RONKONKOMA, N.Y., July 28 /PRNewswire-FirstCall/ -- NBTY, Inc.
(NYSE: NTY) (www.NBTY.com), a leading global manufacturer and
marketer of nutritional supplements, today announced results for
the fiscal third quarter and nine months ended June 30, 2010.
For the fiscal third quarter ended June
30, 2010, net sales were $696
million, compared to $652
million for the fiscal third quarter ended June 30, 2009, an increase of $44 million or 7%. Net income for the
fiscal third quarter ended June 30,
2010 was $66 million, or
$1.03 per diluted share, compared to
net income of $46 million, or
$0.73 per diluted share, for the
fiscal third quarter ended June 30,
2009.
Net income for the fiscal third quarter of 2010 reflects greater
sales and overall higher gross profits. The overall gross
profit percentage for the fiscal third quarter of 2010 increased 3%
to 48% from 45% for the fiscal third quarter of 2009. Net
income for the fiscal third quarter of 2009 includes an aggregate
after-tax impact of $0.17 per diluted
share for certain non-recurring expenses.
Net income for the fiscal third quarter of 2010 benefited from
the Company’s increased television advertising in the second fiscal
quarter to support its Nature’s Bounty, Osteo Bi Flex, Ester C and
Pure Protein brands. The Company expects its branded sales for the
remainder of fiscal 2010 to benefit from the additional
advertising.
Adjusted EBITDA for the fiscal third quarter of 2010 was
$125 million, compared to
$109 million for the fiscal third
quarter of 2009. The Company’s balance sheet continues to be
strong and well capitalized. During the first nine months of
fiscal 2010, the Company repaid $43
million of its long term debt. At June 30, 2010, the Company’s working capital was
$831 million, which included
$294 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 nine months ended June 30,
2010, net sales were $2.2
billion compared to $1.9
billion for the nine months ended June 30, 2009, an increase of $244 million or 13%. Net income for the
nine months ended June 30, 2010, was
$188 million, or $2.94 per diluted share, compared to net income
of $82 million, or $1.31 per diluted share, for the nine months
ended June 30, 2009.
Adjusted EBITDA for the nine months ended June 30, 2010 was $372
million, compared to $225
million for the nine months ended June 30, 2009.
OPERATIONS FOR THE FISCAL THIRD QUARTER ENDED JUNE 30, 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 $38
million, or 10%, to $435
million. Overall gross profit for the Wholesale/US
Nutrition division was 39% for the fiscal third quarter of 2010,
compared with 33% for the fiscal third quarter of 2009, a 6%
increase. NBTY’s branded products, which have higher gross
profit margins than the Company’s private label products, continued
to represent a larger part of the wholesale business. Private
label sales, which have lower gross profits, accounted for 36% of
wholesale sales in the fiscal third quarter of 2010.
Pressure from competition in the private label business
continued in this fiscal quarter, but was offset in part, by
increased branded sales and improved supply chain management.
We anticipate continued competitive pressures in private
label for the remainder of this fiscal year.
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
July 3, 2010, Nielsen reported an
increase in the entire category of 9.8%. According to
Nielsen, for that same period, the Company’s Wholesale brands
increased 20.8%.
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 $53
million, a 3% increase from the prior like quarter.
Same store sales were also up 2% for the fiscal third quarter of
2010. The modernization of the Vitamin World stores has
continued.
During the fiscal third quarter of 2010, the North American
Retail division opened 5 new stores and closed 2 stores. At
the end of the fiscal third quarter of 2010, the North American
Retail division operated a total of 534 stores, consisting of 451
Vitamin World stores in the United
States and 83 LeNaturiste stores in Canada.
European Retail net sales for the fiscal third quarter ended
June 30, 2010 were $152 million, a 1% increase compared to
$151 million for the prior like
quarter. In local currency (British Pound Sterling),
European Retail net sales increased 5% and same store sales
increased 1%. The Company has continued to integrate the
Julian Graves operations into its European Retail Division. During
this fiscal quarter, 24 Julian Graves stores were converted into
Holland & Barrett or GNC
stores.
The European Retail division continues to leverage its premier
status, high street locations and brand awareness to generate these
results. At June 30, 2010, the
European Retail division consisted of 586 Holland & Barrett
stores, 296 Julian Graves stores and 43 GNC stores in the UK, 29
Nature’s Way stores in Ireland,
and 88 DeTuinen stores in the
Netherlands, for a total of 1,042 stores in Europe and 8 Holland & Barrett franchised
stores in South Africa,
Singapore and Malta.
Net sales from Direct Response/E-Commerce operations for the
fiscal third quarter of 2010 increased 7% to $57 million from $53
million for the fiscal third 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 56% of total sales for the fiscal third quarter of 2010,
compared with 51% for the prior comparable quarter.
NBTY Chairman and CEO, Scott
Rudolph, said: “We are pleased to report another quarter of
strong sales growth and overall gross profit improvement. We
are furthering our initiatives to increase sales, and improve
supply chain management as part of our strategic efforts to meet
the challenge of the competitive nature of the business. We
are confident of our ability to maintain global leadership in the
nutritional supplement industry.”
ABOUT NBTY, INC.
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 22,000 products, including products marketed by the Company’s
Nature's Bounty® (www.NaturesBounty.com), Vitamin World®
(www.VitaminWorld.com), Puritan's Pride® (www.Puritan.com),
Holland & Barrett®
(www.HollandAndBarrett.com), Rexall® (www.Rexall.com), Sundown®
(www.SundownNutrition.com), MET-Rx® (www.MetRX.com), Worldwide
Sport Nutrition® (www.SportNutrition.com), American Health®
(www.AmericanHealthUS.com), GNC (UK)® (www.GNC.co.uk), DeTuinen®
(www.DeTuinen.nl), LeNaturiste™ (www.LeNaturiste.com), SISU®
(www.SISU.com), Solgar® (www.Solgar.com), Good 'n' Natural®
(www.goodnnatural.com), Home Health™ (www.homehealthus.com), Julian
Graves, Ester-C® (www.Ester-C.com) and Natural Wealth
(www.naturalwealth.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.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the Merger, the Company will prepare a proxy
statement to be filed with the SEC. When completed, a
definitive proxy statement and a form of proxy will be mailed to
the stockholders of the Company. BEFORE MAKING ANY VOTING
DECISION, THE COMPANY’S STOCKHOLDERS ARE URGED TO READ THE PROXY
STATEMENT REGARDING THE MERGER CAREFULLY AND IN ITS ENTIRETY
BECAUSE IT WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED
MERGER. The Company’s stockholders will be able to obtain,
without charge, a copy of the proxy statement (when available) and
other relevant documents filed with the SEC from the SEC’s website
at http://www.sec.gov. The Company’s stockholders will also
be able to obtain, without charge, a copy of the proxy statement
and other relevant documents (when available) by directing a
request by mail or telephone to NBTY, Inc, Attn: General Counsel,
2100 Smithtown Avenue, Ronkonkoma, New
York 11779, telephone: (631) 567-9500, or from the Company’s
website, http://www.nbty.com.
PARTICIPANTS IN SOLICITATION
The Company and its directors and officers may be deemed to be
participants in the solicitation of proxies from the Company’s
stockholders with respect to the Merger. Information about
the Company’s directors and executive officers and their ownership
of the Company’s common stock is set forth in the proxy statement
for the Company’s 2010 Annual Meeting of Stockholders, which was
filed with the SEC on January 15,
2010. Stockholders may obtain additional information
regarding the interests of the Company and its directors and
executive officers in the Merger, which may be different than those
of the Company’s stockholders generally, by reading the proxy
statement and other relevant documents regarding the Merger, when
filed with the SEC.
(TABLES FOLLOW)
|
|
NBTY, INC.
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
|
|
(UNAUDITED)
|
|
(In thousands, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
Three months
|
|
|
ended June 30,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Net sales
|
$
695,856
|
|
$
651,707
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Cost of
sales
|
363,355
|
|
359,240
|
|
Advertising, promotion
and catalog
|
37,003
|
|
23,570
|
|
Selling, general and
administrative
|
192,118
|
|
182,618
|
|
IT project termination
costs
|
-
|
|
10,127
|
|
|
592,476
|
|
575,555
|
|
|
|
|
|
|
Income from
operations
|
103,380
|
|
76,152
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
Interest
|
(7,312)
|
|
(8,402)
|
|
Miscellaneous,
net
|
68
|
|
3,396
|
|
|
(7,244)
|
|
(5,006)
|
|
|
|
|
|
|
Income before provision for
income taxes
|
96,136
|
|
71,146
|
|
|
|
|
|
|
Provision for income
taxes
|
29,953
|
|
25,229
|
|
|
|
|
|
|
Net income
|
$
66,183
|
|
$
45,917
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
Basic
|
$1.04
|
|
$0.74
|
|
Diluted
|
$1.03
|
|
$0.73
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
Basic
|
63,378
|
|
61,796
|
|
Diluted
|
64,139
|
|
63,264
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NBTY, INC.
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
|
|
(UNAUDITED)
|
|
(In thousands, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
Nine months
|
|
|
ended June 30,
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
Net sales
|
$
2,152,167
|
|
$
1,907,813
|
|
|
|
|
|
|
Costs and
expenses:
|
|
|
|
|
Cost of
sales
|
1,155,470
|
|
1,091,386
|
|
Advertising, promotion
and catalog
|
116,682
|
|
87,889
|
|
Selling, general and
administrative
|
575,443
|
|
553,177
|
|
IT project termination
costs
|
-
|
|
18,774
|
|
|
1,847,595
|
|
1,751,226
|
|
|
|
|
|
|
Income from
operations
|
304,572
|
|
156,587
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
Interest
|
(22,984)
|
|
(26,780)
|
|
Miscellaneous,
net
|
2,613
|
|
(1,959)
|
|
|
(20,371)
|
|
(28,739)
|
|
|
|
|
|
|
Income before provision for
income taxes
|
284,201
|
|
127,848
|
|
|
|
|
|
|
Provision for income
taxes
|
95,776
|
|
45,386
|
|
|
|
|
|
|
Net income
|
$
188,425
|
|
$
82,462
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
Basic
|
$2.99
|
|
$1.34
|
|
Diluted
|
$2.94
|
|
$1.31
|
|
|
|
|
|
|
Weighted average common shares
outstanding:
|
|
|
|
Basic
|
63,014
|
|
61,665
|
|
Diluted
|
64,087
|
|
63,124
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
|
(Unaudited)
|
|
|
THREE MONTHS ENDED
|
|
|
JUNE 30,
|
|
|
|
|
|
|
|
|
|
Percentage
|
|
(In thousands)
|
2010
|
2009
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale / US
Nutrition
|
$
434,592
|
$
396,162
|
10%
|
|
|
|
|
|
|
North American Retail
|
52,543
|
51,223
|
3%
|
|
|
|
|
|
|
European Retail
|
152,051
|
151,293
|
1%
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
56,670
|
53,029
|
7%
|
|
|
|
|
|
|
Total
|
$
695,856
|
$
651,707
|
7%
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
PERCENTAGES
|
|
|
(Unaudited)
|
|
|
THREE MONTHS ENDED
|
|
|
JUNE 30,
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
2010
|
2009
|
- Decrease
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale / US
Nutrition
|
39%
|
33%
|
6%
|
|
|
|
|
|
|
North American Retail
|
67%
|
67%
|
0%
|
|
|
|
|
|
|
European Retail
|
62%
|
61%
|
1%
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
63%
|
64%
|
-1%
|
|
|
|
|
|
|
Total
|
48%
|
45%
|
3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET SALES
|
|
|
(Unaudited)
|
|
|
NINE MONTHS ENDED
|
|
|
JUNE 30,
|
|
|
|
|
|
|
|
|
|
Percentage
|
|
(In thousands)
|
2010
|
2009
|
Change
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale / US
Nutrition
|
$
1,332,280
|
$
1,152,930
|
16%
|
|
|
|
|
|
|
North American Retail
|
158,770
|
151,577
|
5%
|
|
|
|
|
|
|
European Retail
|
487,059
|
441,757
|
10%
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
174,058
|
161,549
|
8%
|
|
|
|
|
|
|
Total
|
$
2,152,167
|
$
1,906,813
|
13%
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS PROFIT
|
|
|
PERCENTAGES
|
|
|
(Unaudited)
|
|
|
NINE MONTHS ENDED
|
|
|
JUNE 30,
|
|
|
|
|
|
|
|
|
|
Increase
|
|
|
2010
|
2009
|
- Decrease
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale / US
Nutrition
|
36%
|
29%
|
7%
|
|
|
|
|
|
|
North American Retail
|
67%
|
67%
|
0%
|
|
|
|
|
|
|
European Retail
|
62%
|
62%
|
0%
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
62%
|
62%
|
0%
|
|
|
|
|
|
|
Total
|
46%
|
43%
|
3%
|
|
|
|
|
|
|
|
ADJUSTED EBITDA**
|
|
Reconciliation of GAAP Measures
to Non-GAAP Measures
|
|
(Unaudited)
|
|
(In thousands)
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
JUNE 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax Income
(Loss)
|
Depreciation and
amortization
|
Interest
|
Non-cash
charges
|
Adjusted
EBITDA**
|
|
|
|
|
|
|
|
|
|
|
Wholesale / US
Nutrition
|
$
82,537
|
$
3,642
|
$
-
|
$
3,606
|
$
89,785
|
|
|
|
|
|
|
|
|
|
|
North American Retail
|
3,955
|
613
|
-
|
63
|
4,631
|
|
|
|
|
|
|
|
|
|
|
European Retail
|
20,401
|
3,316
|
-
|
148
|
23,865
|
|
|
|
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
15,440
|
1,143
|
-
|
15
|
16,598
|
|
|
|
|
|
|
|
|
|
|
Segment Results
|
122,333
|
8,714
|
-
|
3,832
|
134,879
|
|
|
|
|
|
|
|
|
|
|
Corporate /
Manufacturing
|
(26,197)
|
7,598
|
7,312
|
1,397
|
(9,890)
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
96,136
|
$
16,312
|
$
7,312
|
$
5,229
|
$
124,989
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
JUNE 30, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax Income
(Loss)
|
Depreciation and
amortization
|
Interest
|
Non-cash
charges
|
Adjusted
EBITDA**
|
|
|
|
|
|
|
|
|
|
|
Wholesale / US
Nutrition
|
$
61,905
|
$
3,681
|
$
-
|
$
24
|
$
65,610
|
|
|
|
|
|
|
|
|
|
|
North American Retail
|
(2,274)
|
758
|
-
|
5,560
|
4,044
|
|
|
|
|
|
|
|
|
|
|
European Retail
|
14,070
|
3,634
|
-
|
5,591
|
23,295
|
|
|
|
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
18,166
|
1,245
|
-
|
790
|
20,201
|
|
|
|
|
|
|
|
|
|
|
Segment Results
|
91,867
|
9,318
|
-
|
11,965
|
113,150
|
|
|
|
|
|
|
|
|
|
|
Corporate /
Manufacturing
|
(20,721)
|
7,486
|
8,402
|
832
|
(4,001)
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
71,146
|
$
16,804
|
$
8,402
|
$
12,797
|
$
109,149
|
|
|
|
|
|
|
|
|
|
|
** 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)
|
|
|
|
|
|
|
|
|
|
|
NINE MONTHS ENDED
|
|
|
JUNE 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax Income
(Loss)
|
Depreciation and
amortization
|
Interest
|
Non-cash
charges
|
Adjusted
EBITDA**
|
|
|
|
|
|
|
|
|
|
|
Wholesale / US
Nutrition
|
$
224,229
|
$
10,973
|
$
-
|
$
9,284
|
$
244,486
|
|
|
|
|
|
|
|
|
|
|
North American Retail
|
6,479
|
1,944
|
-
|
184
|
8,607
|
|
|
|
|
|
|
|
|
|
|
European Retail
|
80,924
|
10,400
|
-
|
474
|
91,798
|
|
|
|
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
49,841
|
3,555
|
-
|
57
|
53,453
|
|
|
|
|
|
|
|
|
|
|
Segment Results
|
361,473
|
26,872
|
-
|
9,999
|
398,344
|
|
|
|
|
|
|
|
|
|
|
Corporate /
Manufacturing
|
(77,272)
|
23,199
|
22,984
|
4,365
|
(26,724)
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
284,201
|
$
50,071
|
$
22,984
|
$
14,364
|
$
371,620
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NINE MONTHS ENDED
|
|
|
JUNE 30, 2009
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pretax Income
(Loss)
|
Depreciation and
amortization
|
Interest
|
Non-cash
charges
|
Adjusted
EBITDA**
|
|
|
|
|
|
|
|
|
|
|
Wholesale / US
Nutrition
|
$
110,968
|
$
10,991
|
$
-
|
$
(3)
|
$
121,956
|
|
|
|
|
|
|
|
|
|
|
North American Retail
|
(4,160)
|
2,255
|
-
|
5,607
|
3,702
|
|
|
|
|
|
|
|
|
|
|
European Retail
|
60,559
|
10,598
|
-
|
5,681
|
76,838
|
|
|
|
|
|
|
|
|
|
|
Direct Response /
E-Commerce
|
38,119
|
3,777
|
-
|
5,413
|
47,309
|
|
|
|
|
|
|
|
|
|
|
Segment Results
|
205,486
|
27,621
|
-
|
16,698
|
249,805
|
|
|
|
|
|
|
|
|
|
|
Corporate /
Manufacturing
|
(77,638)
|
23,983
|
26,780
|
1,836
|
(25,039)
|
|
|
|
|
|
|
|
|
|
|
Total
|
$
127,848
|
$
51,604
|
$
26,780
|
$
18,534
|
$
224,766
|
|
|
** 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 TITLES MEASURES REPORTED
BY
OTHER COMPANIES.
|
|
|
|
|
|
|
|
|
|
|
NBTY, Inc.
|
|
Condensed Consolidated Balance
Sheets
|
|
(Unaudited)
|
|
|
|
|
|
|
(In thousands, except per share
amounts)
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
September 30,
|
|
|
2010
|
|
2009
|
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
293,632
|
|
$
106,001
|
|
Accounts receivable,
net
|
146,233
|
|
155,863
|
|
Inventories
|
642,305
|
|
658,534
|
|
Deferred income
taxes
|
27,912
|
|
28,154
|
|
Other current
assets
|
51,369
|
|
49,999
|
|
Total current assets
|
1,161,451
|
|
998,551
|
|
|
|
|
|
|
Property, plant and equipment,
net
|
367,661
|
|
373,817
|
|
Goodwill
|
332,805
|
|
339,099
|
|
Intangible assets,
net
|
198,569
|
|
214,139
|
|
Other assets
|
19,304
|
|
34,615
|
|
|
|
|
|
|
Total
assets
|
$
2,079,790
|
|
$
1,960,221
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current portion of
long-term debt
|
$
70,791
|
|
$
38,893
|
|
Accounts
payable
|
105,737
|
|
128,485
|
|
Accrued expenses and
other current liabilities
|
154,120
|
|
156,734
|
|
Total
current liabilities
|
330,648
|
|
324,112
|
|
|
|
|
|
|
Long-term debt, net of current
portion
|
361,830
|
|
437,629
|
|
Deferred income
taxes
|
40,198
|
|
36,422
|
|
Other liabilities
|
33,906
|
|
34,233
|
|
Total
liabilities
|
766,582
|
|
832,396
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
|
|
Common stock, $0.008 par;
authorized 175,000 shares;
|
|
|
|
|
issued and
outstanding 63,411 and 61,874 shares
|
|
|
|
|
at June 30, 2010
and September 30, 2009, respectively
|
507
|
|
495
|
|
Capital in excess of
par
|
167,602
|
|
145,885
|
|
Retained
earnings
|
1,173,222
|
|
984,797
|
|
Accumulated other
comprehensive income
|
(28,123)
|
|
(3,352)
|
|
Total
stockholders' equity
|
1,313,208
|
|
1,127,825
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
2,079,790
|
|
$
1,960,221
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NBTY, INC.
|
|
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
(In
thousands)
|
|
|
|
|
|
Nine months
|
|
|
ended June 30,
|
|
|
2010
|
|
2009
|
|
Cash flows from operating
activities:
|
|
|
|
|
Net income
|
$
188,425
|
|
$
82,462
|
|
Adjustments to reconcile net
income to cash provided by
|
|
|
|
|
operating
activities:
|
|
|
|
|
Impairments and
disposals of assets
|
10,033
|
|
4,520
|
|
IT project
termination costs
|
-
|
|
16,521
|
|
Depreciation and
amortization
|
50,071
|
|
51,604
|
|
Foreign currency
transaction loss
|
1,312
|
|
5,113
|
|
Stock-based
compensation
|
5,308
|
|
2,013
|
|
Amortization of
deferred charges
|
1,093
|
|
951
|
|
Allowance for
doubtful accounts
|
1,977
|
|
(366)
|
|
Inventory
reserves
|
3,317
|
|
5,666
|
|
Deferred income
taxes
|
2,048
|
|
888
|
|
Excess income tax
benefit from exercise of stock options
|
(6,097)
|
|
(55)
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
Accounts
receivable
|
8,770
|
|
(11,129)
|
|
Inventories
|
6,445
|
|
(63,228)
|
|
Other
assets
|
12,036
|
|
9,162
|
|
Accounts
payable
|
(21,358)
|
|
(7,061)
|
|
Accrued
expenses and other liabilities
|
7,335
|
|
(8,915)
|
|
Net
cash provided by operating activities
|
270,715
|
|
88,146
|
|
|
|
|
|
|
Cash flows from investing
activities:
|
|
|
|
|
Purchase of property,
plant and equipment
|
(40,358)
|
|
(38,584)
|
|
Cash paid for
acquisitions
|
(11,875)
|
|
(264)
|
|
Proceeds from sale of
investments
|
2,000
|
|
-
|
|
Escrow refund, net of
purchase price adjustments
|
-
|
|
14,460
|
|
Net
cash used in investing activities
|
(50,233)
|
|
(24,388)
|
|
|
|
|
|
|
Cash flows from financing
activities:
|
|
|
|
|
Principal payments under
long-term debt agreements and capital leases
|
(42,992)
|
|
(25,176)
|
|
Proceeds from borrowings
under the Revolving Credit Facility
|
-
|
|
95,000
|
|
Principal payments under
the Revolving Credit Facility
|
-
|
|
(155,000)
|
|
Excess income tax benefit
from exercise of stock options
|
6,097
|
|
55
|
|
Proceeds from stock
options exercised
|
10,324
|
|
1,437
|
|
Net cash
used in financing activities
|
(26,571)
|
|
(83,684)
|
|
|
|
|
|
|
Effect of exchange rate changes
on cash and cash equivalents
|
(6,280)
|
|
(437)
|
|
|
|
|
|
|
Net increase (decrease) in cash
and cash equivalents
|
187,631
|
|
(20,363)
|
|
|
|
|
|
|
Cash and cash equivalents at
beginning of period
|
106,001
|
|
90,180
|
|
|
|
|
|
|
Cash and cash equivalents at end
of period
|
$
293,632
|
|
$
69,817
|
|
|
|
|
|
|
|
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
|
|
|
|
SOURCE NBTY, Inc.