2014

Nutraceutical Reports Fiscal 2012 Q2 Results and Expands Share Repurchase Program

PARK CITY, Utah, April 26, 2012 /PRNewswire/ -- Nutraceutical International Corporation (Nasdaq:  NUTR) today reported results for the fiscal 2012 second quarter ended March 31, 2012.  Net sales for the fiscal 2012 second quarter were $53.9 million compared to $49.5 million for the same quarter of fiscal 2011.  For the second quarter of fiscal 2012, net income was $4.8 million, or $0.49 diluted earnings per share, compared to net income of $4.6 million, or $0.44 diluted earnings per share, for the same quarter of fiscal 2011.

Net sales for the six months ended March 31, 2012 were $100.5 million compared to $94.8 million for the same period in fiscal 2011.  For the six months ended March 31, 2012, net income was $8.2 million, or $0.82 per diluted share, compared to net income of $8.5 million, or $0.81 per diluted share, for the same period of fiscal 2011.  

Operating cash flow for the six months ended March 31, 2012 was $17.3 million compared to $15.7 million for the same period of fiscal 2011.  This operating cash flow was primarily used to invest $6.5 million in acquisitions of natural product businesses, $4.7 million in purchases of property and equipment and $3.8 million in repurchases of common stock. 

Bill Gay, chairman and chief executive officer, commented, "Our Fiscal 2012 second quarter net sales growth of 8.7% was generated domestically, internationally and from acquisitions made over the last year.  Net income primarily increased as a result of the quarterly net sales growth and we expect net income to remain strong in the near future, although its continued expansion will be limited by manufacturing overhead costs associated with the integration of our new manufacturing facilities, freight increases and payroll.  Over the coming year, we will continue to focus on improving the efficiency and utilization of all of our manufacturing facilities. Cash flow and EBITDA are strong and investments will continue to be made in manufacturing equipment and technology."

Mr. Gay stated, "Recently, the Health and Natural Food Store market seems to have been stronger than the overall economy and we hope this strength continues into the future. We have ongoing concerns about the increasing complexity and expansion of state, federal and international laws and regulations.  The identification and acquisition of unique branded product companies remains a key focus and the success of this effort is fundamental to our long-term growth and is basic to our business strategy.  We appreciate the continuing support of our employees and shareholders in building our business."

Mr. Gay continued, "I am also pleased to announce that on April 23, 2012, our Board of Directors agreed to add an additional one million shares to our previously approved share purchase program which means the Company is now authorized to buy up to approximately 1.2 million total additional shares of our outstanding common stock."  Under this approved share purchase program, the Company may purchase common stock from time to time on the open market and in individually negotiated transactions.  The amount and timing of any purchases will be dependent upon a number of factors, including the price and availability of the Company's shares and general market conditions.  The Company currently has approximately 9.9 million shares of its common stock outstanding.  From October 1, 2003 through March 31, 2012, the Company purchased 2.6 million shares of its common stock at an average price of $13.21 per share for an aggregate purchase price of $34.4 million.

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 the trade names 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 6,000 SKUs, including approximately 700 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).

© 2012 Nutraceutical Corporation.  All rights reserved.







NUTRACEUTICAL INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited; dollars in thousands)
















 March 31, 


 September 30, 




2012


2011

Assets






     Current assets, net



$     64,821


$            62,069

     Property, plant and equipment, net



73,705


72,094

     Goodwill



12,110


8,853

     Other non-current assets, net



27,364


28,649




$   178,000


$          171,665







Liabilities and Stockholders' Equity






     Current liabilities



$     20,908


$            19,737

     Long-term liabilities



32,355


32,253

     Stockholders' equity  



124,737


119,675




$   178,000


$          171,665







  












NUTRACEUTICAL INTERNATIONAL CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited; dollars in thousands, except per share data)


























Three months ended March 31,


Six months ended March 31,





2012


2011


2012


2011


Net sales

$    53,871


$      49,549


$    100,499


$      94,792


Cost of sales

26,883


24,135


50,253


45,916




Gross profit

26,988


25,414


50,246


48,876


Operating expenses











Selling, general and administrative

18,656


17,512


35,796


34,247




Amortization of intangible assets

471


404


945


794


Income from operations

7,861


7,498


13,505


13,835


Interest and other expense, net

377


338


736


509


Income before provision for income taxes

7,484


7,160


12,769


13,326


Provision for income taxes

2,654


2,608


4,528


4,827













Net income

$      4,830


$        4,552


$        8,241


$        8,499
























Net income per common share











Basic

$        0.49


$          0.44


$          0.82


$          0.82




Diluted

0.49


0.44


0.82


0.81













Weighted average common shares outstanding











Basic

9,938,593


10,371,037


9,992,200


10,374,816




Diluted

9,947,012


10,425,564


10,003,851


10,443,867













  









NUTRACEUTICAL INTERNATIONAL CORPORATION

EBITDA SCHEDULE

(unaudited; dollars in thousands)


















Three months ended March 31,


Six months ended March 31,


2012


2011


2012


2011









Net income

$ 4,830


$ 4,552


$   8,241


$   8,499

Provision for income taxes

2,654


2,608


4,528


4,827

Interest and other expense, net (1)

377


338


736


509

Depreciation and amortization 

2,123


2,033


4,208


3,975









EBITDA

$ 9,984


$ 9,531


$ 17,713


$ 17,810

























(1) Includes amortization of deferred financing fees. 

























Non-GAAP Financial Measures








     EBITDA (a non-GAAP measure) is defined in our debt covenants and performance measures as earnings before net interest and other expense, taxes, depreciation and amortization.  We believe that EBITDA provides useful additional information to analysts, creditors, investment bankers and management regarding operating performance and debt covenant compliance.  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, 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



More by this Source


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.