PARK CITY, Utah, July 31 UT-NutraceuticalInt.
PARK CITY, Utah, July 31 /PRNewswire-FirstCall/ -- Nutraceutical
International Corporation (Nasdaq: NUTR) today reported results for the fiscal
2008 third quarter ended June 30, 2008. Net sales for the fiscal 2008 third
quarter were $40.5 million compared to $38.7 million for the same quarter of
fiscal 2007. For the third quarter of fiscal 2008, net income was $2.9
million, or $0.26 diluted earnings per share, compared to net income of $2.9
million, or $0.25 diluted earnings per share, for the same quarter of fiscal
2007.
Net sales for the nine months ended June 30, 2008 were $126.0 million
compared to $116.6 million for the same period in fiscal 2007. For the nine
months ended June 30, 2008, net income was $10.4 million, or $0.93 diluted
earnings per share, compared to net income of $10.4 million, or $0.92 diluted
earnings per share, for the same period of fiscal 2007.
Operating cash flow for the nine months ended June 30, 2008 was $14.4
million compared to $15.6 million for the same period of fiscal 2007. This
operating cash flow, combined with net borrowings of $10.0 million, was used
to invest $14.1 million in property and equipment, $5.9 million in
acquisitions of branded natural product businesses and $4.2 million in
repurchases of common stock.
Bill Gay, chairman and chief executive officer, commented, "The growth in
net sales for our fiscal 2008 third quarter came from the integration of our
fiscal 2007 and 2008 acquisitions into our brands. Operational synergies from
manufacturing have enabled us to increase gross profit margins and provide
continued strong operating cash flows. Raw material costs have increased but
our focus on sourcing has allowed us to mitigate the impact to date. We
continue to invest in marketing and sales in an effort to improve our
competitive position while consolidating these acquisitions into the company.
It is important for us to remain promotionally competitive with the health
food stores we serve during this economically challenging period. We intend
to continue to focus on addressing labor and other cost pressures.
We also continue to explore potentially non-dilutive and affordable
acquisitions that will help us achieve our long-term growth objectives for
sales and profitability. Our business model and the industry we serve
demonstrates how a long-term, value driven company like ours is able to
produce solid results during times when consumers seem to be watching their
pocket books. We appreciate and thank everyone that supports us in our
efforts to improve our business."
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(R), VegLife(R), KAL(R), Nature's Life(R), Sunny
Green(R), Action Labs(R), Natural Balance(R), NaturalMax(R), bioAllers(R),
Herbs for Kids(TM), Natra-Bio(R), NaturalCare(R), Zand(R), Health from the
Sun(R), Life-flo(R), Larenim(R), Living Flower Essences(R), Pioneer(R),
Thompson(R), Natural Sport(R), Supplement Training Systems(R), Premier One(R),
Montana Big Sky(TM), ActiPet(R), FunFresh Foods(TM), Dowd & Rogers(TM),
CompliMed(R), AllVia(TM), Oakmont Labs(R), Healthway(R), Body Gold(R), Sayge
BioSciences(TM), Monarch Nutritional Laboratories(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), Granola's(TM) and Pilgrim's Natureway(TM).
We manufacture and/or distribute one of the broadest branded product lines
in the industry with over 3,900 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 Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These statements relate to our future plans, objectives,
expectations, intentions and financial performance and the assumptions that
underlie these statements. 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,
government regulations, product liability claims and litigation, insurance
coverage issues, a decrease in or slowing of the growth rate of the vitamin,
mineral and supplement market, the success of the healthy foods channel,
consumer perception of safety and quality of our products and similar
products, competition, intellectual property rights of other parties, the loss
of key personnel, disruptions from acquisitions, issues with obtaining raw
materials of adequate quality or quantity, problems with information
management systems, manufacturing efficiencies and operations, litigation
generally, the volatility of the stock market generally and of our stock
specifically, a general lack of adequate industry analyst coverage, and 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).
(C) 2008 Nutraceutical Corporation. All rights reserved.
NUTRACEUTICAL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited; dollars in thousands)
June 30, September 30,
20082007
Assets
Current assets, net$54,887 $51,534
Property, plant and equipment, net 49,97539,506
Goodwill40,98038,978
Other non-current assets, net 16,08116,384
$161,923 $146,402
Liabilities and Stockholders' Equity
Current liabilities$18,123 $20,275
Long-term liabilities 30,92320,208
Stockholders' equity 112,877 105,919
$161,923 $146,402
NUTRACEUTICAL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; dollars in thousands, except per share data)
Three monthsNine months
ended June 30, ended June 30,
2008200720082007
Net sales $40,454 $38,694$125,986$116,646
Cost of sales 18,489 17,889 57,192 53,193
Gross profit21,965 20,805 68,794 63,453
Operating expenses
Selling, general and
administrative 16,933 15,730 50,539 45,688
Amortization of
intangible assets 185 121 522 230
Income from operations 4,847 4,954 17,733 17,535
Interest and other
(income)/expense, net223 352 1,008 814
Income before provision
for income taxes 4,624 4,602 16,725 16,721
Provision for income taxes 1,771 1,749 6,309 6,354
Net income $2,853 $2,853 $10,416 $10,367
Net income per common share
Basic$0.26 $0.26 $0.94 $0.94
Diluted 0.260.250.930.92
Weighted average common
shares outstanding
Basic 10,964,696 11,047,027 11,043,026 11,027,237
Diluted 11,097,500 11,251,405 11,181,609 11,234,775
NUTRACEUTICAL INTERNATIONAL CORPORATION
EBITDA SCHEDULE
(unaudited; dollars in thousands)
Three months Nine months
ended June 30,ended June 30,
20082007 2008 2007
Net income$2,853 $2,853 $10,416 $10,367
Provision for income taxes 1,771 1,7496,3096,354
Interest and other (income)/expense,
net (1) 223 3521,008 814
Depreciation and amortization 1,514 1,2364,2563,501
EBITDA$6,361 $6,190 $21,989 $21,036
(1) Includes amortization of deferred financing fees.
SOURCE Nutraceutical International Corporation
