Performance Highlights
Fourth Quarter Fiscal Year 2013
- Record net sales of $463.5 million, a 32.1% increase
- GAAP earnings per diluted share of $0.53, a 6.0% increase
- Adjusted earnings per diluted share of $0.65, a 38.3% increase
- Adjusted EBITDA of $62.7 million, a 37.4% increase
Fiscal Year 2013
- Record net sales of $1,734.7 million, a 25.9% increase
- GAAP earnings per diluted share of $2.41, a 39.3% increase
- Adjusted earnings per diluted share of $2.53, a 34.6% increase
- Record Adjusted EBITDA of $235.8 million, a 31.7% increase
"With record net sales, the highest in the Company's history, we delivered a strong finish to the end of our fiscal year, and I am pleased with the results," said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial. "Our US business achieved outstanding sales along with improvements in other key performance measures. Hain Daniels delivered increased results as it transitioned to a growing, more profitable platform in the UK, which we believe is well-positioned for accelerated growth. Our Rest of World segment, which includes Canada and Continental Europe, also delivered solid results."
Fourth Quarter 2013
Worldwide net sales for the fourth quarter of fiscal year 2013 were a record $463.5 million, an increase of 32.1% compared to net sales of $350.8 million in the prior year fourth quarter. Hain Celestial US reported record net sales of $285.2 million, a 17.6% increase. In the United Kingdom, Hain Daniels' net sales were a record $121.1 million. The Rest of World segment reported net sales of $57.1 million. The Company had strong brand contribution across various sales channels led by double-digit growth from Earth's Best, MaraNatha, Spectrum, The Greek Gods, Linda McCartney, Danival, Alba Botanica and Jason. Net sales also included sales of brands acquired during fiscal year 2013 including Hartley's, Ella's Kitchen, BluePrint and Sun-Pat.
The Company earned income from continuing operations of $25.9 million compared to $35.7 million in the prior year fourth quarter and reported earnings per diluted share from continuing operations of $0.53 compared to $0.77 in the prior year fourth quarter. The prior year fourth quarter included the benefit of the reversal of contingent consideration in the amount of $15.5 million, or $0.33 per diluted share, from an earlier acquisition. Adjusted income from continuing operations was $31.7 million compared to $21.6 million, a 46.5% increase, and adjusted earnings per diluted share from continuing operations was $0.65 compared to $0.47 in the prior year fourth quarter. Adjusted amounts exclude a discrete tax benefit, acquisition-related expenses, integration and restructuring charges, factory start-up costs and unrealized currency gains.
Fiscal Year 2013
Worldwide net sales for fiscal year 2013 were a record $1,734.7 million, an increase of 25.9% compared to net sales of $1,378.2 million in the prior year. Hain Celestial US reported record net sales of $1,095.9 million, a 10.5% increase. In the United Kingdom, Hain Daniels' net sales were a record $420.4 million. The Rest of World segment net sales were $218.4 million. The Company had strong brand contribution across various sales channels led by double-digit growth from Earth's Best, MaraNatha, Spectrum, The Greek Gods, Garden of Eatin', Imagine Europe's Best, Linda McCartney, Westbrae, Hain Pure Foods, Alba Botanica and Jason. Net sales also included sales of brands acquired during fiscal year 2013 including Hartley's, Ella's Kitchen, BluePrint, Robertson's and Sun-Pat.
The Company earned income from continuing operations of $119.8 million compared to $94.2 million in the prior year and reported earnings per diluted share from continuing operations of $2.52 compared to $2.05 in the prior year. Adjusted income from continuing operations was $120.2 million compared to $86.2 million, a 39.5% increase, and adjusted earnings per diluted share from continuing operations was $2.53 compared to $1.88 in the prior year. Adjusted amounts exclude one-time tax items, acquisition-related expenses, integration and restructuring charges, factory start-up costs and a reserve for litigation. Adjusted EBITDA reached a new high of $235.8 million during the fiscal year ended June 30, 2013.
Fiscal Year 2013 Highlights
The Company highlighted several of its accomplishments during fiscal year 2013:
Completed three strategic acquisitions:
- The Ambient Grocery Brands from Premier Foods, including market leading Hartley's® jams and Sun-Pat® peanut butter, along with Gale's® honey and Robertson's® marmalade in the United Kingdom;
- BluePrint™ brand, a leader in cold-pressed juice and juice beverages in the United States;
- Ella's Kitchen® brand, a leader in premium organic baby food, sold principally in the United Kingdom, United States and Scandinavia;
- Divested non-core sandwich business and private label chilled ready meals operations in the United Kingdom;
- Eliminated certain unprofitable private label sales in the United Kingdom;
- Surpassed $1 billion in net sales in the United States;
- Drove global product innovation and introduced over 300 new products worldwide;
- Secured five-year agreement to provide an extensive range of desserts in the United Kingdom, which commenced shipping late in the fiscal year;
- Developed and implemented a strategic plan to restructure and integrate the operations in the United Kingdom;
- Constructed new or expanded facilities in the United States, United Kingdom and Europe in order to meet the increasing demand for the Company's products;
- Delivered in excess of $30 million in productivity savings;
- Secured expanded credit facility with multi-currency borrowing capability and lower interest rate margins;
- Achieved record adjusted EBITDA of $235.8 million; and
- Surpassed $1 billion in shareholders' equity reaching $1.2 billion at June 30, 2013
"Our business continues to benefit from strong growth trends across our organic and natural brand portfolio. As we approach the 20th anniversary of the Company, we are better positioned than ever before to execute on our strategic initiatives and capitalize on the tremendous opportunities in front of us," concluded Irwin Simon.
Fiscal Year 2014 Guidance
The Company provided annual guidance for fiscal year 2014.
- Total net sales range of $2.025 billion to $2.050 billion; an increase of approximately 17% as compared to fiscal year 2013.
- Earnings range of $2.95 to $3.05 per diluted share; an increase of 16% to 20% as compared to fiscal year 2013.
Guidance is provided for continuing operations on a non-GAAP basis and excludes acquisition-related expenses, integration and restructuring charges, factory start-up costs, unrealized currency losses, reserves for litigation settlements and non-recurring tax items that have been or may be incurred during the Company's fiscal year 2014, which the Company will continue to identify as it reports its future financial results. Guidance excludes the impact of any future acquisitions. Historically, the Company's sales and earnings are strongest in its second and third quarters.
Appointment of New Chief Financial Officer
The Company also announced in a separate press release the appointment of Stephen J. Smith as Executive Vice President and Chief Financial Officer, effective September 3, 2013. The planned retirement of Ira J. Lamel as Chief Financial Officer, effective August 31, 2013, was previously announced on September 5, 2012. The Company expects to continue working with Ira Lamel as Special Advisor to the Chief Executive Officer on various business development opportunities.
Segment Results
The Company's operations are organized into geographic segments: United States, United Kingdom and Rest of World (comprised of Canada and Continental Europe).
