Nutraceutical Reports Fiscal 2013 Q1 Results

                 Nutraceutical Reports Fiscal 2013 Q1 Results

PR Newswire

PARK CITY, Utah, Jan. 31, 2013

PARK CITY, Utah, Jan. 31, 2013 /PRNewswire/ -- Nutraceutical International
Corporation (NASDAQ: NUTR) today reported results for the fiscal 2013 first
quarter ended December 31, 2012. Net sales for the fiscal 2013 first quarter
were $49.7 million compared to $46.6 million for the same quarter of fiscal
2012. For the first quarter of fiscal 2013, net income was $3.5 million, or
$0.36 diluted earnings per share, compared to net income of $3.4 million, or
$0.34 diluted earnings per share, for the same quarter of fiscal 2012.

Operating cash flow for the fiscal 2013 first quarter was $6.8 million
compared to $7.6 million for the same period of fiscal 2012. The fiscal 2013
first quarter operating cash flow, combined with net borrowings of $6.0
million, was primarily used to pay a special cash dividend to stockholders on
December 28, 2012 totaling $9.8 million and to invest $2.2 million in
purchases of property, plant and equipment and $1.2 million in purchases of
common stock for treasury. 

Bill Gay, chairman and chief executive officer, commented, "Our fiscal 2013
first quarter net sales growth of $3.1 million came principally from fiscal
2012 acquisitions and increased branded domestic sales. International branded
sales were flat overall; however, this appeared to be a positive sign
considering challenging world economic conditions. Management is encouraged by
the incremental sales growth we experienced in many of the health and natural
food stores we serve, particularly since it occurred during a historically
slow quarter. EBITDA continued to grow and net income improved despite an
increase in our effective tax rate. We expect that our ongoing efforts to
innovate, control material costs, reduce labor expenses and streamline our
manufacturing, marketing and sales infrastructure should provide improved
results throughout this calendar year."

Mr. Gay stated, "For the last twenty years, management has believed that an
undeviating focus on pursuing our established long-term business strategy is
the best way to create and sustain value for stockholders. First, we have
aimed to increase market share by building a superior marketing and sales
organization that takes measured risks and executes consistently. Second, our
goal is to increase market share by making strategic acquisitions that fulfill
customer needs and are synergistic to our current brands and product
offerings. Third, we strive to increase market share by expanding into
complimentary natural product channels and international markets. We have
pursued this strategy, with the support of our Board and stockholders, by
consistently focusing on achieving excellence during both strong and weak
economic cycles and by providing management with appropriate financial
incentives based on balanced net sales growth and EBITDA performance targets.
Additionally, we have enhanced stockholder returns by repurchasing stock in
the open market at reasonable multiples. Our Board, stockholders and
employees are very much appreciated and we look forward to another twenty
years."

ABOUT NUTRACEUTICAL
We are an integrated manufacturer, marketer, distributor and retailer of
branded nutritional supplements and other natural products sold primarily to
and through domestic health and natural food stores. Internationally, we
market and distribute branded nutritional supplements and other natural
products to and through health and natural product distributors and
retailers. Our core business strategy is to acquire, integrate and operate
businesses in the natural products industry that manufacture, market and
distribute branded nutritional supplements. We believe that the consolidation
and integration of these acquired businesses provides ongoing financial
synergies through increased scale and market penetration, as well as
strengthened customer relationships.

We manufacture and sell nutritional supplements and other natural products
under numerous brands including Solaray®, KAL®, Nature's Life®, LifeTime®,
Natural Balance®, bioAllers®, Herbs for Kids™, NaturalCare®, Health from the
Sun®, Life-flo®, Organix South®, Pioneer® and Monarch Nutraceuticals™.

We own neighborhood natural food markets, which operate under the trade names
The Real Food Company™, Thom's Natural Foods™ and Cornucopia Community
Market™. We also own health food stores, which operate under the trade names
Fresh Vitamins™, Granola's™, Nature's Discount™ and Warehouse Vitamins™.

We manufacture and/or distribute one of the broadest branded product lines in
the industry with over 7,000 SKUs, including approximately 900 SKUs sold
internationally. We believe that as a result of our emphasis on innovation,
quality, loyalty, education and customer service, our brands are widely
recognized in health and natural food stores and among their customers.

This Press Release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 with respect to our
financial condition, results of operations and business. These forward-looking
statements can be identified by the use of terms such as "believe," "expects,"
"plan," "intend," "may," "will," "should," "can," or "anticipates," or the
negative thereof, or variations thereon, or comparable terminology, or by
discussions of strategy. These statements involve known and unknown risks,
uncertainties and other factors that may cause industry trends or our actual
results to be materially different from any future results expressed or
implied by these statements. Important factors that may cause our results to
differ from these forward-looking statements include, but are not limited to:
(i) changes in or new government regulations or increased enforcement of the
same, (ii) unavailability of desirable acquisitions or inability to complete
them, (iii) increased costs, including from increased raw material or energy
prices, (iv) changes in general worldwide economic or political conditions,
(v) adverse publicity or negative consumer perception regarding nutritional
supplements, (vi) issues with obtaining raw materials of adequate quality or
quantity, (vii) litigation and claims, including product liability,
intellectual property and other types, (viii) disruptions from or following
acquisitions including the loss of customers, (ix) increased competition, (x)
slow or negative growth in the nutritional supplement industry or the healthy
foods channel, (xi) the loss of key personnel or the inability to manage our
operations efficiently, (xii) problems with information management systems,
manufacturing efficiencies and operations, (xiii) insurance coverage issues,
(xiv) the volatility of the stock market generally and of our stock
specifically, (xv) increases in the cost of borrowings or unavailability of
additional debt or equity capital, or both, or fluctuations in foreign
currencies, and (xvi) interruption of business or negative impact on sales and
earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil
unrest and other factors outside of our control. Copies of our SEC reports
are available upon request from our investor relations department or may be
obtained at the SEC's website (www.sec.gov).

© 2013 Nutraceutical Corporation. All rights reserved.



NUTRACEUTICAL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited; dollars in thousands)
                                       December 31,      September 30,
                                       2012                2012
Assets
 Current assets, net               $      65,878  $      68,268
 Property, plant and equipment,    75,850              75,454
net
 Goodwill                          14,752              14,752
 Other non-current assets, net     26,581              27,444
                                       $     183,061   $     185,918
Liabilities and Stockholders' Equity
 Current liabilities               $      19,011  $      20,670
 Long-term liabilities             40,212              34,192
 Stockholders' equity            123,838             131,056
                                       $     183,061   $     185,918



NUTRACEUTICAL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; dollars in thousands, except per share data)
                                           Three months ended December 31,
                                           2012            2011
Net sales                                  $  49,744     $   46,628
Cost of sales                              25,603          23,370
    Gross profit                           24,141          23,258
Operating expenses
    Selling, general and administrative    17,764          17,140
    Amortization of intangible assets      572             474
Income from operations                     5,805           5,644
Interest and other expense, net            311             359
Income before provision for income taxes   5,494           5,285
Provision for income taxes                 2,000           1,874
Net income                                 $   3,494    $    3,411
Net income per common share
    Basic                                  $    0.36   $     0.34
    Diluted                                0.36            0.34
Weighted average common shares outstanding
    Basic                                  9,791,277       10,045,224
    Diluted                                9,818,427       10,060,107



NUTRACEUTICAL INTERNATIONAL CORPORATION
EBITDA SCHEDULE
(unaudited; dollars in thousands)
                                    Three months ended December 31,
                                    2012               2011
Net income                          $ 3,494            $ 3,411
Provision for income taxes          2,000              1,874
Interest and other expense, net (1) 311                359
Depreciation and amortization      2,402              2,085
EBITDA                              $ 8,207            $ 7,729



(1) Includes amortization of deferred financing fees.



Non-GAAP Financial Measures
 EBITDA (a non-GAAP measure) is defined in our debt covenants and
performance measures as earnings before net interest and other expense, taxes,
depreciation and amortization. We believe that EBITDA provides useful
additional information to analysts, creditors, investment bankers and
management regarding operating performance and debt covenant compliance.
EBITDA has some inherent limitations in measuring operating performance due to
the exclusion of certain financial elements such as depreciation and
amortization and is not necessarily comparable to other similarly-titled
captions of other companies due to potential inconsistencies in the method of
calculation. Furthermore, EBITDA is not intended to be an alternative to net
income in determining our operating performance in accordance with generally
accepted accounting principles.



SOURCE Nutraceutical International Corporation

Contact: Cory McQueen, Vice President and Chief Financial Officer,
+1-435-655-6106
 
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