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 GNC Holdings, Inc. Reports Second Quarter 2019 Results
   Monday, July 22, 2019 6:50:00 AM ET
  • Net income of $16.1 million for the second quarter of 2019; Adjusted net income of $18.3 million, an 8.3% increase compared with the second quarter of 2018
  • Domestic same store sales decreased 4.6% compared with the second quarter of 2018; International segment revenue, excluding China, increased 1.3%
  • Adjusted EBITDA of $61.6 million, improved 125 bps as a percentage of revenue compared with the second quarter of 2018

PITTSBURGH, July 22, 2019 (GLOBE NEWSWIRE) -- GNC Holdings, Inc. (NYSE: GNC) (the “Company”) reported consolidated revenue of $534.0 million in the second quarter of 2019, compared with consolidated revenue of $617.9 million in the second quarter of 2018.  The decrease in revenue was primarily a result of the transfer of the Nutra manufacturing and China businesses to the newly formed joint ventures, negative same store sales and the closure of company-owned stores under our store portfolio optimization strategy.

Key Updates

  • U.S. & Canada segment achieved second consecutive quarter year-over-year operating income growth.  Operating income margin increased 150 bps to 10.3% from 8.8% in the second quarter of 2018
  • GNC brand mix increased to 53% compared with 51% in the second quarter of 2018
  • Recently launched Lit AF, an enhanced, next generation pre-workout dietary supplement in the $135 million Beyond Raw GNC brand
  • Reduced debt by an additional $34 million during the second quarter of 2019 to further deleverage the capital structure
  • Ended second quarter with $171 million in liquidity

For the second quarter of 2019, the Company reported net income of $16.1 million compared with net income of $13.3 million in the prior year quarter. Diluted earnings per share ("EPS") was $0.11 in the current quarter compared with diluted EPS of $0.16 in the prior year quarter. Excluding the expenses outlined in the table below, adjusted net income was $18.3 million1 in the current quarter, compared with adjusted net income of $16.9 million1 in the prior year quarter.  Adjusted diluted EPS was $0.131 in the current quarter compared with $0.201 in the prior year quarter. Diluted EPS and Adjusted diluted EPS in the current quarter reflects the impact of convertible preferred stock on an if-converted basis.

Adjusted EBITDA, as defined and reconciled to net income in the table below, was $61.6 million2, or 11.5% of revenue, in the current quarter compared with $63.5 million2, or 10.3% of revenue, in the prior year quarter.

“During the second quarter of 2019, although we experienced some softness in our sales, we delivered meaningful growth in our operating income margins consistent with our long-term strategy,” said Ken Martindale, GNC’s Chairman and CEO.  “The quarter represented solid progress towards our store optimization and cost savings initiatives. Recently, Ryan Ostrom joined us as Chief Brand Officer bringing extensive marketing and digital experience with industry leading brands. We are confident he will expand our omni-channel capabilities, and look forward to his leadership to grow our brand across the globe.”

______________________
1 This Non-GAAP financial measure is reconciled to GAAP below, under the caption "Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted EPS"
2  This Non-GAAP financial measure is reconciled to GAAP below, under the caption "Reconciliation of Net Income to Adjusted EBITDA"


Segment Operating Performance

U.S. & Canada

Revenues in the U.S. and Canada segment decreased $41.2 million, or 8.0%, to $476.1 million for the three months ended June 30, 2019 compared with $517.3 million in the prior year quarter. E-commerce sales comprised 8.1% of U.S. and Canada revenue for the three months ended June 30, 2019 compared with 8.3% in the prior year quarter.

The decrease in revenue compared with the prior year quarter was primarily due to negative same store sales of 4.6%, which resulted in a revenue decrease of $17.5 million, and the closure of company-owned stores under our store portfolio optimization strategy, which contributed a $14.9 million decrease in revenue. In domestic franchise locations, same store sales for the second quarter of 2019 decreased 1.8% over the prior year quarter.

Operating income increased $3.6 million to $49.2 million, or 10.3% of segment revenue, for the three months ended June 30, 2019 compared with $45.6 million, or 8.8% of segment revenue, for the same period in 2018. The increase in operating income was primarily due to lower occupancy, salaries and benefits, marketing, and distribution and transportation costs as compared to the same period in 2018. The increase in operating income percentage was driven by lower occupancy expense partially offset by expense deleverage in salaries and benefits associated with a decrease in company-owned same store sales.

International

Revenues in the International segment decreased $9.2 million, or 18.9%, to $39.4 million for the three months ended June 30, 2019 compared with $48.6 million in the prior year quarter mostly due to the transfer of the China business to the newly formed joint venture, effective February 13, 2019.  The decline was partially offset by a $0.7 million increase in sales to our international franchisees.

Operating income decreased $1.4 million to $14.3 million, or 36.2% of segment revenue, for the three months ended June 30, 2019 compared with $15.7 million, or 32.3% of segment revenue, for the same period in 2018.  The increase in operating income percentage was primarily a result of the transfer of the China business to the newly formed joint venture.

Manufacturing / Wholesale

Revenues in the Manufacturing / Wholesale segment, excluding intersegment sales, decreased $33.5 million, or 64.4%, to $18.5 million for the three months ended June 30, 2019 compared with $52.0 million in the prior year quarter primarily due to the transfer of the Nutra manufacturing business to the newly formed manufacturing joint venture with International Vitamin Corporation, effective March 1, 2019.

Operating income decreased $3.8 million to $12.1 million, or 65.5% of segment revenue, for the three months ended June 30, 2019 compared with $15.9 million, or 13.6% of segment revenue, in the prior year quarter.  Revenue decreased as a result of the transfer of the Nutra manufacturing business to the newly formed joined venture. However, operating income margins were positively impacted as the Manufacturing / Wholesale segment recognized profit margin that resulted from maintaining consistent pricing to what was charged to our other operating segments prior to the inception of the manufacturing joint venture, and recorded profit on intersegment sales associated with inventory produced prior to the transfer of the Nutra manufacturing business to the joint venture.

Year-to-Date Performance

For the first six months of 2019, the Company reported consolidated revenue of $1,098.8 million, a decrease of $126.7 million compared with consolidated revenue of $1,225.5 million for the first six months of 2018. The decrease in revenue during the first six months of 2019 compared to the prior year period was primarily due to the transfer of the Nutra manufacturing and China e-commerce businesses to the newly formed joint ventures, which resulted in an approximate $61 million decrease in revenue, the closure of company-owned stores under our store portfolio optimization strategy, which resulted in an approximate $29 million decrease in revenue, and negative same store sales of 3.1%.

For the first six months of 2019, the Company reported net income of $0.8 million and diluted loss per share of $0.09, which included the reduction to net income for the cumulative undeclared dividends of $8.7 million, compared with net income of $19.5 million and diluted EPS of $0.23 for the first six months of 2018. Excluding the expenses outlined in the reconciliation table below, adjusted EPS was $0.28 and $0.44 in the first six months of 2019 and 2018, respectively. Adjusted Diluted EPS in the current year reflects the impact of the convertible preferred stock on an if-converted basis

Cash Flow and Liquidity Metrics

For the six months ended June 30, 2019, the Company generated net cash from operating activities of $65.3 million compared with $49.1 million for the six months ended June 30, 2018. The increase was driven by favorable working capital changes primarily due to an increase in accounts payable as a result of the Company's cash management efforts as well as the establishment of the manufacturing joint venture.

For the six months ended June 30, 2019, the Company generated $58.9 million3 in free cash flow compared with $40.8 million3 for the six months ended June 30, 2018. The Company defines free cash flow as cash provided by operating activities less capital expenditures. At June 30, 2019, the Company’s cash and cash equivalents were $95.9 million and debt was $854.7 million. No borrowings were outstanding on the Company's Revolving Credit Facility at the end of the second quarter of 2019.

Conference Call

GNC has scheduled a live webcast to report its second quarter 2019 financial results on July 22, 2019 at 8:30 a.m. ET. To participate on the live call, listeners in North America may dial 1-888-882-4478 and international listeners may dial 1-323-794-2590.  In addition, a live webcast of the call will be available on www.gnc.com via the Investor Relations section under “About GNC.”  A replay of this webcast will be available through August 5, 2019.

About Us

GNC Holdings, Inc.  (NYSE: GNC) - is a global health and wellness brand that helps people live well. The company is known and trusted for quality performance and nutritional supplements, and its broad assortment features innovative private-label products as well as nationally recognized third-party brands, many of which are exclusive to GNC.

GNC’s diversified, omni-channel business model has global reach and a well-recognized, trusted brand that provides customers with excellent service, product knowledge and solutions. The company serves consumers worldwide through company-owned retail locations, domestic and international franchise activities, and e-commerce. GNC also has exceptional innovation and product development capabilities and generates revenue through corporate partnerships. As of June 30, 2019, GNC had approximately 8,000 locations, of which approximately 5,900 retail locations are in the United States (including approximately 2,000 Rite Aid licensed store-within-a-store locations) and the remainder are locations in approximately 50 countries.

______________________
3 This Non-GAAP financial measure is reconciled to GAAP below, under the caption "Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow".


Forward-Looking Statements Involving Known and Unknown Risks and Uncertainties

This release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to the Company’s financial condition, results of operations and business that is not historical information. Forward-looking statements can be identified by the use of terminology such as “subject to,” “believes,” “anticipates,” “plans,” “expects,” “intends,” “estimates,” “projects,” “may,” “will,” “should,” “can,” the negatives thereof, variations thereon and similar expressions, or by discussions regarding dividend, share repurchase plan, strategy and outlook. While GNC believes there is a reasonable basis for its expectations and beliefs, they are inherently uncertain. The Company may not realize its expectations and its beliefs may not prove correct. Many factors could affect future performance and cause actual results to differ materially from those matters expressed in or implied by forward-looking statements, including but not limited to competition; our ability execute on, or realize the expected benefit from the implementation of, our strategic initiatives; resources devoted to product innovation may not yield new products that achieve commercial success; difficulties with our vendors; failure to maintain and/or upgrade our information technology systems, including electronic payments systems; risks and costs associated with security breaches, data loss, credit card fraud and identity theft; risks associated with our international operations; impact of our current debt profile and obligations under our debt instruments; deployment of real estate strategy and significant lease obligation; successful development and maintenance of a relevant omni-channel experience for our customers; disruptions in our manufacturing system; unfavorable publicity or consumer perception of our products; any significant disruption to our distribution network, inventory management system, or to the timely receipt of inventory; issues with franchisees; material product liability claims, or product recalls; any increase in the price and shortage of supply of key raw materials; general economic conditions, including a prolonged weakness in the economy; compliance with new and existing laws and governmental regulations; failure to comply with FTC regulations; failure  to protect our brand name and intellectual property; potential impact of issuance of Series A Convertible Preferred Stock including dividend and repurchase obligations; the terms and features of our current Notes may have a negative impact on our liquidity, dilution or reported financial results; issues related to joint ventures; failure to attract or retain key employees; not being insured for a significant portion of our claims exposure; our use of derivative instruments for hedging purposes; impact of potential future impairment charges; our holding company structure; historic volatility of our common stock price; and the impact of natural disasters (whether or not caused by climate change), unusually adverse weather conditions, pandemic outbreaks, terrorist acts and global politics.

The Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Actual results could differ materially from those described or implied by such forward-looking statements. For a listing of factors that may materially affect such forward-looking statements, please refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2018.

Non-GAAP Measures

Management has included non-GAAP financial measures in this press release, including adjusted net income, adjusted EPS, adjusted EBITDA, segment operating income, segment operating income as a percentage of segment revenue, adjusted as reflected in this release, free cash flow and comparable same store sales, because it believes they represent an effective supplemental means by which to measure the Company’s operating performance.

Management believes that these measures are useful to investors as they enable the Company and its investors to evaluate and compare the Company’s results from operations in a more meaningful and consistent manner by excluding specific items which are not reflective of ongoing operating results and that can differ significantly from company to company depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which companies operate and capital investments.

However, these measures are not measurements of the Company’s performance under GAAP and should not be considered as alternatives to earnings per share, net income or any other performance measures derived in accordance with GAAP, or as an alternative to GAAP cash flow from operating activities, or as a measure of the Company’s profitability or liquidity.  For more information, see the attached reconciliations of non-GAAP financial measures.





GNC HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(in thousands, except per share amounts)

 Three months ended
June 30,
 Six months ended
June 30,
 2019 2018 2019 2018
  
 (unaudited)
Revenue$533,997  $617,944  $1,098,760  $1,225,477 
Cost of sales, including warehousing, distribution and occupancy340,253  410,209  701,925  810,868 
Gross profit193,744  207,735  396,835  414,609 
Selling, general, and administrative143,840  158,531  292,143  319,261 
Loss on net asset exchange for the formation of the joint ventures1,779    21,293   
Other (income) loss, net(593) 320  (801) 75 
Operating income48,718  48,884  84,200  95,273 
Interest expense, net24,964  32,943  57,920  54,716 
Loss on debt refinancing      16,740 
Loss on forward contracts for the issuance of convertible preferred stock    16,787   
Gain on convertible debt repurchase(3,214)   (3,214)  
Income before income taxes26,968  15,941  12,707  23,817 
Income tax expense13,030  2,600  14,986  4,286 
Income (loss) before income from equity method investments13,938  13,341  (2,279) 19,531 
Income from equity method investments2,120    3,075   
Net income$16,058  $13,341  $796  $19,531 
Earnings (loss) per share:       
Basic$0.13  $0.16  $(0.09) $0.23 
Diluted$0.11  $0.16  $(0.09) $0.23 
Weighted average common shares outstanding:       
Basic83,663  83,332  83,587  83,282 
Diluted140,942  83,409  83,587  83,389 
            


GNC HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted EPS
(in thousands, except per share data)

 Three months ended June 30, Six months ended June 30
 2019 2018 2019 2018
 Net
Income
 Diluted
EPS
 Net
Income
 Diluted
EPS
 Net
Income
 Diluted
EPS (1)
 Net
Income
 Diluted
EPS
  
 (unaudited)
Reported$16,058  $0.11  $13,341  $0.16  $796  $(0.09) $19,531  $0.23 
Loss on net asset exchange for the formation of the joint ventures1,779  0.01      21,293  0.16     
Gain on convertible notes repurchase(3,214) (0.02)     (3,214) (0.02)    
Amortization of discount in connection with early debt payment        3,119  0.02     
Loss on forward contracts related to the issuance of convertible preferred stock        16,787  0.13     
Loss on debt refinancing            16,740  0.20 
Other (2)464    2,655    1,177  0.01  3,463  0.04 
Tax effect of items above(3)3,219  0.02  943  0.01  (2,617) (0.02) (2,711) (0.03)
Adjusted$18,306  $0.13  $16,939  $0.20  $37,341  $0.28  $37,023  $0.44 
                
Weighted average diluted common shares outstanding140,942    83,409    133,787   83,389  
                  


Reconciliation of Net Income to Adjusted EBITDA
(in thousands)

 Three months ended
June 30,
 Six months ended
June 30,
 2019 2018 2019 2018
  
 (unaudited)
Net income$16,058  $13,341  $796  $19,531 
Income tax expense13,030  2,600  14,986  4,286 
Interest expense, net24,964  32,943  57,920  54,716 
Loss on debt refinancing      16,740 
Depreciation and amortization8,514  12,001  18,704  24,106 
Loss on net asset exchange for the formation of the joint ventures1,779    21,293   
Loss on forward contract related to the issuance of convertible preferred stock    16,787   
Gain on convertible notes repurchase(3,214)   (3,214)  
Other (2)464  2,655  1,177  3,463 
Adjusted EBITDA$61,595  $63,540  $128,449  $122,842 

(1) The Company applies the if-converted method to calculate dilution impact of the convertible senior notes and the convertible preferred stock. For diluted EPS, the underlying shares of the convertible preferred stock and the convertible senior notes are anti-dilutive.  Therefore, diluted EPS includes the reduction to net income for the cumulative undeclared dividends of $8.7 million. For Adjusted diluted EPS, the underlying shares of the convertible preferred stock are dilutive and the convertible senior notes are anti-dilutive. As a result of the differences in the calculation for diluted EPS and adjusted diluted EPS, amounts do not sum.

(2) The three and six months ended June 30, 2019 includes retention of $0.8 million and $1.6 million, respectively and immaterial refranchising gains. The three and six months ended June 30, 2018 includes retention of $2.2 million and $3.0 million, respectively, $0.6 million in joint venture start-up costs incurred in connection with the Harbin transaction and  immaterial refranchising gains. The retention expense recognized in 2019 and 2018 relates to an incentive program to retain senior executives and certain other key personnel who are critical to the execution and success of the Company's strategy.  The total amount awarded was approximately $10 million, of which approximately $1 million has been forfeited, which vests in four installments of 25% each on November 2018, February 2019, August 2019 and February 2020.

(3)  For the three and six months ended June 30, 2019, the Company generally utilizes a blended federal rate plus a net state rate that excludes the impact of certain state NOL's, state credits and valuation allowance to calculate the impact of adjusted items.  In connection with the transfer of the Nutra manufacturing net assets to the newly formed manufacturing joint venture, the Company recorded a gain for tax purposes which was treated as ordinary and impacts the Company’s annual effective tax rate.  Therefore, for adjusted diluted EPS, the tax effect for the impact of the loss on net asset exchange for equity method investments related to the manufacturing joint venture transaction was adjusted consistent with the annual treatment for tax purposes.  For the three and six months ended June 30, 2018,  the Company utilized an annual effective tax rate, adjusted to exclude discrete items and the tax impact of loss on debt financing.



GNC HOLDINGS, INC. AND SUBSIDIARIES
U.S. Company-Owned Same Store Sales (including GNC.com )

 2019 2018
 Q1
3/31
 Q2
6/30
 Q1
3/31
 Q2
6/30
Contribution to same store sales:       
Domestic retail same store sales(1.9)% (3.9)% (1.2)% (4.2)%
GNC.com contribution to same store sales0.3 % (0.7)% 1.7 % 3.8 %
Total same store sales(1.6)% (4.6)% 0.5 % (0.4)%
            


GNC HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands)

 June 30, December 31,
 2019 2018
  
 (unaudited)
Current assets:   
Cash and cash equivalents$95,893  $67,224 
Receivables, net110,996  127,317 
Inventory405,426  465,572 
Forward contracts for the issuance of convertible preferred stock  88,942 
Prepaid and other current assets15,746  55,109 
Total current assets628,061  804,164 
Long-term assets:   
Goodwill79,266  140,764 
Brand name300,720  300,720 
Other intangible assets, net74,128  92,727 
Property, plant and equipment, net91,966  155,095 
Right-of-use assets379,954   
Equity method investments99,709   
Other long-term assets34,403  34,380 
Total long-term assets1,060,146  723,686 
Total assets$1,688,207  $1,527,850 
Current liabilities:   
Accounts payable$144,726  $148,782 
Current portion of long-term debt  158,756 
Current portion of lease liabilities113,919   
Deferred revenue and other current liabilities104,502  120,169 
Total current liabilities363,147  427,707 
Long-term liabilities:   
Long-term debt854,740  993,566 
Deferred income taxes13,929  39,834 
Lease liabilities373,219   
Other long-term liabilities45,629  82,249 
Total long-term liabilities1,287,517  1,115,649 
Total liabilities1,650,664  1,543,356 
    
Mezzanine equity:   
Convertible preferred stock211,395  98,804 
    
Stockholders’ deficit:   
Common stock130  130 
Additional paid-in capital1,010,591  1,007,827 
Retained earnings554,497  613,637 
Treasury stock, at cost(1,725,349) (1,725,349)
Accumulated other comprehensive loss(13,721) (10,555)
Total stockholders’ deficit(173,852) (114,310)
Total liabilities, mezzanine equity and stockholders’ deficit$1,688,207  $1,527,850 
        


GNC HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(in thousands)

 Six months ended June 30,
 2019 2018
  
 (unaudited)
Cash flows from operating activities:   
Net income$796  $19,531 
Adjustments to reconcile net income to net cash provided by operating activities:   
Depreciation and amortization expense18,704  24,106 
Income from equity method investments(3,075)  
Amortization of debt costs12,364  9,025 
Stock-based compensation2,992  3,474 
Loss on forward contracts related to the issuance of convertible preferred stock16,787   
Loss on net asset exchange for the formation of the joint ventures121,293   
Gain on convertible notes repurchase(3,214)  
Gains on refranchising(398) (208)
Loss on debt refinancing  16,740 
Third-party fees associated with refinancing  (16,322)
Changes in assets and liabilities1:   
(Increase) decrease in receivables(4,400) 2,112 
Increase in inventory(706) (9,201)
(Increase) decrease in prepaid and other current assets874  (3,175)
Increase in accounts payable24,886  6,751 
Decrease in deferred revenue and accrued liabilities(6,081) (1,017)
Decrease in net lease liabilities(18,556)  
Other operating activities3,057  (2,674)
Net cash provided by operating activities65,323  49,142 
    
Cash flows from investing activities:   
Capital expenditures(6,460) (8,333)
Refranchising proceeds1,710  1,175 
Store acquisition costs(190) (118)
Proceeds from net asset exchange101,000   
Capital contribution to the newly formed joint ventures(13,079)  
Net cash provided by (used in) investing activities82,981  (7,276)
    
Cash flows from financing activities:   
Borrowings under revolving credit facility22,000  104,000 
Payments on revolving credit facility(22,000) (104,000)
Proceeds from the issuance of convertible preferred stock199,950   
Payments on Tranche B-1 Term Loan(147,312) (2,275)
Payments on Tranche B-2 Term Loan(123,774) (21,400)
Convertible notes repurchase(24,708)  
Original Issuance Discount and revolving credit facility fees(10,365) (35,235)
Fees associated with the issuance of convertible preferred stock(12,814) (3,014)
Minimum tax withholding requirements(228) (226)
Net cash used in financing activities(119,251) (62,150)
    
Effect of exchange rate changes on cash and cash equivalents(384) (364)
Net increase (decrease) in cash and cash equivalents28,669  (20,648)
Beginning balance, cash and cash equivalents67,224  64,001 
Ending balance, cash and cash equivalents$95,893  $43,353 

(1) Change in working capital amounts related to the transfer of net assets to the newly formed joint ventures are included in the caption "Loss on net asset exchange for the formation of joint ventures".



GNC HOLDINGS, INC. AND SUBSIDIARIES
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
(in thousands)

 Six months ended
June 30,
 2019 2018
  
 (unaudited)
    
Net cash provided by operating activities$65,323  $49,142 
Capital expenditures(6,460) (8,333)
Free cash flow$58,863  $40,809 
    


GNC HOLDINGS, INC. AND SUBSIDIARIES
Segment Financial Data
 (in thousands)

 Three months ended
June 30,
 Six months ended
June 30,
 2019 2018 2019 2018
  
 (unaudited)
Revenue:       
U.S. and Canada$476,060  $517,317  $965,216  $1,029,731 
International39,448  48,635  80,371  88,700 
Manufacturing / Wholesale:       
Intersegment revenues  65,238  35,505  129,901 
Third-party18,489  51,992  53,173  107,046 
Subtotal Manufacturing / Wholesale18,489  117,230  88,678  236,947 
Total reportable segment revenues533,997  683,182  1,134,265  1,355,378 
Elimination of intersegment revenues  (65,238) (35,505) (129,901)
Total revenue$533,997  $617,944  $1,098,760  $1,225,477 
Operating income:       
U.S. and Canada$49,202  $45,603  $101,302  $89,093 
International14,269  15,692  28,319  30,156 
Manufacturing / Wholesale12,118  15,889  27,462  30,853 
Total reportable segment operating income75,589  77,184  157,083  150,102 
Corporate costs(25,079) (28,300) (51,340) (54,779)
Loss on net asset exchange for the formation of the joint ventures(1,779)   (21,293)  
Other(13)   (250) (50)
Unallocated corporate costs, loss on net asset exchange and other(26,871) (28,300) (72,883) (54,829)
Total operating income$48,718  $48,884  $84,200  $95,273 
                


GNC HOLDINGS, INC. AND SUBSIDIARIES
Consolidated Store Count Activity

 Six months ended June 30,
 2019 2018
U.S. & Canada   
Company-owned(1):   
Beginning of period balance3,206  3,423 
Openings13  11 
Acquired franchise locations(2)14  12 
Franchise conversions(3)(4) (3)
Closings(159) (115)
End of period balance3,070  3,328 
Domestic Franchise:   
Beginning of period balance1,037  1,099 
Openings3  9 
Acquired franchise locations(2)(11) (12)
Franchise conversions(3)4  3 
Closings(33) (27)
End of period balance1,000  1,072 
International(4):   
Beginning of period balance1,957  2,015 
Openings50  36 
Closings(53) (43)
  China locations contributed to the China joint venture(5)  
End of period balance1,949  2,008 
Store-within-a-store (Rite Aid):   
Beginning of period balance2,183  2,418 
Openings19  21 
Closings(201) (78)
End of period balance2,001  2,361 
Total Locations8,020  8,769 

_______________________________________________________________________________

(1) Includes Canada.

(2) Stores that were acquired from franchisees and subsequently converted into company-owned store locations.

(3) Company-owned store locations sold to franchisees.

(4) Includes franchise locations in approximately 50 countries (including distribution centers where sales are made) and company-owned locations in Ireland. Prior year also includes company-owned locations in China.


Contacts:  
   
Investors: Matt Milanovich, VP- Investor Relations & Treasury, (412) 402-7260; or
  John Mills, Partner - ICR, (646) 277-1254
   
SOURCE: GNC Holdings, Inc.
   
Web site: http://www.gnc.com

 

GNC logo.jpg

Source: GNC Holdings, Inc.


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