NBTY Reports Record Second Quarter Results BOHEMIA, N.Y., April 22
/PRNewswire-FirstCall/ -- NBTY, Inc. (http://www.nbty.com/), a
leading manufacturer and marketer of nutritional supplements, today
announced record results for the fiscal second quarter ended March
31, 2004. For the fiscal second quarter ended March 31, 2004, sales
increased 58% to $440 million, compared to sales of $278 million
for the fiscal second quarter ended March 31, 2003. Net income for
the fiscal second quarter was $41 million, or $0.60 per diluted
share, compared to net income of $20 million, or $0.29 per diluted
share for the fiscal second quarter last year. (Without a one-time
$6 million discontinued product charge, net income and earnings per
diluted share for the fiscal second quarter of 2003 would have been
$24 million and $0.34, respectively.) Results for the fiscal second
quarter of 2004 reflect increased sales across all the Company's
businesses and include the results of Rexall businesses acquired in
July 2003. Rexall product lines recorded sales of $82 million for
the fiscal second quarter. Without such product lines, sales would
have increased 29% for the fiscal second quarter. For the first six
months of fiscal 2004, sales increased 59% to $825 million,
compared to $519 million for the first six months of fiscal 2003.
Net income for the first six months of fiscal 2004 was $65 million,
or $0.94 per diluted share, compared with $36 million, or $0.53 per
diluted share for the first six months of fiscal 2003. (Without the
aforementioned one-time $6 million charge, net income and earnings
per diluted share for the first six months of fiscal 2003 would
have been $40 million and $0.59, respectively.) NBTY continues to
enhance its financial strength. During the first six months of
fiscal 2004, the Company repaid a total of $98 million of principal
outstanding under its term loans; $24 million in the first fiscal
quarter ended December 31, 2003 and $74 million in the second
fiscal quarter ended March 31, 2004. These payments reduced the
principal amount of outstanding term loans to $174 million from the
principal balance of $272 million at September 30, 2003. OPERATIONS
FOR THE FISCAL SECOND QUARTER ENDED MARCH 31, 2004 The US Nutrition
wholesale division, which operates Nature's Bounty and Rexall,
increased its sales 123% to $189 million from $85 million for the
comparable prior period of fiscal 2003. These results include $82
million from Rexall product lines, such as Osteo Bi-Flex(R),
MET-Rx(R), Sundown(R) and Carb Solutions(R), and include a charge
of approximately $3 million for returns associated with Rexall's
pre-acquisition sales. These returns have decreased steadily since
the Rexall acquisition in July 2003, as the Company maximizes
Rexall retail space and replaces pre-acquisition slower-moving
Rexall products with reformulated Rexall products as well as
Nature's Bounty premium products. US Nutrition's results reflect
the continued success of the integration of Rexall and additional
growth in mass-market sales. The Company now employs 575 former
Rexall associates, approximately 350 fewer than at the time of the
acquisition. NBTY continues to increase its dominant presence in
the wholesale nutritional supplement marketplace. The Company's
utilization of consumer sales information, received on a daily
basis from its Vitamin World retail stores and Puritan's Pride
direct-response/e-commerce operations, continues to provide
mass-market customers with timely and vital data to drive sales.
Vitamin World fiscal second quarter sales were $56 million compared
to $54 million a year ago, an increase of 5%. Vitamin World
operations generated continued profitability in the fiscal second
quarter and EBITDA (as defined in non-GAAP financial measures
below) was $4 million. Same store sales increased 4%. During the
fiscal second quarter Vitamin World opened 5 new stores, closed 3
stores and at the end of the quarter operated 545 stores
nationwide. NBTY's European retail sales for the fiscal second
quarter increased 42% to $123 million from $87 million for the
fiscal second quarter a year ago. This increase includes sales
generated by the 50 GNC stores in the UK and 67 DeTuinen stores in
the Netherlands that NBTY acquired in fiscal 2003. GNC (UK) and
DeTuinen each generated sales of approximately $10 million for the
fiscal second quarter. While results for the DeTuinen chain,
acquired in May 2003, were not profitable, a turn-around is
anticipated within the next 12 months based upon the chain's
progress to date. During the fiscal second quarter, the Company's
European retail division opened 6 new stores, closed 3 stores and
at the end of the quarter operated 599 stores in the UK, Ireland
and the Netherlands. Holland & Barrett continues to be a leader
in the United Kingdom with same store sales increasing 21% for the
fiscal second quarter, reflecting in part, the positive effect of
the strong British pound. Without the effect of foreign exchange,
Holland & Barrett same store sales increased 6%. Revenues from
Puritan's Pride direct response/e-commerce operations for the
fiscal second quarter increased 35% to $71 million from $52 million
for the comparable prior period. Puritan's Pride on-line sales
increased 58% for the fiscal second quarter and comprised 20% of
all direct response sales for this fiscal second quarter. The
increase in sales reflects the Company's ability to more
effectively target market its customer base. During this fiscal
quarter, the Company shipped 63,000 more orders than in the prior
like quarter, and average order size increased $14 to $79 from $65.
NBTY remains the leader in the direct response and e-commerce
sector and continues to increase the number of products available
via its catalog and websites. NBTY Chairman and CEO, Scott Rudolph,
said: "We are very pleased to report a second consecutive quarter
of record results and sales increases across all divisions. The
successful integration of Rexall continues to contribute to our
overall revenue growth and lends further credence to our strategic
plan to enhance wholesale operations and further our position as
the dominant force in the worldwide nutritional supplement market.
We anticipate continued growth in revenue and market share and
remain confident in the long-term outlook for NBTY." ABOUT NBTY
NBTY is a leading vertically integrated manufacturer and
distributor of a broad line of high-quality, value-priced
nutritional supplements in the United States and throughout the
world. The Company markets approximately 1,500 products under
several brands, including Nature's Bounty(R), Vitamin World(R),
Puritan's Pride(R), Holland & Barrett(R), Rexall(R),
Sundown(R), MET-Rx(R), WORLDWIDE Sport Nutrition(R), American
Health(R), GNC (UK)(R) and DeTuinen(R). This release refers to
non-GAAP financial measures, such as EBITDA. "EBITDA" is defined as
earnings before 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 EBITDA is relevant
and useful because EBITDA is a measurement industry analysts
utilize when evaluating NBTY's operating performance. Management
also believes 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. All of these forward-looking
statements, which can be identified by the use of terminology such
as "subject to," "believe," "expects," "may," "will," "should,"
"can," or "anticipates," or the negative thereof, or variations
thereon, or comparable terminology, or by discussions of strategy
which, although believed to be reasonable, 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 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 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; (xiv) exposure to and
expense of defending and resolving, product liability 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 on its retail locations;
(xix) 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;
(xxii) the efficacy of NBTY's Internet and on-line sales and
marketing; (xxiii) fluctuations in foreign currencies, including
the British Pound; (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 locations; (xxvi)
introduction of 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 the
Food Supplements Directive and the Traditional Herbal Medicinal
Products Directive in Europe; (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; and (xxx)
other factors beyond NBTY'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. NBTY, INC. and SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (Dollars and shares
in thousands, except per share amounts) For the three months ended
March 31, 2004 2003 Net sales $ 439,594 $277,824 Costs and
expenses: Cost of sales 213,248 124,679 Discontinued product charge
- 6,000 Catalog printing, postage and promotion 19,322 16,782
Selling, general and administrative 138,294 99,170 370,864 246,631
Income from operations 68,730 31,193 Other income (expense):
Interest (6,759) (3,774) Miscellaneous, net 540 2,274 (6,219)
(1,500) Income before income taxes 62,511 29,693 Provision for
income taxes 21,254 10,082 Net income $41,257 $ 19,611 Net income
per share: Basic $0.62 $0.30 Diluted $0.60 $0.29 Weighted average
common shares outstanding: Basic 66,730 66,261 Diluted 69,098
68,323 NBTY, INC. and SUBSIDIARIES CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (UNAUDITED) (Dollars and shares in thousands,
except per share amounts) For the six months ended March 31, 2004
2003 Net sales $824,647 $ 519,228 Costs and expenses: Cost of sales
406,134 231,359 Discontinued product charge -- 6,000 Catalog
printing, postage and promotion 39,459 30,637 Selling, general and
administrative 268,665 192,546 714,258 460,542 Income from
operations 110,389 58,686 Other income (expense): Interest (13,564)
(7,820) Miscellaneous, net 2,047 3,513 (11,517) (4,307) Income
before income taxes 98,872 54,379 Provision for income taxes 33,970
18,145 Net income $64,902 $36,234 Net income per share: Basic $0.97
$0.55 Diluted $0.94 $0.53 Weighted average common shares
outstanding: Basic 66,686 66,216 Diluted 68,997 68,205 SALES
(Thousands) (Unaudited) THREE MONTHS ENDED SIX MONTHS ENDED MARCH
31, MARCH 31, 2004 2003 % Increase 2004 2003 % Increase Wholesale
$189,425 $84,850 123% $368,620 $158,967 132% US Retail / Vitamin
World 56,100 53,556 5% 109,511 103,819 5% UK Retail / Holland &
Barrett / GNC 123,416 87,089 42% 240,466 169,702 42% Direct
Response / Puritan's Pride 70,653 52,329 35% 106,050 86,740 22%
Total $439,594 $277,824 58% $824,647 $519,228 59% GROSS PROFIT
PERCENTAGES (Unaudited) THREE MONTHS ENDED SIX MONTHS ENDED MARCH
31, MARCH 31, % Increase % Increase 2004 2003 (% Decrease) 2004
2003 (% Decrease) Wholesale 39% 41% -2% 38% 42% -4% US Retail /
Vitamin World 60% 59% 1% 60% 59% 1% European Retail / Holland &
Barrett / GNC 62% 63% -1% 61% 63% -2% Direct Response / Puritan's
Pride 61% 61% 0% 61% 62% -1% Total (without discontinued product
charge) 52% 55% -3% 51% 55% -4% Discontinued product charge 0% -2%
2% 0% -1% 1% Total 52% 53% -1% 51% 54% -3% Reconciliation of GAAP
Measures to Non-GAAP Measures (Thousands) (Unaudited) THREE MONTHS
ENDED MARCH 31, 2004 Pretax Income Depreciation Interest EBITDA
(Loss) and amortization Wholesale $40,999 $2,764 $-- $43,763 US
Retail / Vitamin World 1,193 3,027 4,220 European Retail / Holland
& Barrett / GNC 29,683 3,394 33,077 Direct Response / Puritan's
Pride 23,418 1,393 24,811 Segment Results 95,293 10,578 105,871
Corporate (32,782) 5,501 6,759 (20,522) Total $62,511 $16,079
$6,759 $85,349 THREE MONTHS ENDED MARCH 31, 2003 Pretax Income
Depreciation Interest EBITDA (Loss) and amortization Wholesale
$17,950 $242 $-- $18,192 US Retail / Vitamin World 1,093 3,000
4,093 European Retail / Holland & Barrett / GNC 23,069 2,373
25,442 Direct Response / Puritan's Pride 13,958 1,601 15,559
Segment Results 56,070 7,216 63,286 Corporate (26,377) 3,981 3,774
(18,622) Total $29,693 $11,197 $3,774 $44,664 Reconciliation of
GAAP Measures to Non-GAAP Measures (Thousands) (Unaudited) SIX
MONTHS ENDED MARCH 31, 2004 Pretax Income Depreciation Interest
EBITDA (Loss) and amortization Wholesale $71,007 $5,442 $-- $76,449
US Retail / Vitamin World 1,389 6,186 7,575 European Retail /
Holland & Barrett / GNC 55,982 5,900 61,882 Direct Response /
Puritan's Pride 32,686 2,808 35,494 Segment Results 161,064 20,336
181,400 Corporate (62,192) 10,922 13,564 (37,706) Total $98,872
$31,258 $13,564 $143,694 SIX MONTHS ENDED MARCH 31, 2003 Pretax
Income Depreciation Interest EBITDA (Loss) and amortization
Wholesale $32,154 $452 $-- $32,606 US Retail / Vitamin World (562)
5,936 5,374 European Retail / Holland & Barrett / GNC 45,361
4,538 49,899 Direct Response / Puritan's Pride 24,972 2,938 27,910
Segment Results 101,925 13,864 115,789 Corporate (47,546) 7,888
7,820 (31,838) Total $54,379 $21,752 $7,820 $83,951 NBTY, INC. and
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
ASSETS (Dollars and shares in thousands) March 31, September 30,
2004 2003 Current assets: Cash and cash equivalents $ 54,709 $
49,349 Investments in bonds -- 4,158 Accounts receivable, less
allowance for doubtful accounts of $8,077 at March 31, 2004 and
$7,100 at September 30, 2003 93,128 80,829 Inventories 308,610
314,091 Deferred income taxes 37,021 37,021 Prepaid expenses and
other current assets 31,902 44,736 Total current assets 525,370
530,184 Property, plant and equipment, net 298,806 298, 344
Goodwill 212,722 213,362 Intangible assets, net 141,489 137,469
Other assets 17,631 16,423 Total assets $1,196,018 $1,195,782 NBTY,
INC. and SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED) LIABILITIES AND STOCKHOLDERS' EQUITY (Dollars and
shares in thousands) March 31, September 30, 2004 2003 Current
liabilities: Current portion of long-term debt and capital lease
obligations $ 2,834 $ 12,841 Accounts payable 87,412 87,039 Accrued
expenses and other current liabilities 124,994 116,029 Total
current liabilities 215,240 215,909 Long-term debt 326,030 413,989
Deferred income taxes 40,005 40,213 Other liabilities 5,391 10,872
Total liabilities 586,666 680,983 Commitments and contingencies
Stockholders' equity: Common stock, $0.008 par; authorized 175,000
shares; issued and outstanding 66,735 shares at March 31, 2004 and
66,620 shares at September 30, 2003 534 533 Capital in excess of
par 132,900 130,208 Retained earnings 434,355 369,453 567,789
500,194 Accumulated other comprehensive income 41,563 14,605 Total
stockholders' equity 609,352 514,799 Total liabilities and
stockholders' equity $1,196,018 $1,195,782 NBTY, INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED) (Dollars in thousands) For the six months ended March
31, 2004 2003 Cash flows from operating activities: Net income
64,902 36,234 Adjustments to reconcile net income to net cash
provided by operating activities: Loss/(Gain) on sale/disposal of
property, plant and equipment 492 (962) Depreciation and
amortization 31,258 21,752 Foreign currency exchange rate gain
(240) (906) Amortization of deferred financing costs 1,812 394
Amortization of bond discount 62 62 Allowance for doubtful accounts
977 98 Compensation expense for ESOP 2,473 855 Tax benefit from
exercise of stock options 132 113 Changes in assets and
liabilities: Accounts receivable (12,417) (4,436) Inventories 9,905
(6,877) Prepaid expenses and other current assets 16,444 (7,251)
Other assets 367 59 Accounts payable (3,597) 7,426 Accrued expenses
and other liabilities 1,286 120 Net cash provided by operating
activities 113,856 46,681 Cash flows from investing activities:
Purchase of property, plant -and equipment (21,916) (17,686)
Proceeds from sale of property, plant, and equipment 83 1,293
Proceeds from sale of investment in bonds 4,158 -- Cash paid for
acquisitions, net of cash acquired -- (14,786) Release of cash held
in escrow -- 2,403 Net cash used in investing activities (17,675)
(28,776) Cash flows from financing activities: Principal payments
under long-term debt agreements and capital leases (98,027)
(11,616) Payments for debt issuance costs (500) -- Proceeds from
stock options exercised 88 176 Net cash used in financing
activities (98,439) (11,440) Effect of exchange rate changes on
cash and cash equivalents 7,618 1,080 Net increase in cash and cash
equivalents 5,360 7,545 Cash and cash equivalents at beginning of
period 49,349 26,229 Cash and cash equivalents at end of period
54,709 33,774 Supplemental disclosure of cash flow information:
Cash paid during the period for interest $11,798 $8,218 Cash paid
during the period for income taxes $16,780 $15,480 DATASOURCE:
NBTY, Inc. CONTACT: Harvey Kamil, President and Chief Financial
Officer of NBTY, Inc., +1-631-244-2020; or Carl Hymans of G.S.
Schwartz & Co., +1-212-725-4500, or , for NBTY, Inc. Web site:
http://www.nbty.com/
Copyright
Grafico Azioni N B T Y (NYSE:NTY)
Storico
Da Set 2024 a Ott 2024
Grafico Azioni N B T Y (NYSE:NTY)
Storico
Da Ott 2023 a Ott 2024