EX-99.1 2 d435394dex991.htm EARNINGS RELEASE Earnings Release

Exhibit 99.1

 

VITAMIN SHOPPE, INC.

2101 91st Street

North Bergen, NJ07047

(201) 624-2900

www.vitaminshoppe.com

  
  

NEWS

RELEASE

Vitamin Shoppe, Inc. Announces Record Third Quarter 2012 Results

28th Consecutive Quarter of Positive Comparable Sales Growth

Third Quarter Highlights:

- Comparable store sales grew 9.6%

- E-commerce revenue increased 16.9%

- Net sales increased 14.4%

- Fully diluted EPS of $0.54, up from $0.40

NORTH BERGEN, N.J., November 6, 2012 — Vitamin Shoppe, Inc. (NYSE: VSI), a leading specialty retailer and direct marketer of nutritional products, today announced preliminary results for its fiscal third quarter ended September 29, 2012. Net sales in fiscal third quarter 2012 advanced 14.4% while operating income rose 40.5%. During the period, the company reported fully diluted earnings per share (EPS) of $0.54; up from $0.40 in fiscal third quarter 2011. For the nine-month period, fully diluted EPS was $1.71, up from $1.20 in the comparable period of the prior year.

Tony Truesdale, Chief Executive Officer of the Company commented, “We reported another quarter of strong growth while also investing for the future. We are pleased with our business, our positioning and our consistent and predictable results. The third quarter represented our 28th consecutive quarter of positive comparable store sales.”

Fiscal Third Quarter 2012 Results

Net sales increased $30.1 million, or 14.4%, to $239.0 million for the three months ended September 29, 2012, compared with $208.9 million for the three months ended September 24, 2011. This increase was the result of; 1) a 9.6% increase in comparable store sales, 2) growth from new stores, and 3) a 16.9% increase in e-commerce sales.

Cost of goods sold, which includes product, warehouse, distribution and occupancy costs, increased $17.0 million, or 12.2%, to $156.5 million for the three months ended September 29, 2012, compared with $139.5 million for the three months ended September 24, 2011.


Gross profit increased $13.1 million, or 18.8%, to $82.5 million for the fiscal 2012 third quarter, compared with $69.4 million for fiscal third quarter 2011. Gross profit as a percentage of net sales was 34.5% for the quarter ended September 29, 2012, up from 33.2% in fiscal third quarter 2011. The improvement in gross profit margin reflects leverage on occupancy and product margin improvement.

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 $5.9 million, or 11.4%, to $57.7 million for the quarter ended September 29, 2012, compared with $51.8 million for the quarter ended September 24, 2011. SG&A as a percentage of net sales were 24.2% for the quarter ended September 29, 2012, down from 24.8% in fiscal third quarter 2011. This improvement was due to sales leverage.

Income from operations increased $7.1 million, or 40.5%, to $24.8 million for the three months ended September 29, 2012, compared with $17.6 million for the three months ended September 24, 2011. As a percentage of net sales, income from operations was 10.4% for the fiscal 2012 third quarter, compared with 8.4% for fiscal third quarter 2011.

Net income increased $4.4 million or 36.8%, to $16.3 million for the three months ended September 29, 2012, compared with $11.9 million for fiscal third quarter 2011. This was primarily attributable to stronger sales and margin improvement. Net income also benefitted from a lower effective tax rate in both this year’s and last year’s third quarters, which primarily reflects the reversal of charges previously recorded related to uncertain tax positions due to the expiration of applicable statutes of limitation. The net benefit to the provision for income taxes was $1.6 million and $1.0 million for the fiscal third quarters of 2012 and 2011, respectively.

Earnings per diluted share were $0.54 in fiscal third quarter 2012 up from $0.40 in third quarter 2011.

Balance Sheet and Cash Flow

Cash and equivalents at September 29, 2012 were $76.1 million. Capital expenditures were $7.7 million in the quarter. Capital expenditures were used primarily for the build-out of new stores and improvements to existing stores, as well as computer equipment related to those stores.


2012 Outlook

For the current year management expects:

 

   

To open approximately 52 new stores

 

   

Comparable store sales growth for the full year of approximately 8%

 

   

Continued improvement in operating income margin

 

   

Capital expenditures between $35 million and $40 million

 

   

Fourth quarter 2012 fully diluted shares outstanding of 30.5 million

Preliminary 2013 Outlook

For the upcoming year management expects:

 

   

To open approximately 57 new stores

 

   

Comparable store sales growth in mid-single digits for the year

 

   

Continued improvement in operating income margin

 

   

Capital expenditures of approximately $45 million, which includes capital for the new distribution center

 

   

Depreciation of approximately $26 million

 

   

Fully diluted shares outstanding of 30.7 million

Webcast

Management will host a conference call to discuss its fiscal third 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 7104137. The replay will be available until 11:59 p.m. ET on November 13, 2012.

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 560 company-owned retail stores, national mail order catalogs, and website, www.VitaminShoppe.com. 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 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


VITAMIN SHOPPE, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands, except share and per share data)

(unaudited)

 

     Three Months Ended      Nine Months Ended  
     September 29,
2012
     September 24,
2011
     September 29,
2012
     September 24,
2011
 

Net sales

   $ 238,994       $ 208,936       $ 732,026       $ 641,730   

Cost of goods sold

     156,494         139,493         475,435         423,299   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

     82,500         69,443         256,591         218,431   

Selling, general and administrative expenses

     57,732         51,812         173,690         159,582   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from operations

     24,768         17,631         82,901         58,849   

Loss on extinguishment of debt

     —           —           —           552   

Interest expense, net

     161         419         535         2,076   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before provision for income taxes

     24,607         17,212         82,366         56,221   

Provision for income taxes

     8,316         5,301         31,219         20,769   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 16,291       $ 11,911       $ 51,147       $ 35,452   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average common shares outstanding

           

Basic

     29,646,287         28,916,734         29,333,828         28,741,227   

Diluted

     30,244,053         29,693,651         29,993,403         29,508,761   

Net income per common share

           

Basic

   $ 0.55       $ 0.41       $ 1.74       $ 1.23   

Diluted

   $ 0.54       $ 0.40       $ 1.71       $ 1.20   


SEGMENT DATA, KEY PERFORMANCE INDICATORS AND STORE INFO

($ in thousands)

unaudited

 

     Three Months Ended     Nine Months Ended  
     September 29,
2012
    September 24,
2011
    September 29,
2012
    September 24,
2011
 

Sales:

        

Retail

   $ 214,083      $ 187,108      $ 655,233      $ 574,424   

Direct

     24,911        21,828        76,793        67,306   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net sales

   $ 238,994      $ 208,936      $ 732,026      $ 641,730   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations:

        

Retail

   $ 42,548      $ 33,916      $ 136,224      $ 110,128   

Direct

     4,990        3,807        15,358        12,375   

Corporate costs

     (22,770     (20,092     (68,681     (63,654
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

   $ 24,768      $ 17,631      $ 82,901      $ 58,849   
  

 

 

   

 

 

   

 

 

   

 

 

 

Increase in comparable store net sales

     9.6     7.1     9.2     7.7

Depreciation and amortization

   $ 5,684      $ 5,057      $ 16,539      $ 14,905   

Impairment charge on fixed assets

   $ 202      $ 360      $ 730      $ 651   

Amortization of deferred financing fees

   $ 66      $ 84      $ 231      $ 282   

Capital Expenditures

   $ 7,742      $ 5,259      $ 18,625      $ 15,170   

Gross profit as a percent of net sales

     34.5     33.2     35.1     34.0

Income from operations as a percent of net sales

     10.4     8.4     11.3     9.2

Store Data:

        

Stores open at beginning of period

     551        505        528        484   

Stores opened

     15        10        39        34   

Stores closed

     (2            (3     (3
  

 

 

   

 

 

   

 

 

   

 

 

 

Stores open at end of period

     564        515        564        515   
  

 

 

   

 

 

   

 

 

   

 

 

 


VITAMIN SHOPPE, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in thousands, except per share data)

(Unaudited)

 

     September 29,
2012
     December 31,
2011
 
ASSETS      

Current assets:

     

Cash and cash equivalents

   $ 76,054       $ 10,754   

Inventories

     130,821         121,494   

Prepaid expenses and other current assets

     25,211         20,768   
  

 

 

    

 

 

 

Total current assets

     232,086         153,016   

Property and equipment, net of accumulated depreciation and amortization of $176,523 and $163,247 in 2012 and 2011, respectively

     89,207         88,677   

Goodwill

     177,248         177,248   

Other intangibles, net

     68,758         68,852   

Other assets

     3,088         2,812   
  

 

 

    

 

 

 

Total assets

   $ 570,387       $ 490,605   
  

 

 

    

 

 

 
LIABILITIES AND STOCKHOLDERS’ EQUITY      

Current liabilities:

     

Current portion of capital lease obligations

   $ 104       $ 956   

Accounts payable

     24,306         22,279   

Accrued expenses and other current liabilities

     57,498         60,438   
  

 

 

    

 

 

 

Total current liabilities

     81,908         83,673   

Capital lease obligations, net of current portion

     103         —     

Deferred income taxes

     16,213         13,725   

Deferred rent

     29,774         28,738   

Other long-term liabilities

     6,758         8,666   

Commitments and contingencies

     

Stockholders’ equity:

     

Preferred stock, $0.01 par value; 250,000,000 shares authorized and no shares issued and outstanding at September 29, 2012 and December 31, 2011

     —           —     

Common stock, $0.01 par value; 400,000,000 shares authorized, 30,165,955 shares issued and outstanding at September 29, 2012, and 29,216,888 shares issued and outstanding at December 31, 2011

     302         292   

Additional paid-in capital

     285,466         256,795   

Retained earnings

     149,863         98,716   
  

 

 

    

 

 

 

Total stockholders’ equity

     435,631         355,803   
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

   $ 570,387       $ 490,605   
  

 

 

    

 

 

 

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