PARK CITY, Utah, Jan. 26, 2012 /PRNewswire/ -- Nutraceutical
International Corporation (NASDAQ: NUTR) today reported results for
the fiscal 2012 first quarter ended December
31, 2011. Net sales for the fiscal 2012 first quarter
were $46.6 million compared to
$45.2 million for the same quarter of
fiscal 2011. For the first quarter of fiscal 2012, net income
was $3.4 million, or $0.34 diluted earnings per share, compared to net
income of $3.9 million, or
$0.38 diluted earnings per share, for
the same quarter of fiscal 2011.
Operating cash flow for the fiscal 2012 first quarter was
$7.6 million compared to $6.3 million for the same period of fiscal 2011.
This operating cash flow was primarily used to invest
$1.1 million in acquisitions of
branded natural product businesses, $1.8
million in purchases of property and equipment, $2.2 million in repurchases of common stock and
$0.5 million to repay net borrowings
on the Company's revolving credit facility.
Bill Gay, chairman and chief
executive officer, commented, "Fiscal 2012 first quarter net sales
growth came principally from recent branded acquisitions and our
international branded business. Our net sales growth was partially
offset by the closure of certain retail stores as leases expired.
Net income primarily declined as a result of increased
manufacturing overhead costs associated with our new manufacturing
facilities, as well as other costs associated with recent
acquisitions including freight, payroll and interest expense.
We will focus on improving manufacturing overhead over the
calendar year by methodically working on improving utilization of
our added capacity. Cash flow remained strong and we
continued to invest in acquisitions, facilities and repurchases of
our common stock."
Mr. Gay continued, "The economy and our industry appear to be
moving in a sideways trend and continue to be impacted by political
and international uncertainties. We have now experienced four
years of this lethargic economy and so we will continue to
emphasize cost cutting, technological innovation and overall
business efficiencies. Acquisitions of unique branded products, at
appropriate valuations, remain fundamental to creating long-term
shareholder value in a stock market that currently undervalues
financial fundamentals. Given current valuations, we also
have been proactively repurchasing common stock to enhance overall
long-term shareholder returns. Our Board and management team
appreciate the tremendous support we have from our employees and
shareholders in these uncertain times."
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 the trade names
Fresh Vitamins™ and Granola's™.
We manufacture and/or distribute one of the broadest branded
product lines in the industry with over 6,000 SKUs, including
approximately 700 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).
© 2012 Nutraceutical Corporation. All rights reserved.
NUTRACEUTICAL INTERNATIONAL
CORPORATION
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CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(unaudited;
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
September
30,
|
|
|
2011
|
|
2011
|
|
Assets
|
|
|
|
|
Current assets,
net
|
$
61,563
|
|
$
62,069
|
|
Property, plant
and equipment, net
|
72,292
|
|
72,094
|
|
Goodwill
|
9,202
|
|
8,853
|
|
Other non-current
assets, net
|
28,132
|
|
28,649
|
|
|
$
171,189
|
|
$
171,665
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
|
Current
liabilities
|
$
18,111
|
|
$
19,737
|
|
Long-term
liabilities
|
31,804
|
|
32,253
|
|
Stockholders'
equity
|
121,274
|
|
119,675
|
|
|
$
171,189
|
|
$
171,665
|
|
|
|
|
|
NUTRACEUTICAL INTERNATIONAL
CORPORATION
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
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|
(unaudited;
dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended December 31,
|
|
|
|
2011
|
|
2010
|
|
Net sales
|
$
46,628
|
|
$
45,243
|
|
Cost of sales
|
23,370
|
|
21,781
|
|
|
Gross profit
|
23,258
|
|
23,462
|
|
Operating expenses
|
|
|
|
|
|
Selling, general and
administrative
|
17,140
|
|
16,735
|
|
|
Amortization of intangible
assets
|
474
|
|
390
|
|
Income from
operations
|
5,644
|
|
6,337
|
|
Interest and other expense,
net
|
359
|
|
171
|
|
Income before provision for
income taxes
|
5,285
|
|
6,166
|
|
Provision for income
taxes
|
1,874
|
|
2,219
|
|
|
|
|
|
|
|
Net income
|
$
3,411
|
|
$
3,947
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share
|
|
|
|
|
|
Basic
|
$
0.34
|
|
$
0.38
|
|
|
Diluted
|
0.34
|
|
0.38
|
|
|
|
|
|
|
|
Weighted average common shares
outstanding
|
|
|
|
|
|
Basic
|
10,045,224
|
|
10,378,513
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|
|
Diluted
|
10,060,107
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|
10,462,089
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NUTRACEUTICAL INTERNATIONAL
CORPORATION
|
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EBITDA
SCHEDULE
|
|
(unaudited;
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended December 31,
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
Net income
|
$
3,411
|
|
$
3,947
|
|
Provision for income
taxes
|
1,874
|
|
2,219
|
|
Interest and other expense, net
(1)
|
359
|
|
171
|
|
Depreciation and
amortization
|
2,085
|
|
1,942
|
|
|
|
|
|
|
|
EBITDA
|
$
7,729
|
|
$
8,279
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(1)
|
Includes amortization of
deferred financing fees.
|
|
|
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Non-GAAP Financial
Measures
|
|
EBITDA (a non-GAAP
measure) is defined in our debt covenants and performance measures
as earnings before net interest and other expense, taxes,
depreciation and amortization. We believe that EBITDA
provides useful additional information to analysts, creditors,
investment bankers and management regarding operating performance
and debt covenant compliance. 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, 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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SOURCE Nutraceutical International Corporation