The Hain Celestial Group Reports Third Quarter Results.
- Sales Grow to $136.9 Million -
The Hain Celestial Group The Hain Celestial Group is a food company whose main focus is natural and organic foods and personal care products. Their products range from herbal teas, offered through their Celestial Seasonings brand to organic free range chickens from the FreeBird brand. , the leading natural and organic food company, today announced that net sales Net Sales
The amount a seller receives from the buyer after costs associated with the sale are deducted.
This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the third quarter ended March 31, 2004 totaled $136.9 million, an increase of almost 6% over the same quarter of the prior year. Gross sales Gross Sales
A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. before deducting trade and other sales incentives increased 9% in the same period. Net income in the third quarter this year was $5.0 million, or $0.14 per share on a diluted di·lute
tr.v. di·lut·ed, di·lut·ing, di·lutes
1. To make thinner or less concentrated by adding a liquid such as water.
2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, as compared with $7.9 million, or $0.23 per share in the third quarter of the prior year.
Irwin D. Simon, Chairman, President and Chief Executive Officer of The Hain Celestial Group, said, "In the quarter, we had higher costs, a soup supply issue, and we took advantage of our investment opportunities behind the launch of CarbFit(R). These events, which impacted earnings, do not obscure the underlying health of our brands and business. The performance of our key brands and business this quarter demonstrates that we maintain and continue to improve our ability to meet the demand for natural and organic products. Importantly, most of our key brands posted positive sales gains. In the third quarter of this year we saw 21% growth in our Snacks business, 6% growth at Celestial Seasonings Celestial Seasonings is a tea company based in Boulder, Colorado, United States that specializes in herbal tea but also sells green and black tea (as well as white and oolong blends). They account for over $100,000,000 in Herbal Tea Blends Sales in the United States annually. , and 24% growth at Earth's Best. Our Canadian Business Canadian Business is the longest-publishing business magazine in Canada. It was founded in 1928 as The Commerce of the Nation, the organ of the Canadian Chamber of Commerce. The magazine was renamed Canadian Business in 1933. grew 24% while our European Business grew 36%. We have laid a strong foundation for CarbFit, a well-received brand that has quickly become one of America's leading brands serving the needs of today's carb-conscious consumer."
Mr. Simon concluded, "With the continuing increases in costs, the time it will take to rebuild our soup position despite having our co-packer issues resolved -- including securing opportunities to strategically invest in our soup business to ensure it is well positioned for next soup season -- and with our recently announced price adjustments not effective until July, we anticipate that our fourth quarter earnings this year will be in the range of $0.13 to $0.15 per share on revenues of $127 million to $130 million."
Hain Celestial's balance sheet continues to be strong. At the end of the third quarter, working capital totaled approximately $108.4 million with a current ratio of 2.4:1; debt to equity was 13.5%; and total equity reached $484.8 million.
Management will host a conference call to discuss its second quarter results at 9:00 a.m. EDT EDT
Eastern Daylight Time
EDT Eastern Daylight Time
EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York
EDT today, May 7, 2004. The call may be accessed through the Investor Relations Investor relations
The process by which the corporation communicates with its investors. section of the Hain Celestial ce·les·tial
1. Of or relating to the sky or the heavens: Planets are celestial bodies.
2. Of or relating to heaven; divine: celestial beings.
3. website at http://www.hain-celestial.com/. Please log in to the call at least fifteen minutes ahead of time to allow time for registration. A replay of the call will be available on the same section of the Hain Celestial website until June 7, 2004.
About The Hain Celestial Group
The Hain Celestial Group, headquartered in Melville, NY, is a natural, specialty and snack food company. The Company is a leader in 13 of the top 15 natural food categories, with such well-known natural food brands as Celestial Seasonings (R) teas, Walnut walnut, common name for some members of the Juglandaceae, a family of chiefly deciduous, resinous trees characterized by large and aromatic compound leaves. Species of the walnut family are indigenous mostly to the north temperate zone, but also range from Central Acres(R), Hain Pure Foods(R), Westbrae(R), Westsoy(R), Rice Dream(R), Soy Dream(R), Imagine(R), Arrowhead Mills(R), Health Valley(R), Breadshop's(R), Casbah(R), Garden of Eatin(R), Terra Chips(R), Yves Veggie Cuisine Cuisine (from French cuisine, "cooking; culinary art; kitchen"; ultimately from Latin coquere, "to cook") is a specific set of cooking traditions and practices, often associated with a specific culture. (R), The Good Dog(R), The Good Slice(R), DeBoles(R), Lima(R), Biomarche(R), Grains Noirs(R), Natumi(R), Milkfree(R), Earth's Best(R), and Nile Spice(R). The Company's principal specialty product lines include Hollywood(R) cooking oils, Estee(R) sugar-free products, Kineret(R) kosher foods
Kosher foods are those that conform to Jewish law. Invalidating characteristics may range from the presence of a mixture of meat and milk, to the use of produce from Israel that has not been tithed properly, or , Boston Better Snacks(R), and Alba alba /al·ba/ (al´bah) [L.] white.
See white matter.
[L.] white. Foods(R). The Hain Celestial Group's website can be found at http://www.hain-celestial.com/.
Statements made in this Press Release that are estimates of past or future performance are based on a number of factors, some of which are outside of the Company's control. Statements made in this Press Release that state the intentions, beliefs, expectations or predictions of The Hain Celestial Group and its management for the future are forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Information concerning factors that could cause actual results to differ materially from those in forward- looking statements is contained from time to time in filings of The Hain Celestial Group with the U.S. Securities and Exchange Commission. Copies of these filings may be obtained by contacting The Hain Celestial Group or the SEC.
THE HAIN CELESTIAL GROUP, INC. Consolidated Balance Sheets (In thousands) March 31, June 30, 2004 2003 (Unaudited) ASSETS Current assets: Cash and cash equivalents $21,101 $10,984 Trade receivables, net 70,731 61,215 Inventories 76,597 66,444 Recoverable income taxes 1,018 223 Deferred income taxes 3,171 3,171 Other current assets 10,422 7,671 Total current assets 183,040 149,708 Property, plant and equipment, net 73,992 68,665 Goodwill, net 309,288 296,508 Trademarks and other intangible assets, net 55,909 55,975 Other assets 9,022 10,692 Total assets $631,251 $581,548 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable and accrued expenses $53,921 $55,710 Income taxes payable 12,072 1,867 Current portion of long-term debt 8,648 8,807 Total current liabilities 74,641 66,384 Deferred income taxes 14,912 14,912 Long-term debt, less current portion 56,871 59,455 Total liabilities 146,424 140,751 Stockholders' equity: Common stock 369 348 Additional paid-in capital 385,632 364,877 Deferred compensation (3,043) - Retained earnings 101,017 79,089 Treasury stock (8,435) (8,156) Foreign currency translation adjustment 9,287 4,639 Total stockholders' equity 484,827 440,797 Total liabilities and stockholders' equity $631,251 $581,548 THE HAIN CELESTIAL GROUP, INC. Consolidated Statements of Operations (in thousands, except per share amounts) Three Months Ended Nine Months Ended March 31, March 31, 2004 2003 2004 2003 (Unaudited) (Unaudited) Net sales $136,862 $129,224 $406,707 $348,650 Cost of Sales 98,316 89,519 283,900 240,376 Gross profit 38,546 39,705 122,807 108,274 SG&A expenses 29,527 25,901 85,393 72,971 Restructuring charges - - - 440 Operating income 9,019 13,804 37,414 34,863 Interest expense and other expenses 932 1,184 2,073 1,560 Income before income taxes 8,087 12,620 35,341 33,303 Income tax provision 3,073 4,764 13,413 12,572 Net income $5,014 $7,856 $21,928 $20,731 Basic per share amounts $0.14 $0.23 $0.63 $0.61 Diluted per share amounts $0.14 $0.23 $0.61 $0.60 Weighted average common shares outstanding: Basic 35,694 34,081 34,943 33,853 Diluted 36,804 34,887 36,098 34,579 Contact: Ira Lamel, CFO Jeremy Fielding/David Lilly The Hain Celestial Group, Inc. Kekst and Company 631-730-2200 212-521-4800
CONTACT: Ira Lamel, CFO See Chief Financial Officer. of The Hain Celestial Group, Inc., +1-631-730-2200; Jeremy Fielding or David Lilly of Kekst and Company, +1-212-521-4800, both for The Hain Celestial Group, Inc.