GNC Holdings Inc (NYSE:GNC) Same Store Sales Jumped 5.7% In Fourth Quarter


GNC Holdings Inc (NYSE:GNC) posted a jump in same store sales of 5.7% in Q4 for domestic firm-owned stores. Adjusted diluted EPS is expected to between $0.24 and $0.25 versus $0.07 in the comparable year quarter.

The buzz

Ken Martindale, the CEO of GNC, reported that in Q4 2017, their initiatives to reposition the business sustained to gain momentum. As they head into 2018, they will continue to focus 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.

As of the close of December 31, 2017, GNC’s cash and cash equivalents came at $64 million while long-term debt stood at $1.3 billion. The company retired the Revolving Credit Facility in Q4 and there were no due borrowings as of the close of December 31, 2017. It is repeating its free cash flow projection of $190 million – $210 million for FY2017.

The ongoing quarter adjusted diluted earnings discounts the impact of probable non-cash long-lived asset impairments, debt financing costs and the convertible debt exchange. Also, it discounts CEO executive placement expenses linked to form whole stock-based payout awards, a legal-related expense, tax reform and the firm’s assessment of the realization of its deferred tax assets.

GNC recently reported the engagement of Goldman Sachs & Co. as its strategic advisor so as to optimize the firm’s capital structure and improve shareholder value. Under this procedure the firm issued preliminary fourth quarter financial report. The firm does not intend to offer preliminary financial information in the imminent period other than in unique scenario, or in the case of a material event that needs disclosure. GNC is a major international global specialty wellness, health and performance retailer. In the last trading session, the stock jumped more than 51% to close the day at $5.26.

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