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Hain Celestial gets 2 more weeks to disclose its much delayed financials

  • The company received another credit facility waiver and extension.
  • A revenue-recognition issue led to a lengthy accounting probe.
  • Hain hasn't reported quarterly financial results in more than a year.
A Celestial Seasonings tasting room.
Wikipedia
A Celestial Seasonings tasting room.

Hain Celestial Group doesn't expect to file its outstanding financial results until mid-June, representing another delay amid its internal accounting probe.

The Lake Success, New York-based company hasn't reported financial results in more than a year due to the audit review disclosed last summer into the timing of revenue associated with distributor concessions.

Hain said just three weeks ago in a filing "it will be a position to file" outstanding results "by the end of May 2017." However, in a release Tuesday, Hain said it received a waiver and extension under its unsecured credit facility from a bank group led by Bank of America Merrill Lynch and Wells Fargo until June 15.

"Latest delay is concerning but in the whole scheme of things, not the end of the world," Jefferies analyst Akshay Jagdale said in a research note Wednesday. "It's hard to fathom why a seemingly simple revenue recognition issue takes one year to resolve."

Hain's major brands include Terra Chips, Garden of Eatin' and Celestial Seasonings, as well as personal care products from Alba, Jason and Live Clean.

"We appreciate their continued support and confidence," Hain founder and CEO Irwin Simon said of the lenders' granting a waiver and extension. "We remain well positioned to support our strategic operational growth objectives with our solid financial position."

As of March 31, Hain said there was $780 million in borrowings under the credit facility, and the company had $163 million in cash.

In August 2016, Hain stunned investors with the announcement it had potential accounting concerns. The company also disclosed at that time it had delayed the release of its fiscal 2016 financial results and missed guidance.

The last time Hain reported financial results was May 4, 2016, when it announced results for its fiscal third quarter ended March 31, 2016. The company earlier missed several deadlines on reporting its financials and also received delisting notices from the Nasdaq Stock Market.

According to Hain, the extension will allow the company time "to be compliant with its credit facility reporting obligations while it works to complete" filing financial results for fiscal 2016 and other outstanding reports, including its Q1, Q2 and Q3 results for fiscal 2017.

"This waiver and extension of the credit facility is consistent with the extension granted by the Nasdaq Hearings Panel to the company to file its periodic reports with the Securities and Exchange Commission and regain Nasdaq listing compliance by June 15, 2017," Hain said. "The company intends to be in a position to file all the outstanding reports during this period."

CNBC reached out to Hain for further comment. Nasdaq declined comment.

Hain shares inched down less than 1 percent Wednesday. Over the past year, the stock has fallen more than 29 percent and is down nearly 11 percent in the year-to-date period.