PARK CITY, Utah, Nov. 19, 2015 /PRNewswire/ -- Nutraceutical
International Corporation (NASDAQ: NUTR) today reported
results for the fiscal 2015 fourth quarter ended September 30, 2015. Net sales for the
fiscal 2015 fourth quarter were $53.6
million, compared to $52.4
million for the same quarter of fiscal 2014. For the
fourth quarter of fiscal 2015, net income was $3.4 million, or $0.35 diluted earnings per share, compared to net
income of $3.4 million, or
$0.35 diluted earnings per share, for
the same quarter of fiscal 2014.
Net sales for the fiscal year ended September 30, 2015 were $216.5 million, compared to $214.5 million for fiscal 2014. For the
fiscal year ended September 30, 2015,
net income was $15.3 million, or
$1.59 diluted earnings per share,
compared to net income of $15.9
million, or $1.62 diluted
earnings per share, for fiscal 2014.
In September 2015, the Company
decided to implement an expanded brand consolidation plan in an
effort to simplify its brand offerings, which should make marketing
and sales activities more efficient and facilitate customer
ordering. As part of this plan, the Company determined, as of
September 30, 2015, its
indefinite-lived tradenames should be assigned finite useful
lives. In connection with this change and the Company's
annual impairment test, non-cash intangible asset impairment
charges were recorded totaling $1.8
million ($1.1 million, net of
tax, or $0.12 per diluted share),
which are included in net income for the fourth quarter and fiscal
year ended September 30, 2015.
Net income for the fourth quarter and fiscal year ended
September 30, 2014 also
included a non-cash intangible asset intangible asset impairment
charge related to a tradename of $0.3
million ($0.2 million, net of
tax, or $0.02 per diluted
share).
Operating cash flow for the fiscal year ended September 30, 2015 was $25.0 million, compared to $20.0 million for fiscal 2014. The
operating cash flow for the fiscal year ended September 30, 2015, combined with existing cash,
was primarily used to repay net borrowings of $11.5 million on the Company's revolving credit
facility and to invest $8.6 million
in purchases of property, plant and equipment, $5.3 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 fiscal 2015 fourth quarter
showed solid improvements in net sales and Adjusted EBITDA.
Acquisitions completed in the last two fiscal years
contributed to the net sales growth for fiscal 2015.
International net sales rebounded in the fourth quarter, although
for the full fiscal year they still were $1.8 million less than fiscal 2014.
Operational synergies, cost reductions and automation had a
positive impact in the fourth quarter."
Mr. Gay stated, "Net income for the fourth quarter and fiscal
year were slightly down primarily due to the $1.8 million non-cash expense relating to our
expanded brand consolidation plan. The consolidation of
brands should provide for marketing and operational
efficiencies. Operating cash flows in fiscal 2015 enabled
stock repurchases, debt reductions and investments in property and
acquisitions for future growth."
Mr. Gay continued, "In October
2015, we completed the acquisition of Dynamic Health, a
liquid manufacturing business in Brooklyn, New York. This acquisition
expands our product offering of organic and nutritional juice
concentrates. Dynamic Health's 100 plus branded products are
primarily sold through health food distributors and internet
accounts. Dynamic Health also sells private label products to
domestic and international customers. We are targeting
integration of the Dynamic Health business into our Tulsa, Oklahoma manufacturing facility over
the next 12-15 months. Dynamic Health's net sales, which we
anticipate will be over $15 million
annually, should positively contribute to Adjusted EBITDA during
fiscal 2016."
According to Mr. Gay, "Management is committed to finding
additional operational efficiencies in all areas of the company
during fiscal 2016, including raw materials, labor and overhead.
Management would like to thank our employees and stakeholders for
their ongoing support of our long-term business strategy."
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 approximately 7,500 SKUs,
including approximately 750 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 including adverse determinations by regulators; (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, including system interruptions and
security/cybersecurity breaches; (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)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2015
|
|
2014
|
Assets
|
|
|
|
|
Current assets,
net
|
$
86,215
|
|
$
83,850
|
Property, plant and
equipment, net
|
77,645
|
|
79,244
|
Goodwill
|
24,384
|
|
23,622
|
Other non-current assets,
net
|
24,205
|
|
28,062
|
|
|
|
$
212,449
|
|
$
214,778
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities
|
$
20,528
|
|
$
21,709
|
Long-term
liabilities
|
31,674
|
|
43,456
|
Stockholders'
equity
|
160,247
|
|
149,613
|
|
|
|
$
212,449
|
|
$
214,778
|
NUTRACEUTICAL
INTERNATIONAL CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited;
dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Twelve months
ended September 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net sales
|
$ 53,649
|
|
$ 52,440
|
|
$ 216,479
|
|
$ 214,474
|
Cost of
sales
|
26,962
|
|
26,509
|
|
110,255
|
|
108,169
|
|
|
Gross
profit
|
26,687
|
|
25,931
|
|
106,224
|
|
106,305
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
18,852
|
|
19,249
|
|
77,256
|
|
76,874
|
|
|
Amortization of
intangible assets
|
680
|
|
727
|
|
2,869
|
|
2,667
|
|
|
Impairment of
intangible assets
|
1,810
|
|
267
|
|
1,810
|
|
267
|
Income from
operations
|
5,345
|
|
5,688
|
|
24,289
|
|
26,497
|
Interest and other
expense, net
|
224
|
|
397
|
|
1,051
|
|
1,421
|
Income before
provision for income taxes
|
5,121
|
|
5,291
|
|
23,238
|
|
25,076
|
Provision for income
taxes
|
1,747
|
|
1,858
|
|
7,967
|
|
9,187
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 3,374
|
|
$ 3,433
|
|
$ 15,271
|
|
$ 15,889
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.35
|
|
$ 0.35
|
|
$ 1.59
|
|
$ 1.62
|
|
|
Diluted
|
0.35
|
|
0.35
|
|
1.59
|
|
1.62
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
9,519,598
|
|
9,690,673
|
|
9,588,838
|
|
9,792,276
|
|
|
Diluted
|
9,520,425
|
|
9,698,438
|
|
9,592,734
|
|
9,801,080
|
NUTRACEUTICAL
INTERNATIONAL CORPORATION
|
ADJUSTED EBITDA
SCHEDULE
|
(unaudited;
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Twelve months
ended September 30,
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 3,374
|
|
$ 3,433
|
|
$ 15,271
|
|
$ 15,889
|
Provision for income
taxes
|
1,747
|
|
1,858
|
|
7,967
|
|
9,187
|
Interest and other
expense, net (1)
|
224
|
|
397
|
|
1,051
|
|
1,421
|
Depreciation and
amortization
|
3,063
|
|
3,111
|
|
12,765
|
|
11,468
|
Impairment of
intangible assets (2)
|
1,810
|
|
267
|
|
1,810
|
|
267
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 10,218
|
|
$ 9,066
|
|
$ 38,864
|
|
$ 38,232
|
|
|
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(1)
|
Includes amortization
of deferred financing fees.
|
|
|
|
|
|
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|
(2)
|
Non-cash intangible
asset impairment charges of $1,810 related to certain tradenames
were recorded for the three months and twelve months ended
September 30, 2015. A non-cash
intangible asset impairment charge of $267 related to a tradename
was recorded for the three months and twelve months ended September
30, 2014.
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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-year-end-results-300181649.html
SOURCE Nutraceutical International Corporation