Nutraceutical Reports Fiscal 2013 Year End Results

              Nutraceutical Reports Fiscal 2013 Year End Results

PR Newswire

PARK CITY, Utah, Nov. 26, 2013

PARK CITY, Utah, Nov. 26, 2013 /PRNewswire/ -- Nutraceutical International
Corporation (NASDAQ: NUTR) today reported results for the fiscal 2013 fourth
quarter ended September 30, 2013. Net sales for the fiscal 2013 fourth
quarter were $51.3 million compared to $50.3 million for the same quarter of
fiscal 2012. For the fourth quarter of fiscal 2013, net income was $4.1
million, or $0.42 diluted earnings per share, compared to net income of $4.2
million, or $0.42 diluted earnings per share, for the same quarter of fiscal
2012. Net income for the fourth quarter of fiscal 2013 included non-cash
intangible asset impairment charges of $0.1 million, net of tax, or $0.01 per
diluted share, related to certain tradenames.

Net sales for the fiscal year ended September 30, 2013 were $208.4 million
compared to $200.4 million for the same period of fiscal 2012. For the fiscal
year ended September 30, 2013, net income was $17.0 million, or $1.73 diluted
earnings per share (including the intangible asset impairment charges),
compared to net income of $15.8 million, or $1.59 diluted earnings per share,
for the same period of fiscal 2012. Net income for the fiscal year ended
September 30, 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.

Operating cash flow for the fiscal year ended September 30, 2013 was $26.8
million compared to $27.2 million for the same period of fiscal 2012. The
operating cash flow for the fiscal year ended September 30, 2013 was primarily
used to pay a special cash dividend to stockholders on December 28, 2012 of
$9.8 million and to invest $8.3 million in purchases of property, plant and
equipment, $3.4 million in acquisitions of natural product businesses, $3.1
million in purchases of common stock for treasury and to repay net borrowings
of $1.5 million on the Company's revolving credit facility.

Bill Gay, chairman and chief executive officer, commented, "Fiscal 2013 marked
our 20 year anniversary as a leader in marketing, selling, developing,
manufacturing and distributing branded products to the Health and Natural
Foods Channel both domestically and internationally. Positive growth was
achieved in three key financial measurements during fiscal 2013--net sales,
net income and adjusted EBITDA. Management is as excited about future growth
opportunities today as we were when the business was founded 20 years ago.
The strategic nature, product offering and size of our business should allow
us to remain a strong and competitive force in our marketplace."

Mr. Gay stated, "In fiscal 2014, we will continue to focus on the acquisition
of companies with complementary offerings to supplement our extensive
portfolio of branded products. Our key corporate customers have continued to
expand their retail footprints throughout the US and we anticipate this will
continue for the foreseeable future. We continue integrating and
repositioning products into branded collections to simplify and improve the
consumer experience. Management wishes to express its appreciation to everyone
who contributed to building this wonderful business over the last 20 years and
looks forward to continued success during the next 20 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 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 approximately 7,500 SKUs, including approximately 1,000 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)
                                      September 30,      September 30,
                                      2013                 2012
Assets
 Current assets, net              $      75,048  $      68,268
 Property, plant and equipment,   76,214               75,454
net
 Goodwill                         15,821               14,752
 Other non-current assets, net    25,227               27,444
                                      $     192,310   $     185,918
Liabilities and Stockholders' Equity
 Current liabilities              $      21,796  $      20,670
 Long-term liabilities            32,638               34,192
 Stockholders' equity           137,876              131,056
                                      $     192,310   $     185,918



NUTRACEUTICAL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; dollars in thousands, except per share data)
                            Three months ended        Twelve months ended
                            September 30,             September 30,
                            2013         2012         2013         2012
Net sales                   $       $       $        $    
                            51,256      50,261      208,397     200,367
Cost of sales               25,547       25,282       105,518      100,413
     Gross profit           25,709       24,979       102,879      99,954
Operating expenses
     Selling, general and   18,089       17,642       72,413       71,425
     administrative
     Amortization of        508          569          2,209        2,007
     intangible assets
     Impairment of          124          -            124          850
     intangible assets
Income from operations      6,988        6,768        28,133       25,672
Interest and other expense, 336          373          1,360        1,497
net
Income before provision for 6,652        6,395        26,773       24,175
income taxes
Provision for income taxes  2,516        2,221        9,765        8,408
Net income                  $       $       $       $     
                             4,136      4,174     17,008      15,767
Net income per common share
     Basic                  $       $       $       $     
                              0.42      0.42      1.74      1.59
     Diluted                0.42         0.42         1.73         1.59
Weighted average common
shares outstanding
     Basic                  9,833,325    9,832,432    9,783,300    9,916,603
     Diluted                9,846,329    9,856,305    9,807,858    9,933,997



NUTRACEUTICAL INTERNATIONAL CORPORATION
ADJUSTED EBITDA SCHEDULE
(unaudited; dollars in thousands)
                                Three months ended        Twelve months ended
                                September 30,             September 30,
                                2013         2012         2013       2012
Net income                      $       $       $      $    
                                4,136        4,174        17,008     15,767
Provision for income taxes      2,516        2,221        9,765      8,408
Interest and other expense, net 336          373          1,360      1,497
(1)
Depreciation and amortization  2,466        2,366        9,791      8,777
Impairment of intangible assets 124          -            124        850
(2)
Adjusted EBITDA                 $       $       $      $    
                                9,578        9,134        38,048     35,299



(1)          Includes amortization of deferred financing fees.
             Non-cash intangible asset impairment charges of $124 related to
(2)          certain tradenames were recorded for the three months and twelve
             months ended September 30, 2013.
             A non-cash intangible asset impairment charge of $850 related to
             the consolidation of certain brands was recorded for the twelve
             months ended September 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 impairments. 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: hhtp://www.nutraceutical.com
Contact: Cory McQueen, Vice President and Chief Financial Officer, (435)
655-6106
 
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