PARK CITY, Utah, Jan 26, 2017 /PRNewswire/ -- Nutraceutical
International Corporation (NASDAQ: NUTR) today reported
results for the fiscal 2017 first quarter ended December 31, 2016. Net sales for the fiscal
2017 first quarter were $56.6
million, compared to $56.0
million for the same quarter of fiscal 2016. For the
first quarter of fiscal 2017, net income was $4.2 million, or $0.46 diluted earnings per share, compared to net
income of $4.2 million, or
$0.45 diluted earnings per share, for
the same quarter of fiscal 2016.
Operating cash flow for the fiscal 2017 first quarter was
$4.9 million, compared to
$6.9 million for the same quarter of
fiscal 2016. The fiscal 2017 first quarter operating cash
flow, combined with existing cash, primarily was used to repay net
borrowings of $4.0 million on the
Company's revolving credit facility and to invest $1.3 million in purchases of property, plant and
equipment.
Bill Gay, chairman and chief
executive officer, commented, "Our fiscal 2017 first quarter net
sales, gross profit and Adjusted EBITDA all remained strong and
reflect the continued success of our overall business strategy,
which includes a focus on maintaining and growing our core branded
business while continuing to acquire and integrate new
brands. Management is hopeful that financial improvements may
be realized from capital investments and operational consolidations
at certain of its manufacturing facilities by the end of this
calendar year. During the remainder of fiscal 2017, a key
management focus will be on increasing market share in the health
and natural food stores we serve through enhancements to our sales
and marketing programs. We also continue to pursue expansion
and growth opportunities into complementary natural product
channels including internet retailers and the professional and
direct-to-consumer channels. Management continually reviews
our cost structure with a focus on reducing controllable expenses
and improving efficiencies in all areas of the company. We
appreciate the long-term support of our customers and stockholders
as we pursue our business strategy and strive for continued
financial success."
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®, Dynamic Health®, Nature's Life®,
LifeTime®, Natural Balance®, NaturalCare®,
Health from the Sun®, Pioneer®, Nutra
BioGenesis®, Life-flo®, Organix South®,
Heritage Store® and Monarch
Nutraceuticals®.
We own neighborhood natural food markets, which operate under
the trade names The Real Food Company™, Thom's Natural
Foods™, Cornucopia Community Market™ and
Granola's®. We also own health food stores, which
operate under various trade names, including Fresh Vitamins®
and Peachtree Natural Foods®.
We manufacture and/or distribute one of the broadest branded
product lines in the industry, with approximately 7,500 SKUs,
including approximately 750 SKUs exclusively 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, including adverse determinations by regulators; (ii)
unavailability of desirable acquisitions, inability to complete
them or inability to integrate 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, including system interruptions and
security/cybersecurity breaches; (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).
NUTRACEUTICAL
INTERNATIONAL CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(unaudited;
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
|
|
2016
|
|
2016
|
Assets
|
|
|
|
|
Current assets,
net
|
$
95,748
|
|
$
93,866
|
Property, plant and
equipment, net
|
82,314
|
|
83,048
|
Goodwill
|
30,925
|
|
30,925
|
Other non-current assets,
net
|
27,218
|
|
28,016
|
|
|
|
$
236,205
|
|
$
235,855
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities
|
$
20,385
|
|
$
20,165
|
Long-term
liabilities
|
39,502
|
|
43,700
|
Stockholders'
equity
|
176,318
|
|
171,990
|
|
|
|
$
236,205
|
|
$
235,855
|
NUTRACEUTICAL
INTERNATIONAL CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited;
dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
Net sales
|
$
56,619
|
|
$
55,959
|
|
Cost of
sales
|
27,679
|
|
27,851
|
|
|
|
Gross
profit
|
28,940
|
|
28,108
|
|
Operating
expenses
|
|
|
|
|
|
|
Selling, general and
administrative
|
21,255
|
|
20,342
|
|
|
|
Amortization of
intangible assets
|
918
|
|
981
|
|
Income from
operations
|
6,767
|
|
6,785
|
|
Interest and other
expense, net
|
330
|
|
274
|
|
Income before
provision for income taxes
|
6,437
|
|
6,511
|
|
Provision for income
taxes
|
2,236
|
|
2,270
|
|
|
|
|
|
|
|
|
Net income
|
$
4,201
|
|
$
4,241
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share
|
|
|
|
|
|
|
Basic
|
$
0.46
|
|
$
0.45
|
|
|
|
Diluted
|
0.46
|
|
0.45
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
Basic
|
9,212,331
|
|
9,459,470
|
|
|
|
Diluted
|
9,212,331
|
|
9,459,470
|
|
NUTRACEUTICAL
INTERNATIONAL CORPORATION
|
ADJUSTED EBITDA
SCHEDULE
|
(unaudited;
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
December 31,
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
Net income
|
$
4,201
|
|
$
4,241
|
Provision for income
taxes
|
2,236
|
|
2,270
|
Interest and other
expense, net (1)
|
330
|
|
274
|
Depreciation and
amortization
|
3,560
|
|
3,482
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 10,327
|
|
$ 10,267
|
|
|
|
|
|
|
|
|
(1)
|
Includes amortization
of deferred financing fees.
|
|
|
Non-GAAP Financial Measures
Adjusted EBITDA (a
non-GAAP measure) is defined in our performance measures as
earnings before net interest and other expense, taxes,
depreciation, amortization and goodwill and intangible asset
impairments. We believe that Adjusted EBITDA provides useful
additional information to analysts, creditors, investment bankers,
investors and management regarding operating performance and debt
covenant compliance. Adjusted EBITDA has some inherent
limitations in measuring operating performance due to the exclusion
of certain financial elements such as depreciation and amortization
and is not necessarily comparable to other similarly-titled
captions of other companies due to potential inconsistencies in the
method of calculation. Furthermore, Adjusted EBITDA is not
intended to be an alternative to net income in determining our
operating performance in accordance with generally accepted
accounting principles.
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visit:http://www.prnewswire.com/news-releases/nutraceutical-reports-fiscal-2017-q1-results-300397022.html
SOURCE Nutraceutical International Corporation