Nutraceutical International Corporation Reports Second Quarter Results

Apr 27, 2001, 01:00 ET from Nutraceutical International Corporation

    PARK CITY, Utah, April 27 /PRNewswire/ -- Nutraceutical International
 Corporation (Nasdaq:   NUTR) today reported results for the fiscal 2001 second
 quarter ended March 31, 2001.
     Revenue for the second quarter was $27.0 million compared to $28.7 million
 for the same quarter of fiscal 2000.  Net income for the second quarter
 increased to $1.8 million compared to $1.7 million for the same quarter of
 fiscal 2000.  For the six months ended March 31, 2001, revenue was
 $52.3 million compared to $56.3 million for the same six-month period of
 fiscal 2000.  During this six-month period, net income was $3.1 million
 compared to $3.3 million during the same prior year period.
     Diluted earnings per share for the second quarter increased 21 percent to
 $0.17 per share compared to $0.14 per share in the same quarter a year ago.
 Weighted average common shares outstanding (diluted) for the second quarter
 were 10,935,278 versus 12,509,519 for the second quarter a year ago.
     Bill Gay, chairman and chief executive officer, commented, "The slow-down
 in sales of nutritional supplements continued across all channels of
 distribution during the second quarter.  This trend continues from previous
 periods and affects both our company and many of our health-food-store
 customers, as well as many publicly traded nutritional supplement companies.
 We believe that this trend will continue during 2001, but we remain confident
 in our long-term business strategy and in the fundamental financial strength
 and competitiveness of our company.  While net sales were down during the
 second quarter, the company's profitability increased as a result of cost
 improvements in most areas of the business.  The company believes that its
 ongoing focus on product innovation, brand merchandising and cost improvements
 will help it remain a leader."
 
     Nutraceutical is one of the nation's largest manufacturers and marketers
 of quality branded nutritional supplements sold to health food stores.  The
 Company sells its products under the widely recognized brand names Solaray(R),
 KAL(R), NaturalMax(R), VegLife(R), Premier One(R), Solar Green(R), Natural
 Sport(TM), ActiPet(R), Action Labs(R) and Thompson(R) to health food stores in
 the United States, and to distributors and stores worldwide.  Under the name
 Woodland Publishing, the Company markets a line of books and booklets to,
 among others, book distributors, national retail bookstores and health food
 stores.  The Company manufactures and/or distributes one of the broadest
 branded product lines in the industry with over 2,300 stock keeping units
 (SKUs), including approximately 750 SKUs exclusively sold internationally.  In
 addition to its branded products, Nutraceutical manufactures bulk materials
 for use in its own products and for sale to other manufacturers and marketers
 in the nutritional supplement industry under the trade names Monarch
 Nutritional Laboratories and Great Basin Botanicals.
 
     The Securities and Exchange Commission (SEC) encourages companies to
 disclose forward-looking information so that investors can better understand a
 company's future prospects and make informed investment decisions.  Due to,
 among other things, changing market conditions, product competition, the
 nature of product development, regulatory approval processes and the
 uncertainty associated with acquiring additional businesses, the achievement
 of forward-looking statements contained in this press release are subject to
 risks and uncertainties.  The Company disclaims any obligation to update any
 forward-looking statements contained herein.  For further details and a
 discussion of these risks and uncertainties, see the Company's SEC filings,
 which are updated from time to time, copies of which are available upon
 request from Nutraceutical at 435-655-6106.
 
 
                      NUTRACEUTICAL INTERNATIONAL CORPORATION
 
                       CONDENSED CONSOLIDATED BALANCE SHEETS
 
                                    (unaudited)
 
                               (dollars in thousands)
 
 
 
                                                   March 31,     September 30,
                                                        2001              2000
     Assets
          Current assets, net                        $37,617           $37,545
          Property, plant and equipment, net          18,032            16,939
          Goodwill, net                               52,177            53,068
          Other non-current assets, net                  749               777
                                                    $108,575          $108,329
 
     Liabilities and Stockholders' Equity
          Current liabilities                         $8,141            $9,831
          Long-term liabilities, net                  39,303            40,554
          Stockholders' equity                        61,131            57,944
                                                    $108,575          $108,329
 
 
                      NUTRACEUTICAL INTERNATIONAL CORPORATION
 
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                    (unaudited)
 
                   (dollars in thousands, except per share data)
 
 
                                     Three months ended       Six months ended
                                          March 31,               March 31,
                                      2001        2000        2001        2000
     Net sales                     $27,009     $28,674     $52,336     $56,324
     Cost of sales                  13,606      14,938      26,803      29,456
         Gross profit               13,403      13,736      25,533      26,868
     Operating expenses:
         Selling, general and
          administrative             9,258       9,754      17,961      19,154
         Amortization of intangibles   441         429         883         870
                                     9,699      10,183      18,844      20,024
     Income from operations          3,704       3,553       6,689       6,844
     Interest expense, net             744         709       1,549       1,364
     Income before provision
      for income taxes               2,960       2,844       5,140       5,480
     Provision for income taxes      1,154       1,109       2,004       2,137
     Net income                     $1,806      $1,735      $3,136      $3,343
 
 
     Net income per common share:
         Basic                       $0.17       $0.15       $0.29       $0.28
         Diluted                     $0.17       $0.14       $0.29       $0.27
 
 
     Weighted average common
      shares outstanding:
         Basic                  10,935,278  11,803,655  10,926,962  11,798,080
         Diluted                10,935,278  12,509,519  10,926,962  12,510,719
 
 
                     NUTRACEUTICAL INTERNATIONAL CORPORATION
 
                                 EBITDA SCHEDULE
 
                                   (unaudited)
 
                              (dollars in thousands)
 
 
                                         Three months ended  Six months ended
                                               March 31,         March 31,
                                             2001     2000     2001     2000
 
     Net income                            $1,806   $1,735   $3,136   $3,343
     Provision for income taxes             1,154    1,109    2,004    2,137
     Interest expense, net (1)                744      709    1,549    1,364
     Depreciation and amortization          1,492    1,510    2,970    3,019
 
     Adjusted EBITDA                       $5,196   $5,063   $9,659   $9,863
 
     (1) Includes amortization of debt issuance costs.
 
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SOURCE Nutraceutical International Corporation
    PARK CITY, Utah, April 27 /PRNewswire/ -- Nutraceutical International
 Corporation (Nasdaq:   NUTR) today reported results for the fiscal 2001 second
 quarter ended March 31, 2001.
     Revenue for the second quarter was $27.0 million compared to $28.7 million
 for the same quarter of fiscal 2000.  Net income for the second quarter
 increased to $1.8 million compared to $1.7 million for the same quarter of
 fiscal 2000.  For the six months ended March 31, 2001, revenue was
 $52.3 million compared to $56.3 million for the same six-month period of
 fiscal 2000.  During this six-month period, net income was $3.1 million
 compared to $3.3 million during the same prior year period.
     Diluted earnings per share for the second quarter increased 21 percent to
 $0.17 per share compared to $0.14 per share in the same quarter a year ago.
 Weighted average common shares outstanding (diluted) for the second quarter
 were 10,935,278 versus 12,509,519 for the second quarter a year ago.
     Bill Gay, chairman and chief executive officer, commented, "The slow-down
 in sales of nutritional supplements continued across all channels of
 distribution during the second quarter.  This trend continues from previous
 periods and affects both our company and many of our health-food-store
 customers, as well as many publicly traded nutritional supplement companies.
 We believe that this trend will continue during 2001, but we remain confident
 in our long-term business strategy and in the fundamental financial strength
 and competitiveness of our company.  While net sales were down during the
 second quarter, the company's profitability increased as a result of cost
 improvements in most areas of the business.  The company believes that its
 ongoing focus on product innovation, brand merchandising and cost improvements
 will help it remain a leader."
 
     Nutraceutical is one of the nation's largest manufacturers and marketers
 of quality branded nutritional supplements sold to health food stores.  The
 Company sells its products under the widely recognized brand names Solaray(R),
 KAL(R), NaturalMax(R), VegLife(R), Premier One(R), Solar Green(R), Natural
 Sport(TM), ActiPet(R), Action Labs(R) and Thompson(R) to health food stores in
 the United States, and to distributors and stores worldwide.  Under the name
 Woodland Publishing, the Company markets a line of books and booklets to,
 among others, book distributors, national retail bookstores and health food
 stores.  The Company manufactures and/or distributes one of the broadest
 branded product lines in the industry with over 2,300 stock keeping units
 (SKUs), including approximately 750 SKUs exclusively sold internationally.  In
 addition to its branded products, Nutraceutical manufactures bulk materials
 for use in its own products and for sale to other manufacturers and marketers
 in the nutritional supplement industry under the trade names Monarch
 Nutritional Laboratories and Great Basin Botanicals.
 
     The Securities and Exchange Commission (SEC) encourages companies to
 disclose forward-looking information so that investors can better understand a
 company's future prospects and make informed investment decisions.  Due to,
 among other things, changing market conditions, product competition, the
 nature of product development, regulatory approval processes and the
 uncertainty associated with acquiring additional businesses, the achievement
 of forward-looking statements contained in this press release are subject to
 risks and uncertainties.  The Company disclaims any obligation to update any
 forward-looking statements contained herein.  For further details and a
 discussion of these risks and uncertainties, see the Company's SEC filings,
 which are updated from time to time, copies of which are available upon
 request from Nutraceutical at 435-655-6106.
 
 
                      NUTRACEUTICAL INTERNATIONAL CORPORATION
 
                       CONDENSED CONSOLIDATED BALANCE SHEETS
 
                                    (unaudited)
 
                               (dollars in thousands)
 
 
 
                                                   March 31,     September 30,
                                                        2001              2000
     Assets
          Current assets, net                        $37,617           $37,545
          Property, plant and equipment, net          18,032            16,939
          Goodwill, net                               52,177            53,068
          Other non-current assets, net                  749               777
                                                    $108,575          $108,329
 
     Liabilities and Stockholders' Equity
          Current liabilities                         $8,141            $9,831
          Long-term liabilities, net                  39,303            40,554
          Stockholders' equity                        61,131            57,944
                                                    $108,575          $108,329
 
 
                      NUTRACEUTICAL INTERNATIONAL CORPORATION
 
                  CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                    (unaudited)
 
                   (dollars in thousands, except per share data)
 
 
                                     Three months ended       Six months ended
                                          March 31,               March 31,
                                      2001        2000        2001        2000
     Net sales                     $27,009     $28,674     $52,336     $56,324
     Cost of sales                  13,606      14,938      26,803      29,456
         Gross profit               13,403      13,736      25,533      26,868
     Operating expenses:
         Selling, general and
          administrative             9,258       9,754      17,961      19,154
         Amortization of intangibles   441         429         883         870
                                     9,699      10,183      18,844      20,024
     Income from operations          3,704       3,553       6,689       6,844
     Interest expense, net             744         709       1,549       1,364
     Income before provision
      for income taxes               2,960       2,844       5,140       5,480
     Provision for income taxes      1,154       1,109       2,004       2,137
     Net income                     $1,806      $1,735      $3,136      $3,343
 
 
     Net income per common share:
         Basic                       $0.17       $0.15       $0.29       $0.28
         Diluted                     $0.17       $0.14       $0.29       $0.27
 
 
     Weighted average common
      shares outstanding:
         Basic                  10,935,278  11,803,655  10,926,962  11,798,080
         Diluted                10,935,278  12,509,519  10,926,962  12,510,719
 
 
                     NUTRACEUTICAL INTERNATIONAL CORPORATION
 
                                 EBITDA SCHEDULE
 
                                   (unaudited)
 
                              (dollars in thousands)
 
 
                                         Three months ended  Six months ended
                                               March 31,         March 31,
                                             2001     2000     2001     2000
 
     Net income                            $1,806   $1,735   $3,136   $3,343
     Provision for income taxes             1,154    1,109    2,004    2,137
     Interest expense, net (1)                744      709    1,549    1,364
     Depreciation and amortization          1,492    1,510    2,970    3,019
 
     Adjusted EBITDA                       $5,196   $5,063   $9,659   $9,863
 
     (1) Includes amortization of debt issuance costs.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X05255479
 
 SOURCE  Nutraceutical International Corporation