EX-99.1 2 exhibit991pressrelease-hai.htm PRESS RELEASE DATED MAY 2, 2013 Exhibit 99.1 Press Release - HAIN 8K - 5.2.13

Exhibit 99.1

Contact:
Ira Lamel/Mary Anthes                
The Hain Celestial Group, Inc.            
516-587-5000


HAIN CELESTIAL ANNOUNCES RECORD RESULTS
FOR THIRD QUARTER FISCAL YEAR 2013

Record Net Sales $456.1 Million; Up 21.4%

GAAP Income from Continuing Operations $41.8 Million; Up 68.5%
GAAP EPS from Continuing Operations of $0.87 per Diluted Share
Including $0.28 Tax Benefit; Up 61.1%

Adjusted Net Income of $34.3 Million; Up 33.8%
Adjusted EPS of $0.72 per Diluted Share; Up 28.6%

Acquisition of Ella's Kitchen Group Limited
Forms Global Infant, Toddler & Kids Division under Hain Celestial US

Lake Success, NY, May 2, 2013 - The Hain Celestial Group, Inc. (NASDAQ: HAIN), a leading natural and organic products company providing consumers with A Healthier Way of Life™, today reported its results for the third quarter ended March 31, 2013.

Performance Highlights 3QFY13 Compared to 3QFY12
Record net sales of $456.1 million, an increase of 21.4%
GAAP net income of $40.7 million, an increase of 68.9%
GAAP earnings per diluted share from continuing operations of $0.87, an increase of 61.1%
Adjusted earnings per diluted share of $0.72, an increase of 28.6%
Adjusted EBITDA of $216.0 million for the trailing 12 months ended March 31, 2013, an increase of 27.8%

“I am extremely pleased to report the strongest sales in the Company's history led by Hain Celestial US and its continuing consumption gains and increased profitability during the third quarter. In the UK, we are pleased with the contributions of the ambient grocery brands as our team focused on higher margin brand growth and the elimination of unprofitable private label sales, while integrating the acquired business. Hain Daniels also benefitted from the sales and profitability of Cully & Sully in Ireland. Our businesses in Canada and Europe also delivered strong sales and profitable growth,” said Irwin D. Simon, Founder, President and Chief Executive Officer of Hain Celestial.

Worldwide net sales for the third quarter of fiscal year 2013 were a record $456.1 million, an increase of 21.4% compared to net sales of $375.8 million in the prior year period. Hain Celestial US reported net sales of $277.6 million. In the United Kingdom, Hain Daniels' net sales were $121.2 million. For the Company's Rest of World segment, consisting of the operations of Hain Celestial Canada and Hain Celestial Europe, net sales were $57.3 million. The Company had strong brand contribution across various sales channels led by Earth's Best®, MaraNatha®, Spectrum®, The Greek Gods®, Imagine®, Health Valley®, Westbrae®, Hain Pure Foods®, Jason®, Europe's Best® and Linda McCartney® as well as brands acquired during the most recent 12 months including Cully & Sully®, Hartley's® and BluePrint®.


The Hain Celestial Group, Inc. • 1111 Marcus Avenue • Lake Success, NY 11042
+1-516-587-5000 • www.hain.com



The Company earned income from continuing operations of $41.8 million in the third quarter of fiscal year 2013 compared to $24.8 million in the prior year period, a 68.5% increase, and reported earnings per diluted share from continuing operations of $0.87 compared to $0.54 in the prior year third quarter. Income from continuing operations includes a tax benefit of $13.2 million, or $0.28 per diluted share, resulting from a worthless stock tax deduction for our investment in one of our UK subsidiaries. Adjusted income from continuing operations was $34.3 million compared to $25.7 million in the prior year, a 33.8% increase, and adjusted earnings per diluted share from continuing operations was $0.72 compared to $0.56 in the prior year third quarter. Adjusted amounts exclude the aforementioned tax benefit, acquisition-related expenses, integration and restructuring charges, factory start-up costs, unrealized currency losses and a reserve for litigation settlements. Adjusted EBITDA reached a new high of $216.0 million during the 12-trailing month period ended March 31, 2013.

The Company also announced today in a separate press release the acquisition of Ella's Kitchen Group Limited and the formation of the Global Infant, Toddler & Kids Division under Hain Celestial US. Ella's Kitchen is a manufacturer and distributor of premium organic baby food under the Ella's Kitchen® brand and the first company to offer baby food in convenient flexible pouches. Paul Lindley, founder of Ella's Kitchen, will become Chief Executive Officer of the new Global Infant, Toddler & Kids Division of Hain Celestial US, with responsibility for Hain Celestial's Earth's Best® brand as well as the newly acquired Ella's Kitchen® brand. Paul will report to John Carroll, Executive Vice President and Chief Executive Officer, Hain Celestial US. Ella's Kitchen generated approximately $70 million in sales in calendar year 2012 and is expected to be accretive to Hain Celestial's earnings in fiscal year 2014 by $0.05 to $0.08 per diluted share. Details of the transaction were not disclosed.

Fiscal Year 2013 Guidance
The Company updated its annual guidance for fiscal year 2013.

Total net sales range of $1.727 billion to $1.734 billion; an increase of approximately 26% as compared to fiscal year 2012.
Earnings range of $2.43 to $2.47 per diluted share; an increase of 31% to 33% as compared to fiscal year 2012.

Guidance is provided for continuing operations on a non-GAAP basis and excludes the aforementioned tax benefit, acquisition-related expenses, integration and restructuring charges, factory start-up costs, unrealized currency losses and a reserve for litigation settlements that have been or may be incurred during the Company's fiscal year 2013, which the Company will continue to identify as it reports its future financial results. Guidance excludes the impact of any future acquisitions. Historically, the Company's sales and earnings are strongest in its second and third quarters.



2


Segment Results
The Company's operations are organized into geographic segments: United States, United Kingdom, Canada and Europe.

The following is a summary of third quarter and nine-month results by reportable segment:
The Hain Celestial Group, Inc.
Reportable Segment Results
(dollars in thousands)
 
 
United States
 
United Kingdom
 
Rest of World
 
Corporate and other (1)
 
Consolidated
Net sales - Three months ended 3/31/13
 
$
277,582

 
$
121,162

 
$
57,343

 
$

 
$
456,087

Net sales - Three months ended 3/31/12
 
$
256,280

 
$
67,988

 
$
51,513

 
$

 
$
375,781

% change
 
8.3
%
 
78.2
%
 
11.3
%
 
 
 
21.4
%
 
 
 
 
 
 
 
 
 
 
 
Operating income - Three months ended 3/31/13
 
$
51,260

 
$
8,793

 
$
5,170

 
$
(14,164
)
 
$
51,059

Operating income - Three months ended 3/31/12
 
$
39,579

 
$
6,127

 
$
3,871

 
$
(7,944
)
 
$
41,633

% change
 
29.5
%
 
43.5
%
 
33.6
%
 
 
 
22.6
%
 
 
 
 
 
 
 
 
 
 
 
Operating income margin -
   Three months ended 3/31/13
 
18.5
%
 
7.3
%
 
9.0
%
 
 
 
11.2
%
Operating income margin -
   Three months ended 3/31/12
 
15.4
%
 
9.0
%
 
7.5
%
 
 
 
11.1
%

 
 
United States
 
United Kingdom
 
Rest of World
 
Corporate and other (1)
 
Consolidated
Net sales - Nine months ended 3/31/13
 
$
810,644

 
$
299,277

 
$
161,292

 
$

 
$
1,271,213

Net sales - Nine months ended 3/31/12
 
$
749,075

 
$
135,643

 
$
142,737

 
$

 
$
1,027,455

% change
 
8.2
%
 
120.6
%
 
13.0
%
 
 
 
23.7
%
 
 
 
 
 
 
 
 
 
 
 
Operating income - Nine months ended 3/31/13
 
$
135,359

 
$
19,843

 
$
13,844

 
$
(34,467
)
 
$
134,579

Operating income - Nine months ended 3/31/12
 
$
113,071

 
$
8,367

 
$
8,681

 
$
(28,445
)
 
$
101,674

% change
 
19.7
%
 
137.2
%
 
59.5
%
 
 
 
32.4
%
 
 
 
 
 
 
 
 
 
 
 
Operating income margin -
    Nine months ended 3/31/13
 
16.7
%
 
6.6
%
 
8.6
%
 
 
 
10.6
%
Operating income margin -
    Nine months ended 3/31/12
 
15.1
%
 
6.2
%
 
6.1
%
 
 
 
9.9
%


3



Webcast
Hain Celestial will host a conference call and webcast at 4:30 PM Eastern Time today to review its third quarter fiscal year 2013 results. The conference call will be webcast and available under the Investor Relations section of the Company's website at www.hain.com.

The Hain Celestial Group, Inc.
The Hain Celestial Group (NASDAQ: HAIN), headquartered in Lake Success, NY, is a leading natural and organic products company in North America and Europe. Hain Celestial participates in many natural categories with well-known brands that include Celestial Seasonings®, Earth's Best®, Ella's Kitchen®, Terra®, Garden of Eatin'®, Sensible Portions®, Health Valley®, Arrowhead Mills®, MaraNatha®, SunSpire®, DeBoles®, Gluten Free Café™, Hain Pure Foods®, Hollywood®, Spectrum Naturals®, Spectrum Essentials®, Walnut Acres Organic®, Imagine®, Almond Dream®, Rice Dream®, Soy Dream®, WestSoy®, The Greek Gods®, BluePrint®, Ethnic Gourmet®, Yves Veggie Cuisine®, Europe's Best®, Cully & Sully®, New Covent Garden Soup Co.®, Johnson's Juice Co.®, Farmhouse Fare®, Hartley's®, Sun-Pat®, Gale's®, Robertson's®, Frank Cooper's®, Linda McCartney®, Lima®, Danival®, GG UniqueFiber®, Natumi®, JASON®, Zia® Natural Skincare, Avalon Organics®, Alba Botanica®, Queen Helene® and Earth's Best TenderCare®. Hain Celestial has been providing “A Healthier Way of Life™” since 1993. For more information, visit www.hain.com.

Safe Harbor Statement
This press release contains forward-looking statements under the Private Securities Litigation Reform Act of 1995. Words such as “plan,” “continue,” “expect,” “expected,” “anticipate,” “estimate,” “believe,” “may,” “potential,” “can,” “positioned,” “should,” “future,” “look forward” and similar expressions, or the negative of those expressions, may identify forward-looking statements. These forward-looking statements include the Company's expectations relating to (i) the Company's guidance for net sales and earnings per diluted share for fiscal year 2013; and (ii) the acquisition of Ella's Kitchen and the potential improvements to the Company's earnings results therefrom. Forward-looking statements involve known and unknown risks and uncertainties, which could cause the Company's actual results to differ materially from those described in the forward-looking statements. These factors include, but are not limited to the Company's ability to achieve its guidance for net sales and earnings per diluted share in fiscal year 2013 given the economic environment in the U.S. and other markets that it sells products as well as economic, political and business conditions generally and their effect on the Company's customers and consumers' product preferences, and the Company's business, financial condition and results of operations; the Company's expectations for its business for fiscal year 2013 and its positioning for the future; changes in estimates or judgments related to the Company's impairment analysis of goodwill and other intangible assets, as well as with respect to the Company's valuation allowances of its deferred tax assets; the Company's ability to implement its business and acquisition strategy; the ability of the Company's joint venture investments, to successfully execute their business plans; the Company's ability to realize sustainable growth generally and from investments in core brands, offering new products and its focus on cost containment, productivity, cash flow and margin enhancement in particular; the Company's ability to effectively integrate its acquisitions; the effects on the Company's results of operations from the impacts of foreign exchange; competition; the success and cost of introducing new products as well as the Company's ability to increase prices on existing products; availability and retention of key personnel; the Company's reliance on third party distributors, manufacturers and suppliers; the Company's ability to maintain existing customers and secure and integrate new customers; the Company's ability to respond to changes and trends in customer and consumer demand, preferences and consumption; international sales and operations; changes in fuel, raw material and commodity costs; changes in, or the failure to comply with, government regulations; the availability of natural and organic ingredients; the loss of one or more of the Company's manufacturing facilities; the ability to use the Company's trademarks; reputational damage; product liability; seasonality; litigation; the Company's reliance on its information technology systems; and the other risks detailed from time-to-time in the Company's reports filed with the SEC, including the annual report on Form 10-K for the fiscal year ended June 30, 2012. As a result of the foregoing and other factors, no assurance can be given as to future results, levels of activity and achievements and neither the Company nor any person assumes responsibility for the accuracy and completeness of these statements.

Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP financial measures, including adjusted net income, adjusted gross profit, adjusted earnings per diluted share, earnings before interest, taxes, depreciation, and amortization (“EBITDA”), adjusted EBITDA and operating free cash flow. The reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are presented in the tables “Reconciliation of GAAP Results to Non-GAAP Measures” for the three-, nine- and 12-months ended March 31, 2013 and 2012 and in the paragraphs below. Management believes that the non-GAAP financial measures presented provide useful additional information to investors about current trends in the Company's operations and are useful for period-over-period comparisons of operations. These non-GAAP financial measures should not be considered

4


in isolation or as a substitute for the comparable GAAP measures. In addition, these non-GAAP measures may not be the same as similar measures provided by other companies due to potential differences in methods of calculation and items being excluded. They should be read only in connection with the Company's Consolidated Statements of Income presented in accordance with GAAP.

The Company defines EBITDA as net income (a GAAP measure) before income taxes, net interest expense, depreciation and amortization, impairment of long lived assets, equity in the earnings of non-consolidated affiliates and stock based compensation. Adjusted EBITDA is defined as net income before income taxes, net interest expense, depreciation and amortization, impairment of long lived assets, equity in the earnings of non-consolidated affiliates, stock based compensation and acquisition-related expenses, including integration and restructuring charges. The Company's management believes that these presentations provide useful information to management, analysts and investors regarding certain additional financial and business trends relating to its results of operations and financial condition. In addition, management uses these measures for reviewing the financial results of the Company as well as a component of performance-based executive compensation.

For the three-, nine and trailing 12-month periods ended March 31, 2013 and 2012, EBITDA and adjusted EBITDA were calculated as follows:

 
 
3-Months Ended
9-Months Ended
Trailing 12 Months
 
 
3/31/2013
3/31/2012
3/31/2013
3/31/2012
3/31/2013
3/31/2012
Net Income
$
40,715

$
24,107

$
88,723

$
55,835

$
112,113

$
68,683

Income taxes
1,610

12,397

26,052

31,142

34,253

39,849

Interest expense, net
4,777

4,197

12,891

11,115

16,851

14,226

Depreciation and amortization
9,768

7,779

26,761

22,371

34,850

28,834

Impairment of long lived assets




15,098


Equity in earnings of affiliates
(293
)
(28
)
(151
)
(847
)
(444
)
1,796

Stock based compensation
3,236

2,558

9,837

6,321

11,807

8,064

EBITDA
$
59,813

$
51,010

$
164,113

$
125,937

$
224,528

$
161,452

 
 
 
 
 
 
 
Acquisition related expenses and restructuring charges
1,856

549

6,272

7,501

(8,511
)
7,534

Adjusted EBITDA
$
61,669

$
51,559

$
170,385

$
133,438

$
216,017

$
168,986


The Company defines Operating Free Cash Flow as cash provided from or used in operating activities (a GAAP measure) less capital expenditures. The Company views operating free cash flow as an important measure because it is one factor in evaluating the amount of cash available for discretionary investments.

For the trailing 12-month periods ended March 31, 2013 and 2012, operating free cash flow was calculated as follows:

 
12-Months Ended
 3/31/2013
12-Months Ended
3/31/2012
Cash flow provided by operating activities
$
112,104

$
95,947

Purchases of property, plant and equipment
(56,516
)
(16,622
)
Operating free cash flow
$
55,588

$
79,325


Operating free cash flow for the trailing 12-months this year was $55.6 million, a decrease of 30% from $79.3 million in the prior year. The decrease is principally the result of expenditures on several major capital projects during the latest 12-months, as we invested almost $40 million more on capital projects in our latest 12-months as compared to a year ago.


5


THE HAIN CELESTIAL GROUP, INC.
Consolidated Balance Sheets
(In thousands)
 
 
 
 
 
March 31,
 
 June 30,
 
2013
 
2012
 
 (Unaudited)
 
 
ASSETS
 
 
 
Current assets:
 
 
 
Cash and cash equivalents
$
27,217

 
$
29,895

Trade receivables, net
232,417

 
166,677

Inventories
240,146

 
186,440

Deferred income taxes
18,488

 
15,834

Other current assets
35,369

 
19,864

Assets of business held for sale

 
30,098

Total current assets
553,637

 
448,808

 
 
 
 
Property, plant and equipment, net
220,250

 
148,475

Goodwill, net
883,200

 
702,556

Trademarks and other intangible assets, net
408,393

 
310,378

Investments and joint ventures
47,697

 
45,100

Other assets
24,592

 
18,276

Total assets
$
2,137,769

 
$
1,673,593

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 
 
 
Current liabilities:
 
 
 
Accounts payable and accrued expenses
$
233,779

 
$
184,103

Income taxes payable
8,411

 
5,074

Current portion of long-term debt
14,381

 
296

Liabilities of business held for sale

 
13,336

Total current liabilities
256,571

 
202,809

 
 
 
 
Deferred income taxes
130,307

 
107,633

Other noncurrent liabilities
14,728

 
8,261

Long-term debt, less current portion
620,327

 
390,288

Total liabilities
1,021,933

 
708,991

 
 
 
 
Stockholders' equity:
 
 
 
Common stock
479

 
462

Additional paid-in capital
706,505

 
616,197

Retained earnings
463,834

 
375,111

Treasury stock
(30,214
)
 
(21,785
)
Accumulated other comprehensive income
(24,768
)
 
(5,383
)
Total stockholders' equity
1,115,836

 
964,602

 
 
 
 
Total liabilities and stockholders' equity
$
2,137,769

 
$
1,673,593


6


THE HAIN CELESTIAL GROUP, INC.
 Consolidated Statements of Income
 (in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
Nine Months Ended March 31,
 
 
2013
 
2012
 
2013
 
2012
 
 
(Unaudited)
 
(Unaudited)
 
 
 
 
 
 
 
 
 
Net sales
 
$
456,087

 
$
375,781

 
$
1,271,213

 
$
1,027,455

Cost of sales
 
329,924

 
271,100

 
919,075

 
738,385

Gross profit
 
126,163

 
104,681

 
352,138

 
289,070

Selling, general and administrative expenses
 
73,248

 
62,528

 
211,287

 
180,424

Acquisition related expenses including integration and restructuring charges
 
1,856

 
520

 
6,272

 
6,972

Operating income
 
51,059

 
41,633

 
134,579

 
101,674

Interest expense and other expenses
 
7,913

 
4,194

 
15,100

 
12,350

Income before income taxes and equity in earnings of equity-method investees
 
43,146

 
37,439

 
119,479

 
89,324

Income tax provision
 
1,610

 
12,648

 
25,770

 
31,632

After-tax (income) loss of equity-method investees
 
(293
)
 
(28
)
 
(151
)
 
(847
)
Income from continuing operations
 
41,829

 
24,819

 
93,860

 
58,539

Loss from discontinued operations, net of tax
 
(1,114
)
 
(712
)
 
(5,137
)
 
(2,704
)
Net income
 
$
40,715

 
$
24,107

 
$
88,723

 
$
55,835

 
 
 
 
 
 
 
 
 
Basic net income per share:
 
 
 
 
 
 
 
 
     From continuing operations
 
$
0.90

 
$
0.56

 
$
2.05

 
$
1.32

     From discontinued operations
 
(0.02
)
 
(0.02
)
 
(0.11
)
 
(0.06
)
Net income per share - basic
 
$
0.88

 
$
0.54

 
$
1.94

 
$
1.26

 
 
 
 
 
 
 
 
 
Diluted net income per share:
 
 
 
 
 
 
 
 
     From continuing operations
 
$
0.87

 
$
0.54

 
$
1.99

 
$
1.28

     From discontinued operations
 
(0.02
)
 
(0.02
)
 
(0.11
)
 
(0.06
)
Net income per share - diluted
 
$
0.85

 
$
0.52

 
$
1.88

 
$
1.22

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
46,508

 
44,506

 
45,822

 
44,198

Diluted
 
47,821

 
45,989

 
47,248

 
45,666


7


THE HAIN CELESTIAL GROUP, INC.
 Reconciliation of GAAP Results to Non-GAAP Measures
 (in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31,
 
 
2013 GAAP
 
Adjustments
 
2013 Adjusted
 
2012 Adjusted
 
 
(Unaudited)
Gross profit
 
$
126,163

 
$
2,146

 
$
128,309

 
$
104,681

Selling, general and administrative expenses
 
73,248

 
(2,559
)
 
70,689

 
62,528

Acquisition related (income) expenses including integration and restructuring charges
 
1,856

 
(1,856
)
 

 

Operating income
 
51,059

 
6,561

 
57,620

 
42,153

Interest and other expenses, net
 
7,913

 
(2,138
)
 
5,775

 
3,982

Income before income taxes and equity in earnings of equity-method investees
 
43,146

 
8,699

 
51,845

 
38,171

Income tax provision
 
1,610

 
16,180

 
17,790

 
12,529

After-tax (income) loss of equity-method investees
 
(293
)
 

 
(293
)
 
(28
)
Income from continuing operations
 
$
41,829

 
$
(7,481
)
 
$
34,348

 
$
25,670

 
 
 
 
 
 
 
 
 
Income per share from continuing operations - basic
 
$
0.90

 
$
(0.16
)
 
$
0.74

 
$
0.58

Income per share from continuing operations - diluted
 
$
0.87

 
$
(0.15
)
 
$
0.72

 
$
0.56

Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
46,508

 
 
 
46,508

 
44,506

Diluted
 
47,821

 
 
 
47,821

 
45,989

 
 
 
 
 
 
 
 
 
 
 
FY 2013
 
FY 2012
 
 
Impact on Income Before Income Taxes
 
Impact on Income Tax Provision
 
Impact on Income Before Income Taxes
 
Impact on Income Tax Provision
 
 
(Unaudited)
Acquisition related integration costs
 
$
1,587

 
$
413

 
$

 
$

Factory start-up costs
 
559

 
190

 

 

Cost of sales
 
2,146

 
603

 

 

 
 
 
 
 
 
 
 
 
Acquisition related integration costs
 
584

 
155

 

 

Reserve for labeling litigation
 
1,975

 
751

 

 

Selling, general and administrative expenses
 
2,559

 
906

 

 

 
 
 
 
 
 
 
 
 
Acquisition related fees and expenses, integration and restructuring charges
 
1,856

 
432

 
520

 
183

Acquisition related expenses including integration and restructuring charges
 
1,856

 
432

 
520

 
183

 
 
 
 
 
 
 
 
 
Unrealized currency impacts
 
1,882

 
713

 

 

Interest accretion and other items, net
 
256

 
79

 
212

 
56

Interest and other expenses, net
 
2,138

 
792

 
212

 
56

 
 
 
 
 
 
 
 
 
Worthless stock tax deduction
 

 
13,186

 

 

Decrease in unrecognized tax benefits
 

 
261

 

 
820

Nondeductible acquisition related transaction expenses
 

 

 

 
(1,178
)
Income tax provision
 

 
13,447

 

 
(358
)
 
 
 
 
 
 
 
 
 
Total adjustments
 
$
8,699

 
$
16,180

 
$
732

 
$
(119
)

8


THE HAIN CELESTIAL GROUP, INC.
 Reconciliation of GAAP Results to Non-GAAP Measures
 (in thousands, except per share amounts)
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended March 31,
 
 
2013 GAAP
 
Adjustments
 
2013 Adjusted
 
2012 Adjusted
 
 
(Unaudited)
Gross profit
 
$
352,138

 
$
2,146

 
$
354,284

 
$
289,070

Selling, general and administrative expenses
 
211,287

 
(2,559
)
 
208,728

 
180,424

Acquisition related (income) expenses including integration and restructuring charges
 
6,272

 
(6,272
)
 

 

Operating income
 
134,579

 
10,977

 
145,556

 
108,646

Interest and other expenses, net
 
15,100

 
(884
)
 
14,216

 
11,678

Income before income taxes and equity in earnings of equity-method investees
 
119,479

 
11,861

 
131,340

 
96,968

Income tax provision
 
25,770

 
18,585

 
44,355

 
34,006

After-tax (income) loss of equity-method investees
 
(151
)
 

 
(151
)
 
(770
)
Income from continuing operations
 
$
93,860

 
$
(6,724
)
 
$
87,136

 
$
63,732

 
 
 
 
 
 
 
 
 
Income per share from continuing operations - basic
 
$
2.05

 
$
(0.15
)
 
$
1.90

 
$
1.44

Income per share from continuing operations - diluted
 
$
1.99

 
$
(0.15
)
 
$
1.84

 
$
1.40

Weighted average common shares outstanding:
 
 
 
 
 
 
 
 
Basic
 
45,822

 
 
 
45,822

 
44,198

Diluted
 
47,248

 
 
 
47,248

 
45,666

 
 
 
 
 
 
 
 
 
 
 
FY 2013
 
FY 2012
 
 
Impact on Income Before Income Taxes
 
Impact on Income Tax Provision
 
Impact on Income Before Income Taxes
 
Impact on Income Tax Provision
 
 
(Unaudited)
Acquisition related integration costs
 
$
1,587

 
$
413

 
$

 
$

Factory start-up costs
 
559

 
190

 

 

Cost of sales
 
2,146

 
603

 

 

 
 
 
 
 
 
 
 
 
Acquisition related integration costs
 
584

 
155

 

 

Reserve for labeling litigation
 
1,975

 
751

 

 

Selling, general and administrative expenses
 
2,559

 
906

 

 

 
 
 
 
 
 
 
 
 
Acquisition related fees and expenses, integration and restructuring charges
 
6,272

 
1,558

 
6,072

 
2,223

Contingent consideration expense
 

 

 
900

 
338

Acquisition related expenses including integration and restructuring charges
 
6,272

 
1,558

 
6,972

 
2,561

 
 
 
 
 
 
 
 
 
Unrealized currency impacts
 
1,882

 
713

 

 

Currency gain on acquisition payment
 
(1,396
)
 
(548
)
 

 

Interest accretion and other items, net
 
398

 
113

 
672

 
171

Interest and other expenses, net
 
884

 
278

 
672

 
171

 
 
 
 
 
 
 
 
 
Net (income) loss from HPP discontinued operation
 

 

 
(77
)
 

After-tax (income) loss of equity-method investees
 

 

 
(77
)
 

 
 
 
 
 
 
 
 
 
Worthless stock tax deduction
 

 
13,186

 

 

Decrease in unrecognized tax benefits
 

 
2,054

 

 
820

Nondeductible acquisition related transaction expenses
 

 

 

 
(1,178
)
Income tax provision
 

 
15,240

 

 
(358
)
 
 
 
 
 
 
 
 
 
Total adjustments
 
$
11,861

 
$
18,585

 
$
7,567

 
$
2,374


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