Sales at the company's North American retail stores, including its Vitamin World stores, jumped 29 percent to $22 million from $17 million the year before. Sales at the company's Direct Response and Puritan's Pride division rose 21 percent to $23 million from $19 million.
On January 27, 2006, NBTY also reported better-than expected 1Q:06 share-net earnings.
Responding to “proof of life”—shares of NBTY have soared almost 39 percent year-to-date, as investors anticipate an increase in consumer demand for the vitamins of this vendor.
Given the aforementioned good news, the timing of the February 15, 2006, SEC 8-K filing by NTBY, Inc, could not have been more propitious. Scott Rudolph, Chairman and CEO, and Harvey Kamil, President and CFO, were awarded 2005 cash bonuses of $500,000 and $350,000, respectively.For 2005, the salaries of Messrs. Rudolph and Kamil were $813,472 and $455,545, respectively.
- Sales: A
- Operating Efficiencies: C
- Profitability: B-
NBTY’s price-earnings multiple (21x), Enterprise Value-to-EBITDA ratio (8.91), and Enterprise Value-to-Revenue multiple (1.0x)—these valuations are in-line with peer comparables like USANA Health Sciences (USNA) and Nature’s Sunshine Products (NTRE). In other words, NBTY’s current share price already discounts any fundamental improvements. If you bought at the most recent lows—take your profit. If you bought last year, prior to earnings’ missteps—be thankful for the rebound—and sell, too!