Vitamin Shoppe's Q4 earnings rose 15.9% year-over-year to US$11.2M as sales increased 17.2% to US$256.4M, comparable-store sales increased 4.6%, online sales grew 25.5%; for 2013, earnings rose 9.2% to US$66.5M, sales rose 14.4% to US$1.09B

NORTH BERGEN, New Jersey , February 27, 2014 (press release) – Vitamin Shoppe, Inc. (NYSE: VSI), a leading multi-channel specialty retailer of nutritional products, today announced preliminary results for the fourth quarter and full year ended December 28, 2013.  Total net sales in the quarter increased 17.2% to $256.4 million compared to $218.9 million in the same period of the prior year.  Reported earnings per share in fourth quarter 2013 were $0.37, compared with $0.32 in fourth quarter 2012. Tony Truesdale, Chief Executive Officer of the Company commented, "The fourth quarter was another solid quarter for us.  Our customers are responding favorably to changes and updates we consistently undertake to improve their online shopping experience with e-commerce sales up 25% in the quarter.  I am also very proud that we delivered our 20th consecutive year of positive comparable retail store sales growth. We undertook two major growth initiatives during 2013; the acquisition of Super Supplements and the opening of a new distribution center in Ashland, VA."

Mr. Truesdale further commented, "We participate in an attractive growth industry.  We remain focused on our long-term top and bottom line results and continue to make investments to support our growth.  Our business generates strong cash flow, and our balance sheet is solid providing significant financial resources."

Fourth Quarter 2013 Results
Sales growth in the quarter was driven by: 1) a 4.6% increase in comparable retail store sales, 2) the contribution from Super Supplements retail stores of $16.8 million, 3) growth from non-comp stores, and 4) a 25.5% increase in e-commerce sales, including an approximate 5.5% contribution from Super Supplements online sales.  Total comparable sales were 6.2% when including e-commerce comp sales.

The Company opened 19 stores in the quarter, 52 for the full year and acquired 31 Super Supplements stores.  The majority of the fourth quarter store openings occurred later in the quarter.  Total store count was 659 as of December 28, 2013, compared with 579 on December 29, 2012. 

Cost of goods sold, which includes product, warehouse, distribution and store occupancy costs, increased $28.2 million, or 19.8%, to $170.7 million for the three months ended December 28, 2013, compared with $142.5 million for the three months ended December 29, 2012.  

Gross profit increased $9.3 million, or 12.2%, to $85.7 million for 2013 fourth quarter, compared with $76.4 million for fourth quarter 2012.  Gross profit as a percentage of net sales was 33.4% for the quarter ended December 28, 2013, compared to 34.9% in fourth quarter 2012.  The decrease was primarily attributable to the opening of the new distribution center, 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 $6.8 million, or 11.4%, to $66.8 million for the quarter ended December 28, 2013, compared with $59.9 million for the quarter ended December 29, 2012.  SG&A includes integration related expenses for Super Supplements of approximately $0.5 million.  SG&A as a percentage of net sales was 26.0% for fourth quarter 2013 compared with 27.4% in fourth quarter 2012.  The reduction reflects lower incentive compensation expense.

Income from operations in fourth quarter 2013 was $18.9 million, an increase of 14.9% from the same period in the prior year.  As a percentage of net sales, income from operations was 7.4% for fourth quarter 2013 compared with 7.5% for fourth quarter 2012. 

Net income was $11.2 million for fourth quarter 2013, 15.9% higher than fourth quarter 2012.  Reported earnings per diluted share (EPS) were $0.37 in fourth quarter 2013 compared with $0.32 in fourth quarter 2012.  Fourth quarter 2013 includes $0.01 per share of integration costs related to the Super Supplements acquisition.  Fourth quarter 2012 includes an estimated negative $0.08 per share impact resulting from Superstorm Sandy, the Super Supplements acquisition and Canadian start-up costs.

Balance Sheet and Cash Flow
Cash and equivalents at December 28, 2013 were $74.0 million and the company has no debt. 

Capital expenditures were $10.4 million in the quarter and $42.8 million for the full year.  Funds were expended primarily for the new distribution center, build-out of new stores and improvements to existing stores.

Fiscal 2013 Financial and Operating Highlights:

  • Comparable store sales grew 3.5%, the 20th  consecutive year of positive comparable sales growth
  • Net sales increased 14.4%
  • E-commerce sales rose 19.4%
  • Operating income was up 11.0%
  • Operating margin of 10.1%
  • Fully diluted EPS of $2.18
  • Opened 52 stores in the United States
  • Acquired Super Supplements with 31 stores in the Pacific northwest
  • Opened first franchise store in Panama
  • Opened new distribution center in Ashland, VA

Outlook

Management expects the following for 2014:

First Quarter 2014:

  • As the company migrates to an omni-channel environment, e-commerce sales will be included in total comp sales figure starting in 2014
  • Reflecting a challenging retail environment to date, total comps, including
    e-commerce, of low single digits in 1Q14

Full Year 2014:

  • Retail store comparable sales growth of low to mid-single digits, and total comps including e-commerce, of mid-single digits
  • Approximately 60 new stores
  • Depreciation & amortization of approximately $31 million
  • Slight EBIT margin decline, reflecting lower first quarter 2014 expectations
  • Capital expenditures of approximately $35-40 million

Webcast
Management will host a conference call to discuss the fourth 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 February 25, 2014 and can be accessed by dialing 1-877-870-5176 or 1-858-384-5517 for international callers. The passcode for the replay is 3218661. The replay will be available until 11:59 p.m. ET on March 4, 2014.  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 900 national brand products, the Vitamin Shoppe also exclusively carries products under The Vitamin Shoppe, BodyTech, True Athlete, MyTrition, plnt, ProBioCare and Next Step brands.  The Vitamin Shoppe conducts business through more than 660 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.

 

TABLE 1
VITAMIN SHOPPE, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
($ in thousands, except share and per share data)
(Unaudited)

 
 
   

Three Months Ended

 

Fiscal Year Ended

   

December 28,

 

December 29,

 

December 28,

 

December 29,

   

2013

 

2012

 

2013

 

2012

                 
                 
                 

Net sales

 

$         256,427

 

$         218,876

 

$       1,087,469

 

$         950,902

Cost of goods sold

 

170,733

 

142,485

 

709,823

 

617,920

Gross profit

 

85,694

 

76,391

 

377,646

 

332,982

Selling, general and administrative expenses

 

66,769

 

59,920

 

267,354

 

233,610

Income from operations

 

18,925

 

16,471

 

110,292

 

99,372

Interest expense, net

 

120

 

124

 

495

 

659

Income before provision for income taxes

 

18,805

 

16,347

 

109,797

 

98,713

Provision for income taxes

 

7,586

 

6,669

 

43,251

 

37,888

Net income 

 

$           11,219

 

$            9,678

 

$           66,546

 

$          60,825

                 

Weighted average common shares outstanding

               

   Basic

 

30,068,843

 

29,893,361

 

29,992,620

 

29,473,711

   Diluted

 

30,651,599

 

30,460,739

 

30,541,057

 

30,110,237

Net income per common share

               

   Basic

 

$              0.37

 

$              0.32

 

$              2.22

 

$              2.06

   Diluted

 

$              0.37

 

$              0.32

 

$              2.18

 

$              2.02

 

 

 


View News Release Full Screen

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 28,

 

December 29,

 

December 28,

 

December 29,

   

2013

 

2012

 

2013

 

2012

Net sales:

             
 

Retail 

$          226,422

 

$         194,532

 

$          969,610

 

$         849,765

 

Direct

30,005

 

24,344

 

117,859

 

101,137

Net sales

$          256,427

 

$         218,876

 

$       1,087,469

 

$         950,902

                 

Income from operations:

             
 

Retail 

$            38,824

 

$           37,076

 

$          192,439

 

$         173,300

 

Direct

5,393

 

4,230

 

21,930

 

19,588

 

Corporate costs

(25,292)

 

(24,835)

 

(104,077)

 

(93,516)

Income from operations

$            18,925

 

$           16,471

 

$          110,292

 

$           99,372

                 

Increase in comparable store net sales

4.6%

 

5.2%

 

3.5%

 

8.2%

                 

Gross profit as a percent of net sales

33.4%

 

34.9%

 

34.7%

 

35.0%

Income from operations as a percent of net sales

7.4%

 

7.5%

 

10.1%

 

10.5%

                 

Capital Expenditures

$            10,429

 

$           12,150

 

$            42,782

 

$           30,775

Depreciation and Amortization 

8,014

 

6,537

 

28,026

 

23,076

Impairment charge on fixed assets

-

 

-

 

-

 

730

                 

Acquisition and integration costs

$                 477

 

$             1,281

 

$              4,336

 

$             1,281

Insurance recoveries from Super Storm Sandy

$                     -

 

$                   -

 

$              1,079

 

$                    -

                 

Store Data:

             
 

Stores open at beginning of period 

640

 

564

 

579

 

528

 

    Stores opened 

19

 

15

 

52

 

54

 

    Stores acquired

 

 

31

 

 

    Stores closed 

 

 

(3)

 

(3)

 

Stores open at end of period

659

 

579

 

659

 

579

                 

Total retail square footage at end of period (in thousands)

2,390

 

2,130

 

2,390

 

2,130

 

 

 

View News Release Full Screen
 
 

TABLE 3
VITAMIN SHOPPE, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
($ in thousands, except per share data)
(Unaudited)

       
       
 

December 28,

 

December 29,

 

2013

 

2012

ASSETS

     
       

Current assets:

     

  Cash and cash equivalents

$                74,036

 

$                 81,168

  Inventories

163,921

 

137,693

  Prepaid expenses and other current assets

31,292

 

14,572

  Deferred income taxes

5,936

 

7,904

     Total current assets

275,185

 

241,337

Property and equipment, net

120,142

 

95,401

Goodwill

210,633

 

177,248

Other intangibles, net

71,264

 

69,116

Other long-term assets

4,840

 

3,183

Total assets

$              682,064

 

$               586,285

       

LIABILITIES AND STOCKHOLDERS' EQUITY 

     

Current liabilities:

     

  Accounts payable

$                39,106

 

$                 22,445

  Deferred sales

21,712

 

20,912

  Accrued expenses and other current liabilities

42,026

 

44,527

     Total current liabilities

102,844

 

87,884

Deferred income taxes

11,588

 

13,011

Deferred rent

36,032

 

30,150

Other long-term liabilities 

3,260

 

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 

     

   December 28, 2013 and December 29, 2012

-

 

-

  Common stock, $0.01 par value; 400,000,000 shares authorized, 30,531,550 shares issued and 30,525,234 shares

     

   outstanding at December 28, 2013, and 30,170,627 shares issued and outstanding at December 29, 2012

305

 

302

  Additional paid-in capital

302,314

 

287,574

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

(280)

 

-

  Accumulated other comprehensive (loss) income

(86)

 

1

  Retained earnings 

226,087

 

159,541

           Total stockholders' equity 

528,340

 

447,418

Total liabilities and stockholders' equity

$              682,064

 

$               586,285

 

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.