The Hain Celestial Group (Nasdaq: HAIN), the leading natural and organic food company, yesterday announced that for the first quarter of fiscal 2002, ended September 30, 2001, revenues increased to $104.9 million, a 13.5 percent increase on a comparable basis over the first quarter of 2001. Net income for the quarter totaled $5.4 million, or $0.16 per share on a diluted basis. EBITDA in the quarter was $11 million.
Irwin D. Simon, Chairman, President and Chief Executive Officer of The Hain Celestial Group said, “The September 11 tragedy significantly disrupted our distribution network in the Northeast corridor, and caused delays in certain other areas, including the temporary closure of our Terra plant in Brooklyn. Difficulties arising from the terrorist attack adversely impacted our sales for the quarter by $5-7 million, which we believe affected our earnings by $0.03-0.04 per share.”
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Mr. Simon continued, “The direct impact of these events on our business should not obscure the strong, double-digit growth of many of our rocket brands this quarter. Terra, Health Valley, Garden of Eatin’ and Westsoy were all up double digits in either sales or units. Celestial Seasonings teas also reported solid growth of 8 percent. In October, our new Terra facility in Moonachie, New Jersey, began trial runs. After successful certification of the facility, today we began manufacturing product for shipment.”
Hain Celestial also announced today that it has signed a letter of intent to acquire Lima NV, a leading Belgian manufacturer and marketer of natural and organic foods, founded in 1957. Lima also distributes fresh organic produce to Belgian supermarkets from its Biomarche operations. In its current fiscal year, Lima’s and Biomarche’s combined revenues are expected to exceed $20 million. Terms of the transaction were not disclosed.
Mr. Simon commented, “The Lima acquisition is an important part of our European strategy. Lima’s infrastructure, products, and people will provide us with a solid base of operations in Europe to grow our product portfolio and capabilities there. Lima’s grain and rice products are a good fit with our Health Valley and Hain brands, and its soy-based beverages complement our Westsoy products. Through Biomarche, we will distribute to the fresh section of the mass-market for the first time, an important channel through which food is sold in Europe, where we will also be able to sell our fresh products from Yves and our refrigerated Westsoy products. I am particularly pleased that Lima’s Chairman, Philippe Woitrin, and its Chief Executive, Michel Calewaert, will join us to oversee our Belgian operations. These two seasoned executives are responsible for the growth of Lima and Biomarche, and will be excellent additions to our European team.”
Hain Celestial’s acquisition of Lima is subject to customary due diligence and other standard conditions as well as the signing of a definitive acquisition agreement. The transaction is scheduled to close by the end of December, and is expected to be accretive in the first full fiscal year following the acquisition.
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By GlobalDataAbout The Hain Celestial Group
The Hain Celestial Group, headquartered in Uniondale, 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, Hain Pure Foods®, Westbrae®, Westsoy®, Arrowhead Mills®, Health Valley®, Breadshop’s®, Casbah®, Garden of Eatin®, Terra Chips®, Yves Veggie Cuisine®, The Good Dog (R), The Good Slice®, DeBoles®, Earth’s Best®, and Nile Spice. The Company’s principal specialty product lines include Hollywood® cooking oils, Estee® sugar-free products, Weight Watchers® dry and refrigerated products, Kineret® kosher foods, Boston Better Snacks®, and Alba Foods®. 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 Statements of Operations
(in thousands, except per share amounts)
Three Months Ended September,
2001 2000
(Unaudited)
Net sales $ 104,866 $93,653
Cost of Sales 63,460 53,245
Gross profit 41,406 40,408
SG&A expenses 32,299 28,859
Merger costs — 1,032
Operating income 9,107 10,517
Interest expense (income), net 329 (526)
Income before income taxes 8,778 11,043
Income tax provision 3,335 4,638
Net income $5,443 $6,405
Basic per share amounts $0.16 $0.20
Diluted per share amounts $0.16 $0.19
Weighted average common shares outstanding:
Basic 33,665 32,095
Diluted 34,634 34,019
Supplemental Information EBITDA (Earnings
before interest, taxes, depreciation and
amortization) $ 10,992 $ 13,586
THE HAIN CELESTIAL GROUP, INC.
Consolidated Balance Sheets
(In thousands)
September 30, June 30,
2001 2001
ASSETS
Current assets:
Cash and cash equivalents $ 13,990 $ 26,643
Trade receivables, net 54,005 42,668
Inventories 52,595 49,593
Recoverable income taxes 4,800 8,232
Deferred income taxes 3,740 3,740
Other current assets 8,711 7,904
Total current assets 137,841 138,780
Property, plant and equipment, net 61,301 55,780
Goodwill, net 219,428 219,826
Trademarks and other intangible assets, net 38,261 38,230
Other assets 10,557 9,077
Total assets $ 467,388 $ 461,693
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 46,713 $ 43,587
Current portion of long-term debt 2,801 2,881
Total current liabilities 49,514 46,468
Deferred income taxes 7,854 7,854
Long-term debt, less current portion 10,483 10,718
Total liabilities 67,851 65,040
Stockholders’ equity:
Common stock 338 338
Additional paid-in capital 348,967 348,942
Retained earnings 54,068 48,626
Treasury stock (1,396) (275)
Foreign currency translation adjustment (2,440) (978)
Total stockholders’ equity 399,537 396,653
Total liabilities and stockholders’ equity $ 467,388 $ 461,693
