2014

Nutrastar Announces First Quarter 2012 Results Sales of Its Unique Premium Consumer Products up 18.4%; Gross Margin Remains Strong at 74.1%

HARBIN, China, May 15, 2012 /PRNewswire-Asia-FirstCall/ -- Nutrastar International Inc. (OTCBB: 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, 2012.

Financial Highlights for the Quarter Ended March 31, 2012
 

  • Net revenue increased 18.4% to $6.86 million, as compared to $5.80 million in the quarter ended March 31, 2011.
  • Gross profit increased 14.8% to $5.08 million, up from $4.43 million in the comparable 2011 quarter, representing a gross margin of 74.1%.
  • Net income was $2.95 million, as compared to $3.01 million in Q1 2011.
  • Basic and diluted EPS were $0.19 and $0.18, respectively, with 15.36 million basic shares and 16.51 million diluted shares outstanding.

Ms. Lianyun Han, CEO of Nutrastar, commented, "We are pleased with our performance in the first quarter, ending it with improved sales across all of our product lines, a strong bottom line and a very robust balance sheet. Demand grew across all of our premium consumer product lines. Sales of Cordyceps increased 7.4%, beverages grew 271.5% and organic and specialty foods rose 13.4%, as over the comparable 2011 period. As expected, we saw a slight decline in the gross margin to 74.1% from 76.4% in the first quarter of 2011 due to an increase in sales from our beverage products which have a higher cost of production than our other consumer products."

Ms. Han continued, "Throughout Q1, we made progress further broadening our market presence via marketing initiatives, and expanding our production capacity. We also made headway growing our premium consumer product portfolio with the upcoming addition of a new Cordyceps instant soluble drink powder and an infused alcohol product. We expect to see revenue from these products upon their introduction to the market and are very excited about the potential opportunities these products will afford us and our shareholders down the road."

As for Q2 and remainder of 2012, Ms. Han stated, "Expansion in both capacity and product offering is expected to stay on track and at the forefront of our operational and business development initiatives." Ms. Han added, "We look forward to launching new premium products to the market which we expect, like our entire existing product lines, will be well received within China's growing mass consumer market."

Financial Position as of March 31, 2012

The Company had cash and cash equivalents totaling $57.00 million or $3.45 per diluted share, total assets of approximately $78.51 million or $4.75 per diluted share, working capital of $55.86 million or $3.38 per diluted share, and stockholders' equity of $75.28 million. Net cash generated from operating activities during the quarter ended March 31, 2012 was $2.39 million

Outlook for the Year Ending December 31, 2012

Based on management's current expectations, it is believed that revenue will be in the range of $40 million to $44 million, representing an approximate top line increase of 17% to 29% year over year.

For more information regarding Nutrastar's financial performance during the quarter ended March 31, 2012, please refer to the Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on or about May 15, 2012. 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 332 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

Make sure you are first to receive timely up-to-date information on Nutrastar. Sign up for Nutrastar's email news alert system today at: http://www.nutrastarintl.com/alerts

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,




2012



2011









NET REVENUE

$

6,861,018


$

5,796,242









Cost of goods sold


(1,778,568)



(1,369,800)









GROSS PROFIT


5,082,450



4,426,442









Selling expenses


(382,358)



(409,873)


General and administrative expenses


(664,705)



(521,326)









Income from operations


4,035,387



3,495,243









Other income (expenses):







   Interest income


67,218



39,829


   Foreign exchange differences


2,404



22,921


   Change in fair value of warrants


(4,029)



392,191


   Total other income (expenses)


65,593



454,941









Income before income taxes


4,100,980



3,950,184









Provision for income taxes


(1,151,402)



(942,413)









NET INCOME


2,949,578



3,007,771









OTHER COMPREHENSIVE INCOME:







Foreign currency translation adjustments


79,753



512,009









COMPREHENSIVE INCOME

$

3,029,331


$

3,519,780









Earnings per share







   Basic

$

0.19


$

0.20


   Diluted

$

0.18


$

0.18









Weighted average number of shares outstanding







   Basic


15,361,458



14,513,470


   Diluted


16,512,858



16,274,183



NUTRASTAR INTERNATIONAL INC. and subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS EXPRESSED IN US DOLLARS)





March 31,


December 31,





2012


2011





(Unaudited)



ASSETS


CURRENT ASSETS






Cash and cash equivalents

$

56,996,050

$

54,556,329


Restricted cash


-


4,170


Accounts receivable


90,530


82,516


Inventories


1,331,661


898,871


Prepayments and other receivables


677,853


1,194,466



Total current assets


59,096,094


56,736,352

OTHER ASSETS






Intangible assets, net


1,907,500


2,024,593


Property, plant and equipment, net


12,217,888


12,395,567


Construction in process


5,293,097


5,271,609










Total assets

$

78,514,579

$

76,428,121


LIABILITIES AND STOCKHOLDERS' EQUITY


CURRENT LIABILITIES






Accounts payable

$

-

$

6,339


Other payables and accruals


1,113,875


1,064,045


Taxes payable


1,493,787


2,585,738


Due to a related party


80,723


80,648


Preferred stock dividend payable


396,683


529,851


Warrants liabilities


148,440


144,411



Total current liabilities


3,233,508


4,411,032








Total liabilities


3,233,508


4,411,032








COMMITMENTS AND CONTINGENCIES (Note 19)












STOCKHOLDERS' EQUITY











Preferred Stock, $0.001 par value, (1,000,000 shares authorized,






113,620 shares and 147,820 shares issued and outstanding, respectively;






aggregate liquidation preference amount: $3,181,360 and $4,138,960,






plus accrued but unpaid dividend of $396,683 and $529,851,


2,591,236


3,371,206


at March 31, 2012 and December 31, 2011, respectively)






Common stock, $0.001 par value, 190,000,000 shares authorized






15,400,511 shares issued and 15,395,850 shares outstanding at


15,401


14,963


     March 31, 2012; 14,962,631 shares issued and 14,957,970 shares

     outstanding at December 31, 2011






Additional paid-in capital


18,259,607


17,180,280


Treasury stock, at cost, 4,661 shares of common stock as of March 31, 2012






and December 31, 2011


(9,553)


(9,553)


Statutory reserves


3,407,481


3,076,552


Retained earnings


45,720,579


43,167,074


Accumulated other comprehensive income


5,296,320


5,216,567



Total stockholders' equity


75,281,071


72,017,089










Total liabilities and stockholders' equity

$

78,514,579

$

76,428,121


NUTRASTAR INTERNATIONAL INC. and subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(AMOUNTS EXPRESSED IN US DOLLARS)



For the Three Months Ended March 31,




2012



2011


CASH FLOWS FROM OPERATING ACTIVITIES:







Net income

$

2,949,578


$

3,007,771


Adjustments to reconcile net income to cash provided by operating activities:







   Change in fair value of warrants


4,029



(392,191)


   Depreciation and amortization


309,252



263,838


   Share-based compensation expense


101,483



92,753


 (Increase) decrease in assets:







       Accounts receivable


(7,911)



144,759


       Inventories


(430,950)



(40,953)


       Prepayments and other receivables


516,790



230,979


 Increase (decrease) in liabilities:







       Accounts payable


(6,332)



24,756


       Other payables and accruals


48,578



(61,212)


       Taxes payable


(1,092,388)



552,406


     Net cash provided by operating activities


2,392,129



3,822,906









CASH FLOWS FROM INVESTING ACTIVITIES:







Purchase of property, plant and equipment and construction in progress


(15,927)



(1,168)


     Net cash used in investing activities


(15,927)



(1,168)









CASH FLOWS FROM FINANCING ACTIVITIES:







Decrease in restricted cash


4,170



44,650


     Net cash provided by financing activities


4,170



44,650









Foreign currency translation adjustment


59,349



391,926









INCREASE IN CASH AND CASH EQUIVALENTS


2,439,721



4,258,314


CASH AND CASH EQUIVALENTS, at the beginning of the period


54,556,329



40,758,848









CASH AND CASH EQUIVALENTS, at the end of the period

$

56,996,050


$

45,017,162









NON-CASH TRANSACTIONS







Preferred stock and dividend converted into common stock

$

978,282


$

673,351


Share-based payment – IR warrants


-



22,359


Preferred stock dividend payable


65,144



181,181


Share-based payment to officers and directors under equity incentive plan


101,483



92,753


SUPPLEMENTAL DISCLOSURE INFORMATION







Income taxes paid

$

1,899,301


$

215,317


SOURCE Nutrastar International Inc.



RELATED LINKS
http://www.nutrastarintl.com/
http://www.nutrastarintl.com/alerts

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.