GNC Holdings Inc (NYSE:GNC) Issues Q4 2017 Update

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GNC Holdings Inc (NYSE:GNC) posted a jump in Q4 2017 same store sales for domestic firm-owned stores, including GNC.com sales of 5.7%. Ken Martindale, the CEO, expressed that in Q4 2017, their initiatives to reposition their business continued to record momentum. As they head into 2018, they will continue to emphasis on their major initiatives including international business growth, capital structure improvement, innovative and exclusive services and products, a more engaging digital and e-commerce platform and further consumer experience improvements.

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Adjusted diluted “EPS” is projected to come between $0.24 and $0.25 versus $0.07 in the previous year quarter. As of the close of December 31, 2017, the firm’s cash/cash equivalents came at $64 million while long-term debt stood at $1.3 billion. GNC retired the Revolving Credit Facility in Q4 2017 and there were no borrowings due as of the close of December 31, 2017. The firm is restating its free cash flow projection of $190 million to $210 million for FY2017.

The present quarter adjusted diluted EPS discounts the impact of probable non-cash long-lived asset impairments as well as the convertible debt exchange and linked debt financing costs, Chief executive placement costs linked to carry out whole stock-based payment awards, a legal-related expense, tax reform and the firm’s assessment of the realizability of GNC deferred tax assets, which the firm is in the course of finalizing.

GNC Holdings recently reported the engagement of Goldman Sachs and Company as its strategic advisor so as to help optimize the firm’s capital structure and improve shareholder value. As part of this procedure the firm issued preliminary Q4 2017 financial report. The firm does not intend to provide preliminary financial data in the imminent period other than in unique scenario, or in the case of a material event that warrants disclosure. As it is known, the company is headquartered in Pittsburgh, PA.

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