EX-99.1 2 d623018dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

VITAMIN SHOPPE, INC.       

2101 91st Street

North Bergen, NJ 07047

(201) 624-3000

www.vitaminshoppe.com

      

            NEWS

            RELEASE

Vitamin Shoppe, Inc. Announces Third Quarter 2013 Results

3Q13 Highlights:

 

    Total revenue increased 14.0%

 

    Comparable store sales grew 2.6%

 

    E-commerce revenues increased 17.7%

 

    Fully diluted EPS of $0.53

 

    Opened 10 new stores in the U.S.

NORTH BERGEN, N.J., November 5, 2013 — Vitamin Shoppe, Inc. (NYSE: VSI), a leading multi-channel specialty retailer of nutritional products, today announced preliminary results for the third quarter ended September 28, 2013. Total net sales in the quarter increased 14.0% to $272.5 million compared to $239.0 million in the same period of the prior year. Net income per diluted share for third quarter 2013 was $0.53 compared to $0.54 per share in the same quarter of the prior year.

Tony Truesdale, Chief Executive Officer of the Company commented, “We delivered our 32nd consecutive quarter of positive comparable retail store sales growth and experienced improving traffic trends throughout the quarter. We opened a new 311,000 square foot distribution center in Ashland, VA and continued to successfully integrate Super Supplements, the largest acquisition in the company’s history.”

Mr. Truesdale further commented, “Super Supplements and the new distribution center are key components to support expansion of the business. We are also making investments in omni-channel, private label development and international markets to position ourselves to meet the evolving and growing demand in the health and wellness industry.”


Third Quarter 2013 Results

Total net sales in third quarter 2013 increased 14.0% to $272.5 million compared to $239.0 million in the same period of the prior year. Sales growth in the quarter was driven by: 1) a 2.6% increase in comparable retail store sales, 2) the contribution from Super Supplements retail stores of $17.0 million, 3) growth from non-comp stores, and 4) a 17.7% increase in e-commerce sales, including a 6.0% contribution from Super Supplements online sales.

The Company opened 10 stores in the quarter and 33 year-to-date. The majority of the third quarter store openings occurred late in the quarter. Total store count was 640 as of September 28, 2013, compared with 564 on September 29, 2012.

Cost of goods sold, which includes product, warehouse, distribution and occupancy costs, increased $22.9 million, or 14.6%, to $179.4 million for the three months ended September 28, 2013, compared with $156.5 million for the three months ended September 29, 2012.

Gross profit increased $10.6 million, or 12.8%, to $93.1 million for 2013 third quarter, compared with $82.5 million for third quarter 2012. Gross profit as a percentage of net sales was 34.2% for the quarter ended September 28, 2013, compared to 34.5% in third quarter 2012. The decrease was primarily attributable to shifts in product category sales mix and higher penetration of e-commerce sales.

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 $9.2 million, or 16.0%, to $67.0 million for the quarter ended September 28, 2013, compared with $57.7 million for the quarter ended September 29, 2012. SG&A as a percentage of net sales was 24.6% for third quarter 2013 compared with 24.2% in third quarter 2012. SG&A includes integration related expenses for the Super Supplements acquisition of approximately $0.9 million.

Income from operations in third quarter 2013 was $26.1 million, an increase of 5.4% from the same period in the prior year. As a percentage of net sales, income from operations was 9.6% for third quarter 2013 compared with 10.4% for third quarter 2012.


Net income was $16.3 million for third quarter 2013, flat with third quarter 2012. Reported earnings per diluted share (EPS) were $0.53 in third quarter 2013 compared with $0.54 in third quarter 2012 and includes $0.02 per share of integration costs related to the Super Supplements acquisition. In addition, EPS benefitted from a lower effective tax rate in both 3Q13 and 3Q12, of $0.02 and $0.05 per share, respectively, which primarily reflects the reversal of charges previously recorded related to uncertain tax positions due to the expiration of applicable statutes of limitation.

Balance Sheet and Cash Flow

Cash and equivalents at September 28, 2013 were $54.2 million. Capital expenditures were $8.5 million in the quarter and $32.4 million year-to-date. Capital expenditures were used primarily for the new distribution center, build-out of new stores and improvements to existing stores.

2013 Outlook

For the current year management expects:

 

    To open approximately 50 new stores

 

    Low to mid single digit comparable store sales growth 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

 

    Super Supplements acquisition is expected to be slightly dilutive to earnings per share, which includes transaction and integration costs

 

    Fully diluted shares outstanding of 30.6 million

2014 Outlook

For the upcoming year management expects:

 

    Mid single digit comparable store sales growth

 

    To open approximately 60 new stores

 

    Depreciation & amortization of approximately $31 million

 

    Slight EBIT margin improvement

 

    Capital expenditures of approximately $35-40 million


Webcast

Management will host a conference call to discuss the third quarter 2013 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. A telephonic replay will be available beginning at 11:30 a.m. ET on November 5, 2013 and can be accessed by dialing 1-877-870-5176 or 1-858-384-5517 for international callers. The passcode for the replay is 6370052. The replay will be available until 11:59 p.m. ET on November 12, 2013. The webcast will also be archived on the company’s website at www.vitaminshoppe.com in the investor relations section.

About the Vitamin Shoppe, Inc. (NYSE:VSI)

Vitamin Shoppe is a leading multi-channel specialty retailer of nutritional products based in North Bergen, New Jersey. In its stores and on its website, the company carries one of the most comprehensive retail assortments in the industry, including vitamins, minerals, specialty supplements, herbs, sports nutrition, homeopathic remedies, green living products, and beauty aids. In addition to offering 600 national brand products, the Vitamin Shoppe also exclusively carries products under The Vitamin Shoppe, BodyTech, True Athlete and MyTrition brands. The Vitamin Shoppe conducts business through more than 640 company-operated retail stores under The Vitamin Shoppe, Super Supplements and Vitapath retail banners, and through its website, www.VitaminShoppe.com and www.supersup.com. Follow The Vitamin Shoppe on Facebook at http://www.facebook.com/THEVITAMINSHOPPE and on Twitter at http://twitter.com/VitaminShoppe.

Forward Looking Statements

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 further described in the Company’s Annual Report on Form 10-K for the fiscal year ended December 29, 2012 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 to do so by law.

 

Investor and Analyst Contact    Media Contact
Kathleen Heaney    Meghan Kennedy
646-912-3844    201-552-6017
ir@vitaminshoppe.com    Meghan.kennedy@vitaminshoppe.com


TABLE 1

VITAMIN SHOPPE, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

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

(Unaudited)

 

     Three Months Ended      Nine Months Ended  
     September 28,      September 29,      September 28,      September 29,  
     2013      2012      2013      2012  

Net sales

   $ 272,472       $ 238,994       $ 831,042       $ 732,026   

Cost of goods sold

     179,419         156,494         539,090         475,435   
  

 

 

    

 

 

    

 

 

    

 

 

 

Gross profit

     93,053         82,500         291,952         256,591   

Selling, general and administrative expenses

     66,951         57,732         200,585         173,690   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from operations

     26,102         24,768         91,367         82,901   

Interest expense, net

     164         161         375         535   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before provision for income taxes

     25,938         24,607         90,992         82,366   

Provision for income taxes

     9,670         8,316         35,665         31,219   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 16,268       $ 16,291       $ 55,327       $ 51,147   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average common shares outstanding

           

Basic

     30,011,914         29,646,287         29,967,212         29,333,828   

Diluted

     30,535,129         30,244,053         30,504,210         29,993,403   

Net income per common share

           

Basic

   $ 0.54       $ 0.55       $ 1.85       $ 1.74   

Diluted

   $ 0.53       $ 0.54       $ 1.81       $ 1.71   


TABLE 2

VITAMIN SHOPPE, INC. AND SUBSIDIARY

SEGMENT DATA, KEY PERFORMANCE INDICATORS AND STORE INFO

($ in thousands)

(Unaudited)

 

     Three Months Ended     Nine Months Ended  
     September 28,     September 29,     September 28,     September 29,  
     2013     2012     2013     2012  

Net sales:

        

Retail

   $ 243,909      $ 214,083      $ 743,188      $ 655,233   

Direct

     28,563        24,911        87,854        76,793   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net sales

   $ 272,472      $ 238,994      $ 831,042      $ 732,026   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations:

        

Retail

   $ 47,386      $ 42,548      $ 153,615      $ 136,224   

Direct

     5,425        4,990        16,537        15,358   

Corporate costs

     (26,709     (22,770     (78,785     (68,681
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from operations

   $ 26,102      $ 24,768      $ 91,367      $ 82,901   
  

 

 

   

 

 

   

 

 

   

 

 

 

Increase in comparable store net sales

     2.6     9.6     3.1     9.2

Gross profit as a percent of net sales

     34.2     34.5     35.1     35.1

Income from operations as a percent of net sales

     9.6     10.4     11.0     11.3

Capital Expenditures

   $ 8,516      $ 7,742      $ 32,353      $ 18,625   

Depreciation and Amortization

     6,948        5,684        20,012        16,539   

Impairment charge on fixed assets

     —          202        —          730   

Acquisition and integration costs

   $ 868      $ —        $ 3,859      $ —     

Insurance recoveries from Super Storm Sandy

   $ —        $ —        $ 1,079      $ —     

Store Data:

        

Stores open at beginning of period

     630        551        579        528   

Stores opened

     10        15        33        39   

Stores acquired

     —          —          31        —     

Stores closed

     —          (2     (3     (3
  

 

 

   

 

 

   

 

 

   

 

 

 

Stores open at end of period

     640        564        640        564   
  

 

 

   

 

 

   

 

 

   

 

 

 


TABLE 3

VITAMIN SHOPPE, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

($ in thousands, except per share data)

(Unaudited)

 

     September 28,     December 29,  
     2013     2012  

ASSETS

    

Current assets:

    

Cash and cash equivalents

   $ 54,201      $ 81,168   

Inventories

     168,836        137,693   

Prepaid expenses and other current assets

     35,590        22,476   
  

 

 

   

 

 

 

Total current assets

     258,627        241,337   

Property and equipment, net of accumulated depreciation and amortization of $200,342 and $182,173 in 2013 and 2012, respectively

     116,013        95,401   

Goodwill

     210,633        177,248   

Other intangibles, net

     71,257        69,116   

Other assets

     4,166        3,183   
  

 

 

   

 

 

 

Total assets

   $ 660,696      $ 586,285   
  

 

 

   

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

    

Current liabilities:

    

Accounts payable

   $ 32,370      $ 22,445   

Accrued expenses and other current liabilities

     58,422        65,439   
  

 

 

   

 

 

 

Total current liabilities

     90,792        87,884   

Deferred income taxes

     19,180        13,011   

Deferred rent

     35,167        30,150   

Other long-term liabilities

     3,148        7,822   

Commitments and contingencies

    

Stockholders’ equity:

    

Preferred stock, $0.01 par value; 250,000,000 shares authorized and no shares issued and outstanding at September 28, 2013 and December 29, 2012

     —          —     

Common stock, $0.01 par value; 400,000,000 shares authorized, 30,411,137 shares issued and 30,404,821 shares outstanding at September 28, 2013, and 30,170,627 shares issued and outstanding at December 29, 2012

     304        302   

Additional paid-in capital

     297,564        287,574   

Treasury stock, at cost; 6,316 shares at September 28, 2013 and no shares at December 29, 2012

     (280     —     

Accumulated other comprehensive (loss) income

     (47     1   

Retained earnings

     214,868        159,541   
  

 

 

   

 

 

 

Total stockholders’ equity

     512,409        447,418   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 660,696      $ 586,285   
  

 

 

   

 

 

 

#####