'
Natural(R) (www.goodnnatural.com), Home Health™
(www.homehealthus.com), Julian Graves, (www.juliangraves.com) and
Ester-C(R), (www.ester-c.com) brands. NBTY routinely posts
information that may be important to investors on its web site.
This release refers to non-GAAP financial measures, such as
Adjusted EBITDA. "Adjusted EBITDA" is defined as net income,
excluding the aggregate amount of all non-cash losses reducing net
income, plus interest, taxes, depreciation and amortization.
This non-GAAP financial measure is not prepared in accordance
with generally accepted accounting principles and may be different
from non-GAAP financial measures used by other companies. Non-GAAP
financial measures should not be considered as a substitute for, or
superior to, measures of financial performance prepared in
accordance with GAAP. A reconciliation of the non-GAAP
measure to the comparable GAAP measure is included in the attached
financial tables. Management believes the presentation of
Adjusted EBITDA is relevant and useful because Adjusted EBITDA is a
measurement industry analysts utilize when evaluating NBTY's
operating performance. Management also believes Adjusted
EBITDA enhances an investor's understanding of NBTY's results of
operations because it measures NBTY's operating performance
exclusive of interest and non-cash charges for depreciation and
amortization. Management also provides this non-GAAP
measurement as a way to help investors better understand its core
operating performance, enhance comparisons of NBTY's core operating
performance from period to period and to allow better comparisons
of NBTY's operating performance to that of its competitors.
This release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
with respect to our financial condition, results of operations and
business. These forward-looking statements can be identified
by the use of terminology such as "subject to," "believe,"
"expects," "plan," "project," "estimate," "intend," "may," "will,"
"should," "can," or "anticipates," or the negative thereof, or
variations thereon, or comparable terminology, or by discussions of
strategy. Although all of these forward looking statements
are believed to be reasonable, they are inherently uncertain.
Factors which may materially affect such forward-looking
statements include: (i) slow or negative growth in the nutritional
supplement industry; (ii) interruption of business or negative
impact on sales and earnings due to acts of God, acts of war,
terrorism, bio-terrorism, civil unrest or disruption of mail
service; (iii) adverse publicity regarding nutritional supplements;
(iv) inability to retain customers of companies (or mailing lists)
recently acquired; (v) increased competition; (vi) increased costs;
(vii) loss or retirement of key members of management; (viii)
increases in the cost of borrowings and/or unavailability of
additional debt or equity capital; (ix) unavailability of, or
inability to consummate, advantageous acquisitions in the future,
including those that may be subject to bankruptcy approval or the
inability of NBTY to integrate acquisitions into the mainstream of
its business; (x) changes in general worldwide economic and
political conditions in the markets in which NBTY may compete from
time to time; (xi) the inability of NBTY to gain and/or hold market
share of its wholesale and/or retail customers anywhere in the
world; (xii) unavailability of electricity in certain geographical
areas; (xiii) the inability of NBTY to obtain and/or renew
insurance and/or the costs of the same; (xiv) exposure to and
expense of defending and resolving product liability and
intellectual property claims and other litigation; (xv) the ability
of NBTY to successfully implement its business strategy; (xvi) the
inability of NBTY to manage its retail, wholesale, manufacturing
and other operations efficiently; (xvii) consumer acceptance of
NBTY's products; (xviii) the inability of NBTY to renew leases for
its retail locations; (xix) the inability of NBTY's retail stores
to attain or maintain profitability; (xx) the absence of clinical
trials for many of NBTY's products; (xxi) sales and earnings
volatility and/or trends for the Company and its market segments;
(xxii) the efficacy of NBTY's Internet and on-line sales and
marketing strategies; (xxiii) fluctuations in foreign currencies,
including the British pound, the Euro and the Canadian dollar;
(xxiv) import-export controls on sales to foreign countries; (xxv)
the inability of NBTY to secure favorable new sites for, and delays
in opening, new retail and manufacturing locations; (xxvi)
introduction of and compliance with new federal, state, local or
foreign legislation or regulation or adverse determinations by
regulators anywhere in the world (including the banning of
products) and more particularly Good Manufacturing Practices in
the United States, the Food
Supplements Directive and Traditional Herbal Medicinal Products
Directive in Europe and Section
404 requirements of the Sarbanes-Oxley Act of 2002; (xxvii) the mix
of NBTY's products and the profit margins thereon; (xxviii) the
availability and pricing of raw materials; (xxix) risk factors
discussed in NBTY's filings with the U.S. Securities and Exchange
Commission; (xxx) adverse effects on NBTY as a result of increased
energy prices and potentially reduced traffic flow to NBTY's retail
locations; (xxxi) adverse tax determinations; (xxxii) the loss of a
significant customer of the Company; (xxxiii) potential investment
losses as a result of liquidity conditions; and (xxxiv) other
factors beyond the Company's control.
Readers are cautioned not to place undue reliance on
forward-looking statements. NBTY cannot guarantee future results,
trends, events, levels of activity, performance or achievements.
NBTY does not undertake and specifically declines any obligation to
update, republish or revise forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the
occurrences of unanticipated events.
Consequently, such forward-looking statements should be regarded
solely as NBTY's current plans, estimates and beliefs.
Contact: Harvey Kamil
|
Carl Hymans
|
|
NBTY, Inc.
|
G.S. Schwartz & Co.
|
|
President and Chief Financial Officer
|
212-725-4500
|
|
631-200-2020
|
carlh@schwartz.com
|
|
|
|
(TABLES FOLLOW)
|
|
NBTY,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
(UNAUDITED)
|
|
(In thousands, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
Three
months
|
|
|
ended March
31,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Net sales
|
$
705,160
|
|
$
595,553
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
Cost of sales
|
380,668
|
|
343,644
|
|
Advertising, promotion and
catalog
|
50,937
|
|
33,028
|
|
Selling, general and
administrative
|
194,593
|
|
174,657
|
|
|
626,198
|
|
551,329
|
|
|
|
|
|
|
Income from operations
|
78,962
|
|
44,224
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Interest
|
(7,616)
|
|
(8,888)
|
|
Miscellaneous,
net
|
790
|
|
279
|
|
|
(6,826)
|
|
(8,609)
|
|
|
|
|
|
|
Income before provision for income
taxes
|
72,136
|
|
35,615
|
|
|
|
|
|
|
Provision for income
taxes
|
25,480
|
|
12,545
|
|
|
|
|
|
|
Net income
|
$
46,656
|
|
$
23,070
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
Basic
|
$0.74
|
|
$0.37
|
|
Diluted
|
$0.73
|
|
$0.37
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
Basic
|
63,266
|
|
61,600
|
|
Diluted
|
64,267
|
|
62,948
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NBTY,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
|
(UNAUDITED)
|
|
(In thousands, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
Six
months
|
|
|
ended March
31,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Net sales
|
$
1,456,311
|
|
$
1,256,105
|
|
|
|
|
|
|
Costs and expenses:
|
|
|
|
|
Cost of sales
|
792,116
|
|
732,147
|
|
Advertising, promotion and
catalog
|
79,679
|
|
64,319
|
|
Selling, general and
administrative
|
383,324
|
|
370,557
|
|
IT project termination
costs
|
-
|
|
8,647
|
|
|
1,255,119
|
|
1,175,670
|
|
|
|
|
|
|
Income from operations
|
201,192
|
|
80,435
|
|
|
|
|
|
|
Other income (expense):
|
|
|
|
|
Interest
|
(15,672)
|
|
(18,377)
|
|
Miscellaneous,
net
|
2,545
|
|
(5,356)
|
|
|
(13,127)
|
|
(23,733)
|
|
|
|
|
|
|
Income before provision for income
taxes
|
188,065
|
|
56,702
|
|
|
|
|
|
|
Provision for income
taxes
|
65,823
|
|
20,157
|
|
|
|
|
|
|
Net income
|
$
122,242
|
|
$
36,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share:
|
|
|
|
|
Basic
|
$1.95
|
|
$0.59
|
|
Diluted
|
$1.92
|
|
$0.58
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
Basic
|
62,597
|
|
61,600
|
|
Diluted
|
63,826
|
|
63,043
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
SALES
|
|
|
(Unaudited)
|
|
|
THREE MONTHS
ENDED
|
|
|
MARCH
31,
|
|
|
|
|
|
|
|
|
|
Percentage
|
|
(In thousands)
|
2010
|
2009
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale / US Nutrition
|
$
426,575
|
$
349,801
|
22%
|
|
|
|
|
|
|
North American Retail
|
54,769
|
51,916
|
5%
|
|
|
|
|
|
|
European Retail
|
159,013
|
134,438
|
18%
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
64,803
|
59,398
|
9%
|
|
|
|
|
|
|
Total
|
$
705,160
|
$
595,553
|
18%
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
PERCENTAGES
|
|
|
(Unaudited)
|
|
|
THREE MONTHS
ENDED
|
|
|
MARCH
31,
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
2010
|
2009
|
-
Decrease
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale / US Nutrition
|
35%
|
27%
|
8%
|
|
|
|
|
|
|
North American Retail
|
66%
|
66%
|
0%
|
|
|
|
|
|
|
European Retail
|
62%
|
63%
|
-1%
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
62%
|
64%
|
-2%
|
|
|
|
|
|
|
Total
|
46%
|
42%
|
4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
SALES
|
|
|
(Unaudited)
|
|
|
SIX MONTHS
ENDED
|
|
|
MARCH
31,
|
|
|
|
|
|
|
|
|
|
Percentage
|
|
(In thousands)
|
2010
|
2009
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale / US Nutrition
|
$
897,688
|
$
756,768
|
19%
|
|
|
|
|
|
|
North American Retail
|
106,227
|
100,354
|
6%
|
|
|
|
|
|
|
European Retail
|
335,008
|
290,464
|
15%
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
117,388
|
108,519
|
8%
|
|
|
|
|
|
|
Total
|
$
1,456,311
|
$
1,256,105
|
16%
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS
PROFIT
|
|
|
PERCENTAGES
|
|
|
(Unaudited)
|
|
|
SIX MONTHS
ENDED
|
|
|
MARCH
31,
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
2010
|
2009
|
-
Decrease
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale / US Nutrition
|
35%
|
27%
|
8%
|
|
|
|
|
|
|
North American Retail
|
67%
|
67%
|
0%
|
|
|
|
|
|
|
European Retail
|
62%
|
63%
|
-1%
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
62%
|
62%
|
0%
|
|
|
|
|
|
|
Total
|
46%
|
42%
|
4%
|
|
|
|
|
|
|
|
|
|
ADJUSTED
EBITDA**
|
|
Reconciliation of
GAAP Measures to Non-GAAP Measures
|
|
(Unaudited)
|
|
(In thousands)
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
MARCH 31,
2010
|
|
|
|
|
|
|
|
|
|
Pretax Income
(Loss)
|
Depreciation and
amortization
|
Interest
|
Non-cash
charges
|
Adjusted
EBITDA**
|
|
|
|
|
|
|
|
|
Wholesale / US Nutrition
|
$
55,454
|
$
3,659
|
$
-
|
$
100
|
$
59,213
|
|
|
|
|
|
|
|
|
North American Retail
|
451
|
622
|
-
|
72
|
1,145
|
|
|
|
|
|
|
|
|
European Retail
|
25,880
|
3,458
|
-
|
207
|
29,545
|
|
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
18,013
|
1,206
|
|
27
|
19,246
|
|
|
|
|
|
|
|
|
Segment Results
|
99,798
|
8,945
|
-
|
406
|
109,149
|
|
|
|
|
|
|
|
|
Corporate / Manufacturing
|
(27,662)
|
7,866
|
7,616
|
1,785
|
(10,395)
|
|
|
|
|
|
|
|
|
Total
|
$
72,136
|
$
16,811
|
$
7,616
|
$
2,191
|
$
98,754
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS
ENDED
|
|
|
MARCH 31,
2009
|
|
|
|
|
|
|
|
|
|
Pretax Income
(Loss)
|
Depreciation and
amortization
|
Interest
|
Non-cash
charges
|
Adjusted
EBITDA**
|
|
|
|
|
|
|
|
|
Wholesale / US Nutrition
|
$
19,046
|
$
3,586
|
$
-
|
$
(74)
|
$
22,558
|
|
|
|
|
|
|
|
|
North American Retail
|
(731)
|
745
|
-
|
23
|
37
|
|
|
|
|
|
|
|
|
European Retail
|
20,318
|
3,403
|
-
|
38
|
23,759
|
|
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
19,244
|
1,267
|
|
(62)
|
20,449
|
|
|
|
|
|
|
|
|
Segment Results
|
57,877
|
9,001
|
-
|
(75)
|
66,803
|
|
|
|
|
|
|
|
|
Corporate / Manufacturing
|
(22,262)
|
8,278
|
8,888
|
442
|
(4,654)
|
|
|
|
|
|
|
|
|
Total
|
$
35,615
|
$
17,279
|
$
8,888
|
$
367
|
$
62,149
|
|
|
|
|
|
|
|
|
** SINCE ADJUSTED EBITDA IS NOT
A MEASURE OF PERFORMANCE CALCULATED IN ACCORDANCE WITH U.S.
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP"), IT SHOULD NOT BE
CONSIDERED IN ISOLATION OF, OR AS A SUBSTITUTE FOR OR SUPERIOR TO,
OTHER MEASURES OF FINANCIAL PERFORMANCE PREPARED IN ACCORDANCE WITH
GAAP, SUCH AS OPERATING INCOME, NET INCOME AND CASH FLOWS FROM
OPERATING ACTIVITIES. IN ADDITION, THE COMPANY'S DEFINITION
OF ADJUSTED EBITDA IS NOT NECESSARILY COMPARABLE TO SIMILARLY
TITLED MEASURES REPORTED BY OTHER COMPANIES.
|
|
|
|
|
|
|
|
|
|
ADJUSTED EBITDA**
|
|
Reconciliation of
GAAP Measures to Non-GAAP Measures
|
|
(Unaudited)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
SIX MONTHS
ENDED
|
|
|
MARCH 31,
2010
|
|
|
|
|
|
|
|
|
|
Pretax Income
(Loss)
|
Depreciation and
amortization
|
Interest
|
Non-cash
charges
|
Adjusted
EBITDA**
|
|
|
|
|
|
|
|
|
Wholesale / US Nutrition
|
$
141,692
|
$
7,331
|
$
-
|
$
5,678
|
$
154,701
|
|
|
|
|
|
|
|
|
North American Retail
|
2,523
|
1,331
|
-
|
121
|
3,975
|
|
|
|
|
|
|
|
|
European Retail
|
60,524
|
7,084
|
-
|
326
|
67,934
|
|
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
34,401
|
2,412
|
-
|
42
|
36,855
|
|
|
|
|
|
|
|
|
Segment Results
|
239,140
|
18,158
|
-
|
6,167
|
263,465
|
|
|
|
|
|
|
|
|
Corporate / Manufacturing
|
(51,075)
|
15,600
|
15,672
|
2,968
|
(16,835)
|
|
|
|
|
|
|
|
|
Total
|
$
188,065
|
$
33,758
|
$
15,672
|
$
9,135
|
$
246,630
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SIX MONTHS
ENDED
|
|
|
MARCH 31,
2009
|
|
|
|
|
|
|
|
|
|
Pretax Income
(Loss)
|
Depreciation and
amortization
|
Interest
|
Non-cash
charges
|
Adjusted
EBITDA**
|
|
|
|
|
|
|
|
|
Wholesale / US Nutrition
|
$
49,063
|
$
7,310
|
$
-
|
$
(27)
|
$
56,346
|
|
|
|
|
|
|
|
|
North American Retail
|
(1,886)
|
1,497
|
-
|
47
|
(342)
|
|
|
|
|
|
|
|
|
European Retail
|
46,489
|
6,964
|
-
|
90
|
53,543
|
|
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
19,953
|
2,532
|
-
|
4,623
|
27,108
|
|
|
|
|
|
|
|
|
Segment Results
|
113,619
|
18,303
|
-
|
4,733
|
136,655
|
|
|
|
|
|
|
|
|
Corporate / Manufacturing
|
(56,917)
|
16,497
|
18,377
|
1,003
|
(21,040)
|
|
|
|
|
|
|
|
|
Total
|
$
56,702
|
$
34,800
|
$
18,377
|
$
5,736
|
$
115,615
|
|
** SINCE ADJUSTED EBITDA IS NOT
A MEASURE OF PERFORMANCE CALCULATED IN ACCORDANCE WITH U.S.
GENERALLY ACCEPTED ACCOUNTING PRINCIPLES ("GAAP"), IT SHOULD NOT BE
CONSIDERED IN ISOLATION OF, OR AS A SUBSTITUTE FOR OR SUPERIOR TO,
OTHER MEASURES OF FINANCIAL PERFORMANCE PREPARED IN
ACCORDANCE WITH GAAP, SUCH AS OPERATING
INCOME, NET INCOME AND CASH FLOWS FROM OPERATING ACTIVITIES.
IN ADDITION, THE COMPANY'S DEFINITION OF ADJUSTED EBITDA IS
NOT NECESSARILY COMPARABLE TO SIMILARLY TITLED MEASURES REPORTED BY
OTHER COMPANIES.
|
|
|
|
|
|
|
|
|
|
NBTY,
Inc.
|
|
Condensed Consolidated Balance
Sheets
|
|
(Unaudited)
|
|
|
|
|
|
|
(In thousands, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
September
30,
|
|
|
2010
|
|
2009
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
$
213,905
|
|
$
106,001
|
|
Accounts receivable,
net
|
167,976
|
|
155,863
|
|
Inventories
|
636,978
|
|
658,534
|
|
Deferred income taxes
|
27,952
|
|
28,154
|
|
Other current assets
|
58,709
|
|
49,999
|
|
Total current
assets
|
1,105,520
|
|
998,551
|
|
|
|
|
|
|
Property, plant and equipment, net
|
363,276
|
|
373,817
|
|
Goodwill
|
332,327
|
|
339,099
|
|
Intangible assets, net
|
205,367
|
|
214,139
|
|
Other assets
|
19,777
|
|
34,615
|
|
|
|
|
|
|
Total assets
|
$
2,026,267
|
|
$
1,960,221
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Current portion of long-term
debt
|
$
64,108
|
|
$
38,893
|
|
Accounts payable
|
109,168
|
|
128,485
|
|
Accrued expenses and other
current liabilities
|
154,684
|
|
156,734
|
|
Total current
liabilities
|
327,960
|
|
324,112
|
|
|
|
|
|
|
Long-term debt, net of current
portion
|
375,839
|
|
437,629
|
|
Deferred income taxes
|
39,151
|
|
36,422
|
|
Other liabilities
|
31,814
|
|
34,233
|
|
Total
liabilities
|
774,764
|
|
832,396
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
Common stock, $0.008 par; authorized
175,000 shares;
|
|
|
|
|
issued and outstanding
63,302 and 61,874 shares
|
|
|
|
|
at March 31, 2010 and
September 30, 2009, respectively
|
506
|
|
495
|
|
Capital in excess of
par
|
163,997
|
|
145,885
|
|
Retained
earnings
|
1,107,039
|
|
984,797
|
|
Accumulated other comprehensive
income
|
(20,039)
|
|
(3,352)
|
|
Total
stockholders' equity
|
1,251,503
|
|
1,127,825
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
$
2,026,267
|
|
$
1,960,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NBTY,
INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(UNAUDITED)
|
|
(In thousands)
|
|
|
|
|
|
Six
months
|
|
|
ended March
31,
|
|
|
2010
|
|
2009
|
|
Cash flows from operating
activities:
|
|
|
|
|
Net income
|
$
122,242
|
|
$
36,545
|
|
Adjustments to reconcile net income to
cash provided by
|
|
|
|
|
operating activities:
|
|
|
|
|
Impairments and disposals
of assets
|
6,196
|
|
688
|
|
IT project termination
costs
|
-
|
|
4,667
|
|
Depreciation and
amortization
|
33,758
|
|
34,800
|
|
Foreign currency
transaction loss
|
130
|
|
6,669
|
|
Stock-based
compensation
|
3,611
|
|
1,069
|
|
Amortization of deferred
charges
|
774
|
|
631
|
|
Allowance for doubtful
accounts
|
1,866
|
|
850
|
|
Inventory
reserves
|
1,699
|
|
7,177
|
|
Deferred income
taxes
|
1,447
|
|
383
|
|
Excess income tax benefit
from exercise of stock options
|
(4,787)
|
|
-
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
(15,717)
|
|
(16,256)
|
|
Inventories
|
16,286
|
|
(57,941)
|
|
Other
assets
|
4,173
|
|
10,568
|
|
Accounts
payable
|
(18,341)
|
|
47,219
|
|
Accrued expenses
and other liabilities
|
4,099
|
|
(20,843)
|
|
Net cash
provided by operating activities
|
157,436
|
|
56,226
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
Purchase of property, plant and
equipment
|
(24,437)
|
|
(35,639)
|
|
Cash paid for
acquisitions
|
(573)
|
|
(264)
|
|
Proceeds from sale of
investments
|
2,000
|
|
-
|
|
Escrow refund, net of purchase
price adjustments
|
-
|
|
11,989
|
|
Net cash
used in investing activities
|
(23,010)
|
|
(23,914)
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
Principal payments under
long-term debt agreements and capital leases
|
(35,777)
|
|
(16,785)
|
|
Proceeds from borrowings under
the Revolving Credit Facility
|
-
|
|
60,000
|
|
Principal payments under the
Revolving Credit Facility
|
-
|
|
(115,000)
|
|
Excess income tax benefit from
exercise of stock options
|
4,787
|
|
-
|
|
Proceeds from stock options
exercised
|
9,725
|
|
6
|
|
Net cash used in
financing activities
|
(21,265)
|
|
(71,779)
|
|
|
|
|
|
|
Effect of exchange rate changes on
cash and cash equivalents
|
(5,257)
|
|
(6,912)
|
|
|
|
|
|
|
Net increase (decrease) in cash and
cash equivalents
|
107,904
|
|
(46,379)
|
|
|
|
|
|
|
Cash and cash equivalents at beginning
of period
|
106,001
|
|
90,180
|
|
|
|
|
|
|
Cash and cash equivalents at end of
period
|
$
213,905
|
|
$
43,801
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE NBTY, Inc.