Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact: | Harvey Kamil |
| Carl Hymans |
| NBTY, Inc. |
| G.S. Schwartz & Co. |
| President and |
| 212-725-4500 |
| Chief Financial Officer |
| carlh@schwartz.com |
| 631-200-2020 |
|
|
NBTY REPORTS SECOND QUARTER RESULTS
BOHEMIA, N.Y. – April 26, 2005 - NBTY, Inc. (NYSE: NTY) (www.NBTY.com), a leading global manufacturer and marketer of nutritional supplements, today announced results for the fiscal second quarter ended March 31, 2005.
For the fiscal second quarter ended March 31, 2005, sales increased to $443 million compared to sales of $440 million for the fiscal second quarter ended March 31, 2004. Net income for the fiscal second quarter ended March 31, 2005 was $21 million, or $0.30 per diluted share, compared to $41 million, or $0.60 per diluted share for the fiscal second quarter ended March 31, 2004.
At March 31, 2005, NBTY’s total assets were $1.3 billion and working capital was $412 million. The Company increased inventory by $52 million for the fiscal second quarter of 2005. Approximately 75% of this increase was to ensure supply of scarce ingredients for the Company’s joint care products, including Osteo Bi-Flex, Flex-a-min and Knox NutraJoint, with the balance of the increase representing inventories built to ensure adequate raw material supplies for other popular items in short supply.
Results for the fiscal second quarter of 2005 were affected by certain factors including an increase in raw material costs not passed on to customers. In addition, results were also adversely impacted by a $15 million increase in advertising costs, representing a 79% increase over the prior like period. The Company undertook this initiative to build brand awareness and to retain market share in a difficult environment. The Company expects no change in its advertising strategy in the near future. The industry has continued to be highly competitive, and the Company’s strategy is to increase its market share in this overall weak period.
For the first six months of fiscal 2005, sales increased 5% to $863 million compared to $825 for the first six months of fiscal 2004. Net income for the first six months of fiscal 2005 was $51 million, or $0.73 per diluted share, compared to $65 million, or $0.94 per diluted share, for the first six months of fiscal 2004.
OPERATIONS FOR THE FISCAL SECOND QUARTER ENDED MARCH 31, 2005
During fiscal second quarter of 2005, sales for the US Nutrition wholesale division, which markets Nature’s Bounty and Sundown brands, decreased 4% to $183 million from $189 million for the comparable prior period of fiscal 2004. The decrease is due primarily to negative publicity surrounding Vitamin E and a contraction in the market for low carb related products.
US Nutrition continues to provide its mass market customers with consumer sales and preference data generated by the Company’s Vitamin World retail stores and Puritan’s Pride direct response/e-commerce operations.
On February 25, 2005, NBTY expanded its retail presence into Canada with a $5 million acquisition of Le Naturiste Jean-Marc Brunet, a chain of 103 stores located throughout Quebec. Le Naturiste is a premier retail establishment in business for more than 35 years. This acquisition generated sales of approximately $2 million. Following this acquisition, NBTY now refers to its US Retail Division as North American Retail.
North American Retail/Vitamin World division sales remain unchanged from the prior like period at $56 million. North American Retail operations reported a pre-tax loss of $5 million during this quarter. EBITDA (as defined in non-GAAP financial measures below) was also negative at $3 million for the fiscal second quarter of 2005, compared to a positive EBITDA of $4 million for the fiscal second quarter of 2004. Same store sales decreased 5% during this quarter. Vitamin World opened 4 new stores, closed 7 stores and at the end of the quarter operated 557 stores nationwide.
NBTY’s European Retail sales for the fiscal second quarter increased 19% to $147 million from $123 million for the fiscal second quarter a year ago. The European Retail same store sales for the fiscal second quarter 2005 increased 15% (12% in local currency). The European Retail division continues to leverage its premier status, high street locations and brand awareness to achieve these results. The European Retail divisions’ increased sales include sales generated by 37 GNC stores in the UK and 67 DeTuinen stores in the Netherlands. During the fiscal second quarter, the European Retail division opened 5 new stores, closed 3 stores and at the end of the quarter operated a total of 605 stores.
Revenues from Direct Response/Puritan’s Pride operations for the fiscal second quarter decreased 19% to $57 million from $71 million for the comparable prior period. This decrease reflects the stagnant market for nutritional supplements, negative news on Vitamin E and Puritan’s Pride’s substantial reduction in pricing. The Company adopted this aggressive pricing strategy to maintain its customer base and to put pressure on competition. On-line sales accounted for 28% of sales for the fiscal second quarter of 2005. NBTY remains the leader in the direct response and e-commerce sector and continues to increase the number of products available via its catalog and web sites.
NBTY Chairman and CEO, Scott Rudolph, said: “Although the industry, as a whole, continues to struggle in this environment, we believe our financial strength positions us not only to ride out the current market, but to capitalize on the opportunities this market presents. We will continue to maintain an aggressive posture to increase market share in a difficult and highly competitive marketplace. We remain confident in the long-term outlook for the Company and anticipate continued long term growth in revenue and market share for NBTY.”
ABOUT NBTY
NBTY is a leading vertically integrated manufacturer and distributor of a broad line of high-quality, value-priced nutritional supplements in the United States and throughout the world. The Company markets approximately 2,000 products under several brands, including Nature’s Bountyâ, Vitamin Worldâ, Puritan’s Prideâ, Holland & Barrettâ, Rexallâ, Sundownâ, MET-Rx®, WORLDWIDE Sport Nutrition®, Am erican Healthâ, GNC (UK)â, DeTuinen® and Le Naturisteä.
This release refers to non-GAAP financial measures, such as EBITDA. “EBITDA” is defined as earnings before 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 EBITDA is relevant and useful because EBITDA is a measurement industry analysts utilize when evaluating NBTY’s operating performance. Management also believes 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. All of these forward-looking statements, which 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 which, although believed to be reasonable, 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 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 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) 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; (xxiii) fluctuations in foreign currencies, including the British Pound; (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 locations; (xxvi) introduction of 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 proposed Good Manufacturing Practices in the United States and the Food Supplements Directive and Traditional Herbal Medicinal Products Directive in Europe; (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 gasoline 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; and (xxxiii) 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.
-Tables Follow-
NBTY, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(Dollars and shares in thousands, except per share amounts)
|
| For the three months |
| ||||
|
| 2005 |
| 2004 |
| ||
|
|
|
|
|
| ||
Net sales |
| $ | 442,714 |
| $ | 439,594 |
|
|
|
|
|
|
| ||
Costs and expenses: |
|
|
|
|
| ||
Cost of sales |
| 226,081 |
| 213,248 |
| ||
Catalog printing, postage and promotion |
| 34,515 |
| 19,322 |
| ||
Selling, general and administrative |
| 144,634 |
| 138,294 |
| ||
|
|
|
|
|
| ||
|
| 405,230 |
| 370,864 |
| ||
|
|
|
|
|
| ||
Income from operations |
| 37,484 |
| 68,730 |
| ||
|
|
|
|
|
| ||
Other income (expense): |
|
|
|
|
| ||
Interest |
| (5,881 | ) | (6,759 | ) | ||
Miscellaneous, net |
| 110 |
| 540 |
| ||
|
| (5,771 | ) | (6,219 | ) | ||
|
|
|
|
|
| ||
Income before provision for income taxes |
| 31,713 |
| 62,511 |
| ||
|
|
|
|
|
| ||
Provision for income taxes |
| 10,846 |
| 21,254 |
| ||
|
|
|
|
|
| ||
Net income |
| $ | 20,867 |
| $ | 41,257 |
|
|
|
|
|
|
| ||
|
|
|
|
|
| ||
|
|
|
|
|
| ||
Net income per share: |
|
|
|
|
| ||
Basic |
| $ | 0.31 |
| $ | 0.62 |
|
Diluted |
| $ | 0.30 |
| $ | 0.60 |
|
|
|
|
|
|
| ||
Weighted average common shares outstanding: |
|
|
|
|
| ||
Basic |
| 67,290 |
| 66,730 |
| ||
Diluted |
| 69,291 |
| 69,098 |
|
|
| For the six months |
| ||||
|
| 2005 |
| 2004 |
| ||
|
|
|
|
|
| ||
Net sales |
| $ | 862,983 |
| $ | 824,647 |
|
|
|
|
|
|
| ||
Costs and expenses: |
|
|
|
|
| ||
Cost of sales |
| 438,034 |
| 406,134 |
| ||
Catalog printing, postage and promotion |
| 55,298 |
| 39,459 |
| ||
Selling, general and administrative |
| 283,036 |
| 268,665 |
| ||
|
|
|
|
|
| ||
|
| 776,368 |
| 714,258 |
| ||
|
|
|
|
|
| ||
Income from operations |
| 86,615 |
| 110,389 |
| ||
|
|
|
|
|
| ||
Other income (expense): |
|
|
|
|
| ||
Interest |
| (11,573 | ) | (13,564 | ) | ||
Miscellaneous, net |
| 2,101 |
| 2,047 |
| ||
|
| (9,472 | ) | (11,517 | ) | ||
|
|
|
|
|
| ||
Income before provision for income taxes |
| 77,143 |
| 98,872 |
| ||
|
|
|
|
|
| ||
Provision for income taxes |
| 26,383 |
| 33,970 |
| ||
|
|
|
|
|
| ||
Net income |
| $ | 50,760 |
| $ | 64,902 |
|
|
|
|
|
|
| ||
Net income per share: |
|
|
|
|
| ||
Basic |
| $ | 0.76 |
| $ | 0.97 |
|
Diluted |
| $ | 0.73 |
| $ | 0.94 |
|
|
|
|
|
|
| ||
Weighted average common shares outstanding: |
|
|
|
|
| ||
Basic |
| 67,130 |
| 66,686 |
| ||
Diluted |
| 69,137 |
| 68,997 |
|
|
| SALES |
| |||||||||||||||||
|
| (Thousands) |
| |||||||||||||||||
|
| THREE MONTHS ENDED |
| SIX MONTHS ENDED |
| |||||||||||||||
|
|
|
|
|
| (% Decrease) |
|
|
|
|
| (% Decrease) |
| |||||||
|
| 2005 |
| 2004 |
| % Increase |
| 2005 |
| 2004 |
| % Increase |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Wholesale / US Nutrition |
| $ | 182,556 |
| $ | 189,425 |
| -4 | % | $ | 362,174 |
| $ | 368,620 |
| -2 | % | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
North American Retail/ Vitamin World |
| 55,975 |
| 56,100 |
| 0 | % | 109,359 |
| 109,511 |
| 0 | % | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
European Retail / Holland & Barrett / GNC (UK) |
| 146,963 |
| 123,416 |
| 19 | % | 288,870 |
| 240,466 |
| 20 | % | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Direct Response / Puritan’s Pride |
| 57,220 |
| 70,653 |
| -19 | % | 102,580 |
| 106,050 |
| -3 | % | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
Total |
| $ | 442,714 |
| $ | 439,594 |
| 1 | % | $ | 862,983 |
| $ | 824,647 |
| 5 | % | |||
|
| GROSS PROFIT |
| ||||||||||
|
| (Unaudited) |
| ||||||||||
|
| THREE MONTHS ENDED |
| SIX MONTHS ENDED |
| ||||||||
|
|
|
|
|
| (% Decrease) |
|
|
|
|
| (% Decrease) |
|
|
| 2005 |
| 2004 |
| % Increase |
| 2005 |
| 2004 |
| % Increase |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale / US Nutrition |
| 34 | % | 39 | % | -5 | % | 34 | % | 38 | % | -4 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North American Retail / Vitamin World |
| 53 | % | 60 | % | -7 | % | 54 | % | 60 | % | -6 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Retail / Holland & Barrett / GNC (UK) |
| 62 | % | 62 | % | 0 | % | 63 | % | 61 | % | 2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Response / Puritan’s Pride |
| 59 | % | 61 | % | -2 | % | 59 | % | 61 | % | -2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
| 49 | % | 52 | % | -3 | % | 49 | % | 51 | % | -2 | % |
Reconciliation of GAAP Measures to Non-GAAP Measures
(Thousands)
(Unaudited)
|
| THREE MONTHS ENDED |
| ||||||||||
|
| Pretax Income |
| Depreciation and |
| Interest |
| EBITDA |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Wholesale / US Nutrition |
| $ | 12,376 |
| $ | 2,461 |
| $ | — |
| $ | 14,837 |
|
|
|
|
|
|
|
|
|
|
| ||||
North American Retail / Vitamin World |
| (4,549 | ) | 1,838 |
|
|
| (2,711 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
European Retail / Holland & Barrett / GNC (UK) |
| 40,080 |
| 3,094 |
|
|
| 43,174 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Direct Response / Puritan’s Pride |
| 15,269 |
| 1,293 |
|
|
| 16,562 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Segment Results |
| 63,176 |
| 8,686 |
| — |
| 71,862 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Corporate |
| (31,463 | ) | 5,826 |
| 5,881 |
| (19,756 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Total |
| $ | 31,713 |
| $ | 14,512 |
| $ | 5,881 |
| $ | 52,106 |
|
|
| THREE MONTHS ENDED |
| ||||||||||
|
| Pretax Income |
| Depreciation and |
| Interest |
| EBITDA |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Wholesale / US Nutrition |
| $ | 40,999 |
| $ | 2,764 |
| $ | — |
| $ | 43,763 |
|
|
|
|
|
|
|
|
|
|
| ||||
North American Retail / Vitamin World |
| 1,193 |
| 3,027 |
|
|
| 4,220 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
European Retail / Holland & Barrett / GNC (UK) |
| 29,683 |
| 3,394 |
|
|
| 33,077 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Direct Response / Puritan’s Pride |
| 23,418 |
| 1,393 |
|
|
| 24,811 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Segment Results |
| 95,293 |
| 10,578 |
| — |
| 105,871 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Corporate |
| (32,782 | ) | 5,501 |
| 6,759 |
| (20,522 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Total |
| $ | 62,511 |
| $ | 16,079 |
| $ | 6,759 |
| $ | 85,349 |
|
|
| SIX MONTHS ENDED |
| ||||||||||
|
| Pretax Income |
| Depreciation and |
| Interest |
| EBITDA |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Wholesale / US Nutrition |
| $ | 36,098 |
| $ | 4,955 |
| $ | — |
| $ | 41,053 |
|
|
|
|
|
|
|
|
|
|
| ||||
North American Retail / Vitamin World |
| (7,683 | ) | 3,610 |
|
|
| (4,073 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
European Retail / Holland & Barrett / GNC (UK) |
| 80,348 |
| 6,428 |
|
|
| 86,776 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Direct Response / Puritan’s Pride |
| 29,146 |
| 2,582 |
|
|
| 31,728 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Segment Results |
| 137,909 |
| 17,575 |
| — |
| 155,484 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Corporate |
| (60,766 | ) | 11,552 |
| 11,573 |
| (37,641 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Total |
| $ | 77,143 |
| $ | 29,127 |
| $ | 11,573 |
| $ | 117,843 |
|
|
| SIX MONTHS ENDED |
| ||||||||||
|
| Pretax Income |
| Depreciation and |
| Interest |
| EBITDA |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Wholesale / US Nutrition |
| $ | 71,007 |
| $ | 5,442 |
| $ | — |
| $ | 76,449 |
|
|
|
|
|
|
|
|
|
|
| ||||
North American Retail / Vitamin World |
| 1,389 |
| 6,186 |
|
|
| 7,575 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
European Retail / Holland & Barrett / GNC (UK) |
| 55,982 |
| 5,900 |
|
|
| 61,882 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Direct Response / Puritan’s Pride |
| 32,686 |
| 2,808 |
|
|
| 35,494 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Segment Results |
| 161,064 |
| 20,336 |
| — |
| 181,400 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Corporate |
| (62,192 | ) | 10,922 |
| 13,564 |
| (37,706 | ) | ||||
|
|
|
|
|
|
|
|
|
| ||||
Total |
| $ | 98,872 |
| $ | 31,258 |
| $ | 13,564 |
| $ | 143,694 |
|
NBTY, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
(Dollars and shares in thousands)
|
| March 31, |
| September 30, |
| ||
|
| 2005 |
| 2004 |
| ||
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 38,268 |
| $ | 21,751 |
|
|
|
|
|
|
| ||
Accounts receivable, less allowance for doubtful accounts of $9,090 and $9,389, respectively |
| 67,176 |
| 86,113 |
| ||
|
|
|
|
|
| ||
Inventories |
| 461,633 |
| 374,559 |
| ||
|
|
|
|
|
| ||
Deferred income taxes |
| 32,062 |
| 32,062 |
| ||
|
|
|
|
|
| ||
Prepaid expenses and other current assets |
| 47,441 |
| 62,835 |
| ||
|
|
|
|
|
| ||
Total current assets |
| 646,580 |
| 577,320 |
| ||
|
|
|
|
|
| ||
Property, plant and equipment, net of accumulated depreciation of $265,344 and $241,822, respectively |
| 281,562 |
| 280,075 |
| ||
|
|
|
|
|
| ||
Goodwill |
| 228,576 |
| 221,429 |
| ||
|
|
|
|
|
| ||
Intangible assets, net |
| 131,944 |
| 136,541 |
| ||
|
|
|
|
|
| ||
Other assets |
| 15,224 |
| 17,288 |
| ||
|
|
|
|
|
| ||
Total assets |
| $ | 1,303,886 |
| $ | 1,232,653 |
|
NBTY, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
LIABILITIES AND STOCKHOLDERS’ EQUITY
(Dollars and shares in thousands)
|
| March 31, |
| September 30, |
| ||
|
| 2005 |
| 2004 |
| ||
|
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current portion of long-term debt |
| $ | 2,021 |
| $ | 3,205 |
|
Accounts payable |
| 98,636 |
| 97,635 |
| ||
Accrued expenses and other current liabilities |
| 133,936 |
| 116,633 |
| ||
Total current liabilities |
| 234,593 |
| 217,473 |
| ||
|
|
|
|
|
| ||
Long-term debt |
| 289,836 |
| 306,531 |
| ||
Deferred income taxes |
| 73,635 |
| 64,675 |
| ||
Other liabilities |
| 5,354 |
| 4,176 |
| ||
Total liabilities |
| 603,418 |
| 592,855 |
| ||
|
|
|
|
|
| ||
Commitments and contingencies |
|
|
|
|
| ||
|
|
|
|
|
| ||
Stockholders’ equity: |
|
|
|
|
| ||
|
|
|
|
|
| ||
Common stock, $0.008 par; authorized 175,000 shares; issued and outstanding 67,185 shares at March 31, 2005 and 67,060 shares at September 30, 2004 |
| 537 |
| 536 |
| ||
|
|
|
|
|
| ||
Capital in excess of par |
| 138,597 |
| 135,787 |
| ||
Retained earnings |
| 531,898 |
| 481,302 |
| ||
Accumulated other comprehensive income |
| 29,436 |
| 22,173 |
| ||
Total stockholders’ equity |
| 700,468 |
| 639,798 |
| ||
|
|
|
|
|
| ||
Total liabilities and stockholders’ equity |
| $ | 1,303,886 |
| $ | 1,232,653 |
|
NBTY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(Dollars in thousands)
|
| For the six months |
| ||||
|
| 2005 |
| 2004 |
| ||
Cash flows from operating activities: |
|
|
|
|
| ||
Net income |
| $ | 50,760 |
| $ | 64,902 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
| ||
Loss on disposal/sale of property, plant and equipment |
| 25 |
| 492 |
| ||
Depreciation and amortization |
| 29,127 |
| 31,258 |
| ||
Foreign currency transaction gain |
| (451 | ) | (240 | ) | ||
Amortization of deferred financing costs |
| 1,216 |
| 1,812 |
| ||
Amortization of bond discount |
| 80 |
| 62 |
| ||
Compensation expense for ESOP |
| 1,135 |
| 2,473 |
| ||
Impairment on asset held for sale |
| 1,902 |
| — |
| ||
Gain on sale of business assets |
| (1,999 | ) | — |
| ||
(Recovery) / provision for doubtful accounts |
| (672 | ) | 1,298 |
| ||
Inventory reserves |
| 1,828 |
| 2,360 |
| ||
Deferred income taxes |
| 3,957 |
| 5,095 |
| ||
Tax benefit from exercise of stock options |
| 194 |
| 132 |
| ||
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
| ||
Accounts receivable |
| 19,900 |
| (12,738 | ) | ||
Inventories |
| (85,296 | ) | 7,545 |
| ||
Prepaid expenses and other current assets |
| 16,400 |
| 16,444 |
| ||
Other assets |
| 335 |
| 367 |
| ||
Accounts payable |
| (1,154 | ) | (3,597 | ) | ||
Accrued expenses and other liabilities |
| 16,790 |
| (3,809 | ) | ||
Net cash provided by operating activities |
| 54,077 |
| 113,856 |
| ||
Cash flows from investing activities: |
|
|
|
|
| ||
Purchase of property, plant and equipment |
| (21,605 | ) | (21,916 | ) | ||
Proceeds from sale of property, plant, and equipment |
| 70 |
| 83 |
| ||
Proceeds from sale of trademark |
| 30 |
| — |
| ||
Proceeds from sale of business assets |
| 5,766 |
| — |
| ||
Cash paid for acquisitions, net of cash acquired |
| (5,327 | ) | — |
| ||
Proceeds from sale of bond investment |
| — |
| 4,158 |
| ||
Net cash used in investing activities |
| (21,066 | ) | (17,675 | ) | ||
Cash flows from financing activities: |
|
|
|
|
| ||
Principal payments under long-term debt agreements |
| (17,977 | ) | (98,027 | ) | ||
Payments for financing fees |
| — |
| (500 | ) | ||
Proceeds from stock options exercised |
| 191 |
| 88 |
| ||
Purchase of treasury stock |
| (176 | ) | — |
| ||
Net cash used in financing activities |
| (17,962 | ) | (98,439 | ) | ||
Effect of exchange rate changes on cash and cash equivalents |
| 1,468 |
| 7,618 |
| ||
Net increase in cash and cash equivalents |
| 16,517 |
| 5,360 |
| ||
Cash and cash equivalents at beginning of period |
| 21,751 |
| 49,349 |
| ||
Cash and cash equivalents at end of period |
| $ | 38,268 |
| $ | 54,709 |
|
Supplemental disclosure of cash flow information: |
|
|
|
|
| ||
Cash paid during the period for interest |
| $ | 10,134 |
| $ | 11,798 |
|
Cash paid during the period for income taxes |
| $ | 17,398 |
| $ | 16,780 |
|