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Nutraceutical Reports Fiscal 2013 Q3 Results



                 Nutraceutical Reports Fiscal 2013 Q3 Results

PR Newswire

PARK CITY, Utah, July 25, 2013

PARK CITY, Utah, July 25, 2013 /PRNewswire/ -- Nutraceutical International
Corporation (NASDAQ: NUTR) today reported results for the fiscal 2013 third
quarter ended June 30, 2013.  Net sales for the fiscal 2013 third quarter were
$50.8 million compared to $49.6 million for the same quarter of fiscal 2012. 
For the third quarter of fiscal 2013, net income was $3.8 million, or $0.39
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.  Net income
for the third quarter of fiscal 2012 included a non-cash intangible asset
impairment charge of $0.6 million, net of tax, or $0.06 per diluted share,
related to the consolidation of certain brands. 

Net sales for the nine months ended June 30, 2013 were $157.1 million compared
to $150.1 million for the same period of fiscal 2012.  For the nine months
ended June 30, 2013, net income was $12.9 million, or $1.31 diluted earnings
per share, compared to net income of $11.6 million, or $1.16 diluted earnings
per share (including the intangible asset impairment charge), for the same
period of fiscal 2012. 

Operating cash flow for the nine months ended June 30, 2013 was $19.2 million
compared to $23.4 million for the same period of fiscal 2012.  The operating
cash flow for the nine months ended June 30, 2013 was primarily used to pay a
special cash dividend to stockholders on December 28, 2012 of $9.8 million and
to invest $6.2 million in purchases of property, plant and equipment and $2.9
million in purchases of common stock for treasury.

Bill Gay, chairman and chief executive officer, commented, "Our fiscal 2013
third quarter net sales, net income and adjusted EBITDA remained strong. 
During the quarter, management initiated strategic improvements in our
manufacturing processes to lay the groundwork for long-term cost savings in
materials, labor and overhead.  These manufacturing changes should be fully
implemented by the end of our fiscal fourth quarter.  Management believes
these internal operational enhancements are important to implement at the
present time in order to achieve long-term cost savings.  Management's
objective is to offset other less controllable expenses, which continue to
rise, and to enhance inventory management and product fulfillment."

Mr. Gay stated, "Acquisitions of small to medium size companies remain a
primary focus for our continued growth and to provide our customers with the
best selection of unique products.  Our key retail customers have continued to
grow and consolidate the fragmented marketplace despite the overall sluggish
economy.  We continue to integrate and reposition our brands and products into
targeted collections to enhance their marketing position.  We believe that our
business should continue to prosper as a result of the ongoing support from
our customers, stockholders, management and employees."

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 various trade
names including 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)
                                         June 30,    September 30,
                                        2013        2012
Assets
     Current assets, net                $   70,492  $            68,268
     Property, plant and equipment, net 76,035      75,454
     Goodwill                           15,046      14,752
     Other non-current assets, net      25,367      27,444
                                        $ 186,940   $          185,918
Liabilities and Stockholders' Equity
     Current liabilities                $   20,635  $            20,670
     Long-term liabilities              32,617      34,192
     Stockholders' equity               133,688     131,056
                                        $ 186,940   $          185,918

NUTRACEUTICAL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; dollars in thousands, except per share data)
                           Three months ended June    Nine months ended June
                           30,                        30,
                           2013          2012         2013         2012
Net sales                  $    50,814   $    49,607  $  157,141   $  150,106
Cost of sales              25,935        24,878       79,971       75,131
     Gross profit          24,879        24,729       77,170       74,975
Operating expenses
     Selling, general and  17,896        17,987       54,324       53,783
     administrative
     Amortization of       556           493          1,701        1,438
     intangible assets
     Impairment of         -             850          -            850
     intangible asset
Income from operations     6,427         5,399        21,145       18,904
Interest and other         336           388          1,024        1,124
expense, net
Income before provision    6,091         5,011        20,121       17,780
for income taxes
Provision for income taxes 2,249         1,659        7,249        6,187
Net income                 $      3,842  $            $    12,872  $    11,593
                                          3,352
Net income per common
share
     Basic                 $             $            $            $      
                            0.39          0.34         1.32         1.17
     Diluted               0.39          0.34         1.31         1.16
Weighted average common
shares outstanding
     Basic                 9,765,639     9,849,674    9,766,442    9,944,865
     Diluted               9,793,045     9,872,078    9,794,851    9,960,100

NUTRACEUTICAL INTERNATIONAL CORPORATION
ADJUSTED EBITDA SCHEDULE
(unaudited; dollars in thousands)
                               Three months ended June  Nine months ended June
                               30,                      30,
                               2013          2012       2013         2012
Net income                     $ 3,842       $ 3,352    $ 12,872     $ 11,593
Provision for income taxes     2,249         1,659      7,249        6,187
Interest and other expense,    336           388        1,024        1,124
net (1)
Depreciation and amortization  2,486         2,203      7,325        6,411
Impairment of intangible asset -             850        -            850
(2)
Adjusted EBITDA                $ 8,913       $ 8,452    $ 28,470     $ 26,165

(1)   Includes amortization of deferred financing fees. 
      A non-cash intangible asset impairment charge of $850 related to the
(2)   consolidation of certain brands was recorded for the three months and
      nine months ended June 30, 2012.
Non-GAAP Financial Measures
     Adjusted EBITDA (a non-GAAP measure) is defined in our debt covenants and
performance measures as earnings before net interest and other expense, taxes,
depreciation, amortization and intangible asset impairment.  We believe that
Adjusted EBITDA provides useful additional information to analysts, creditors,
investment bankers and management regarding operating performance and debt
covenant compliance.  Adjusted 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, Adjusted
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

Website: http://www.nutraceutical.com
Contact: Cory McQueen, Vice President and Chief Financial Officer,
+1-435-655-6106
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