Exhibit 99.1
FOR IMMEDIATE RELEASE
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 |
NBTY FILES FOR 10K EXTENSION
REPORTS PRELIMINARY UNAUDITED RESULTS
BOHEMIA, N.Y. – December 14, 2005 - NBTY, Inc. (NYSE: NTY) (www.NBTY.com), a leading global manufacturer and marketer of nutritional supplements, today announced that it has filed for an extension of time to file its 10K report with the Securities and Exchange Commission, citing the need for additional time to finalize the audit and to complete the requirements of the Sarbanes Oxley Act. The Company intends to file its 10K by December 29, 2005.
NBTY also announced preliminary unaudited results for the fiscal fourth quarter and fiscal year ended September 30, 2005.
For the fiscal fourth quarter of 2005 sales increased $8 million to $435 million compared to sales of $427 million for the fiscal fourth quarter ended September 30, 2004. Without $17 million in sales from Solgar acquired on August 1, 2005, sales during the fourth quarter of 2005 would have decreased by approximately $10 million.
Net income for the fiscal fourth quarter ended September 30, 2005 was $11 million, or $0.17 per diluted share, compared to $21 million, or $0.30 per diluted share, for the fiscal fourth quarter ended September 30, 2004. Net income for the fiscal fourth quarter ended September 30, 2005 was adversely affected by a Solgar pre-tax loss of $2 million.
For fiscal 2005, sales were $1.74 billion, compared to $1.65 billion for fiscal 2004. Net income for fiscal 2005 was $78 million, or $1.13 per diluted share, compared to $112 million, or $1.62 per diluted share, for fiscal 2004.
These results reflect NBTY’s continued weakness in sales and lower margins in an overall stagnant nutritional supplement marketplace.
Results for fiscal 2005 include asset impairment charges related to Vitamin World of $11 million, or $0.14 per diluted share, consisting of a write off of $8 million of goodwill and a write off of $3 million for leasehold improvements. These asset impairment charges are required by generally accepted accounting principles and are the result of the continued adverse business climate in the specialty retail channel in the United States.
1
At September 30, 2005, NBTY’s total assets were $1.5 billion and working capital was $476 million. Inventory at September 30, 2005 was $491 million, representing an increase of $117 million from September 30, 2004. While inventory for fiscal fourth quarter increased by $13 million, excluding the acquired Solgar inventory, inventory during this period would have decreased by $25 million. This reflects the Company’s ongoing efforts to lower inventories while assuring its customers of uninterrupted supply of product. The inventory remains current.
OPERATIONS FOR THE FISCAL FOURTH QUARTER ENDED SEPTEMBER 30, 2005
For the fiscal fourth quarter of 2005, sales for the Wholesale/US Nutrition division, which markets Nature’s Bounty, Sundown and Solgar brands, increased 1% to $197 million from $194 million for the fiscal fourth quarter of 2004. These results reflect $17 million of Solgar sales. Product returns for the fiscal fourth quarter and fiscal 2005 were $11 million and $44 million, respectively. For the fiscal fourth quarter of 2005, approximately 30% of returns are attributable to a continued decline in the low carb bar market. The balance relates to continued reallocation of shelf space and other miscellaneous returns. US Nutrition utilizes valuable consumer preference sales data generated by the Company’s Vitamin World retail stores and Puritan’s Pride Direct Response/E-Commerce operations.
The North American Retail division’s sales increased by 5% to $56 million for the fiscal fourth quarter of 2005 from $53 million for the fiscal fourth quarter of 2004. Sales for fiscal year 2005 for this division increased 4% to $224 million from $216 million for fiscal 2004. Virtually all these increases in sales are the result of the acquisition of Le Naturiste. Same store sales for Vitamin World decreased 2% for the fiscal fourth quarter of 2005 and 3% for fiscal 2005. These results further evidence a weak specialty retail marketplace in North America.
During fiscal 2005, Vitamin World opened 21 new stores and closed 36 underperforming stores. During 2006, Vitamin World anticipates closing approximately 70 stores as these stores come up for lease renewal. At the end of the fiscal fourth quarter, the North American Retail division operated a total of 643 stores; 542 in the US and 101 in Canada.
European Retail division sales increased by 1% to $134 million from $133 million for the fiscal fourth quarter a year ago. The European Retail same store sales in local currency for the fiscal fourth quarter 2005 were unchanged from the prior like quarter but increased 8% for fiscal 2005. The European Retail division continues to leverage its premier status, high street locations and brand awareness to achieve these results. The European Retail division’s increased sales include sales generated by
2
Holland & Barrett and GNC stores in the UK, DeTuinen stores in the Netherlands, and Nature’s Way stores in Ireland. During fiscal 2005, the European Retail division opened 16 stores, closed 6 stores and at the end of the quarter operated a total of 612 stores.
Revenues from Direct Response/Puritan’s Pride operations for the fiscal fourth quarter of 2005 increased 3% to $48 million from $47 million for the comparable prior period. As a result of the Company’s decision to lower prices and put pressure on its competitors, gross margins in this division fell from 65% to 52%. Online sales now constitute 30% of total Direct Response/E-Commerce sales. NBTY remains 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.
Preliminary unaudited sales for the two-months ended November 2005 were $297 million, an increase of 3% from the prior like period.
NBTY Chairman and CEO, Scott Rudolph, said: “We are disappointed with our year end results. The Company has seen difficult times before. Our strong financial and industry position should help us navigate through this environment. We are confident in the long-term outlook for the Company.”
ABOUT NBTY
NBTY is a leading 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 Bountyâ, Vitamin Worldâ, Puritan’s Prideâ, Holland & Barrettâ, Rexallâ, Sundownâ, MET-Rx®, WORLDWIDE Sport Nutrition®, American Healthâ, GNC (UK)â, DeTuinen®, LeNaturisteä, SISU® and Solgar® brands.
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
3
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) 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 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 proposed 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 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.
4
NBTY, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(PRELIMINARY AND UNAUDITED)
(Dollars and shares in thousands, except per share amounts)
|
| For the three months |
| ||||
|
| 2005 |
| 2004 |
| ||
|
|
|
|
|
| ||
Net sales |
| $ | 435,218 |
| $ | 427,471 |
|
|
|
|
|
|
| ||
Costs and expenses: |
|
|
|
|
| ||
Cost of sales |
| 236,650 |
| 219,051 |
| ||
Advertising, promotion and catalog |
| 25,308 |
| 24,129 |
| ||
Selling, general and administrative |
| 151,668 |
| 146,267 |
| ||
|
| 413,626 |
| 389,447 |
| ||
|
|
|
|
|
| ||
Income from operations |
| 21,592 |
| 38,024 |
| ||
|
|
|
|
|
| ||
Other income (expense): |
|
|
|
|
| ||
Interest |
| (9,238 | ) | (5,530 | ) | ||
Miscellaneous, net |
| 2,323 |
| 982 |
| ||
|
| (6,915 | ) | (4,548 | ) | ||
|
|
|
|
|
| ||
Income before provision for income taxes |
| 14,677 |
| 33,476 |
| ||
|
|
|
|
|
| ||
Provision for income taxes |
| 3,265 |
| 12,431 |
| ||
|
|
|
|
|
| ||
Net income |
| $ | 11,412 |
| $ | 21,045 |
|
|
|
|
|
|
| ||
Net income per share: |
|
|
|
|
| ||
Basic |
| $ | 0.17 |
| $ | 0.31 |
|
Diluted |
| $ | 0.17 |
| $ | 0.30 |
|
|
|
|
|
|
| ||
Weighted average common shares outstanding: |
|
|
|
|
| ||
Basic |
| 67,189 |
| 66,999 |
| ||
Diluted |
| 69,116 |
| 69,011 |
| ||
5
|
| For the fiscal years |
| ||||
|
| 2005 |
| 2004 |
| ||
|
|
|
|
|
| ||
Net sales |
| $ | 1,737,187 |
| $ | 1,652,031 |
|
|
|
|
|
|
| ||
Costs and expenses: |
|
|
|
|
| ||
Cost of sales |
| 895,644 |
| 822,412 |
| ||
Advertising, promotion and catalog |
| 108,005 |
| 85,238 |
| ||
Selling, general and administrative |
| 588,166 |
| 554,838 |
| ||
Goodwill impairment |
| 7,686 |
| — |
| ||
|
| 1,599,501 |
| 1,462,488 |
| ||
|
|
|
|
|
| ||
Income from operations |
| 137,686 |
| 189,543 |
| ||
|
|
|
|
|
| ||
Other income (expense): |
|
|
|
|
| ||
Interest |
| (26,475 | ) | (24,663 | ) | ||
Miscellaneous, net |
| 8,051 |
| 4,125 |
| ||
|
| (18,424 | ) | (20,538 | ) | ||
|
|
|
|
|
| ||
Income before provision for income taxes |
| 119,262 |
| 169,005 |
| ||
|
|
|
|
|
| ||
Provision for income taxes |
| 41,125 |
| 57,156 |
| ||
|
|
|
|
|
| ||
Net income |
| $ | 78,137 |
| $ | 111,849 |
|
|
|
|
|
|
| ||
Net income per share: |
|
|
|
|
| ||
Basic |
| $ | 1.16 |
| $ | 1.67 |
|
Diluted |
| $ | 1.13 |
| $ | 1.62 |
|
|
|
|
|
|
| ||
Weighted average common shares outstanding: |
|
|
|
|
| ||
Basic |
| 67,162 |
| 66,793 |
| ||
Diluted |
| 69,137 |
| 69,069 |
| ||
6
SALES
(Thousands)
(Preliminary And Unaudited)
|
| THREE MONTHS ENDED |
| FISCAL YEARS ENDED |
| ||||||||||||
|
|
|
|
|
| Percentage |
|
|
|
|
| Percentage |
| ||||
|
| 2005 |
| 2004 |
| Change |
| 2005 |
| 2004 |
| Change |
| ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Wholesale / US Nutrition |
| $ | 196,832 |
| $ | 194,075 |
| 1 | % | $ | 747,234 |
| $ | 734,293 |
| 2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
North American Retail / Vitamin World |
| 56,136 |
| 53,469 |
| 5 | % | 224,008 |
| 216,431 |
| 4 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
European Retail / Holland & Barrett / GNC (UK) |
| 134,078 |
| 133,021 |
| 1 | % | 566,140 |
| 495,808 |
| 14 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Direct Response / Puritan’s Pride |
| 48,172 |
| 46,906 |
| 3 | % | 199,805 |
| 205,499 |
| -3 | % | ||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Total |
| $ | 435,218 |
| $ | 427,471 |
| 2 | % | $ | 1,737,187 |
| $ | 1,652,031 |
| 5 | % |
GROSS PROFIT
PERCENTAGES
(Preliminary And Unaudited)
|
| THREE MONTHS ENDED |
| FISCAL YEARS ENDED |
| ||||||||
|
|
|
|
|
| Percentage |
|
|
|
|
| Percentage |
|
|
| 2005 |
| 2004 |
| Change |
| 2005 |
| 2004 |
| Change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wholesale / US Nutrition |
| 30 | % | 32 | % | -2 | % | 34 | % | 36 | % | -2 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North American Retail / Vitamin World |
| 57 | % | 58 | % | -1 | % | 55 | % | 59 | % | -4 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
European Retail / Holland & Barrett / GNC (UK) |
| 61 | % | 63 | % | -2 | % | 62 | % | 62 | % | 0 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Direct Response / Puritan’s Pride |
| 52 | % | 65 | % | -13 | % | 57 | % | 62 | % | -5 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
| 46 | % | 49 | % | -3 | % | 48 | % | 50 | % | -2 | % |
7
Reconciliation of GAAP Measures to Non-GAAP Measures **
(Thousands)
(Preliminary And Unaudited)
|
| THREE MONTHS ENDED |
| |||||||||||||
|
| Pretax Income |
| Depreciation and |
| Interest |
| Non-cash |
| EBITDA |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Wholesale / US Nutrition |
| $ | 10,564 |
| $ | 2,482 |
| $ | — |
| $ | — |
| $ | 13,046 |
|
North American Retail / Vitamin World |
| (3,881 | ) | 1,507 |
| — |
| 215 |
| (2,159 | ) | |||||
European Retail / Holland & Barrett / GNC (UK) |
| 32,479 |
| 2,559 |
| — |
| — |
| 35,038 |
| |||||
Direct Response / Puritan’s Pride |
| 10,731 |
| 1,253 |
| — |
| — |
| 11,984 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Segment Results |
| 49,893 |
| 7,801 |
| — |
| 215 |
| 57,909 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Corporate |
| (35,216 | ) | 6,206 |
| 9,238 |
| — |
| (19,772 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 14,677 |
| $ | 14,007 |
| $ | 9,238 |
| $ | 215 |
| $ | 38,137 |
|
|
| THREE MONTHS ENDED |
| |||||||||||||
|
| Pretax Income |
| Depreciation and |
| Interest |
| Non-cash |
| EBITDA |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Wholesale / US Nutrition |
| $ | 14,298 |
| $ | 2,538 |
| $ | — |
| $ | — |
| $ | 16,836 |
|
North American Retail / Vitamin World |
| (364 | ) | 2,339 |
| — |
| — |
| 1,975 |
| |||||
European Retail / Holland & Barrett / GNC (UK) |
| 36,094 |
| 2,489 |
| — |
| — |
| 38,583 |
| |||||
Direct Response / Puritan’s Pride |
| 16,285 |
| 1,301 |
| — |
| — |
| 17,586 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Segment Results |
| 66,313 |
| 8,667 |
| — |
| — |
| 74,980 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Corporate |
| (32,837 | ) | 6,165 |
| 5,530 |
| — |
| (21,142 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 33,476 |
| $ | 14,832 |
| $ | 5,530 |
| $ | — |
| $ | 53,838 |
|
**SINCE 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 EBITDA IS NOT NECESSARILY COMPARABLE TO SIMILARLY TITLED MEASURES REPORTED BY OTHER COMPANIES.
8
Reconciliation of GAAP Measures to Non-GAAP Measures **
(Thousands)
(Preliminary And Unaudited)
|
| FISCAL YEAR ENDED |
| |||||||||||||
|
| Pretax Income |
| Depreciation and |
| Interest |
| Non-cash |
| EBITDA |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Wholesale / US Nutrition |
| $ | 67,873 |
| $ | 9,923 |
| $ | — |
| $ | — |
| $ | 77,796 |
|
North American Retail / Vitamin World |
| (26,216 | ) | 6,756 |
| — |
| 11,204 |
| (8,256 | ) | |||||
European Retail / Holland & Barrett / GNC (UK) |
| 151,459 |
| 13,175 |
| — |
|
|
| 164,634 |
| |||||
Direct Response / Puritan’s Pride |
| 52,254 |
| 5,079 |
| — |
|
|
| 57,333 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Segment Results |
| 245,370 |
| 34,933 |
| — |
| 11,204 |
| 291,507 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Corporate |
| (126,108 | ) | 23,350 |
| 26,475 |
|
|
| (76,283 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 119,262 |
| $ | 58,283 |
| $ | 26,475 |
| $ | 11,204 |
| $ | 215,224 |
|
|
| FISCAL YEAR ENDED |
| |||||||||||||
|
| Pretax Income |
| Depreciation and |
| Interest |
| Non-cash |
| EBITDA |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Wholesale / US Nutrition |
| $ | 112,224 |
| $ | 10,474 |
| $ | — |
| $ | — |
| $ | 122,698 |
|
North American Retail / Vitamin World |
| (120 | ) | 10,848 |
| — |
| — |
| 10,728 |
| |||||
European Retail / Holland & Barrett / GNC (UK) |
| 120,323 |
| 12,370 |
| — |
| — |
| 132,693 |
| |||||
Direct Response / Puritan’s Pride |
| 65,265 |
| 5,403 |
| — |
| — |
| 70,668 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Segment Results |
| 297,692 |
| 39,095 |
| — |
| — |
| 336,787 |
| |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Corporate |
| (128,687 | ) | 22,585 |
| 24,663 |
| — |
| (81,439 | ) | |||||
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total |
| $ | 169,005 |
| $ | 61,680 |
| $ | 24,663 |
| $ | — |
| $ | 255,348 |
|
** SINCE 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 EBITDA IS NOT NECESSARILY COMPARABLE TO SIMILARLY TITLED MEASURES REPORTED BY OTHER COMPANIES.
9
NBTY, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(PRELIMINARY AND UNAUDITED)
ASSETS
(Dollars and shares in thousands)
|
| September 30, |
| September 30, |
| ||
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 67,282 |
| $ | 21,751 |
|
Investments |
| 39,900 |
| — |
| ||
Accounts receivable, less allowance for doubtful accounts of $9,155 and $9,389, respectively |
| 73,226 |
| 86,113 |
| ||
|
|
|
|
|
| ||
Inventories |
| 491,335 |
| 374,559 |
| ||
|
|
|
|
|
| ||
Deferred income taxes |
| 23,645 |
| 32,062 |
| ||
|
|
|
|
|
| ||
Prepaid expenses and other current assets |
| 54,469 |
| 62,835 |
| ||
|
|
|
|
|
| ||
Total current assets |
| 749,857 |
| 577,320 |
| ||
|
|
|
|
|
| ||
Property, plant and equipment, net of accumulated depreciation of $279,883 and $241,822, respectively |
| 320,528 |
| 280,075 |
| ||
|
|
|
|
|
| ||
Goodwill |
| 228,747 |
| 221,429 |
| ||
|
|
|
|
|
| ||
Other intangible assets, net |
| 166,325 |
| 136,541 |
| ||
|
|
|
|
|
| ||
Other assets |
| 16,845 |
| 17,288 |
| ||
|
|
|
|
|
| ||
Total assets |
| $ | 1,482,302 |
| $ | 1,232,653 |
|
NBTY, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(PRELIMINARY AND UNAUDITED)
LIABILITIES AND STOCKHOLDERS’ EQUITY
(Dollars and shares in thousands)
|
| September 30, |
| September 30, |
| ||
|
| 2005 |
| 2004 |
| ||
|
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
|
|
|
|
|
| ||
Current portion of long-term debt |
| $ | 80,922 |
| $ | 3,205 |
|
Accounts payable |
| 72,720 |
| 97,635 |
| ||
Accrued expenses and other current liabilities |
| 120,487 |
| 116,633 |
| ||
Total current liabilities |
| 274,129 |
| 217,473 |
| ||
|
|
|
|
|
| ||
Long-term debt |
| 428,204 |
| 306,531 |
| ||
Deferred income taxes |
| 57,092 |
| 64,675 |
| ||
Other liabilities |
| 6,822 |
| 4,176 |
| ||
Total liabilities |
| 766,247 |
| 592,855 |
| ||
|
|
|
|
|
| ||
Commitments and contingencies |
|
|
|
|
| ||
|
|
|
|
|
| ||
Stockholders’ equity: |
|
|
|
|
| ||
|
|
|
|
|
| ||
Common stock, $0.008 par; authorized 175,000 shares; issued and outstanding 67,191 shares at September 30, 2005 and 67,060 shares at September 30, 2004 |
| 537 |
| 536 |
| ||
Capital in excess of par |
| 138,657 |
| 135,787 |
| ||
Retained earnings |
| 559,275 |
| 481,302 |
| ||
Accumulated other comprehensive income |
| 17,586 |
| 22,173 |
| ||
Total stockholders’ equity |
| 716,055 |
| 639,798 |
| ||
|
|
|
|
|
| ||
Total liabilities and stockholders’ equity |
| $ | 1,482,302 |
| $ | 1,232,653 |
|
NBTY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(PRELIMINARY AND UNAUDITED)
(Dollars in thousands)
|
| For the fiscal year ended Sept. 30, |
| ||||
|
| 2005 |
| 2004 |
| ||
Cash flows from operating activities: |
|
|
|
|
| ||
Net income |
| $ | 78,137 |
| $ | 111,849 |
|
Adjustments to reconcile net income to net cash and cash equivalents provided by operating activities: |
|
|
|
|
| ||
Provision for impairments and disposals of property, plant and equipment |
| 5,471 |
| 1,556 |
| ||
Depreciation and amortization |
| 58,283 |
| 61,680 |
| ||
Foreign currency transaction gain |
| (4,286 | ) | (1,253 | ) | ||
Amortization of deferred financing costs |
| 2,398 |
| 3,955 |
| ||
Amortization of bond discount |
| 152 |
| 7 |
| ||
Loss on bond redemption |
| 790 |
| — |
| ||
Compensation expense for ESOP |
| 2,583 |
| 4,090 |
| ||
Impairment on asset held for sale |
| 1,908 |
| — |
| ||
Gain on sale of business assets |
| (1,998 | ) | — |
| ||
Goodwill impairment |
| 7,686 |
| — |
| ||
(Recovery of) / provision for doubtful accounts |
| (137 | ) | 3,074 |
| ||
Inventory reserves |
| 9,479 |
| 16,070 |
| ||
Deferred income taxes |
| 4,527 |
| 8,767 |
| ||
Tax benefit from exercise of stock options |
| 220 |
| 1,228 |
| ||
Changes in operating assets and liabilities, net of acquisitions: |
|
|
|
|
| ||
Accounts receivable |
| 29,673 |
| (8,151 | ) | ||
Inventories |
| (87,413 | ) | (72,888 | ) | ||
Prepaid expenses and other current assets |
| (1,613 | ) | (4,095 | ) | ||
Other assets |
| (139 | ) | (1,937 | ) | ||
Accounts payable |
| (28,519 | ) | 7,193 |
| ||
Accrued expenses and other liabilities |
| 8,646 |
| (11,209 | ) | ||
Net cash provided by operating activities |
| 85,848 |
| 119,936 |
| ||
Cash flows from investing activities: |
|
|
|
|
| ||
Purchase of property, plant and equipment |
| (71,516 | ) | (42,700 | ) | ||
Proceeds from sale of property, plant, and equipment |
| 298 |
| 1,065 |
| ||
Proceeds from sale of property, plant, and equipment held for sale |
| 9,950 |
| — |
| ||
Proceeds from sale of trademark |
| 30 |
| — |
| ||
Proceeds from sale of business assets |
| 5,766 |
| — |
| ||
Purchase of available-for-sale marketable securities |
| (39,900 | ) | — |
| ||
Cash paid for acquisitions, net of cash acquired |
| (131,397 | ) | — |
| ||
Purchase price dispute settlements, net |
| (8,236 | ) | — |
| ||
Purchase of intangible assets |
| (563 | ) | — |
| ||
Proceeds from sale of bond investment |
| — |
| 4,158 |
| ||
Net cash used in investing activities |
| (235,568 | ) | (37,477 | ) | ||
|
| For the fiscal year ended Sept. 30, |
| ||||
|
| 2005 |
| 2004 |
| ||
Cash flows from financing activities: |
|
|
|
|
| ||
Principal payments under long-term debt agreements |
| $ | (138,544 | ) | $ | (117,100 | ) |
Proceeds from borrowings under long-term agreements |
| 132,950 |
| — |
| ||
Proceeds from bond offering, net of discount |
| 198,234 |
| — |
| ||
Net proceeds under the Revolving Credit Facility |
| 6,000 |
| — |
| ||
Payments for financing fees |
| — |
| (500 | ) | ||
Bond issuance costs |
| (3,329 | ) | — |
| ||
Proceeds from stock options exercised |
| 225 |
| 1,881 |
| ||
Purchase of treasury stock |
| (176 | ) | — |
| ||
Net cash provided by (used in) financing activities |
| 195,360 |
| (115,719 | ) | ||
Effect of exchange rate changes on cash and cash equivalents |
| (109 | ) | 5,662 |
| ||
|
|
|
|
|
| ||
Net increase (decrease) in cash and cash equivalents |
| 45,531 |
| (27,598 | ) | ||
Cash and cash equivalents at beginning of year |
| 21,751 |
| 49,349 |
| ||
Cash and cash equivalents at end of year |
| $ | 67,282 |
| $ | 21,751 |
|
SALES
(Preliminary and Unaudited)
FOR THE TWO MONTHS OCTOBER AND NOVEMBER
($ In Thousands)
|
|
|
|
|
| Percentage |
| ||
|
| 2005 |
| 2004 |
| Change |
| ||
|
|
|
|
|
|
|
| ||
Wholesale / US Nutrition |
| $ | 143,209 |
| $ | 124,425 |
| 15 | % |
|
|
|
|
|
|
|
| ||
North American Retail / Vitamin World |
| 37,851 |
| 34,364 |
| 10 | % | ||
|
|
|
|
|
|
|
| ||
European Retail / Holland & Barrett / GNC (UK) |
| 92,542 |
| 93,191 |
| -1 | % | ||
|
|
|
|
|
|
|
| ||
Direct Response / Puritan’s Pride |
| 23,314 |
| 36,965 |
| -37 | % | ||
|
|
|
|
|
|
|
| ||
Total |
| $ | 296,917 |
| $ | 288,946 |
| 3 | % |