GNC 2010 Annual Report Download - page 46

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Table of Contents
Successor Predecessor
Year Ended Year Ended March 16- January 1- Year Ended Year Ended
December 31, December 31, December 31, March 15, December 31, December 31,
(dollars in millions) 2009 2008 2007 2007 2006 2005
Statement of Operations Data:
Revenue:
Retail $ 1,256.3 $ 1,219.3 $ 909.3 $ 259.3 $ 1,122.7 $ 989.4
Franchising 264.2 258.0 193.9 47.2 232.3 212.8
Manufacturing/Wholesale 186.5 179.4 119.8 23.3 132.1 115.5
Total revenue 1,707.0 1,656.7 1,223.0 329.8 1,487.1 1,317.7
Cost of sales, including costs of warehousing, distribution and
occupancy 1,116.4 1,082.6 814.2 212.2 983.5 898.7
Gross profit 590.6 574.1 408.8 117.6 503.6 419.0
Compensation and related benefits 263.0 249.8 195.8 64.3 260.8 228.6
Advertising and promotion 50.0 55.1 35.0 20.5 50.7 44.7
Other selling, general and administrative 96.5 98.7 71.3 17.3 92.4 76.2
Other expense(income)(1) (0.1) 0.7 (0.4) (0.1) 0.5 (3.1)
Merger related costs — — — 34.6 — —
Operating income (loss) 181.2 169.8 107.1 (19.0) 99.2 72.6
Interest expense, net 70.0 83.0 75.5 43.0 39.6 43.1
Income (loss) before income taxes 111.2 86.8 31.6 (62.0) 59.6 29.5
Income tax expense (benefit) 41.6 32.0 12.6 (10.7) 22.2 10.9
Net income (loss) $ 69.6 $ 54.8 $ 19.0 $ (51.3) $ 37.4 $ 18.6
(1) Other expense (income) includes foreign currency (gain) loss for all of the periods presented. Other expense (income) for the year ended
December 31, 2006 included $1.2 million loss on the sale of our Australian manufacturing facility. Other expense (income) for the year
ended December 31, 2005 included $2.5 million transaction fee income related to the transfer of our GNC Australian franchise rights to an
existing franchisee. 40