PARK CITY, Utah, July 30, 2015 /PRNewswire/ -- Nutraceutical
International Corporation (NASDAQ: NUTR) today reported
results for the fiscal 2015 third quarter ended June 30, 2015. Net sales for the fiscal
2015 third quarter were $54.4 million
compared to $55.6 million for the
same quarter of fiscal 2014. For the third quarter of fiscal
2015, net income was $4.5 million, or
$0.47 diluted earnings per share,
compared to net income of $4.0
million, or $0.41 diluted
earnings per share, for the same quarter of fiscal 2014.
Net sales for the nine months ended June
30, 2015 were $162.8 million
compared to $162.0 million for the
same period of fiscal 2014. For the nine months ended
June 30, 2015, net income was
$11.9 million, or $1.24 diluted earnings per share, compared to net
income of $12.5 million, or
$1.27 diluted earnings per share, for
the same period of fiscal 2014.
Operating cash flow for the nine months ended June 30, 2015 was $21.2
million compared to $16.1
million for the same period of fiscal 2014. The
operating cash flow for the nine months ended June 30, 2015, combined with existing cash, was
primarily used to repay net borrowings of $11.0 million on the Company's revolving credit
facility and to invest $6.5 million
in purchases of property, plant and equipment, $3.6 million in purchases of common stock for
treasury and $1.3 million in
acquisitions of natural product businesses.
Bill Gay, chairman and chief
executive officer, commented, "Our Adjusted EBITDA, net income and
operating cash flow for the third quarter of fiscal 2015
strengthened. The decrease in fiscal 2015 third quarter net sales
of 2.2% was primarily related to international customers and, to a
lesser extent, private label accounts. International sales
continued to be impacted negatively by the stronger U.S. dollar and
fewer orders from certain international customers. Our focus on
only purchasing the highest quality raw materials means that
sourcing and related out-of-stocks continued to be a challenge for
our manufacturing operations. Management believes that ongoing
synergies from acquisitions and operational changes that have been
implemented will enhance our overall results by the end of this
calendar year."
Mr. Gay stated, "Our operating cash flow provided the financial
resources required to re-purchase stock, make capital investments,
pay down debt and acquire competitive businesses. Management
seeks to acquire niche companies that fill gaps in our existing
product coverage. Acquisitions remain a key component to our
long-term growth."
Mr. Gay continued, "Larger natural food market chains continue
their roll-out in most major US markets. This is requiring
the smaller and medium sized health food stores to become more
competitive in order to prosper or even survive. While we
continue our historical support of these independent health food
stores, some are not responding quickly enough and are struggling
and facing the choice of closing or selling locations. This is
resulting in a pronounced shift of customers to larger natural food
stores. Fortunately, the growth of these larger chains seems
to be offsetting corresponding declines in smaller stores. We
believe that the size and breadth of our brand and product offering
should enable us to continue to be a primary supplier for larger
stores and that we are positioned to capitalize on this changing
marketplace. Management would like to express our
appreciation and thanks to our employees and stakeholders for their
ongoing support of our company's long-term growth goals."
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™, Cornucopia Community Market™ and
Granola's™. We also own health food stores, which
operate under various trade names, including Fresh Vitamins™
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).
NUTRACEUTICAL
INTERNATIONAL CORPORATION
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(unaudited;
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
September
30,
|
|
|
|
2015
|
|
2014
|
Assets
|
|
|
|
|
Current assets,
net
|
$ 82,425
|
|
$
83,850
|
Property, plant and
equipment, net
|
78,350
|
|
79,244
|
Goodwill
|
24,384
|
|
23,622
|
Other non-current assets,
net
|
25,746
|
|
28,062
|
|
|
|
$ 210,905
|
|
$
214,778
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities
|
$ 20,070
|
|
$
21,709
|
Long-term
liabilities
|
32,171
|
|
43,456
|
Stockholders'
equity
|
158,664
|
|
149,613
|
|
|
|
$ 210,905
|
|
$
214,778
|
NUTRACEUTICAL
INTERNATIONAL CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited;
dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Nine months ended
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net sales
|
$ 54,382
|
|
$ 55,625
|
|
$ 162,830
|
|
$ 162,034
|
Cost of
sales
|
27,955
|
|
28,473
|
|
83,293
|
|
81,660
|
|
|
Gross
profit
|
26,427
|
|
27,152
|
|
79,537
|
|
80,374
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
19,061
|
|
19,762
|
|
58,404
|
|
57,625
|
|
|
Amortization of
intangible assets
|
729
|
|
704
|
|
2,189
|
|
1,940
|
Income from
operations
|
6,637
|
|
6,686
|
|
18,944
|
|
20,809
|
Interest and other
expense, net
|
257
|
|
356
|
|
827
|
|
1,024
|
Income before
provision for income taxes
|
6,380
|
|
6,330
|
|
18,117
|
|
19,785
|
Provision for income
taxes
|
1,930
|
|
2,333
|
|
6,220
|
|
7,329
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 4,450
|
|
$ 3,997
|
|
$ 11,897
|
|
$ 12,456
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.47
|
|
$ 0.41
|
|
$ 1.24
|
|
$ 1.27
|
|
|
Diluted
|
0.47
|
|
0.41
|
|
1.24
|
|
1.27
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
9,561,008
|
|
9,798,393
|
|
9,612,171
|
|
9,826,516
|
|
|
Diluted
|
9,563,999
|
|
9,806,793
|
|
9,617,091
|
|
9,835,666
|
NUTRACEUTICAL
INTERNATIONAL CORPORATION
|
ADJUSTED EBITDA
SCHEDULE
|
(unaudited;
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Nine months ended
June 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 4,450
|
|
$ 3,997
|
|
$ 11,897
|
|
$ 12,456
|
Provision for income
taxes
|
1,930
|
|
2,333
|
|
6,220
|
|
7,329
|
Interest and other
expense, net (1)
|
257
|
|
356
|
|
827
|
|
1,024
|
Depreciation and
amortization
|
3,195
|
|
2,942
|
|
9,702
|
|
8,357
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 9,832
|
|
$ 9,628
|
|
$ 28,646
|
|
$ 29,166
|
|
|
|
|
|
|
|
|
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(1)
|
Includes amortization
of deferred financing fees.
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|
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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-q3-results-300120913.html
SOURCE Nutraceutical International Corporation