PARK CITY, Utah, April 30, 2015 /PRNewswire/ -- Nutraceutical
International Corporation (NASDAQ: NUTR) today reported results for
the fiscal 2015 second quarter ended March
31, 2015. Net sales for the fiscal 2015 second quarter
were $55.4 million compared to
$54.9 million for the same quarter of
fiscal 2014. For the second quarter of fiscal 2015, net
income was $4.1 million, or
$0.43 diluted earnings per share,
compared to net income of $4.3
million, or $0.44 diluted
earnings per share, for the same quarter of fiscal 2014.
Net sales for the six months ended March
31, 2015 were $108.4 million
compared to $106.4 million for the
same period of fiscal 2014. For the six months ended
March 31, 2015, net income was
$7.4 million, or $0.77 diluted earnings per share, compared to net
income of $8.5 million, or
$0.86 diluted earnings per share, for
the same period of fiscal 2014.
Operating cash flow for the six months ended March 31, 2015 was $11.2
million compared to $10.8
million for the same period of fiscal 2014. The
operating cash flow for the six months ended March 31, 2015, combined with existing cash, was
primarily used to invest $4.2 million
in purchases of property, plant and equipment, $2.4 million in purchases of common stock for
treasury and to repay net borrowings of $5.0
million on the Company's revolving credit facility.
Bill Gay, chairman and chief
executive officer, commented, "Our overall results for the second
quarter of 2015 were an improvement over our first quarter results.
Fiscal 2015 second quarter net sales growth of 1.0% was primarily
the result of fiscal 2014 acquisitions and a slight increase in
domestic sales. Unfortunately, international sales were
impacted negatively by a stronger U.S. dollar and decreased orders
from international customers. Out-of-stocks continue to be a key
priority for management. We continue to focus on integrating the
fiscal 2014 acquisitions and believe these efforts, along with
other operational enhancements we have made, will lead to further
improvements in our business by the latter part of calendar
2015."
Mr. Gay stated, "Operating cash flow and Adjusted EBITDA
remained strong for the second quarter. This provided the
financial resources for us to continue to re-purchase stock and pay
down debt. The decrease in fiscal 2015 second quarter net
income was primarily a result of increased depreciation and
amortization expense. Throughout this fiscal year, we have invested
considerable time and financial resources conducting due diligence
on potential acquisitions. The larger opportunities pursued
so far this year did not provide the synergies we require.
Fortunately, the market continues to provide additional potential
acquisitions to evaluate. In reviewing these, we intend to
remain selective. Acquisitions are a primary long-term component of
our growth and we do not anticipate this changing."
Mr. Gay continued, "We compete in the fragmented healthy foods
channel. This channel is comprised of over 17,000 retail
stores, many operating independently. We offer over 8,000
SKUs to our customers – and no product or customer represents over
ten percent of our sales. We rely on numerous long-term
customer relationships that grow with us as we add brands and new
products. Our business strategy and operational model is
complex, which is both a challenge and opportunity. Focusing
on this opportunity has served our stakeholders for many
years. Management appreciates everyone that enables us to
focus on growing our business over the long term."
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 provide 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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NUTRACEUTICAL
INTERNATIONAL CORPORATION
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CONDENSED
CONSOLIDATED BALANCE SHEETS
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(unaudited;
dollars in thousands)
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March 31,
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September 30,
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2015
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2014
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Assets
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Current assets,
net
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$ 82,965
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$
83,850
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Property, plant and
equipment, net
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|
78,673
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79,244
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Goodwill
|
|
23,622
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|
23,622
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Other non-current assets,
net
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26,953
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28,062
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|
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$
212,213
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$
214,778
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Liabilities and
Stockholders' Equity
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Current
liabilities
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$ 19,105
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$
21,709
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Long-term
liabilities
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38,162
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43,456
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Stockholders'
equity
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154,946
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|
149,613
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$
212,213
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$
214,778
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NUTRACEUTICAL
INTERNATIONAL CORPORATION
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
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(unaudited;
dollars in thousands, except per share data)
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Three months ended
March 31,
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Six months ended
March 31,
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2015
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2014
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2015
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2014
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Net sales
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$ 55,404
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$ 54,859
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$ 108,448
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$ 106,409
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Cost of
sales
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28,149
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27,699
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|
55,338
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|
53,187
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Gross
profit
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|
27,255
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|
27,160
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|
53,110
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53,222
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Operating
expenses
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Selling, general and
administrative
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19,789
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19,282
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39,343
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37,863
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Amortization of
intangible assets
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728
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652
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1,460
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1,236
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Income from
operations
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6,738
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|
7,226
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|
12,307
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14,123
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Interest and other
expense, net
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273
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|
350
|
|
570
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|
668
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Income before
provision for income taxes
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6,465
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6,876
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11,737
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13,455
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Provision for income
taxes
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2,369
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2,552
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4,290
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4,996
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Net income
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$ 4,096
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$ 4,324
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$ 7,447
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$ 8,459
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Net income per common
share
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Basic
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$ 0.43
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$ 0.44
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$ 0.77
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$ 0.86
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Diluted
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0.43
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0.44
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0.77
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0.86
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Weighted average
common shares outstanding
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Basic
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9,622,051
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9,843,590
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9,637,753
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9,840,578
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Diluted
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9,626,925
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9,852,611
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9,643,637
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9,850,102
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NUTRACEUTICAL
INTERNATIONAL CORPORATION
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ADJUSTED EBITDA
SCHEDULE
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(unaudited;
dollars in thousands)
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Three months ended
March 31,
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Six months ended
March 31,
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2015
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|
2014
|
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2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 4,096
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$ 4,324
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$ 7,447
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$ 8,459
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Provision for income
taxes
|
2,369
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|
2,552
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|
4,290
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|
4,996
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Interest and other
expense, net (1)
|
273
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|
350
|
|
570
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|
668
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Depreciation and
amortization
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3,268
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|
2,777
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6,507
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5,415
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Adjusted
EBITDA
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$ 10,006
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$ 10,003
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$ 18,814
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$ 19,538
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(1)
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Includes amortization
of deferred financing fees.
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Non-GAAP Financial
Measures
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Adjusted EBITDA (a non-GAAP
measure) is defined in our performance measures as earnings before
net interest and other expense, taxes, depreciation, amortization
and goodwill and intangible asset impairments. We believe
that Adjusted EBITDA provides useful additional information to
analysts, creditors, investment bankers and management regarding
operating performance and debt covenant compliance. Adjusted
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, Adjusted 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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To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nutraceutical-reports-fiscal-2015-q2-results-300074738.html
SOURCE Nutraceutical International Corporation