Nutrastar Announces First Quarter 2013 Results, Maintains Full Year Revenue Guidance Range of $44 million to $46 Million

 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:
ir@nutrastarintl.com

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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: info@amcapventures.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
 
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