Nbty Inc. has a market cap of $2.66 billion; its shares were traded at around $43.07 with a P/E ratio of 12.8 and P/S ratio of 1. Nbty Inc. had an annual average earning growth of 16.4% over the past 10 years. GuruFocus rated Nbty Inc. the business predictability rank of 4-star.NTY is in the portfolios of Chuck Royce of ROYCE & ASSOCIATES, Arnold Van Den Berg of Century Management, Jeremy Grantham of GMO LLC.
Highlight of Business Operations:The U.S. dollar volume of net sales denominated in foreign currencies was approximately $224,406, or 29.9% of total net sales, for the three months ended December 31, 2009. A majority of our foreign currency exposure is denominated in the British pound sterling and Canadian dollars. For the three months ended December 31, 2009, as compared to the prior comparable period, the change in currency rates between the British pound sterling and Canadian dollar as compared to the U.S. dollar was 4% and 14%, respectively, resulting in an increase of $10,766 and $1,377 in net sales and operating income, respectively. The related impact on net income was an increase of approximately $0.02 per diluted share for the three months ended December 31, 2009.
To manage the potential risk arising from changing interest rates and their impact on long-term debt, our policy is to maintain a combination of available fixed and variable rate financial instruments. We are exposed to changes in interest rates on our floating rate revolving credit facility, our multicurrency term facility, and our $300,000 Term Loan. With respect to the interest on the Term Loan, in August 2008, we entered into two interest rate swap contracts, each with a notional amount of $100 million. Under the terms of the swap contracts, variable interest payments will be swapped for fixed interest payments. The interest rate exposure on the multicurrency term facility is mitigated by the interest earned on the cash collateral securing the loan. Therefore, a hypothetical 10% change in interest rates would not have a material effect on our consolidated pretax income or cash flow. During the quarter ended and at December 31, 2009, there were no borrowings outstanding under our revolving credit facility.
The 71/8% Senior Subordinated Notes had a fair value at December 31, 2009, based on then quoted market prices, of $190,475. At December 31, 2009, based solely on a hypothetical 10% change in interest rates related to our fixed rate Notes, we estimate that the hypothetical fair value of our fixed rate debt would have changed approximately $5,000. We believe that the carrying value of all our other financial instruments approximates fair value due to their short maturities and variable interest rates.
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