Nutrastar International Inc. Announces Second Quarter 2015 Results

Aug 13, 2015, 08:30 ET from Nutrastar International Inc.

HARBIN, China, Aug. 13, 2015 /PRNewswire/ -- Nutrastar International Inc. (OTC: 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 three months and six months ended June 30, 2015.

Financial Highlights for the Three Months Ended June 30, 2015  

  • Net revenue was $13.24 million, representing an increase of $0.24 million or 1.8% from $13.00 million in the comparable 2014 three month period.
  • Gross profit was $10.32 million, representing a gross margin of 77.9%.
  • Net income was $7.08 million, representing a net margin of 53.4%.
  • Basic and diluted EPS were $0.41 and $0.40, respectively, with 16.99 million basic shares and 17.74 million diluted shares outstanding.

Financial Highlights for the Six Months Ended June 30, 2015  

  • Net revenue was $20.29 million, representing an increase of $0.41 million or 2.0% from $19.87 million in the comparable 2014 six month period.
  • Gross profit was $15.78 million, representing a gross margin of 77.8%.
  • Net income was $10.61 million, representing a net margin of 52.3%.
  • Basic and diluted EPS were $0.62 and $0.60, respectively, with 16.98 million basic shares and 17.74 million diluted shares outstanding.

Management Commentary

Ms. Lianyun Han, CEO of Nutrastar, commented, "For the first half of 2015, we performed in line with our expectations. Sales of our core premium consumer product Cordyceps came in at $17.29 million, up 3.1% year-over-year, functional health beverages contributed $1.83 million and organic and specialty foods segment, our third consumer product category, contributing $1.17 million to revenues.  Gross margin expanded in the first half of the year by 0.9% to 77.8% as a result of economics of scale and an attractive product mix. Overall, we're delighted with the outcome of the second quarter and first six months of the year -- both periods marked by continued strong margins and an overall increase in revenue thanks to continued Cordyceps demand."

Ms. Han continued, "As for the remainder of the year, we are confident in the continuation of our growth and expect to meet our full year 2015 revenue guidance. Demand for our premium consumer products remains steadfast and robust. We remain committed to growing our brand awareness, bringing more products into the hands of health-conscious consumers and expanding our market internationally."

"As far as composition of our Board of Directors, after the resignation of Mr. Zhang Chunming due to personal health reasons, the Board currently comprised of six members, four of whom are independent directors. I would like to thank Mr. Zhang for his service over the past few years and wish him well in his future endeavors. The Company has started the recruitment process of a new director to fulfill the vacancy. We expect bringing on someone who can assist the Company in areas of product development and market expansion," added Ms. Han.

Outlook for the Year Ending December 31, 2015

Based on management's current expectations, full year 2015 revenue remains in the range of $43 million to $45 million.

For more information regarding Nutrastar's financial performance during the three and six months ended June 30, 2015, please refer to the Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on or about August 13, 2015.

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 336 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

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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: 

Investor Relations
Tel:  408-368-0254
Email: ir@nutrastarintl.com

NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited)
(AMOUNTS EXPRESSED IN US DOLLARS)




For the Three Months



For the Six Months




Ended June 30,



Ended June 30,




2015



2014



2015



2014


NET REVENUE

$

13,243,223


$

13,004,562


$

20,285,550


$

19,871,243


Cost of goods sold


(2,921,381)



(2,953,060)



(4,505,641)



(4,581,314)


GROSS PROFIT


10,321,842



10,051,502



15,779,909



15,289,929


Selling expenses


(427,661)



(478,832)



(725,286)



(725,895)


General and administrative expenses                      


(594,449)



(533,618)



(1,085,732)



(1,206,633)


Income from operations


9,299,732



9,039,052



13,968,891



13,357,401


Other income (expenses):













   Interest income


114,822



97,226



226,229



189,084


   Foreign exchange differences


6,240



(1,639)



(1,831)



(19,728)


   Total other income


121,062



95,587



224,398



169,356


Income before income taxes


9,420,794



9,134,639



14,193,289



13,526,757


Provision for income taxes


(2,342,967)



(2,338,917)



(3,584,285)



(3,497,461)


NET INCOME


7,077,827



6,795,722



10,609,004



10,029,296


OTHER COMPREHENSIVE INCOME:













   Foreign currency translation adjustments


674,919



(17,913)



149,745



(1,070,742)


COMPREHENSIVE INCOME

$

7,752,746


$

6,777,809


$

10,758,749


$

8,958,554


Earnings per share:













   Basic

$

0.41


$

0.40


$

0.62


$

0.59


   Diluted

$

0.40


$

0.38


$

0.60


$

0.57


Weighted average number of shares outstanding:













   Basic


16,996,396



16,858,667



16,977,221



16,758,599


   Diluted


17,739,156



17,694,270



17,738,285



17,657,471


 

NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS EXPRESSED IN US DOLLARS)




June 30, 2015



December 31, 2014




(Unaudited)





ASSETS

CURRENT ASSETS                                                                                                          







  Cash and cash equivalents

$

137,730,508


$

126,542,564


  Accounts receivable


95,620



93,066


  Inventories


922,555



635,409


  Prepayments and other receivables


1,706,928



1,489,800


    Total current assets


140,455,611



128,760,839


OTHER ASSETS







  Intangible assets, net


368,430



613,315


  Property, plant and equipment, net


13,944,027



14,424,942









    Total assets

$

154,768,068


$

143,799,096









LIABILITIES AND STOCKHOLDERS' EQUITY 


CURRENT LIABILITIES







  Other payables and accruals

$

954,724


$

990,290


  Taxes payable


2,899,998



2,748,583


  Due to a related party


524,212



511,054


  Preferred stock dividend payable


742,778



690,662


    Total current liabilities


5,121,712



4,940,589


    Total liabilities


5,121,712



4,940,589


COMMITMENTS AND CONTINGENCIES







STOCKHOLDERS' EQUITY







  Preferred Stock, $0.001 par value, 1,000,000 shares authorized, 74,276 shares

     and 77,776 shares issued and outstanding at June 30, 2015 and December

     31, 2014, respectively; aggregate liquidation preference amount: $2,079,728

     and $ 2,177,728, plus accrued but unpaid dividend of $742,778 and

     $690,662, at June 30, 2015 and December 31, 2014, respectively


1,693,950



1,773,772


  Common stock, $0.001 par value, 190,000,000 shares authorized, 17,039,951
     shares issued and 16,996,396 shares outstanding at June 30, 2015;
     16,953,541 shares issued and 16,909,986 shares outstanding at December
     31, 2014


17,040



16,954









  Additional paid-in capital


21,315,259



21,122,372


  Statutory reserves


4,989,033



4,989,033


  Treasury stock, at cost, 43,555 shares as of June 30, 2015 and December
     31,2014


(78,767)



(78,767)


  Retained earnings


113,308,261



102,783,308


  Accumulated other comprehensive income


8,401,580



8,251,835


    Total stockholders' equity


149,646,356



138,858,507









    Total liabilities and stockholders' equity

$

154,768,068


$

143,799,096


 

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




For the Six Months Ended June 30,




2015



2014


CASH FLOWS FROM OPERATING ACTIVITIES:







Net income

$

10,609,004


$

10,029,296


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







   Depreciation and amortization


737,238



743,052


   Share-based compensation expense


81,216



66,463


   IR unregistered stock compensation expense


-



53,371


(Increase) decrease in assets:







         Accounts receivable


(2,466)



(37,370)


         Inventories


(285,869)



(136,651)


         Prepayments and other receivables


(215,274)



(68,381)


Increase (decrease) in liabilities:







         Other payables and accruals


(36,264)



(127,833)


         Advance from related party


-



179,980


         Taxes payable


148,615



(46,908)


     Net cash provided by operating activities


11,036,200



10,655,019
















CASH FLOWS FROM FINANCING ACTIVITIES:







   Advance from related party


10,951



29,704


     Net cash provided by financing activities


10,951



29,704









Foreign currency translation adjustment


140,793



(960,635)









INCREASE IN CASH AND CASH EQUIVALENTS


11,187,944



9,724,088


CASH AND CASH EQUIVALENTS, at the beginning of the period


126,542,564



102,599,186









CASH AND CASH EQUIVALENTS, at the end of the period

$

137,730,508


$

112,323,274









NON-CASH TRANSACTIONS  







Preferred stock and dividend converted into common stock

$

111,757


$

958,897


Preferred stock dividend payable


84,051



88,249


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


81,216



66,463


Share-based payment – IR unregistered stock compensation expense


-



53,371


SUPPLEMENTAL DISCLOSURE INFORMATION







Income taxes paid

$

3,494,213


$

3,502,450


SOURCE Nutrastar International Inc.



RELATED LINKS

http://www.nutrastarintl.com