Vitamin Shoppe Up in 4Q, FY10

February 16, 2011

2 Min Read
Vitamin Shoppe Up in 4Q, FY10

NORTH BERGEN, N.J.Vitamin Shoppe Inc. (NYSE: VSI) released preliminary results for its fiscal fourth quarter (4Q) and fiscal year 2010 (FY10), ended Dec. 25, 2010. In 4Q10, the company saw a 6.5 percent increase in comp store sales, a rise in net sales of 11 percent (hitting $180.3 million compared to 4Q09), and a 54 percent gain in income from operations. Further, net income more than tripled, to $6.0 million, in 4Q compared to the similar 2009 time frame, and gross profit increased to $59.7 million, a 15.3 percent increase compared to 4Q09. Vitamin Shoppes FY10 results were similarly positive: 7.1 percent comp store sales growth, 11.4 percent net sales increase, 44.3 percent increase in income from operations, and net income more than doubled. Over the course of the year, Vitamin Shoppe opened 47 stores, including 12 during 4Q, and now operates 484 retail outlets.

Subsequent to year end, Vitamin Shoppe announced two finance-related transactions. The company amended and restated its Loan and Security Agreement with J.P. Morgan Chase dated Sept. 25, 2009, providing for a term loan of $25.0 million, with a maturity date of Jan. 18, 2013, and extending the maturity date of the existing $70.0 million revolving credit facility an additional two years to Sept. 25, 2015. Utilizing the proceeds from the new term loan, cash available on the balance sheet and the available credit facility the Company's subsidiary, Vitamin Shoppe Industries, Inc., announced the planned redemption on February 22, 2011 (the "Redemption Date") of the remaining $55.1 million of its Second Priority Senior Secured Floating Rate Notes due 2012.

Vitamin Shoppe further confirmed its outlook for 2011. Rick Markee, CEO, stated: "We are optimistic about the outlook for the current year, and are encouraged by the healthy trends in consumer demand and foot traffic in our stores. In 2011, we plan to increase our store base by 10 percent and drive 4 to 5 percent comparable store sales growth through consistent focus on our growth strategy. Strategically and financially, many initiatives were undertaken in 2010, our first full year as a public company. We believe these initiatives have positioned Vitamin Shoppe to deliver ongoing positive comparable store sales and profitable growth."

In additional news, the company promoted its president, Anthony Truesdale, to CEO and tapped its chief operating officer, Michael Archbold, to also serve as president. Markee, formerly CEO, remains chairman of the board and is now the companys executive chairman. In addition, Brenda Galgano was hired as CFO. The management changes are effective April 4, 2011.

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