GNC Financials Up for 2009

PITTSBURGHGeneral Nutrition Centers Inc. (GNC) reported net income and revenues were up for the fourth quarter (4Q) of 2009, as well as up for the fiscal year ended Dec. 31, 2009 (FY09). Net income for 4Q09 hit $12.7 million, a 56.3 percent increase over the comparable quarter in 2008; consolidated revenue for 4Q09 was $403.9 million, an increase of 3.1 percent over 4Q08. Revenue also increased in each of the companys segments: retail, 3.2 percent; franchise, 4.3 percent; and manufacturing/wholesale, 1.1 percent.

Joe Fortunato, CEO, said, The fourth quarter capped a successful 2009, as we continued to grow revenue, profit, Adjusted EBITDA margin, and cash generation. Equally important, we made key investments in the business and launched several initiatives to provide a foundation for future growth. We remain focused on science and product innovation that will continue to strengthen GNCs leading position in the health and wellness industry.

The numbers were also up for FY09, with net income of $69.6 million, a $14.8 million27.1 percentincrease over the 2008 fiscal year. Net income as a percentage of revenue was 4.1 percent, revenue was up in each of the business segments, and same store sales improved 2.8 percent in domestic company-owned stores, including e-commerce sales.

Over the course of 2009, GNC opened 51 net new domestic company-owned stores, 7 net new company-owned stores in Canada, 117 net new international franchise locations, and 157 net new franchise store-within-a-store Rite Aid locations. The company closed 45 net domestic franchise locations. GNC currently has more than 6,900 locations, with more than 5,400 retail outlets in the United States, with franchise operations in 47 countries.