Attached files
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| 8-K - FORM 8-K - Vitamin Shoppe, Inc. | d491041d8k.htm |
Exhibit 99.1
| VITAMIN SHOPPE, INC. 2101 91st Street North Bergen, NJ07047 (201) 624-2900 www.vitaminshoppe.com |
NEWS RELEASE |
Vitamin Shoppe, Inc. Announces Fourth Quarter and Full Year 2012 Results
4Q12 Highlights:
| • | 4Q12 Comparable store sales grew 5.2%, includes an estimated 1.6% negative impact from Superstorm Sandy |
| • | E-commerce revenues increased 13.4% on a comparable basis, 6th consecutive quarter of double-digit growth |
| • | Fully diluted EPS of $0.32, includes impact from Superstorm Sandy and acquisition and start-up costs |
| • | Opened 13 new stores in the U.S. |
| • | Opened first 2 stores in Canada |
NORTH BERGEN, N.J., February 26, 2013 — Vitamin Shoppe, Inc. (NYSE: VSI), a leading specialty retailer and direct marketer of nutritional products, today announced preliminary results for its fiscal fourth quarter ended December 29, 2012. Fiscal fourth quarter 2012 was a 13-week quarter while fiscal fourth quarter 2011 was 14 weeks. On a reported basis, net income per diluted share for fiscal fourth quarter 2012 was $0.32. This includes an estimated negative $0.08 per share impact resulting from Superstorm Sandy, the Super Supplements acquisition and Canadian start-up costs. (See Table 3.)
Tony Truesdale, Chief Executive Officer of the Company commented, “I am very pleased that we delivered another quarter and year of strong growth despite the challenges of Superstorm Sandy that we faced in the fourth quarter. Our brand and commitment to customer service, whether it is in the stores or on our website, is resonating with consumers. I am pleased that we have delivered positive comparable store sales for 29 consecutive quarters and 19 consecutive years. This performance is a testament to all the hard work and dedication that everyone at the Vitamin Shoppe puts forth every day and I would like to thank every one of them for making these achievements possible.”
Mr. Truesdale further commented, “Our performance in 2012 reflects the strength of our business model and our improving financial position provides the necessary resources to fund our growth. Initiatives undertaken in the past year, including accelerating new product development, improving our customers online shopping experience, testing small market stores and opening our first stores in Canada have positioned us well for long-term sustainable growth.”
Fiscal Fourth Quarter 2012 Results
Net sales in fiscal fourth quarter 2012 were $218.9 million compared to $214.9 million in the same period of the prior year. Sales growth in the quarter was driven by: 1) a 5.2% increase in comparable sales, 2) growth from new stores, and, 3) a 13.4% increase in ecommerce sales. Sales growth was partially offset by the impact of Superstorm Sandy which negatively impacted comparable sales by 1.6%. When compared with the same period in the prior year, fiscal fourth quarter 2012 had one less selling week. As reported last year, the extra week in fiscal fourth quarter 2011 contributed $15.6 million in revenue.
The Company opened 15 stores in the quarter and 54 for the full year. Total store count was 579 as of December 29, 2012, compared with 528 on December 31, 2011 and included the first two stores in Canada.
Cost of goods sold, which includes product, warehouse, distribution and occupancy costs, increased $2.2 million, or 1.5%, to $142.5 million for the three months ended December 29, 2012, compared with $140.3 million for the three months ended December 31, 2011.
Gross profit increased $1.9 million, or 2.5%, to $76.4 million for the fiscal 2012 fourth quarter, compared with $74.5 million for fiscal fourth quarter 2011. Gross profit as a percentage of net sales was 34.9% for the quarter ended December 29, 2012, up from 34.7% in fiscal fourth quarter 2011.
Selling, general and administrative expenses (SG&A), including operating payroll and related benefits, advertising and promotion expense, depreciation and amortization, and other SG&A, increased $3.4 million, or 6.0%, to $59.9 million for the quarter ended December 29, 2012, compared with $56.5 million for the quarter ended December 31, 2011. SG&A as a percentage of net sales were 27.4% for the quarter ended December 29, 2012. SG&A includes transaction related expenses for the Super Supplements acquisition of $1.3 million and Canadian start-up costs of approximately $0.4 million. SG&A expenses in fourth quarter 2011 include store closing and impairment expenses of $1.3 million. (See Table 3.) Adjusted SG&A as a percentage of net
sales was 26.1% up from an adjusted 25.9% in fiscal fourth quarter 2011. This increase was primarily due to higher depreciation and amortization expenses.
Income from operations in fiscal fourth quarter 2012 was $16.5 million compared to $18.0 million in fiscal fourth quarter 2011. Income from operations for the quarter ended December 31, 2011, included $3.5 million attributable to the extra week. As a percentage of net sales, income from operations was 7.5% for the fiscal 2012 fourth quarter, compared with 8.4% for fiscal fourth quarter 2011. Adjusted operating margin was 9.1% in fiscal 4Q12 and 7.9% in fiscal 4Q11. (See Table 3.)
Net income was $9.7 million for fiscal fourth quarter 2012, compared with $9.4 million for fiscal fourth quarter 2011. Adjusted net income in fiscal fourth quarter 2012 was $12.1 million compared to $9.3 million in the same period of the prior year. (See Table 3.) This was primarily attributable to stronger sales and margin improvement.
Reported earnings per diluted share (EPS) were $0.32 in fiscal fourth quarter 2012. Adjusted EPS was $0.40 in fiscal fourth quarter 2012, compared with adjusted fourth quarter 2011 EPS of $0.31. (See Table 3.)
Balance Sheet and Cash Flow
Cash and equivalents at December 29, 2012 were $81 million, of which approximately $50 million was utilized in February of fiscal 2013 to complete the acquisition of Super Supplements. Capital expenditures were $12.2 million in the quarter and $30.8 million for the full year. Capital expenditures were used primarily for the build-out of new stores, improvements to existing stores, as well as computer equipment related to those stores. Additionally, approximately $5.0 million was expended in fiscal 2012 related to the new distribution center.
Fiscal 2012 Highlights:
| • | Comparable store sales grew 8.2%, the highest annual level since 2003 |
| • | Net sales increased 11.0% |
| • | Operating income rose 29.3% |
| • | Operating margin of 10.5% |
| • | Fully diluted EPS of $2.02 |
| • | Opened 54 stores during the year, including first two in Canada |
2013 Outlook
For the current year management expects:
| • | Approximately 50 new stores |
| • | Comparable store sales growth in mid-single digits for the year |
| • | Capital expenditures of approximately $45—$50 million, which includes capital for the new distribution center |
| • | Depreciation & amortization of approximately $28 million which includes the additional depreciation from the Super Supplements acquisition. This figure is subject to change pending finalization of purchase accounting for the acquisition |
| • | Super Supplements acquisition is expected to be dilutive to earnings per share by approximately $0.03 which includes transaction and integration costs |
| • | Fully diluted shares outstanding of 30.7 million |
Webcast
Management will host a conference call to discuss its fiscal fourth quarter 2012 results at 8:30 a.m. Eastern Time (ET) today. Interested investors and other parties may listen to the simultaneous webcast of the conference call by logging onto the Investor Relations section of the Company’s website at www.vitaminshoppe.com. The online replay will be available immediately following the call. A telephonic replay will also be available beginning at 11:30 a.m. ET and can be accessed by dialing 1-877-870-5176 or for international callers, 1-858-384-5517. The passcode for the replay is 2538074. The replay will be available until 11:59 p.m. ET on March 5, 2013.
About the Vitamin Shoppe, Inc. (NYSE:VSI)
Vitamin Shoppe is a leading specialty retailer and direct marketer of nutritional products based in North Bergen, New Jersey. The company sells vitamins, minerals, nutritional supplements, herbs, sports nutrition formulas, homeopathic remedies, green living products, and health and beauty aids to customers located primarily in the United States. The company carries national brand products as well as exclusive products under the Vitamin Shoppe, BodyTech and True Athlete proprietary brands. The Vitamin Shoppe conducts business through more than 580 company-operated Vitamin Shoppe retail stores, national mail order catalogs, and website, www.VitaminShoppe.com and 31 Super Supplements stores in the Pacific Northwest. Follow The Vitamin Shoppe on Facebook at http://www.facebook.com/THEVITAMINSHOPPE and on Twitter at http://twitter.com/VitaminShoppe.
Forward Looking Statement
Certain statements in this press release are “forward-looking statements.” Such forward-looking statements reflect the Company’s current expectations or beliefs concerning future events and actual results of operations may differ materially from historical results or current expectations. Any such forward-looking statements are subject to various risks and uncertainties, including, the risk that the operations of Super Supplements will not be integrated successfully, the strength of the economy, changes in the overall level of consumer spending, the performance of the Company’s products within the prevailing retail environment, trade restrictions, availability of suitable store locations at appropriate terms and other factors which are described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and in all filings with the Securities and Exchange Commission made by the Company subsequent to the filing of the Form 10-K. The Company does not undertake to publicly update or revise its forward-looking statements, whether as a result of new information, future events or otherwise, unless required by law.
CONTACTS:
Investors:
Kathleen Heaney
646-912-3844
ir@vitaminshoppe.com
Media:
Susan McLaughlin
Director Corporate Communications
201-624-3134
smclaughlin@vitaminshoppe.com
TABLE 1
VITAMIN SHOPPE, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands, except share and per share data)
(unaudited)
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| December 29, | December 31, | December 29, | December 31, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (13 Weeks) | (14 Weeks) | (52 Weeks) | (53 Weeks) | |||||||||||||
| Net sales |
$ | 218,876 | $ | 214,856 | $ | 950,902 | $ | 856,586 | ||||||||
| Cost of goods sold |
142,485 | 140,328 | 617,920 | 563,627 | ||||||||||||
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|
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|||||||||
| Gross profit |
76,391 | 74,528 | 332,982 | 292,959 | ||||||||||||
| Selling, general and administrative expenses |
59,920 | 56,543 | 233,610 | 216,125 | ||||||||||||
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|||||||||
| Income from operations |
16,471 | 17,985 | 99,372 | 76,834 | ||||||||||||
| Loss on extinguishment of debt |
83 | 635 | ||||||||||||||
| Interest expense, net |
124 | 249 | 659 | 2,325 | ||||||||||||
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| Income before provision for income taxes |
16,347 | 17,653 | 98,713 | 73,874 | ||||||||||||
| Provision for income taxes |
6,669 | 8,241 | 37,888 | 29,010 | ||||||||||||
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| Net income |
$ | 9,678 | $ | 9,412 | $ | 60,825 | $ | 44,864 | ||||||||
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| Weighted average common shares outstanding |
||||||||||||||||
| Basic |
29,893,361 | 28,984,731 | 29,473,711 | 28,802,103 | ||||||||||||
| Diluted |
30,460,739 | 29,697,814 | 30,110,237 | 29,556,024 | ||||||||||||
| Net income per common share |
||||||||||||||||
| Basic |
$ | 0.32 | $ | 0.32 | $ | 2.06 | $ | 1.56 | ||||||||
| Diluted |
$ | 0.32 | $ | 0.32 | $ | 2.02 | $ | 1.52 | ||||||||
TABLE 2
VITAMIN SHOPPE, INC. AND SUBSIDIARY
SEGMENT DATA, KEY PERFORMANCE INDICATORS AND STORE INFO
($ in thousands)
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Fiscal Year Ended | |||||||||||||||
| December 29, | December 31, | December 29, | December 31, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| (13 Weeks) | (14 Weeks) | (52 Weeks) | (53 Weeks) | |||||||||||||
| Sales: |
||||||||||||||||
| Retail |
$ | 194,532 | $ | 191,501 | $ | 849,765 | $ | 765,925 | ||||||||
| Direct |
24,344 | 23,355 | 101,137 | 90,661 | ||||||||||||
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| Net sales |
$ | 218,876 | $ | 214,856 | $ | 950,902 | $ | 856,586 | ||||||||
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| Income from operations: |
||||||||||||||||
| Retail |
$ | 37,076 | $ | 36,895 | $ | 173,300 | $ | 147,023 | ||||||||
| Direct |
4,230 | 4,330 | 19,588 | 16,705 | ||||||||||||
| Corporate costs |
(24,835 | ) | (23,240 | ) | (93,516 | ) | (86,894 | ) | ||||||||
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| Income from operations |
$ | 16,471 | $ | 17,985 | $ | 99,372 | $ | 76,834 | ||||||||
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| Increase in comparable store net sales (a) |
5.2 | % | 6.5 | % | 8.2 | % | 7.4 | % | ||||||||
| Depreciation and Amortization |
$ | 6,537 | $ | 5,395 | $ | 23,076 | $ | 20,300 | ||||||||
| Impairment charge on fixed assets |
— | 236 | 730 | 887 | ||||||||||||
| Impairment charge on intangible assets |
— | 325 | — | 325 | ||||||||||||
| Amortization of deferred financing fees |
27 | 90 | 258 | 372 | ||||||||||||
| Capital Expenditures |
$ | 12,150 | $ | 9,876 | $ | 30,775 | $ | 25,046 | ||||||||
| Gross profit as a percent of net sales |
34.9 | % | 34.7 | % | 35.0 | % | 34.2 | % | ||||||||
| Income from operations as a percent of net sales |
7.5 | % | 8.4 | % | 10.5 | % | 9.0 | % | ||||||||
| Store Data: |
||||||||||||||||
| Stores open at beginning of period |
564 | 515 | 528 | 484 | ||||||||||||
| Stores opened |
15 | 14 | 54 | 48 | ||||||||||||
| Stores closed |
— | (1 | ) | (3 | ) | (4 | ) | |||||||||
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| Stores open at end of period |
579 | 528 | 579 | 528 | ||||||||||||
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(a) Comparable store net sales are based on a 13-week quarter and a 52-week year.
TABLE 3
VITAMIN SHOPPE, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS—ADJUSTED
($ in thousands, except share and per share data)
(unaudited)
| Three Months Ended December 29, 2012 | ||||||||||||||||||||
| As Reported |
Super
Storm Sandy Impact |
Start-up Costs |
Acquisition Costs |
As Adjusted |
||||||||||||||||
| Net sales |
$ | 218,876 | $ | 3,015 | $ | (10 | ) | $ | — | $ | 221,881 | |||||||||
| Income from operations |
16,471 | 2,055 | 387 | 1,281 | 20,194 | |||||||||||||||
| Net income |
9,678 | 1,239 | 387 | 772 | 12,076 | |||||||||||||||
| Net income per share—Diluted |
$ | 0.32 | $ | 0.04 | $ | 0.01 | $ | 0.03 | $ | 0.40 | ||||||||||
| Three Months Ended December 31, 2011 | ||||||||||||||||||||||||
| As Reported |
Impact
of 14th Week |
Store Closing Expenses |
Impairments | Income
Tax Adjustments |
As Adjusted |
|||||||||||||||||||
| Net sales |
$ | 214,856 | $ | (15,557 | ) | $ | — | $ | — | $ | — | $ | 199,299 | |||||||||||
| Income from operations |
17,985 | (3,532 | ) | 732 | 560 | — | 15,745 | |||||||||||||||||
| Net income |
9,412 | (2,129 | ) | 440 | 336 | 1,249 | 9,308 | |||||||||||||||||
| Net income per share—Diluted |
$ | 0.32 | $ | (0.07 | ) | $ | 0.01 | $ | 0.01 | $ | 0.04 | $ | 0.31 | |||||||||||
TABLE 4
VITAMIN SHOPPE, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS—ADJUSTED
($ in thousands, except share and per share data)
(unaudited)
| Fiscal Year Ended December 29, 2012 | ||||||||||||||||||||
| As Reported |
Super
Storm Sandy Impact |
Start-up Costs |
Acquisition Costs |
As Adjusted |
||||||||||||||||
| Net sales |
$ | 950,902 | $ | 3,015 | $ | (10 | ) | $ | — | $ | 953,907 | |||||||||
| Income from operations |
99,372 | 2,055 | 797 | 1,281 | 103,505 | |||||||||||||||
| Net income |
60,825 | 1,239 | 797 | 772 | 63,633 | |||||||||||||||
| Net income per share—Diluted |
$ | 2.02 | $ | 0.04 | $ | 0.03 | $ | 0.03 | $ | 2.11 | ||||||||||
| Fiscal Year Ended December 31, 2011 | ||||||||||||||||||||||||||||
| As Reported |
Impact
of 53rd Week |
Non-income Based Tax Adjustment |
Store Closing Expenses |
Impairments | Income
Tax Adjustments |
As Adjusted |
||||||||||||||||||||||
| Net sales |
$ | 856,586 | $ | (15,557 | ) | $ | — | $ | — | $ | — | $ | — | $ | 841,029 | |||||||||||||
| Income from operations |
76,834 | (3,532 | ) | 3,721 | 732 | 1,212 | — | 78,967 | ||||||||||||||||||||
| Net income |
44,864 | (2,129 | ) | 2,251 | 440 | 727 | (245 | ) | 45,908 | |||||||||||||||||||
| Net income per share—Diluted |
$ | 1.52 | $ | (0.07 | ) | $ | 0.08 | $ | 0.01 | $ | 0.02 | $ | (0.01 | ) | $ | 1.55 | ||||||||||||
TABLE 5
VITAMIN SHOPPE, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
($ in thousands, except per share data)
(Unaudited)
| December 29, | December 31, | |||||||
| 2012 | 2011 | |||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ | 81,168 | $ | 10,754 | ||||
| Inventories |
137,693 | 121,494 | ||||||
| Prepaid expenses and other current assets |
14,572 | 15,130 | ||||||
| Deferred income taxes |
7,904 | 2,863 | ||||||
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|||||
| Total current assets |
241,337 | 150,241 | ||||||
| Property and equipment, net |
95,401 | 88,677 | ||||||
| Goodwill |
177,248 | 177,248 | ||||||
| Other intangibles, net |
69,116 | 68,852 | ||||||
| Other long-term assets |
3,183 | 2,812 | ||||||
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| Total assets |
$ | 586,285 | $ | 487,830 | ||||
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| LIABILITIES AND STOCKHOLDERS’ EQUITY |
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| Current liabilities: |
||||||||
| Current portion of capital lease obligations |
$ | 88 | $ | 956 | ||||
| Accounts payable |
22,445 | 21,416 | ||||||
| Deferred sales |
20,912 | 18,859 | ||||||
| Accrued expenses and other current liabilities |
44,439 | 39,667 | ||||||
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| Total current liabilities |
87,884 | 80,898 | ||||||
| Capital lease obligations, net of current portion |
80 | — | ||||||
| Deferred income taxes |
13,011 | 13,725 | ||||||
| Deferred rent |
30,150 | 28,738 | ||||||
| Other long-term liabilities |
7,742 | 8,666 | ||||||
| Commitments and contingencies |
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| Stockholders’ equity: |
||||||||
| Preferred stock, $0.01 par value; 250,000,000 shares authorized and no shares issued and outstanding at December 29, 2012 and December 31, 2011 |
— | — | ||||||
| Common stock, $0.01 par value; 400,000,000 shares authorized, 30,170,627 shares issued and outstanding at December 29, 2012, and 29,216,888 shares issued and outstanding at December 31, 2011 |
302 | 292 | ||||||
| Additional paid-in capital |
287,574 | 256,795 | ||||||
| Accumulated other comprehensive income |
1 | — | ||||||
| Retained earnings |
159,541 | 98,716 | ||||||
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| Total stockholders’ equity |
447,418 | 355,803 | ||||||
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| Total liabilities and stockholders’ equity |
$ | 586,285 | $ | 487,830 | ||||
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