Third Quarter Highlights:
– Comparable store sales grew 9.6%
– E-commerce revenue increased 16.9%
– Net sales increased 14.4%
– Fully diluted EPS of $0.54, up from $0.40

 

Vitamin Shoppe, Inc. (NYSE: VSI), a leading specialty retailer and direct marketer of nutritional products, today announced preliminary results for its fiscal third quarter ended September 29, 2012.  Net sales in fiscal third quarter 2012 advanced 14.4% while operating income rose 40.5%.  During the period, the company reported fully diluted earnings per share (EPS) of $0.54; up from $0.40 in fiscal third quarter 2011. For the nine-month period, fully diluted EPS was $1.71, up from $1.20 in the comparable period of the prior year.

Tony Truesdale, Chief Executive Officer of the Company commented, "We reported another quarter of strong growth while also investing for the future.  We are pleased with our business, our positioning and our consistent and predictable results.  The third quarter represented our 28^th consecutive quarter of positive comparable store sales."

Fiscal Third Quarter 2012 Results

Net sales increased $30.1 million, or 14.4%, to $239.0 million for the three months ended September 29, 2012, compared with $208.9 million for the three months ended September 24, 2011.  This increase was the result of; 1) a 9.6% increase in comparable store sales, 2) growth from new stores, and 3) a 16.9% increase in e-commerce sales.

Cost of goods sold, which includes product, warehouse, distribution and occupancy costs, increased $17.0 million, or 12.2%, to $156.5 million for the three months ended September 29, 2012, compared with $139.5 million for the three months ended September 24, 2011.

Gross profit increased $13.1 million, or 18.8%, to $82.5 million for the fiscal 2012 third quarter, compared with $69.4 million for fiscal third quarter 2011.  Gross profit as a percentage of net sales was 34.5% for the quarter ended September 29, 2012, up from 33.2% in fiscal third quarter 2011.  The improvement in gross profit margin reflects leverage on occupancy and product margin improvement.

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 $5.9 million, or 11.4%, to $57.7 million for the quarter ended September 29, 2012, compared with $51.8 million for the quarter ended September 24, 2011.  SG&A as a percentage of net sales were 24.2% for the quarter ended September 29, 2012, down from 24.8% in fiscal third quarter 2011.  This improvement was due to sales leverage.

Income from operations increased $7.1 million, or 40.5%, to $24.8 million for the three months ended September 29, 2012, compared with $17.6 million for the three months ended September 24, 2011.  As a percentage of net sales , income from operations was 10.4% for the fiscal 2012 third quarter, compared with 8.4% for fiscal third quarter 2011.

Net income increased $4.4 million or 36.8%, to $16.3 million for the three months ended September 29, 2012, compared with $11.9 million for fiscal third quarter 2011.  This was primarily attributable to stronger sales and margin improvement. Net income also benefitted from a lower effective tax rate in both this year's and last year's third quarters, which primarily reflects the reversal of charges previously recorded related to uncertain tax positions due to the expiration of applicable statutes of limitation.  The net benefit to the provision for income taxes was $1.6 million and $1.0 million for the fiscal third quarters of 2012 and 2011, respectively.

Earnings per diluted share were $0.54 in fiscal third quarter 2012 up from $0.40 in third quarter 2011.

Balance Sheet and Cash Flow

Cash and equivalents at September 29, 2012 were $76.1 million.  Capital expenditures were $7.7 million in the quarter.  Capital expenditures were used primarily for the build-out of new stores and improvements to existing stores, as well as computer equipment related to those stores.

 

2012 Outlook

For the current year management expects:

• To open approximately 52 new stores
• Comparable store sales growth for the full year of approximately 8%
• Continued improvement in operating income margin
• Capital expenditures between $35 million and $40 million
• Fourth quarter 2012 fully diluted shares outstanding of 30.5 million

 

Preliminary 2013 Outlook

For the upcoming year management expects:

• To open approximately 57 new stores
• Comparable store sales growth in mid-single digits for the year
• Continued improvement in operating income margin
• Capital expenditures of approximately $45 million, which includes capital for the new distribution center
• Depreciation of approximately $26 million
• Fully diluted shares outstanding of 30.7 million

Webcast

Management will host a conference call to discuss its fiscal third 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 7104137. The replay will be available until 11:59 p.m. ET on November 13, 2012.

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 560 company-owned retail stores, national mail order catalogs, and website, www.VitaminShoppe.com. 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 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SOURCE Vitamin Shoppe, Inc.