SECAUCUS, N.J., Nov. 6, 2019 /PRNewswire/ -- Vitamin Shoppe,
Inc. (NYSE: VSI), an omni-channel, specialty retailer of
nutritional products, today announced preliminary results for the
three months ended September 28, 2019
(third quarter).
Reported net loss per share from continuing operations in third
quarter 2019 was $0.14, compared to
earnings per share (EPS) from continuing operations of $0.08 in the same period of the prior year.
Excluding special items in both third quarter 2019 and third
quarter 2018 as shown in Table 4 at the end of this press release,
EPS from continuing operations was $0.00 in third quarter 2019 compared with
$0.04 in third quarter
2018.
Acquisition of The Vitamin Shoppe by Franchise Group
As announced in August 2019, The
Vitamin Shoppe has entered into a definitive agreement (the "Merger
Agreement") to be acquired by Franchise Group, Inc. (formerly known
as Liberty Tax, Inc.) ("Franchise Group") in an all-cash
transaction (the transaction hereafter referred to as the
"Merger"). Under the terms of the Merger Agreement, Franchise
Group will acquire all of the outstanding common shares of The
Vitamin Shoppe for $6.50 per common
share in cash. The Merger is expected to be completed in the
fourth quarter of 2019, subject to approval by The Vitamin Shoppe's
shareholders, as well as other customary closing conditions.
Third Quarter 2019 Results
Total sales of $253.1 million in
the quarter were 8.5% lower than the same period of the prior
year. Total comparable sales were down 7.7% in the
quarter.
Cost of goods sold, which includes product, distribution and
store occupancy costs, were $172.6
million, 9.2% lower than the same period of the prior year,
primarily attributable to lower sales volume.
Gross profit was $80.6 million,
compared with $86.7 million in third
quarter 2018. Gross profit as a percentage of net sales was
31.8% in third quarter 2019, compared to 31.3% in the same period
of 2018. Third quarter 2019 benefitted year-over-year from
product margin improvement of 70 basis points offset by deleverage
in occupancy.
Selling, general and administrative expenses (SG&A),
including store operating payroll and related benefits and
advertising expense, was $82.5
million for the quarter ended September 28, 2019, compared with $82.7 million for the quarter ended September 29, 2018. Third quarter 2019
includes approximately $3.3 million
associated to acquisition costs, $0.6
million for store closing expenses, $0.2 million for management realignment costs and
$0.1 million of legal settlements
while third quarter 2018 includes $0.4
million for management realignment costs and $0.2 million in distribution center closing
costs. SG&A as a percent of sales was 32.6% in third
quarter 2019 compared with 29.9% in third quarter 2018.
Adjusted for the items mentioned above and shown in Table 4, for
both years, SG&A as a percentage of sales in third quarter 2019
was 30.9% compared to 29.7% in third quarter 2018.
The Company reported impairment charges on fixed and right of
use assets of $0.5 million in third
quarter 2019.
Adjusted EBITDA in third quarter 2019 was $13.2 million and a margin of 5.2%, compared with
$14.4 million and a margin of 5.2% in
the same period of the prior year. (Refer to Table 5 at the
end of this press release for a GAAP reconciliation.)
Operating loss in third quarter 2019 was $2.4 million compared to operating income of
$3.2 million in the same period of
the prior year. Adjusted for the items noted in Table 4 for
both third quarter 2019 and 2018, adjusted operating income was
$2.3 million in third quarter 2019
compared with adjusted operating income of $3.9 million in third quarter 2018. (Refer to
Table 4 at the end of this press release for a
reconciliation.)
Reported net loss from continuing operations was $3.4 million for third quarter 2019 compared to
net income from continuing operations of $1.9 million in the same period of the prior
year. Adjusting for the items shown in Table 4 for the
periods ended September 28, 2019 and
September 29, 2018, net income from
continuing operations would have been $0.0
million and $1.0 million,
respectively.
Reported loss per share from continuing operations was
$0.14 in third quarter 2019, compared
to earnings per share from continuing operations of $0.08 in third quarter 2018. Earnings per
share from continuing operations on an adjusted basis (for the
items described in Table 4) in third quarter 2019 was $0.00 compared to $0.04 in third quarter 2018.
Balance Sheet and Cash Flow
Cash and equivalents at September 28,
2019 were $16.0 million.
At quarter end, the Company had a convertible notes liability with
a total face value of $60.4 million
and nothing borrowed on its revolving line of credit.
Capital expenditures were $6.8
million in the quarter with funds primarily expended on
digital investments and existing stores. Depreciation and
amortization in third quarter 2019 was $10.9
million compared to $10.5
million in third quarter 2018. The Company generated
operating cash flow of $10.1 million
in the quarter.
Conference Call
In light of the pending Merger, the Company will not hold an
earnings conference call to discuss its third quarter 2019
results.
Non-GAAP Financial Measures
Adjusted information is non-GAAP financial information. These
supplemental non-GAAP measures should not be considered superior
to, or a substitute for, and should be considered in conjunction
with the GAAP financial measures presented. The Company
believes such non-GAAP financial information facilitates analysis
and comparisons of our ongoing business operations because it
excludes items that may not be indicative of, or are unrelated to
the Company's core operating performance, and may assist investors
with comparisons to prior periods and assessing trends in our
underlying business. These adjustments are consistent with how
management views our business. Management uses such non-GAAP
financial information in making financial, operating and planning
decisions and evaluating the Company's ongoing performance. A
reconciliation of adjusted financial information to the most
directly comparable financial measures calculated and presented in
accordance with GAAP are shown in Tables 4 and 5.
The Company defines Adjusted EBITDA as EBITDA (net income before
interest expense, net, provision for income taxes, depreciation and
amortization), as further adjusted to exclude the effects of
certain income and expense items that management believes make it
more difficult to assess the Company's actual operating performance
including certain items which are generally non-recurring.
The Company has excluded the impact of such items from internal
performance assessments. The Company believes that excluding
such items helps investors compare operating performance with the
results in prior periods. The Company believes it is
appropriate to exclude these items as they are not related to
ongoing operating performance and, therefore, limit comparability
between periods. (See Table 5 for a reconciliation
of 3Q19 and 3Q18 Adjusted EBITDA.)
About the Vitamin Shoppe, Inc. (NYSE:VSI)
The Vitamin Shoppe® is an omni-channel specialty retailer and
wellness lifestyle Company with the mission of providing customers
with the most trusted products, guidance, and services to help them
become their best selves, however they define it. Based in
Secaucus, New Jersey, the Company
offers a comprehensive assortment of nutritional solutions,
including vitamins, minerals, specialty supplements, herbs, sports
nutrition, homeopathic remedies, green living products, and natural
beauty aids. In addition to carrying products from approximately
700 national brands, The Vitamin Shoppe offers products from its
proprietary brands within its owned and wholesale channels,
including: The Vitamin Shoppe®, BodyTech®,
BodyTech Elite®, True Athlete®,
plnt® and ProBioCare®. The Company conducts
business through more than 750 company-operated retail stores under
The Vitamin Shoppe and Super Supplements banners, and via its
website, www.vitaminshoppe.com.
Forward Looking Statements
This press release contains "forward-looking" statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, including, without limitation, those that contain, or are
identified by, words such as "outlook", "guidance", "believes",
"expects", "potential", "continues", "may", "will", "should",
"predicts", "intends", "plans", "estimates", "anticipates", "could"
or the negative version of these words or other comparable words.
Forward-looking statements may include, but are not limited to,
statements relating to the Merger with Franchise Group. These
statements are subject to various risks and uncertainties, many of
which are outside the Company's control, including, among others,
the risk that the Merger may not be completed in a timely manner or
at all, which may adversely affect the Company's business and the
price of the Company's common stock; risks related to the
occurrence of any event, change or other circumstance that could
give rise to the termination of the Merger Agreement or any
agreement that may be entered into with Franchise Group; the
failure to obtain the requisite stockholder approval of the Merger
or required regulatory approvals or the failure to satisfy any of
the other conditions to the completion of the Merger; the effect of
the announcement or pendency of the Merger on the ability of the
Company to retain and hire key personnel and maintain relationships
with its customers, suppliers, partners and others with whom it
does business, or on its operating results and business generally;
risks associated with the diversion of management's attention from
ongoing business operations due to the Merger; legal proceedings
related to the Merger; uncertainties as to Franchise Group's
ability to obtain financing in order to consummate the Merger; and
costs, charges or expenses resulting from the Merger. Actual
results may differ materially from anticipated results or outcomes
discussed in any forward-looking statement. Additional factors that
could cause actual results to differ materially from
forward-looking statements include 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;
implementation of the Company's strategy; compliance with
regulations, certifications and best practices with respect to the
development, manufacture, sale and marketing of the Company's
products; management changes; maintaining appropriate levels of
inventory; changes in tax policy; ecommerce relationships;
disruptions of manufacturing, warehouse or distribution facilities
or information systems; regulatory environment and other specific
factors discussed herein and in other United States Securities and
Exchange Commission ("SEC") filings by the Company (including the
Company's reports on Forms 10-K and 10-Q filed with the SEC). The
Company believes that all forward-looking statements are based on
reasonable assumptions when made; however, the Company cautions
that it is impossible to predict actual results or outcomes or the
effects of risks, uncertainties or other factors on anticipated
results or outcomes with certainty and that, accordingly, one
should not place undue reliance on these statements.
Forward-looking statements speak only as of the date when made and
the Company undertakes no obligation to update these statements in
light of subsequent events or developments.
|
TABLE
1
VITAMIN SHOPPE,
INC. AND SUBSIDIARY
CONSOLIDATED
STATEMENTS OF OPERATIONS
(In thousands, except
share and per share data)
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
28,
|
|
September
29,
|
|
September
28,
|
|
September
29,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
253,133
|
|
$
276,636
|
|
$
807,341
|
|
$
865,703
|
|
Cost of goods
sold
|
|
172,565
|
|
189,945
|
|
541,687
|
|
591,665
|
|
Gross
profit
|
|
80,568
|
|
86,691
|
|
265,654
|
|
274,038
|
|
Selling, general and
administrative expenses
|
|
82,493
|
|
82,747
|
|
254,071
|
|
260,263
|
|
Impairment charges on
fixed, intangible and right-of-use assets
|
|
521
|
|
718
|
|
11,404
|
|
1,551
|
|
Income (loss) from
operations
|
|
(2,446)
|
|
3,226
|
|
179
|
|
12,224
|
|
Gain on
extinguishment of debt
|
|
-
|
|
-
|
|
-
|
|
16,229
|
|
Interest expense,
net
|
|
1,080
|
|
1,289
|
|
3,221
|
|
5,429
|
|
Income (loss) before
provision (benefit) for income taxes
|
|
(3,526)
|
|
1,937
|
|
(3,042)
|
|
23,024
|
|
Provision (benefit)
for income taxes
|
|
(117)
|
|
57
|
|
440
|
|
6,204
|
|
Net income (loss)
from continuing operations
|
|
(3,409)
|
|
1,880
|
|
(3,482)
|
|
16,820
|
|
Net loss from
discontinued operations, net of tax
|
|
-
|
|
(3,626)
|
|
-
|
|
(15,245)
|
|
Net income
(loss)
|
|
$
(3,409)
|
|
$
(1,746)
|
|
$
(3,482)
|
|
$
1,575
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
|
23,716,403
|
|
23,545,842
|
|
23,646,617
|
|
23,477,982
|
|
Diluted
|
|
23,716,403
|
|
23,545,842
|
|
23,646,617
|
|
23,743,856
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
from continuing operations per common share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.14)
|
|
$
0.08
|
|
$
(0.15)
|
|
$
0.72
|
|
Diluted
|
|
$
(0.14)
|
|
$
0.08
|
|
$
(0.15)
|
|
$
0.71
|
|
|
|
|
|
|
|
|
|
|
Net loss from
discontinued operations per common share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
-
|
|
$
(0.15)
|
|
$
-
|
|
$
(0.65)
|
|
Diluted
|
|
$
-
|
|
$
(0.15)
|
|
$
-
|
|
$
(0.64)
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per
common share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.14)
|
|
$
(0.07)
|
|
$
(0.15)
|
|
$
0.07
|
|
Diluted
|
|
$
(0.14)
|
|
$
(0.07)
|
|
$
(0.15)
|
|
$
0.07
|
|
TABLE
2
VITAMIN SHOPPE,
INC. AND SUBSIDIARY
KEY PERFORMANCE
INDICATORS AND STORE INFO
($ In
thousands)
(Unaudited)
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
September
28,
|
|
September
29,
|
|
September
28,
|
|
September
29,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
Decrease in total
comparable net sales
|
(7.7)%
|
|
(1.9)%
|
|
(6.1)%
|
|
(2.2)%
|
|
|
|
|
|
|
|
|
|
|
Gross profit from
continuing operations as a percent of net sales
|
31.8 %
|
|
31.3 %
|
|
32.9 %
|
|
31.7 %
|
|
Income (loss) from
continuing operations as a percent of net sales
|
(1.0)%
|
|
1.2 %
|
|
0.0 %
|
|
1.4 %
|
|
|
|
|
|
|
|
|
|
|
Capital
Expenditures
|
$
6,844
|
|
$
8,950
|
|
$
19,447
|
|
$
24,655
|
|
Depreciation and
Amortization
|
$
10,944
|
|
$
10,504
|
|
$
30,708
|
|
$
32,002
|
|
|
|
|
|
|
|
|
|
|
Store
Data:
|
|
|
|
|
|
|
|
|
Stores open at
beginning of period
|
765
|
|
782
|
|
774
|
|
785
|
|
Stores opened
|
1
|
|
1
|
|
1
|
|
2
|
|
Stores closed
|
(2)
|
|
(3)
|
|
(11)
|
|
(7)
|
|
Stores open at end of
period
|
764
|
|
780
|
|
764
|
|
780
|
|
|
|
|
|
|
|
|
|
|
Total retail
square footage at end of period (in thousands)
|
2,673
|
|
2,718
|
|
2,673
|
|
2,718
|
|
TABLE
3
VITAMIN SHOPPE,
INC. AND SUBSIDIARY
CONSOLIDATED
BALANCE SHEETS
(In thousands, except
share and per share data)
(Unaudited)
|
|
|
September
28,
|
|
December
29,
|
|
2019
|
|
2018
|
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
$
15,995
|
|
$
2,668
|
|
Inventories
|
181,815
|
|
189,273
|
|
Prepaid
expenses and other current assets
|
23,601
|
|
27,921
|
|
Total current
assets
|
221,411
|
|
219,862
|
|
Right-of-use
assets
|
424,868
|
|
-
|
|
Property and
equipment, net of accumulated depreciation and amortization of
$338,044 and $312,977 in
2019 and 2018, respectively
|
112,755
|
|
123,002
|
|
Intangibles,
net
|
2,283
|
|
11,088
|
|
Deferred
taxes
|
35,695
|
|
31,659
|
|
Other long-term
assets
|
3,250
|
|
2,468
|
|
Total
assets
|
$
800,262
|
|
$
388,079
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Revolving
credit facility
|
$
-
|
|
$
-
|
|
Accounts
payable
|
38,203
|
|
39,789
|
|
Accrued
expenses and other current liabilities
|
56,337
|
|
65,508
|
|
Short-term
lease liabilities
|
96,756
|
|
500
|
|
Total current
liabilities
|
191,296
|
|
105,797
|
|
Long-term lease
liabilities
|
368,828
|
|
934
|
|
Convertible notes,
net
|
57,422
|
|
55,570
|
|
Deferred
rent
|
-
|
|
37,034
|
|
Other long-term
liabilities
|
308
|
|
403
|
|
|
|
|
|
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, 2019 and December 29, 2018
|
-
|
|
-
|
|
Common stock,
$0.01 par value; 400,000,000 shares authorized, 24,366,706 shares
issued and
|
|
|
|
|
24,060,705
shares outstanding at September 28, 2019 and 24,234,651 shares
issued and 23,974,031
|
|
|
|
|
shares
outstanding at December 29, 2018
|
244
|
|
242
|
|
Additional
paid-in capital
|
86,990
|
|
85,853
|
|
Treasury
stock, at cost; 306,001 shares at September 28, 2019 and 260,620
shares at December 29, 2018
|
(7,625)
|
|
(7,314)
|
|
Retained
earnings
|
102,799
|
|
109,560
|
|
Total stockholders' equity
|
182,408
|
|
188,341
|
|
Total liabilities and
stockholders' equity
|
$
800,262
|
|
$
388,079
|
|
TABLE
4
VITAMIN SHOPPE,
INC. AND SUBSIDIARY
SUPPLEMENTAL
OPERATING DATA
(Unaudited)
|
|
|
Amounts in
millions except per share data
|
|
|
|
|
|
|
|
|
|
|
|
|
Figures may not
sum due to rounding
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
|
|
|
|
Impairment
|
|
Operating
|
|
Net
|
|
Diluted
|
|
Continuing
Operations
|
Profit
|
|
SG&A
|
|
Charges
|
|
Income/(Loss)
|
|
Income/(Loss)
|
|
EPS
|
|
Three months ended
September 28, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
$
80.6
|
|
$
82.5
|
|
$
0.5
|
|
$
(2.4)
|
|
$
(3.4)
|
|
$
(0.14)
|
|
Acquisition costs
(1)
|
-
|
|
(3.3)
|
|
-
|
|
3.3
|
|
2.4
|
|
0.10
|
|
Store closure costs
(2)
|
-
|
|
(0.6)
|
|
-
|
|
0.6
|
|
0.4
|
|
0.02
|
|
Right-of-use assets
impairment charges (3)
|
-
|
|
-
|
|
(0.3)
|
|
0.3
|
|
0.2
|
|
0.01
|
|
Management
realignment costs (4)
|
-
|
|
(0.2)
|
|
-
|
|
0.2
|
|
0.2
|
|
0.01
|
|
Legal settlement
(5)
|
-
|
|
(0.1)
|
|
-
|
|
0.1
|
|
0.1
|
|
0.00
|
|
Inventory
obsolescence charge (6)
|
0.1
|
|
-
|
|
-
|
|
0.1
|
|
0.1
|
|
0.00
|
|
As
Adjusted
|
$
80.7
|
|
$
78.2
|
|
$
0.2
|
|
$
2.3
|
|
$
(0.0)
|
|
$
(0.00)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 29, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
$
86.7
|
|
$
82.7
|
|
$
0.7
|
|
$
3.2
|
|
$
1.9
|
|
$
0.08
|
|
Tax Reform
(7)
|
-
|
|
-
|
|
-
|
|
-
|
|
(1.3)
|
|
(0.06)
|
|
Management
realignment charges (4)
|
-
|
|
(0.4)
|
|
-
|
|
0.4
|
|
0.3
|
|
0.01
|
|
Closing of
distribution center (8)
|
-
|
|
(0.2)
|
|
-
|
|
0.2
|
|
0.2
|
|
0.01
|
|
As
Adjusted
|
$
86.7
|
|
$
82.1
|
|
$
0.7
|
|
$
3.9
|
|
$
1.0
|
|
$
0.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 28, 2019:
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
$
265.7
|
|
$
254.1
|
|
$
11.4
|
|
$
0.2
|
|
$
(3.5)
|
|
$
(0.15)
|
|
Tradename impairment
charge (9)
|
-
|
|
-
|
|
(9.0)
|
|
9.0
|
|
6.6
|
|
0.28
|
|
Acquisition costs
(1)
|
-
|
|
(3.3)
|
|
-
|
|
3.3
|
|
2.4
|
|
0.10
|
|
Store closure costs
(2)
|
0.1
|
|
(2.3)
|
|
-
|
|
2.4
|
|
1.8
|
|
0.07
|
|
Management
realignment costs (4)
|
-
|
|
(1.7)
|
|
-
|
|
1.7
|
|
1.2
|
|
0.05
|
|
Right-of-use asset
impairment charges (3)
|
-
|
|
-
|
|
(1.4)
|
|
1.4
|
|
1.0
|
|
0.04
|
|
Legal settlement
(5)
|
-
|
|
(0.1)
|
|
-
|
|
0.1
|
|
0.1
|
|
0.00
|
|
Inventory
obsolescence charge (6)
|
0.1
|
|
-
|
|
-
|
|
0.1
|
|
0.1
|
|
0.00
|
|
As
Adjusted
|
$
265.9
|
|
$
246.6
|
|
$
1.0
|
|
$
18.3
|
|
$
9.7
|
|
$
0.41
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 29, 2018:
|
|
|
|
|
|
|
|
|
|
|
|
|
As
Reported
|
$
274.0
|
|
$
260.3
|
|
$
1.6
|
|
$
12.2
|
|
$
16.8
|
|
$
0.71
|
|
Gain on
extinguishment of debt (10)
|
-
|
|
-
|
|
-
|
|
-
|
|
(11.7)
|
|
(0.49)
|
|
Tax Reform
(7)
|
-
|
|
-
|
|
-
|
|
-
|
|
(1.3)
|
|
(0.06)
|
|
Inventory charge
(11)
|
3.6
|
|
-
|
|
-
|
|
3.6
|
|
2.6
|
|
0.11
|
|
Closing of
distribution center (8)
|
1.8
|
|
(1.1)
|
|
-
|
|
2.9
|
|
2.1
|
|
0.09
|
|
Management
realignment charges (4)
|
-
|
|
(2.2)
|
|
-
|
|
2.2
|
|
1.6
|
|
0.07
|
|
Shareholder
settlement (12)
|
-
|
|
(0.7)
|
|
-
|
|
0.7
|
|
0.5
|
|
0.02
|
|
As
Adjusted
|
$
279.4
|
|
$
256.2
|
|
$
1.6
|
|
$
21.7
|
|
$
10.6
|
|
$
0.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Costs
related to the pending acquisition of Vitamin Shoppe.
|
|
|
|
|
|
|
|
|
|
|
|
(2) Store
closure costs primarily include lease termination fees.
|
|
|
|
|
|
|
|
|
|
|
|
(3)
Charges incurred to reflect the fair market value of the
right-of-use assets associated with certain retail
locations.
|
|
|
|
|
|
(4) Costs
related to management turnover, including severance charges,
recruitment costs and other professional fees.
|
|
|
|
|
|
(5) Costs
incurred related to the settlement of a legal matter.
|
|
|
|
|
|
|
|
|
|
|
|
(6)
Write-off of inventory acquired in an asset purchase
transaction.
|
|
|
|
|
|
|
|
|
|
|
|
(7)
Represents the tax benefit associated with tax accounting method
changes and their effect on the revalued deferred tax assets and
liabilities under the Tax Cut and Jobs Act of 2017.
|
|
(8) Costs
related to the closing of the North Bergen, New Jersey distribution
center.
|
|
|
|
|
|
|
|
|
|
(9)
Impairment charge on the Vitamin Shoppe tradename.
|
|
|
|
|
|
|
|
|
|
|
|
(10) Gain recognized
on the repurchases of a portion of Convertible Notes, net of
tax.
|
|
|
|
|
|
|
|
|
|
(11) Inventory charge
resulting from an evaluation to optimize the Company's product
assortment.
|
|
|
|
|
|
|
|
(12) Professional
fees incurred related to shareholder settlement.
|
|
|
|
|
|
|
|
|
|
|
|
TABLE
5
VITAMIN SHOPPE,
INC. AND SUBSIDIARY
ADJUSTED EBITDA
RECONCILIATION
(In
thousands)
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
September
28,
|
|
September
29,
|
|
September
28,
|
|
September
29,
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Net income (loss)
from continuing operations
|
$
(3,409)
|
|
$
1,880
|
|
$
(3,482)
|
|
$
16,820
|
|
|
|
|
|
|
|
|
|
Additions:
|
|
|
|
|
|
|
|
|
Provision (benefit)
for income taxes
|
(117)
|
|
57
|
|
440
|
|
6,204
|
|
Interest expense,
net
|
1,080
|
|
1,289
|
|
3,221
|
|
5,429
|
|
Depreciation and
amortization
|
10,944
|
|
10,504
|
|
30,708
|
|
31,233
|
|
|
|
|
|
|
|
|
|
EBITDA
|
8,498
|
|
13,730
|
|
30,887
|
|
59,686
|
|
|
|
|
|
|
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tradename impairment
charge (1)
|
-
|
|
-
|
|
9,000
|
|
-
|
|
Acquisition costs
(2)
|
3,341
|
|
-
|
|
3,341
|
|
-
|
|
Store closure costs
(3)
|
620
|
|
-
|
|
2,433
|
|
-
|
|
Management
realignment costs (4)
|
225
|
|
363
|
|
1,681
|
|
2,211
|
|
Right-of-use asset
impairment charges (5)
|
317
|
|
-
|
|
1,410
|
|
-
|
|
Legal settlement
(6)
|
125
|
|
-
|
|
125
|
|
-
|
|
Inventory
obsolescence charge (7)
|
91
|
|
-
|
|
91
|
|
-
|
|
Gain on
extinguishment of debt (8)
|
-
|
|
-
|
|
-
|
|
(16,229)
|
|
Inventory charge
(9)
|
-
|
|
-
|
|
-
|
|
3,600
|
|
Distribution center
closing costs (10)
|
-
|
|
246
|
|
-
|
|
2,936
|
|
Shareholder
settlement (11)
|
-
|
|
32
|
|
-
|
|
694
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
13,217
|
|
$
14,371
|
|
$
48,968
|
|
$
52,898
|
|
|
|
|
|
|
|
|
|
(1) Impairment charge
on the Vitamin Shoppe tradename.
|
|
|
|
|
|
|
|
(2) Costs related to
the pending acquisition of Vitamin Shoppe.
|
|
|
|
|
|
|
|
(3) Store closure
costs primarily include lease termination fees.
|
|
|
|
|
|
|
|
(4) Costs related to
management turnover, including severance charges, recruitment costs
and other professional fees.
|
|
|
(5) Charges incurred
to reflect the fair market value of the right-of-use assets
associated with certain retail locations.
|
|
|
(6) Costs incurred
related to the settlement of a legal matter.
|
|
|
|
|
|
|
|
(7) Write-off of
inventory acquired in an asset purchase transaction.
|
|
|
|
|
|
|
(8) Gain recognized
on the repurchases of a portion of Convertible Notes.
|
|
|
|
|
|
(9) Inventory charge
resulting from an evaluation to optimize the Company's product
assortment.
|
|
|
|
(10) Costs related to
the closing of the North Bergen, New Jersey distribution
center.
|
|
|
|
|
|
(11) Professional
fees incurred related to shareholder settlement.
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/vitamin-shoppe-inc-announces-third-quarter-2019-results-300952419.html
SOURCE Vitamin Shoppe, Inc.