Nutraceutical Reports Fiscal 2013 Q2 Results

                 Nutraceutical Reports Fiscal 2013 Q2 Results

PR Newswire

PARK CITY, Utah, April 25, 2013

PARK CITY, Utah, April 25, 2013 /PRNewswire/ -- Nutraceutical International
Corporation (NASDAQ: NUTR) today reported results for the fiscal 2013 second
quarter ended March 31, 2013. Net sales for the fiscal 2013 second quarter
were $56.6 million compared to $53.9 million for the same quarter of fiscal
2012. For the second quarter of fiscal 2013, net income was $5.5 million, or
$0.57 diluted earnings per share, compared to net income of $4.8 million, or
$0.49 diluted earnings per share, for the same quarter of fiscal 2012.

Net sales for the six months ended March 31, 2013 were $106.3 million compared
to $100.5 million for the same period of fiscal 2012. For the six months
ended March 31, 2013, net income was $9.0 million, or $0.92 diluted earnings
per share, compared to net income of $8.2 million, or $0.82 diluted earnings
per share, for the same period of fiscal 2012.

Operating cash flow for the six months ended March 31, 2013 was $15.1 million
compared to $17.3 million for the same period of fiscal 2012. The operating
cash flow for the six months ended March 31, 2013, combined with net
borrowings of $1.0 million, was primarily used to pay a special cash dividend
to stockholders on December 28, 2012 totaling $9.8 million and to invest $3.9
million in purchases of property, plant and equipment and $2.2 million in
purchases of common stock for treasury.

Bill Gay, chairman and chief executive officer, commented, "Our fiscal 2013
second quarter net sales growth of $2.7 million, or 5%, came from branded
domestic and international sales as well as fiscal 2012 acquisitions. The
second fiscal quarter is historically our strongest quarter although January
and February were stronger comparatively than March. We continue to be
optimistic about our larger health and natural food store customers and the
industry in general. Net income and EBITDA expanded as a number of internal
management initiatives took effect. Our management team continues to focus on
implementation of efficiency controls in all areas of manufacturing and
particularly in raw material sourcing. Continued operational enhancements to
our business are dependent upon making numerous and ongoing incremental
improvements, generally over six to twelve month time frames, which help
offset cost increases from less controllable expenses arising from government
regulations, energy, legal, taxes and labor."

Mr. Gay stated, "Over the coming months, we will continue to pursue our
long-term strategy of doing small to medium accretive acquisitions to sustain
growth in a mature but healthy market. Our most recent efforts have been
focused on consolidating, integrating and rationalizing the businesses we have
acquired over the last several years. Despite the overall weak economic
market, we have managed to effectively maintain or increase our product
presence. New product development and existing product repositioning is
ongoing and critical. We have a strong sales and marketing organization. We
continue to improve long-term shareholder value by repurchasing stock in the
open market at current multiples. We are appreciative to all of the
stakeholders who continue to support our great business."

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)
                                        March 31,       September 30,
                                        2013              2012
Assets
 Current assets, net                $     66,576  $     68,268
 Property, plant and equipment, net 75,646            75,454
 Goodwill                           14,752            14,752
 Other non-current assets, net      25,632            27,444
                                        $    182,606   $    185,918
Liabilities and Stockholders' Equity
 Current liabilities                $     18,948  $     20,670
 Long-term liabilities              35,163            34,192
 Stockholders' equity             128,495           131,056
                                        $    182,606   $    185,918



NUTRACEUTICAL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; dollars in thousands, except per share data)
                            Three months ended March  Six months ended March
                            31,                       31,
                            2013         2012         2013         2012
Net sales                   $        $        $         $   
                            56,583       53,871       106,327      100,499
Cost of sales               28,433       26,883       54,036       50,253
     Gross profit           28,150       26,988       52,291       50,246
Operating expenses
     Selling, general and   18,664       18,656       36,428       35,796
     administrative
     Amortization of        573          471          1,145        945
     intangible assets
Income from operations      8,913        7,861        14,718       13,505
Interest and other expense, 377          377          688          736
net
Income before provision for 8,536        7,484        14,030       12,769
income taxes
Provision for income taxes  3,000        2,654        5,000        4,528
Net income                  $       $       $       $     
                            5,536        4,830        9,030        8,241
Net income per common share
     Basic                  $       $       $       $     
                             0.57        0.49        0.92        0.82
     Diluted                0.57         0.49         0.92         0.82
Weighted average common
shares outstanding
     Basic                  9,741,866    9,938,593    9,766,843    9,992,200
     Diluted                9,772,537    9,947,012    9,795,754    10,003,851



NUTRACEUTICAL INTERNATIONAL CORPORATION
EBITDA SCHEDULE
(unaudited; dollars in thousands)
                            Three months ended March  Six months ended March
                            31,                       31,
                            2013           2012       2013         2012
Net income                  $         $      $       $     
                            5,536           4,830    9,030        8,241
Provision for income taxes  3,000          2,654      5,000        4,528
Interest and other expense, 377            377        688          736
net (1)
Depreciation and            2,437          2,123      4,839        4,208
amortization
EBITDA                      $          $      $        $    
                            11,350          9,984    19,557       17,713

(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, (435)
655-6106