Exhibit 99.2
FOR IMMEDIATE RELEASE
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Contact: Harvey Kamil Carl Hymans
NBTY, Inc. G.S. Schwartz & Co.
President and 212-725-4500
Chief Financial Officer carlh@schwartz.com
NBTY UPDATES FOURTH QUARTER AND YEAR-END RESULTS
BOHEMIA, N.Y. - On November 10, 2003, NBTY, Inc. (NYSE: NTY) (www.NBTY.com)
announced results for its fiscal fourth quarter and year ended September
30, 2003.
Included in these results was a $7 million, pre-tax one-time charge for the
write-off relating to the Company's investment in bonds purchased in
anticipation of an acquisition that NBTY determined not to pursue.
Subsequent to September 30, 2003, the Company sold a portion of such bonds,
recouping approximately $3 million of the write-off. Accordingly, the
Company is reducing this reported write-off to $4 million, which has the
effect of increasing the Company's net income and earnings per diluted
share for the fiscal fourth quarter and year ended September 30, 2003.
These revised results are as follows:
(Dollars in thousands, except per share amounts)
Three Months Ended Fiscal Year Ended
September 30, 2003 September 30, 2003
<s> <c> <c>
Net Income $15,882 $81,585
Earnings per diluted share $ 0.23 $ 1.19
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
1,500 products under several brands, including Nature's Bounty(R), Vitamin
World(R), Puritan's Pride(R), Holland & Barrett(R), Rexall(R), Sundown(R),
MET-Rx(R), WORLDWIDE Sports Nutrition(R), American Health(R), GNC (UK)(R)
and DeTuinen(R).
NBTY, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands, except per share amounts)
For the three months
ended September 30,
2003 2002
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<s> <c> <c>
Net sales $364,847 $245,461
Cost and expenses:
Cost of sales 182,249 107,805
Discontinued product charge (1,500)
Catalog printing, postage and promotion 20,439 13,561
Selling, general and administrative 132,281 90,568
Litigation recovery of raw material costs (836)
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333,469 211,098
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Income from operations 31,378 34,363
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Other (expense):
Interest (5,674) (3,912)
Investment write down (4,084)
Miscellaneous, net (112) (765)
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(9,870) (4,677)
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Income before income taxes 21,508 29,686
Provision for income taxes 5,626 338
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Net income $ 15,882 $ 29,348
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Net income per share:
Basic $ 0.24 $ 0.44
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Diluted $ 0.23 $ 0.43
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Weighted average common shares outstanding:
Basic 66,547 66,122
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Diluted 68,796 67,986
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NBTY, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands, except per share amounts)
For the fiscal years
ended September 30,
2003 2002
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<s> <c> <c>
Net sales $1,192,548 $964,083
Cost and expenses:
Cost of sales 554,804 433,611
Discontinued product charge 4,500
Catalog printing, postage and promotion 66,455 47,846
Selling, general and administrative 435,748 348,334
Litigation recovery of raw material costs (21,354)
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1,061,507 808,437
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Income from operations 131,041 155,646
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Other income (expense):
Interest (17,384) (18,499)
Investment write down (4,084)
Miscellaneous, net 5,424 1,560
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(16,044) (16,939)
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Income before income taxes 114,997 138,707
Provision for income taxes 33,412 42,916
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Net income $ 81,585 $ 95,791
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Net income per share:
Basic $ 1.23 $ 1.45
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Diluted $ 1.19 $ 1.41
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Weighted average common shares outstanding:
Basic 66,452 65,952
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Diluted 68,538 67,829
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NBTY, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
ASSETS
(Dollars and shares in thousands)
September 30, September 30,
2003 2002
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<s> <c> <c>
Current assets:
Cash and cash equivalents $ 49,349 $ 26,229
Investments in bonds 4,158 8,194
Accounts receivable, less
allowance for doubtful accounts
of $10,463 at September 30, 2003
and $4,194 at September 30, 2002 89,430 36,825
Inventories 314,091 204,402
Deferred income taxes 37,021 11,206
Prepaid expenses and other
current assets 44,736 24,691
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Total current assets 538,785 311,547
Property, plant and equipment, net 298,344 216,245
Goodwill 213,362 144,999
Intangible assets, net 137,469 48,413
Other assets 16,423 8,936
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Total assets $1,204,383 $730,140
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NBTY, INC. and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
(Dollars and shares in thousands)
September 30, September 30,
2003 2002
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<s> <c> <c>
Current liabilities:
Current portion of long-term debt
and capital lease obligations $ 12,841 $ 23,044
Accounts payable 87,039 48,616
Accrued expenses and other current liabilities 124,630 54,177
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Total current liabilities 224,510 125,837
Long-term debt 413,989 163,874
Deferred income taxes 40,213 16,928
Other liabilities 10,872 4,244
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Total liabilities 689,584 310,883
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Commitments and contingencies
Stockholders' equity:
Common stock, $0.008 par; authorized 175,000
shares; issued and outstanding 66,620 shares
at September 30, 2003 and 66,322 shares at
September 30, 2002 533 529
Capital in excess of par 130,208 126,283
Retained earnings 369,453 287,868
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500,194 414,680
Accumulated other comprehensive income 14,605 4,577
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Total stockholders' equity 514,799 419,257
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Total liabilities and stockholders' equity $1,204,383 $730,140
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NBTY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
For the fiscal years
ended September 30,
2003 2002
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<s> <c> <c>
Cash flows from operating activities:
Net income $ 81,585 $ 95,791
Adjustments to reconcile net income to
net cash provided by operating activities:
(Gain)/loss on disposal/sale of property, plant and equipment (711) 102
Depreciation and amortization 46,884 42,192
Foreign currency exchange rate (gain) loss (334) 1,556
Amortization of deferred financing costs 1,003 782
Amortization of bond discount 124 124
Investment write down 4,084
Allowance for doubtful accounts (2,906) 972
Deferred income taxes 6,033 (5,829)
Compensation expense for ESOP 1,710
Tax benefit from exercise of stock options 1,072 1,815
Changes in assets and liabilities, net of acquisitions:
Accounts receivable (1,466) (7,011)
Inventories (23,879) (14,277)
Prepaid expenses and other current assets (15,855) (3,432)
Other assets 616 (586)
Accounts payable (2,773) (3,442)
Accrued expenses and other liabilities 16,345 (3,670)
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Net cash provided by operating activities 111,532 105,087
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Cash flows from investing activities:
Cash paid for acquisitions, net of cash acquired (289,676) (7,702)
Purchase of property, plant and equipment (37,510) (21,489)
Proceeds from sale of property, plant, and equipment 1,498 1,004
Proceeds from sale of intangibles 53
Purchase of short term investments (8,242)
Release of cash held in escrow 2,403 4,600
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Net cash used in investing activities (323,285) (31,776)
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Cash flows from financing activities:
Principal payments under long-term
debt agreements and capital leases (35,212) (85,353)
Proceeds from borrowings under long term debt agreements 275,000
Payments for debt issuance costs (7,500)
Proceeds from stock options exercised 1,147 1,899
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Net cash provided by (used in) financing activities 233,435 (83,454)
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Effect of exchange rate changes on cash
and cash equivalents 1,438 1,938
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Net increase (decrease) in cash and cash equivalents 23,120 (8,205)
Cash and cash equivalents at beginning of year 26,229 34,434
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Cash and cash equivalents at end of year $ 49,349 $ 26,229
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Supplemental disclosure of cash flow information:
Cash paid during the period for interest $ 17,709 $ 18,513
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Cash paid during the period for income taxes $ 34,698 $ 55,101
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