Nutrastar Announces Full Year 2012 Results, Issues 2013 Revenue Guidance Core Consumer Product Cordyceps Militaris Continues to Drive Growth; Annual Sales Up 7.5% Year-Over-Year; Gross Margin at 76.2%

Expanded Production Capacity Expected to Augment Future Growth; 2013 Revenue Anticipated at Between $44 Million and $46 Million, Representing an Increase of Between 19% and 25% YOY

HARBIN, China, March 29, 2013 /PRNewswire-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 results for the year ended December 31, 2012.

Financial Highlights 
 

  • Net revenue was $36.77 million, an increase of 7.5% from full year 2011.
  • Gross profit was $28.03 million, representing a gross margin of 76.2%, an increase of 0.3% from the previous year.
  • Net income was $17.24 million, representing a net margin of 46.9%.
  • Basic and diluted EPS were $1.10 and $1.04, respectively, with 15.45 million basic shares and 16.60 million diluted shares outstanding.


Management Commentary

"While we were quite pleased with our 2012 financial results, as mentioned last quarter, the Company experienced a supply shortage due to required operational maintenance that occurred within our facilities – resulting in full year sales being lower than expected. Despite this short disruption, total sales for the year ended December 31, 2012 grew by 7.5% reaching approximately $36.8 million, as compared to the previous year's sales of $34.2 million. High demand led to a 9.5% year-over-year increase in sales of our core consumer product, Cordyceps; while organic specialty foods sales saw a 4.7% increase and functional health beverages saw a 0.9% increase. Gross profit remained strong at 76.2%. The year of 2012 was also marked by the completion of our large multi-phase, multi-year production capacity expansion project, which overall boosted capacity from 55 tons to 100 tons, a huge milestone achieved for the Company and the team," Ms. Lianyun Han, CEO of Nutrastar, commented.

On the subject of the Company's financial position, Ms. Han stated, "As vouched and verified by our independent auditor, we closed the year with a cash balance of approximately $75.5 million, equivalent to roughly $4.55 per diluted share. These funds are being managed wisely and conservatively, and are set aside for the Company's future organic and inorganic growth initiatives such as brand and product development, as well as marketing & advertising designed to promote our consumer product portfolio in cities deemed most opportunistic."

Ms. Han continued, "Looking at 2013, current demographical and market conditions in China seemingly continue to remain advantageous to our businesses and our premium consumer product offerings, particularly as the country becomes more affluent; its citizens become more health conscious; and rising healthcare costs continue to result in increasing demand for alternative medicines and preventative measures such as our core product Cordyceps. We expect this year to be one of substantial expansion in both our top and bottom line as well as within our product offerings and overall market presence. Equipped with heightened capacity, we also expect to see improvements related to our costs and operations, and anticipate that with the proper, intelligent allocation of funds, we will continue building greater market awareness for our premium functional health beverages and other products in China with the larger goal to expand distribution into the international arena. We look forward to the remainder of the year ahead and encourage any interested party to reach out to us directly for more information on Nutrastar and our innovative, premium consumer product portfolio."

Outlook for the Year Ending December 31, 2013

Based on management's current expectations, the Company projects that 2013 revenue will be in the range of $44 million to $46 million, representing an approximate 19% to 25% top line increase year over year.

Request for Call with Management

Investors are invited to request a call with Nutrastar's management team. For those investors who are interested in speaking with management, please contact American Capital Ventures at +1-305-918-7000 to schedule.

For more information regarding Nutrastar's financial performance during the year ended December 31, 2012, please refer to the Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on or about March 29, 2013.

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," "projects," "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

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(AMOUNTS EXPRESSED IN US DOLLARS)




Year Ended December 31,




2012



2011


REVENUE

$

36,771,176


$

34,205,954


Cost of goods sold


(8,742,166)



(8,246,853)


GROSS PROFIT


28,029,010



25,959,101


Selling expenses


(1,658,956)



(1,640,796)


General and administrative expenses


(3,102,070)



(2,843,298)


Income from operations


23,267,984



21,475,007


Other income (expenses):







   Interest income


255,918



193,742


   Foreign exchange differences


5,610



60, 988


   Change in fair value of warrants


144,238



1,053,862


   Other income


7,921



-


   Total other income (expenses)


413,687



1,308,592


Income before income taxes


23,681,671



22,783,599


Provision for income taxes


(6,438,960)



(5,800,632)


NET INCOME


17,242,711



16,982,967


OTHER COMPREHENSIVE INCOME:







Foreign currency translation adjustments


250,445



2,956,953


COMPREHENSIVE INCOME

$

17,493,156


$

19,939,920


Earnings per share







   Basic

$

1.10


$

1.12


   Diluted

$

1.04


$

1.04


Weighted average number of shares outstanding







   Basic


15,453,656



14,784,564


   Diluted


16,600,053



16,339,999


      

NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(AMOUNTS EXPRESSED IN US DOLLARS)



December 31,




2012



2011


ASSETS             


CURRENT ASSETS







 Cash and cash equivalents

$

75,526,533


$

54,556,329


 Restricted cash


-



4,170


 Accounts receivable


81,497



82,516


 Inventories


965,251



898,871


 Prepayments and other receivables


1,321,726



1,194,466


   Total current assets


77,895,007



56,736,352


OTHER ASSETS







 Intangible assets, net


1,552,022



2,024,593


 Property, plant and equipment, net


15,991,060



12,395,567


 Construction in process


-



5,271,609









   Total assets

$

95,438,089


$

76,428,121


LIABILITIES AND STOCKHOLDERS' EQUITY                    


CURRENT LIABILITIES







 Accounts payable

$

-


$

6,339


 Other payables and accruals


1,481,198



1,064,045


 Taxes payable


2,981,136



2,585,738


 Due to a related party


150,036



80,648


 Preferred stock dividend payable


528,528



529,851


 Warrants liabilities


173



144,411


   Total current liabilities


5,141,071



4,411,032


   Total liabilities


5,141,071



4,411,032


COMMITMENTS AND CONTINGENCIES (Note 19)







STOCKHOLDERS' EQUITY







 Preferred Stock, $0.001 par value, (1,000,000 shares authorized,
 113,010 shares and 147,820 shares issued and outstanding, respectively;
 aggregate liquidation preference amount: $3,164,280 and $4,138,960,
 plus accrued but unpaid dividend of $528,528 and $529,851,
 at December 31, 2012 and 2011, respectively


2,577,324



3,371,206









 Common stock, $0.001 par value, 190,000,000 shares authorized,
    15,907,381 shares issued and 15,863,826 shares outstanding at
    December 31, 2012; 14,962,631 shares issued and 14,957,970 shares
    outstanding at December 31, 2011


15,908



14,963









 Additional paid-in capital


19,029,586



17,180,280


 Statutory reserves


4,960,023



3,076,552


 Treasury stock, at cost, 43,555 shares and 4,661 shares
 as of December 31, 2012 and December 31,2011, respectively


(78,767)



(9,553)


 Retained earnings


58,325,932



43,167,074


 Accumulated other comprehensive income


5,467,012



5,216,567


   Total stockholders' equity


90,297,018



72,017,089









   Total liabilities and stockholders' equity

$

95,438,089


$

76,428,121


 

NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(AMOUNTS EXPRESSED IN US DOLLARS)



Year Ended December 31,




2012



2011


CASH FLOWS FROM OPERATING ACTIVITIES:







Net income

$

17,242,711


$

16,982,967


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







   Change in fair value of warrants


(144,238)



(1,053,862)


   IR warrant and restricted stock expense


45,000



79,415


   Depreciation and amortization


1,235,468



1,142,635


   Loss on disposal of property and equipment


76,219



-


   Share-based compensation expense


809,664



394,207


(Increase) decrease in assets:







             Accounts receivable


1,216



187, 353


             Inventories


(63,903)



12,885


             Prepayments and other receivables


(123,802)



(912,759)


Increase (decrease) in liabilities:







             Accounts payable


(6,327)



(122,853)


             Other payables and accruals


412,785



277,540


             Taxes payable


387,399



1,808,330


         Net cash provided by operating activities


19,872,192



18,795,858









CASH FLOWS FROM INVESTING ACTIVITIES:







Purchase of property, plant and equipment


(315,257)



(7,613,286)


Proceeds from disposal of fixed assets


-



209,177


Refund of payments for building construction


1,267,327



-


         Net cash provided by (used in) investing activities


952,070



(7,404,109)









CASH FLOWS FROM FINANCING ACTIVITIES:







Purchase of common stock


(69,214)



(9,553)


Decrease in restricted cash


4,170



188,905


Advance from a related party


64,829



29,309


         Net cash (used in) provided by financing activities


(215)



208,661









Foreign currency translation adjustment


146,157



2,197,071









INCREASE IN CASH AND CASH EQUIVALENTS


20,970,204



13,797,481


CASH AND CASH EQUIVALENTS, at the beginning of the year


54,556,329



40,758,848









CASH AND CASH EQUIVALENTS, at the end of the year

$

75,526,533


$

54,556,329









NON-CASH TRANSACTIONS







Preferred stock and dividend converted into common stock

$

995,587


$

1,203,346


Preferred stock dividend payable


200,382



414,308


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


809,664



394,207


Share-based payment – IR warrants and restricted shares


45,000



42,150


SUPPLEMENTAL DISCLOSURE INFORMATION







Income taxes paid

$

6,179,713


$

4,210,323


 

SOURCE Nutrastar International Inc.



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

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.