GNC 2009 Annual Report Download - page 49

Table of Contents
Results of Operations
(Dollars in millions and percentages expressed as a percentage of total net revenues)
Successor
Successor Combined Predecessor March 16 - Predecessor
Year Ended December 31, Year Ended December 31, January 1 - March 15, December 31, Year Ended December 31,
2008 2007 2007 2007 2006
Revenues:
Retail $ 1,219.3 73.6% $ 1,168.6 75.3% $ 259.3 78.6% $ 909.3 74.3% $ 1,122.7 75.5%
Franchise 258.0 15.6% 241.1 15.5% 47.2 14.3% 193.9 15.9% 232.3 15.6%
Manufacturing / Wholesale 179.4 10.8% 143.1 9.2% 23.3 7.1% 119.8 9.8% 132.1 8.9%
Total net revenues 1,656.7 100.0% 1,552.8 100.0% 329.8 100.0% 1,223.0 100.0% 1,487.1 100.0%
Operating expenses:
Cost of sales, including warehousing, distribution
and occupancy costs 1,082.6 65.3% 1,026.4 66.1% 212.2 64.4% 814.2 66.5% 983.5 66.1%
Compensation and related benefits 249.8 15.1% 260.1 16.7% 64.3 19.5% 195.8 16.0% 260.8 17.5%
Advertising and promotion 55.1 3.3% 55.5 3.6% 20.5 6.2% 35.0 2.9% 50.7 3.4%
Other selling, general and administrative
expenses 87.8 5.3% 78.6 5.1% 16.5 5.0% 62.1 5.1% 87.8 6.0%
Amortization expense 10.9 0.7% 10.0 0.6% 0.8 0.2% 9.2 0.7% 4.6 0.3%
Foreign currency loss (gain) 0.7 0.0% (0.5) 0.0% (0.1) 0.0% (0.4) 0.0% (0.7) 0.0%
Other expense — 0.0% — 0.0% — 0.0% — 0.0% 1.2 0.0%
Merger-related costs — 0.0% 34.6 2.2% 34.6 10.5% — 0.0% — 0.0%
Total operating expenses 1,486.9 89.7% 1,464.7 94.3% 348.8 105.8% 1,115.9 91.2% 1,387.9 93.3%
Operating income:
Retail 140.9 8.5% 134.7 8.7% 28.2 8.6% 106.5 8.8% 127.4 8.6%
Franchise 80.8 4.9% 69.5 4.5% 14.5 4.4% 55.0 4.5% 64.1 4.3%
Manufacturing / Wholesale 67.4 4.1% 49.2 3.1% 10.3 3.1% 38.9 3.2% 51.0 3.4%
Unallocated corporate and other costs:
Warehousing and distribution costs (54.2) -3.3% (51.4) -3.3% (10.7) -3.2% (40.7) -3.3% (50.7) -3.4%
Corporate costs (65.1) -3.9% (79.3) -5.1% (26.7) -8.2% (52.6) -4.4% (91.4) -6.2%
Merger related costs — 0.0% (34.6) -2.2% (34.6) -10.5% — 0.0% — 0.0%
Other (expense) income — 0.0% — 0.0% — 0.0% — 0.0% (1.2) 0.0%
Subtotal unallocated corporate and other costs,
net (119.3) -7.2% (165.3) -10.6% (72.0) -21.9% (93.3) -7.7% (143.3) -9.6%
Total operating income (loss) 169.8 10.3% 88.1 5.7% (19.0) -5.8% 107.1 8.8% 99.2 6.7%
Interest expense, net 83.0 118.5 43.0 75.5 39.6
Income (loss) before income taxes 86.8 (30.4) (62.0) 31.6 59.6
Income tax expense (benefit) 32.0 1.9 (10.7) 12.6 22.2
Net income (loss) $ 54.8 $ (32.3) $ (51.3) $ 19.0 $ 37.4
Note: The numbers in the above table have been rounded to millions. All calculations related to the Results of Operations for the year-over-
year comparisons below were derived from unrounded data and could occasionally differ immaterially if you were to use the table above for
these calculations. 43