GNC reports increase in Q2 net income, EBITDA

PITTSBURGH General Nutrition Centers reported a 42.5% increase in net income for its second quarter ended June 30.

GNC said Tuesday that its net income totaled $25.6 million, compared with $18 million in the year-ago period. Adjusted EBITDA for second quarter 2010 was $68.6 million, an 18.1% increase over the adjusted EBITDA of $58.1 million for second quarter 2009.

In the second quarter, the company opened 13 net new domestic cmpany-owned stores, 1 net new company-owned store in Canada, 43 net new international franchise locations, and 49 net new franchise store-within-a-store Rite Aid locations, and closed nine net domestic franchise locations. As of June 30, GNC operated more than 7,100 locations, of which more than 5,500 retail locations are in the United States (including 892 franchise and 1,972 Rite Aid franchise store-within-a-store locations), and franchise operations in 50 countries.

GNC CEO Joe Fortunato said, "Our second-quarter results demonstrate the continued momentum of the business and our ability to consistently grow revenue and adjusted EBITDA. Beyond the core business, I am also pleased with our ongoing corporate partnership initiatives, such as our previously announced venture with Pepsi and our most recent project with PetSmart. As a leader in the health-and-wellness industry focused on science and innovation, GNC is well positioned to continue to build on the valued brand that gives us an edge in the marketplace and allows us to continue to enhance financial leverage."