Nutraceutical Reports Fiscal 2013 Q3 Results

PARK CITY, Utah, July 25, 2013 /PRNewswire/ -- Nutraceutical International Corporation (NASDAQ: NUTR) today reported results for the fiscal 2013 third quarter ended June 30, 2013.  Net sales for the fiscal 2013 third quarter were $50.8 million compared to $49.6 million for the same quarter of fiscal 2012.  For the third quarter of fiscal 2013, net income was $3.8 million, or $0.39 diluted earnings per share, compared to net income of $3.4 million, or $0.34 diluted earnings per share, for the same quarter of fiscal 2012.  Net income for the third quarter of fiscal 2012 included a non-cash intangible asset impairment charge of $0.6 million, net of tax, or $0.06 per diluted share, related to the consolidation of certain brands. 

Net sales for the nine months ended June 30, 2013 were $157.1 million compared to $150.1 million for the same period of fiscal 2012.  For the nine months ended June 30, 2013, net income was $12.9 million, or $1.31 diluted earnings per share, compared to net income of $11.6 million, or $1.16 diluted earnings per share (including the intangible asset impairment charge), for the same period of fiscal 2012. 

Operating cash flow for the nine months ended June 30, 2013 was $19.2 million compared to $23.4 million for the same period of fiscal 2012.  The operating cash flow for the nine months ended June 30, 2013 was primarily used to pay a special cash dividend to stockholders on December 28, 2012 of $9.8 million and to invest $6.2 million in purchases of property, plant and equipment and $2.9 million in purchases of common stock for treasury.

Bill Gay, chairman and chief executive officer, commented, "Our fiscal 2013 third quarter net sales, net income and adjusted EBITDA remained strong.  During the quarter, management initiated strategic improvements in our manufacturing processes to lay the groundwork for long-term cost savings in materials, labor and overhead.  These manufacturing changes should be fully implemented by the end of our fiscal fourth quarter.  Management believes these internal operational enhancements are important to implement at the present time in order to achieve long-term cost savings.  Management's objective is to offset other less controllable expenses, which continue to rise, and to enhance inventory management and product fulfillment."

Mr. Gay stated, "Acquisitions of small to medium size companies remain a primary focus for our continued growth and to provide our customers with the best selection of unique products.  Our key retail customers have continued to grow and consolidate the fragmented marketplace despite the overall sluggish economy.  We continue to integrate and reposition our brands and products into targeted collections to enhance their marketing position.  We believe that our business should continue to prosper as a result of the ongoing support from our customers, stockholders, management and employees."

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 various trade names including 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 7,000 SKUs, including approximately 900 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).

© 2013 Nutraceutical Corporation.  All rights reserved.

SOURCE Nutraceutical International Corporation