PARK CITY, Utah, July 30 /PRNewswire-FirstCall/ -- Nutraceutical
International Corporation (NASDAQ:NUTR) today reported results for
the fiscal 2009 third quarter ended June 30, 2009. Net sales for
the fiscal 2009 third quarter were $39.4 million compared to $40.5
million for the same quarter of fiscal 2008. For the third quarter
of fiscal 2009, net income was $3.0 million, or $0.27 diluted
earnings per share, compared to net income of $2.9 million, or
$0.26 diluted earnings per share, for the same quarter of fiscal
2008. Net sales for the nine months ended June 30, 2009 were $121.0
million compared to $126.0 million for the same period in fiscal
2008. During the second quarter of fiscal 2009, the Company
recorded a non-cash goodwill impairment charge of $37.5 million
($27.3 million after tax, or $2.51 per diluted share for the nine
months ended June 30, 2009) resulting in a net loss of $(17.2)
million, or $(1.58) per diluted share, for the nine months ended
June 30, 2009, compared to net income of $10.4 million, or $0.93
per diluted share, for the same period of fiscal 2008. Excluding
the non-cash impairment charge, net income for the nine months
ended June 30, 2009 would have been $10.1 million, or $0.92 per
diluted share. Operating cash flow for the nine months ended June
30, 2009 was $17.2 million compared to $14.4 million for the same
period of fiscal 2008. This operating cash flow was primarily used
to invest $7.4 million in purchases of property and equipment and
repay $9.5 million in net borrowings on the Company's revolving
credit facility. Bill Gay, chairman and chief executive officer,
commented, "Domestic and international sales improved in the third
quarter despite the current economic environment and we are hopeful
that this trend will continue. Net income remained solid and cash
flows increased as a result of inventory and accounts receivable
reductions. Gross margins declined slightly due to increased raw
material prices and manufacturing overhead costs related to
inventory reductions. Selling, general and administrative expense
reductions offset our lower gross margins. Our core health food
store customers are regaining confidence in their businesses and we
look forward to helping them grow. Ongoing sales promotions appear
to be benefiting stores, consumers and our Company. We expect
acquisitions to contribute to profitability and cash flow within
this calendar year. It is encouraging that the market has responded
favorably to the Company's recent addition to the Russell 2000
stock index and we believe our financial strength and position as a
value based stock will bring awareness to many new investors." Mr.
Gay continued, "I am also pleased to announce that on July 28,
2009, our Board of Directors agreed to add an additional one
million shares to our previously approved share purchase program
which means the Company is authorized to buy up to 1.56 million
total additional shares of our outstanding common stock." Under
this approved share purchase program, the Company may purchase
common stock from time to time on the open market and in
individually negotiated transactions. The amount and timing of any
purchases will be dependent upon a number of factors, including the
price and availability of the Company's shares and general market
conditions. The Company currently has approximately 10.9 million
shares of its common stock outstanding. Since October 1, 2003, the
Company has purchased approximately 1.3 million shares of its
common stock at an average price of $13.61 per share for an
aggregate purchase price of approximately $17.5 million. 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, from beginning to end, the manufacturing, marketing and
distribution of branded nutritional supplement businesses in the
natural products industry. 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 sell branded nutritional
supplements and other natural products under the trademarks Solaray
, VegLife , KAL , Nature's Life , Sunny Green , Action Labs ,
Natural Balance , NaturalMax , bioAllers , Herbs for Kids(TM),
Natra-Bio , NaturalCare , Zand , Health from the Sun , Life-flo ,
Larenim , Living Flower Essences , Pioneer , Thompson , Natural
Sport , Supplement Training Systems , Premier One , Montana Big
Sky(TM), ActiPet , FunFresh Foods(TM), Dowd & Rogers(TM),
CompliMed , AllVia(TM), Oakmont Labs , Healthway , Body Gold ,
Sayge(TM), Monarch Nutraceuticals(TM) and Great Basin
Botanicals(TM). Under the name Woodland Publishing(TM), we publish,
print and market a line of books and booklets to, among others,
book distributors, national retail bookstores and health and
natural food stores. We also distribute branded products of certain
third parties. We own neighborhood natural food markets, which
operate under the trade names The Real Food Company (TM), Thom's
Natural Foods(TM) and Cornucopia Community Market(TM). We also own
health food stores, which operate under the trade names Fresh
Vitamins(TM) and Granola's(TM). We manufacture and/or distribute
one of the broadest branded product lines in the industry with over
4,000 SKUs, including over 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. Although these
statements are believed to be reasonable, they are inherently
uncertain. These statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
level of activity, performance or achievements to be materially
different from any future results, levels of activity, performance
or achievements expressed or implied by these statements. We
undertake no obligation to update forward-looking statements to
reflect events or circumstances occurring after the date of this
Press Release. Important factors that may cause our results to
differ from these forward-looking statements include, but are not
limited to: (i) slow or negative growth in the nutritional
supplement industry or the healthy foods channel, (ii) interruption
of business or negative impact on sales and earnings due to acts of
God, acts of war, terrorism, bio-terrorism or civil unrest, (iii)
adverse publicity or negative consumer perception regarding
nutritional supplements, (iv) changes in government regulations,
(v) product liability claims and litigation, (vi) insurance
coverage issues, (vii) increased competition or costs, (viii)
intellectual property rights of other parties, (ix) the loss of key
personnel, (x) disruptions from acquisitions, (xi) issues with
obtaining raw materials of adequate quality or quantity, (xii)
problems with information management systems, manufacturing
efficiencies and operations, (xiii) changes in general worldwide
economic or political conditions, (xiv) the volatility of the stock
market generally and of our stock specifically, (xv) litigation
generally, and (xvi) other factors indicated from time to time in
our SEC reports, copies of which are available upon request from
our investor relations group or which may be obtained at the SEC's
website (http://www.sec.gov/). 2009 Nutraceutical Corporation. All
rights reserved. NUTRACEUTICAL INTERNATIONAL CORPORATION CONDENSED
CONSOLIDATED BALANCE SHEETS (unaudited; dollars in thousands) June
30, September 30, --------- -------------- 2009 2008 Assets Current
assets, net $49,719 $55,577 Property, plant and equipment, net
55,232 52,356 Goodwill 332 37,632 Other non-current assets, net
25,503 16,099 ------ ------ $130,786 $161,664 -------- --------
Liabilities and Stockholders' Equity Current liabilities $14,425
$19,239 Long-term liabilities 19,929 28,965 Stockholders' equity
96,432 113,460 ------ ------- $130,786 $161,664 -------- --------
NUTRACEUTICAL INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (unaudited; dollars in thousands, except
per share data) Three months ended Nine months ended June 30, June
30, ------------------ ----------------- 2009 2008 2009 2008 Net
sales $39,406 $40,454 $120,992 $125,986 Cost of sales 19,250 18,489
56,964 57,192 ------ ------ ------ ------ Gross profit 20,156
21,965 64,028 68,794 Operating expenses Selling, general and
administrative 15,099 16,933 46,585 50,539 Amortization of
intangible assets 163 185 480 522 Impairment of goodwill - - 37,519
- --- --- ------ --- Income (loss) from operations 4,894 4,847
(20,556) 17,733 Interest and other (income) expense, net 177 223
951 1,008 --- --- --- ----- Income (loss) before provision
(benefit) for income taxes 4,717 4,624 (21,507) 16,725 Provision
(benefit) for income taxes 1,698 1,771 (4,279) 6,309 ----- -----
------ ----- Net income (loss) $3,019 $2,853 $(17,228) $10,416
------ ------ -------- ------- Net income (loss) per common share
Basic $0.28 $0.26 $(1.58) $0.94 Diluted 0.27 0.26 (1.58) 0.93
Weighted average common shares outstanding Basic 10,903,394
10,964,696 10,874,382 11,043,026 Diluted 10,982,174 11,097,500
10,874,382 11,181,609 NUTRACEUTICAL INTERNATIONAL CORPORATION
ADJUSTED EBITDA SCHEDULE (unaudited; dollars in thousands) Three
months ended Nine months ended June 30, June 30, ------------------
----------------- 2009 2008 2009 2008 Net income (loss) $3,019
$2,853 $(17,228) $10,416 Provision (benefit) for income taxes 1,698
1,771 (4,279) 6,309 Interest and other (income) expense, net (1)
177 223 951 1,008 Depreciation and amortization 1,683 1,514 4,959
4,256 Impairment of goodwill (2) - - 37,519 - --- --- ------ ---
Adjusted EBITDA $6,577 $6,361 $21,922 $21,989 ------ ------ -------
------- (1) Includes amortization of deferred financing fees. (2)
For the nine months ended June 30, 2009, a non-cash goodwill
impairment charge of $37,519 was recorded related to our branded
and natural food markets reporting units. DATASOURCE: Nutraceutical
International Corporation CONTACT: Cory McQueen, Vice President and
Chief Financial Officer of Nutraceutical International Corporation,
+1-435-655-6106
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