PARK CITY, Utah, April 28, 2016 /PRNewswire/ -- Nutraceutical
International Corporation (NASDAQ: NUTR) today reported
results for the fiscal 2016 second quarter ended March 31, 2016. Net sales for the fiscal
2016 second quarter were $59.5
million, compared to $55.4
million for the same quarter of fiscal 2015. For the
second quarter of fiscal 2016, net income was $4.6 million, or $0.49 diluted earnings per share, compared to net
income of $4.1 million, or
$0.43 diluted earnings per share, for
the same quarter of fiscal 2015.
Net sales for the six months ended March
31, 2016 were $115.5 million
compared to $108.4 million for the
same period of fiscal 2015. For the six months ended
March 31, 2016, net income was
$8.9 million, or $0.94 diluted earnings per share, compared to net
income of $7.4 million, or
$0.77 diluted earnings per share, for
the same period of fiscal 2015.
Operating cash flow for the six months ended March 31, 2016 was $17.3
million, compared to $11.2
million for the same period of fiscal 2015. The
operating cash flow for the six months ended March 31, 2016, combined with net borrowings of
$16.0 million, was primarily used to
invest $26.2 million in acquisitions
of natural product businesses, $4.0
million in purchases of property, plant and equipment and
$3.6 million in purchases of common
stock for treasury.
Bill Gay, chairman and chief
executive officer, commented, "Fiscal 2016 second quarter net sales
grew by 7.4%, Adjusted EBITDA increased by $1.1M, or 10.8%, and we added $0.06 per share to diluted EPS. Management
is pleased with the overall growth and direction of our business
and with the gains generated by recent acquisitions. We are
hopeful the softness in certain areas of our international business
will improve later in the year. Management now believes that
consolidation synergies from the October
2015 Dynamic Health acquisition will not become fully
realized until later in calendar 2017. Our February 2016 acquisition of Aubrey Organics in
Tampa, Florida will enable us to
consolidate certain branded offices and manufacturing operations
for our personal care business. Both of these new businesses expand
our current branded portfolio of products with many unique
offerings for our health and natural food store customers. We
are excited about the long-term growth potential these two
businesses provide to our company."
Mr. Gay continued, "Our operating cash flow and banking
relationships provide a strong foundation for future acquisitions,
investments in property and equipment as well as stock
repurchases. The competitive and regulatory environment of
our industry requires us to continually invest in updating and
improving our manufacturing equipment and facilities. Management
remains focused on reducing costs and improving margins in all
areas of our business through process and technology innovation as
well as facility integration and consolidation. Additionally,
through the process of reviewing and completing acquisitions, we
are continually evaluating opportunities to leverage lower-cost
markets to operate parts of our business and further reduce
operating costs. We thank our customers, employees, and
stockholders for the 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®, Dynamic Health™, 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)
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
September
30,
|
|
2016
|
|
2015
|
Assets
|
|
|
|
Current assets,
net
|
$ 89,814
|
|
$
86,215
|
Property, plant and
equipment, net
|
83,460
|
|
77,645
|
Goodwill
|
30,925
|
|
24,384
|
Other non-current assets,
net
|
30,316
|
|
24,205
|
|
$ 234,515
|
|
$
212,449
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
Current
liabilities
|
$ 20,712
|
|
$
20,528
|
Long-term
liabilities
|
47,684
|
|
31,674
|
Stockholders'
equity
|
166,119
|
|
160,247
|
|
$ 234,515
|
|
$
212,449
|
NUTRACEUTICAL
INTERNATIONAL CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(unaudited;
dollars in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Six months ended
March 31,
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
Net sales
|
$ 59,492
|
|
$ 55,404
|
|
$ 115,451
|
|
$ 108,448
|
|
Cost of
sales
|
29,163
|
|
28,149
|
|
57,014
|
|
55,338
|
|
|
|
Gross
profit
|
30,329
|
|
27,255
|
|
58,437
|
|
53,110
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative
|
21,779
|
|
19,789
|
|
42,121
|
|
39,343
|
|
|
|
Amortization of
intangible assets
|
999
|
|
728
|
|
1,980
|
|
1,460
|
|
Income from
operations
|
7,551
|
|
6,738
|
|
14,336
|
|
12,307
|
|
Interest and other
expense, net
|
322
|
|
273
|
|
596
|
|
570
|
|
Income before
provision for income taxes
|
7,229
|
|
6,465
|
|
13,740
|
|
11,737
|
|
Provision for income
taxes
|
2,611
|
|
2,369
|
|
4,881
|
|
4,290
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 4,618
|
|
$ 4,096
|
|
$ 8,859
|
|
$ 7,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per common
share
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$ 0.49
|
|
$ 0.43
|
|
$ 0.94
|
|
$ 0.77
|
|
|
|
Diluted
|
0.49
|
|
0.43
|
|
0.94
|
|
0.77
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
9,401,972
|
|
9,622,051
|
|
9,430,878
|
|
9,637,753
|
|
|
|
Diluted
|
9,401,972
|
|
9,626,925
|
|
9,430,878
|
|
9,643,637
|
|
NUTRACEUTICAL
INTERNATIONAL CORPORATION
|
ADJUSTED EBITDA
SCHEDULE
|
(unaudited;
dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
March 31,
|
|
Six months ended
March 31,
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
$ 4,618
|
|
$ 4,096
|
|
$ 8,859
|
|
$ 7,447
|
|
Provision for income
taxes
|
2,611
|
|
2,369
|
|
4,881
|
|
4,290
|
|
Interest and other
expense, net (1)
|
322
|
|
273
|
|
596
|
|
570
|
|
Depreciation and
amortization
|
3,538
|
|
3,268
|
|
7,020
|
|
6,507
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$ 11,089
|
|
$ 10,006
|
|
$ 21,356
|
|
$ 18,814
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Includes
amortization of deferred financing fees.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Financial
Measures
|
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.
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/nutraceutical-reports-fiscal-2016-q2-results-300258978.html
SOURCE Nutraceutical International Corporation