PARK CITY, Utah, Jan. 28 /PRNewswire-FirstCall/ -- Nutraceutical
International Corporation (NASDAQ:NUTR) today reported results for
the fiscal 2010 first quarter ended December 31, 2009. Net sales
for the fiscal 2010 first quarter were $44.8 million compared to
$39.6 million for the same quarter of fiscal 2009. For the first
quarter of fiscal 2010, net income was $3.9 million, or $0.37
diluted earnings per share, compared to net income of $3.1 million,
or $0.28 diluted earnings per share, for the same quarter of fiscal
2009. Operating cash flow for the fiscal 2010 first quarter ended
December 31, 2009 was $6.0 million compared to $3.1 million for the
same period of fiscal 2009. This operating cash flow, combined with
net borrowings of $12.0 million, was primarily used to invest $5.2
million in purchases of property and equipment, $11.6 million in
the acquisitions of branded natural product businesses and $2.2
million in repurchases of common stock. Bill Gay, chairman and
chief executive officer, commented, "In spite of a lethargic
economic environment, we started off fiscal 2010 with a solid first
quarter. Net sales increased significantly because of acquisitions
completed over the last six months. Additionally, both domestic and
international sales of our branded products grew year over year.
EBITDA, cash flow and net income expanded in the first quarter as
stronger sales allowed us to leverage our general and
administrative cost structure." Mr. Gay continued, "Our recent
acquisitions have enhanced our offerings of liquid and powdered
nutritional supplements and health and beauty products. We believe
our expanded product offerings provide regional opportunities for
our marketing and sales organization to gain additional shelf space
and better serve our customers. Operationally, we will continue to
cut controllable expenses and further integrate our acquisitions.
We continue to believe that our core health and natural food store
customers are regaining confidence in their businesses and we
remain positive about our prospects for 2010." 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®, VegLife®, KAL®,
Nature's Life®, LifeTime®, Sunny Green®, Action Labs®, Natural
Balance®, NaturalMax®, bioAllers®, Herbs for Kids(TM), Natra-Bio®,
NaturalCare®, Zand®, Health from the Sun®, Life-flo®, Larenim®,
TheraNeem®, TheraVeda®, 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®, 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. 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) slow or negative growth in the nutritional
supplement industry or the healthy foods channel, (ii) adverse
publicity or negative consumer perception regarding nutritional
supplements, (iii) unavailability of desirable acquisitions or
inability to complete them, (iv) changes in or new government
regulations or increased enforcement of the same, (v) litigation
and claims, including product liability, intellectual property and
other types, (vi) insurance coverage issues, (vii) increased
competition, (viii) increased costs, including from increased
energy prices, (ix) the loss of key personnel or the inability to
manage our operations efficiently, (x) disruptions from
acquisitions including the loss of customers, (xi) issues with
obtaining raw materials of adequate quality or quantity, or
increases in the cost, (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) 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 (http://www.sec.gov/). © 2010
Nutraceutical Corporation. All rights reserved. NUTRACEUTICAL
INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited; dollars in thousands) December 31, September 30,
------------ ------------- 2009 2009 Assets Current assets, net
$54,197 $50,582 Property, plant and equipment, net 59,950 55,584
Goodwill 4,738 1,177 Other non-current assets, net 30,744 26,617
------ ------ $149,629 $133,960 -------- -------- Liabilities and
Stockholders' Equity Current liabilities $19,545 $18,138 Long-term
liabilities 32,367 20,184 Stockholders' equity 97,717 95,638 ------
------ $149,629 $133,960 -------- -------- NUTRACEUTICAL
INTERNATIONAL CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS (unaudited; dollars in thousands, except per share data)
Three months ended December 31, ------------------ 2009 2008 Net
sales $44,839 $39,629 Cost of sales 21,365 18,197 ------ ------
Gross profit 23,474 21,432 Operating expenses Selling, general and
administrative 16,749 15,773 Amortization of intangible assets 298
159 --- --- Income from operations 6,427 5,500 Interest and other
(income) expense, net 109 510 --- --- Income before provision for
income taxes 6,318 4,990 Provision for income taxes 2,374 1,878
----- ----- Net income $3,944 $3,112 ------ ------ Net income per
common share Basic $0.38 $0.29 Diluted 0.37 0.28 Weighted average
common shares outstanding Basic 10,487,640 10,849,221 Diluted
10,569,411 10,931,812 NUTRACEUTICAL INTERNATIONAL CORPORATION
EBITDA SCHEDULE (unaudited; dollars in thousands) Three months
ended December 31, ------------------------------- 2009 2008 Net
income $3,944 $3,112 Provision for income taxes 2,374 1,878
Interest and other (income) expense, net(1) 109 510 Depreciation
and amortization 1,760 1,634 ----- ----- EBITDA $8,187 $7,134
------ ------ (1) Includes amortization of deferred financing fees.
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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