PARK CITY, Utah, Nov. 20, 2012 /PRNewswire/ -- Nutraceutical
International Corporation (NASDAQ: NUTR) today reported
results for the fiscal 2012 fourth quarter ended September 30, 2012. Net sales for the
fiscal 2012 fourth quarter were $50.3
million compared to $45.8
million for the same quarter of fiscal 2011. For the
fourth quarter of fiscal 2012, net income was $4.2 million, or $0.42 diluted earnings per share, compared to net
income of $3.3 million, or
$0.32 diluted earnings per share, for
the same quarter of fiscal 2011.
Net sales for the fiscal year ended September 30, 2012 were $200.4 million compared to $188.1 million for the same period in fiscal
2011. For the fiscal year ended September 30, 2012, net income was $15.8 million, or $1.59 diluted earnings per share, compared to net
income of $15.7 million, or
$1.51 diluted earnings per share, for
the same period of fiscal 2011. Net income for the fiscal
year ended September 30, 2012
included a non-cash intangible asset impairment charge of
$0.6 million, net of tax, or
$0.06 per diluted share, related to
the consolidation of our Alan James Group™ brand into our
Body Gold® brand. The charge represented the entire
carrying amount of the Alan James Group™ brand. We
believe this brand consolidation provides increased operational
efficiencies and synergies and will enhance certain customer
relationships.
Operating cash flow for the fiscal year ended September 30, 2012 was $27.2 million compared to $26.3 million for the same period of fiscal
2011. The fiscal 2012 operating cash flow was primarily used
to invest $12.2 million in
acquisitions of natural product businesses, $10.0 million in purchases of property, plant and
equipment and $5.6 million in
repurchases of common stock.
Bill Gay, chairman and chief
executive officer, commented, "Our fiscal 2012 annual net sales
reached $200 million. Fiscal
2012 net sales growth of 6.5% resulted primarily from acquisitions
and increased branded domestic sales. Net sales from our
international markets continued to be soft throughout the year.
Adjusted EBITDA grew to over $35
million for the fiscal year. Substantial progress has
been made in maximizing utilization of our manufacturing facilities
but we believe that more synergies are possible in fiscal 2013. We
will continue to focus on raw material cost savings, labor expense
management and consolidating our marketing and sales
infrastructure."
Mr. Gay stated, "The Health and Natural Foods Markets that we
serve appear to remain strong with ongoing expansions at many chain
stores in spite of challenges in other retail segments and in
national and international markets. We will continue to make
acquisitions that complement our current brands and product
offerings. All in all, we believe it was a very good year
when one considers that we were confronted by increasingly
difficult economic headwinds. We remain optimistic but cautious as
we approach next year. Our investors, management and
employees are very much appreciated."
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®, bioAllers®, Herbs for Kids™,
NaturalCare®, Health from the Sun®, Life-flo®,
Organix South®, Pioneer® 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 the trade names
Fresh Vitamins™, Granola's™, Nature's
Discount™ and Warehouse Vitamins™.
We manufacture and/or distribute one of the broadest branded
product lines in the industry with over 7,000 SKUs, including
approximately 900 SKUs 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 or
inability to complete 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).
© 2012 Nutraceutical Corporation. All rights reserved.
NUTRACEUTICAL INTERNATIONAL
CORPORATION
|
CONDENSED CONSOLIDATED BALANCE
SHEETS
|
(unaudited; dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
|
|
September 30,
|
|
|
|
2012
|
|
2011
|
Assets
|
|
|
|
|
Current assets,
net
|
$
68,268
|
|
$
62,069
|
Property, plant and
equipment, net
|
75,454
|
|
72,094
|
Goodwill
|
14,752
|
|
8,853
|
Other non-current assets,
net
|
27,444
|
|
28,649
|
|
|
|
$
185,918
|
|
$
171,665
|
|
|
|
|
|
|
Liabilities and Stockholders'
Equity
|
|
|
|
Current
liabilities
|
$
20,670
|
|
$
19,737
|
Long-term
liabilities
|
34,192
|
|
32,253
|
Stockholders'
equity
|
131,056
|
|
119,675
|
|
|
|
$
185,918
|
|
$
171,665
|
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,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
Net
sales
|
$
50,261
|
|
$
45,825
|
|
$
200,367
|
|
$
188,070
|
Cost of
sales
|
25,282
|
|
23,415
|
|
100,413
|
|
92,877
|
|
|
Gross
profit
|
24,979
|
|
22,410
|
|
99,954
|
|
95,193
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Selling,
general and administrative
|
17,642
|
|
16,907
|
|
71,425
|
|
68,230
|
|
|
Amortization of intangible assets
|
569
|
|
441
|
|
2,007
|
|
1,654
|
|
|
Impairment
of intangible asset
|
-
|
|
-
|
|
850
|
|
-
|
Income
from operations
|
6,768
|
|
5,062
|
|
25,672
|
|
25,309
|
Interest
and other expense, net
|
373
|
|
338
|
|
1,497
|
|
1,140
|
Income
before provision for income taxes
|
6,395
|
|
4,724
|
|
24,175
|
|
24,169
|
Provision
for income taxes
|
2,221
|
|
1,450
|
|
8,408
|
|
8,451
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
4,174
|
|
$
3,274
|
|
$
15,767
|
|
$
15,718
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
per common share
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.42
|
|
$
0.32
|
|
$
1.59
|
|
$
1.52
|
|
|
Diluted
|
0.42
|
|
0.32
|
|
1.59
|
|
1.51
|
|
|
|
|
|
|
|
|
|
|
Weighted
average common shares outstanding
|
|
|
|
|
|
|
|
|
|
Basic
|
9,832,432
|
|
10,237,218
|
|
9,916,603
|
|
10,322,177
|
|
|
Diluted
|
9,856,305
|
|
10,289,748
|
|
9,933,997
|
|
10,385,583
|
NUTRACEUTICAL INTERNATIONAL
CORPORATION
|
ADJUSTED EBITDA SCHEDULE
|
(unaudited; dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
months ended September 30,
|
|
Twelve
months ended September 30,
|
|
|
|
2012
|
|
2011
|
|
2012
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
Net
income
|
$
4,174
|
|
$
3,274
|
|
$
15,767
|
|
$
15,718
|
Provision
for income taxes
|
2,221
|
|
1,450
|
|
8,408
|
|
8,451
|
Interest
and other expense, net (1)
|
373
|
|
338
|
|
1,497
|
|
1,140
|
Depreciation and amortization
|
2,366
|
|
2,054
|
|
8,777
|
|
8,052
|
Impairment
of intangible asset (2)
|
-
|
|
-
|
|
850
|
|
-
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
$
9,134
|
|
$
7,116
|
|
$
35,299
|
|
$
33,361
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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(1)
|
Includes
amortization of deferred financing fees.
|
|
|
|
|
|
|
|
|
|
|
(2)
|
A non-cash
intangible asset impairment charge of $850 related to the
consolidation of the Alan James Group™ brand into the
Body Gold® brand was recorded for the
twelve months ended September 30, 2012.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Non-GAAP Financial Measures
|
Adjusted EBITDA (a non-GAAP
measure) is defined in our debt covenants and performance measures
as earnings before net interest and other expense, taxes,
depreciation, amortization and intangible asset impairment.
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.
|
SOURCE Nutraceutical International Corporation