2018 Q2 Form 10-Q Financial Statement

#000091040618000047 Filed on May 08, 2018

View on sec.gov

Income Statement

Concept 2018 Q2 2018 Q1 2017 Q1
Revenue $619.6M $632.7M $588.8M
YoY Change 2.77% 7.46% -21.48%
Cost Of Revenue $494.5M $499.7M $449.6M
YoY Change 7.73% 11.15% -22.05%
Gross Profit $125.1M $133.0M $139.2M
YoY Change -13.04% -4.45% -12.95%
Gross Profit Margin 20.19% 21.02% 23.64%
Selling, General & Admin $80.80M $86.06M $76.17M
YoY Change 7.88% 12.99% -3.45%
% of Gross Profit 64.59% 64.7% 54.72%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $15.70M $8.212M $8.376M
YoY Change 5.37% -1.96% -10.44%
% of Gross Profit 12.55% 6.17% 6.02%
Operating Expenses $85.20M $86.06M $76.17M
YoY Change 7.85% 12.99% -3.45%
Operating Profit $16.58M $29.25M $49.62M
YoY Change 131.11% -41.05% -30.26%
Interest Expense -$7.400M -$6.800M -$5.400M
YoY Change 32.14% 25.93% -21.74%
% of Operating Profit -44.63% -23.24% -10.88%
Other Income/Expense, Net -$3.400M $1.560M -$2.072M
YoY Change 1600.0% -175.29% 448.15%
Pretax Income $5.838M $24.03M $42.15M
YoY Change 327.38% -42.98% -42.15%
Income Tax $4.500M -$1.310M $9.149M
% Of Pretax Income 77.08% -5.45% 21.71%
Net Earnings -$69.94M $12.69M $31.33M
YoY Change -22445.37% -59.51% -35.79%
Net Earnings / Revenue -11.29% 2.0% 5.32%
Basic Earnings Per Share -$0.67 $0.12 $0.30
Diluted Earnings Per Share -$0.67 $0.12 $0.30
COMMON SHARES
Basic Shares Outstanding 108.4M shares 103.9M shares 103.7M shares
Diluted Shares Outstanding 104.5M shares 104.2M shares

Balance Sheet

Concept 2018 Q2 2018 Q1 2017 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $106.6M $117.2M $162.6M
YoY Change -22.25% -27.92% 29.67%
Cash & Equivalents $106.6M $117.2M $152.8M
Short-Term Investments
Other Short-Term Assets $300.8M $377.8M $65.00M
YoY Change 76.94% 481.23% 0.15%
Inventory $391.5M $399.2M $435.7M
Prepaid Expenses $59.95M $62.64M $65.02M
Receivables $252.7M $261.5M $241.7M
Other Receivables $0.00 $0.00 $0.00
Total Short-Term Assets $1.052B $1.156B $905.0M
YoY Change 20.21% 27.69% -4.35%
LONG-TERM ASSETS
Property, Plant & Equipment $310.2M $314.2M $377.2M
YoY Change 6.27% -16.69% -3.95%
Goodwill $885.7M $1.057B $1.033B
YoY Change -13.08% 2.36% -13.61%
Intangibles $510.4M $540.2M $567.4M
YoY Change -2.08% -4.79% -11.88%
Long-Term Investments $20.70M $20.10M $19.00M
YoY Change 8.95% 5.79% -5.0%
Other Assets $29.67M $33.31M $32.36M
YoY Change -1.88% 2.94% -1.84%
Total Long-Term Assets $1.895B $1.965B $2.029B
YoY Change -7.84% -3.14% -11.22%
TOTAL ASSETS
Total Short-Term Assets $1.052B $1.156B $905.0M
Total Long-Term Assets $1.895B $1.965B $2.029B
Total Assets $2.947B $3.121B $2.934B
YoY Change 0.53% 6.37% -9.21%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $230.0M $214.7M $237.2M
YoY Change 23.52% -9.46% 1.52%
Accrued Expenses $116.0M $111.3M $101.0M
YoY Change 8.69% 10.19% 8.57%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00 $0.00
YoY Change
Long-Term Debt Due $26.61M $25.68M $8.457M
YoY Change 176.39% 203.62% -77.63%
Total Short-Term Liabilities $422.4M $413.7M $346.7M
YoY Change 24.07% 19.33% -4.89%
LONG-TERM LIABILITIES
Long-Term Debt $687.5M $723.5M $780.9M
YoY Change -7.11% -7.35% -11.23%
Other Long-Term Liabilities $12.77M $24.21M $16.57M
YoY Change -20.06% 46.15% 176.75%
Total Long-Term Liabilities $700.3M $747.7M $797.4M
YoY Change -7.39% -6.24% -9.96%
TOTAL LIABILITIES
Total Short-Term Liabilities $422.4M $413.7M $346.7M
Total Long-Term Liabilities $700.3M $747.7M $797.4M
Total Liabilities $1.210B $1.245B $1.268B
YoY Change -0.71% -1.84% -8.92%
SHAREHOLDERS EQUITY
Retained Earnings $878.5M $948.5M $868.5M
YoY Change 1.12% 9.21% -7.09%
Common Stock $1.084M $1.084M $1.080M
YoY Change 0.37% 0.37% 0.47%
Preferred Stock
YoY Change
Treasury Stock (at cost) $106.5M $106.2M $98.98M
YoY Change 7.24% 7.26% 11.63%
Treasury Stock Shares 4.470M shares 4.458M shares 4.279M shares
Shareholders Equity $1.737B $1.876B $1.666B
YoY Change
Total Liabilities & Shareholders Equity $2.947B $3.121B $2.934B
YoY Change 0.53% 6.37% -9.21%

Cashflow Statement

Concept 2018 Q2 2018 Q1 2017 Q1
OPERATING ACTIVITIES
Net Income -$69.94M $12.69M $31.33M
YoY Change -22445.37% -59.51% -35.79%
Depreciation, Depletion And Amortization $15.70M $8.212M $8.376M
YoY Change 5.37% -1.96% -10.44%
Cash From Operating Activities $51.60M $30.20M $35.20M
YoY Change -24.78% -14.2% 8.98%
INVESTING ACTIVITIES
Capital Expenditures -$22.50M -$23.70M -$2.000M
YoY Change 35.54% 1085.0% -88.1%
Acquisitions
YoY Change
Other Investing Activities -$900.0K -$2.100M -$13.40M
YoY Change -95.89% -84.33%
Cash From Investing Activities -$23.50M -$25.70M -$15.30M
YoY Change -39.12% 67.97% -9.47%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -33.30M -21.90M -15.50M
YoY Change -29.75% 41.29% -76.76%
NET CHANGE
Cash From Operating Activities 51.60M 30.20M 35.20M
Cash From Investing Activities -23.50M -25.70M -15.30M
Cash From Financing Activities -33.30M -21.90M -15.50M
Net Change In Cash -5.200M -17.40M 4.400M
YoY Change -70.11% -495.45% -108.58%
FREE CASH FLOW
Cash From Operating Activities $51.60M $30.20M $35.20M
Capital Expenditures -$22.50M -$23.70M -$2.000M
Free Cash Flow $74.10M $53.90M $37.20M
YoY Change -13.03% 44.89% -24.24%

Facts In Submission

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us-gaap Employee Service Share Based Compensation Tax Benefit From Exercise Of Stock Options
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us-gaap Gross Profit
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us-gaap Gross Profit
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us-gaap Impairment Of Long Lived Assets Held For Use
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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
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us-gaap Income Loss From Discontinued Operations Net Of Tax Attributable To Reporting Entity
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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0 USD
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us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
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us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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33000 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Tax
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33000 USD
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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">BUSINESS</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Hain Celestial Group, Inc., a Delaware corporation (collectively, along with its subsidiaries, the &#8220;Company,&#8221; and herein referred to as &#8220;Hain Celestial,&#8221; &#8220;we,&#8221; &#8220;us&#8221; and &#8220;our&#8221;), was founded in 1993 and is headquartered in Lake Success, New York. The Company&#8217;s mission has continued to evolve since its founding, with health and wellness being the core tenet &#8212; To Create and Inspire A Healthier Way of Life</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">TM</sup></font><font style="font-family:inherit;font-size:10pt;"> and be the leading marketer, manufacturer and seller of organic and natural, &#8220;better-for-you&#8221; products by anticipating and exceeding consumer expectations in providing quality, innovation, value and convenience. The Company is committed to growing sustainably while continuing to implement environmentally sound business practices and manufacturing processes. 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style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Earth&#8217;s Best</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, JASON</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;">, Live Clean</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> and Queen Helene</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> brands.&#160; </font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Discontinued Operations</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2018, the Company&#8217;s Board of Directors approved a plan to sell all of the operations of the Hain Pure Protein Corporation (&#8220;HPPC&#8221;) and EK Holdings, Inc. (&#8220;Empire&#8221;) operating segments, which are reported in the aggregate as the Hain Pure Protein reportable segment. These dispositions are being undertaken to reduce complexity in the Company&#8217;s operations and simplify the Company&#8217;s brand portfolio, in addition to allowing additional flexibility to focus on opportunities for growth and innovation in the Company&#8217;s more profitable core businesses.</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Collectively, these dispositions represent a&#160;strategic shift&#160;that will have a major impact on the Company&#8217;s operations and financial results and have been accounted for as discontinued operations. See Note 4, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Discontinued Operations, </font><font style="font-family:inherit;font-size:10pt;">for additional information.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;">Changes in Segments</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Effective July 1, 2017, due to changes to the Company&#8217;s internal management and reporting structure, the United Kingdom operations of the Ella&#8217;s Kitchen</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> brand (&#8220;Ella&#8217;s Kitchen UK&#8221;), which was previously included within the United States reportable segment, was moved to the United Kingdom reportable segment. See Note 16, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Segment</font><font style="font-family:inherit;font-size:10pt;"> </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Information</font><font style="font-family:inherit;font-size:10pt;">, for additional information on the Company&#8217;s operating and reportable segments.</font></div></div>

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