News Releases

Vitamin Shoppe, Inc. Announces Fourth Quarter and Full Year 2012 Results
PR Newswire
NORTH BERGEN, N.J.

- 4Q12 Comparable store sales grew 5.2%, includes an estimated 1.6% negative impact from Superstorm Sandy
- E-commerce revenues increased 13.4% on a comparable basis, 6th consecutive quarter of double-digit growth
- Fully diluted EPS of $0.32, includes impact from Superstorm Sandy and acquisition and start-up costs
- Opened 13 new stores in the U.S.
- Opened first 2 stores in Canada

Vitamin Shoppe, Inc. (NYSE: VSI), a leading specialty retailer and direct marketer of nutritional products, today announced preliminary results for its fiscal fourth quarter ended December 29, 2012.  Fiscal fourth quarter 2012 was a 13-week quarter while fiscal fourth quarter 2011 was 14 weeks.  On a reported basis, net income per diluted share for fiscal fourth quarter 2012 was $0.32.  This includes an estimated negative $0.08 per share impact resulting from Superstorm Sandy, the Super Supplements acquisition and Canadian start-up costs. (See Table 3.)

Tony Truesdale, Chief Executive Officer of the Company commented, "I am very pleased that we delivered another quarter and year of strong growth despite the challenges of Superstorm Sandy that we faced in the fourth quarter.  Our brand and commitment to customer service, whether it is in the stores or on our website, is resonating with consumers.  I am pleased that we have delivered positive comparable store sales for 29 consecutive quarters and 19 consecutive years.  This performance is a testament to all the hard work and dedication that everyone at the Vitamin Shoppe puts forth every day and I would like to thank every one of them for making these achievements possible."

Mr. Truesdale further commented, "Our performance in 2012 reflects the strength of our business model and our improving financial position provides the necessary resources to fund our growth. Initiatives undertaken in the past year, including accelerating new product development, improving our customers online shopping experience, testing small market stores and opening our first stores in Canada have positioned us well for long-term sustainable growth."

Fiscal Fourth Quarter 2012 Results

Net sales in fiscal fourth quarter 2012 were $218.9 million compared to $214.9 million in the same period of the prior year.  Sales growth in the quarter was driven by: 1) a 5.2% increase in comparable sales, 2) growth from new stores, and, 3) a 13.4% increase in ecommerce sales.  Sales growth was partially offset by the impact of Superstorm Sandy which negatively impacted comparable sales by 1.6%.  When compared with the same period in the prior year, fiscal fourth quarter 2012 had one less selling week.  As reported last year, the extra week in fiscal fourth quarter 2011 contributed $15.6 million in revenue.

The Company opened 15 stores in the quarter and 54 for the full year.  Total store count was 579 as of December 29, 2012, compared with 528 on December 31, 2011 and included the first two stores in Canada.

Cost of goods sold, which includes product, warehouse, distribution and occupancy costs, increased $2.2 million, or 1.5%, to $142.5 million for the three months ended December 29, 2012, compared with $140.3 million for the three months ended December 31, 2011.

Gross profit increased $1.9 million, or 2.5%, to $76.4 million for the fiscal 2012 fourth quarter, compared with $74.5 million for fiscal fourth quarter 2011.  Gross profit as a percentage of net sales was 34.9% for the quarter ended December 29, 2012, up from 34.7% in fiscal fourth quarter 2011.

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 $3.4 million, or 6.0%, to $59.9 million for the quarter ended December 29, 2012, compared with $56.5 million for the quarter ended December 31, 2011.  SG&A as a percentage of net sales were 27.4% for the quarter ended December 29, 2012.  SG&A includes transaction related expenses for the Super Supplements acquisition of $1.3 million and Canadian start-up costs of approximately $0.4 million.  SG&A expenses in fourth quarter 2011 include store closing and impairment expenses of $1.3 million.  (See Table 3.) Adjusted SG&A as a percentage of net sales was 26.1% up from an adjusted 25.9% in fiscal fourth quarter 2011.  This increase was primarily due to higher depreciation and amortization expenses.

Income from operations in fiscal fourth quarter 2012 was $16.5 million compared to $18.0 million in fiscal fourth quarter 2011.  Income from operations for the quarter ended December 31, 2011, included $3.5 million attributable to the extra week.  As a percentage of net sales, income from operations was 7.5% for the fiscal 2012 fourth quarter, compared with 8.4% for fiscal fourth quarter 2011.  Adjusted operating margin was 9.1% in fiscal 4Q12 and 7.9% in fiscal 4Q11.  (See Table 3.)

Net income was $9.7 million for fiscal fourth quarter 2012, compared with $9.4 million for fiscal fourth quarter 2011.  Adjusted net income in fiscal fourth quarter 2012 was $12.1 million compared to $9.3 million in the same period of the prior year.  (See Table 3.)  This was primarily attributable to stronger sales and margin improvement.

Reported earnings per diluted share (EPS) were $0.32 in fiscal fourth quarter 2012.  Adjusted EPS was $0.40 in fiscal fourth quarter 2012, compared with adjusted fourth quarter 2011 EPS of $0.31. (See Table 3.)

Balance Sheet and Cash Flow
Cash and equivalents at December 29, 2012 were $81 million, of which approximately $50 million was utilized in February of fiscal 2013 to complete the acquisition of Super Supplements.  Capital expenditures were $12.2 million in the quarter and $30.8 million for the full year.  Capital expenditures were used primarily for the build-out of new stores, improvements to existing stores, as well as computer equipment related to those stores.  Additionally, approximately $5.0 million was expended in fiscal 2012 related to the new distribution center.

Fiscal 2012 Highlights:

  • Comparable store sales grew 8.2%, the highest annual level since 2003
  • Net sales increased 11.0%
  • Operating income rose 29.3%
  • Operating margin of 10.5%
  • Fully diluted EPS of $2.02
  • Opened 54 stores during the year, including first two in Canada

2013 Outlook
For the current year management expects:

  • Approximately 50 new stores
  • Comparable store sales growth in mid-single digits 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.  This figure is subject to change pending finalization of purchase accounting for the acquisition
  • Super Supplements acquisition is expected to be dilutive to earnings per share by approximately $0.03, which includes transaction and integration costs
  • Fully diluted shares outstanding of 30.7 million

Webcast

Management will host a conference call to discuss its fiscal fourth 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 2538074. The replay will be available until 11:59 p.m. ET on March 5, 2013.

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 580 company-operated Vitamin Shoppe retail stores, national mail order catalogs, and website, www.VitaminShoppe.com and 31 Super Supplements stores in the Pacific Northwest.  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 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 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.

 

TABLE 1

VITAMIN SHOPPE, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF OPERATIONS

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

(unaudited)

 
 
 

Three Months Ended

 

Fiscal Year Ended

 

December 29,

 

December 31,

 

December 29,

 

December 31,

 

2012

 

2011

 

2012

 

2011

 

(13 Weeks)

 

(14 Weeks)

 

(52 Weeks)

 

(53 Weeks)

               
               

Net sales

$           218,876

 

$          214,856

 

$            950,902

 

$            856,586

Cost of goods sold

142,485

 

140,328

 

617,920

 

563,627

Gross profit

76,391

 

74,528

 

332,982

 

292,959

Selling, general and administrative expenses

59,920

 

56,543

 

233,610

 

216,125

Income from operations

16,471

 

17,985

 

99,372

 

76,834

Loss on extinguishment of debt

   

83

     

635

Interest expense, net

124

 

249

 

659

 

2,325

Income before provision for income taxes

16,347

 

17,653

 

98,713

 

73,874

Provision for income taxes

6,669

 

8,241

 

37,888

 

29,010

Net income

$               9,678

 

$              9,412

 

$              60,825

 

$              44,864

               

Weighted average common shares outstanding

             

   Basic

29,893,361

 

28,984,731

 

29,473,711

 

28,802,103

   Diluted

30,460,739

 

29,697,814

 

30,110,237

 

29,556,024

Net income per common share

             

   Basic

$                 0.32

 

$                0.32

 

$                  2.06

 

$                  1.56

   Diluted

$                 0.32

 

$                0.32

 

$                  2.02

 

$                  1.52

 

 

 

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 29,

 

December 31,

 

December 29,

 

December 31,

   

2012

 

2011

 

2012

 

2011

   

(13 Weeks)

 

(14 Weeks)

 

(52 Weeks)

 

(53 Weeks)

Sales:

             

 

     Retail

$          194,532

 

$         191,501

 

$          849,765

 

$         765,925

 

     Direct

24,344

 

23,355

 

101,137

 

90,661

Net sales

$          218,876

 

$         214,856

 

$          950,902

 

$         856,586

                 

Income from operations:

             

 

     Retail

$            37,076

 

$           36,895

 

$          173,300

 

$         147,023

 

     Direct

4,230

 

4,330

 

19,588

 

16,705

 

     Corporate costs

(24,835)

 

(23,240)

 

(93,516)

 

(86,894)

Income from operations

$            16,471

 

$           17,985

 

$            99,372

 

$           76,834

                 

Increase in comparable store net sales (a)

5.2%

 

6.5%

 

8.2%

 

7.4%

Depreciation and Amortization

$              6,537

 

$             5,395

 

$            23,076

 

$           20,300

Impairment charge on fixed assets

-

 

236

 

730

 

887

Impairment charge on intangible assets

-

 

325

 

-

 

325

Amortization of deferred financing fees

27

 

90

 

258

 

372

                 

Capital Expenditures

$            12,150

 

$             9,876

 

$            30,775

 

$           25,046

                 

Gross profit as a percent of net sales

34.9%

 

34.7%

 

35.0%

 

34.2%

Income from operations as a percent of net sales

7.5%

 

8.4%

 

10.5%

 

9.0%

                 

Store Data:

             

 

     Stores open at beginning of period

564

 

515

 

528

 

484

 

         Stores opened

15

 

14

 

54

 

48

 

         Stores closed

 

(1)

 

(3)

 

(4)

 

     Stores open at end of period

579

 

528

 

579

 

528

                 
                 

     (a)  Comparable store net sales are based on a 13-week quarter and a 52-week year.

 

 

 

 

TABLE 3

VITAMIN SHOPPE, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - ADJUSTED

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

(unaudited)

 
 
 

Three Months Ended December 29, 2012

   
                       
 

As
Reported

 

Super

Storm
Sandy Impact

 

Start-up
Costs

 

Acquisition
Costs

 

As
Adjusted

   
                       

Net sales

$     218,876

 

$         3,015

 

$            (10)

 

$              -

 

$      221,881

   
                       

Income from operations

16,471

 

2,055

 

387

 

1,281

 

20,194

   
                       

Net income

9,678

 

1,239

 

387

 

772

 

12,076

   
                       

Net income per share - Diluted

$          0.32

 

$           0.04

 

$           0.01

 

$           0.03

 

$           0.40

   
                       
                       
                       
                       
 

Three Months Ended December 31, 2011

                       
 

As
Reported

 

Impact of
14th Week

 

Store Closing
Expenses

 

Impairments

 

Income Tax
Adjustments

 

As
Adjusted

                       

Net sales

$     214,856

 

$      (15,557)

 

$              -

 

$              -

 

$              -

 

$      199,299

                       

Income from operations

17,985

 

(3,532)

 

732

 

560

 

-

 

15,745

                       

Net income

9,412

 

(2,129)

 

440

 

336

 

1,249

 

9,308

                       

Net income per share - Diluted

$          0.32

 

$         (0.07)

 

$           0.01

 

$           0.01

 

$           0.04

 

$           0.31

 

 

 

TABLE 4

   

VITAMIN SHOPPE, INC. AND SUBSIDIARY

   

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - ADJUSTED

   

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

   

(unaudited)

   
     
     
 

Fiscal Year Ended December 29, 2012

       
                           
 

As
Reported

 

Super Storm
Sandy

Impact

 

Start-up
Costs

 

Acquisition
Costs

 

As
Adjusted

       
                           

Net sales

$     950,902

 

$         3,015

 

$            (10)

 

$              -

 

$      953,907

       
                           

Income from operations

99,372

 

2,055

 

797

 

1,281

 

103,505

       
                           

Net income

60,825

 

1,239

 

797

 

772

 

63,633

       
                           

Net income per share - Diluted

$          2.02

 

$           0.04

 

$           0.03

 

$           0.03

 

$           2.11

       
                           
                           
                           
                           
 

Fiscal Year Ended December 31, 2011

                           
 

As
Reported

 

Impact of
53rd Week

 

Non-income
Based Tax
Adjustment

 

Store
Closing
Expenses

 

Impairments

 

Income Tax
Adjustments

 

As
Adjusted

                           

Net sales

$     856,586

 

$      (15,557)

 

$              -

 

$              -

 

$              -

 

$              -

 

$      841,029

                           

Income from operations

76,834

 

(3,532)

 

3,721

 

732

 

1,212

 

-

 

78,967

                           

Net income

44,864

 

(2,129)

 

2,251

 

440

 

727

 

(245)

 

45,908

                           

Net income per share - Diluted

$          1.52

 

$         (0.07)

 

$           0.08

 

$           0.01

 

$           0.02

 

$         (0.01)

 

$           1.55

 

 

 

TABLE 5

VITAMIN SHOPPE, INC. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEETS

($ in thousands, except per share data)

(Unaudited)

 
 
 

December 29,

 

December 31,

 
 

2012

 

2011

 

ASSETS

 
         

Current assets:

       

  Cash and cash equivalents

$               81,168

 

$              10,754

 

  Inventories

137,693

 

121,494

 

  Prepaid expenses and other current assets

14,572

 

15,130

 

  Deferred income taxes

7,904

 

2,863

 

           Total current assets

241,337

 

150,241

 

Property and equipment, net

95,401

 

88,677

 

Goodwill

177,248

 

177,248

 

Other intangibles, net

69,116

 

68,852

 

Other long-term assets

3,183

 

2,812

 

Total assets

$             586,285

 

$            487,830

 
         

LIABILITIES AND STOCKHOLDERS' EQUITY 

       

Current liabilities:

       

  Current portion of capital lease obligations

$                      88

 

$                   956

 

  Accounts payable

22,445

 

21,416

 

  Deferred sales

20,912

 

18,859

 

  Accrued expenses and other current liabilities

44,439

 

39,667

 

         Total current liabilities

87,884

 

80,898

 

Capital lease obligations, net of current portion

80

 

-

 

Deferred income taxes

13,011

 

13,725

 

Deferred rent

30,150

 

28,738

 

Other long-term liabilities

7,742

 

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 December 29, 2012 and  December 31, 2011

-

 

-

 

  Common stock, $0.01 par value; 400,000,000 shares authorized, 30,170,627 shares issued and outstanding

       

    at December 29, 2012, and 29,216,888 shares issued and outstanding at December 31, 2011 

302

 

292

 

  Additional paid-in capital

287,574

 

256,795

 

  Accumulated other comprehensive income

1

 

-

 

  Retained earnings

159,541

 

98,716

 

       Total stockholders' equity

447,418

 

355,803

 

Total liabilities and stockholders' equity

$             586,285

 

$            487,830

 

 

 

 

 

SOURCE Vitamin Shoppe, Inc.


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