SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
October 30, 2003
THE HAIN CELESTIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-22818 22-3240619
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
--------------------------------------------------------------------------------
58 South Service Road
Melville, New York 11747
------------------------------------------------------- ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (631) 730-2200
-2-
Item 12. Results of Operations and Financial Condition
On October 30, 2003, The Hain Celestial Group, Inc. announced its earnings
for its first fiscal year quarter ended September 30, 2003.
A copy of the related press release is attached as Exhibit 99.1.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE HAIN CELESTIAL GROUP, INC.
Dated: October 30, 2003 By: /s/ Ira J. Lamel
--------------------------------------
Name: Ira J. Lamel
Title: Executive Vice President and
Chief Financial Officer
EXHIBIT INDEX
Exhibit No. Description
----------- -----------
99.1 Press release dated October 30, 2003
Exhibit 99.1
THE HAIN CELESTIAL GROUP REPORTS STRONG
32% REVENUE GROWTH AND 36% EPS GROWTH
IN FIRST QUARTER
Net Income of $0.19 per share vs. $0.14 per share in Prior Year's Quarter
Revenue Grows 32% Over the Prior Year's Quarter to
Record First Quarter Revenue of $127.1 Million
MELVILLE, NY, October 30, 2003 -- The Hain Celestial Group (NASDAQ:HAIN), the
leading natural and organic food company, today announced strong results for the
Fiscal 2004 first quarter. Hain Celestial reported net income of $6.5 million,
or $0.19 per share in the first quarter this year, compared with net income of
$4.7 million, or $0.14 per share in the prior year's comparable quarter. Net
income per share grew 36% over the prior year's quarter. First quarter sales
grew 32% to $127.1 million, a first quarter record for the company, compared
with net sales of $96.4 million in the prior year period.
Operating income increased by 47% in the quarter to $11.3 million as compared to
$7.7 million in the prior year's quarter. The Company reported that gross
margins increased to 29.3% over the prior year's 28.8%. Further, selling,
general and administrative expenses were reduced to 20.3% of sales this year
versus 20.8% last year, even with increased advertising and marketing expenses,
reflecting the Company's ability to drive increased sales through its existing
infrastructure.
Irwin Simon, President and Chief Executive Officer, said, "We are very pleased
with our good performance this quarter. Our company-wide growth reflects our
success in capitalizing on increased consumer demand for natural and organic
products. We grew several key brands and businesses, including 6% growth at
Celestial Seasonings and 40% in our Melville businesses. Terra enjoyed renewed
growth, with sales increasing 13% in the quarter over the prior year. Our
business in Canada grew 23% during the quarter, and our business in Europe grew
59% in the quarter.
"We are particularly pleased that our businesses experienced strong growth both
internally and from brands acquired during the 2003 fiscal year. Our progress in
integrating Imagine, Walnut Acres, and Grains Noirs continues on track. As we
integrate acquired businesses, we are confident that we will continue to improve
our margins," said Mr. Simon.
The Company said that its previously announced "30 in 3" cost savings initiative
is underway, and that it expects initial savings from this program to begin in
the second half of the current fiscal year.
Mr. Simon continued, "At The Hain Celestial Group, we are proud to be in our
10th Anniversary Year, and we are even prouder to be Changing the Way the World
Eats. Today, over 60% of
adults and 13% of children in the United States are considered obese. Our
continued mission is to provide people with high quality natural and organic
products that adhere to stringent standards and have never included trans-fat or
hydrogenated oils, ingredients that can cause serious health issues."
Hain Celestial launched numerous new products this quarter that reflect this
approach. "In September, we were proud to be the first company to launch a full
line of all natural, low-carb products under our CarbFit(R) label, co-branded
with our popular Health Valley(R), Hain Pure Snax(R), and DeBole's(R) brands,"
said Mr. Simon. "Beginning this November, CarbFit(R) snacks will be coupled with
Michelob(R) ULTRA low carb beer in promotional displays at participating stores
nationwide. We also introduced Celestial Seasonings innovative TeaHouse Lattes
and Chais, Health Valley(R) Heartwise(TM), Enpower(TM) and Slender(TM) cereals,
Mini Cookies and Peanut Butter and Jelly Bars, and exciting new Terra Potato
Chip products. Our new Rice Dream Heartwise(TM) rice drink co-developed in our
new collaboration with Cargill will be launched in November."
Mr. Simon concluded, "As we look forward to the remainder of our Fiscal 2004, we
confirm our earlier earnings guidance for the full year of $0.95 -- $1.03 per
share, reflecting 20% to 30% earnings per share growth over Fiscal 2003's GAAP
earnings of $0.79 per share. As previously announced, we expect revenues of $540
- $565 million reflecting annual growth of 16% to 21% over Fiscal 2003's sales
of $466.5 million."
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 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(R), The Good Dog (R), The Good Slice(R), DeBoles(R), Lima(R),
Biomarche(R), Grains Noirs(R), Earth's Best(R), and Nile Spice. The Company's
principal specialty product lines include Hollywood(R) cooking oils, Estee(R)
sugar-free products, Kineret(R) kosher foods, Boston Better Snacks(R), and Alba
Foods(R). The Hain Celestial Group's website can be found at
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)
September 30, June 30,
-------------- ----------
2003 2003
-------------- ----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 12,879 $ 10,984
Trade receivables, net 74,895 61,215
Inventories 69,068 66,444
Recoverable income taxes 641 223
Deferred income taxes 3,171 3,171
Other current assets 7,019 7,671
-------------- ----------
Total current assets 167,673 149,708
Property, plant and equipment, net 67,425 68,665
Goodwill, net 298,971 296,508
Trademarks and other intangible assets, net 55,891 55,975
Other assets 10,393 10,692
-------------- ----------
Total assets $ 600,353 $ 581,548
============== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses $ 53,684 $ 55,710
Income taxes payable 4,312 1,867
Current portion of long-term debt 19,056 8,807
-------------- ----------
Total current liabilities 77,052 66,384
Deferred income taxes 14,912 14,912
Long-term debt, less current portion 59,227 59,455
-------------- ----------
Total liabilities 151,191 140,751
Stockholders' equity:
Common stock 349 348
Additional paid-in capital 365,464 364,877
Retained earnings 85,631 79,089
Treasury stock (8,435) (8,156)
Foreign currency translation adjustment 6,153 4,639
-------------- ----------
Total stockholders' equity 449,162 440,797
-------------- ----------
Total liabilities and stockholders' equity $ 600,353 $ 581,548
============== ==========
THE HAIN CELESTIAL GROUP, INC.
Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Ended September 30,
--------------------------------
2003 2002
-------------- ----------
(Unaudited)
Net sales $ 127,053 $ 96,420
Cost of Sales 89,891 68,622
-------------- ----------
Gross profit 37,162 27,798
SG&A expenses 25,819 20,095
-------------- ----------
Operating income 11,343 7,703
Interest expense and other expenses 791 170
-------------- ----------
Income before income taxes 10,552 7,533
Income tax provision 4,010 2,844
-------------- ----------
Net income $ 6,542 $ 4,689
============== ==========
Basic per share amounts $ 0.19 $ 0.14
============== ==========
Diluted per share amounts $ 0.19 $ 0.14
============== ==========
Weighted average common shares outstanding:
Basic 34,221 33,702
============== ==========
Diluted 35,356 34,382
============== ==========