Nutraceutical Reports Fiscal 2014 Q1 Results

                 Nutraceutical Reports Fiscal 2014 Q1 Results

PR Newswire

PARK CITY, Utah, Jan. 30, 2014

PARK CITY, Utah, Jan. 30, 2014 /PRNewswire/ -- Nutraceutical International
Corporation (NASDAQ: NUTR) today reported results for the fiscal 2014 first
quarter ended December 31, 2013. Net sales for the fiscal 2014 first quarter
were $51.6 million compared to $49.7 million for the same quarter of fiscal
2013. For the first quarter of fiscal 2014, net income was $4.1 million, or
$0.42 diluted earnings per share, compared to net income of $3.5 million, or
$0.36 diluted earnings per share, for the same quarter of fiscal 2013.

Operating cash flow for the fiscal 2014 first quarter was $5.5 million
compared to $6.8 million for the same period of fiscal 2013. The fiscal 2014
first quarter operating cash flow, combined with net borrowings of $2.0
million and existing cash, was primarily used to invest $6.2 million in
acquisitions of natural product businesses, $3.1 million in purchases of
property, plant and equipment and $0.5 million in purchases of common stock
for treasury.

Bill Gay, chairman and chief executive officer, commented, "Our fiscal 2014
first quarter results were a reflection of core strength in our branded
business. We believe these results correspond to a long-term macro trend of
individuals seeking healthier and more active lifestyles as they age.
Positive growth in quarterly net sales, net income and Adjusted EBITDA
continued. Management is focused on niche acquisitions that round out the
branded product offering available to our health and natural food store
customers. Three small acquisitions were completed during the fiscal first
quarter. Enhancing in-store service and educational relationships with retail
stores that we serve remain the primary objective in 2014 for our marketing
and sales organizations. This is critical as we expand our branded portfolio
of supplement, beauty and nutritional products."

Mr. Gay stated, "Ongoing efforts to innovate operationally, control material
costs, reduce labor expenses and streamline our marketing and sales
infrastructure remain a key management focus this fiscal year. Our larger
corporate customers have continued to expand and consolidate their geographic
influence in many major US markets. Small to medium chains of health food
stores and natural food markets that aggressively market and promote are
experiencing revenue expansion, while some smaller retailers that fail to
implement these competitive tactics face an uphill battle. Management and our
employees would like to express appreciation to our customers and stockholders
for their ongoing support."

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

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, inability to complete
them or inability to integrate 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

© 2014 Nutraceutical Corporation. All rights reserved.

(unaudited; dollars in thousands)
                                        December 31,    September 30,
                                        2013              2013
 Current assets, net                $     75,633  $     75,048
 Property, plant and equipment, net 77,236            76,214
 Goodwill                           18,643            15,821
 Other non-current assets, net      26,716            25,227
                                        $    198,228   $    192,310
Liabilities and Stockholders' Equity
 Current liabilities                $     21,094  $     21,796
 Long-term liabilities              34,654            32,638
 Stockholders' equity             142,480           137,876
                                        $    198,228   $    192,310

(unaudited; dollars in thousands, except per share data)
                                        Three months ended December 31,
                                        2013                2012
Net sales                               $     51,550    $     49,744
Cost of sales                           25,488              25,603
      Gross profit                      26,062              24,141
Operating expenses
      Selling, general and              18,581              17,764
      Amortization of intangible assets 584                 572
Income from operations                  6,897               5,805
Interest and other expense, net         318                 311
Income before provision for income      6,579               5,494
Provision for income taxes              2,444               2,000
Net income                              $      4,135   $      3,494
Net income per common share
      Basic                             $       0.42  $       0.36
      Diluted                           0.42                0.36
Weighted average common shares
      Basic                             9,837,631           9,791,277
      Diluted                           9,847,659           9,818,427

(unaudited; dollars in thousands)
                                               Three months ended December 31,
                                               2013              2012
Net income                                     $            $     
                                               4,135             3,494
Provision for income taxes                     2,444             2,000
Interest and other expense, net (1)            318               311
Depreciation and amortization                 2,638             2,402
Adjusted EBITDA                                $            $     
                                               9,535             8,207
(1) Includes amortization of deferred
financing fees.

Non-GAAP Financial Measures
 Adjusted EBITDA (a non-GAAP measure) is defined in our performance
measures as earnings before net interest and other expense, taxes,
depreciation and amortization. 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

Contact: Cory McQueen, Vice President and Chief Financial Officer, (435)
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