NUTR Nutraceutical International Corp. (MM)

PARK CITY, Utah, Jan. 29, 2015 /PRNewswire/ -- Nutraceutical International Corporation (NASDAQ:  NUTR) today reported results for the fiscal 2015 first quarter ended December 31, 2014.  Net sales for the fiscal 2015 first quarter were $53.0 million compared to $51.6 million for the same quarter of fiscal 2014.  For the first quarter of fiscal 2015, net income was $3.4 million, or $0.35 diluted earnings per share, compared to net income of $4.1 million, or $0.42 diluted earnings per share, for the same quarter of fiscal 2014.    

Operating cash flow for the fiscal 2015 first quarter was $3.0 million compared to $5.5 million for the same period of fiscal 2014.  The fiscal 2015 first quarter operating cash flow, combined with existing cash, was primarily used to invest $2.6 million in purchases of property, plant and equipment, $1.1 million in purchases of common stock for treasury and to repay net borrowings of $1.0 million on the Company's revolving credit facility.

Bill Gay, chairman and chief executive officer, commented, "Our fiscal 2015 first quarter net sales growth of 2.9% was primarily the result of fiscal 2014 acquisitions. Non-acquisition net sales during the quarter were down slightly as a result of increased product out-of-stocks and some health food store market softness.   Reducing out-of-stocks is a key priority. We continue to anticipate operational synergies and further net sales growth from the fiscal 2014 acquisitions in the later part of 2015." 

Mr. Gay stated, "Adjusted EBITDA remained strong, although it decreased from the comparable fiscal 2014 quarter as a result of lower gross margins and increases in marketing, selling and distribution expenses, which came principally from the integration of fiscal 2014 acquisitions.  The decrease in fiscal 2015 quarterly net income was primarily a result of increased amortization and depreciation expense relating to acquisitions and capital investments in equipment."

Mr. Gay continued, "Management is confident that its ongoing focus to integrate the fiscal 2014 acquisitions, decrease out-of-stocks, reduce inventory, consolidate labor, redirect promotional efforts, introduce strong new products and more effectively utilize its sales force will provide a foundation for desired cost synergies and sustainable growth over the coming years. Acquisitions are critically important to our growth and this will not change.  Integration of acquisitions has been a core competency over many years, although the fiscal 2014 acquisitions have been particularly challenging. Management appreciates the ongoing strategic long-term growth perspective our customers, employees and stockholders provide as we continue to enhance and grow 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 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®, 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™ and Cornucopia Community Market™.  We also own health food stores, which operate under various trade names including Fresh Vitamins™, Granola's™ and Peachtree Natural Foods®.

We manufacture and/or distribute one of the broadest branded product lines in the industry with over 8,000 SKUs, including approximately 800 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, (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, (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).

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SOURCE Nutraceutical International Corporation