Nutrastar Announces First Quarter 2013 Results, Maintains Full Year Revenue Guidance Range of $44 million to $46 Million PR Newswire HARBIN, China, May 14, 2013 HARBIN, China, May 14, 2013 /PRNewswire-FirstCall/ -- Nutrastar International Inc. (OTCQB: NUIN; "Nutrastar" or the "Company"), a leading producer and supplier of premium branded consumer products, including commercially cultivated Cordyceps Militaris ("Cordyceps"), functional health beverages and organic and specialty foods, today announced its financial results for the quarter ended March 31, 2013. Financial Highlights oNet revenue increased 8.0% to $7.41 million, as compared to $6.86 million in the quarter ended March 31, 2012. oGross profit increased 11.0% to $5.64 million, up from $5.08 million in the comparable 2012 quarter, representing a gross margin of 76.1%. oNet income was $3.41 million, as compared to $2.95 million in Q1 2012. oBasic and diluted EPS were $0.21 and $0.20, respectively, with 15.86 million basic shares and 16.99 million diluted shares outstanding. Management Commentary "Nutrastar's first quarter 2013 was marked by continued sales growth, increased profitability and a growing balance sheet. Commercially cultivated Cordyceps, our core consumer product business, saw a year-over-year sales increase of 11.4%. Our functional health beverages and organic specialty products businesses experienced a sales decrease of 7.9% and 1.1% in the quarter, respectively, due to the timing of the reorder cycle from the beverage distributors. As a percentage of revenue, gross profit increased by 2% year-over-year, reaching 76.1%. As expected, we saw a slight improvement in our cost of goods sold on a percentage basis resulting from our increased production capacity and utilization. Our cash balance at the end of the quarter remained at a strong $77.9 million or approximately $4.59 per diluted share, as seen and verified at the bank by our independent auditor," stated, Ms. Lianyun Han, CEO of Nutrastar. Ms. Han continued, "Looking into Q2 and the remainder of 2013, we are confident in our ability to maintain our upward momentum and capitalize on rising demand stemming from China's young, increasing affluent and aging populations. Strategic advertising and marketing initiatives will remain steadfast and continue to be aimed at these consumer populations and others. We will continue to seek out and identify new and attractive markets within China for our premium consumer products as well as consider complementary acquisitions that are accretive to the company and our shareholders." Outlook for the Year Ending December 31, 2013 Based on management's current expectations, the Company maintains its expectation that 2013 revenue will be in the range of $44 million to $46 million, representing an approximate 19% to 25% top line increase year-over-year. Request for Call with Management Investors are invited to request a call with Nutrastar's management team. For those investors who are interested in speaking with management, please contact American Capital Ventures at +1-305-918-7000 to schedule. For more information regarding Nutrastar's financial performance during the quarter ended March 31, 2013, please refer to the Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on or about May 14, 2013. Management is available to discuss the financial results with investors should they have any questions. To arrange a call with the management team, please contact Investor Relations at 305-918-7000. About Nutrastar International Inc. Nutrastar is a China based leading producer and supplier of premium branded consumer products including commercially cultivated Cordyceps Militaris, functional health beverages as well as specialty and organic foods. Cordyceps Militaris is one of the most highly regarded herbal nutrients in Traditional Chinese Medicine. The Company is headquartered in Harbin, capital of Heilongjiang Province, with 330 employees, including 21 in R&D, and 149 in sales and marketing. The products of Nutrastar are sold throughout China via a sales and distribution network that covers more than 10 provinces. More information may be found at http://www.nutrastarintl.com/ or e-mail: firstname.lastname@example.org Make sure you are first to receive timely up-to-date information on Nutrastar. Sign up for Nutrastar's email news alert system today at: http://www.nutrastarintl.com/alerts Safe Harbor Statement This news release contains "forward-looking statements" relating to the business of Nutrastar International Inc., its subsidiaries and other affiliate companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, the Company does not assume a duty to update any forward-looking statements to reflect events or circumstances after the date hereof. For more information, please contact: Howard Gostfrand American Capital Ventures Tel: +1-305-918-7000 Email: email@example.com NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) (AMOUNTS EXPRESSED IN US DOLLARS) For the Three Months Ended March 31, 2013 2012 REVENUE $ 7,411,136 $ 6,861,018 Cost of goods sold (1,772,288) (1,778,568) GROSS PROFIT 5,638,848 5,082,450 Selling expenses (430,463) (382,358) General and administrative expenses (592,515) (664,705) Income from operations 4,615,870 4,035,387 Other income (expenses): Interest income 83,741 67,218 Foreign exchange differences (5,187) 2,404 Change in fair value of warrants - (4,029) Total other income (expenses) 78,554 65,593 Income before income taxes 4,694,424 4,100,980 Provision for income taxes (1,279,740) (1,151,402) NET INCOME 3,414,684 2,949,578 OTHER COMPREHENSIVE INCOME: Foreign currency translation adjustments 239,747 79,753 COMPREHENSIVE INCOME $ 3,654,431 $ 3 ,029,331 Earnings per share Basic $ 0.21 $ 0.19 Diluted $ 0.20 $ 0.18 Weighted average number of shares outstanding Basic 15,863,826 15,361,458 Diluted 16,995,928 16,512,858 See accompanying notes to consolidated financial statements NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (AMOUNTS EXPRESSED IN US DOLLARS) March 31, December 31, 2013 2012 (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalents $ 77,942,113 $ 75,526,533 Accounts receivable 82,299 81,497 Inventories 1,723,342 965,251 Prepayments and other receivables 879,310 1,321,726 Total current assets 80,627,064 77,895,007 OTHER ASSETS Intangible assets, net 1,436,433 1,552,022 Property, plant and equipment, net 15,789,127 15,991,060 Total assets $ 97,852,624 $ 95,438,089 LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Other payables and accruals $ 1,625,902 $ 1,481,198 Taxes payable 1,534,366 2,981,136 Due to a related party 158,200 150,036 Preferred stock dividend payable 583,920 528,528 Warrants liabilities 173 173 Total current liabilities 3,902,561 5,141,071 Total liabilities 3,902,561 5,141,071 COMMITMENTS AND CONTINGENCIES (Note 17) STOCKHOLDERS' EQUITY Preferred Stock, $0.001 par value, 1,000,000 shares authorized, 113,010 shares issued and outstanding; aggregate liquidation preference amount: 2,577,324 2,577,324 $3,164,280 and $3,164,280, plus accrued but unpaid dividend of $583,920 and $528,528, at March 31, 2013 and December 31, 2012, respectively Common stock, $0.001 par value, 190,000,000 shares authorized, 15,907,381 shares issued and 15,863,826 shares 15,908 15,908 outstanding at March 31, 2013 and December 31, 2012 Additional paid-in capital 19,083,592 19,029,586 Statutory reserves 5,327,241 4,960,023 Treasury stock, at cost, 43,555 shares (78,767) (78,767) as of March 31, 2013 and December 31, 2012 Retained earnings 61,318,006 58,325,932 Accumulated other comprehensive income 5,706,759 5,467,012 Total stockholders' equity 93,950,063 90,297,018 Total liabilities and stockholders' equity $ 97,852,624 $ 95,438,089 See accompanying notes to consolidated financial statements NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (AMOUNTS EXPRESSED IN US DOLLARS) For the Three Months Ended March 31, 2013 2012 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 3,414,684 $ 2,949,578 Adjustments to reconcile net income to cash provided by operating activities: Change in fair value of warrants - 4,029 Depreciation and amortization 362,996 309,252 Loss on disposal of property and equipment Share-based compensation expense 54,006 101,483 (Increase) decrease in assets: Accounts receivable (584) (7,911) Inventories (754,380) (430,950) Prepayments and other receivables 445,232 516,790 Increase (decrease) in liabilities: Accounts payable - (6,332) Other payables and accruals 83,749 48,578 Taxes payable (1,452,440) (1,092,388) Net cash provided by operating activities 2,153,263 2,392,129 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment - (15,927) Net cash used in investing activities - (15,927) CASH FLOWS FROM FINANCING ACTIVITIES: Decrease in restricted cash - 4,170 Net cash (used in) provided by financing - 4,170 activities Foreign currency translation adjustment 262,317 59,349 INCREASE IN CASH AND CASH EQUIVALENTS 2,415,580 2,439,721 CASH AND CASH EQUIVALENTS, at the beginning of 75,526,533 54,556,329 the period CASH AND CASH EQUIVALENTS, at the end of the $ 77,942,113 $ 56, 996,050 period NON-CASH TRANSACTIONS Preferred stock and dividend converted into $ - $ 978,282 common stock Preferred stock dividend payable 55,392 65,144 Share-based payment to officers and directors 54,006 101,483 under equity incentive plan SUPPLEMENTAL DISCLOSURE INFORMATION Income taxes paid $ 2,168,693 $ 1,899,301 See accompanying notes to consolidated financial statements SOURCE Nutrastar International Inc. Website: http://www.nutrastarintl.com/ Website: http://www.nutrastarintl.com/alerts
Nutrastar Announces First Quarter 2013 Results, Maintains Full Year Revenue Guidance Range of $44 million to $46 Million
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