
| Fiscal Year 2020 | ||||||||
| Reported | Constant Currency | |||||||
| Adjusted EBITDA | $177 Million to $192 Million | $179 Million to $194 Million | ||||||
| % Growth | +7% to +16% | +8% to +18% | ||||||
| Adjusted EPS | $0.62 to $0.72 | $0.64 to $0.74 | ||||||
| % Growth | +3% to +20% | +7% to +23% | ||||||
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
| (unaudited and in thousands) | |||||||||||||||||||||||
| Cash flow provided by (used in) operating activities - continuing operations | $ | 20,729 | $ | 19,566 | $ | 17,148 | $ | (4) | |||||||||||||||
| Purchases of property, plant and equipment | (16,173) | (18,737) | (29,337) | (40,998) | |||||||||||||||||||
| Operating Free Cash Flow - continuing operations | $ | 4,556 | $ | 829 | $ | (12,189) | $ | (41,002) | |||||||||||||||
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
| (unaudited and in thousands) | |||||||||||||||||||||||
| Net loss | $ | (964) | $ | (66,501) | $ | (107,985) | $ | (103,926) | |||||||||||||||
| Net loss from discontinued operations | (2,816) | (34,714) | (104,884) | (49,052) | |||||||||||||||||||
| Net income (loss) from continuing operations | $ | 1,852 | $ | (31,787) | (3,101) | $ | (54,874) | ||||||||||||||||
| Provision (benefit) for income taxes | 1,020 | 5,097 | 489 | (4,869) | |||||||||||||||||||
| Interest expense, net | 4,000 | 4,884 | 8,552 | 8,688 | |||||||||||||||||||
| Depreciation and amortization | 13,219 | 12,205 | 27,142 | 25,065 | |||||||||||||||||||
| Equity in net loss of equity-method investees | 338 | 11 | 655 | 186 | |||||||||||||||||||
| Stock-based compensation, net | 3,083 | 1,776 | 5,820 | 1,562 | |||||||||||||||||||
| Stock-based compensation expense in connection with Chief Executive Officer Succession Agreement | — | 117 | — | 429 | |||||||||||||||||||
| Long-lived asset and intangibles impairment | 1,889 | 19,473 | 1,889 | 23,709 | |||||||||||||||||||
| Unrealized currency (gains) losses | (485) | 439 | 1,199 | 1,029 | |||||||||||||||||||
| EBITDA | $ | 24,916 | $ | 12,215 | 42,645 | 925 | |||||||||||||||||
| Productivity and transformation costs | 12,260 | 9,872 | 26,435 | 20,205 | |||||||||||||||||||
| Chief Executive Officer Succession Plan expense, net | — | 10,031 | — | 29,272 | |||||||||||||||||||
| Proceeds from insurance claim | — | — | (2,562) | — | |||||||||||||||||||
| Accounting review and remediation costs, net of insurance proceeds | — | 920 | — | 4,334 | |||||||||||||||||||
| SKU rationalization | 3,927 | 1,530 | 3,916 | 1,530 | |||||||||||||||||||
| Loss on sale of business | 1,783 | — | 1,783 | — | |||||||||||||||||||
| Plant closure related costs | 1,522 | 1,490 | 2,354 | 3,319 | |||||||||||||||||||
| Warehouse/manufacturing facility start-up costs | 639 | 1,708 | 2,518 | 6,307 | |||||||||||||||||||
| Litigation and related expenses | — | 122 | 48 | 691 | |||||||||||||||||||
| Adjusted EBITDA | $ | 45,047 | $ | 37,888 | $ | 77,137 | $ | 66,583 | |||||||||||||||
| THE HAIN CELESTIAL GROUP, INC. | ||||||||||||||
| Net Sales, Gross Profit and Operating Income (Loss) by Segment | ||||||||||||||
| (unaudited and in thousands) | ||||||||||||||
| North America | International | Corporate/Other | Total | |||||||||||
Net Sales | ||||||||||||||
| Net sales - Three months ended 12/31/19 | $ | 280,693 | $ | 226,091 | $ | — | $ | 506,784 | ||||||
| Net sales - Three months ended 12/31/18 | $ | 305,574 | $ | 227,992 | $ | — | $ | 533,566 | ||||||
| % change - FY'20 net sales vs. FY'19 net sales | (8.1) | % | (0.8) | % | (5.0) | % | ||||||||
| Gross Profit | ||||||||||||||
| Three months ended 12/31/19 | ||||||||||||||
| Gross profit | $ | 64,969 | $ | 40,638 | $ | — | $ | 105,607 | ||||||
Non-GAAP adjustments (1) | 4,439 | 1,590 | — | 6,029 | ||||||||||
| Adjusted gross profit | $ | 69,408 | $ | 42,228 | $ | — | $ | 111,636 | ||||||
| Gross margin | 23.1 | % | 18.0 | % | 20.8 | % | ||||||||
| Adjusted gross margin | 24.7 | % | 18.7 | % | 22.0 | % | ||||||||
| Three months ended 12/31/18 | ||||||||||||||
| Gross profit | $ | 57,410 | $ | 43,941 | $ | — | $ | 101,351 | ||||||
Non-GAAP adjustments (1) | 3,470 | 824 | — | 4,294 | ||||||||||
| Adjusted gross profit | $ | 60,880 | $ | 44,765 | $ | — | $ | 105,645 | ||||||
| Gross margin | 18.8 | % | 19.3 | % | 19.0 | % | ||||||||
| Adjusted gross margin | 19.9 | % | 19.6 | % | 19.8 | % | ||||||||
| Operating income (loss) | ||||||||||||||
| Three months ended 12/31/19 | ||||||||||||||
| Operating income (loss) | $ | 20,062 | $ | 12,899 | $ | (23,770) | $ | 9,191 | ||||||
Non-GAAP adjustments (1) | 4,965 | 3,647 | 11,729 | 20,341 | ||||||||||
| Adjusted operating income (loss) | $ | 25,027 | $ | 16,546 | $ | (12,041) | $ | 29,532 | ||||||
| Operating income margin | 7.1 | % | 5.7 | % | 1.8 | % | ||||||||
| Adjusted operating income margin | 8.9 | % | 7.3 | % | 5.8 | % | ||||||||
| Three months ended 12/31/18 | ||||||||||||||
| Operating income (loss) | $ | 9,563 | $ | 15,153 | $ | (45,596) | $ | (20,880) | ||||||
Non-GAAP adjustments (1) | 6,995 | 3,644 | 34,624 | 45,263 | ||||||||||
| Adjusted operating income (loss) | $ | 16,558 | $ | 18,797 | $ | (10,972) | $ | 24,383 | ||||||
| Operating income (loss) margin | 3.1 | % | 6.6 | % | (3.9) | % | ||||||||
| Adjusted operating income margin | 5.4 | % | 8.2 | % | 4.6 | % | ||||||||
| THE HAIN CELESTIAL GROUP, INC. | ||||||||||||||
| Net Sales, Gross Profit and Operating Income (Loss) by Segment | ||||||||||||||
| (unaudited and in thousands) | ||||||||||||||
| North America | International | Corporate/Other | Total | |||||||||||
Net Sales | ||||||||||||||
| Net sales - Six months ended 12/31/19 | $ | 552,394 | $ | 436,466 | $ | — | $ | 988,860 | ||||||
| Net sales - Six months ended 12/31/18 | $ | 596,765 | $ | 455,279 | $ | — | $ | 1,052,044 | ||||||
| % change - FY'20 net sales vs. FY'19 net sales | (7.4) | % | (4.1) | % | (6.0) | % | ||||||||
| Gross Profit | ||||||||||||||
| Six months ended 12/31/19 | ||||||||||||||
| Gross profit | $ | 127,330 | $ | 76,108 | $ | — | $ | 203,438 | ||||||
Non-GAAP adjustments (1) | 6,164 | 2,666 | — | 8,830 | ||||||||||
| Adjusted gross profit | $ | 133,494 | $ | 78,774 | $ | — | $ | 212,268 | ||||||
| Gross margin | 23.1 | % | 17.4 | % | 20.6 | % | ||||||||
| Adjusted gross margin | 24.2 | % | 18.0 | % | 21.5 | % | ||||||||
| Six months ended 12/31/18 | ||||||||||||||
| Gross profit | $ | 107,034 | $ | 83,225 | $ | — | $ | 190,259 | ||||||
Non-GAAP adjustments (1) | 8,799 | 2,357 | — | 11,156 | ||||||||||
| Adjusted gross profit | $ | 115,833 | $ | 85,582 | $ | — | $ | 201,415 | ||||||
| Gross margin | 17.9 | % | 18.3 | % | 18.1 | % | ||||||||
| Adjusted gross margin | 19.4 | % | 18.8 | % | 19.1 | % | ||||||||
| Operating income (loss) | ||||||||||||||
| Six months ended 12/31/19 | ||||||||||||||
| Operating income (loss) | $ | 35,194 | $ | 22,006 | $ | (45,554) | $ | 11,646 | ||||||
Non-GAAP adjustments (1) | 8,861 | 5,991 | 19,951 | 34,803 | ||||||||||
| Adjusted operating income (loss) | $ | 44,055 | $ | 27,997 | $ | (25,603) | $ | 46,449 | ||||||
| Operating income margin | 6.4 | % | 5.0 | % | 1.2 | % | ||||||||
| Adjusted operating income margin | 8.0 | % | 6.4 | % | 4.7 | % | ||||||||
| Six months ended 12/31/18 | ||||||||||||||
| Operating income (loss) | $ | 14,069 | $ | 20,813 | $ | (83,726) | $ | (48,844) | ||||||
Non-GAAP adjustments (1) | 13,821 | 10,290 | 66,119 | 90,230 | ||||||||||
| Adjusted operating income (loss) | $ | 27,890 | $ | 31,103 | $ | (17,607) | $ | 41,386 | ||||||
| Operating income (loss) margin | 2.4 | % | 4.6 | % | (4.6) | % | ||||||||
| Adjusted operating income margin | 4.7 | % | 6.8 | % | 3.9 | % | ||||||||
| THE HAIN CELESTIAL GROUP, INC. | |||||||||||
| Consolidated Balance Sheets | |||||||||||
| (unaudited and in thousands) | |||||||||||
| December 31, | June 30, | ||||||||||
| 2019 | 2019 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 37,024 | $ | 31,017 | |||||||
| Accounts receivable, net | 206,583 | 209,990 | |||||||||
| Inventories | 283,127 | 299,341 | |||||||||
| Prepaid expenses and other current assets | 50,019 | 51,391 | |||||||||
| Current assets of discontinued operations | — | 110,048 | |||||||||
| Total current assets | 576,753 | 701,787 | |||||||||
| Property, plant and equipment, net | 298,558 | 287,845 | |||||||||
| Goodwill | 879,705 | 875,881 | |||||||||
| Trademarks and other intangible assets, net | 378,796 | 380,286 | |||||||||
| Investments and joint ventures | 18,990 | 18,890 | |||||||||
| Operating lease right of use assets | 83,845 | — | |||||||||
| Other assets | 48,298 | 58,764 | |||||||||
| Noncurrent assets of discontinued operations | — | 259,167 | |||||||||
| Total assets | $ | 2,284,945 | $ | 2,582,620 | |||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 187,376 | $ | 219,957 | |||||||
| Accrued expenses and other current liabilities | 123,272 | 114,265 | |||||||||
| Current portion of long-term debt | 1,387 | 17,232 | |||||||||
| Current liabilities of discontinued operations | — | 31,703 | |||||||||
| Total current liabilities | 312,035 | 383,157 | |||||||||
| Long-term debt, less current portion | 324,864 | 613,537 | |||||||||
| Deferred income taxes | 35,012 | 34,757 | |||||||||
| Operating lease liabilities, noncurrent portion | 76,726 | — | |||||||||
| Other noncurrent liabilities | 15,225 | 14,489 | |||||||||
| Noncurrent liabilities of discontinued operations | — | 17,361 | |||||||||
| Total liabilities | 763,862 | 1,063,301 | |||||||||
| Stockholders' equity: | |||||||||||
| Common stock | 1,091 | 1,088 | |||||||||
| Additional paid-in capital | 1,164,618 | 1,158,257 | |||||||||
| Retained earnings | 586,593 | 695,017 | |||||||||
| Accumulated other comprehensive loss | (120,197) | (225,004) | |||||||||
| 1,632,105 | 1,629,358 | ||||||||||
| Treasury stock | (111,022) | (110,039) | |||||||||
| Total stockholders' equity | 1,521,083 | 1,519,319 | |||||||||
| Total liabilities and stockholders' equity | $ | 2,284,945 | $ | 2,582,620 | |||||||
| THE HAIN CELESTIAL GROUP, INC. | |||||||||||||||||||||||
| Consolidated Statements of Operations | |||||||||||||||||||||||
| (unaudited and in thousands, except per share amounts) | |||||||||||||||||||||||
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
| Net sales | $ | 506,784 | $ | 533,566 | $ | 988,860 | $ | 1,052,044 | |||||||||||||||
| Cost of sales | 401,177 | 432,215 | 785,422 | 861,785 | |||||||||||||||||||
| Gross profit | 105,607 | 101,351 | 203,438 | 190,259 | |||||||||||||||||||
| Selling, general and administrative expenses | 79,078 | 78,496 | 159,758 | 154,473 | |||||||||||||||||||
| Amortization of acquired intangibles | 3,189 | 3,322 | 6,272 | 6,681 | |||||||||||||||||||
| Productivity and transformation costs | 12,260 | 9,872 | 26,435 | 20,205 | |||||||||||||||||||
| Chief Executive Officer Succession Plan expense, net | — | 10,148 | — | 29,701 | |||||||||||||||||||
| Proceeds from insurance claim | — | — | (2,562) | — | |||||||||||||||||||
| Accounting review and remediation costs, net of insurance proceeds | — | 920 | — | 4,334 | |||||||||||||||||||
| Long-lived asset and intangibles impairment | 1,889 | 19,473 | 1,889 | 23,709 | |||||||||||||||||||
| Operating income (loss) | 9,191 | (20,880) | 11,646 | (48,844) | |||||||||||||||||||
| Interest and other financing expense, net | 4,737 | 5,428 | 11,031 | 9,742 | |||||||||||||||||||
| Other expense, net | 1,244 | 371 | 2,572 | 971 | |||||||||||||||||||
| Income (loss) from continuing operations before income taxes and equity in net loss of equity-method investees | 3,210 | (26,679) | (1,957) | (59,557) | |||||||||||||||||||
| Provision (benefit) for income taxes | 1,020 | 5,097 | 489 | (4,869) | |||||||||||||||||||
| Equity in net loss of equity-method investees | 338 | 11 | 655 | 186 | |||||||||||||||||||
| Net income (loss) from continuing operations | $ | 1,852 | $ | (31,787) | $ | (3,101) | $ | (54,874) | |||||||||||||||
| Net loss from discontinued operations, net of tax | (2,816) | (34,714) | (104,884) | (49,052) | |||||||||||||||||||
| Net loss | $ | (964) | $ | (66,501) | $ | (107,985) | $ | (103,926) | |||||||||||||||
| Net income (loss) per common share: | |||||||||||||||||||||||
| Basic net income (loss) per common share from continuing operations | $ | 0.02 | $ | (0.31) | $ | (0.03) | $ | (0.53) | |||||||||||||||
| Basic net loss per common share from discontinued operations | (0.03) | (0.33) | (1.01) | (0.47) | |||||||||||||||||||
| Basic net loss per common share | $ | (0.01) | $ | (0.64) | $ | (1.04) | $ | (1.00) | |||||||||||||||
| Diluted net income (loss) per common share from continuing operations | $ | 0.02 | $ | (0.31) | $ | (0.03) | $ | (0.53) | |||||||||||||||
| Diluted net loss per common share from discontinued operations | (0.03) | (0.33) | (1.01) | (0.47) | |||||||||||||||||||
| Diluted net loss per common share | $ | (0.01) | $ | (0.64) | $ | (1.04) | $ | (1.00) | |||||||||||||||
| Shares used in the calculation of net income (loss) per common share: | |||||||||||||||||||||||
| Basic | 104,318 | 104,056 | 104,272 | 104,009 | |||||||||||||||||||
| Diluted | 104,619 | 104,056 | 104,272 | 104,009 | |||||||||||||||||||
| THE HAIN CELESTIAL GROUP, INC. | |||||||||||||||||||||||
| Consolidated Statements of Cash Flows | |||||||||||||||||||||||
| (unaudited and in thousands) | |||||||||||||||||||||||
| Three Months Ended December 31, | Six Months Ended December 31, | ||||||||||||||||||||||
| 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||||||||||
| Net loss | $ | (964) | $ | (66,501) | $ | (107,985) | $ | (103,926) | |||||||||||||||
| Net loss from discontinued operations | (2,816) | (34,714) | (104,884) | (49,052) | |||||||||||||||||||
| Net income (loss) from continuing operations | 1,852 | (31,787) | (3,101) | $ | (54,874) | ||||||||||||||||||
| Adjustments to reconcile net income (loss) from continuing operations to net cash provided by (used in) operating activities from continuing operations: | |||||||||||||||||||||||
| Depreciation and amortization | 13,219 | 12,205 | 27,142 | 25,065 | |||||||||||||||||||
| Deferred income taxes | (751) | (9,448) | (5,155) | (22,666) | |||||||||||||||||||
| Chief Executive Officer Succession Plan expense, net | — | 10,031 | — | 29,272 | |||||||||||||||||||
| Equity in net loss of equity-method investees | 338 | 11 | 655 | 186 | |||||||||||||||||||
| Stock-based compensation, net | 3,083 | 1,893 | 5,820 | 1,991 | |||||||||||||||||||
| Long-lived asset and intangibles impairment | 1,889 | 19,473 | 1,889 | 23,709 | |||||||||||||||||||
| Other non-cash items, net | 897 | 444 | 2,661 | 1,285 | |||||||||||||||||||
| Increase (decrease) in cash attributable to changes in operating assets and liabilities: | |||||||||||||||||||||||
| Accounts receivable | 8,393 | 5,774 | 7,540 | 9,540 | |||||||||||||||||||
| Inventories | 14,896 | 12,892 | 9,389 | (5,748) | |||||||||||||||||||
| Other current assets | (12,328) | (1,531) | 1,895 | (1,528) | |||||||||||||||||||
| Other assets and liabilities | (1,386) | 4,626 | (1,242) | 4,594 | |||||||||||||||||||
| Accounts payable and accrued expenses | (9,373) | (5,017) | (30,345) | (10,830) | |||||||||||||||||||
| Net cash provided by (used in) operating activities - continuing operations | 20,729 | 19,566 | 17,148 | (4) | |||||||||||||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||||||||||
| Purchases of property and equipment | (16,173) | (18,737) | (29,337) | (40,998) | |||||||||||||||||||
| Proceeds from sale of businesses and other | 13,120 | 4,515 | 13,120 | 3,863 | |||||||||||||||||||
| Net cash used in investing activities - continuing operations | (3,053) | (14,222) | (16,217) | (37,135) | |||||||||||||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||||||||||
| Borrowings under bank revolving credit facility | 67,000 | 80,000 | 147,000 | 150,000 | |||||||||||||||||||
| Repayments under bank revolving credit facility | (67,000) | (77,646) | (245,500) | (137,646) | |||||||||||||||||||
| Repayments under term loan | — | (3,750) | (206,250) | (7,500) | |||||||||||||||||||
| (Funding of) proceeds from discontinued operations entities | (2,266) | 16,661 | 309,929 | 13,550 | |||||||||||||||||||
| (Repayments) borrowings of other debt, net | (510) | 175 | (501) | (601) | |||||||||||||||||||
| Shares withheld for payment of employee payroll taxes | (672) | (1,943) | (984) | (2,922) | |||||||||||||||||||
| Net cash (used in) provided by financing activities - continuing operations | (3,448) | 13,497 | 3,694 | 14,881 | |||||||||||||||||||
| Effect of exchange rate changes on cash - continuing operations | 2,274 | (822) | 1,382 | (1,492) | |||||||||||||||||||
| CASH FLOWS FROM DISCONTINUED OPERATIONS | |||||||||||||||||||||||
| Cash provided by (used in) operating activities | 2,339 | 11,728 | (5,687) | (2,859) | |||||||||||||||||||
| Cash (used in) provided by investing activities | (4,605) | (1,551) | 301,815 | (3,472) | |||||||||||||||||||
| Cash provided by (used in) financing activities | 2,266 | (9,965) | (304,100) | (4,417) | |||||||||||||||||||
| Effect of exchange rate changes on cash - discontinued operations | — | (87) | (537) | (477) | |||||||||||||||||||
| Net cash flows provided by (used in) discontinued operations | — | 125 | (8,509) | (11,225) | |||||||||||||||||||
| Net increase (decrease) in cash and cash equivalents | 16,502 | 18,144 | (2,502) | (34,975) | |||||||||||||||||||
| Cash and cash equivalents at beginning of period | 20,522 | 59,899 | 39,526 | 113,018 | |||||||||||||||||||
| Cash and cash equivalents and restricted cash at end of period | $ | 37,024 | $ | 78,043 | $ | 37,024 | $ | 78,043 | |||||||||||||||
| Less: cash and cash equivalents of discontinued operations | — | (17,098) | — | $ | (17,098) | ||||||||||||||||||
| Cash and cash equivalents and restricted cash of continuing operations at end of period | $ | 37,024 | $ | 60,945 | $ | 37,024 | $ | 60,945 | |||||||||||||||
| THE HAIN CELESTIAL GROUP, INC. | |||||||||||||||||||||||
| Reconciliation of GAAP Results to Non-GAAP Measures | |||||||||||||||||||||||
| (unaudited and in thousands) | |||||||||||||||||||||||
| Three Months Ended December 31, | |||||||||||||||||||||||
| 2019 GAAP | Adjustments | 2019 Adjusted | 2018 GAAP | Adjustments | 2018 Adjusted | ||||||||||||||||||
| Net sales | $ | 506,784 | $ | — | $ | 506,784 | $ | 533,566 | $ | — | $ | 533,566 | |||||||||||
| Cost of sales | 401,177 | (6,029) | 395,148 | 432,215 | (4,294) | 427,921 | |||||||||||||||||
| Gross profit | 105,607 | 6,029 | 111,636 | 101,351 | 4,294 | 105,645 | |||||||||||||||||
Operating expenses(a) | 84,156 | (2,052) | 82,104 | 101,291 | (20,029) | 81,262 | |||||||||||||||||
| Productivity and transformation costs | 12,260 | (12,260) | — | 9,872 | (9,872) | — | |||||||||||||||||
| Chief Executive Officer Succession Plan expense, net | — | — | — | 10,148 | (10,148) | — | |||||||||||||||||
| Accounting review and remediation costs, net of insurance proceeds | — | — | — | 920 | (920) | — | |||||||||||||||||
| Operating income (loss) | 9,191 | 20,341 | 29,532 | (20,880) | 45,263 | 24,383 | |||||||||||||||||
Interest and other expense (income), net(b) | 5,981 | (1,298) | 4,683 | 5,799 | (439) | 5,360 | |||||||||||||||||
| Provision (benefit) for income taxes | 1,020 | 5,889 | 6,909 | 5,097 | 934 | 6,031 | |||||||||||||||||
| Net income (loss) from continuing operations | 1,852 | 15,750 | 17,602 | (31,787) | 44,768 | 12,981 | |||||||||||||||||
| Net (loss) income from discontinued operations, net of tax | (2,816) | 2,816 | — | (34,714) | 34,714 | — | |||||||||||||||||
| Net (loss) income | (964) | 18,566 | 17,602 | (66,501) | 79,482 | 12,981 | |||||||||||||||||
| Diluted net income (loss) per common share from continuing operations | 0.02 | 0.15 | 0.17 | (0.31) | 0.43 | 0.12 | |||||||||||||||||
| Diluted net (loss) income per common share from discontinued operations | (0.03) | 0.03 | — | (0.33) | 0.33 | — | |||||||||||||||||
| Diluted net (loss) income per common share | (0.01) | 0.18 | 0.17 | (0.64) | 0.76 | 0.12 | |||||||||||||||||
| THE HAIN CELESTIAL GROUP, INC. | |||||||||||
| Reconciliation of GAAP Results to Non-GAAP Measures | |||||||||||
| (unaudited and in thousands) | |||||||||||
| Detail of Adjustments: | |||||||||||
| Three Months Ended December 31, | |||||||||||
| 2019 | 2018 | ||||||||||
| SKU rationalization | $ | 3,927 | $ | 1,530 | |||||||
| Plant closure related costs | 1,626 | 1,056 | |||||||||
| Warehouse/manufacturing facility start-up costs | 476 | 1,708 | |||||||||
| Cost of sales | 6,029 | 4,294 | |||||||||
| Gross profit | 6,029 | 4,294 | |||||||||
| Intangibles impairment | 1,889 | 17,900 | |||||||||
| Warehouse/manufacturing facility start-up costs | 163 | — | |||||||||
| Litigation and related expenses | — | 122 | |||||||||
| Long-lived asset impairment charge associated with plant closure | — | 1,573 | |||||||||
| Plant closure related costs | — | 434 | |||||||||
Operating expenses(a) | 2,052 | 20,029 | |||||||||
| Productivity and transformation costs | 12,260 | 9,872 | |||||||||
| Productivity and transformation costs | 12,260 | 9,872 | |||||||||
| Chief Executive Officer Succession Plan expense, net | — | 10,148 | |||||||||
| Chief Executive Officer Succession Plan expense, net | — | 10,148 | |||||||||
| Accounting review and remediation costs | — | 920 | |||||||||
| Accounting review and remediation costs | — | 920 | |||||||||
| Operating income (loss) | 20,341 | 45,263 | |||||||||
| Unrealized currency (gains) losses | (485) | 439 | |||||||||
| Loss on sale of business | 1,783 | — | |||||||||
Interest and other expense (income), net(b) | 1,298 | 439 | |||||||||
| Income tax related adjustments | (5,889) | (934) | |||||||||
| Provision (benefit) for income taxes | (5,889) | (934) | |||||||||
| Net income (loss) from continuing operations | $ | 15,750 | $ | 44,768 | |||||||
| THE HAIN CELESTIAL GROUP, INC. | |||||||||||||||||||||||
| Reconciliation of GAAP Results to Non-GAAP Measures | |||||||||||||||||||||||
| (unaudited and in thousands) | |||||||||||||||||||||||
| Six Months Ended December 31, | |||||||||||||||||||||||
| 2019 GAAP | Adjustments | 2019 Adjusted | 2018 GAAP | Adjustments | 2018 Adjusted | ||||||||||||||||||
| Net sales | $ | 988,860 | $ | — | $ | 988,860 | $ | 1,052,044 | $ | — | $ | 1,052,044 | |||||||||||
| Cost of sales | 785,422 | (8,830) | 776,592 | 861,785 | (11,156) | 850,629 | |||||||||||||||||
| Gross profit | 203,438 | 8,830 | 212,268 | 190,259 | 11,156 | 201,415 | |||||||||||||||||
Operating expenses(a) | 167,919 | (2,100) | 165,819 | 184,863 | (24,834) | 160,029 | |||||||||||||||||
| Productivity and transformation costs | 26,435 | (26,435) | — | 20,205 | (20,205) | — | |||||||||||||||||
| Chief Executive Officer Succession Plan expense, net | — | — | — | 29,701 | (29,701) | — | |||||||||||||||||
| Proceeds from insurance claim | (2,562) | 2,562 | — | — | — | — | |||||||||||||||||
| Accounting review and remediation costs, net of insurance proceeds | — | — | — | 4,334 | (4,334) | — | |||||||||||||||||
| Operating income (loss) | 11,646 | 34,803 | 46,449 | (48,844) | 90,230 | 41,386 | |||||||||||||||||
Interest and other expense (income), net(b) | 13,603 | (3,957) | 9,646 | 10,713 | (1,029) | 9,684 | |||||||||||||||||
| Provision (benefit) for income taxes | 489 | 9,689 | 10,178 | (4,869) | 14,401 | 9,532 | |||||||||||||||||
| Net (loss) income from continuing operations | (3,101) | 29,071 | 25,970 | (54,874) | 76,858 | 21,984 | |||||||||||||||||
| Net (loss) income from discontinued operations, net of tax | (104,884) | 104,884 | — | (49,052) | 49,052 | — | |||||||||||||||||
| Net (loss) income | (107,985) | 133,955 | 25,970 | (103,926) | 125,910 | 21,984 | |||||||||||||||||
| Diluted net (loss) income per common share from continuing operations | (0.03) | 0.28 | 0.25 | (0.53) | 0.74 | 0.21 | |||||||||||||||||
| Diluted net (loss) income per common share from discontinued operations | (1.01) | 1.01 | — | (0.47) | 0.47 | — | |||||||||||||||||
| Diluted net (loss) income per common share | (1.04) | 1.28 | 0.25 | (1.00) | 1.21 | 0.21 | |||||||||||||||||
| THE HAIN CELESTIAL GROUP, INC. | |||||||||||
| Reconciliation of GAAP Results to Non-GAAP Measures | |||||||||||
| (unaudited and in thousands) | |||||||||||
| Detail of Adjustments: | |||||||||||
| Six Months Ended December 31, | |||||||||||
| 2019 | 2018 | ||||||||||
| SKU rationalization | $ | 3,916 | $ | 1,530 | |||||||
| Plant closure related costs | 2,559 | 3,319 | |||||||||
| Warehouse/manufacturing facility start-up costs | 2,355 | 6,307 | |||||||||
| Cost of sales | 8,830 | 11,156 | |||||||||
| Gross profit | 8,830 | 11,156 | |||||||||
| Intangibles impairment | 1,889 | 17,900 | |||||||||
| Warehouse/manufacturing facility start-up costs | 163 | — | |||||||||
| Litigation and related expenses | 48 | 691 | |||||||||
| Long-lived asset impairment charge associated with plant closure | — | 5,809 | |||||||||
| Plant closure related costs | — | 434 | |||||||||
Operating expenses(a) | 2,100 | 24,834 | |||||||||
| Productivity and transformation costs | 26,435 | 20,205 | |||||||||
| Productivity and transformation costs | 26,435 | 20,205 | |||||||||
| Chief Executive Officer Succession Plan expense, net | — | 29,701 | |||||||||
| Chief Executive Officer Succession Plan expense, net | — | 29,701 | |||||||||
| Proceeds from insurance claims | (2,562) | — | |||||||||
| Proceeds from insurance claims | (2,562) | — | |||||||||
| Accounting review and remediation costs | — | 4,334 | |||||||||
| Accounting review and remediation costs | — | 4,334 | |||||||||
| Operating income (loss) | 34,803 | 90,230 | |||||||||
| Loss on sale of business | 1,783 | — | |||||||||
| Unrealized currency losses | 1,199 | 1,029 | |||||||||
| Deferred financing cost write-off | 975 | — | |||||||||
Interest and other expense (income), net(b) | 3,957 | 1,029 | |||||||||
| Income tax related adjustments | (9,689) | (14,401) | |||||||||
| Provision (benefit) for income taxes | (9,689) | (14,401) | |||||||||
| Net (loss) income from continuing operations | $ | 29,071 | $ | 76,858 | |||||||
| THE HAIN CELESTIAL GROUP, INC. | |||||||||||||||||
| Net Sales Growth at Constant Currency | |||||||||||||||||
| (unaudited and in thousands) | |||||||||||||||||
| Hain Consolidated | North America | International | |||||||||||||||
| Net sales - Three months ended 12/31/19 | $ | 506,784 | $ | 280,693 | $ | 226,091 | |||||||||||
| Impact of foreign currency exchange | 2,012 | (69) | 2,081 | ||||||||||||||
| Net sales on a constant currency basis - Three months ended 12/31/19 | $ | 508,796 | $ | 280,624 | $ | 228,172 | |||||||||||
| Net sales - Three months ended 12/31/18 | $ | 533,566 | $ | 305,574 | $ | 227,992 | |||||||||||
| Net sales (decline) growth on a constant currency basis | (4.6) | % | (8.2) | % | 0.1 | % | |||||||||||
| Hain Consolidated | North America | International | |||||||||||||||
| Net sales - Six months ended 12/31/19 | $ | 988,860 | $ | 552,394 | $ | 436,466 | |||||||||||
| Impact of foreign currency exchange | 13,706 | 287 | 13,419 | ||||||||||||||
| Net sales on a constant currency basis - Six months ended 12/31/19 | $ | 1,002,566 | $ | 552,681 | $ | 449,885 | |||||||||||
| Net sales - Six months ended 12/31/18 | $ | 1,052,044 | $ | 596,765 | $ | 455,279 | |||||||||||
| Net sales decline on a constant currency basis | (4.7) | % | (7.4) | % | (1.2) | % | |||||||||||
| Net Sales Growth at Constant Currency and Adjusted for Divestitures and SKU Rationalization | |||||||||||||||||
| Hain Consolidated | North America | International | |||||||||||||||
| Net sales on a constant currency basis - Three months ended 12/31/19 | $ | 508,796 | $ | 280,624 | $ | 228,172 | |||||||||||
| Net sales - Three months ended 12/31/18 | $ | 533,566 | $ | 305,574 | $ | 227,992 | |||||||||||
| Divestitures | (7,024) | (7,024) | — | ||||||||||||||
| SKU rationalization | (13,811) | (12,239) | (1,572) | ||||||||||||||
| Net sales on a constant currency basis adjusted for divestitures and SKU rationalization - Three months ended 12/31/18 | $ | 512,731 | $ | 286,311 | $ | 226,420 | |||||||||||
| Net sales (decline) growth on a constant currency basis adjusted for divestitures and SKU rationalization | (0.8) | % | (2.0) | % | 0.8 | % | |||||||||||
| Hain Consolidated | North America | International | |||||||||||||||
| Net sales on a constant currency basis - Six months ended 12/31/19 | $ | 1,002,566 | $ | 552,681 | $ | 449,885 | |||||||||||
| Net sales - Six months ended 12/31/18 | $ | 1,052,044 | $ | 596,765 | $ | 455,279 | |||||||||||
| Divestitures | (8,955) | (8,955) | — | ||||||||||||||
| SKU rationalization | (33,281) | (26,028) | (7,253) | ||||||||||||||
| Net sales on a constant currency basis adjusted for divestitures and SKU rationalization - Six months ended 12/31/18 | $ | 1,009,808 | $ | 561,782 | $ | 448,026 | |||||||||||
| Net sales (decline) growth on a constant currency basis adjusted for divestitures and SKU rationalization | (0.7) | % | (1.6) | % | 0.4 | % | |||||||||||
| THE HAIN CELESTIAL GROUP, INC. | |||||||||||||||||
| Net Sales Growth at Constant Currency Continued | |||||||||||||||||
| (unaudited and in thousands) | |||||||||||||||||
| Adjusted EBITDA Growth at Constant Currency | |||||||||||||||||
| Hain Consolidated | North America | International | |||||||||||||||
| Adjusted EBITDA - Three months ended 12/31/19 | $ | 45,047 | $ | 30,141 | $ | 25,148 | |||||||||||
| Impact of foreign currency exchange | 264 | (11) | 276 | ||||||||||||||
| Adjusted EBITDA on a constant currency basis - Three months ended 12/31/19 | $ | 45,311 | $ | 30,130 | $ | 25,424 | |||||||||||
| Net sales on a constant currency basis - Three months ended 12/31/19 | $ | 508,796 | $ | 280,624 | $ | 228,172 | |||||||||||
| Adjusted EBITDA growth on a constant currency basis | 8.9 | % | 10.7 | % | 11.1 | % | |||||||||||
| Hain Consolidated | North America | International | |||||||||||||||
| Adjusted EBITDA - Six months ended 12/31/19 | $ | 77,137 | $ | 54,180 | $ | 44,859 | |||||||||||
| Impact of foreign currency exchange | 1,335 | 24 | 1,312 | ||||||||||||||
| Adjusted EBITDA on a constant currency basis - Six months ended 12/31/19 | $ | 78,472 | $ | 54,204 | $ | 46,171 | |||||||||||
| Net sales on a constant currency basis - Six months ended 12/31/19 | $ | 1,002,566 | $ | 552,681 | $ | 449,885 | |||||||||||
| Adjusted EBITDA growth on a constant currency basis | 7.8 | % | 9.8 | % | 10.3 | % | |||||||||||
| THE HAIN CELESTIAL GROUP, INC. | |||||||||||
| Segment EBITDA and Adjusted EBITDA | |||||||||||
| Three Months Ended | |||||||||||
| (unaudited and in thousands) | |||||||||||
| North America | |||||||||||
| December 31, 2019 | December 31, 2018 | ||||||||||
| Operating Income | $ | 20,062 | $ | 9,563 | |||||||
| Depreciation and amortization | 4,201 | 4,269 | |||||||||
| Long-lived asset impairment | — | 1,510 | |||||||||
| Other | (838) | 610 | |||||||||
| EBITDA | $ | 23,425 | $ | 15,952 | |||||||
| Productivity and transformation costs | 332 | 2,017 | |||||||||
| SKU rationalization | 3,927 | 1,530 | |||||||||
| Loss on sale of business | 1,783 | — | |||||||||
| Warehouse/manufacturing facility start-up costs | 639 | 1,708 | |||||||||
| Plant closure related costs | 35 | 231 | |||||||||
| Adjusted EBITDA | $ | 30,141 | $ | 21,438 | |||||||
| International | |||||||||||
| December 31, 2019 | December 31, 2018 | ||||||||||
| Operating Income | $ | 12,899 | $ | 15,153 | |||||||
| Depreciation and amortization | 8,339 | 7,502 | |||||||||
| Long-lived asset impairment | — | 62 | |||||||||
| Other | 367 | 95 | |||||||||
| EBITDA | $ | 21,605 | $ | 22,812 | |||||||
| Productivity and transformation costs | 2,056 | 2,349 | |||||||||
| Plant closure related costs | 1,487 | 1,232 | |||||||||
| Adjusted EBITDA | $ | 25,148 | $ | 26,393 | |||||||
| THE HAIN CELESTIAL GROUP, INC. | |||||||||||
| Segment EBITDA and Adjusted EBITDA | |||||||||||
| Six Months Ended | |||||||||||
| (unaudited and in thousands) | |||||||||||
| North America | |||||||||||
| December 31, 2019 | December 31, 2018 | ||||||||||
| Operating Income | $ | 35,194 | $ | 14,069 | |||||||
| Depreciation and amortization | 8,549 | 8,544 | |||||||||
| Long-lived asset impairment | — | 1,503 | |||||||||
| Other | (173) | 565 | |||||||||
| EBITDA | $ | 43,570 | $ | 24,681 | |||||||
| Productivity and transformation costs | 2,500 | 3,521 | |||||||||
| SKU rationalization | 3,737 | 1,530 | |||||||||
| Warehouse/manufacturing facility start-up costs | 2,518 | 6,307 | |||||||||
| Loss on sale of business | 1,783 | — | |||||||||
| Plant closure related costs | 72 | 960 | |||||||||
| Adjusted EBITDA | $ | 54,180 | $ | 36,999 | |||||||
| International | |||||||||||
| December 31, 2019 | December 31, 2018 | ||||||||||
| Operating Income | $ | 22,006 | $ | 20,813 | |||||||
| Depreciation and amortization | 16,265 | 15,674 | |||||||||
| Long-lived asset impairment | — | 4,305 | |||||||||
| Other | 799 | 26 | |||||||||
| EBITDA | $ | 39,070 | $ | 40,818 | |||||||
| Productivity and transformation costs | 3,328 | 3,202 | |||||||||
| Plant closure related costs | 2,282 | 2,331 | |||||||||
| SKU rationalization | 179 | — | |||||||||
| Litigation and related expenses | — | 19 | |||||||||
| Adjusted EBITDA | $ | 44,859 | $ | 46,370 | |||||||